2008 WORLD 48290 RESOURCES THE WORLD BANK Roots of Resilience Growing the Wealth of the Poor WORLD RESOURCES INSTITUTE O W N E R S H I PIC A P A C I T YIC O N N E C T I O N WORL D RESOURCES 2008 WORLD RESOURCES REPORT PRINCIPAL PARTNERS Philip Angell, Editor-in-Chief United Nations Development Programme Gregory Mock, Senior Writer/Editor Veerle Vandeweerd Lauren Withey, Research Assistant Charles McNeill Emily Cooper, Research Analyst Gordon Johnson Stephanie Hanson, Managing Editor Jen Lesar, Managing Editor (to December 2007) United Nations Environment Programme Alex Acs, Research Analyst (to August 2007) Peter Gilruth Ethan Arpi, Intern Munyaradzi Chenje Dena Leibman, Contributing Editor Hyacinth Billings, Publications Director World Bank James Warren Evans Kirk Hamilton DATA, MAPS, AND GRAPHICS Amy Cassara, Senior Associate World Resources Institute Crystal Davis, Research Analyst Manish Bapna Stephen Adam, Research Analyst Daniel Tunstall Hugo Ahlenius, Programme Officer (UNEP/GRID-Arendal) ADJUNCT PARTNER CONTRIBUTING WRITERS UNEP/GRID-Arendal Polly Ghazi, Consultant Peter Prokosch Karen Holmes, Consultant Marianne Fernagut Alex Acs, WRI Hugo Ahlenius Emily Cooper, WRI Itchy Cvetanovski Joe Foti, WRI Frank Turyatunga Lauren Withey, WRI Svein Tveitdal Elspeth Halverson, UNDP Gabriela Tobler, UNDP Crispino Lobo, Watershed Organisation Trust PUBLICATION DESIGN Alston Taggart, Studio RED WORLD RESOURCES 2008 EDITORIAL BOARD Manish Bapna David Jhirad Jonathan Lash Robin Murphy Janet Ranganathan Daniel Tunstall Jake Werksman WORL D RESOURCES 2008 2008 WORLD RESOURCES Roots of Resilience Growing the Wealth of the Poor O W N E R S H I P I C A P A C I T YI C O N N E C T I O N United Nations Development Programme United Nations Environment Programme World Bank World Resources Institute W O R L D R E S O U R C E S I N S T I T U T E W A S H I N G T O N , D C W O R L D R E S O U R C E S 2 0 0 8 The World Resources Institute wishes to acknowledge five organizations whose support has been indispensable in bringing World Resources 2008 to publication: Netherlands Ministry Swedish International United States Agency of Foreign Affairs Development Cooperation Agency for International Development UNEP/GRID - Arendal Ministry of Foreign Affairs of Denmark World Resources 2008: Roots of Resilience--Growing the Wealth of the Poor Cite as: World Resources Institute (WRI) in collaboration with United Nations Development Programme, United Nations Environment Programme, and World Bank. 2008. World Resources 2008: Roots of Resilience--Growing the Wealth of the Poor. Washington, DC: WRI. Published by World Resources Institute 10 G Street, NE Suite 800 Washington, DC 20002 © 2008 World Resources Institute The World Resources Series is produced collaboratively by four organizations: the United Nations Development Programme, the United Nations Environment Programme, the World Bank, and the World Resources Institute. The views expressed in this volume are those of the contributors and do not necessarily reflect the judgments of the organizations' boards of directors or member governments. The full report is available online at www.wri.org. Materials may be reproduced with the written permission of the World Resources Institute. ISBN 978-1-56973-600-5 iv WORL D RESOURCES 2008 CONTENTS F O R E W O R D vii PART I ROOTS OF RESILIENCE CHAPTER 1 SCALING UP ECOSYSTEM ENTERPRISE 2 I Our Thesis 5 I The Need to Scale Up 8 I Box 1.1 Managing Ecosystems to Fight Poverty: The Messages of World Resources 2005 9 I Box 1.2 What is Scaling Up? 10 I Ownership, Capacity, and Connection 13 I Enterprise and Governance 16 I Box 1.3 The Rural Poverty Imperative 20 I Scaling Up Requires Social Capital 25 I The Changing Development Paradigm 26 I The Resilience Dividend 27 I Update: Scaling Up Namibia's Community Conservancies 30 I Update: Scaling Up Local Management of Coastal Fisheries in Fiji 38 CHAPTER 2 BUILDING OWNERSHIP, CAPACITY, AND CONNECTION 46 BUILDING OWNERSHIP 49 I Land and Resource Tenure 50 I Local Demand and Commitment 54 I Box 2.1 Lessons from the Equator Initiative: Best Practice in Local Ecosystem-Based Entrepreneurship 56 I Participatory Decision-Making 63 I Box 2.2 Lessons from the Field: Generating and Channeling Local Demand 68 DEVELOPING CAPACITY 71 I A Focus on Local Organizations 71 I Box 2.3 Women on the Move: Scaling Up Women's Savings Groups in Niger 74 I The Role of Intermediary Support Organizations 77 I Box 2.4 Watershed Organisation Trust, India 78 I Box 2.5 Local Empowerment, Upward Influence: The Aga Khan Rural Support Programme 84 CONNECTING RURAL ENTERPRISES: NETWORKS AND ASSOCIATIONS 95 I The Power of Association 95 I Box 2.6 Curing Poverty? Taking Advantage of the Medicinals Market 98 I Box 2.7 Ethiopian Coffee Cooperatives: Leverage Through Networks 100 I The Challenges of Association 107 W O R L D R E S O U R C E S 2 0 0 8 CHAPTER 3 ROUTES TO RESILIENCE: CASE STUDIES 110 I Fisheries for the Future: Restoring Wetland Livelihoods in Bangladesh 112 I Green Livelihoods: Community Forestry Enterprises in Guatemala 126 I Turning Back the Desert: How Farmers Have Transformed Niger's Landscape and Livelihoods 142 CHAPTER 4 DRIVING THE SCALING PROCESS 158 I Extracting Insights from the Cases 160 I Box 4.1 REDD and Community Forest Management: Reducing Poverty, Reducing Carbon Emissions 164 I Beyond the Community Level: Addressing Challenges at the Macro Level 168 I Box 4.2 The Difficulty of Devolution: Senegal's Struggle to Shift Forest Management to Local Hands 172 CHAPTER 5 RECOMMENDATIONS: ADVANCING ENTERPRISE AND RESILIENCE 188 I Cultivating Ownership and Increasing Demand 191 I Box 5.1 Climate Change and the Poor: Resilience and Adaptation 192 I Developing the Capacity of Local Organizations 195 I Promoting Enterprise Networks and Associations 197 I Creating a National Enabling Environment 197 I Culturing Resilience and Resourcefulness 200 PART II DATA TABLES 1. Population and Human Well-Being 206 2. Food and Water 210 3. Economics and Trade 214 4. Institutions and Governance 218 I Acknowledgments 222 I References 224 I Photo Credits 244 I Index 245 vi F O R CREATING E W O ENTERPRISE, R D FIGHTING POVERTY, FOSTERING RESILIENCE. THREE-QUARTERS OF THE WORLD'S POOREST CITIZENS-- those living on less than $2 per day--are dependent on the environment for a significant part of their daily livelihoods. Climate change, therefore, adds a real urgency to the efforts of the many institutions that work to improve the lives of the poor. World Resources 2008 argues that properly designed enterprises can create economic, social, and environmental resilience that cushion the impacts of climate change, and help provide needed social stability. Increased resilience must be part of the response to the risks of climate change. The efforts that foster resilience chart the first steps on the path out of poverty. What can we say with some certainty about environment and development as we approach the end of the first decade of the 21st century? W O R L D R E S O U R C E S 2 0 0 8 I The world is far wealthier; Brazil, India and China are emerg- ing as new and influential economic powers. At the same time, however, wealth tends to be highly concentrated in a small percentage of the population worldwide. I The Millennium Ecosystem Assessment of 2005 found that 15 out of the 24 major ecosystem services it assessed are being degraded or used unsustainably. I We are already experiencing the initial consequences of climate change; the pace of these early changes, such as polar ice melt, is more rapid than any models had predicted. I We have made commendable progress in reducing the number of people living in poverty, but that achievement has been limited to China and a handful of South Asian countries. The plain fact is that almost half the world's population-- 2.6 billion people--continues to live on $2 per day or less; one billion of them on $1 per day or less. I In spite of the news that as of 2007, we have become a predominately urban world, the reality of poverty remains geographical. Three-quarters of the poorest families live in rural areas; they still depend in large measure on natural resources for their existence; they remain vulnerable and their future insecure. What we know well from successful case studies, and what this volume again argues is that any success in overcoming poverty takes time and persistence; efforts to address rural poverty are linked to natural systems and must abide by natural cycles. Yet time is a growing constraint as the early impacts of climate change emerge and their long-term effects become clearer. Of equal concern is the fear that progress made over the past decades to overcome poverty may be at risk from the disruptive effects of climate change. This poses a dilemma for the development community: we must not only maintain but scale up our responses to such poverty, to reduce the economic vulnerability of the poorest at a time when many natural resources are being degraded. World Resources 2005: The Wealth of the Poor examined the relationship between ecosystem management, good gover- nance, and poverty reduction. In it we argued that poverty and the environment are inextricably linked, that the world's rural poor could enhance their livelihoods by capturing greater value from ecosystems. Our thesis was that income from sustainably managed ecosystems can act as a stepping stone in the economic empow- erment of the poor. But this could only happen when poor households are able to reap the benefits of their good ecosystem stewardship. Governance, in the form of tenure reform, can create the self-interest that leads to an improved natural resource base, be it agriculture, forestry, or fishing. We believe the linkage among poverty, environment, and governance, and the promise it holds for the poor has even more currency today. In this book, we take a closer look at that viii F O R E W 0 R D linkage. We draw on a wealth of experience in community- offset programs, such as storing carbon through community based natural resource management, much of it supported by forestry projects. the partners in this book. Improved governance is the key. Giving communities the We identify those elements without which the achieve- right to manage local natural resources themselves can be a ment of any permanent measure of improvement, of any critical catalyst for improving well-being. promise of sustained growth, is greatly diminished. We Governments committed to end poverty should also begin explore three essential factors in some detail: community to remove barriers to rural enterprises, such as lack of compet- ownership and self-interest; the role of intermediate organiza- itive markets, lack of transportation infrastructure, and lack of tions (in providing skills and capacity); and the importance of financial services. There is ready help in public and private insti- networks--formal and informal--as support and learning tutions to assist in these tasks. structures. When these factors are present, resourceful and Most importantly, the concern over poverty must translate resilient communities can emerge. into a real and substantial effort to build the capacity of local Resilience is the capacity to adapt and to thrive in the face organizations to manage natural resources and create viable of challenge. This report contends that when the poor success- enterprises. Scaling up such enterprises can provide a potent fully (and sustainably) scale up ecosystem-based enterprises, source of revenue for substantive rural development--the key to their resilience can increase in three dimensions: They can a better life for almost 2 billion of the world's poor. become more economically resilient--better able to face To this imperative is now added the unease that comes economic risks. They--and their communities--can become from knowing that the time to get ready, the time to help more socially resilient--better able to work together for mutual millions prepare, is growing short. The consequences of not benefit. And the ecosystems they live in can become more acting may well test the depths of our compassion. biologically resilient--more productive and stable. Thirty-five years ago--in 1972--the nations of the world It is clear that in the coming decades, the rural poor will be came to Stockholm for the first international conference on the tested as the impacts of climate change manifest. There are no human environment. The theme of that historic gathering was cities in the developing world large enough or wealthy enough "Only One Earth." It marked the onset of our awareness that to absorb the migration of the poor who have no buffer against we all share a common environment, a fact not fully appreciated these dangers, and can find no means to adapt. The political then or for many years after. Today, the manifest reality of and social instability inherent in such potentially massive climate change and its certain impact on all of us, no matter movements of people is of increasing concern to the interna- how privileged, leaves no doubt as to that fact. tional community. How we embrace that reality does now determine our With the adoption of the Millennium Development Goals common future. in 2000, and the increased attention given poverty with succeed- ing meetings of the G-8, a renewed and expanded commitment to overcoming poverty is slowly being put in place. There are big strategies being tested, and significant resources being Kemal Dervis 3 expended, both by donor countries and by NGOs and philan- A D M I N I S T R ATO R thropic organizations. United National Development Programme We recognize that the concern for poverty extends to the serious problems of urban poverty as well. For this reason, we Achim Steiner must continue to support responsible industrial development E X E C U T I V E D I R E C TO R that generates jobs and opportunity, even as it lessens its burden United Nations Environment Programme of pollution. Such urban industrial growth has been a signifi- cant factor in East Asia's success over the last two decades in Robert B. Zoellick reducing poverty. P R E S I D E N T But for the rural poor, the challenge is different. Natural World Bank resources are still the mainstay of the rural economy. Nature- based enterprises such as community forestry or ecotourism Jonathan Lash lodges offer the poor a way to use their ecosystem assets and P R E S I D E N T gain business capacities that allow them to participate in an World Resources Institute increasingly integrated and globalized economy. They provide the opportunity for diverse livelihood strategies. And, as we move to reduce carbon emissions, there may well be additional economic opportunity for the rural poor through the mechanism of carbon markets, in which rural communities may receive compensation for carbon reduction or ix Roots of Resilie I P A R T nce 1Scaling Up Ecosystem Enterprise 2Building Ownership, Capacity, and Connection IBuilding Ownership IDeveloping Capacity IConnecting Rural Enterprises: Networks and Associations 3Routes to Resilience: Case Studies 4Driving the Scaling Process 5Recommendations: Advancing Enterprise and Resilience Scaling up nature-based enterprises offers a clear route to building the resilience of rural communities. 2 C H SCALING A P TE UP R 1 ECOSYSTEM ENTERPRISE NATURE IS AN ESSENTIAL YET ELUSIVE ASSET FOR THE world's poor. It routinely provides subsistence livelihoods for poor rural households but little prospect for creating opportunity, wealth, and security--the foundations of well-being. This need not be so. In World Resources 2005 we showed that ecosystems can become the focus of a powerful model for nature-based enterprise that delivers continuing economic and social benefits to the poor, even as it improves the natural resource base. Evidence shows that poor rural families empowered with secure resource rights can significantly increase their income stream from nature with prudent ecosystem management. To make this possible, a funda- mental shift in governance--in the power of the poor to access resources of value and build functional enterprises--is required. (See Box 1.1 on page 9.) The increase in "environmental income" that results from ecosystem-based enterprises can stabilize the household economies of the poor, translating into better nutrition and health, greater access to education, more opportunities for saving and investment, and reduced vulnerability to financial shocks. Social gains accompany these material gains, as the poor assume greater power to manage local ecosystems and become more active players in the local economy. These gains are often associated with an increased voice in resource decisions and greater equity in the distribution of economic benefits from natural resources. Examples of such economic and social gains from environ- THIS CHAPTER mental enterprise have grown in recent years. (See Table 1.2 on page 18.) It is clear now that helping the poor to increase their In this chapter we present a vision for how the rural poor can use their environmental income through good resource stewardship, ecosystem assets to create viable and sustainable enterprises, gain devolution of resource authority, and competent business models empowerment, increase their income and opportunities, and build their can contribute to reducing rural poverty. This must be matched resilience to environmental and social challenges--and do so at a by access to finance and the reform of policies and institutions significant scale. The chapter: that keep rural groups and their businesses from competing fairly in rural, national, and international markets. I Presents the thesis that scaling up nature-based income and cultur- When these conditions are met, environmental enterprises ing resilience requires the three elements of ownership, capacity, and can become a basis for building more resilient rural communi- connection, and defines these terms. ties--resilient in the face of environmental challenges such as I Defines what we mean by ecosystem-based enterprise and how it climate change. This resilience extends as well to the economic relates to community-based natural resource management. and social challenges associated with rural life in an era of globalization and urban migration. These include the loss of I Presents a rationale for the need to "scale up" and explains the traditional livelihoods, political marginalization, and the break- different kinds of scaling. down of customary village institutions. I Defines the enabling environment of natural resource polices, market Can this ecosystem-based approach to wealth creation and regulations, and state support that is needed to foster successful resilience be scaled up so that it begins to make a difference on a nature-based enterprises of the poor. global level? In World Resources 2008, we assert that it can. I Explains the role of local governments vis-ŕ-vis other local resource institutions such as forest user groups, watershed committees, or fishery committees. I Relates our thesis to community-driven development as funded and practiced by development organizations today. I Defines the three dimensions of resilience--ecological resilience, social resilience, and economic resilience--and how scaling up ecosystem-based enterprise helps build the resilience of rural communities and poor families. 4 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E Our Thesis They also acquire greater resilience. It is the new capacities that community members gain--how to build functional and Under the right conditions, programs that give communities the inclusive institutions, how to undertake community-based skills and rights to manage their ecosystem assets sustainably projects, and how to conduct a successful business--that give rise have shown they can achieve results on a significant scale, raising to greater social and economic resilience. It is the insight that environmental income at the village level or district level and, in ecosystems are valuable assets that can be owned and managed some instances, even larger scales. In Namibia, for example, for sustained benefits that builds the foundation of ecological community conservancies have grown to cover 14 percent of the resilience. Together, these three dimensions of resilience support land area in less than a decade. Using the authority the state the kind of rural development whose benefits persist in the face grants them to manage local wildlife, community conservancies of challenge. have become the foundation of a new rural economy, generating Even while stressing these elements, we realize there are substantial income from tourism and trophy hunting while numerous other factors that are crucial to creating an environ- actually increasing wildlife populations. (See Update: Scaling Up ment where poor families have both the authority and the support Namibia's Community Conservancies on page 30.) to engage in ecosystem enterprises. These include state policies But what are the conditions under which such approaches on how and to whom natural resource access is granted, as well can go to scale? And how can national governments and inter- as how the markets for nature-based products are regulated. Basic national development agencies foster these conditions? democratic rights such as the ability of the poor to have their In this volume we explore the essential factors behind interests championed within government by representatives that scaling up environmental income and resilience for the poor. (See they can sanction and the ability to seek legal recourse when their Box 1.2 on page 10 for a discussion of what we mean by rights have been violated also form a backdrop of good gover- "scaling up.") Because so many of the forests, fisheries, grass- nance that is essential to real economic empowerment. lands, and watersheds that poor families rely on are common On the following pages, Table 1.1 summarizes our view of pool resources, we concentrate on the governance conditions the key ingredients for successfully scaling up ecosystem-based and local capacities that allow communities to jointly manage enterprises to reduce poverty and build resilience, and Figure 1.1 these ecosystems in equitable, sustainable, productive, and depicts how these ingredients interact to generate ecosystem commercially successful ways. That means we are often speaking enterprises and drive them to scale up. At the same time, we of community-based natural resource management (CBNRM). realize that enterprise scaling does not proceed by a linear check Our consideration of environmental income also includes small- list or formula. For example, incremental progress can be made holder agriculture--the most prevalent nature-based livelihood without attaining the perfect enabling environment. However, of the poor. This kind of agriculture also benefits from joint the better the enabling environment, the more effective the approaches to irrigation, soil conservation, pest management, scaling-up process and the resulting reduction in poverty. adoption of new technology, and marketing. The capacity for joint action--the result of building "social capital"--is an important feature of successful scaling. Our thesis is that successfully scaling up environmental income for the poor requires three elements: it begins with ownership--a groundwork of good governance that both transfers to the poor real authority over local resources and elicits local demand for better management of these resources. Making good on this demand requires unlocking and enabling local capacity for development--in this case, the capacity of local communities to manage ecosystems competently, carry out ecosystem-based enterprises, and distribute the income from these enterprises fairly. The third element is connection: estab- lishing adaptive networks that connect and nurture nature-based enterprises, giving them the ability to adapt, learn, link to markets, and mature into businesses that can sustain themselves and enter the economic mainstream. When these three elements are present, communities can begin to unlock the wealth potential of ecosystems in ways that actually reach the poor. In so doing they build a base of compe- tencies that extends beyond nature-based enterprises and supports rural economic growth in general, including the gradual transition beyond reliance on natural resource income alone. 5 W O R L D R E S O U R C E S 2 0 0 8 FIGURE 1.1 SCALING UP COMMUNITY-DRIVEN ECOSYSTEM ENTERPRISE Enterprise Enterprise Poverty Reduction Increased Resilience · Livelihood Security · Ecosystem Stability · Income · Social Cohesion and Adaptability Enterprise · Empowerment · Economic Opportunities Enterprise · Opportunity and Business Skills Enterprise Development Examples: N Networked, OI · Cooperatives Market- · Learning networks T Connected · Commercial associations C Enterprise E and federations N · Connection to government N line agencies and O networking extension services SCALING UP C · Financial services Ecosystem- Examples: · Small-scale farming Based · NTFP collection Enterprise · Fishing CONNECTION Y · Ecotourism TI capacity · Handicrafts C building · Livestock rearing A Examples: Intermediary P CAPACITY Support A Joint · Community forestry plan C Organizations Ecosystem · Community fishing agreement Management · Community grazing plan (CBNRM) · Water harvesting · Irrigation management OWNERSHIP capacity · Soil conservation building Includes: · Formation of resource Formation of user group PI Local NRM · Connection to local Institution & H government S Local Financial · Local investment: R Commitment cost-sharing or E labor contribution N W participatory Driven by: O planning · Tenure security · Leadership ENABLING Community · Communication Demand · Initiating Event · Financial support Enabling Environment for Scaling Supportive Policy Nondiscriminatory Tax and Commitment of Environment Regulatory Environment Government Line Agencies Availability of Financial Technical, Research, and Communication of Successes Services and Public Funding Marketing Support 6 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E TABLE 1.1 SCALING UP ECOSYSTEM ENTERPRISE: KEY INGREDIENTS Success Factors for Community-Driven Natural Resource Management OWNERSHIP: A Local Stake in Development and Enterprise I Enforceable resource rights I Community demand for natural resource management I Community investment of time, money, or other key inputs I Participation in and influence over decision-making processes C A P A C I T Y: Social, Technical, and Business Skills to Manage Resources and Establish Enterprises I Social capacity to embrace a shared goal for resource management and to negotiate an action plan to attain it I Technical capacity to jointly manage natural resources sustainably, including the ability to monitor resources and enforce rules I Business capacity to organize an ecosystem-based enterprise and market the resulting products and services I Local resource management institutions with the capacity to distribute costs and benefits of ecosystem management fairly I Dynamic community leadership to catalyze demand and mediate disputes I Intermediary support organizations to help build capacity and influence C O N N E C T I O N : Links to Learning, Support, and Commercial Networks and Associations I Horizontal links to other rural producers to access information, improve efficiency, and connect to markets I Vertical links to government and the private sector to build political support, deal with bureaucratic obstacles, and connect to technical and financial support An Enabling Environment for Scaling SUPPORTIVE POLICY ENVIRONMENT I Secure resource rights and fair benefit-sharing arrangements I Progressive policies on the registration of NGOs, commercial associations, and cooperatives I Basic democratic rights such as representation and redress NONDISCRIMINATORY TAX AND REGULATORY ENVIRONMENT I Reform of subsidies, taxes, licensing requirements, and quotas favoring large enterprises over small enterprises COMMITMENT OF GOVERNMENT LINE AGENCIES I Government line agencies reoriented toward service role rather than traditional top-down role I Interagency coordination TECHNICAL, RESEARCH, AND MARKETING SUPPORT I Extension services for resource management and monitoring I Business planning and enterprise development I Market research and product development AVAILABILITY OF FINANCIAL SERVICES AND PUBLIC FUNDING I Public funds available for ecosystem restoration I Private and/or public financing available for enterprise development COMMUNICATION OF SUCCESSES I Stakeholder engagement via site visits and testimonials I Momentum among policymakers, funders, line agencies, and local government via media stories, research reports, and site visits 7 W O R L D R E S O U R C E S 2 0 0 8 The Need to Scale Up management--in the right hands and with appropriate support--has the potential to meet this goal. The question has The scale of global poverty and the scale of peril to rural ecosys- become how to isolate the key elements of the many local success tems are both great. They require a response at a similar scale. stories and propel them into wider application. Without an Some 2.6 billion people live on less than $2 per day, with three approach to scaling up CBNRM for the poor, these local quarters of them in rural areas. (See Box 1.3 on pg. 20.) Their Continues on page 12 dependence on ecosystems for subsistence and cash is high. Nature-based income often makes up more than half of the total FIGURE 1.2 ECOSYSTEM DECLINE: ANNUAL NET CHANGE income stream of the rural poor (WRI et al. 2005:39, 52). Unfor- IN FOREST AREA BY REGION, 1990-2005 tunately, rural ecosystems themselves are under unprecedented strain. In 2005 the Millennium Ecosystem Assessment (MA) found that 15 of the 24 ecosystem services it assessed were in Africa global decline--services such as plant pollination or the provi- sion of fresh water, woodfuels, wild foods, and fish. These and South America similar services provide the basis for many of the livelihoods of the poor. Indeed, the MA concluded that the greatest burden of ecosystem degradation already falls on the poor, and it will do so Asia in increasing measure if current trends persist (MA 2005:1­2). Oceania Scaling Up Community-Based Natural Resource North & Central Management for Income and Resilience America These worsening ecosystem trends and the close connection Europe between poverty and the environment drive home the need to scale up income for the poor in a way that helps arrest -5 -4 -3 -2 -1 0 1 2 rather than exacerbate environmental damage. Two decades of Million hectares per year experience show that community-based natural resource Source: FAO 2005a:XV 8 BOX 1.1 MANAGING ECOSYSTEMS TO FIGHT POVERTY: THE MESSAGES OF WORLD RESOURCES 2005 IN WORLD RESOURCES 2005 WE ARGUED THAT manifest in improved environmental stewardship and poverty and the environment are inextricably linked and that improved quality of life. Tenure reform that assures the poor the world's rural poor could enhance their livelihoods by captur- secure resource rights is the first priority in making gover- ing greater value from ecosystems. The reality is that three nance work for the poor. Access and use rights to quarters of the world's poor people--those living on less than resources--the basis of resource tenure--are fundamental to $1 a day--live in rural areas and depend on natural resources tapping the wealth of ecosystems. This includes the right to to earn a living. have access to common pool resources, which are an impor- tant source of environmental income but are typically under Our thesis was that income from sustainably managed ecosys- the control of the state. tems can act as a stepping stone in the economic empowerment of the poor. But this can only happen when poor households are 4. Government at all levels plays a critical role. Everything from able to reap the benefits of their good ecosystem stewardship. resource rights to access to larger markets depends in one Good governance, including secure tenure, can create the self- way or another on government action and government policy. interest that leads to an improved natural resource base, be it in Getting this policy right so that it facilitates rather than agriculture, forestry, or fishing. impedes the natural-resource-based livelihoods of the poor is critical. Unfortunately, an array of governance failures usually stands in the way: lack of secure access to ecosystems, political marginaliza- 5. There are significant obstacles to the success of this tion, and exclusion from the decisions that affect how ecosystems approach. They include the capture of benefits by the elite are managed. Unlocking the economic potential of ecosystems to and powerful, often through corruption; lack of participation reduce rural poverty means tackling these obstacles. by all groups in the community, especially the most disad- vantaged; and inequitable distribution of the benefits of natural resource management. Tackling poverty ultimately means political change that enables land reform, finance Major Findings of World Resources 2005 reform, tax reform, and policy reform in a number of resource sectors. Yet initial steps on the path out of poverty 1. Environmental income is crucial to the livelihoods of the can be taken successfully without the need for every reform rural poor. Natural resources anchor the household to be in place. economies of the rural poor. In the last decade, the connec- tion between environment and the livelihoods of the poor has Maximizing sustainable environmental income is not, taken been well elucidated. Nature-based income, or environmen- alone, a full solution to poverty. But it is a legitimate and impor- tal income, often contributes from one half to two thirds of tant entry route to more stable incomes and greater the total income stream of poor rural families. Small-scale participation in the market economy of nations. It can support farming and the collection of wild foods, materials, and other job creation strategies and economic expansion programs. medicines are the main sources of environmental income. Case studies show that better management of the ecosys- Emphasizing good ecosystem management will also directly tems that produce these goods and services can significantly support attaining the Millennium Development Goals (MDGs). increase household incomes of the poor. Because of the dependence of the poor on environmental income, the MDGs can never be fully met without utilizing the 2. Community-based natural resource management (CBNRM) power of ecosystems to support wealth creation. The converse is can be pro-poor. CBNRM has tremendous potential to also true. Failure to deal with the declining state of ecosystems increase environmental income of poor households. will increase poverty. Should the ecosystems that the poor rely However, realizing this potential requires a change in gover- on most heavily for subsistence and income continue to decline nance--a change in the access to and control of natural at their present rate or should the poor fail to capture the income resources by the poor. Better governance can mean the derived from these ecosystems, more people will fall into difference between using nature for simple survival or for poverty, and the prospect of meeting the MDGs will recede. wealth accumulation. Source: World Resources 2005: The Wealth of the Poor--Managing Ecosystems to Fight 3. A poverty-environment-governance approach is flexible, Poverty. Download the full report or the executive summary online: http://www.wri.org/ adaptable, and replicable. When people have a vested inter- publication/world-resources-2005-wealth-poor-managing-ecosystems-fight-poverty#. est in the natural resources they use, this self-interest can 9 BOX 1.2 WHAT IS SCALING UP? In general, scaling up refers to increasing the scope or reach of Environmental income cannot be scaled up unless the poor an activity, program, project, or initiative so that it serves more have access to ecosystem resources--or the power to use these people or delivers more or better benefits. resources for benefit within the current economic and political system. With real access comes empowerment and social WHILE THIS SEEMS STRAIGHTFORWARD ENOUGH, benefits beyond just income. the term "scaling up" can be confusing because we use it in several ways. Its meaning depends on what is being scaled and Environmental income is realized through some form of enter- the type of scaling up that is occurring. prise, be it farming, fishing, collection of non-timber forest products, or provision of services like tourism. Scaling up environmental income means increasing the scale, viability, and profitability of these enterprises--and doing so sustainably. What Are We Scaling Up? For the rural poor, many of these enterprises are best under- In the broadest sense, we want to scale up: taken collectively as community-based schemes, since many of the resources they use are common pool resources. Scaling up IPoverty reduction, using the assets from ecosystems as a CBNRM, then, is often the route to scaling up environmental basis for wealth creation, and income and environmental enterprise. IResilience of local communities--especially poor families-- Most current development literature uses "scaling up" in this to accommodate environmental and social change, last sense of scaling up a successful CBNRM project, approach, particularly arising from climate change. or initiative. While this is certainly desirable, in this volume we do not restrict our definition of scaling up to donor-funded However, these are ultimate goals. In World Resources 2008, we projects or initiatives. We go further to speak of scaling up use the term scaling up more specifically to refer to the means successful and equitable ecosystem enterprises. Such enter- to achieve these ultimate goals. Thus we want to scale up: prises are the expression of conducive governance conditions, market and business skills, and good natural resource manage- IEnvironmental income--income from ecosystems and ment, which we believe are the basis of sustainability and nature-related activities, resilience. IAccess--the power to use ecosystem resources to support livelihoods and empowerment, Five Types of Scaling Up IEnvironmental enterprises--generators of environmental income and livelihood skills, and We can speak in terms of five different modes of scaling up, all I of which can help increase the development impact of an enter- Community-based natural resource management (CBNRM)-- prise, project, initiative, or organization. the basis of much enterprise, social learning, and empowerment. I Quantitative scaling up. When an enterprise, program, or organization expands its size, profitability, geographic base, These four elements are interrelated, as described here: or budget, it is experiencing quantitative scaling. This is the kind of growth and expansion of membership base, To reduce income poverty, we focus on increasing the quantity constituency, or geographic influence that most people think of income from nature--in other words, scaling up environmen- of when they speak of scaling up. It often involves replicating tal income. This can result from higher productivity from the a successful community-based model or enterprise in new natural resource base due to better management, from generat- communities or simply spreading the original enterprise or ing new services like trophy hunting or carbon storage, or from program to cover a larger area--a process sometimes referred extracting greater value from traditional products like coffee, to as "scaling out." But quantitative scaling can also simply handicrafts, or medicinal plants due to better business involve growing an enterprise's size and profitability, and thus practices or marketing. Environmental income can take the increasing its social and financial sustainability (Hooper et al. form of subsistence services--food, building materials, or fuel, 2004:132; Uvin and Miller 1994:8-11; Gillespie 2004:8). for instance--but more and more must also translate into the cash economy if the rural poor are eventually to be integrated into mainstream national and global economies. 10 IFunctional scaling up. As enterprises or organizations increase the types of activities they carry out or the scope or integration of these activities with other enterprises or organi- zations, they are undergoing functional scaling. This allows successful enterprises or CBNRM programs to diversify into complementary activities. For example, a community water- shed rehabilitation program may expand to include agricultural marketing activities as the restored watershed becomes more agriculturally productive. Or programs may expand into new areas such as nutrition, health, or even liter- acy that make use of the trust and community mobilization engendered by the original activities (Hooper et al. 2004:131-132; Uvin and Miller 1994:11-12). IOrganizational scaling up. Organizations responsible for community-based projects and enterprises often strengthen their own capacities substantially, allowing them to take on new responsibilities or to carry on their current activities more effectively. They may accomplish this through staff training and personnel development to improve the manage- ment and systems of the organization. New sources of funding can also lead to organizational scaling by increasing financial independence and nurturing creativity and critical analysis. Establishing learning links with other public agencies or private organizations is also an important factor in encouraging this type of organizational growth (Hooper et al. 2004:132; Uvin and Miller 1994:16-18). IPolitical scaling up. This type of scaling involves increasing the political power of an organization or enterprise so that it can influence state actors, negotiate for stronger support or greater latitude in its activities, and advocate for policy changes that facilitate the organization's work or extend the enterprise's commercial or social reach. Through political scaling up, community-based organizations can greatly increase the chances that their work will spread to new juris- dictions or expand into new activities, increasing their impact (Hooper et al. 2004:132; Uvin and Miller 1994:12-13). IInstitutional scaling up. This refers to growing and strengthening the public institutions necessary for estab- lishing and distributing the benefits of ecosystem enterprises. Local government is often the focus of this scaling. Replication of the institutional infrastructure of representation--the institutionalized form of participa- tion--and the placement of natural resource functions at the local representative level of government can help spread citizen inclusion in decision-making. Since local government is both replicable across space and sustain- able over time, it can be an important partner in scaling up ecosystem enterprises (Ribot 2008). 11 W O R L D R E S O U R C E S 2 0 0 8 successes will remain isolated achievements. With such an CBNRM can become the vehicle for developing the approach, they may help transform the rural economy and capabilities and connections to accommodate such systemic create incentives to manage ecosystems for long-term health as changes. That, effectively, is the definition of resilience. CBNRM well as profit. is more than just a means to focus and direct environmental Scaling up CBNRM for the poor needs to be seen as part of management. It can be a platform for empowerment, a way to a larger strategy to increase the resilience of the rural poor to develop local institutions, a connection point for local represen- meet the array of environmental, social, and economic tative government, and a nucleation point for the development challenges they face. Change is coming to rural communities in of social connections. These aspects encourage knowledge many forms--as climate change that threatens agriculture and generation and social learning, and these are the basis of greater other nature-based livelihoods; as the general decline in ecosys- social resilience. They are also the basis for cooperative enter- tem health cited by the MA; as a change in traditional rural prise, which can bring greater earning power, so that the poor economies with globalization and the intensification of agricul- can expand their financial assets. ture; and as increased social instability as village, tribal, and At the same time, CBNRM that adopts a stewardship family patterns adjust to new models of ownership and gover- approach supports ecosystem stability, which increases an ecosys- nance and to increasing urban flight. These sources of change tem's ability to absorb environmental stresses and remain are growing exponentially and, with them, the stresses they productive. Reducing pressure on local ecosystems through impose on the poor. So the need for scaling up extends to restoration and sustainable harvest practices can help mitigate resilience as well. longer-term systemic changes like climate change. Thus, scaling up CBNRM through the elements of ownership, capacity, and connection is effectively scaling up resilience in all its dimensions. Such resilience must underlie any attempt at poverty reduction in a rural environment defined by large-scale physical, economic, and social change. The Potential for Scaling Up To better understand the need and potential for scaling up environmental income and resilience through good ecosystem stewardship, consider the plight of inland fisheries in Bangladesh. The country's many rivers, wetlands, and shallow lakes make it the world's third largest producer of freshwater fish (not including aquaculture) (FAO 2007a:14). Even so, productiv- ity could be much higher if the nation's freshwater fisheries were not so degraded. As with many of the world's inland fisheries, pollution, development, dams, and unsustainable fishing practices have greatly diminished the annual catch. The conse- quences for the poor have been grim. Between 1995 and 2000, fish consumption among poor families in Bangladesh's extensive floodplains dropped almost 40 percent (World Bank 2006a:46). Conscious of the need to try a new approach to managing the nation's inland fisheries, the government of Bangladesh has assented to community control of local fishing waters in 110 villages in three wetland watersheds in the country's northern region. Between 1999 and 2006, fish catches rose 140 percent in these villages as local fishers adopted better fishing practices and restored fish habitat to help fish stocks recover. Fish consumption rose 52 percent, and average daily household income rose more than 30 percent in the affected villages. (For a more complete account of the fishery restoration, see Chapter 3: Fisheries for the Future: Restoring Wetland Livelihoods in Bangladesh.) There is great potential for scaling up the success of the community-based fishery management arrangement in northern Bangladesh. So far, the new approach has directly benefited 184,000 Bangladeshis--most of them poor--in 110 villages 12 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E (MACH 2006:2). But the successes there are directly applicable the rural poor rely on forests for at least a portion of their to another 340 neighboring villages in the same watersheds. income, the need for scaling up these enterprise models is clear Beyond these watersheds, many more fish-dependent families (Forest Trends 2005:1). In all these cases, scaling up successful could benefit if the government applies the lessons of these community-driven approaches is the most promising route to communities in the thousands of villages in which freshwater fish addressing both poverty and ecosystem decline simultaneously. make up an important part of the local economy. An estimated 9.5 million Bangladeshis are involved in subsistence fishing on the nation's floodplains, swelling to some 11 million during the monsoon season (Azim et al. 2002:38; FAO 2005b). Ownership, Capacity, and Connection Looking farther afield, the number of potential beneficiar- ies increases even more, since freshwater fisheries are a prime Ownership, capacity, and connection are essential elements of a source of income for poor people throughout the developing strategy to scale up environmental income and ecosystem enter- world. In China, more than 9 million people are involved with prises and to achieve poverty reduction and increased rural inland fisheries and aquaculture. In the Mekong River basin, resilience using nature's assets. where fish is a critical part of the diet, as many as 40 million people--from full-time fishers to rice farmers--depend on fresh- water fish for at least a portion of their livelihood. Lessons from Ownership and Demand Bangladesh's success are likely quite relevant in these and other Without ownership, poor households and poor communities lack regions where the decline of fisheries still confronts the poor the personal investment necessary to participate in joint resource (Kura et al. 2004:36). management efforts, adopt new management techniques, or Similar estimations could be made for other ecosystems. For build enterprises based on long-term stewardship. Ownership example, successful efforts at community-led watershed restora- here has two aspects. One is ownership of the resource manage- tion in arid western India have replenished water tables and ment process, meaning control over decisions on what resources boosted crop production and village incomes. These models are are to be managed and how to manage them. The second is legal now beginning to go to scale, with implications not just for India ownership or tenure: the recognized right to benefit from but for many of the 1.8 billion people in developing countries resource management. When both of these are aligned, poor who live in drylands. About half of all poor families live in families can legitimately be said to have a stake in the benefits drylands; most of them depend on vulnerable rainfed agricul- that accrue from successful ecosystem management. And that is ture and livestock rearing in watersheds that are overgrazed and the first requirement for their engagement at either an individual marginally productive (Morton and Anderson 2008:4; UNEP or community level. 2007:83). Similarly, community forestry enterprises in Asia, Ownership here should not necessarily be interpreted as the Africa, and Central America have shown that forest loss, poach- full bundle of property rights associated with private property ing, and illegal logging can be arrested as forests become a more (the rights to access, to use, to exclude others, to manage a reliable source of community income. Since about 1.6 billion of resource, and to sell or transfer these rights). The right to trans- FIGURE 1.3 THE POTENTIAL FOR SCALING UP COMMUNITY-BASED FISHERY MANAGEMENT 3 Watersheds 3 Watersheds 1 Country 15 Countries 110 Villages 340 Adjacent Villages 12,000 Water Bodies > 50 Million Inland 184,000 Inland fishers 9.5 Million Inland Fishers Fishers 13 W O R L D R E S O U R C E S 2 0 0 8 fer or sell communal or state resources, for example, may not be are willing to make to receive it. In this sense, demand is a spur necessary for establishing a viable enterprise. The crux of to action and translates to a willingness to work together for a ownership--as we use the term--is that local people have secure common goal. Indeed, successful CBNRM often grows directly rights to use and control ecosystem resources, including the right out of community consensus on the need to act and a commit- to manage the resource and exclude others. Without this power, ment on the part of a majority of stakeholders to adhere to an local groups may find it impossible to protect their resources agreed action plan. The impetus for this "local demand" can from exploitation by powerful outsiders (Meinzen-Dick 2008). come from a variety of sources. It may come as a response to Ownership of resources and the resource management resource scarcity or ecosystem decline--the failure of a local process can give rise to local demand for better ecosystem fishery, for example. Or it may come in response to successful management. Demand can be defined as the expression of pilot projects that demonstrate benefits from good resource desire for something, measured by the contribution that people management in situations similar to those found in a community. WHAT IS AN ENTERPRISE? In World Resources 2008 we focus on building ecosystem-based enter- In sum, enterprise, as we use it here, is both a vehicle for individual and prises as a way to create viable rural livelihoods and reduce poverty. What social empowerment, and a means for wealth creation. do we mean by enterprise and how does it relate to human well-being? How do Ecosystem-Based Enterprises and CBNRM Relate? We define an enterprise as any activity undertaken to create a product or Community-based natural resource management (CBNRM) is the founda- service of value. Ecosystem-based or nature-based enterprises derive tion of many successful ecosystem-based enterprises. CBNRM plays two their products or services from ecosystem services--from the primary important roles in facilitating these enterprises among the poor. productivity of nature and the functioning of natural systems. Fishing; First, CBNRM can improve the natural resource base by encouraging agriculture; livestock rearing for meat, milk, or wool; timber extraction; sustainable management and harvest practices. This may mean that there collection of non-timber forest products such as rattan, xate palm, thatch, are more fish for fishers to catch and sell, more fodder for pastoralists to or edible plants and spices; the harvest of medicinal plants; and plant- feed their livestock, or a higher water table and less erosion, allowing based handicrafts such as wood carving--are all common nature-based farmers to grow crops more productively. enterprises based on consumptive use. Tourism and recreation are typical nonconsumptive enterprises based on nature. Second, CBNRM builds social capital among community members and linkages to networks beyond the community that help create successful Enterprises support livelihoods. That is, they are the organized activity that enterprises. For instance, communities managing forest concessions in provides the basis for any livelihood, along with the attendant relationships-- Guatemala have used the social capital and linkages to NGOs and govern- with markets, social groups, or government--necessary for its success. ment required for this management to create community forest enterprises It's important to understand that while enterprise is commonly associated that export high-grade timber around the world. (See Chapter 3.) with commerce, this is not always so, particularly when speaking of the The relationship also goes the other way: the promise of improved enter- enterprises of the poor. Realizing the value from the product or service prise encourages greater participation in CBNRM by crystallizing the created by an enterprise often occurs when it is marketed within the cash benefits of working together. A community's demand for joint management economy, yielding revenue. But value from an enterprise can also be of its natural resources is defined by incentives. The prospect of enterprise extracted through subsistence use of products or in the form of personal that produces income or other tangible benefits acts as such an incentive. or social benefits such as empowerment, group cohesion, cultural identity, or religious experience. Many of the benefits of community-based natural Although CBNRM is itself a collective activity, the enterprises associated resource management come in these nonmonetary forms. with CBNRM are not necessarily collective enterprises--they may be individually owned enterprises as well. For example, a community group Thus our definition of enterprise is a more encompassing one rather than may collaborate to jointly manage irrigation water, but the benefits the being restricted narrowly to commerce. Enterprise is not only a way to water brings may be realized in an individual small farmer's field--an connect to markets, and our emphasis on enterprise is not an attempt to individual enterprise. However, the collective effort associated with CBNRM monetize all livelihood benefits. Just as poverty has dimensions beyond lack may foster networks such as producer cooperatives or Farmer Field Schools of income, so enterprises that are poor-friendly have benefits beyond income. that allow individuals to share techniques and technologies, purchase Nonetheless, the commercial aspect of ecosystem-related enterprises for inputs in bulk, and sell their products together to gain market leverage. poverty reduction is undeniably important. Developing the business skills, So while CBNRM is not a precondition for ecosystem-based enterprises, we access rights, market connections, finance, and policy support to enable argue that the poor's reliance on communal natural resources often makes successful business enterprises is an essential part of enabling low- it a key element in the commercial success of these enterprises, while income families to participate in national and global economies and is magnifying their social benefits. thus a principal focus of this report. 14 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E It might also come in reaction to a dynamic leader who presents It is important to note that effective capacity-building is the community with a compelling vision for good management. something that enterprises, community groups, and local institu- The availability of state funds, technical assistance, or reforms to tions take on themselves. It is encouraged and facilitated by natural resource policy may also factor into the willingness of NGOs and others, but the incentive is born of self-interest. In poor families to change their farming or fishing practices, their the largest sense, capacity follows power, and when local people grazing habits, or their use of a forest. are given enforceable rights over resources of value, their capac- Once local demand for a new resource management ities for resource management and entrepreneurship often approach has been expressed, local commitment must follow. quickly emerge. In some ways the issue is not so much lack of This can take a variety of forms, such as a contribution of cash, capacity as it is the inability to exercise capacities due to a lack of labor, or other investment that represents both personal owner- political power, contacts, and select skills. As part of this process, ship of the new management effort and a willingness to local groups can identify those technical and social skill sets they participate in a joint undertaking. Sometimes this investment lack and can engage intermediary groups to facilitate these skills takes the form of adherence to a management plan that restricts and provide opportunities and financial support to apply them. harvests for a prescribed period to allow the ecosystem to recover. Without this expression of self-interest and social enter- prise, participation in and sustainability of community resource Networks and Connection management efforts is likely to be low. Successful nature-based enterprises depend upon developing dynamic links among local organizations (horizontal linkages) and between local and state institutions (vertical linkages). These Local Capacity for Development linkages, which often take the shape of networks such as cooper- Ownership and demand are just the first steps in successful atives, federations, unions, or learning networks, are the conduit environmental enterprise for the poor. When community for information exchange and adaptive learning. They play a members take on enforceable rights and the willingness and critical role in facilitating access to markets, financial services, scope to exercise them, they become empowered "stakeholders." and other technical and social services that support and sustain But they must still develop a range of technical, social, and finan- community enterprises. Without continued attention to develop- cial skills in order to turn their stake in natural resources into ing and maintaining such networks and connections, the improvements in livelihoods and income. These include the ecosystem enterprises of the poor are not likely to last long. ability to assay their resources, formulate and execute a resource Experience shows that community-based natural resource management plan, produce a high-quality product, and market projects often fail within 5 years without a connection to innova- it successfully. This knowledge is the infrastructure of skills and tion, encouragement, engagement, and learning (Farrington and experiences that successful natural resource enterprise requires. Boyd 1997:380­381). Building these skills is not a haphazard processes for Networks help to create lasting social capital among the community-based enterprises that succeed. It is an intentional poor by increasing cooperation and understanding across a and step-wise process that involves a variety of local organiza- geographic area. In fact, they are the glue of scalability, allowing tions--from informal savings or self-help groups to civil society the efforts of individual organizations in widely separated groups like NGOs or unions and to local and municipal govern- communities to coalesce into something with broader applicabil- ments. In the aggregate, these small-scale, ground-level ity and impact. In many cases, networks are also the channel organizations are the key to drive the scaling process, particularly through which intermediary organizations reach village clients when it comes to scaling up environmental income for poverty and deliver their capacity-building services. reduction. To be effective for poverty reduction, such local The updates on case studies from World Resources 2005 at organizations must function along participatory lines and ensure the end of this chapter demonstrate the importance and interrela- that the interests of the poor are adequately represented. tionship of the three elements of ownership, capacity, and Other groups beyond local organizations also have impor- connection, using examples of two very different types of ecosys- tant roles to play. Intermediary support organizations or tem enterprise that have scaled up significantly in the last few years. mid-level NGOs that straddle between local groups and state So far this chapter has stressed the potential for nature- governments are especially powerful actors in building the based enterprise to enhance the livelihoods of the rural poor and human, social, and institutional capital required for successful has suggested a strategy to first develop and then scale up such community-driven management of natural resources. These enterprises. The model presented is intentionally schematic, second-order groups--sometimes called "mother NGOs"--play concentrating on a local-level strategy for valuing ecosystem a variety of roles in capacity-building, coordination, service assets and enabling local groups to turn these assets into delivery, and as trusted intermediaries between local and state functional businesses and sources of social empowerment. The institutions. Fostering the development of such intermediary remainder of the chapter places this model in the larger context organizations may be one of the most important steps govern- of rural development, acknowledging the governance challenges ments and donors can take to encourage successful scaling. inherent in fostering the enterprises of the poor and stressing the 15 importance of an enabling environment of natural resource The Need for Authority and Access policy, access to finance, and good communication. The central CBNRM can only provide a route for the rural poor to tap role of social capital--the web of social networks and relation- nature's wealth if the poor are given sufficient authority over ships that pervade society--in developing successful rural resources and access to markets, technology, and other factors enterprise is also explored, as well as the relationship of nature- they need to translate their resource management efforts into based enterprise to "community-driven development" (CDD)--a benefits, monetary or otherwise. We have emphasized the participatory model of development that devolves decision- concept of ownership and associated it with secure resource making and financial power to local bodies. The chapter ends rights and inclusive participation in management and enterprise by considering the potential for a "resilience dividend" when decision-making. While these are essential, they alone are not individuals and communities successfully undertake sustainable sufficient. Poor individuals and groups may be granted resource nature-based enterprises. tenure but lack effective ways to enter the market chains for farm, fish, or forest products. They may lack critical inputs, such as technologies or fertilizers, or lack energy or road infrastruc- ture. They often will lack finance, making productive investment in the resource more difficult. And they will almost certainly be Enterprise and Governance subject to licensing requirements and other regulations that place restrictions on how they can exercise their resource rights. Any model of nature-based enterprise for the poor must wrestle These common obstacles translate into a lack of true access with the fundamental power imbalance that the poor face where to nature's wealth. Real access here is more than just physical natural resources are concerned. For years the poor have been access to the resource. It encompasses a bundle of powers that relegated to low-level enterprises and subsistence use of nature, includes the ability to tap new technology, gain state support, while others have been empowered with access to high-value obtain financing, and negotiate the regulatory and tax systems resources, granted subsidies to develop extractive industries, that the state uses to control resource markets through licenses, given favorable tax and regulatory treatment, and permitted to quotas, fees, and levies (Ribot and Peluso 2003:161­170). dominate natural resource markets. In other words, wealth is Honduras provides a good example of the difficulty that the continuously extracted from nature--but not by the poor. They poor often have in acquiring not only the rights to use and have been excluded from nature's wealth not principally because manage resources but also the access they need to markets and they lack the business acumen to compete but because the to a competitive business regulatory environment so that they resource rights and market access they need to go beyond subsis- can conduct successful enterprises. Although in law the tence use of ecosystems have been granted to others through Honduran government recognizes the rights of indigenous state policies (Larson and Ribot 2007:189­191). Successful peoples to their traditional lands, in practice indigenous peoples nature-based enterprises of the poor will not arise--and those have found it very difficult to establish legal title to these lands. that arise will not scale up--without addressing these basic Indeed, their use rights over forest resources are restricted to governance challenges. non-timber forest products, while the government has the right to grant logging contracts to third parties on indigenous lands 16 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E without the approval of the indigenous inhabitants (Larson and development that small rural enterprises have difficulty under- Ribot 2007:193­196). taking on their own. Even when rural communities seem to gain an advantage Clearly, an enabling environment for nature-based enter- under Honduran law the advantage evaporates under inspec- prise also requires access to financial services, since lack of tion. One provision of Honduran forest law--called the Social investment capital and start-up funds are frequent barriers to the Forestry System--grants communities that form an enterprises of the poor. Both the public and the private sector "agroforestry cooperative" the ability to negotiate directly with have parts to play in making financial services available for both the state for a contract to tap forest resources, including timber small and medium enterprises. Government also has an impor- and pine resin. The intent is to foster small-scale forest enter- tant regulatory role to encourage the private sector to develop prises. The forest contracts are not only difficult to negotiate, credit and insurance products appropriate for a rural clientele. however, but very restricted in their commercial usefulness. For Governments and international financial institutions can in example, agroforestry cooperatives are only permitted to harvest addition provide funds to undertake basic investments in ecosys- a maximum of 1,000 m3 of timber annually--an amount so tem stabilization and restoration, such as watershed restoration small that it is nearly impossible to support a commercial opera- to improve water retention and check erosion or aquatic habitat tion. Meanwhile, large-scale timber operators are not subject to restoration to revitalize fisheries. These funds are often a catalyst similar restrictions. It is no coincidence that the forestry sector is for CBNRM and thus a generator of natural assets that can be dominated by such large-scale producers, who control both the the basis of enterprise. timber and pine resin markets and who maintain very close Creating an environment in which nature-based enterprises relationships with government bureaucrats, often facilitated by can replicate also requires attention to the role of communica- sweetheart deals and bribes (Larson and Ribot 2007:193­196). tion. Media engagement in publicizing successes is almost always The situation in Honduras is not unique. Similar obstacles necessary to generate interest and local demand for CBNRM plague the attempts of local groups to undertake community and then to build political support among government agencies forestry or to organize their use of other ecosystem services-- and donors for funding the scaling process and for building the fisheries or wildlife, for instance--into commercial enterprises. A capacity of intermediary support organizations that will act as recent study of community forestry enterprises worldwide identi- midwives for community-driven enterprises. Culturing dynamic fied a long list of discriminatory taxes, licensing systems, community leaders through access to training, mentoring, and royalties, and legal limitations that routinely handicap the ability secondments is another essential enabling factor. Many of these of small forest enterprises to compete against more powerful enabling factors are described in greater detail in Chapter 4. commercial interests (Molnar et al. 2007:64­68). Thus local Continues on page 24 nature-based enterprises--even when they are driven by community demand, as we have described--depend for their success on overcoming systemic policy obstacles and power imbalances. Many of these obstacles reflect the fact that the process of decentralizing natural resource authority is still incomplete in most cases. Creating an Enabling Environment for Enterprise Wrestling with the problems of authority and access is a neces- sary precondition for pro-poor enterprise. However, a true "enabling environment" for poor-friendly enterprise will not only remove obstacles but will lend support in many key areas, such as finance, leadership development, communication, and progressive public policy. Much of this will originate at the national level. For example, ensuring that state policies do not unduly restrict the formation or activities of NGOs, producer cooperatives, commercial associations, and other civil society and commercial organizations is essential if these organizations are to provide effective support to rural enterprises. At the same time, the state itself has an important role to play in small enter- prise development, whether that be offering technical support for natural resource management, helping small producers to develop business plans, or supporting basic market and product 17 W O R L D R E S O U R C E S 2 0 0 8 TABLE 1.2 THE RESULTS OF ECOSYSTEM ENTERPRISE: SELECTED EXAMPLES Enterprise Background Results Scaling Andavadoaka The cooperative formed in 2003 with With technical support from a local NGO and A dozen villages nearby are replicating Fisherman's support from Copefrito, Madagascar's Madagascar's scientific research bureau, the Andavadoaka's MPA and the Cooperative largest exporter of fish. It brings together villagers of Andavadoaka created a Marine government is using Andavadoaka's traditionally competing fishers to Protected Area (MPA) plan that includes experience as an example for how to Madagascar coordinate their catches and bargain seasonal bans on octopus fishing. This has manage the rest of the nation's with buyers. increased catches 13-fold, increasing the fisheries. The villagers are now fishery base on which the co-op depends. building their own ecotourism lodge. Subsistence food supplies and incomes have both grown substantially in the region. The cooperative has enough market power to Source: UNDP 2006a, push for better prices with large businesses. Blue Ventures It also fills a lucrative niche in the interna- Madagascar 2008 tional sustainable fish market. North Western Bee Started as a government-supported NWBP produces 200 metric tons of honey NWBP began with 100 local producers Products, Ltd. community project in 1979, NWBP and 50 metric tons of beeswax each year. in 1988 and by 2004 had grown to (NWBP) became a private enterprise owned by the Along with selling its products throughout 6,000 producers in an area of 5,000 producers in 1988. The company provides Zambia, NWBP exports its honey and km2. It is looking to increase the Zambia training for rural farmers in organic honey beeswax to The Body Shop for use in number of producers in order to meet production, and then purchases the honey cosmetic products and to major British product demand. Leaders of NWBP from them. The producers are shareholders grocery stores. Beekeeping provides an have conducted courses for rural in the company and negotiate honey prices incentive for sustainable forest stewardship beekeepers in Guyana to share their to maximize their returns. In 1990, NWBP and an alternative to charcoal production. organic techniques. In addition, received the first-ever organic certification The average supplementary income to each NWBP has launched an organic for honey production in the world. They farmer is roughly enough for a household to poultry-rearing operation to provide maintain this certification today, through purchase a year's supply of soap. another source of income to the Source: UNDP 2004a the Soil Association in the UK. region's communities. Pred Nai In 1986 community members came Both the daily crab catches and daily A Mangrove Network has now Community Forest together to stop logging and shrimp incomes of Pred Nai villagers have doubled. developed, with other local villages farming in their mangrove swamp. This Shrimp, shellfish, and other fish are return- adopting Pred Nai's management Thailand decision followed the shrinking of the ing to the mangrove swamp, along with program. Pred Nai's leaders spread the mangrove from 48,000 ha to about birds and monkeys. The savings and loan lessons they have learned about 4,800 ha and the subsequent decline group initially established to fund the community management to this new in crab catches. Pred Nai villagers community's management costs now network and to the larger Community developed a management plan that manages a fund of over US$72,000, raised Coastal Resource Management prohibited large-scale shrimp farming, from its 60 members. Network. They have collaborated with replanted the mangrove forest, and outside fisheries experts, and their implemented crab and shellfish harvest efforts have been recognized by regulations and monitoring. Thailand's forestry and fisheries ministries. The community is now using these political connections to push for stricter regulations of trawlers Source: UNDP 2004b off the coastline. 18 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E TABLE 1.2 THE RESULTS OF ECOSYSTEM ENTERPRISE: SELECTED EXAMPLES (CONTINUED) Enterprise Background Results Scaling Gokulpura- In 1997, in drought-prone eastern As of 2005, per capita income among The benefits derived from the Goverdhanpura Rajasthan, the 1,900 residents of farmers had increased by 28 percent thanks project have spread beyond agricul- Integrated Gokulpura and Goverdhanpura began to new agricultural techniques and inputs. ture, increasing literacy and spending Watershed practicing integrated watershed manage- Migration from the region--both seasonal on health care within the communities. Management ment to increase agricultural productivity. and permanent--had fallen noticeably. The Gokulpura and Goverdhanpura's Their work, supported by a consortium of communities have become visibly more record is just one of many similar India NGOs, donors, and government agencies, resilient in the face of drought, both through successes within the Indian Govern- included: creating systems for rainwater increased food, fodder, and fuel availability ment's countrywide effort to promote harvesting, groundwater recharge, and and through higher groundwater levels that sustainable agriculture and poverty traditional irrigation; diversifying crops recharge local wells. Cut flowers and new reduction through integrated water- and improving agricultural and livestock- high-value crops like fennel and green peas shed management. rearing techniques; and implementing an bring in additional income for farmers at afforestation program. local markets. Crop productivity and Source: ICRISAT 2007 livestock populations have increased. Finca Esperanza This 91 ha private forest reserve includes A cooperative of 32 local farmers works on Eight small tourism-related businesses Verde (FEV) a sustainable coffee farm and eco-lodge. the farm, producing certified shade-grown, have developed as a result of FEV's It formed in 1998 through a partnership organic, Fair-Trade coffee. In 2006, each attraction. Ten percent of revenues Nicaragua between a US-based NGO and community farmer received US$2,500 from over 10 tons from both coffee production and members in San Ramón, Nicaragua. The of coffee sold. In the same year, the tourism tourism is reinvested in community NGO helps to develop the coffee and enterprise generated $100,000 for FEV staff development each year, and this has ecotourism businesses, working with local and the local entrepreneurs supporting the funded a school and a drinking water families to provide guest accommoda- venture. The tourism venture has won much system so far. In addition, FEV has tions; giving grants to local artists, international recognition, including being shared its model with others, hosting a musicians, and farmers; and paying for named Best Eco-lodge in Nicaragua in 2004. delegation from the United Nations as certification of the coffee farm. The NGO Smithsonian magazine also awarded it the well as groups who want to start has also linked the coffee business with a Sustainable Tourism Award for Conservation similar projects. Source: UNDP 2006b; US retailer that now buys all of the coffee in the same year. FEV 2008 produced on the farm. Comunidad de This indigenous community of Matańo Migration from the Agua Blanca community Agua Blanca leaders are now Agua Blanca people is located within the 60,000-ha has fallen as community members have hosting exchanges with surrounding Machililla National Park on the southern found new sources of income from tourism, indigenous communities to share their Ecuador coast of Ecuador. Since the late 1990s, from employment as park rangers, and successes and ideas about agricultural the community has established an from selling crafts and supplies to tourists. techniques, forest management, and ecotourism business based on lodging These economic opportunities have helped tourism in the region. tourists with local families. Guided tours the Matańo to maintain their culture and are offered through the area's unique mix retain their ancestral land. A network of of dry forest and cloud forest. In addition, local and international NGOs has extended the area boasts warm sulfur springs, technical support to the community in accessible archeological sites, and a agricultural and water harvesting museum of Matańo artifacts found nearby. techniques. As a result, the community established a communal garden that all Source: Ventura 2006; PIP 2007 community members work in and take from. 19 BOX 1.3 THE RURAL POVERTY IMPERATIVE REDUCING POVERTY REMAINS A MORAL AND ECONOMIC Recent Poverty Trends imperative for most nations. While there has been progress over the last two decades in reducing the number of poor families, Worldwide, the number of people living on less than $1 per poverty persists on a massive scale, with nearly half of the day--the international standard for extreme poverty--has population of the developing world living on less than $2 per dropped from 1.25 billion in 1990 to 986 million in 2004 (the day. In addition to the lack of income associated with poverty, latest year for which data are available). This represents signif- the poor experience a range of other deficits in nutrition, icant progress, given the population growth that occurred health, education, and opportunity, emphasizing poverty's during this period. In 1990, 29 percent of the global popula- multidimensional nature. Social exclusion and political power- tion lived below the $1 per day level; in 2004, that figure had lessness add to the burden. dropped to 18 percent. The number of people living on less than $2 per day--another recognized poverty marker--has also For these reasons, poverty continues to be one of the most dropped; nonetheless, some 2.6 billion people still struggle to formidable development challenges that nations face. To help make do at this marginal income level (World Bank 2007a:63, meet this challenge, the Millennium Development Goals Table 2.6a). (MDGs)--adopted by the international community in 2000-- establish quantitative and time-bound targets to reach Although the global drop in poverty has been significant, a development milestones in income, education, health, and more detailed breakdown of poverty trends shows that poverty empowerment. At the top of the list of MDGs is the goal to cut reduction has been highly uneven across regions. Much of the in half the number of people living in extreme poverty by 2015 recent progress on poverty comes from China's extraordinary (starting from 1990 levels). success in the last several decades in lowering its poverty rate. In 1981, 63 percent of China's population--more than 600 million people--lived on less than $1 per day; by 2004, some 500 million fewer Chinese suffered $1 per day poverty (adjusted for inflation) and the nation's rate of extreme poverty THE DIMENSIONS OF WELL-BEING had fallen to just below 10 percent, aided by years of double- digit economic growth (World Bank 2007a:63, Table 2.6a; Poverty translates into the lack of some or all of the aspects of human World Bank 2007b:40­41). (See Figure on page 19.) well-being. These aspects begin with sufficient income to obtain adequate food and shelter. But other dimensions of well-being are impor- In contrast, other regions have seen more modest progress. In tant as well. These include good health, security, social acceptance, sub-Saharan Africa, where nearly a third of all poor people live, access to opportunity, and freedom of choice. recent economic growth has helped reduce the share of people in extreme poverty by 4 percent from 1999 to 2004. Nonetheless, ELEMENTS OF WELL-BEING population growth has suppressed these gains and kept the number of people suffering $1 per day poverty at nearly 300 Physical and Financial Necessities I Adequate Livelihood I million--more than 40 percent of the region's population. Sufficient Nutritious Food I Similarly, extreme poverty fell 4 percent in South Asia from 1999 Shelter I to 2004, but the number of people living on less than $1 per day Access to Goods still exceeds 460 million--32 percent of the region's population Health I Strength and Fitness for Activity I (World Bank 2007a:63, Table 2.6a; World Bank 2007b:40­41). Feeling Well I Access to Clean Air and Water Given these trends, the prognosis is mixed for meeting the Security I Personal Safety I Millennium Development Goal of halving the incidence of Secure Resource Access I extreme poverty from 1990 levels by 2015. At the global level, Security from Disasters this goal is still within reach: extreme poverty is expected to Good Social Relations I Social Cohesion I continue declining to around 12 percent of the global popula- Mutual Respect I tion in 2015. But many countries will not come close to meeting Ability to Help Others the MDG goal, particularly in Africa. One worrying trend is that Freedom of Choice and Action I Opportunity to Achieve severe and persistent poverty is increasingly concentrated in so- What an Individual Values called fragile states--countries that suffer from poor governance Source: MA 2005:vi and weak institutions, are often enmeshed in civil conflict, and have little capacity to address poverty. In these states, poverty levels may actually increase to over 50 percent by 2015, as their 20 PERCENTAGE OF POPULATION LIVING UNDER $2 PER DAY IN 2004 Percentage of population living under $2/day <15% 15-35% 35-75% >75% No data Source: World Bank 2008 citizens are shut out of the promising POPULATION LIVING ON LESS THAN $1 PER DAY, 1981-2004 economic trends in other nations (World Bank 2007b:2­4, 40; World Bank 2007a:4). 60 Sub-Saharan Africa Even where progress against income poverty South Asia 50 has been made, deficits in other aspects of East Asia & Pacific poverty persist. For example, no regions are Latin America on track to reach the Millennium Develop- 40 & Caribbean ment Goal for reducing child mortality. One Middle East third of all children in developing countries 30 & North Africa remain underweight or stunted from poor nutrition. And half of the residents of devel- Europe & 20 Central Asia oping countries still lack adequate sanitation noitalupoplatotfotnecreP (World Bank 2007b:1). Even those countries 10 on track to meet their MDG targets will face the challenge of maintaining their current 0 economic growth and progressive poverty 1980 1985 1990 1995 2000 2005 policies beyond 2015 so that they continue Source: World Bank 2007 to lower their national poverty rates. 21 BOX 1.3 THE RURAL POVERTY IMPERATIVE Poverty Is Predominantly Rural decades more. Forecasts for 2030, for example, predict that 60 percent of all poor people will still live in the countryside, Although the world's population is steadily urbanizing, the great even though the majority of people in the developing world will majority of the world's poor still live in rural areas. New live in cities at that point (Ravallion et al. 2007a:25­26; Raval- research on the breakdown between rural and urban poverty lion et al. 2007b:2). shows that 75 percent of those who live on less than $1 per day in developing nations live in the countryside--a higher estimate The persistence of poverty as a rural phenomenon emphasizes than many observers expected, given the continued growth of the importance of effective rural development models for urban slums. However, there are considerable regional differ- scaling up poverty reduction. It also strengthens the case for ences in the urban-rural poverty split. In East Asia, more than ecosystem management as a necessary element of such devel- 90 percent of the poor live in rural areas. Poverty in China, for opment, since natural ecosystems are one of the principal example, is overwhelmingly rural and is becoming more so. In assets of rural areas--an asset the poor already use extensively. Latin America and the Caribbean, on the other hand, poverty is more urban in nature, with only 40 percent of the poor residing in the countryside. The rural poor make up 70 percent of all those surviving on $1 per day in sub-Saharan Africa and 75 percent in South Asia (Ravallion et al. 2007a:38, Table 3; The Depth of Poverty is Important Ravallion et al. 2007b:1­2). Simply knowing the number of people who fall below the $1 or New research also reveals how much of the total rural popula- $2 per day poverty line in an area is not sufficient to under- tion lives on less than $1 per day. At a global level, 30 percent stand the real depth or severity of poverty there. For that it is of all rural residents live in $1 per day poverty, and 70 percent necessary to probe how far below the poverty line people fall. live on less than $2 per day. By comparison, some 13 percent One way to do this is to calculate the poverty gap--the mean of urban residents live on $1 per day and 34 percent on $2 per shortfall from the poverty line of an area's population. The day (Ravallion et al. 2007a:38­39, Tables 3 and 4; Ravallion poverty gap captures not only the proportion of people who are et al. 2007b:1). poor but also how poor they are, and it is thus an important consideration when designing poverty reduction strategies or While poverty is still overwhelmingly rural, the balance is slowly measuring their effectiveness. Where the poverty gap is large, shifting as urbanization progresses. In other words, poverty is escaping poverty is all the more difficult, since families must gradually becoming more urban, in many cases fueled by an make substantial income gains just to reach the poverty line. influx of poor immigrants from rural areas seeking jobs in the On the other hand, reducing the poverty gap through even small city. Nonetheless, poverty will remain predominantly rural for increases in environmental income or wage labor may help RURAL SHARE OF POVERTY Rural Share of Poverty, 1993 and 2002 Rural Share of Global Poverty 2002 noitalupop 100% 1993 2002 80% Urban, dehsirevop saeralarur 24% 60% ni 40% mifotnecreP gnivil Rural, 76% 20% 0% East Asia & Middle East South Sub- Europe & Latin Pacific & North Asia Saharan Central America & Africa Africa Asia Caribbean Source: Ravallion et. al. 2007: 38 22 relieve some of the symptoms of poverty, even though families HOW POOR IS POOR? remain below the poverty line. Since 1990, poverty analysts have been using the $1 per day standard The poverty gap in rural areas can vary markedly from village as the international poverty line for extreme poverty. More precisely, to village, district to district, or province to province. For the extreme poverty standard is set at $1.08, figured in 1993 example, while the average poverty gap in Kenya (calculated "purchasing power parity" (PPP) dollars, which allows comparison of from the national rural poverty line of 59 cents per day) is poverty rates across countries and across years. However, most people 19 percent, some districts in Nyanza and Coast Provinces have in rural areas who live in extreme poverty actually survive on signifi- poverty gaps of 30 percent. These districts have not only more cantly less than $1.08 per day. Recent calculations by the World Bank people in poverty but a deeper level of poverty, with family show that the mean income of those living below the poverty line in income that is further below the poverty line. In contrast, in rural areas throughout the world is just 77 cents. The difference many locations in Central and Nairobi Province, the poverty between this mean income and the poverty line--31 cents--indicates gap is less than 10 percent, and poverty is not as severe (World that rural poverty is not only extensive but deep. Resources Institute et al. 2007:13,18­19). Looking across all of sub-Saharan Africa, the large size of the poverty gap-- 23 percent--gives a good picture of the dimensions of the continent's poverty problem and the challenge of attaining the GLOBAL AVERAGE INCOME OF THE RURAL POOR* poverty MDG (Ravallion et al. 2007a:42, Table 8). $1.20 International Poverty Line ($1.08 per day) $1.00 Two Imperatives: $0.80 More Growth and Greater Equity Large-scale poverty reduction requires sustained economic $0.40 growth. A case in point is China, where particularly rapid growth atipacrepemocniyliaD has been paired with steep declines in poverty numbers. Even )sralodlanoitanretni3991ni( $0.76 $0.75 $0.76 $0.77 $0.60 $0.20 outside of China, analysis suggests that recent declines in global poverty are largely the product of a resumption of $0.00 economic growth in many low- and middle-income countries. In 1993 1996 1999 2002 a recent analysis of 19 low-income countries, analysts found *The rural poor are defined as populations living in rural that a 1-percent rise in gross domestic product per capita--a areas with per capita incomes of less than $1.08 per day standard measure of economic growth--was associated with a Source: Ravallion et. al. 2007: 38, 42 1.3-percent fall in the rate of extreme poverty in the countries studied (World Bank 2007b:42). The need to encourage economic growth with equity is particu- But growth is not the only factor behind poverty reduction. The larly acute in rural areas, where most poverty is centered. distribution of income within a nation--its level of income Natural resources have been a traditional source of economic equality--is also important in determining whether the benefits activity in these areas, but the kinds of large-scale forestry, of economic growth reach the poor or are captured by the well- mining, fishing, and agricultural development that have been off. Where income inequality is high, the pace of poverty common there have often depleted the resource base. This has reduction slows. Inequality results in deficits in many of the not only run counter to the immediate interests of the rural factors that determine how economic benefits are shared, such poor, who depend heavily on nature, it has harmed the long- as education, political voice, and access to information, term economic health of nations. In sub-Saharan Africa, for markets, and technology. According to the World Bank, rising example, net creation of wealth has effectively been zero over inequality over the 1990s offset some of the poverty reduction the last three decades, as economic gains have been offset by from economic gains in many countries. In a recent study of the liquidation of the region's natural resource assets (World trends in growth and inequality, the Bank found that inequality Bank 2007b:55). Community-based efforts to manage natural had increased over the last two decades in 46 of the 59 resources offer one route to local enterprises that support countries studied (World Bank 2007a:4; World Bank 2007c:3). sustainable rural growth that both adds to local incomes and builds net wealth at the national level. 23 W O R L D R E S O U R C E S 2 0 0 8 The Importance of Local Government emerged to deal with natural resource issues even when local At the heart of our model of nature-based enterprise is the need governments are present. In some cases, these groups evolve for local institutions that can competently manage ecosystem from customary institutions such as elders councils or tribal assets in a way that enfranchises the poor and distributes the authorities, but in many cases they are deliberately created by benefits and costs of ecosystem management fairly. Ideally, these local stakeholders or by outside influences such as the central institutions would be associated with local levels of government government or international funders. When these groups are that are based on principles of democratic representation, such empowered with legally recognized resource management as elected village councils. Representation is a critical piece of powers, they can directly or indirectly compete with the author- an enterprise model for the poor; it is the formal mechanism to ity of local governments, which is already weak in many cases institutionalize inclusion and citizen participation in local (Ribot et al. 2008:8). decisions on access and exploitation of natural resources, as well The question of "institutional choice"--which local institu- as matters such as business taxes and licenses. Thus when local tion receives legitimacy and legal empowerment to manage governments exercise representation effectively, they become ecosystems--is a challenge for those wishing to foster poor- critical pieces of the infrastructure of scaling up. By definition, friendly enterprises, and it has been so for over a decade. On local governments are already "scaled up" geographically and the one hand, transferring substantial powers to resource user present a vehicle for spreading citizen inclusion laterally over committees can undermine the authority of representative space and time. In other words, local governments can represent government, creating a separate pole of authority outside the an efficient mechanism for institutional scaling (Ribot 2008). traditional governance structure. While such user committees may (See Box 1.2 on page 10.) strive to be inclusive, they are not part of the formal democratic However, local governments have struggled both with their mechanisms of government built on the concept of representa- ability to represent the poor and their ability to manage local tion. Under some conditions, they may favor elite capture and natural resources in a way that enables enterprise. For this actually harm the interests of the poor. On the other hand, they reason, other local institutions such as forest user groups, grazing often offer a much greater opportunity for inclusion and participa- societies, irrigation groups, and watershed committees have tion in actual resource decisions than local government processes, which can be unwieldy and inaccessible to the poor (Ribot et al. 2008:8). In any case, these alternative resource institutions have grown in stature and number and are unlikely to die away soon. They are part of the process of community-driven development as currently practiced. The challenge, then, is to integrate the functioning of these alternative resource institutions into the processes of local government without handicapping their ability to apply their specialized skills and to motivate citizens to cooperatively manage local resources. There is some precedent to believe that this can be done, although the best routes to accomplish this are by no means well articulated. In the Indian state of Karnataka, for example, communities participating in a World Bank-funded program to revitalize village reservoirs (tanks) formed Tank User Groups to determine how to manage the village tanks for maximum benefit. Villagers were offered a choice as to how their user group would formally relate to the local government. The choices ranged from having members of the local government sit on the Tank User Groups to having the Tank User Group be designated as a legal subcommittee of the local government. The point was to give local government an official role in the decision-making process without disem- powering tank users (World Bank 2002:46­49). Similarly, when the government of Bangladesh transferred authority to manage inland fisheries to communities participat- ing in a special pilot project to rejuvenate depleted fish stocks, it established local Resource Management Organizations composed of all users of the nearby water bodies. But it gave local govern- ments the power to oversee and approve the fishery management plans that the Resource Management Organizations submitted 24 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E as part of the project. (See the Chapter 3 case Fisheries for the One of the most significant findings of the World Bank's analysis Future for more details.) The point here is that addressing of global wealth is that the bulk of the world's wealth exists not as questions of institutional choice so that local government and natural capital or physical capital (such as buildings, roads, or user groups do not work at cross purposes is a critical part of the goods) but as human, social, and institutional capital--the intangible process of creating governance conditions where the poor can forms of wealth represented by human knowledge and capacity, pursue nature-based enterprise. social networks, and the quality of human institutions such as the rule of law. In developing countries this "intangible capital" accounts for nearly 60 percent of total wealth, but in high-income countries the proportion is far higher--about 80 percent (See Figure 1.4). To a Scaling Up Requires Social Capital great extent, the key advantages of rich countries are the skills of their labor force, the breadth of their commercial and social In considering the challenge of scaling up environmental networks, and the quality of their institutions--these are essential income, it may be useful to think in terms of natural, human, ingredients behind their high level of economic activity (World Bank and social capital. 2006b:xiv, 4). For developing countries, making the most of their Nature accounts for much of the wealth of developing natural resource wealth will require overcoming their current deficits nations, particularly the poorest countries. In its 2006 report in these forms of intangible capital. Where is the Wealth of Nations?, the World Bank found that This insight is relevant to how communities pursue the goal natural capital--a nation's stock of natural resources and of managing ecosystems for sustainable income. The major biological systems--makes up more than a quarter of the total challenge in scaling up environmental income for the poor is not wealth in low-income countries (World Bank 2006b:20­21). identifying opportunities for better ecosystem management or That comes as no surprise when viewing rural economies in the developing better management strategies, although these are developing world, which are highly dependent on natural very important. The greatest challenge is developing the capaci- resource income, both from small-scale farming, fishing, and ties to take advantage of these opportunities, the local forest products and from commercial-scale logging, mining, institutions to govern resource management efficiently and fairly, agribusiness, and fishing fleets. and social networks that are open to the poor. At the village level, The implication of this dependence is that careful manage- a commitment to scaling up is a commitment to deliberately ment of ecosystem resources can be a key contributor to developing human and social capital--to enabling the capacities successful development, particularly in the poorest countries and willingness for joint resource management. (World Bank 2006b:vii). Indeed, the premise of World Resources The capacity for collective action or joint enterprise-- 2005 was that ecosystems are reservoirs of natural capital that cooperative behavior that is mutually beneficial--is one of the the poor can tap as a renewable source of income. Giving the defining features of social capital. More broadly, social capital is poor access to this asset base places this natural capital at the understood to encompass the social networks and relationships center of rural development and poverty reduction rather than that pervade societies and the shared values and norms that at its fringes, as other development models that ignore the underlie them. Ideas on the importance of social capital have environment-poverty link have done. been circulating for some time now, and it is generally accepted But converting the natural capital of ecosystems to sustainable that the density of social networks and institutions can greatly wealth for the poor requires other forms of capital for its success. affect the efficiency and sustainability of development, including economic growth and poverty reduction (Serageldin and Grootaert 1999:45­47; Grootaert and van Bastelaer 2001:1). FIGURE 1.4 DISTRIBUTION OF TOTAL WEALTH BY Also important is the fact that the formation of social capital can INCOME GROUP, 2000 be linked to improvement in natural capital, through the power 100% of collective action (Pretty and Ward 2001:212­214). Intangible capital Research in the last decade has made it clear that invest- Produced capital 80% ments in developing social capital may be particularly important Natural capital to the poor, with major impacts on their income and welfare. 60% The existence of social capital has been found to increase agricultural production and improve the management of natural 40% resources, as well as bringing poor households greater access to water, sanitation, credit, and education (Grootaert and van 20% Bastelaer 2001:xi). Poor people's organizations, such as saving and credit groups, local political advocacy groups, resource user 0% groups, and federations that link such groups into a broader web Low-income Middle-income High-income countries countries countries of support, are a form of structural social capital with proven Source: World Bank 2006b:4 benefits (Bebbington and Carroll 2000:xiii, 1­2). 25 The Lessons of Community-Driven Development Development institutions such as the World Bank and the UN Development Programme have increasingly turned to community-driven development as the shortcomings of top- down development projects have become clear. A 2005 World Bank study showed that projects that include a community- driven component have grown from 2 percent of the World Bank project portfolio in 1989 to 25 percent in 2003 (World Bank 2005:ix). The Bank's interest stems from years of research and experience indicating that community empowerment has an important role to play in encouraging pro-poor growth, increas- ing the effectiveness of development projects, and promoting poverty reduction. The lesson is that empowering communities to participate in their own development not only respects their inherent rights, it leads to more successful outcomes (Narayan 2002:1­11). In addition to empowering communities through participa- tory processes, CDD--at least as practiced by the World Bank--has four other major components. The first is empowering local governments by granting them significant fiscal powers over development project budgets. A second component is reformulat- ing the role of the central government so that decentralization does not lead to abandoning communities entirely to their own resources but instead joining with them in co-management or joint ventures, drawing on the strengths of each level of government. Improving "downward accountability" is another important dimension of CDD, meaning that service providers and local and Investing in the social capital of the poor is particularly central governments must be accountable to local communities for important for ecosystem management. Managing the common their development decisions. A final vital CDD component is pool resources that are often at issue requires community capacity development--enabling local organizations and citizens approaches--bolstered by the strengths of poor people's groups to improve their skills and problem-solving abilities through train- and social networks. The empowerment, connectedness, and ing, facilitation, and hands-on experience (Binswanger and commercial outreach that these groups bring are crucial offsets Nguyen 2004:9­10). to the marginalization that plagues the rural poor and isolates While there is growing acceptance of the basic tenets of their business ventures. CDD, applying these tenets successfully through normal devel- opment channels has achieved mixed results so far, particularly in rural areas. Outcome ratings for World Bank­funded CDD projects undertaken from 1994 to 2003 were, on average, better The Changing Development Paradigm than those for traditional top-down projects, demonstrating the value of the approach and its ability to be applied at a significant The foundations of a scalable approach to environmental scale. In Benin, for example, community members in 229 income have been long in the making. Since the late 1980s there villages used a Bank-supported participatory planning approach has been a growing realization that poor families and rural to identify priority problems, prepare action plans, take part in communities must be the driving force in resource management literacy and technical training courses, and successfully carry out if this management is to truly benefit them. The move to decen- nearly 300 infrastructure projects as part of the Benin Borgou tralize natural resource authorities and embrace local Pilot Project (World Bank 2005:xiii,17). In Senegal, an independ- participation is just one aspect of a shift in development practice ent review of the country's National Rural Infrastructures toward "bottom-up" approaches. These community-based Program--which adopts a community-driven approach to build- approaches--often called community-driven development--see ing schools, health clinics, access roads, and water and sanitation local households and communities as the proper origin and infrastructure--found that the program had achieved significant center of development, not simply as beneficiaries of develop- results in extending access to clean water and health services to ment schemes dictated from above (Shah 2006:1). rural villagers (Arcand and Bassole 2007:1). 26 S C A L I N G U P E C O S Y S T E M E N T E R P R I S E But the Bank's CDD projects are not uniformly successful, comprehensive program of developing skills and the confi- nor have they met all their project goals. They tend to be more dence to use them. Most of all, it must catalyze and build on effective in delivering local infrastructure--such as new schools, a process of social engagement within the community that roads, or other physical improvements--than in building the gradually cultures social capital sufficient to allow different capacity of communities to use these facilities to reach their local stakeholders to work together productively over years development goals. In addition, many CDD projects have not rather than months, so that poor families become part of the been very effective at reaching the poor, despite efforts to target working model of community action (World Bank 2005:22). poor families. Some of this stems from structural factors, such as the fact that many benefits are tied to owning land and thus favor wealthier households with larger land holdings. But some of it derives from a lack of attention to the power dynamics within The Resilience Dividend communities that favor elite capture and make it hard for the poor to participate effectively in community processes (World Resilience is the capacity to thrive in the face of challenge. Bank 2005:xiii­xiv; 19­23). Communities that are successful in using a community-driven Attempts to target projects to geographic regions that have model to manage their ecosystem assets and build them into high poverty levels, while useful, do nothing to develop a enterprises can experience a marked increase in their resilience. community process that involves the poor and builds their capac- With increased resilience, these communities are better prepared ity to participate as equal beneficiaries. At the same time, to survive economic downturns, environmental changes, and participatory processes are fraught with difficulties for tradition- social disruptions--challenges whose impacts are often most ally excluded groups such as women and the poor. In the Benin severe where poverty is highest. Borgou Project, traditional village leaders dominated the process of deciding which infrastructure project the village would under- take, and they only later sought the community's approval of Defining Resilience their decision--an all-too common form of "participation" Resilience is usually defined as the capacity of a system to toler- (World Bank 2005:126, 20). ate shocks or disturbances and recover. In human systems, this is closely linked to the adaptive capacity of the system--the ability Building Capacity Takes Time of individuals and the group to adapt to changing conditions through learning, planning, or reorganization. In the context of According to the Bank's own evaluation, the difficulty that rural communities, we can speak of three forms or dimensions of many of its CDD projects have encountered in capacity-build- resilience: ecological, social, and economic. ing can be traced to the lack of a long-term commitment to systematic and comprehensive capacity-building programs. I Ecological resilience is the level of disturbance that an ecosys- The typical project cycle for a modest community project--a tem can absorb without crossing a threshold to a different school, for example--is just 1 year. This may be enough time ecosystem structure or state (Walker et al. 2006:14; Folke et al. for a community to assess its needs, generate demand, and 2002:13). The disturbance may be natural, like a storm, or actually construct the school, but it is not enough time for human-caused, like deforestation, pollution, or climate change. residents to develop the social capacity to incorporate the The new ecosystem structure that results after crossing a school into the life of the community or the financial and threshold may have lower productivity or may produce differ- managerial skills to run it effectively. Those capacities require a longer period of gestation. Indeed, the Bank has found that its CDD projects were most successful when they included long- term capacity-building programs or when they took advantage of capacity that had already been built over years of commu- nity participation in development projects. For example, one of the factors in the success of Pakistan's Aga Khan Rural Support Programme is that the support of the World Bank and many other funders has stretched over 20 years, allowing the program to capitalize on participatory processes built up over that time (World Bank 2005:19, 21). The lessons of the World Bank's experience with commu- nity-driven development show that while putting communities in the "driver's seat" of local development can bring enormous benefits, it requires a deep commitment to eliciting or channeling community demand, backed by a long-term and 27 W O R L D R E S O U R C E S 2 0 0 8 ent things that are not as desirable to those remaining in the the capacity of the community to move beyond forest-related ecosystem. Overfishing, forest clearance, and overgrazing are livelihoods. Reduced economic resilience will, in turn, affect the typical disturbances that can challenge ecosystems and community's social resilience if it leads to a high proportion of ultimately overwhelm their ability to recover, forcing them over out-migration or causes dissention due to increased competition the threshold to a new and, from the standpoint of nature- for the area's remaining resources or jobs (Adger 2000:353­357). based livelihoods, less desirable state. But this strong coupling between ecosystem and society can I also create a positive cycle. When communities manage ecosys- Social resilience is the ability to face internal or external crises tems for long-term productivity, they increase the resilience of and effectively resolve them. In the best cases it may allow these ecosystems, and this stabilizes the ecosystems' ability to groups to not simply resolve crises but also learn from and be continue to support economic activities. At the same time, the strengthened by them (Brenson-Lazan 2003:1). It implies an act of cooperatively managing the resource builds the commu- ability to cohere as a community and to solve problems together nity's social capacity, its set of business skills, and its connection in spite of differences within the community. Social capital and with outside markets and sources of financial and technical a shared sense of identity and common purpose support this support. These sum up to a substantial resilience dividend that aspect of resilience. consists of different layers of skills, support mechanisms, and I Economic resilience is the ability to recover from adverse biological potential that can allow communities to absorb change economic conditions or economic shocks (Briguglio et al. and reorganize in new and productive ways rather than disinte- 2005:6­7). It encompasses having a variety of economic options grate (Glavovic 2005). available if a particular economic activity fails or being able to The resilience of the social-ecological system can be create more options if necessary. It benefits from being able to increased in a number of ways. For ecosystems, sound manage- call on a wide variety of skill sets and contacts. ment techniques are critical, including harvesting, tillage, and water use practices. For example, contour tilling, agroforestry, Rural environments are subject to increasing challenges as organic agriculture, and the use of hedges or vegetative buffer economic globalization, social instability, and large-scale strips can all help stabilize soil structure, reducing erosion and environmental changes disrupt traditional rural social patterns increasing soil organic matter. This increases fertility and raises and livelihoods. Turning the natural capital available in ecosys- the moisture holding capacity of the soil. In turn, this decreases tems into the human, social, and institutional capital needed for vulnerability to high-intensity rainfall, floods, and droughts (FAO rural development to succeed generates all three forms of 2007b:11). Likewise, water harvesting through the use of contour resilience. The concept of resilience started to take hold in tilling and check dams can raise water tables, making agriculture development circles in the late 1990s, when it became clear that on marginal lands less volatile (FAO 2007b:12). In forests, retain- climate change posed a serious threat to smallholder agriculture ing plant diversity can stabilize the ecosystem, making it less in the developing world and that the ability to adapt to it would vulnerable to extreme weather events and pest damage. These are be crucial to the survival of rural communities (Füssel precisely the kinds of tactics that communities engaged in nature- 2007:155). This adaptability represents resilience writ large, as based enterprises use to increase and sustain production. we use the term here. Community-driven enterprises also build social resilience But climate change is only one of the high-profile challenges because the cooperation and communication skills they demand that rural, resource-dependent communities face. Rapid popula- build the group's functional social capital. For example, new tion growth, out-migration from lack of opportunity, the evidence from Nepal, where civil war disrupted village life and disruption of traditional systems of land tenure, depressed and affected forest use and agriculture for over a decade, shows that volatile prices for agricultural commodities, and armed conflict participation in Community Forest User Groups can provide a are all serious sources of vulnerability in the modern countryside. source of stability during violent conflict (Glenzer 2008). The Some of these challenges may occur rapidly; others evolve slowly, trust and common purpose developed by managing, harvesting, building in intensity over time. In either case, developing greater and marketing forest products together can help bridge potential resilience can help manage this vulnerability. divides within the community and creates an atmosphere where future cooperation is more likely. Similarly, research in Rwanda Building Resilience shows that the participation of smallholder coffee producers in Ecological, social, and economic resilience are all interrelated, newly formed cooperatives has provided a shared sense of creating a strongly coupled system (Glavovic 2005). Depleting or endeavor and an unexpected opportunity for reconciliation of enhancing any of the three dimensions of resilience will affect some Tutsi and Hutu farmers in the aftermath of the nation's the other dimensions. For example, exhausting the forest genocide (Boudreaux 2007:28­31). resources in an area through overharvesting--reducing its Successful community-based enterprises also depend ecological resilience--may leave the area with fewer economic heavily on their learning skills, and learning is central to options, and therefore less economic resilience, particularly if the resilience and adaptability over time. Indeed, social resilience is capital gained from the harvest has not been invested in building not about avoiding change but about gaining the tools to survive 28 and reorganize when change is inevitable--in other words, have persisted in their efforts for over a decade, working learning to adapt (Folke et al. 2002:7). The ability to learn from through occasional disagreements and business misjudgments errors and experiments is a key ingredient of adaptability and and mastering their business through trial and error--with the thus a key to greater resilience (Walker et al. 2006:15, 20­21). support of donors and the government. The result has been the Resilience experts say that preventing a system under stress establishment of several viable commercial timber operations from crossing a threshold--in other words, from collapsing to a that have increased economic options in these communities less desirable state--requires innovation and skills, agreement and yielded valuable--and transferable--business experience. within the group on what to do, and financial options. These are The forest ecosystem itself is no longer in danger of imminent the kinds of resources that communities build when they under- decline because of the actions taken to foster these community take community-based enterprises. They gain the ability to work forest enterprises. (See Chapter 3: Green Livelihoods: Commu- systematically through trial and error, to innovate in order to nity Forest Enterprises in Guatemala.) solve problems, to work together and come to negotiated agree- Ultimately, communities that undertake joint resource ments. At the same time, their business and technical skills give management, systematically build their social cohesion and them options to modify their businesses or start new ventures business capacities, and expand their learning and commercial (Walker et al. 2006:19). networks are greatly increasing their ability to "manage for When communities in Guatemala's Petén region were first resilience." This gives them a much better chance of sustaining given forest concessions, they confronted widespread illegal their success in a world where unforeseen challenges are likely forest use that was rapidly degrading the concessions' commer- (Folke et al. 2002:10). Moreover, scaling up these kinds of cial resources and the ecosystem's biological stability. They had nature-based enterprises offers a clear route to building this little experience with community action or business develop- resilience on a larger district, regional, or national level. Scaling ment. But the financial and social incentives were strong for up resilience in this manner is a recipe for more vital and joint resource management and were well understood in the sustainable rural development. communities involved. As a consequence, these communities 29 UPDATE: SCALING UP NAMIBIA'S COMMUNITY CONSERVANCIES T HE LAST EDITION OF WORLD RESOURCES ANGOLA highlighted Namibia's Communal Conservancy Program as Oshakati Katima Mulilo a successful model of community-based natural resource Rundu management with a growing record for poverty reduction. The program empowered rural communities with unprecedented management and use rights over wildlife, creating new incen- tives for communities to protect this valuable resource and N A M I B I A develop economic opportunities in the tourism and trophy hunting industries. Windhoek BOTSWANA Swakopmund Walvis Bay Rehoboth Since its genesis in 1996, the Namibian conservancy program has achieved considerable scale. After a decade of rapid growth, the program has expanded to 50 registered conservancies in 2007, an increase of nearly 20 in the last 3 years alone. Conser- vancies now cover nearly 11.9 million ha--over 14 percent of the Protected areas country's area--and benefit more than 230,000 rural Namibians. State protected areas Many more communities are still in the process of formally estab- Conservancies lishing conservancies (WWF et al. 2007:ii). established before 2003 Conservancies established after 2003 SOUTH AFRICA At the same time, there has been a marked increase in the numbers of wildlife in the conservancies after a decades-long trend of decline. In conservancies in the northwest, for warthog, and buffalo. These rights are not unlimited, however; example, elephant numbers more than doubled from 1982 to for example, the government still determines the overall culling 2000 and populations of oryx, springbok, and mountain zebra rate and establishes quotas for protected game used for trophy increased 10-fold. This recovery is the result of a decrease in hunting (WRI et al. 2005:115; Seitz 2008; Jones and illegal hunting and poaching and reflects the economic value Mosimane 2007:11). that conservancy members now place on healthy wildlife populations--a direct link between wildlife and economic Conservancies benefit from a variety of income-generating development (NACSO 2006:25; Seitz 2008). activities, including entering into contracts with large tourism companies, selling hunting concessions, managing small In this update we reexamine Namibian conservancies using the campsite enterprises, selling wildlife to game ranchers, selling framework for scaling up introduced in this volume, concentrat- crafts, and distributing various in-kind benefits, such as ing on the development of local ownership, the building of local bushmeat. These activities have brought significant profits that, capacity for enterprise, and the creation of connections that due to safeguards in each conservancy's constitution, have nurture these enterprises. been reinvested into households and communities. Communi- ties add these opportunities to their existing land uses, such as farming and rearing livestock (WRI et al. 2005:117). Background: The Conservancy Structure The conservancy program has also brought employment to a region where few formal opportunities existed before. Most Communal conservancies are legally recognized common people were previously engaged in subsistence farming, with a property resource management institutions in Namibia's fortunate minority owning and selling livestock. For the poorest, communal lands. They were codified under Namibia's 1996 remittances were the only hope for additional income. Conservan- Nature Conservation Act, which granted rights to any rural cies have offered a chance to generate a new source of income community living in the communal lands to form a conservancy, and, in some cases, opportunities for social mobility in the provided they can establish a defined membership, define their country's impoverished communal areas (Boudreaux 2007:13). geographic boundaries, form a representative management committee, and draft a constitution that guarantees the equitable distribution of economic benefits. The use rights granted to conservancies include the rights to hunt, capture, cull, and sell "huntable game" such as kudu, oryx, springbok, 30 Creating Local Ownership Allowing Space for Local Decision-Making Conservancies themselves are effectively self-selecting units, so Core to the mission of the conservancy program has been giving they are built around communities' willingness to work collec- communities the local ownership needed to benefit from better tively. In many instances, they form when neighboring villages natural resource management. By design, communities have and tribal authorities--sometimes with little history of cooper- considerable control over the relatively nonprescriptive conser- ation--agree to trace a boundary around their shared borders vancy program. The program's flexibility has enabled it to mold and manage the wildlife within this area. Conservancies can to local conditions across Namibia's diverse communal areas also be championed by local groups like farmers' unions, trusts, (WRI et al. 2005:115). and veld committees, building on preexisting institutional arrangements--such as the Khoadi Hoas Conservancy, which Responding to Demand emerged from a strong association of local farmers known as the Grootberg Farmers' Union (WRI et al. 2005:115; Jones and Conservancies have succeeded as demand-driven institutions Mosimane 2007:10; Harring and Odendaal 2006:38). because they offer rural communities a vehicle to address unmet needs. People living within the communal areas have The flexibility of the conservancy program allows communities long suffered from a paucity of legal rights, particularly when to choose diverse strategies to manage wildlife and distribute Namibia was under South African apartheid rule, prior to benefits according to their particular needs, customs, and independence in 1990. This has undermined their access to norms. Conservancies can choose whether wildlife is to be sold, land and economic opportunity. Conservancies allow them a hunted, used for ceremonial purposes, or left alone. Similarly, chance to overcome these deficiencies by building political and conservancy revenues are spent according to local discretion-- economic institutions around proven tourism and wildlife provided that they are equitably distributed. Some industries (Harring and Odendaal 2006: 42­43). conservancies have opted to invest in social services to support schools, local farmers, and other groups in need (NACSO For example, the Nyae Nyae Conservancy in the northeastern part 2006:41­42). Even questions regarding who qualifies as a of the country grew out of the Ju/Wa Farmers Union from a demand conservancy member are resolved locally, resulting in arrange- for a viable economic alternative to farming. The farmers' union was ments varying from each person within the conservancy one of the first and most effective formal organizations of the San boundaries being considered a member to only the heads of people--one of the country's poorest and most marginalized minor- households as members. In other cases, membership is open to ity groups (Harring and Odendaal 2006:37, 38). Due in part to the any individual wishing to participate (NACSO 2006:16). region's dry and harsh climate, however, the union's agropastoral focus offered little respite to the San. Following the passage of the communal conservancy legislation, the union evolved into the Nyae Nyae Conservancy, taking advantage of considerable potential in the Participation tourism industry. This is now one of the best-performing conservan- Substantive participation of conservancy residents is central to cies, bringing in N$914,000 (US$135, 610) in 2006 (WWF et al. the design of the program, though it has succeeded to varying 2007:112). A portion of the money was allotted for conservancy degrees in practice. The usual challenges to participation exist, reinvestment, while some was used to make cash payouts to members, with each of the conservancy's 657 members receiving N$300 (US$44) (Jones and Mosimane 2007:26). While conservancies do offer substantive rights over wildlife within the conservancy boundaries, they do not confer full land rights over the conservancy area. Conservancy status does not affect other forms of land use such as livestock grazing or agriculture. In practical terms, this sometimes makes wildlife management more difficult if outsiders try to move their livestock onto land the conservancy has reserved for wildlife and tourism. In other words, conservancy status offers only a partial solution to the questions of resource and land tenure, since it does not confer the full right to exclude competing land uses. Nonetheless, it is a large step forward compared with the situation prior to 1996 (Boudreaux 2007:40­43). UPDATE: NAMIBIA including a limited culture of participation, a distrust concern- ing and auditing practices have resulted in missing funds and ing the benefits of participation, and gender and ethnic disgruntled members (NACSO 2006:38). In the Torra Conser- inequalities (NACSO 2006:38­39; Seitz 2008). In the rural vancy, for example, members complained that there was no context, these challenges are often exaggerated by physical clear process for recording the receipts of payouts. This led to barriers. The Khoadi Hoas Conservancy, for example, in the some instances of conflict, but also resulted in recommenda- western semiarid part of Namibia, relies upon a single pickup tions that a third party, like the Ministry of Environment and truck to ferry participants to meetings across the conservancy's Tourism, assume an advisory role to oversee the dispersion of many square kilometers (Jones and Mosimane 2007:22). payouts (Vaughan et al. 2003:19). But as the benefits to participation become clear, even within Overall, as the experience of conservancy management commit- the sparse rural terrain, communities have spoken up. Particu- tees ripens, the opportunities for participation are growing as larly when conservancy revenues accumulate, members tend to well. By 2006, some 80 percent of all conservancies were show more interest in payouts and processes (NACSO holding annual general meetings in which conservancy 2006:38,40). They begin to demand more accountability from members were able to participate in decision-making, reelect or the conservancy management committees and sometimes insist remove committee members, receive financial reports, and on changes to the constitution that place more power in the approve conservancy budgets. In three conservancies where the hands of members (Jones 2008). committees did not at first submit audited financial documents for approval, conservancy members insisted that they do so, Greater participation is a mechanism for members to apply marking a heightened expectation of accountability (NACSO pressure to conservancy committees, challenging them to 2006:38­39). deliver benefits fairly. One of the most contentious issues has been the handling of finances, mainly because poor bookkeep- NAMIBIAN ASSOCIATION OF CBNRM SUPPORT ORGANIZATIONS (NACSO) Organization Support Activities Legal Assistance Centre Supplies legal advice and advocacy on issues related to community-based natural resource management (CBNRM). Namibia Community-Based Serves as an umbrella organization and support provider for community-based tourism initiatives. Tourism Association Namibia Non-Governmental Represents a broad range of NGOs and community-based organizations. Organisation Forum Namibia Nature Foundation Provides assistance through grants, financial administration, technical support, fundraising, and monitoring Rössing Foundation and evaluation. Multi-disciplinary Research Centre Provides training and materials for CBNRM partners. Namibia Development Trust Centre of the University of Namibia provides research-related support. Centre for Research Information Provides assistance to established and emerging conservancies in southern Namibia. Action in Africa ­ Southern Africa Provides research, developmental assistance, and market linkages for natural plant products. Development and Consulting !NARA Conducts capacity training in participatory, democratic management for conservancy communities and institutions supporting communities. Desert Research Foundation Researches arid land management, conducts participatory learning projects with communities about sustainable of Namibia management, and engages policymakers to improve regulatory framework for sustainable development. Rural People's Institute Provides assistance to established and emerging conservancies in southern Kunene and Erongo regions. for Social Empowerment Integrated Rural Development A field-based organization working to support conservancy development in Kunene and Caprivi regions. and Nature Conservation Nyae Nyae Development Foundation Supports San communities in the Otjozondjupa region in the Nyae Nyae Conservancy. Ministry of Environment and Tourism MET is not a formal member, but attends meetings and participates in NACSO working groups. Provides a broad spectrum of support in terms of policy, wildlife monitoring and management, and publicity. Source: MET 2005; NEEN 2004a,b,c; Weaver 2007; Jones 2008 32 Developing Capacity Evolving Governance Today, with the help of NACSO, some conservancies have As institutions, conservancies are in many cases newcomers; become the most functional governing bodies in their regions they bring together villages, tribal authorities, and other local (Harring and Odendaal 2006:32). Conservancies have revenue, institutions that often have little experience working together legitimacy from the state, and an ability to work with tribal formally. As such, signs of good governance, like participation authorities, giving them political and economic influence and a familiarity with accounting and budgeting, develop over (Harring and Odendaal 2006:32­33). For example, when the time as conservancies learn by doing (NACSO 2006:38). management committee in Sesfontein Conservancy wanted to Supporting their evolution are a number of local intermediary distribute bushmeat from regulated hunting, it worked with support organizations that work with nascent conservancies on traditional leaders to allocate and distribute the meat equitably capacity-building projects. among conservancy members (NACSO 2006:38). At the center of the capacity-building efforts is the Namibian The continued success of conservancies, however, will likely Association of CBNRM Support Organizations (NACSO), which depend on the level of benefits they keep bringing to their in partnership with the Ministry of Environment and Tourism members. Addressing this concern, some conservancies have has helped design and run skills training programs among many catered their activities more closely around the livelihood needs diverse communities, institutions, and businesses. These of local residents, helping to build political support and demon- include community-based tourism enterprises, private tourism strate a degree of accountability to the local community. The companies, tribal authorities, villages, and the conservancy Khoadi Hoas Conservancy, for instance, has worked with its local committees themselves (NACSO 2005). farmers' union to support livestock and range management activ- ities, as well as helping to subsidize fuel for water pumps and The organizations that belong to NACSO--12 local NGOs, the repair infrastructure damaged by wildlife. It has also reimbursed University of Namibia, and several members who participate on members for crop losses from elephant and predator damage a more limited basis (see Table on previous page)--undertake (Jones and Mosimane 2007:21; NACSO 2006:54) the bulk of the capacity-building effort due to their familiarity with issues of development and conservation in rural Namibia In some instances, conservancies have taken on larger land use (Jones 2007). For example, the Namibian Community-Based and natural resource management issues in the communal Tourism Association (NACOBTA) has been instrumental in areas. As social and political institutions, they are evolving a helping communities negotiate levies and income-sharing capacity to manage land rights issues. Leaders of the Khoadi agreements with private tourism companies (Jones 2007). Hoas Conservancy, for one, have worked with other local Other capacity-building support has focused on business and figures, such as agricultural extension officers, to offer advice natural resources management skills, which has helped the on land and resource disputes (Vaughan and Katjiua 2002:19 essential day-to-day operations of conservancies. An investiga- as cited in Jones and Mosimane 2007:21). Conservancies have tion in 2005 found that most instances of financial also begun to address social issues such as HIV and AIDS, mismanagement in the conservancies were due not to graft but which affect a large percentage of the population of some to shortfalls in capacity and training--a potent reminder that areas. In Caprivi, conservancy "peer educators" attended a capacity building is now the conservancies' most critical need week-long training workshop in 2006 to improve their AIDS (NACSO 2006:38). awareness-raising skills (IRDNC 2006:3). Capacity-building efforts have spanned a wide range of activities, from training management teams in financial administration and the writing of annual reports to encourag- Networks ing local potters to enter the national pottery exhibition and also training workshops on conflict management. In the The success of implementing Namibia's community conserva- Caprivi region in northern Namibia, Integrated Rural Develop- tion program has very much been a story of cooperation ment and Nature Conservation--one of the NACSO support between institutions. Fifteen years ago the Ministry of Environ- organizations--offered tour guide training and even sponsored ment and Tourism (MET) began working with a group of public speaking workshops specifically intended for women nonprofit organizations, along with the University of Namibia, (IRDNC 2006:1,3). to address the challenges of community-based natural resource management (CBNRM) in Namibia. This cooperative arrange- ment eventually evolved into NACSO (NACSO 2006:15,19). 33 UPDATE: NAMIBIA GROWTH IN COMMUNAL CONSERVANCIES, 1998-2005 TOTAL LAND AREA UNDER MANAGEMENT POPULATION LIVING IN CONSERVANCY AREAS 120,000 250,000 100,000 srete 200,000 80,000 molik elpoepforeb 150,000 60,000 erauqS 100,000 40,000 muN 20,000 50,000 0 0 1998 1999 2000 2001 2002 2003 2004 2005 1998 1999 2000 2001 2002 2003 2004 2005 Source: NACSO 2006: 12 The organic development of NACSO has allowed it to address government, has also helped bridge the gap between national the evolving challenges faced by communities. Over time, policy and local needs. NACSO has worked to build ownership around wildlife manage- ment in Namibia's conservancies. This in turn has supported Funding and facilitating the work of NACSO have been a the development of local governance, as well as building the number of international partners, such as the United States skills and capacities needed to manage wildlife productively for Agency for International Development (USAID) and the World the benefit of the community. Wildlife Fund (WWF). From the beginning, these organizations have been crucial in supporting governance innovations such as Alongside NACSO's evolution, the Namibia Community-Based the Nature Conservation Act, which provided the legal founda- Tourism Association has represented and supported the tion for the conservancy program, and in providing guidance on community tourism enterprises sprouting up within conservan- establishing community-based wildlife management enter- cies. Currently there are 108 such conservancy-owned prises (NACSO 2006:15, 19, 55). They have also been very enterprises working solely within the conservancy boundaries, effective at documenting the Namibian conservancy movement with varying levels of success (WWF et al. 2007:92­93). and advertising it within the international development commu- NACOBTA has worked to improve local business skills and, with nity as a model for sustainable environmental management and its membership in NACSO and engagement with the Namibian rural development. This has both strengthened the political position of the conservancy program within the Namibian government and INCOME FROM CONSERVANCIES AND OTHER COMMUNITY-BASED NATURAL helped it gain the necessary financial RESOURCE MANAGEMENT IN NAMIBIA, 1994-2005 resources from other international 25 Income from CBNRM donors to cover the considerable activities outside of startup costs of new conservancies. conservancies 20 Non-case income to One downside to the current funding sralodnaibimaNnoiliM conservancies formula is that it has created a certain 15 degree of dependence on external Cash income to donors, whose funding levels are now conservancies declining. This challenges the NACSO 10 organizations to develop alternate funding sources so that they can continue their current level of support 5 to conservancies (Jones 2008). 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: NACSO 2006: 45 34 CONSERVANCY-RELATED INCOME, 2006 EXTENDING THE CONSERVANCY CONCEPT: COMMUNITY FORESTS IN NAMIBIA Source of Income Value in N$ Percentage of Total Conservancy Income Based in large part on the success of CBNRM in the conservancies, the Namibian government enacted legislation in 2001 allowing the Miscellaneous 34,788 0.1% formation of community forests--areas within the country's communal Premium hunting 43,600 0.2% lands for which a community has obtained management rights over Veld products 39,000 0.1% forest resources such as timber, firewood, wild fruits, thatch grass, Thatching Grass 2,450,481 9.1% honey, and even some wildlife (MET 2003). The establishment of the Shoot and sell hunting 504,883 1.9% community forest program shows how the scaling-up process can Interest earned 161,807 0.6% reach across natural resource systems, affecting natural resource Craft sales 474,343 1.8% policy at the broadest level. Although the community forest program Campsites and CBTEs* 3,746,481 14.0% and the conservancy program are now administered separately by Trophy meat distribution 870,219 3.2% different ministries, some groups have expressed interest in merging Game Donation 860,950 3.2% the programs to allow a more integrated approach to managing Use of own game 739,629 2.8% natural resources at the community level (Tjaronda 2008). Trophy hunting 6,113,923 22.8% Joint venture tourism 10,794,668 40.2% Establishing a community forest is similar to the process of forming TOTAL 26,834,772 100.0% a conservancy. Communities must: * community-based tourism enterprises. I Submit a formal application to the government; Source: WWF et al. 2007:113. I Elect a forest management committee from the community; Impacts I Develop a constitution; I Select, map, and demark a community forest area; Conservancies will not end rural poverty in Namibia on their own, but they are a step in the right direction. In 2006, conser- I Submit a forest management plan describing how the community vancy income reached nearly N$19 million (US$2.9 million), will harvest forest resources sustainably and manage other activities and this figure has been climbing steadily for the past eight such as grazing and farming within the forest area; years. Income from small businesses associated with the I Specify use rights and bylaws necessary to act on their conservancies but not directly owned by them brings in another management plan; N$8 million (US$1.2 million), raising the total economic benefits associated with Namibian conservancies to nearly I Craft a plan to ensure the equitable distribution of revenues to all N$27 million (US$4.1 million) in 2006 (see table), up from community members; and N$20 million (US$3 million) just a year earlier. This has estab- I Obtain permission from the area's traditional authority (MET 2003). lished conservancies as a substantial and growing source of employment and revenue generation for rural areas (WWF et al. As of April 2008, a total of 45 community forests had been formed 2007:ii). Significantly, women have shared in the employment (although only 13 were officially gazetted), encompassing 2.2 million ha benefit and the empowerment that it brings, capturing many of and benefiting some 150,000 Namibians. In the northeastern region the new jobs, including being game guards and natural resource alone, 16 registered forests have generated more than N$300,000 monitors, as well as serving tourists in campgrounds and lodges (US$38,000) since 2005 (The Namibian 2008; Tjaronda 2008). (Seitz 2008; WRI et al. 2005:117). As conservancy income has risen, so have community benefits. in dollar value, play an important role in this cash-scarce The greatest portion of the money that conservancies take in society. They are especially helpful when school fees are due or typically goes toward salaries and benefits for employees in the during the dry season, when food can be insufficient (Jones and joint-tourism ventures, campsites, and other tourism and Mosimane 2007:27). hunting enterprises--some N$7.7 million (US$1.2 million) in 2006. The remainder of the income is used for cash payouts to Expenditures on social development projects are increasing members, investments in social development and local infra- among conservancies, more than doubling from 2003 to 2005. structure, miscellaneous operating costs, capital development, This has made conservancies an increasingly important agent of and purchases of bushmeat for members (WWF et al. 2007:ii; rural development. Mayuni Conservancy, for instance, donated NACSO 2006:52­54). Cash payouts, although relatively small N$5,000 (US$755) to each of its two schools in 2005, while 35 UPDATE: NAMIBIA Torra Conservancy supported youth development programs and paid for the maintenance of school computers. Tsiseb Conser- CONSERVANCIES INCREASE RESILIENCE vancy has started a microfinance scheme to encourage local enterprises. Soup kitchens and pensioners receive continuing The expansion and success of conservancies as sources of rural support in Khoadi-Hoas. Many conservancies also make a contri- income, empowerment, social cohesion, and institutional development bution to the local traditional authority (NACSO 2006:52­54). have increased the resilience of Namibia's ecosystems and rural communities to environmental problems like desertification as well as to the challenges of social and economic change. Greater Environmental Resilience Sustainability I The spread of conservancies means that over 14 percent of Namibia's land mass now benefits from sustainable wildlife management. A decade after the program began, many conservancies are Reduced poaching and better management have increased wildlife moving steadily toward economic self-sufficiency. By the end of populations over wide areas and helped restore historic game migra- 2007 there were 16 conservancies covering all their operating tion patterns (WWF et al. 2007:ii; NACSO 2006:25­29). costs, up from just 4 in 2003. Another 4 were paying a I substantial portion of their costs--as much as 85 percent Managing conservancy lands primarily for wildlife has reduced (Weaver 2007). This sort of financial independence is a crucial livestock grazing in some areas, lowering the likelihood of overgrazing, long-term goal for conservancies. Strong economic performance which exacerbates desertification (Jones and Mosimane 2007:22). increases local buy-in to activities and bankrolls capacity build- Greater Economic Resilience ing, which is one of the keys to a conservancy's commercial and I Greater job opportunities in tourism and related services have diver- social viability. Wealthier conservancies, for example, have sified local livelihoods, supplementing traditional income from started investing in permanent staff to run daily operations. agriculture and livestock rearing. This has reduced vulnerability to This increases the quality and consistency of conservancy drought, which Namibian dryland agriculture is prone to (Jones and management and ensures that institutional memory is retained Mosimane 2007:3,6). longer than when conservancies were managed by a rotating I staff of community volunteers (Jones 2007). By 2007, half of Conservancy income has helped bankroll microfinance schemes that the 50 registered conservancies had employed some staff-- have magnified the economic growth associated with the conservan- including conservancy managers, administrators, and field cies (NACSO 2006:54). officers--although this was mostly within the conservancies I The skills necessary to manage wildlife populations, attract and with the highest tourism and game hunting potential (WWF et serve a tourist clientele, and distribute conservancy revenues fairly al. 2007:113). are transferable to other business and social enterprises, opening greater possibilities for small business development within conser- Torra Conservancy provides an example of what these bodies are vancy communities (Boudreaux 2007:15). capable of. In 2000, it became Namibia's first financially independent conservancy, covering all its operating expenses Greater Social Resilience I through conservancy income as well as paying out a surplus Conservancies build social capital by offering a platform for collec- dividend to its 450 members (Vaughan et al. 2003:5). This was tive activities that unite dispersed communities in common cause partly made possible because Torra entered into a joint-venture and for mutual benefit (Boudreaux 2007:3). arrangement with the private company Wilderness Safaris I Conservancy management committees provide a forum for participa- Namibia to run a high-end campground called Damaraland. The tion and empowerment and a laboratory to develop representative conservancy collects 10 percent of the camp's income. and inclusive local institutions whose benefits extend beyond wildlife Together these joint-venture arrangements are the largest management into the provision of a variety of social services as well source of revenue for conservancies overall, although only a as dispute resolution. minority of the conservancies have such an agreement in place. I Currently, 16 formal joint-venture agreements exist, with 8 Conservancy activities build a culture of learning and connection more in development (Weaver 2007). rather than isolation, allowing rural communities to participate in national and global economies and cultures. 36 Challenges to the Conservancies As the LIFE program phases out, will conservancies have the resources they need to continue their upward trajectory? The answer is unclear. Of course, some conservancies will fare Despite the economic gains that many conservancies have better than others, either because they have more tourist experienced, there is still considerable work to be done. In appeal, better functioning institutions, or have benefited from 2007, only 34 of 50 conservancies received some kind of sustained NGO and government capacity-building efforts. But a income from their activities that was used toward covering number of other conservancies--both existing and in the operating costs, resource management activities, and payments making--will require continued assistance for CBNRM activi- to members (Weaver 2007). While this is up from 19 in 2004, ties to scale up beyond their current level of success. it indicates that setting up an economically viable conservancy is a difficult and time-consuming process and that the wildlife One likely source of support comes from the Millennium rights that are devolved to conservancies do not guarantee Challenge Corporation (MCC), a 4-year-old United States devel- instant income. Gaining the competence and infrastructure to opment agency. With encouragement from the MCC, the take advantage of wildlife management rights requires consis- Namibian government submitted a US$300-million proposal for tent capacity building and institutional support for many years assistance in funding economic development objectives over 5 in most cases. Further, a conservancy may gain financial years. Roughly a third of the proposed spending would be used independence before it has a sound governance foundation and to support tourism ventures, including community conservan- may require continuing support in developing good governance cies. In its current form, however, the proposal does not practices (Jones 2008). primarily focus on conservancies, and it is not clear how much of the money would fund activities that directly or indirectly This need for consistent and continuing support will become a benefit them. Nor does the proposal specify the kinds of capac- pressing concern in the next few years as international donor ity-building and support services that conservancies will clearly support for the conservancies tapers off. Over the past 15 years continue to need, such as assistance in entering into joint the Living in a Finite Environment (LIFE) program, which was partnerships with private tourism enterprises. This points up the funded by USAID and implemented by WWF, has supported the continuing challenge of integrating the growth and maturation of Ministry of Environment and Tourism and the NACSO network of Namibian conservancies into the mainstream of Namibian NGOs involved in scaling up CBRNM activities in Namibia. The economic development. That integration will likely determine funds have been used to support a variety of existing initiatives, how successful the scaling up of Namibian conservancies is and such as strengthening local democratic decision-making in how effective this is in achieving long-term rural development communal areas, helping to develop wildlife management plans, and poverty reduction (Morris et al. 2007:5­7, 28). and developing tourism enterprises. But the LIFE program is set to expire in 2008 after receiving US$46 million in support (WWF et al. 2007:1; Jones and Mosimane 2007:5­6). 37 UPDATE: SCALING UP LOCAL MANAGEMENT OF COASTAL FISHERIES IN FIJI W ORLD RESOURCES 2005 HIGHLIGHTED THE local management of coastal fisheries in Fiji as an example of successful community-based stewardship of natural resources that improved local livelihoods while enhancing marine biodiversity and productivity. A locally managed marine area (LMMA) is an innovative type of marine protected area that blends traditional village management of ocean resources with modern methods of biological monitoring and assessment. Through the establishment of LMMAs, communities are empowered to improve management of declining marine resources, leading to gradual restoration of productivity and, ultimately, to increased catches of fish and shellfish. Organiz- ing communities into networks actively engaged in the management of their marine resources also helps villagers gain greater access to decision-makers and have more impact on policies that affect their lives. Since the creation of Fiji's first LMMA in 1997--covering 24 ha near the small village of Ucunivanua on the eastern coast of Fiji's largest island--the use of LMMAs as a tool to address Background: The LMMA Approach in Fiji overfishing has spread rapidly throughout Fiji. In 2001, the Fiji Locally-Managed Marine Area (FLMMA) Network was estab- The FLMMA Network emerged against a backdrop of long-term lished as a forum for Fiji's LMMA participants to share their depletion of Fiji's inshore fisheries that had accelerated in the methods and monitoring results. As reported in World 1990s, attributable to increased commercial fishing as well as Resources 2005, the LMMA Network in Fiji encompassed larger harvests by growing populations of subsistence fishers. nearly 60 LMMAs, involving 125 communities and covering The resulting degradation of marine resources impinged about 20 percent of Fiji's inshore fishery. By 2007 the Network sharply on the livelihoods of rural Fijians, most of whom had scaled up to include some 213 LMMAs, involving 279 depend on local fish and shellfish catches for some or all of villages and covering almost 8,500 sq km (850,000 ha) of their daily protein intake and income. With fish stocks on the coastal fisheries, or about 25 percent of the inshore area decline, the incidence of national poverty rose from 29 percent (LMMA Network 2005a; LMMA Network 2007a:3; Tawake in 1991 to about 34 percent in 2003 (Narsey 2007). 2008:2). The structure of LMMAs in Fiji is based on customary systems At the same time, the LMMA Network has expanded to other of marine tenure, under which communities control traditional countries in the Asia-Pacific region, including Indonesia, Papua fishing grounds, known as iqoliqolis, adjacent to their villages. New Guinea, the Philippines, the Solomon Islands, and the (Leisher et al. 2007b). Communities establishing LMMAs in islands of Palau and Pohnpei. All told, the international LMMA Fiji today have used these traditional practices, managing their Network encompasses more than 300 LMMA sites, covering iqoliqolis at the community level and setting aside a portion in excess of 10,800 sq km (LMMA Network 2007a:3). The of this traditional fishing ground (typically 10­20 percent) as LMMA approach has also inspired local management of marine a restricted or tabu area to allow marine resources to recover resources in more distant lands, ranging from the Marshall (LMMA 2005a). Islands and Vanuatu to Hawaii (LMMA Network 2007b). The location and size of this tabu area is determined within In this update, we look at how the LMMA Network has each community, often with suggestions from technical expanded in Fiji and elsewhere in the Asia-Pacific and examine experts. In this aspect, LMMAs are distinct from the more the key factors in that scaling-up and the impact it has had. common marine protected areas (MPAs), in which management decisions are made by central authorities with little or no consultation with local people (LMMA 2005b). 38 As fish and shellfish species recover in tabu areas, their Creating Local Ownership abundance gradually increases in nearby areas of the LMMA where fishing is allowed. This "spillover effect" has boosted Local control of natural resources is the centerpiece of the local income by as much as 35 percent over 3 years (LMMA LMMA Network's approach. The network is a collaborative Network 2006a:5). partnership that aims to demonstrate that marine protected areas can yield impressive conservation results while accommo- Over the past 7 years of LMMA work in Fiji, communities have dating a wide range of local needs--economic, cultural, and collected data on the impacts and benefits of their manage- social--and using modern marine science. ment efforts and shared these with appropriate government officials. As a result, the LMMA approach has gained increas- Local Demand ing acceptance from government, and the Ministry of The rapid expansion of the LMMA Network in Fiji and Fisheries has become a key FLMMA partner. In 2005 the elsewhere in recent years has been driven by demand from Ministry publicly committed to protecting 30 percent of Fiji's communities. When a village creates an LMMA that results inshore waters by 2020--a commitment that was subse- in increased fish catches and higher incomes, neighboring quently joined by Palau and the Federated States of communities hear about it and want to learn how these Micronesia (LMMA Network 2006a:5). successes occurred and how they can follow a similar path (USP 2007:3­4; Aalbersberg 2008). GROWTH OF LMMA NETWORK, 2000-2006 Over time, demand for information about the LMMA approach has grown; inquiries now come from as far afield as East Africa 350 (USP 2007:5). As of mid-2007, with more than 200 active LMMA sites in Fiji, 50 to 100 additional villages were at the 300 preliminary consultation stage of the community engagement setis 250 process (LMMA Network 2007a:3, 23). fo 200 reb Communities engaged in LMMA work tend to retain high levels 150 mu of commitment to the program, indicative of their sense of N100 ownership and economic stake. For instance, members of the 50 Navakavu community surveyed as part of an extensive interna- tional study of the impact of MPAs on poverty reduction 0 2000 2001 2002 2003 2004 2005 2006 indicated that they consider their LMMA to be crucial for Source: LMMA Network 2007a: 2 themselves and future generations. Ninety-five percent of respondents agreed that dissolving the LMMA now would cause significant problems in the future (Leisher et al. 2007a:9). LMMA NETWORK PARTICIPATION, 2006 Participation and Local Decision-Making Country Total Number Number of LMMA Area A hallmark of the LMMA Network approach is the use of partic- of LMMAs Villages (sq km) ipatory methods to help communities design simple Fiji 213 279 8,497 management plans to address threats to marine resources. Indonesia 12 16 700 Experts from FLMMA partner organizations, such as the Univer- Palau 1 3 266 sity of the South Pacific (USP), the Peace Corps, and the Fijian Papua New Guinea 16 17 503 Fisheries Ministry, provide technical information and advice to Philippines 17 17 270 support community decision-making but do not dictate it; Pohnpei, FSM 1 4 64 community members make all final decisions (Tawake et al. Solomon Islands 42 75 567 2005:7; Govan et al. 2008:7). Totals 302 411 10,867 Source: LMMA Network 2007a: 3 When a community decides to establish an LMMA, participa- tory planning meetings are held to establish resource rules governing the use of the community's marine resources. Typically an intermediary organization such as USP engages 39 UPDATE: FIJI extensively with the community during this period to provide People in the villages of Navakavu are confident about the assistance. Support from a neutral party like USP that is not committee's competence and its responsiveness to community aligned with any interest group in the community is often very demands. As one villager noted, "The establishment of the helpful to stakeholders in reaching consensus. [iqoliqoli] committee has helped each member recognize their assigned duties and has encouraged them to perform well in Once rules governing resource use are established, an iqoliqoli their area" (Leisher et al. 2007a:8). committee is formed to coordinate LMMA work as well as to represent the community before relevant institutions on issues The relatively small size of LMMAs (compared with large MPAs involving the LMMA. The iqoliqoli committee has the responsi- administered by central authorities) tends to foster a stronger bility, as designated by the vanua (traditional community sense of ownership and engagement by the locals. The limited council), for making all management decisions concerning the scale of the resource ensures that the impact of conservation LMMA, following consultation with residents through village measures can be detected sooner. In the case of Navakavu, the council meetings (van Beukering et al. 2007:11). LMMA is even within sight of the managing villages, adding to their sense of control (Leisher et al. 2007a:32). In the community of Navakavu, for example, the iqoliqoli committee consists of 21 members, including landowners and the headman from each of the four main villages using the Compliance and Enforcement iqloiqoli, as well as the individuals serving in key posts estab- When a community establishes an LMMA, the improvement in lished by the LMMA process: biological monitors, fish wardens the condition of marine resources attracts poachers from both (one from each village), and the leader of the youth environ- inside and outside the community. Thus monitoring compliance mental drama group (van Beukering et al. 2007:11­12). with established resource rules and minimizing poaching is 40 central to a community's LMMA management (Leisher et al. One example of this refinement is USP's Learning Framework 2007a:10). For instance, in Kadavu alone (Fiji's third largest (LF), which serves as a common language across the LMMA island), some 52 fish wardens provide enforcement for 26 Network. The LF contains methods to measure biological and LMMAs and their protected zones (LMMA 2006a:15). socioeconomic conditions at LMMA sites, allowing communi- ties to help identify the factors that correlate most strongly with In many communities, poaching can undermine the levels of poverty reduction and successful marine resource conservation. cooperation and social cohesion that are needed for successful Recently, this tool has been translated into local languages, management. That is especially true when poachers are inter- enhancing its accessibility for current and potential LMMA nal. Rata Aca Vitukawalu, a tribal chief in Daku village in participants (LMMA Network 2006a:7, 35). Kadavu province, observes: "The biggest obstacle we are facing right now is people are still fishing illegally in our marine The overarching goal of the training provided to LMMA commu- protected area. People have been stealing not only fish but also nities is to build their capacity for "adaptive management"--the the buoys which have been left as marks for our MPA bound- ability to adjust management practices and rules over time, aries" (LMMA Network 2007b). based on monitoring results (LMMA 2006a:6). Now that commu- nities have been collecting and analyzing monitoring data for In order to ensure tabu compliance, communities select a several years, many sites are "at the stage where we expect to see voluntary fish warden, who patrols local waters, reports illegal more adaptive management happening soon," says Professor Bill entries and collects evidence. Fish wardens are given special Aalbersberg of USP (Aalbersberg 2008). training by the fisheries ministry to enable them to arrest viola- tors (LMMA Network 2006a:15). Enterprise Development Some LMMA communities are experiencing new economic opportunities, now that villagers spend less time fishing and Developing Capacity often have fish surpluses. In communities with good infrastruc- ture and access to urban centers, the men have found jobs in cities or towns and commute daily from the village. In Monitoring and Analysis Navakavu, a recently established public bus service has given When the first LMMAs were established, scientists from USP women access to markets in the capital city of Suva where they taught villagers to use simple techniques of sampling and can sell their surplus fish and shellfish catch at higher prices, statistical analysis in order to determine a baseline of species increasing their ability to earn significant amounts of cash (Van abundance in the tabu area and in adjacent, down-current Beukering et al. 2007:9­10). sites. The resulting baseline was then combined with results of annual biological monitoring surveys in order to determine the In general, training provided to communities by the LMMA impact of the LMMA on species numbers (LMMA Network Network and its partners have focused so far on biological 2006a:6­7). monitoring and analysis, with the aim of empowering commu- nities to manage their marine resources better. Yet only a small By 2006, almost 3,000 people--more than 1,000 people each subsection of the population learns these skills, namely fish in Fiji and Indonesia, and another 800 or so in other countries, wardens, those involved in biological monitoring, and members including Papua New Guinea, the Philippines, and Microne- sia--had received training in LMMA Network methodologies (LMMA Network 2007a:8). The network has also produced a biological monitoring training DVD for communities. As community-based management has grown, the methodolo- gies used for monitoring and analysis of results have also evolved. Over the past 2 years, the LMMA Network has devoted particular effort to refining, clarifying, and streamlining data collection and analysis techniques taught to LMMA communi- ties. This has helped to scale up the effort by making it easier to roll out the LMMA approach in new areas (LMMA Network 2006a:7). UPDATE: FIJI of the iqoliqoli committee (Van Beukering et al. 2007:16). Similar province-wide approaches are also being pursued in Unfortunately, even less emphasis is placed on development of Cakaudrove and Macuata, two of three provinces based on alternative livelihoods for families currently dependent on Vanua Levu, Fiji's second largest island, located to the north of fisheries or on the acquisition of skills needed to run success- Viti Levu (LMMA Network 2006a:5). As of March 2008, some ful enterprises: accounting, bookkeeping, and management 40 villages (about half of those encompassed by the initiative) (Van Beukering et al. 2007:16). had established resource management plans. Of these villages, 24 had established tabu areas of varying sizes (with a maximum of slightly more than 1 sq km) and varying durations (from 3 months to 10 years) (Aalbersberg 2008). Networks Policy Influence and Political Engagement At its core, the LMMA Network is a peer learning system in which Organizing communities into networks enables them to have members share a strong commitment to supporting each other's greater access to decision-makers and greater impact on policy. activities, including the exchange of information. Community The efforts of the LMMA Network have helped to secure partners who have been trained in LMMA techniques are eager to national governments' recognition of the value of traditional pass on what they have learned to others. In addition to hosting resource management approaches. Indeed, Fiji's government formal workshops, the LMMA Network also promotes opportuni- has formally adopted the LMMA approach and has devoted a ties for informal learning and village-to-village exchanges. division of the Fisheries Department to coordinate with FLMMA Cross-site visits between Network communities enable those to promote inshore conservation. The FLMMA Secretariat is involved to learn from each other's experiences, methods, and now even housed in the Fisheries Department. And as a result practices (LMMA Network 2006a:7). of community pressures on the Fisheries Ministry, Fiji has recently set a 12-nautical-mile limit to keep foreign fishing Extending the LMMA Approach vessels from iqoliqolis (Tamake 2008:2, 8; Aalbersberg 2008). One especially promising development has been FLMMA's creation of subnetworks to extend LMMA work to more remote areas of Fiji. This is being carried out by province-wide teams, which provide systematic support to remote communities. Impacts These Iqoliqoli Management Support Teams (QMSTs) are made up of community members, fisheries officers, overseas volun- The economic impacts of the LMMA program seem to be signif- teers, USP students, and provincial government officials. They icant, although the data so far are not comprehensive. About hold management planning workshops and link LMMA groups 20 LMMA Network sites in Fiji have collected detailed survey province-wide (Tawake et al. 2005:5­6). data on household incomes. However, only 3 of these sites have time-series data to correlate economic benefits from increased This approach has worked well in Kadavu, Fiji's fifth largest fish catch. In Ucunivanua, average household income rose from island, located to the south of Fiji's main island of Viti Levu. just over F$430 (US$258) per month in 2002 to about F$990 The people of Kadavu rely heavily on fishing and farming for (US$594) in 2006, an increase of 130 percent. The commu- their livelihoods, although a growing tourist industry has begun nity of Daku in Kadavu province experienced a gain in average to provide a few alternative sources of income (Tawake income of just over 30 percent in one year, from about F$235 2008:4). Kadavu faces significant overfishing problems and (US$141) per month in 2005 to F$307 (US$184) in 2006 destructive fishing practices, which have degraded some (Aalbersberg 2007). marine areas. The most comprehensive examination of the economic impacts of But due to the Kadavu QMST's efforts to extend the LMMA LMMA work has been a recent study by an international team approach throughout the province, the number of communities examining the role of marine protected areas in poverty reduction. that have established tabu areas has increased rapidly in recent The team did extensive interviews with households in the years--from 5 in 2002 to 30 in 2005 and 52 in 2008, which Navakavu community, an LMMA site since 2000. A survey of 300 represents nearly the entire island (Tawake et al. 2005:5; households found that monthly income in Navakavu averaged Aalbersberg 2008). The provincial council has endorsed the F$418 (US$251), while income in control sites with similar team's work and has passed a resolution calling on every demographic and geographic characteristics averaged only F$197 community to set up both terrestrial and marine protected areas (US$118) per month (van Beukering et al. 2007:20). (Tawake et al. 2005:5). 42 Moreover, households in LMMA villages were more likely to rely on income from sources other than fishing, with 28 percent of households in LMMA sites having alternative income sources versus only 17 percent in comparable, non-LMMA villages (van Beukering et al. 2007:28). This increased diversification of income sources boosts resilience in the LMMA villages to threats to future fisheries income from, for instance, the impacts of reef degradation due to coastal pollution, severe storms, or climate change. This resilience comes with other LMMA benefits as well, such as planning skills and closer community cooperation. Another advantage for LMMA members has been increased consumption of fish. Households in LMMA villages eat more fish because they catch more fish. Some 75 percent of surveyed households in Navakavu reported eating more fish than 5 years ago, while 76 percent of households in the control (that is, non-LMMA) villages reported eating less fish (van Beukering et al. 2007:31). Despite the challenges of achieving full equity in participation, the ongoing work of the iqoliqoli committees has tended to foster better communication and increased cooperation within LMMA communities, helping to bridge differences between various clans. Typically, local councils in LMMA communities are called on to make many more collective decisions about resource management than was the case before the LMMA's creation. This has revitalized traditional systems of community cooperation and joint decision-making, thus contributing to increased social cohesion (van Beukering et al. 2007:15, 17). The team also investigated whether the tabu had had any significant impacts on fishers. Some 283 fishers were exten- For instance, a survey of villagers in the Navakavu community sively interviewed about their activities, but no significant found that more than 80 percent agreed that since establish- differences between LMMA and non-LMMA villages could be ment of the LMMA there has been a higher level of participation detected in terms of the types of fish caught, fishing in community meetings, women have had a stronger voice, and techniques used, fishing frequency, or travel time to fishing the community has become more united. More than 50 percent grounds (van Beukering et al. 2007:24). Yet LMMA sites gener- agreed that youth have more opportunities to share their ated about three times the income from fishing as non-LMMA opinions and that resource conflicts within the community have sites (van Beukering et al. 2007:28). The ability of fishers from declined (van Beukering et al. 2007:30). LMMA villages to secure larger fish catches from a smaller harvest zone is testament to the substantial spillover effect In Votua, another LMMA community, social cohesiveness has from the tabu area into the harvesting zone (van Beukering et improved considerably after 3 years of LMMA work. "Through al. 2007:28). our engagement with LMMA work...our three clan chiefs are now talking to each other after decades of disputes," observed The key difference between fishers from LMMA and non-LMMA one community member (LMMA Network 2006a:21). villages was in their perceptions of changes in fishing condi- tions over the past 5 years. While some 80 percent of fishers from LMMA villages said that they faced easier conditions, the majority of fishers from non-LMMA villages said that they faced more difficult conditions (van Beukering et al. 2007:26). 43 UPDATE: FIJI 2007a:iv). A separate study in Navakavu showed that the increase in fish caught over this period has provided about US$37,800 in benefits to the community (O'Garra 2007:2). The province-wide approaches established in Kadavu and other provinces of Fiji hold considerable promise as a low-cost and highly effective method for extending LMMA work to remote sites and may provide a model for other LMMA Network countries to emulate (LMMA Network 2006a:35). It is important to note, however, that successful LMMA work requires a commitment to provide ongoing training for commu- nity members who replace people who move away from the village. Likewise, continual training is needed in LMMA Network partner organizations, such as government ministries, since staff move around over the course of their careers and often leave the districts in which they had begun promoting LMMAs. The role of external funding has also been significant. The cost of the LMMA Network's core operations is about US$500,000 per year, much of which has historically been supplied by U.S.- based charitable organizations, including the MacArthur and Packard Foundations. It has been challenging for the network to secure additional sources of support, especially for core costs LMMAs have also enhanced social cohesion by increasing (USP 2007:23). village fundraising for communal purposes, such as to support the local church or schools. Households earning additional A FLMMA Trust Fund has been established to provide ongoing income from selling surplus fish and shellfish are better able to village assistance costs once donor funding ends. It was origi- meet their traditional social obligation to contribute to village nally established with prize money from international awards for fundraising. For instance, in Waiqanake village in Navakavu, FLMMA work. More recently, Conservation International has the Community Fundraising Project recently amassed some committed funds in return for FLMMA managing the organiza- F$20,000 (about US$12,000), three quarters of which came tion's Fiji Marine Managed Area initiative. A marine from the sale of fish and shellfish from the LMMA (van Beuker- bioprospecting venture has also contributed to the fund. ing et al. 2007:9). Individual communities are being encouraged to establish their own trust funds as well (Aalbersberg 2008). Sustainability Challenges to the LMMAs The LMMA approach has several distinct characteristics that contribute to its ability to create long-term change. First, it In addition to the sustainability challenges described above, relies on strong commitment and motivation from the commu- the LMMA approach faces other tests as it expands throughout nities themselves, which tends to promote enhanced resilience. Fiji and the South Pacific. Experience with the initial LMMAs indicates that communities remain engaged in the collective efforts needed for successful Representation ongoing resource management. Traditional Fijian cultural norms tend to emphasize the involve- ment of older, male community members in decisions on Another favorable aspect is the relatively low cost to establish marine resources. Women and youth are often challenged to an LMMA. For instance, the total cost to establish the LMMA make their voices heard. in Navakavu is estimated at less than US$12,000 over 5 years--a modest investment that has led to a doubling of average household income for about 600 people (Leisher et al. 44 While the FLMMA protocol recommends equal representation When violations are detected, only sanctioned fish wardens have of women, men, and youth in all meetings and committees, this the right to take violators to the police. Some transgressors may is not always achieved. In some villages, women lead iqoliqoli be brought before community meetings for more traditional committees (Aalbersberg 2008). In others, however, women are forms of enforcement, such as shaming (LMMA Network not represented, despite the fact that many are actively 2006a:15). But a general lack of consistency and an occasional involved in gathering shellfish (van Beukering et al. unwillingness of official law enforcement to get involved often 2007:15,16­17). In interviews, many women of Navakavu undercut the effectiveness of any compliance program (Rarabici voiced serious criticisms concerning the operation of the 2007). For instance, in the community of Tavualevu, on the iqoliqoli committee in their community, especially the lack of north shore of Fiji's largest island, Viti Levu, the iqoliqoli any mechanism for women's grievances to be heard and acted committee has taken on violators who engage in destructive, on by the committee (van Beukering et al. 2007:15). illegal fishing using dynamite smuggled out from a nearby gold mine. Despite the confiscation of dynamite and offenders' Changing such entrenched traditions will take time, yet the fishing gear by community fish wardens, many violators have long-term future of any community LMMA depends on both the evaded significant penalties due to lack of will within the perception and the reality of equitable treatment and participa- judicial system to convict them (LMMA Network 2007a:14-15). tion. Increases in alternative livelihoods, critical when natural resources are the sole source of income, can provide other A related challenge for communities engaged in LMMA work is avenues of empowerment and representation. addressing the suspicion of favoritism in enforcement. There is a perception that some people, such as extended family Enforcement members of fish wardens, are more able to "get away with" illegal entry into tabu areas or the use of prohibited gear (van Maintaining the integrity of tabu areas is a continuing problem Beukering et al. 2007:12­13). Community support for the for LMMA communities, despite the efforts discussed earlier to LMMA program will be eroded if the appearance of preferential develop enforcement capacity. Uneven support from regional access to marine resources is not addressed. and national officials and inadequate resources both cause problems. Fish wardens often experience difficulties carrying out their assigned jobs due to this lack of resources. Many Other Livelihoods LMMA villages consider the availability of a specially desig- The long-term success of the LMMA strategy also will depend nated patrol boat (with an engine) to be a prerequisite for on LMMA members' capacities for enterprise development and successful enforcement, particularly in areas of conflict with alternative livelihoods. Even with new opportunities for tourism commercial fishers (LMMA Network 2006b:2). While some employment, most poor families in Fiji's coastal communities communities have been able to secure the use of such a boat, remain heavily dependent on marine resources for their they may lack the means to purchase fuel for it. income. Yet as populations grow, if additional livelihood options are not available there is always the danger that poach- ing will become more common and that communities will revert to overharvesting. 45 Scaling up environmental enterprise for the poor involves creating the conditions for nature-based enterprises to thrive. C H BUILDING AP OWNERSHIP, TER 2 CAPACITY, AND CONNECTION SCALING UP ENVIRONMENTAL INCOME FOR THE POOR involves creating the conditions for nature-based enterprises to thrive. The term "enterprise" here spans the range from smallholder farming, fishing, and agroforestry to community- based ecotourism and even commercial logging. The conditions that foster successful ecosystem enterprises are conditions that promote engagement and investment at the individual and community level, skill development to manage resources and yield a desirable product, and the forging of social and commercial links and networks that help isolated rural enterprises to connect to markets and continue growing their business and management capacities over time. In its three major parts, this chapter probes these three essential conditions for poor- friendly enterprise: ownership, capacity, and connection. Or, to be more precise: creating a sense of ownership, developing the local capacity for resource management and entrepreneur- ship, and building the dynamic networks and connections necessary to sustain ecosystem-based enterprises. These elements are both sequential and interactive. Ownership provides the initial impulse for enterprise and precedes individual and collective action, but capacity is necessary to allow ownership to bear fruit, and connection is needed to increase and sustain the benefits stream. W O R L D R E S O U R C E S 2 0 0 8 This chapter emphasizes the role of local organizations and In examining the elements of scaling up nature-based local branches of government in bringing about these condi- enterprises, we realize that no list of "best practices," however tions. These local actors, which encompass village councils, well-grounded in observation and practice, can be regarded as savings groups, farmers' organizations, NGOs, producer a blueprint for success. Community-driven enterprises, and cooperatives, worker associations, resource user groups, and a particularly nature-based enterprises, are always a product of range of other formal and informal groups, provide the mecha- the unique social, cultural, and resource context in which they nisms through which joint resource management and enterprise arise. Slow and persistent learning by doing, where local partic- development occur in the rural sphere. ipants gradually adapt their collective resource management The chapter also examines intermediary support organiza- and business practices to the local situation and capacities of tions (ISOs) that help connect and enable community-level the group, is perhaps the only consistent best practice (Mansuri groups and that act as bridges between local groups and higher and Rao 2003:37). Nonetheless, isolating common experiences levels of government and business. Without these trusted inter- and challenges within an identifiable theoretical frame, as we mediaries, the rural poor would have a much more difficult time do here, offers an undeniable opportunity for learning at a gaining the skills, financing, and authority necessary to carry out macro level, so that support for scaling up ecosystem enterprise successful nature-based enterprises. The capacity development is well conceived. that these organizations enable and the political connections that they bring to the table are key elements of successful scaling up. 48 1. BUILDING OWNERSHIP Ownership: A Local Stake in THIS SECTION: OWNERSHIP Development and Enterprise In this section, we present the idea that "ownership," broadly conceived, Enforceable resource rights is the bedrock of nature-based enterprise. The incentive for sound OWNERSHIP resource management grows when individuals and communities possess Community demand for natural enforceable resource rights and process rights--that is, when they have resource management secure access to natural resources of value as well as to the decision- Community investment of time, money, making processes around natural resource management. This section: CAPACITY or other key inputs I Examines the two components of ownership: secure rights in land or Participation in and influence over aquatic resources and the ability to participate in decision-making decision-making processes around the management of local ecosystem resources. Both are CONNECTION important to create a real stake in improved resource management. See page 6 for full diagram. I Links the success of community-based natural resources manage- ment (CBNRM) to the security of land and resource tenure and looks at recent innovations in tenure reform. Managing ecosystems productively and sustainably generally requires a significant investment of time and resources. What can I Proposes that community demand for better resource management is catalyze the willingness to make this personal investment, or, even a crucial element in catalyzing successful ecosystem enterprises and more challenging, the willingness to work and invest collabora- analyzes how this demand arises. tively with others in the community? Ownership is the I Traces how community demand is expressed as collective action--a inducement--having a stake in the benefits that will accrue from commitment of resources and time for joint ecosystem management. ecosystem management. Ownership here involves both resource rights--the rights over land and resources known as tenure--as I Explains the importance of participation of community members in well as a sense of control over the larger process of resource devel- the design of local resource management institutions and in the opment in a community. Local ownership of resource rights and resource management process itself. decision-making processes governing resource use provides the I Probes the weaknesses of current participatory methods with respect motive force for community-driven development of ecosystem to the poor and suggests some strategies for making participation enterprises. Without this local stake in ownership, ecosystem more poor-friendly. management schemes are not likely to be sustainable or effective at poverty reduction. As mentioned in Chapter 1, our use of the term ownership does not necessarily imply possessing the full bundle of rights attributed to private property. Many different tenure arrange- ments--from full private ownership to communal tenure to co-management arrangements over state-owned resources like forests or fisheries--can support local nature-based enterprises. The critical factor for ownership is that local people--individually or collectively--have secure rights to use and control the ecosys- tem resources in question and perceive that their access is secure. While we do not explicitly take up the topic of decentraliza- tion of natural resource governance in this chapter, it provides a necessary backdrop to our discussion of ownership. Decentraliza- tion--the shifting of decision-making powers from central to local levels of government--is part of the larger process of devolving resource rights to local-level institutions, which is an important first step on the path to viable ecosystem enterprises. The current reality is that resource rights are often not vested in local govern- ments, communities, or individuals, and the poor are particularly likely to suffer from a lack of control over the ecosystem resources they rely on for their livelihoods. Centralized state control over forest, fishery, mineral, and wildlife resources is still the norm in 49 PIHSREN W O R L D R E S O U R C E S 2 0 0 8 STATUS OF LAND TENURE AND PROPERTY RIGHTS, 2005 WO Status of Land Tenure and Property Rights, 2005 Moderately severe concern Serious concern Extremely serious concern Not ranked Source: USAID and ARD, Inc. 2008 most developing nations, although this has begun to change as improve or manage it (van den Brink et al. 2006:4). Some studies more nations have embraced decentralization reforms. True show that investment doubles on land where tenure is strength- decentralization shifts power over resources by realigning ened (Feder 2002:15). It comes as no surprise, then, that strong resource-related decision-making processes to put local institu- property rights are associated with increased economic growth tions--and thus local users--at the center. Devolution of (Cotula et al. 2006:7). meaningful resource rights can take place within such a decentral- The connection between property rights and investment is ization process, with local government playing a critical role. particularly true of investments that take time to yield benefits, such Unfortunately, most current decentralization efforts remain as using good cultivation and water-management practices, plant- partial, and lack of resource rights is still a serious impediment for ing long-lived crops such as orchards and plantations, adopting most of the rural poor. sustainable fishing practices, or installing expensive infrastructure such as irrigation systems or new fishing equipment (Meinzen-Dick and Di Gregorio 2004:1; van den Brink et al. 2006:4). The key here is that the individuals or groups holding the property rights feel Land and Resource Tenure these rights are secure, meaning that there is little chance they will be dispossessed of their land or property for a period long enough Access to land and natural resources is the basis for livelihoods, to ensure that they reap the benefits of their investment. shelter, and social inclusion. Tenure is the right--embodied in law, Secure tenure is also linked to the success of community- custom, or convention--to such access. It is the right to use, based natural resource management. In a 2006 meta-study of 49 manage, and profit from resources and to exclude others from community forest management (CFM) cases worldwide, Pagdee et access--a bundle often termed property rights. As such, land and al. found a significant association between a community's security resource tenure is the basis for all ecosystem enterprises--from of forest tenure and the project's success (See Figure 1). Conversely, farming to fishing--and lack of secure tenure is one of the most when user rights and benefits were insecure, CFM was more likely consistent and significant obstacles the poor face in tapping the to fail. Clearly defined forest boundaries and clear rules for forest wealth of nature. In fact, rural poverty is strongly associated with use were other factors important to successful community weak property rights or outright landlessness (Cotula et al. 2006:7). management. All of these are features of robust property rights Creating the conditions for "ownership" and community buy-in to regimes (Pagdee et al. 2006:43­45, 49). nature-based enterprises thus requires wrestling early on with the issue of tenure. The link between successful enterprise and property rights is well established. Those with secure land and resource rights have Challenges to Security a reasonable expectation that they will benefit from the use of their While the benefits of secure tenure are clear, achieving it is often "property" and are more willing to invest time and money to exceedingly difficult for the poor. Tenure regimes are complex and 50 OW B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N INEQUITABLE ACCESS TO LAND AND NATURAL RESOURCES, 2005 NERSHIP Inequitable Access to Land and Natural Resources, 2005 Moderately severe concern, merits monitoring Serious concern, merits intervention Extremely serious concern, merits urgent attention Not ranked Source: USAID and ARD, Inc. 2008 Responsibility for validating and enforcing customary FIGURE 1 SUCCESS RATE OF COMMUNITY FOREST tenure systems rests with customary authorities such as village MANAGEMENT (CFM) IN 49 COMMUNITIES STUDIED elders and tribal chiefs. These systems can be complex, recogniz- 100% ing multiple, sometimes overlapping, rights over the same land or 100% resource. For example, a person may have the right to build a MF 80% house or grow crops on a piece of land but not to sell it, or the Cfo right to graze cattle on a piece of pasture during certain months etar 60% of the year while another person farms it in other months (Toulmin 2005:33­34). As long as the local institutions that sseccuS 40% recognize and enforce customary tenure remain strong and 38% unchallenged, research confirms that customary property rights 20% *of 7 *of 42 can provide the security landholders need to make long-term communities communities evaluated evaluated investments (Toulmin 2005:29; van den Brink et al. 2006:5). 0% Tenure Security Tenure Security Unfortunately, customary property rights often overlap state- Present Absent sanctioned tenure systems, with a single parcel or resource claimed Source: Pagdee et al. 2006:45 under both systems. The state does not recognize customary title the sources of tenure insecurity are many. One particular in many of these cases--although this is beginning to change-- challenge is the mismatch between modern systems of formalized and the result has been conflict over competing claims and loss of legal tenure and the systems of informal customary tenure that still tenure security (van den Brink et al. 2006:14). In many cases, these prevail in many rural areas. Modern tenure systems are generally customary tenure rights take the form of communal rights, based on registered titles that give property owners legally recog- meaning they are held in common by a group, tribe, or village, nized rights sanctioned and enforced by the state. which may allocate different land rights to individuals within the However, formally codified property rights are uncommon in group or to the group as a whole. This provides another point of many rural communities. Access to land in these areas often comes potential conflict with state tenure systems, where titles are usually through social networks, kinship, inheritance, and other customary granted to individuals (van den Brink et al. 2006:5­6). means that bypass the official recognition of the state. Titled property rights in Africa, for example, are still rare, and most land State Claims to Land falls under customary tenure. In West Africa, only 2­3 percent One of the most frequent sources of tenure conflict is when the of all land is held by formal written title--and most of that is state itself claims title to lands and resources long considered by in urban areas or covers higher-value lands such as those near local people to be their own, including forestland, fisheries, and irrigation systems or other infrastructure (Toulmin 2005:34; van other common pool resources. States routinely grant logging, den Brink et al. 2006:5). mining, or fishing concessions to commercial interests without 51 PIHSREN W O R L D R E S O U R C E S 2 0 0 8 WO consultation and with little or no compensation to local inhabi- Tenure Innovations tants. Often these are precisely the lands and resources to which Many governments today are aware of the importance of the poor require access in order to pursue ecosystem enterprises tenure security to poverty alleviation and economic growth. In (Toulmin 2005:31; van den Brink et al. 2006:14). a 2005 study of 18 recent national anti-poverty strategies, the At the same time, new market forces, demographic trends, International Institute for Environment and Development and land uses have destabilized many customary tenure found that 13 countries made explicit reference to the connection regimes. Population growth means that more people are vying between poverty and the lack of access to land. As a consequence, for access to land and resource rights in most areas. Modern many countries are experimenting with tenure reform, revising markets for cash crops, timber, and minerals have also encour- the ways they recognize individual and collective rights to land aged intensification of land uses. In many areas--particularly and resources (Cotula et al. 2006:12; Toulmin 2005:35). near urban centers and lands with high-value resources--land Rural people and governments alike realize that there is an markets have developed that directly compete with traditional increasing need to formalize their property rights in a way that methods of land exchange and allocation of resource rights is legally recognized. To be truly secure, a property right today (IIED 2006:2­3; Toulmin 2005:29­31, 34). requires two forms of recognition. It must first be seen as legit- For example, in regions of Ghana where land competition is imate in the eyes of the community, which must respect the most intense, once-secure inheritance rights over land have begun property rights on a daily basis. But it must also be legally recog- to break down, with older family members increasingly leasing out nized by the state and thus capable of weathering a competing family land for income rather than passing it on, resulting in rising claim. While legal recognition may not matter so much if the landlessness among the young. In other instances, agribusiness land is not under pressure and customary tenure arrangements firms have worked with local Ghanaian chiefs to expropriate are still strong, it is essential where local land markets are active family farming land for conversion to cash crops such as palm oil or there is strong interest in the land or resource rights at issue plantations. The result is increasing distortions of customary (Cotula et al. 2006:23). Moreover, where communities seek tenure practices and a trend toward privatizing land and resource secure access to natural resources claimed by the state as a basis uses to fit the market economy, with the impact falling hardest on for environmental enterprise, a formalized agreement between those with the weakest property rights: the young, the old, women, the community and the state that spells out the community's use and the poor (van den Brink et al. 2006:9; IIED 2006:2­3). and management rights is essential. 52 OW B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N In the 1970s and 1980s, efforts to make tenure more secure law and often to recognize it through various forms of registration. in Africa, Asia, and Latin America focused on large-scale land- On the other hand, under Mozambique's 1997 land law, custom- titling programs, emphasizing formal land registration and ary use rights are protected whether they have been registered or individual title deeds backed by detailed surveys of property not. The law also mandates that communities be consulted when NERSHIP boundaries (cadastral surveys). This approach brought some investment projects are proposed within their jurisdiction and be success in Latin America and Asia. In Nicaragua, Ecuador, and given the right of first refusal (Cotula et al. 2006:21; IIED 2006:7). Venezuela, research shows that registration of land has brought One potential problem with blanket recognition of customary higher agricultural investment and land values, while Thailand's tenure is that it may formalize existing inequalities in customary titling program has increased productivity and investment on tenure arrangements, which often concentrate land rights in titled farm land (Cotula et al. 2006:20; van den Brink et al. authorities such as tribal chiefs (Ribot 2008). 2006:19­20; Feder 2002: 15, 18; Deininger 2003:42­51). In general, however, traditional titling efforts have not Rights for the Landless proved to be an effective and cost-efficient approach, particularly A comprehensive approach to increasing tenure security must also in Africa. They tend to be too expensive, time-consuming, and serve those who don't own land. Land leasing arrangements, for bureaucratically complex and therefore not very accessible to the example, are an important form of land access for many rural poor. In 1985, Ghana enacted a registration law intended to help families. Tenure experts point out that full, titled ownership is not formalize all interests in land, whether under customary tenure or always required to give secure access to land and resources. Longer- the nation's common law tenure. But the country's registry has term lease or tenant arrangements can also provide security and not been able to process applications quickly enough and a large flexibility at much lower cost than land purchases, making them a backlog remains. In addition, poor quality control in the registra- good entry point for many poor families to increase their land and tion process led to 30,000 disputed titles as of 2000 (Cotula et al. resource access. Sometimes, NGOs can play a useful intermediary 2006: 20­22; Toulmin 2005:46; van den Brink et al. 2006:12­13). role in helping the poor negotiate land leases. In the Indian state of Titling also brings with it other challenges and unintended Andhra Pradesh, an NGO called the Deccan Development Society consequences. Experience shows that local elites often try to take has helped lower-caste women lease underutilized private land on advantage of the titling process to grab land or to influence the a tenancy basis (Cotula et al. 2006:25). registration process in their favor, such as by registering common Finally, any approach to more secure tenure must include the lands in their own name. Titling may also work against margin- development of more effective systems to resolve land disputes. alized groups, such as widows or the poor, who may not have the Often, several different courts and land dispute tribunals--some time, money, or technical understanding to protect their interests part of the national legal system and some operating under against those with more influence or contacts. Titling may even customary law--operate in the same jurisdiction without coordi- increase land conflicts--at least in the short term--as people nation. Those with conflicts often go "forum shopping," looking with latent disputes realize that registration will be a decisive step for the venue where they feel they will get the most favorable in deciding who holds property rights over a given piece of land ruling. The result is that many land disputes are never fully or resource (Cotula et al. 2006:20). resolved in a manner that is binding or accepted by all parties. A functional dispute resolution system must include both customary Using Local Institutions and statutory mechanisms within a single framework, with the As a result, the thinking on how best to improve tenure security has connection between the two clearly established (von Benda- now shifted away from wholesale replacement of customary tenure Beckmann 1981; Cotula et al. 2006:23). with formal titles. The current consensus is that a broader approach is necessary that builds on local tenure practices and uses local institu- Forests: Leading Tenure Progress tions to help execute simpler forms of land and resource registration How quickly such approaches can be applied to bring measurable open to a broader range of rural families. Such registration can be increases in resource tenure security is uncertain. But it is clear that much lower-cost and can offer an intermediate level of formalization fundamental changes in the tenure landscape are already under that provides a measurable increase in security (Cotula et al. 2006: way, particularly with respect to state-owned resources such as 21­22; van den Brink et al. 2006:14). In Niger, for example, the forests. Forest tenure has changed substantially in the last few government has instituted a community-based system for registering decades, with the area of forest administered by communities local land rights in the Mirriah region by creating Village Land doubling in the past 15 years alone to 25 percent of all developing- Commissions. The five-person committees publicize the requests they country forests (White et al. 2007:15) New legislation and reforms receive for land registration and, if a request is not contested, they now taking place suggest that this increase may continue, with record it in the village land register (Toulmin 2005:48). some experts predicting the percentage of community forests may Another key to increasing tenure security is rectifying national double again by 2020. For instance, in 2006, the Indian parlia- tenure laws so that they recognize local customary land rights. ment passed legislation recognizing the land and use rights of Countries such as Uganda, Mozambique, Tanzania, Niger, and indigenous tribes and other traditional forest dwellers. Meanwhile, Namibia have all made efforts to protect such customary tenure in the Indonesian government indicated it would allocate 60 percent 53 PIHSREN W O R L D R E S O U R C E S 2 0 0 8 noted that drinking water or sewer projects that were planned FIGURE 2 GROWTH IN COMMUNITY FOREST and executed without consultation with local communities often OWNERSHIP WORLDWIDE, 1985-2002 failed to meet community needs and subsequently were under- WO used and poorly maintained. In contrast, projects that responded aeratserof 400 to focused community demand and involved the community in design, construction, and maintenance had a better performance and cost-recovery record (Deverill et al. 2002:2­3; Breslin denwoyllanu )seratceh 300 2003:1­10). These lessons provided the groundwork of experi- 200 noilli ence for the community-driven development approach and a point of reference for examining the structure of demand. m(100 m moC The Structure of Demand for Rural Enterprise 0 1985 2002 In the realm of community development, demand can be defined Source: White and Martin 2002: 11 as "an informed expression of desire for a particular service, measured by the contribution people are willing and able to make to receive this service" (Deverill 2000:1). A "contribution" often of its degraded state forestlands to communities, and the head of includes time and effort, not just goods and money. For nature- China's State Forest Administration said that strengthening local based enterprises, the service involved is an ecosystem service, property rights was a top priority (White et al. 2007:15; White and such as increased agricultural production, the provision of timber Martin 2002:4-7; Lok Sabha 2006). or non-timber forest products (NTFPs), higher fisheries produc- How this will play out in terms of actual increases in forest- tion, or landscapes and species that attract tourists. based enterprises is again unknown. There is often a significant Demand is not static; it develops with changes in the difference between policy and practice on the ground, and the community and the resource base. Among some groups, demand nature of the tenure rights granted to communities varies widely, for jointly managing ecosystems has deep historical roots, but it from substantive to shallow. In addition, there are many require- has often broken down as modern tenure patterns and economic ments for successful enterprise beyond resource access. forces have disrupted traditional ways. In other instances, degra- Nonetheless, current trends show that governments are increas- dation of the resource base or new opportunities for resource ingly aware that ecosystem resources have considerable potential exploitation offer conditions for the demand for community to contribute to rural development if progress on the issue of resource management to arise. resource tenure can be made (White et al. 2007:15). Development of local demand can be envisioned in three stages. First, there is a change, or initiating event in the commu- nity. Second, participants decide whether or not to respond to this change. This usually involves deliberation among the Local Demand and Commitment community members, with individuals weighing the costs and benefits to themselves. Third, the participants decide how to Successful ecosystem-based enterprises arise out of an expressed address the problem. These stages are iterative and not discrete demand from the community. Secure resource rights alone are from one another, as people constantly update their information not sufficient. There must be the desire and willingness to use and weigh the consequences of participation or nonparticipa- these rights to jointly manage ecosystems, reflecting the belief tion (White and Runge 1995:1685). that doing so will benefit individuals and the group. (See Box 2.2.) The initiating event that leads to demand for a new ecosys- Demand manifests itself as community consensus on the need to tem enterprise can come from a number of sources: a change in act and a commitment on the part of the majority of stakehold- the information available, a change in the local environment or ers to adhere to an agreed action plan. Without this kind of economy, a change in the financial incentives for investment, or demand from the community, ecosystem enterprises are likely to a change in resource rights or access that makes resources more fail; people will not maintain projects or adhere to management available. A dynamic community leader who can put the change plans over the long term that they do not want or do not consider in perspective and advocate for action is often an important part fair. Similarly, by requiring commitments and investments--of of the mix. In many cases, several of these factors work in labor, money, or other resources--community-based enterprise concert to create the perception that a new opportunity is at encourages a sense of local ownership, in turn engendering hand. In the end, the decision whether to act on this opportu- sustained involvement on the part of participants. nity is a function of available information, community Insights on the importance of community demand for dynamics, and the perceived costs of action versus inaction success in development efforts first arose out of experience with (Lobo 2007; White and Runge 1995:1685). water and sanitation projects in the 1970s and 1980s. Authorities 54 OW B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N Resource Degradation other communities have gained by managing their watershed, A decline in the status or productivity of a local natural resource forest, or fishing grounds differently--is often quick and persua- is frequently a significant factor in generating community demand. sive. In Niger, where NGOs initially helped farmers to regenerate A sudden drop in fish catches or the depletion of a certain stock of trees and implement basic soil and water conservation practices, NERSHIP tree may spur community members to act or to be more receptive the visible and rapid yield increases created by these practices to new approaches to managing the resource, particularly if the inspired neighboring farmers to follow suit. The spread has been resource is or was an important part of the household income described as "viral," with the techniques now used widely across stream. The decline in the resource must take place over a short Niger. (See Chapter 3: Turning Back the Desert: How Farmers enough time span to be noticeable; if changes are too gradual, Have Transformed Niger's Landscapes and Livelihoods.) individuals may not perceive the events as serious enough at any However, seeing demonstration projects in person is not the one point in time to justify action (White and Runge 1995:1685). only way that villagers can get new information. Street fairs, While serious resource degradation may build demand to address theater, radio broadcasts, pamphlets, posters, and video presenta- the loss of resources, this demand alone may not be sufficient to tions can all broadcast possibilities, shift consciousnesses, and spur action without a convincing alternative at hand. change tastes, making people more aware of options for action (Lobo 2007). Awards and prizes that recognize good practices can Changing Information also be an effective tool for delivering new information and gener- Information is always a critical variable in the demand equation. ating demand. The Equator Prize of the UN Development What people know about the changing resource situation in their Programme (UNDP), which profiles and rewards successful community, new opportunities for using resources, or the poten- ecosystem enterprises, has had a substantial demonstration effect tial return on a new investment is usually the deciding factor in since its establishment in 2002 (UNDP 2008a). (See Box 2.1.) whether they consent to community resource management. New This emphasizes the important role that communication plays in information can come from a variety of sources, with demonstra- building demand at the village level. In most cases, being an effec- tions and pilot projects being particularly effective in conveying tive advocate for community resource management requires an alternative to the status quo. The "demonstration effect"-- some mastery of communication tools and forums. when villagers or their leaders see for themselves the benefits that Engaged Leadership Effective leaders are able to understand the forces for change in a community, express a guiding vision, offer alternatives for action, and organize their constituents first to make a choice between alternatives and then to carry through on their choice. In this sense, leaders provide both the spark of demand and also a stabi- lizing force connecting demand to collective action. In the beginning, a leader's personal charisma may be crucial in selling the vision for action and arousing the willingness to make a commitment to a new resource management scheme. Because of their position, education, and experience, leaders can confer legit- imacy to a proposed line of action or doom it if they find it unacceptable. Because of their connections to those in power (a form of bridging social capital), they can also communicate this legitimacy to external sources of funding or support. Particularly in those situations where a new management regime or enterprise is stimulated by outside actors (NGOs, governments, etc.), the development of local leaders with the capacity to function within the community according to its norms greatly increases the chances for success (Seymour 1994: 481­486). New Incentives or Resource Access Factors originating outside the community, such as changes in state tenure policies or the availability of state or international funds to support a change in resource management, can also be powerful inducements for change. Namibia's conservancies could not take off until the national legislature enacted the Nature Conservation Act in 1996 that devolved wildlife tenure to local groups. Likewise, the widespread adoption of new watershed management practices Continues on page 61 55 BOX 2.1 LESSONS FROM THE EQUATOR INITIATIVE: BEST PRACTICE IN LOCAL ECOSYSTEM-BASED THE EQUATOR INITIATIVE OF THE UNITED Nations Preconditions for Success Development Programme (UNDP) champions community efforts to link socioeconomic development and income generation with In order for EBEs to begin to grow and flourish, the stakeholders the conservation and sustainable use of natural resources. The involved must recognize the economic value of ecosystem- Initiative's name comes from the observation that the most derived resources and also be knowledgeable about how to use biologically diverse ecosystems and the most acute levels of these resources to improve local livelihoods. Then EBEs require poverty overlap within the equatorial belt. Bringing together the firm rights to the resource or need to have land (or water) tenure United Nations, local communities, civil society, businesses, and over its use. Without well-established and defensible rights, governments, the Initiative supports community-based organiza- EBEs cannot make and enforce resource use rules. This is a tions and local ecosystem-based enterprises (EBEs) by providing basic defining principle for success: EBEs must have access to knowledge management services, documenting best practices, a secure natural resource base and the right to benefit from its and expanding access to policymaking processes that have been use. This is a necessary but not a sufficient condition for EBE recognized as integral to achieving the Millennium Development success (Berkes and Davidson-Hunt 2007:219). Goals (Hooper et al. 2005:142). Another major precondition for success is the availability of Since its launch in 2002, the Equator Initiative has accumu- sufficient start-up capital and access to financial services, with lated a wealth of knowledge on local best practices through the the amounts needed dependent on the scale and ambition of Equator Prize, an international award that recognizes outstand- those involved in the early stages of a project. This "seed ing local efforts within the equatorial region to reduce poverty money" is often in the form of grants. The Equator Initiative through improved environmental stewardship. The selection experience has indicated that small grants with few or no condi- process is by design a mechanism to identify best practice. tions (no strings attached) may show better results than large Nominations are evaluated by an experienced technical advisory grants during the start-up phase. Large grants create the need committee whose members have diverse areas of expertise. for a higher level of financial management capacity to meet Winners, which have ranged between five and seven organiza- many bureaucratic requirements (UNDP 2005:13). tions in the past, are selected by a jury of preeminent individuals in the fields of conservation and development. To distill lessons learned from the process, an ongoing research Increasing Access to Markets program reports on Equator Prize finalists and winners. Researchers from the University of Manitoba and the International and Overcoming Barriers to Entry Development Research Centre have worked firsthand with Equator Prize finalist communities to document and analyze their experi- EBEs are most successful when they engage in innovative ences. They have identified a number of necessary conditions and strategies to increase access to markets, finding ways to best practices for successful community-based EBEs (NRI 2007). overcome the obstacles they face in the form of local and national regulations, international trade laws, lack of product demand, and channels of distribution (UNDP 2005:24). These Honey Care Africa, Ltd. in Kenya, 2002 Equator Prize Finalist obstacles also include physical barriers to getting products to market, such as a lack of roads, bridges, or means of trans- portation, as well as barriers to knowledge and insight, such as the value of marketing and the need to limit the number of individuals in a value chain in order to capture as much profit as possible for the local community. Alimentos Nutri-Naturales, an Equator Prize 2006 winner from Guatemala, was founded by 56 women from nine communities in the buffer zone of the Maya Biosphere Reserve. It is completely owned and managed by women. It has successfully overcome barriers to market access through local product sourcing and selling. The women have created a local niche market for the Maya nut, a traditional staple food, whose use had become infre- quent and which was becoming threatened by habitat destruction. Sustainable local production and sales, which are 56 ENTREPRENEURSHIP cost-effective and locally manageable, have allowed the women increase community funds by entering into a partnership with a of Alimentos Nutri-Naturales to successfully improve local liveli- private investor who brought in start-up capital, international hoods and food security. One significant way they have created hotel standards, and marketing and management skills to demand is through a partnership with a school lunch program, establish a luxury eco-lodge. The Shompole Lodge works in whereby biscuits made from Maya nut flour are included in the close cooperation with the Maasai community, offering local lunches provided to local schoolchildren (UNDP 2007). employment and training opportunities. Hotel visitors generate a monthly average income of US$2,000­5,000 that the community invests in social development activities and biodi- Cross-Scale Linkages versity conservation. At the same time, the lodge operations benefit from the Maasai's traditional expertise in managing Horizontal Linkages their ancestral land and wildlife, ensuring a steady flow of The Equator Initiative experience has shown that some prize ecotourists. Shompole's ability to partner from the community finalists and winners may have 20 or more partners who assume level with a corporate entity that works at the national level, and different roles at different phases of program development. to use this linkage to attract an international clientele and Research shows that at least 8­12 partners are needed to national and international media attention, has been a signifi- provide the levels and kinds of support required to meet all the cant driver of the Trust's success (UNDP 2002, 2007). technical, capacity-building, educational, infrastructural, legal, and marketing needs for program or enterprise growth (Berkes and Adhikari 2006:687; Berkes 2007:15190). Leadership The Village of Andavadoaka in Madagascar, a winner of the 2006 Equator Prize, reacted to declining populations of Effective leaders and leadership teams are integral to bridging octopus, the traditional source of local livelihood, by partnering levels and to building and maintaining partnerships. The with marine conservationists to stabilize the species and imple- Equator Initiative has worked closely with representatives of ment a seasonal ban on octopus fishing. The successful prize finalist and winning communities and has found that partnership encouraged nearby villagers to join Andavadoaka's these leaders consistently demonstrate an ability to operate in efforts, resulting in a regional community network that is different contexts and across different horizontal and vertical working to preserve local coral reefs and manage aquatic levels. They tend to think systematically about the design of wildlife populations. To further bolster local livelihoods, the their enterprises, and they catalyze innovative thinking, facili- villagers in this remote isolated area have begun to explore tate communications, and initiate organizational learning ecotourism options in partnership with a UK-based NGO, and a (Timmer 2004:4). new resort was scheduled to open in late 2007. The overall success of the village's efforts is tied to its work with a number Honey Care Africa, an Equator Prize 2002 finalist, illustrates of partners: a national academic institution, two international the importance of effective leadership in sustaining successful NGOs, a variety of national government agencies, a private- enterprises. Honey Care was established in 2000 as a social sector fishing company, and more than a dozen neighboring venture to promote local economic development through communities (UNDP 2007; Heid and Streets 2006:4­7). community-based beekeeping across East Africa. Since then, it has helped more than 9,000 rural beekeepers (over 40 percent of whom are women) earn a supplementary income of Vertical Linkages US$180­250 per year--often the difference between living Research has shown that successful Equator Prize finalists and above or below the poverty line. winners are often connected across four or five levels (commu- nity, regional, national, multinational, international) and also Farouk Jiwa and his co-founders use a holistic strategy for demonstrate a system of co-management across the different development: in addition to providing beehives to rural farmers levels, with vertically integrated responsibilities for program and guaranteeing to purchase the honey that is produced, they management. If the number of levels a program extends across have also established tree planting and tree nursery programs, is truncated, the likelihood of success is diminished (Berkes using the pollinating habits of the bees to improve local ecosys- and Adhikari 2006:687,688). tems. In addition, Honey Care's leaders have created strong networks, partnering with NGOs and donors to support training The Shompole Community Trust, a winner of the 2006 Equator in sustainable beekeeping and long-term relationships with Prize, belongs to the indigenous Maasai people in Kenya. It has product retailers abroad. The enterprise's leaders were also been successful in part because it was able to significantly willing to take calculated risks, introducing the latest beekeep- Continues on page 60 57 BOX 2.1 LESSONS FROM THE EQUATOR INITIATIVE SUCCESSFUL ECOSYSTEM-BASED ENTERPRISES: SELECTED EQUATOR PRIZE FINALISTS Ecosystem-Based Product or Description Benefits Enterprise Service Provided A F R I C A Pole Pole Foundation Crafts, carvings, tree Based in Kahuzi-Biega National Park, Pole Since 1997, Pole Pole has planted more than Democratic Republic nursery, timber, non- Pole Foundation provides capacity-building 426,000 trees, which communities use for timber, of the Congo timber forest products, in local communities, including those of firewood, and construction projects. Pygmy women Founded: 1992 construction projects, displaced pygmies, through wood-carving harvest crops and have started at least 140 small 2006 Equator Prize Finalist crop harvesting programs called "poachers to artisans," businesses. More than 135 children have been environmental education, farming and supported for three years at a school built by breeding, and reforestation. the organization. Honey Care Africa, Ltd. Honey Honey Care supplies hives and apiculture Some 2,000 households care for 10,000 hives and Kenya training to communities, farmers, and organi- earn $200­250 per year in supplemental income. Founded: 2000 zations and assures them that it will purchase 2002 Equator Prize Finalist all the honey they produce for a competitive price. Foundations support the initiative by providing start-up funds to the farmers. Shompole Tourism This Maasai Community enterprise includes The trust has more than 2,000 registered members. Community Trust a community-owned and -managed 10,000 The lodge offers 70 percent of its permanent jobs to Kenya ha conservation area that is patrolled by community members, with priority given to the Founded: 2001 trained local game scouts. The conservation poorest. In addition, it provides the community with 2006 Equator Prize Winner area strategy is designed to decrease US$2000­5000 per month in profits, which are used poaching and improve environmental condi- to pay for health care, water, and teacher salaries. tions, including reforestation and wetland Wildlife numbers on the reserve tripled between 2001 restoration. The community collectively and 2004, and small enterprises have spun off from owns 30 percent of an eco-lodge they have the tourism venture. http://www.shompole.com/ helped to establish. A S I A - P A C I F I C Ngata Toro Community Tourism, artisanal The indigenous Masyarakat Adat of Ngata Ngata Toro has revived and implemented customary Indonesia crafts, furniture making Toro village live within Lore Lindu National laws to ensure sustainable extraction of natural Founded: 1993 Park. After being granted resource use rights resources. They have established duck, pig, and fish 2004 Equator Prize Finalist in the park in 2000, the Ngata Toro commu- farming, implemented organic farming practices, and nity established an ecotourism enterprise developed value-added rattan, bamboo, and tree-bark and complementary agriculture and handi- product enterprises. They now host other indigenous crafts enterprises. communities to share knowledge. Genetic Resource, Energy, Seeds, garden produce Developed to increase food security among GREEN established 31 community seed banks Ecology and Nutrition farmers in the state of Karnataka, GREEN managed by women farmers, who earn an average of (GREEN) Foundation facilitates the creation of seed and gene US$52 per year from their work with the seeds. The India banks of indigenous varieties of millet, rice, number of farmers participating in the seed conser- Founded: 1992 and various vegetables and leads farmer vation program has grown from 10 in 1992 to more 2004 Equator Prize Winner knowledge exchanges and agricultural than 1,500 farmers across Karnataka. education programs. 58 SUCCESSFUL ECOSYSTEM-BASED ENTERPRISES: SELECTED EQUATOR PRIZE FINALISTS (CONTINUED) Ecosystem-Based Product or Description Benefits Enterprise Service Provided Center for Empowerment Fish CERD began a program in Hinatuan Bay in FIRMED established seven fish sanctuaries, and Resource Development Surigao del Sur called Fishery Integrated restored 117 ha of mangroves, and successfully (CERD) Resource Management for Economic Develop- lobbied for reforms on local fishing laws. Between Philippines ment (FIRMED). The program established a plan 2003 and 2005 the number of families engaged in Founded: 1996 among local villages to rehabilitate and conserve fishing increased by a third while average fish 2006 Equator Prize Finalist fishing resources. catches have increased by 50 percent. Average household income from fishing has doubled within the community, and income from seaweed farming also more than doubled. Sepik Wetlands Crocodile eggs Communities around the wetlands developed a A strong rise in the crocodile population helped Management Initiative and related written contract setting guidelines for sustain- Sepik communities earn more than US$90,000 per Papua New Guinea products able harvest of crocodile eggs, as well as year from the sale of eggs, skins, and young Founded: 1998 protective measures for nesting crocodiles and crocodiles. Revenue goes into a communal fund 2006 Equator Prize Finalist their habitat. They have implemented a commu- that is distributed among community members nal monitoring and enforcement program to and pays for school fees. secure the contract's benefits. L A T I N A M E R I C A - C A R I B B E A N AmazonLife Treetap cloth ® AmazonLife markets Treetap, a cotton fabric ® As of 2006, some 200 families supplied the Brazil product line, drenched in natural latex that is extracted from rubber for Treetap , and AmazonLife was selling ® Founded: 1994 including bags, wild rubber trees. The cloth producers are co- 40,000 sheets of rubber laminates each year at 2002 Equator Prize Finalist garments, and owners of the patented process. The company 10 times the price that local producers had previ- footwear contracts third parties in Rio de Janeiro to ously received. produce bags, backpacks, briefcases, hats, and footwear with the fabric that are sold nationally http://www.amazonlife.com and internationally. Alimentos Maya nuts and In this enterprise women harvest the high-protein Alimentos Nutri-Naturales brings an annual income Nutri-Naturales maya nut products maya nut from trees in the rainforests and of US$24,000 to seven rural communities. The Guatemala process it at home into whole grain maya nut broader maya nut rejuvenation project helps 600 Founded: 2001 seeds and flour, drink mix, pancake families from 21 communities in Central America 2006 Equator Prize Winner mix, and cereal. They then jointly market the maya to earn more than US$200 per year. The workers nut products. The group is just one of three have conserved 90,000 ha of maya nut forests and women's maya nut enterprises formed in Central planted 400,000 new trees. Consumption of maya America with technical support provided by a nut products has also improved local nutrition due http://www.theequilibriumfund.org/ regional NGO. to its high protein content. Quibdo Women's Network of Medicinal plants, This community-based enterprise consists of Forty-two families directly benefit from the Medicinal Plant Producers spices women who grow vegetables, herbs, and medici- network. The women's average annual incomes and Marketeres nal and aromatic plants in their home gardens have grown from US$409 per year prior to the (Red de Mujeres Productoras y and in a 2.25-ha community garden. The enterprise to US$2,863 per year. Comercializadoras de Plantas women's network uses sustainable agricultural Medicinales de Quibdo) practices, makes and markets compost, and Colombia coordinates a seed bank. The women and their Founded: 1997 husbands have built a central storage facility 2004 Equator Prize Finalist and a processing plant for their produce. Source: UNDP 2007 59 BOX 2.1 LESSONS FROM THE EQUATOR INITIATIVE ing technology to ensure high-quality honey. Their solid leader- vation Network and the Central American Sea Turtle Conservation ship has created a successful and sustainable enterprise Network, for instance, have influenced the development of local model. Today, Honey Care Africa is the region's largest producer and national policies to protect the area's sea turtle population. The of quality honey and continues to expand its operations, selling Initiative's advocacy efforts have contributed as well to the its Fair Trade and ecologically certified honey locally and adoption of rural tourism as the fourth pillar of Costa Rica's tourism abroad (Timmer 2004:15­18). marketing plan and the passage of a law to promote organic production methods. Most recently, the Talamanca Initiative has created the National Cacao Chamber (CANACACAO), a multistake- holder group that aims to influence the Costa Rican government to Scalability use traditional cacao production techniques nationwide (Asociación ANAI 2006). The vertical and horizontal linkages and leadership conditions for success also apply to scalability. Hooper et al. examined the experiences of Equator Prize finalists and winners and found that their success was defined in large part by their ability to Conclusion scale up their efforts (Hooper et al. 2005:141­142). Scaling up can be defined as "bringing more quality benefits to more Over the past five years, the Equator Initiative has received more people over a wider geographical area more quickly, more than 1,000 nominations for the Equator Prize. Of these, 75 equitably, and more lastingly" (IIRR 2000). Scaling up can community initiatives stand out as exemplary cases of commu- take place functionally, in terms of broadening the types of nity-level efforts to conserve biological diversity, alleviate activities undertaken; quantitatively, in terms of increasing poverty, and ultimately contribute to achieving the Millennium participation and scope; organizationally, in terms of increased Development Goals. In partnership with academic institutions effectiveness and efficiency of operations; or politically, in and research organizations, the Initiative has learned from the terms of a better ability to engage in political processes in order experiences of these successful community groups and local to benefit initiative stakeholders (Hooper et al. 2005: 131- EBEs. Analysis shows that local initiatives are most successful 132). The Shompole Community Trust, for example, has shown when there is a collective understanding of the value of ecosys- functional and organizational scalability, while Honey Care tem-derived resources, secure property rights to these resources, Africa has shown strong quantitative scalability. low barriers to market participation, multiple beneficial partner- ships, and strong effective leadership. EBEs, when developed The experiences of Costa Rica's Talamanca Initiative, an Equator with sustainability in mind and operated for the benefit of Prize 2002 winner, demonstrate the potential for political scalabil- communities, are a powerful tool in international efforts to ity. The Initiative is an alliance of more than 20 community-based protect the environment and promote human development. organizations committed to bringing environmental and socioeco- nomic benefits to the Talamanca region. It has also provided This box was written by Elspeth Halverson and Gabriela Tobler, Programme Officers at leadership at many levels beyond the region by establishing and the UNDP Equator Initiative. More information on the Equator Initiative is available at consolidating advocacy groups. The Costa Rican Sea Turtle Conser- www.undp.org/equatorinitiative. Alimentos Nutri-Naturales (ANN) in Guatemala, 2006 Equator Prize Winner 60 OW B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N in India did not occur until the government made village-level venture to succeed. It is essentially the "down payment" on the grants available for undertaking such work. In these situations, community's expression of demand. demand arose when information about the new opportunity circu- Commitment can take many forms in the context of nature- lated to eligible communities through local NGOs and other based enterprises. It may be a contract, a public promise, or a NERSHIP intermediaries. (See Update in Chapter 1: Scaling Up Namibia's demonstration of involvement, with participants all bringing some Community Conservancies.) As with resource degradation, policy form of goods, service, or money to offer. It can be a contribution changes and other incentives from outside rarely create sufficient of time or labor, as when members of a forest user group in Nepal demand by themselves to lead to action without the advocacy of a volunteer to patrol the forest on a rotating basis to guard against leader or other trusted intermediary who can demonstrate how illegal entry or when Indian villagers undertaking watershed these new policies or funds can translate to local benefits. restoration activities dig contour trenches together to stop monsoon rains from cascading down the bare slopes. It can also take the form of a monetary contribution used to finance some or From Demand to Commitment all of the costs of the new resource management effort. The important thing is that the commitment must take a tangible form Local commitment is essential to ensure that a community is really of recognized value. And to have maximum effect, it must be invested in the success of an ecosystem-based enterprise. Whereas made early in the evolution of the new management effort. demand is the expressed desire to engage in an enterprise, based In addition, commitment must be public to be effective. In this on the projected benefits and costs, commitment is the demon- way, community members can hold each other accountable for strated intent of each stakeholder to carry out their respective their promise. An important benefit of this accountability is that, parts of the project and to make the sacrifices necessary for the over time, as participants make good on their commitments, trust within the group grows, increasing the group's social capital and making communication and coordination among members easier. Communities as Investors Without local investment of something of value or a commitment to make a sacrifice, participation in community natural resource management over the longer term is likely to be uncertain. In contrast, by investing in a community undertaking, beneficiaries change its nature. The enterprise moves from something "received" to something "earned." Community members, as active participants, are freer to negotiate for what they want in a project before they contribute their money, time, or goods. In this sense, a show of local commitment opens a path of communica- tion among both community members and outside funders or support organizations, so that the needs and suggestions of partic- ipants are taken seriously. Commitment turns community members into active investors (Breslin 2003:1­9). In concept, the commitment necessary for a nature-based enterprise is similar to the co-financing arrangements that have become common practice in most community-driven infrastruc- ture projects. The World Bank's Ghana Community Water and Sanitation Project, for example, required communities to commit to 5 percent of the project costs to begin with and 100 percent of the operations and maintenance costs. Zambia requires communi- ties to contribute 15 percent of financing costs (with exceptions for particularly indigent communities). In middle-income countries, communities are expected to contribute greater amounts. In Brazil, communities must contribute 10 percent to subproject costs and 15 percent to infrastructure projects (Chebil and Haque 2003:129­130; Breslin 2003:1­9). Such a substantial monetary commitment may not be possi- ble for community-based resource management efforts that involve many poor families. In these cases, contributions of labor are often more appropriate. Sometimes this "labor" can take the 61 PIHSREN W O R L D R E S O U R C E S 2 0 0 8 form of simply adhering to a new ecosystem management regime FIGURE 3 INFLUENCE OF COMMUNITY RULES that calls for reducing harvest levels--a definite sacrifice for poor ON THE SUCCESS OF FOREST MANAGEMENT families whose dependence on the resource may be high. For (CFM) IN 69 COMMUNITIES WO example, participants in Bangladesh's MACH program (Manage- ment of Aquatic Ecosystems through Community Husbandry), 100% which sought to increase fish harvests for lakeside communities, MFCfo 80% had to forgo fishing in established sanctuaries, stop using certain fishing gear such as mesh nets, and curtail certain types of 70% 60% hunting and gathering. (See Chapter 3: Fisheries for the Future: etar *of 57 Restoring Wetland Livelihoods in Bangladesh.) The advantage communities 40% evaluated of using nonmonetary forms of commitment is that they tend to 0% increase actual involvement in the endeavor and create a shared sseccuS 20% *of 12 sense of effort and mutual sacrifice that furthers the group communities dynamic and increases the sustainability of the project. evaluated 0% Rules and Regulations Rules and Regulations Present Absent Source: Pagdee et al 2006:45 Inspiring Collective Action At the heart of joint management of natural resources is "collec- tive action" --the willingness to work collaboratively in the pursuit at an ecosystem-based enterprise. The social capital of the group of a common goal. This is what occurs when people decide that it greatly influences how effective it is in making and following is in their best interest to co-manage a community forest or fishery resource management rules. In the words of one researcher: "Trust or work together to insure that an irrigation system operates lubricates cooperation" (Pretty and Ward 2001:210). It reduces the properly. Most ecosystem-based enterprises depend for their "transaction costs" of working together, saving time, worry, and success on collective action because they make use of common money. Where social bonds are strong, the threat of social sanctions pool resources, where many users have access to the resource. alone is an effective means of rule enforcement (Pretty and Ward Collective action is essential to keep the resource from overex- 2001:210­217; Uphoff 1999:221­231). ploitation and to make sure benefits are fairly apportioned. This Experience working together as a group in the past also kind of collaboration is nothing new--groups have been engaging contributes to success. Those who already have some experience in collective resource management for millennia. However, many of the group dynamic are more likely to put their faith in new years of research have confirmed that some conditions are more enterprises that require collective action. It helps, too, if some favorable for inspiring and maintaining collective action than members of the group have previous experience with the others (Ostrom 1990:88­102; Meinzen-Dick and Di Gregorio benefits of a particular kind of collective action. This can act as 2004:1; Ostrom 2004:1­2; Agrawal 2001:1659). a strong motivator for continued participation in the group Demand is the starting point for collective action. Another endeavor and a source of inspiration for other group members. key condition is that the community or group must have the In a study of Haitian peasant groups who undertook joint authority to manage the resource. They must have the autonomy watershed management, those groups with at least some to create and enforce rules--whether formal or informal--for members who had experience adopting soil conservation resource use. Without this ability to apply their rules and make measures in the past were most likely to continue working them stick, the rationale for joint action quickly diminishes (Bruns together (White and Runge 1995:1690­1692). In Mozambique, and Bruns 2004:1). (See Figure 3.) the fishers of the Inhassoro community rapidly adopted a The will and ability to enforce rules is paramount. Groups fisheries co-management arrangement offered by the state in need the authority to set boundaries and control access to the 1995 because years earlier they had informally adopted closed resource and the means to monitor the resource for infractions. fishing seasons and other management practices on their own, The rules themselves must have some force behind them, whether and they knew the advantages and challenges of these practices. it is the threat of punishment, rewards for cooperative behavior, or They were primed for the opportunity when it came (Chuen- the threat of alienation from the group. To a certain extent, the pagdee and Jentoft 2007:661). details of the rules the group adopts matter less to the success of The proven value of experience, trust, and knowledge of the collective action than how well these rules are monitored and benefits to the success of collective action emphasizes the need to enforced (Bruns and Bruns 2004:1; Gibson et al. 2005:279­282; bring these elements into play early when forming nature-based Barrett et al. 2005:195). enterprises. Where these elements have not been previously Not surprisingly, social capital is a fundamental building block developed in the group, there is a pressing need to employ of effective collective action. When people in a group are linked by communication, demonstration, knowledge sharing, and trust- social bonds and share norms and social expectations they are building processes--the motivators behind demand--to fill the more likely to successfully manage a resource together and succeed void. Building the social capacity of the group to work together 62 OW B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N also requires embracing the idea and practice of participatory The Benefits of Participation processes, where each member of the group provides input and Since the mid-1970s, the use of participatory approaches to local has a voice in negotiations on the resource management rules development has become increasingly common (Pozzoni and and the general conduct of the ecosystem enterprise. Participa- Kumar 2005:v). One premise of community-driven development NERSHIP tion anchors the group in a common purpose and provides the is that broad-based participation is the key mechanism through means to resolve the disputes that inevitably arise in community which communities first define their development and investment resource management. priorities and then carry them out. This premise is based on years of experience showing that the more people are involved upstream in the process of planning and carrying out development projects, the more likely they are to contribute to the project and sustain Participatory Decision-Making it--to own it (World Bank 1996:8). The range of participatory methods is broad and, after more Participation in decisions about how and for what purpose local than 25 years of application at the community level, fairly well ecosystems should be managed is an essential part of creating a elaborated. At the initial planning stage of an ecosystem-based local stake in development. It is part and parcel of the process project, participation techniques often fall under the broad rubric of building demand for an ecosystem-based enterprise and a of participatory rural appraisals and can include such activities as crucial mechanism enabling community-based resource joint resource appraisals using mapping and modeling, focus management to succeed. group discussions, structured interviews carried out by an assess- Participatory decision-making allows local stakeholders to ment team deputized by the community, and various preference "own" the process of creating and directing environmental enter- ranking exercises (World Bank 1996:191­192). Ideally, the infor- prises and to specify how and to whom benefits from the enterprise mation, options, and preferences surfaced through these methods should be distributed. It is the dialogue through which local provide the basis for a community decision on how to proceed. demand is expressed and thus the basis for "buy-in" to the enter- Once the group decides on an activity, and on an institution--such prise and the management activities it requires. Without a as a watershed committee or a forest users group--to manage the mechanism for eliciting what stakeholders want and what they are activity, participation often becomes more structured and formal- willing to commit to, community-based resource management ized. For both these levels of participation, research and practice efforts can't be "community-driven." have confirmed several benefits. 63 PIHSREN W O R L D R E S O U R C E S 2 0 0 8 WO Greater Legitimacy, Equally important, the legitimacy granted to a participatory Greater Capacity, Better Implementation decision usually translates to greater compliance with the terms Participation by the range of stakeholders in the activity of the decision, such as fishing or harvest rules. This allows planning process and in the ongoing management of the activity people to make more informed commitments--commitments builds the legitimacy of resource and business decisions made. that they are more likely to keep (Andersson et al. 2005:67­71; Legitimacy translates to acceptance and "buy-in." Even where Fritsch and Newig 2006:3­5; World Bank 1996:5­6). there are clear winners and losers, the ownership built in the participatory process can lessen opposition and conflict when the decisions are implemented. Participation is Imperfect The process of successful participation is itself a learning Despite the known advantages of participation, it suffers from experience for most stakeholders--a process of social learning. documented weaknesses as well. Without conscious manage- Community members gain awareness of new opportunities and ment, these weaknesses can advantage certain groups at the become familiar with their possible costs and benefits. They often expense of others, diminishing the legitimacy of the decisions acquire new skills: some are technical, such as learning how to taken and the prospects for buy-in by the full array of stakeholders. monitor resource parameters and trends; others are interpersonal. Community members who otherwise might not have interacted The Poor Can Be Excluded have the chance to build relationships with one another, fostering Inclusiveness is a particular challenge for many participatory trust and social cohesion--the currency of social capital. Inclusive processes, with typically marginalized groups such as the poor and participation also deepens the community's democratic culture. women likely to be left out or their input discounted. Two dimen- Participation brings well-known empowerment benefits as sions of inclusion are essential for true participation. Formal well, such as confidence, increased social status, self-reliance, and inclusion is the ability for community members to take part in a satisfaction at being included in the decision-making process. It participatory process--to be present and allowed to speak up. may also help connect participants to government services, Substantive inclusion relates to the extent that this formal input is additional learning opportunities, or other resources of personal actually taken into consideration by others--how well a commu- benefit (Andersson et al. 2005:70). nity member's voice is really heard. Too often, the poor suffer a Increasing the legitimacy of a community decision-making double exclusion, with fewer poor families taking part in participa- process and the capacities of the participants leads to better imple- tory processes overall and, when they do take part, being regarded mentation of the project, management plan, or other resource as minority voices without authority. The participation of poor decision. Skills and knowledge developed through a participatory women is often a worst-case scenario. In a 1994 study of Nepal's process may give participants greater ability to contribute to the Forest User Groups, women only constituted 3.5 percent of all project activity, for example by being a monitor or advisor. members (Pozzoni and Kumar 2005:4­8; Dahal 1994:78). 64 OW B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N There are a number of factors behind the lack of participation same time, landless residents often bear the greatest costs of of the poor. For one, the costs in terms of time and transportation ecosystem management, particularly if it requires a temporary can be significant, while the immediate benefits of participating are decrease in their use of common pool resources like fodder, often uncertain, providing little incentive to take time away from woodfuel, building materials, or bush meat. NERSHIP their pressing livelihood concerns (Pozzoni and Kumar 2005:29­30; World Bank 1996:147). In addition, the poor may believe their involvement is of little value, as the processes may be dominated by village elites. Making Participation Poor-Friendly While new laws and government practices have begun to increase Addressing the dysfunctions of participation is essential if commu- the level of formal inclusion of marginalized groups in participa- nity-driven ecosystem enterprises are to benefit the poor. tory decision-making, research shows that weaker social groups Certainly, no standard recipe for successful participation is possi- such as the poor still exercise little influence over final decisions ble, because each instance of community participation is unique, compared with more powerful community members (Pozzoni depending on the natural resource at issue and the social and and Kumar 2005:v, 6­7). economic dynamics of the group. Nonetheless, it is possible to identify broad strategies to achieve greater inclusion, facilitate Inequality Hinders Cooperation communication, encourage a group vision, build the social capac- A related phenomenon is that participatory decision-making is ity to act collectively, and create a viable institution to manage that more difficult in communities with high levels of income inequality action. These strategies--which often benefit from the interven- or strong social or class divisions. One of the strongest criticisms of tion of a trusted outside facilitator such as an NGO--help the generalized application of participatory methods is that it often surmount the initial barriers that local groups face when they treats "communities" as if they were more homogeneous than they contemplate managing natural resources as a community. are, composed of individuals or groups with largely compatible-- or at least reconcilable--interests. This ignores the natural Ground Rules: Formal Inclusion and Format heterogeneity of communities and thus ignores the divisions, Formal inclusion of all community members is not just a formal- competing interests, cultural divides, and power imbalances that ity, but an essential ground rule. Explicitly recognizing the goal of are typically present in most groups. When these divisions are seeking the input of all stakeholders--men and women--is a strong, collective action and participatory processes can suffer. significant step in making sure the participatory forum is not Some research shows, for example, that cooperating to unbalanced from the start. Some groups find it useful to specify manage natural resources is more difficult in heterogeneous that management or leadership committees must include groups, even when all the members of the group depend equally members of low-income or marginalized groups. The format for on the resource (Cardenas 2001:20). In some cases, both the group decision-taking--whether by majority vote, consensus, or poorest and the richest tend to drop out, as their prospects for other means--is also important. Consensus-based approaches-- getting what they want from the process diminish (Pozzoni and where the group does not proceed until all parties agree--can help Kumar 2005:9). However, other research shows that group hetero- protect the interests of the poor, but they can also be unwieldy. geneity can be tolerated--or managed--and need not hinder Logistics matter as well. The choice of location and time for the successful participation, particularly if the resource at issue is initial and follow-on meetings are simple but important formatting highly valued and the benefits from working together are likely to concerns to lower time costs and increase accessibility for the poor. be substantial (Varughese and Ostrom 2001:762­763). Fact-Finding and Initial Goal Identification Benefits and Costs Are Not Equally Shared Initial encounters within a participatory decision-making process If better-off members of the community tend to dominate need to set a tone of common endeavor and provide the basis for participatory decision-making, then it is not hard to imagine that unbiased information. Fact-finding exercises or mapping and they might also share disproportionately in the benefits of partic- modeling efforts can offer a neutral ground for determining the ipation-based projects. Research on community irrigation dimensions of the resource base and the range of possible developments in Tanzania found that while landowners and management goals, along with the likely benefits. The discussion tenant farmers both received water, landowners were the main and enthusiasm that such exercises often generate can begin to beneficiaries. Both groups had to contribute the same amount of establish a rapport within the group and prepare it for more labor to the project, but tenants ended up paying higher land substantive and controversial topics (World Bank 1996:192; Bruns rents since irrigated acreage is more valuable in the land market and Bruns 2004:1­2). (Koopman et al. 2001:47­48). In instances where improved community management of ecosystems results in greater Affinity Groups and Empowerment productivity--more water, fish, or forest products, for example-- Early in the participatory process, the self-selection of affinity those with larger land holdings or more investment capital can groups--composed of individuals with common concerns due to often capture a greater share of the increased production. At the similar economic circumstances, landholdings, or gender--can 65 PIHSREN important early task is creating a group vision for what success will look like. Facilitation of the visioning process and subsequent discussions by a trusted outside actor such as a local NGO are WO often beneficial to provide direction to the process and supply an independent moderator (World Bank 1996:204; Bruns and Bruns 2004:1). On the basis of this vision, the group can proceed to enumerate the challenges to achieving this vision from each stake- holder's standpoint and to negotiate an agreement for collective action. A strong vision of benefits is crucial to maintain the momentum of participation and create space for negotiation. Building Social Capacities and Technical Skills To a great extent, the quality of a group's participatory decision- making reflects the social relationships within the group--its stock of social capital. Increasing the inclusion of the poor often requires reconstructing these relationships to build the social capacities of the group. Social capacity-building is thus a big part of successful participation, particularly where marginalized groups are part of the mix. Visioning and other trust-building exercises are one aspect of this, including working side by side to assess, repair, or demark the resource at issue before full commu- nity management has begun (Bruns and Bruns 2004:1). More broadly, social capacity-building is often linked to other forms of capacity-building, such as learning new technical and management skills--the kinds of applied skills necessary to reveg- etate a watershed, set up a no-fishing zone, or create a harvest plan for a community forest, for example. Linking the two types of learning--social and technical--can often help both proceed more rapidly, so that the capacity for jointly managing the resource is developed as quickly as possible. give marginalized groups the chance to meet and identify common goals and challenges, preparing them to represent Design of Institutions and Formal Rules their interests within the larger group (Sharma et al. 2005:5; for Inclusion and Benefits Sharing Bruns and Bruns 2004:2). Sometimes these groups find it useful A prime focus of participatory decision-making around commu- to prepare a formal "action plan" in which they envision their nity resources involves the design of the management rules and participation in the enterprise and how it can be shaped to meet the formula for sharing the costs and benefits of the manage- their needs and respect their constraints. One risk is that ment regime. In both these areas, considerations for how the members of affinity groups, while they may gain confidence and poor will fare must be in the forefront as negotiations within the solidarity by meeting with their peers, may be further stigma- group proceed. This requires first a careful accounting of the tized by more powerful actors in the group as a whole if they costs of management that may fall hardest on the poor and the function too autonomously. For example, if the landless band recognition that some form of compensation may be appropri- together in an affinity group, they may make it easier for the ate to allow them to continue to participate in and support the larger community to label them and marginalize their input. To scheme. If poor households will have to reduce their woodfuel avoid this, when the Indian NGO Watershed Organisation harvests to allow a forest to recover or decrease their bushmeat Trust (WOTR) facilitates initial meetings among villagers harvest so that tourists can see more wildlife at an ecotourism considering watershed restoration, they divide the entire group destination, then provision must be made at the time of rule- into smaller affinity groups that meet simultaneously and in the making for an adequate substitute. Compensation can come in same location, so that the deliberations of these groups are many forms, such as cash, substitute employment, or increased always considered part of the group process rather than seen as access to resources at another site. Research confirms that separate and competing with it (Lobo 2007). communities are capable of instituting quite complex manage- ment rules and compensations if most members believe they are Facilitated Group Exchanges to Identify Issues fair and if the community values the resource highly enough Once an initial basis of information and group tolerance is estab- (Shyamsundar et al. 2004:10, 95­96; Varughese and Ostrom lished, a broader range of issues can be brought to the table. An 2001:759­763). 66 OW NERSHIP SUMMING UP: OWNERSHIP Ownership has two aspects in relation to ecosystem enterprises: secure S T E P 3 : Inspire a Public Commitment to Collective Action resource rights and meaningful participation rights, or the ability to I To be useful, demand must translate into a public commitment of participate in decisions about the management of local ecosystems. money, resources, or time--a demonstration of involvement on the part Together they create a real stake--financial and social--in how ecosys- of stakeholders that signals their ownership of the joint effort or enter- tems are managed. prise and their commitment to collective action. F O U R S T E P S T O F O S T E R O W N E R S H I P S T E P 4 : Encourage Participatory Decision-Making I Participatory decision-making allows local stakeholders to own the S T E P 1 : Improve the Security of Resource Tenure I process of creating and carrying out ecosystem enterprises and is Security of resource tenure supports successful nature-based enterprise. important to building demand for CBNRM and other enterprises. Research confirms that secure tenure is linked to the success of commu- nity-based natural resource management. Unfortunately, tenure I Participation by the range of stakeholders builds the legitimacy of insecurity is widespread, constituting a major obstacle to ecosystem business or resource management decisions, which can bring better enterprises among the poor. compliance with management plans. Participation also empowers the I poor and builds the social capacities of the group, which can improve To improve the security of tenure for the majority of poor rural residents, cooperation and lessen conflict. a broader approach is necessary that builds on local tenure practices and uses local institutions to execute simpler, speedier, and lower-cost I Making participation more poor-friendly is essential if the poor forms of land and resource registration that are more accessible to rural are to benefit from CBNRM and nature-based enterprise. Some families. Recognition of local customary land rights must be part of any strategies include: viable tenure reform. Such reform must also include development of I Establishing formal rules for inclusion of marginalized groups, such more effective dispute resolution systems that can accommodate both as on executive committees; customary and statutory titles within a single legal framework. I Undertaking group mapping or modeling exercises to establish a common ground of endeavor and information sharing; S T E P 2 : Catalyze Demand for Ecosystem Management I Ecosystem-based enterprises that arise out of community demand are I Establishing affinity groups to allow the poor to organize and repre- more likely to succeed. Demand is expressed as the willingness for sent their needs effectively; collective action--for joint management of local ecosystem resources. I Engaging in a group visioning process to establish a model for what Demand can be catalyzed by factors such as a change in the local successful collective action will look like, understand what its environment or economy, a change in the financial incentives for invest- benefits and challenges will be, and establish a basis for negotiation ment, a change in resource rights or access, or a change in information among competing interests; and through exposure to pilot projects or demonstrations. Leadership is important in channeling community demand into enterprise. I Accounting for the costs of resource management and compensating the poor when these costs fall on them disproportionately 67 Box 2.2 LESSONS FROM THE FIELD: GENERATING AND CHANNELING LOCAL DEMAND In this piece, Crispino Lobo, one of the founders of the Water- those who suffer losses resulting from restoration measures, shed Organisation Trust, speaks from more than 15 years experience and grant vulnerable groups--women, the landless, small helping villagers in almost 600 watersheds to organize and collectively herders and farmers, and indigenous groups--an assured share carry out watershed rehabilitation projects in three arid Indian states. of benefits both during and after environmental rehabilitation. If this inclusive process of negotiation, arbitration, reconcilia- tion, compensation, and redistribution results in an agreement that is seen as fair and reasonable by all the major stakehold- ers, it will become the dynamic that catalyzes a decisive consensus for collective action. Equity is the key to igniting and maintaining community-wide engagement that leads to desired and therefore sustainable results. Once this dynamic has been created, a local institution must be set up that has effective representation of all the stakeholder groups, is mandated to oversee implementation and enforce- ment of the actions agreed upon, and is in turn accountable to Crispino Lobo the community. REGENERATING THE ENVIRONMENT AND REVITALIZING This sensitive exercise requires the intervention of a trusted the local economy on a sustainable basis is possible only if the intermediary agency--usually an external one, such as an effort is a response to the felt need and demand of the local NGO--that has credibility as well as the ability to leverage the community. The questions that arise then are: How does one funds necessary for the environmental regeneration to go elicit and organize such a response in ecologically and econom- forward. Unless sufficient financial resources are secured ically stressed communities? How can a commonality of beforehand, the community processes should not proceed. purpose be fostered? How does one gauge the depth of purpose, Common purpose and will can only be sustained if people will, and unity amongst all the major actors in the community? believe that there is a fair chance of the project proceeding and How does one ensure that the interests of disadvantaged groups their hopes and aspirations for it being fulfilled. are not only protected but also become part of the articulated consensus of the community? Assessing Social Capital, Building Capacities, Putting People at the Center Generating Demand, Forging Consensus, Creating Institutions Many projects that begin with great promise quickly lose steam once implementation begins and the agreed upon arrangements It is important that people understand the interrelationship and restrictions have to be put into practice. This is because, between the hardships they are experiencing, the ecological despite the best intentions, the existing social capital--the health of their "area of survival," and the way they use their bonds of solidarity and goodwill--are not yet strong enough to natural resources. Often, the social, economic, and power overcome long-standing internal conflicts, fault lines, and asymmetries within the community prevent people from seeing closed mindsets in the community. these crucial causal relationships. To gauge the true extent of positive engagement among commu- For a consensus to emerge that galvanizes a community for nity members and decrease the risk of failure, it is helpful to change and collective action, it is necessary to address the devise a practical "entry test" to help the community determine various competing and often hostile interests, agendas, and if it is ready for such a collective undertaking. Such a test must grievances that permeate the social fabric of a community. For be transparent and resistant to distorting influences like political this, it is necessary to surface and discuss exhaustively the pressure. More important, it should be "self-selecting" in nature, conflicts and concerns of the various interest groups. Together, where success is based on the actions of the community itself they must arrive at community-endorsed arrangements that rather than the judgment of government or program authorities. protect the legitimate interests of each group, compensate 68 The measures of success must be directly related to the kinds It should therefore include the entire range of skills that a of actions that will be required should the project go forward. community must acquire in order to be in the "driver's seat" of For instance, when villages wanting to undertake the regenera- the effort. Unless people are fully engaged in all aspects of the tion of their watersheds approach the Watershed Organisation regeneration effort--planning, implementation, monitoring, Trust (WOTR), they are required to demonstrate their intent and evaluation, and maintenance--and are able to implement the commitment by doing 4 days of voluntary work as a community, project in a technically proficient and managerially sound such as digging contour trenches or other soil and water conser- manner, they will not acquire the necessary "ownership" of the vation work. In dryland areas where the majority of people eke effort nor reap benefits commensurate with their investments out a subsistence living from the land, this is a substantial and expectations. It is also important to introduce at all levels, contribution, and completing it requires real need, a suffi- especially at the project level, systems that promote trans- ciently cohesive community, and a functioning and trusted parency, accountability, and free flow of information to all leadership--the minimum amount of social capital needed for actors and partners so as to secure commitment, foster owner- complex projects and interventions to succeed. ship, and sustain momentum. Once a community has passed the "entry test," it must then A community will maintain and enhance an asset that generates enter a capacity-building phase as a prelude to undertaking for it a stream of desired benefits on a reliable basis. Hence, full-scale project implementation. Capacity-building--as WOTR it is important to "mate" the village into the local and regional uses the term--is a time of intense facilitation, support, and economy and markets as well as with development agencies and skill training, usually by an NGO or other external agent. The resource providers across sectors. This will provide outlets for local community is helped to understand the implications of the products and increase business opportunities and employment. agreements they have made as a community and is supported in implementing them and in managing the conflicts that inevitably occur when curbs on customary land and resource uses begin to take effect. Usually this is a time of stress and uncertainty, where internal contradictions and conflicts come to the fore and community institutions undergo changes in membership, functioning, and mandates. During the capacity-building phase, actual project work should begin at a sufficient scale that it will have some visible short- term impacts. This preliminary work cements trust and builds confidence between the villagers and outside project authori- ties--a crucial requirement for success and a "goodwill reserve" that can be drawn upon when rough patches are hit. It also provides a cushioning environment for the hardships suffered by some groups by creating incentives--such as increased opportunities for wage labor--to resolve conflicts and adopt new behaviors. These incentives, as well as other short- term results of the project, are a powerful glue that holds together a common consensus and provides a preview of the kind of benefits that will flow to the entire community once the full project is completed. Perhaps most important, this prelim- inary work during the capacity-building phase provides the experiential basis for imparting skills and competencies to the villagers. In rural communities, the most effective means of knowledge acquisition is through "learning by doing." People learn by directly participating, observing, and experiencing the consequences of their actions and then reflecting upon mistakes made. Training must be oriented toward empowerment and tailored to the work being undertaken and the needs of the community. 69 Box 2.2 LESSONS FROM THE FIELD It will also provide access to new developmental schemes, Wasundhara engages an entire community in an ongoing financing, technologies, new ideas, and information. dialogue focused on envisaging and realizing a shared and more equitable future, beginning from the smallest unit--the single Women are critical in shaping the sustainability of natural habitation or neighborhood unit (hamlet)--and building upward resources, whether they be watersheds, forests, or pastures. A to the wider community. major portion of a rural household's daily food consumption comes from the environment and is managed by women. Involv- The core components of the approach are: ing them as decision-makers, with preference given to their I Generating awareness by getting groups and the community needs, ensures that they have a stake in the maintenance of to understand the nature of their poverty--the events and assets created by the project. It also gives them the incentive to their causal relationships that led to the present situation; encourage their children--the next generation of resources I Catalyzing community-wide momentum for change by users--to become careful stewards of the resources they inherit. walking them through a process that helps them envision their highest possible realizable good ("visioning") and the steps that are needed to get there; Making Equity a Community Concern I Identifying the poor and vulnerable on the basis of a community-led "wealth ranking exercise"; and With projects such as watershed regeneration, it is generally I Generating a consensus and affixing responsibilities as to acknowledged that those with access to sizable land resources what is to be done, how, and by whom, in order to address benefit more that those with less or no land--the impoverished identified gaps, particularly the needs of the poor and the and marginalized. In order to bring about a measure of equity, underserved areas of the village. most of these projects adopt various mechanisms such as increased representation of the marginalized in decision- making bodies, preferential access to resources, and inclusion A focused strategy of empowering the marginalized while using of a significant livelihood component in the project to augment the project funds to simultaneously leverage and maintain the and diversify the income portfolio of the vulnerable groups. political will and commitment of the village leadership to address the needs of the poor and underserved is used. Unfortunately, equity in natural resources management inter- ventions, as currently practiced, is primarily a concern imposed In addressing these needs, Wasundhara looks beyond the from outside--usually by donors and some enlightened project confines of the watershed project that the village is undertak- authorities. The need for equity and sharing is usually outside ing. This is appropriate since many of the "developmental the cognitive framework of the village elite. As such, it is often deficits" of the poor--in infrastructure, education, energy, and viewed as an irritant to be endured in order to secure project so on--are beyond the scope of such a project. The Wasundara funding. Unless it becomes a part of the "concern set" of the approach therefore attempts to link up project villages to village elite, the underlying inequity will endure. Some of the government development agencies and other service providers. marginalized will benefit from the interventions or opportunities created for them, but it is unlikely that most of them will experi- Initial results in the 28 villages adopting the Wasundhara ence significant and sustained benefits after the project ends. approach are very encouraging. Social interactions have improved and relationships between the various community- To address this, the Watershed Organisation Trust is piloting an based organizations and village governance agencies have approach that promotes inclusiveness and enlists the active become more collaborative and less conflict-prone. Fourteen of cooperation of the village elite in improving the lot of vulnera- these villages have already secured funding from various ble groups. Called Wasundhara, which means "the earth" and government agencies totaling approximately US$230,000 for connotes compassion, caring, co-responsibility, and harmony, it development projects such as constructing drinking water is being implemented in 28 villages in Maharashtra where systems, classrooms, drip irrigation systems, and connecting watershed development projects are under way. It is based on roads. They have also contributed more of their own money and the premise that unless the village elite see reducing poverty labor than they would have otherwise. Such results drive greater and marginalization in their village as a desirable "public good" sustainability of project gains in the future. If the overwhelm- that also furthers their self-interest, they will not make it their ing majority of a project village believes that they are concern, and little will change for the majority of the poor. appreciably benefiting from watershed restoration and associ- ated developments, it is more than likely that they will continue to maintain these assets in the days ahead. 70 2. DEVELOPING CAPACITY Capacity: Social, Technical, and Business THIS SECTION: CAPACITY Skills to Manage Resources In this section, we argue that strong nature-based enterprises are built and Establish Enterprises around functional local organizations with a breadth of social, technical, and business capacities. Developing these latent capacities often Social capacity to embrace a shared requires systematic support from intermediary organizations that can OWNERSHIP goal for resource management and to act as honest brokers, facilitators, trainers, organizers, and connection negotiate an action plan to attain it points with government and the private sector. This section: Technical capacity to jointly manage I Defines local organizations and discusses their function as the keys CAPACITY natural resources sustainably, including to implementing and sustaining CBNRM and nature-based enterprise. the ability to monitor resources and I Weighs the strengths and weaknesses of local organizations and enforce rules describes the need for capacity development to improve inclusiveness CONNECTION Business capacity to organize an and accountability, build critical skills and connections, and find ecosystem-based enterprise and market more reliable funding. the resulting products and services I Describes intermediary support organizations, defines their role in Local resource management institutions catalyzing local nature-based enterprises and delivering critical with the capacity to distribute costs and support services, and profiles several successful ISOs. benefits of ecosystem management fairly I Asserts the ability of ISOs to make nature-based enterprises and Dynamic community leadership to CBNRM more pro-poor by building a group's social capacity and catalyze demand and mediate disputes setting forth norms for participation and distribution of benefits. Intermediary support organizations I Examines the role of ISOs in "upward" capacity-building--that to help build capacity and influence is, changing the attitudes of government officials toward local See page 6 for full diagram. enterprises and increasing government services and political support. When the "demand cycle" finishes, the "action cycle" begins. A Focus on Local Organizations Once a community or group of resource users has acquired resource rights and generated the vision and commitment--the Local organizations are essential for implementing and sustaining demand--for joint enterprise, it enters a new phase of execu- community-based natural resources management. In the develop- tion. Translating the group's demand into action requires skills. ing world, organizations such as forest user groups, watershed At a minimum, the group must learn to manage the resource, committees, and village councils provide the institutional structure produce and market its product, and organize its own decision- for group resource management and the receptacle for resource making process to keep group members aligned and involved in management authority devolved from the state. Other local groups the enterprise. Building these skills is at the heart of the process such as NGOs, unions, savings groups, or producer cooperatives of scaling up rural ecosystem enterprises. provide technical, financial, and capacity-building services or help Successful scaling strategies often use a graduated approach marginalized groups organize themselves. These organizations that starts with the skills inherent in local organizations and have a distinct advantage in pro-poor development, but they have systematically builds these through dedicated capacity-building a number of inherent weaknesses as well. Strengthening such local programs. These programs make a point of building social institutions and their linkages is one of the most effective ways to capital as well as technical skills, emphasizing adaptive and flexi- empower local communities, make their resource management and ble learning. The point is not only to assure the persistence of the business efforts technically competent, and ensure that poor resource base but also to build inclusive local organizations with families share in the benefits (Alsop and Kurey 2005:5­7). the organizational skills and business experience to succeed in a variety of social enterprises. This is one of the definitions of Defining Local Organizations increasing social and economic resilience. The defining feature of "local" organizations is that their dealings are characterized by face-to-face interactions. Their members rely heavily on personal relationships and networks to gain access to 71 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 resources and make decisions within the group. They are human- scale, with trust as an important driver in their activities (Uphoff 1992:3; Uphoff and Buck 2006:5). Local organizations operate across all sectors and vary widely depending on culture and location. Some are institutions of local government, while others are civil society groups or even businesses. (See Table 2.1.) Local organizations also span a spectrum from formal and officially recognized by the government to highly informal, traditional, or organic organizations. In any one rural setting there may be a large number of such organiza- tions with overlapping membership and intersecting functions. In one study of four villages in India, researchers identified 38 differ- ent local institutions, including the gram panchayat (official village council), labor and educational organizations, savings groups, youth and religious groups, and marketing groups such as dairy cooperatives (USAID 1984:1­7; Marsh 2003:7). TABLE 2.1 THE VARIETY OF LOCAL ORGANIZATIONS pastures, and farms has increased and diversified as rural society Type of Local Organization Examples has reorganized itself around new ownership patterns, central government structures, and economic realities. Some estimates put Local Government Village Councils; Councils of Elders; the number of new groups related to resource use formed in the or Public Institution Public Schools; Local Health Clinics last two decades in the hundreds of thousands (Pretty and Ward Resource Management Group Forest User Groups; Grazing Societies; 2001:214). One principal reason for this expansion has been the Watershed Committees; Irrigation Associ- trend toward government decentralization and the creation of ations; Fishery Management Committees; greater political space for the devolution of resource rights to local Farmer Associations groups (Scherr et al. 2001:10). In Nepal alone the government Self-Help Group Savings Groups; Women's Support reported the existence of 14,000 community forest user groups by Groups, Youth Clubs 2005, due to the enactment of the 1993 Forest Act, which set the Service Delivery, Advocacy, Non-governmental Organizations; Unions; framework for devolving management authority and harvesting or Networking Group Church Groups; Cooperatives rights to local groups (Pokharel et al. 2006:6). Local organizations have a variety of origins: some spring from traditions within a community, while others are created by community members in response to new social, economic, or The Strengths of Local Organizations environmental conditions. Donors and the government also create Local organizations are central actors in rural development, an local groups to take on specific development tasks. In some cases, insight confirmed by two decades of research and case studies. self-help groups and other local organizations have arisen in Their effectiveness stems from being embedded in the community response to state failure and lack of government services. Some social order. Because of their intimate contact with village life they receive significant support (money, training, resources, or labor) are good at assessing needs and marshaling local resources to from outside groups, while others are completely self-sufficient accomplish their work. Their small size and relatively nonbureau- (Uphoff 1992:3; Seymour 1994:479; Francis and Amuyunzu- cratic nature generally makes them highly adaptable to the Nyamongo 2005:18­20). changing demands and uncertainty posed by rural life (Satterth- Local groups have been involved with natural resources for as waite 2005:3­7; Uphoff 1992:2­9; Marsh 2003:1­4; Uphoff and long as these resources have been managed. Many traditional insti- Buck 2006:1­10; Scherr et al. 2001:17­18). tutions regulating access to natural resources revolved around The fact that they are populated by people who know each customary authorities such as tribal leaders. For example, until other means that local organizations offer opportunities for recently the Borana people of southern Ethiopia used councils of collective action and mutual assistance that do not always occur elders and clan leaders to administer carefully delineated rangeland at district, national, or international levels (Uphoff 1992:2­3). For districts on their communities' behalf, specifying where and when example, in Nepal rotating credit associations called Dhikuri offer to graze based on seasonal weather patterns (Uphoff and Buck the chance for members to tap an informal lending market. 2006:59­60). Today, even as many traditional institutions have Members of the local Dhikuri contribute regularly to a loan fund declined, the number of local groups involved with fisheries, forests, that each member in turn can draw upon on a revolving basis for 72 B U I L D I N G O W N E R S H I P, C A P A C I T Y, A N D C O N N E C T I O N Local NGOs can play a particularly important role in natural resource management and enterprise development. They often provide key services to help strengthen and connect other local organizations, bringing new information and CAPACITY management techniques and offering training in business and management skills to allow resource user groups to do their jobs more effectively. In the Indian states of Maharashtra, Gujarat, Andhra Pradesh, and others, local NGOs have played an essen- tial part in mobilizing communities to take part in watershed restoration schemes and in building the capacity of village water- shed committees to manage the restoration work. NGOs also frequently act as advocates for communities, helping to channel local voices to higher levels of government and the private sector and insisting on accountability from these authorities (Marsh 2003:27­28; Scherr et al. 2001:15­16). Challenges and Limitations investment purposes or to meet expenses (Chhetri 1994:449­453). Despite their potential to manage local natural resources, In this instance, trust substitutes for financial or property-based empower community members, and bring political, social, and collateral in obtaining the loan (Marsh 2003:26). Local organiza- economic benefits to the community, local organizations suffer tions are adept at lowering transaction costs in this way, based on from a number of weaknesses. social ties. Local organizations can be effective at organizing and sustain- ing collective natural resource management because they naturally HOW LOCAL ORGANIZATIONS tap into the community's understanding of the resource and its SUPPORT RURAL DEVELOPMENT connection to local livelihoods. They are likely to be familiar with Local organizations provide a range of functions that are essential to the different techniques used locally to manage the resource, as well rural development, natural resource management, and the development as the problems involved in management. Importantly, they reflect of nature-based enterprises. These include: the social norms and work ethic of the community, and for this reason they can often command compliance with management I Financing: mobilizing and securing funds rules through social pressure (Uphoff 1992:2­3; Scherr et al. I Staffing: providing staff to form or support groups 2001:17­18). In the village of Mendha-Lekha in the Indian state of Maharashtra, villagers established a gram sabha (village assembly) I Provisioning: facilitating access to services, natural resources, and and a forest protection committee in the early 1980s to regulate use local assets of their 1,800-ha village forest. Working in tandem to set rules on I Community-Based Action: physical construction and mobilization of forest use, these two local organizations have been highly effective village resources. at preventing once-common forest fires, encroachment, and illegal extraction of forest products--so effective, in fact, that the state has I Capacity-Building: facilitation or direct provision of training ceded all enforcement authority over the local forest to the village programs (Pathak et al. 2005:59). I Coordination: coordination with other organizations Community organizations can offer particular advantages to the poor. Savings groups, self-help groups, resource user groups, I Monitoring and Evaluation: tracking organizational inputs, outputs, and other informal organizations afford members the option to and performance join as the need arises. This opt-in, opt-out structure grants the I Conflict Resolution and Accountability: prevention, mediation, poor considerable flexibility to participate and provides a safety and adjudication of conflict net in times of need. Local organizations such as political parties, church groups, or farmer cooperatives can also provide an avenue I Information-Sharing and Dissemination: sharing technical, commer- for the poor to achieve some social mobility, at least when these cial, and political information within and between organizations groups are inclusive in their membership. For example, evidence I Advocacy: pushing for reform of laws or institutions or representing from villages in Mozambique shows that belonging to a church or the interests of members to public officials and donors political group brings opportunities to get ahead in the community (Marsh 2003:25-26). Source: Adapted from Alsop and Kurey 2005:6­7. 73 Box 2.3 WOMEN ON THE MOVE: SCALING UP WOMEN'S SAVINGS GROUPS IN NIGER MATA MASU DUBARA--MMD, FOR SHORT--MEANS tion takes place in a season when extra funds are particularly "Women on the Move" in Hausa, a language of Niger and the desirable--either before the holidays or during the agricultural African Sahel (Allen 2002:1). It is also the name of a highly planting season. Most groups re-form shortly thereafter to successful savings and loan program based on women's self- continue the savings and loan process. The program is attrac- help groups. The rapid growth and well-documented success of tive largely because MMD members receive a median return of the program demonstrates that self-initiated local organizations 80 percent on their savings (Allen 2002:23). can become effective agents of rural development. The rapid growth of MMDs across Niger and in other African This village-based savings and loan program began in 1991 states illustrates the scaling capacity of demand-driven local with six groups of about 30 women in Niger's Maradi region, organizations when they are based on a simple model that is with funding and technical support from CARE International supplemented by effective capacity training. The MMD training (Allen 2002:1). Today, MMD's "accumulating savings and was initially provided entirely by CARE volunteers. Today, credit associations" model provides small short-term loans and however, the program operates through a "train-the-trainer" strong savings returns to rural women across western and south- model, whereby CARE officials work with select village leaders ern Africa. As of August 2005, the MMD program had reached to bring the model to new areas. The change in strategy greatly 172,000 women in Niger, resulting in over US$5 million in facilitated the spread of MMDs. In the four years after the savings (CARE International 2005:1). By the end of 2006, "train-the-trainer" model was adopted in 1998, the number of CARE's Village Savings and Loan program, based on MMD's MMD groups grew from 1,200 to more than 5,600, and principles, had reached 500,000 people across Africa--70 membership quadrupled--topping 160,000 (Allen 2002:13). percent of them women (CARE International 2007:10). Women in the region who are interested in forming their own An MMD group in a rural village typically consists of 30 women group pay the local trainers a small fee to help establish their who meet on a weekly basis to make a predetermined contribu- MMD. During the first three months of a newly formed group, tion to a savings pot (FON 2001:1). The group decides each the trainers attend weekly meetings explaining the procedures month how it will use the savings. Most often, the funds go and working out the specific rules and the type of loan program toward small loans to petitioning members who make their case the women want to follow. After this "intensive period," the to the group. The loans, with interest rates generally between trainer sits in on meetings less frequently but is available to 10 and 20 percent, must then be repaid to the group 4 weeks answer questions through the end of the 8-month cycle that later. Some groups decide to invest their savings in a group new groups typically use as a test period (Allen 2002:18­19). business (Allen 2002:10,19). One key to the simple and flexible MMD model is that no liter- At the end of a set time period--usually 9 or 12 months--the acy is required of any group members. Instead, the group uses savings group dissolves, evenly redistributing its funds among procedures like dropping pebbles into their savings safe-deposit all its members. The fund cycle is timed so that the redistribu- box to mark the number of weeks they have been operating; other records are kept orally, with several women responsible for keeping records, which are then reconciled at each meeting. If women want to contribute more savings each week, they are able to do so in a multiple of the minimum contribution and are considered to represent "multiple persons" in order to simplify the payout process at the end. CARE learned from experience about the unique challenges presented by illiteracy and has formalized these adaptive procedures in its model as a result (Allen 2002:19­20). CARE's role in MMD's success exemplifies the changing role that external support organizations often play in catalyzing and scaling up the efforts of local organizations. Its transition from a ground- level testing and frontline service to an upper-tier training and advisory organization has allowed CARE to move to the background as local groups have stepped up, promoting local learning and ownership of the program and ensuring that the growth of MMD groups continues to be driven by local demand. 74 CAPACITY Restricted Focus and participatory methods that the group may need to plan, The narrow focus of, say, a user group, can foster parochialism make joint decisions, and encourage "ownership" by its members and insularity, as members concentrate their energies on increas- (World Bank 1996:154; Brown and Kalegaonkar 1999:3, 8). ing the benefits to the group without regard for the effects on In Namibia's conservancies, lack of capacity is one of the other community members or on adjacent communities. For biggest constraints that conservancy management committees example, a forest protection committee concerned only about face. In the Khoadi Hoas Conservancy, for example, a poorly enforcing its ban on wood collection by outsiders may show little negotiated contract suppressed income from trophy hunting for concern for the broader effects of the ban on nearby communi- several years until professional help was brought in to restructure ties. Likewise, an irrigation association may succeed at the deal. Conservancy committees have also had some trouble maintaining irrigation structures and apportioning water fairly with auditing and accounting procedures, resulting in cases of among its members, but it will likely have little concern for the misplaced funds. Training in financial management has thus downstream effects of its water diversions. Without input from become a high priority for every conservancy committee in the last other groups, these organizations may miss opportunities for few years (Jones and Mosimane 2007:11; NACSO 2006:38­40). partnerships that meet more than one goal simultaneously and widen the constituency--and base of support--for their actions Lack of Resources and Connections (Brown and Kalegaonkar 1999:3, 8). Most local organizations are perennially short of funds. This limits their ability to undertake large projects, pay members for their Lack of Capacity time, or even meet the organization's basic needs for equipment, Undoubtedly the greatest weakness of local organizations-- meeting space, and supplies. Indeed, many rural community particularly newly formed ones--is their lack of social and groups without a sponsor are low-budget affairs that depend on technical skills and business experience. Many groups form volunteers for their activities and donations for their expenses. organically through face-to-face interaction, sometimes impro- Similarly, they often lack influential contacts within government or vised to solve a particular problem. Others are encouraged to the private sector that could advocate for their work, connect them form by outside donors, government agencies, or NGOs in order to government support programs, or intervene when they face to enable community-driven development and create an institu- regulatory obstacles. Recognizing this financial and political isola- tional structure for local resource management. The result is that tion, many donors have stepped in to provide support and they are largely amateur rather than professionally run organiza- connection. While this has proved very helpful in many cases, it tions. Though their members may be well versed in their also tends to weaken the group's autonomy. As local groups livelihood or trade, they are often unfamiliar with business skills become more reliant on a few donors, they run the risk that the such as budgeting, accounting, or negotiation of legal contracts; donors' goals rather than the needs of their members may begin in the case of resource management groups, they often lack driving their agendas. In addition, reliance on external support is, technical knowledge of resource management or monitoring in most cases, unsustainable in the long run (Brown and skills. They may also be unfamiliar with organizational processes Kalegaonkar 1999:8; USAID 1984:11). 75 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 Lack of Accountability Lack of Inclusiveness Many local groups are not formed along democratic or participa- Achieving greater social inclusion and representation is a major tory lines and lack strong accountability to their members. They challenge for local organizations around the world. Many local are frequently dominated by strong individuals--often those groups--both traditional and modern--still reflect the hierarchical who founded them or prominent members of the community-- social structure of rural societies and are thus not very inclusive of and don't have good mechanisms to communicate with or elicit women, the poor, and other socially marginalized people. feedback from members. They may not have elections, leaving Researchers in Guatemala estimated that in 2001 less than members little ability to sanction leaders or express dissatisfaction. 10 percent of the members of community assemblies were In such situations, members often show little engagement in the women, and women held just 1 percent of leadership positions. governance of the group. Even when local organizations are part In the Indian state of Gujarat, a study of the participation of of local government, as in the case of official village councils, lack poor families in rural dairy cooperatives showed that large of accountability is still an issue. In Tanzania, some village forest landowners dominated the cooperatives and captured most of management committees--which are official subcommittees of the benefits, while the landless and lower-caste households had the elected local government--have withheld crucial information not benefited as much. Illiteracy made it difficult for many of the about their forest activities from villagers in order to have a freer poor to understand the proceedings of the cooperative's general hand with their decisions (Alsop et al. 2000:3; Brown and meetings, discouraging their attendance. Moreover, cooperative Kalegaonkar 1999:5; Blomley 2006:15). rules forbade considering illiterate members for spots on the RESILIENCE AND CAPACITY: MAKING THE CONNECTION The technical, social, and business capacities that are painstakingly CAPACITIES THAT INCREASE SOCIAL RESILIENCE built during the creation and management of nature-based enterprises I Social: group visioning and enterprise planning. Builds the also foster ecological, social, and economic resilience. The skills and willingness for collective action and guides the formulation of manage- abilities represented by these capacities can be deployed in many other ment and business plans. social, resource management, and business settings, increasing the I Social: undertaking collective management activities. Builds flexibility and adaptability of the members of the enterprise. group trust and confidence that enterprise members can work coopera- CAPACITIES THAT INCREASE ECOLOGICAL RESILIENCE tively toward shared goals. I Technical: mapping and assessing ecosystem resources. I Social: crafting an equitable benefits distribution plan. Demon- Enables enterprise to demark accurately the resources to be managed strates that collective action can result in widespread benefits. and estimate their potential productivity, contributing to better management plans and more enforceable management boundaries. I Social: resolving internal management disputes. Enables I enterprise members to overcome obstacles to collective action and joint Technical: monitoring and analyzing resource trends. Allows enterprise. enterprise to assess pressures on a resource and determine the effect of the enterprise's management techniques. I Social: negotiating with outside funders or government agencies. I Enables enterprise to represent its interests and increases the chance Technical: applying resource restoration techniques. Allows of receiving technical, political, and funding support for the enterprise. enterprise to increase the ecosystem's baseline productivity. I CAPACITIES THAT INCREASE ECONOMIC RESILIENCE Technical: applying resource restoration techniques. Allows I Business: crafting a business plan. Increases the enterprise to increase the ecosystem's baseline productivity. enterprise's probable returns and improves competitiveness for I Technical: applying sustainable harvest techniques. Leaves commercial entities. ecosystem resources to regenerate, providing a continuing stream of I Business: applying accounting and fiscal management. Allows environmental benefits. enterprise to handle business transactions and distribute benefits in I Technical: processing ecosystem products efficiently. Allows an efficient and transparent manner that maintains the confidence of enterprise to maximize production while minimizing impact. enterprise members, funders, and government overseers. I Social: enforcing management rules. Enables enterprise to I Business: undertaking marketing and communication. Enables minimize poaching or clearing and to attain its management goals. enterprise to expand its customer base and tap support networks. I Business: maintaining quality control. Allows the enterprise to deliver quality products and services that command a higher market price and inspire customer confidence. 76 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N participating directly in the enterprise or delivering support ASSESSING LOCAL ORGANIZATIONS services. Unless they raise their level of functioning, scaling up of these enterprises will never occur. Devolving rights to local commu- Assessing the strength of local organizations--and their potential to drive nities is only one part of the formula. The other necessary element CAPACITY local development--requires looking at several different dimensions: is sufficient capacity within the community to use these rights to I Vision and Strategy: Does the organization have a clear vision for good effect, turning them into functional and poor-friendly enter- its future and a coherent strategy to achieve its goals? prises (Marsh 2003:32; Satterthwaite 2005:17­19; IIED 2007:1­5). I Experience over the last two decades has demonstrated the Leadership: How is the leadership chosen and how often are perils of ignoring the need for effective capacity-building. More leaders replaced? than a decade ago, the World Bank concluded, from its own I Inclusiveness and Gender Balance: How diverse is the experience with local organizations, that a common failure was membership in terms of gender, income level, and social standing? to create an institutional structure--like a watershed committee I or irrigation association--without paying sufficient attention to Physical Participation: To what degree do members participate the capabilities, knowledge, and technical skills that these in the communal activity? groups would require in order to be successful. In the Bank's I Process Participation: To what degree do members participate experience, many newly formed local groups fail because too in organizational decisions? much is expected of them, with insufficient capacity-building I and time for growth (World Bank 1996:154). Internal Processes: What rules and processes guide the organiza- tion's day-to-day functioning? I Technical Capacity: How effectively can the organization carry out its activities, using appropriate technologies and methods? The Role of Intermediary I Administrative Capacity: How well can the organization plan and Support Organizations arrange its activities and finances? I Financial Control: To what degree do members control and audit Intermediary support organizations are characterized by high- |the use of funds? level organizing, technical, or political skills. They use these to I help local organizations increase their capacity and functioning Funding: What are the organization's income sources and are they and to connect to state or regional authorities and funding sources. sufficient to finance its essential activities? Source: World Bank 1996:154 management committee. The persistence of such barriers to Over the last 15 years or so, attention has been directed at a new inclusion is a central obstacle to realizing the potential of local class of organization--the intermediary support organization--in organizations to drive rural development and foster nature-based response to a greater recognition of the constraints of capacity, enterprises (Pimbert 2006:18­19; Marsh 2003:26, 40­45). sustainability, and influence that many local groups face. Interme- diary support organizations are typically NGOs or other civil society groups that operate in the space between the state and the The Need for Capacity Development local level and often act as intermediaries between the two. Local organizations are in great flux today as traditional groups try Occasionally, private businesses can also act as ISOs. to adapt to modern ideas of good governance and as new groups These groups are sometimes called intermediate, meso-level, arise to fill the demand for community-driven development. The grassroots support, or second-order organizations to distinguish them strengths and weaknesses of these local groups result in a mixed from purely local groups. They are characterized by high-level bag of benefits and missed opportunities. They are often in the organizing, technical, or political skills that they use to help local best position to manage local ecosystems for sustainability and groups increase their capacity and functioning and to connect to state income--and have done so successfully in many cases. But they or regional authorities and funding sources. The abilities to manage, don't always do so efficiently, in a participatory manner, or with coordinate, train, and influence that they possess allow them to enough consideration for the poor. catalyze local development projects, extract the elements of success, The development challenge is to work with local organiza- and spread these as models to other communities. For this reason tions to capitalize on their strengths and facilitate a transformation they are important actors in the scaling up process. Indeed, in nearly "from within" that allows them to become more inclusive and every example of successful scaling up of nature-based enterprises, competent. This calls for a serious capacity-building effort that the fingerprints of one or more ISOs are detectable. The Watershed supports both social and technical learning. Local organizations are Organisation Trust profiled in Box 2.4 provides a good example of at the ground floor of the creation of ecosystem enterprises, either what an effective intermediary organization can achieve. 77 BOX 2.4 WATERSHED ORGANISATION TRUST, INDIA IN WORLD RESOURCES 2005: THE WEALTH OF I Given the many dimensions of poverty, various developmen- the Poor, we profiled the India-based Watershed Organisation tal actors--including those involved in policy Trust (WOTR) in a case study titled "More Water, More Wealth development--must be engaged. Creating partnerships and in Darewadi Village" (WRI et al. 2005:124­130). The case networks across all three sectors--civil society, the private examined WOTR's watershed restoration program in Darewadi, a sector, and government--is critical if permanent change is village of 1,000 residents in the western state of Maharashtra. to be achieved. I Government has an important but redefined role if success- The Trust, a classic example of an intermediary support organ- ful projects are to scale up. It acts as a validator of the ization, helped Darewadi villagers restore their severely process and as a facilitator to involve new communities. degraded terrain through a process of securing land tenure, developing strong institutions and community involvement, and I The scope of the project has to be carefully and clearly defined implementing sophisticated regeneration plans. The results at the outset, so that all involved understand what participation were impressive: higher water tables, more land under irriga- is required and what results can reasonably be expected. tion, new wells, livestock increases, and crop diversification. Today WOTR is a true intermediary support organization, going well beyond its original role as village-level implementer and its At the start of 2008, WOTR continues to multiply its Darewadi single focus on watershed management. It takes on multiple success, leaving a string of similar stories across Maharashtra, responsibilities at various levels: It selects implementing Andhra Pradesh, and other Indian states and even other agencies, builds their capacities, brings them together to facili- countries (WOTR 2007). WOTR illustrates the pivotal role that tate shared learning and build relationships, and links them into intermediary support organizations can play in scaling up the local development resource network. It provides financial, successful community development models. technical, organizational, and managerial support to the imple- menting agencies. Through a variety of communication efforts, WOTR was officially incorporated in 1993 to serve as the imple- WOTR is able to shape pro-poor enabling policies (Lobo 2007). menting NGO for a German-sponsored development initiative known as the Indo-German Watershed Development Programme. The program was carried out in partnership with the Indian govern- ment in an effort to mitigate the rapid degradation of overused, drought-prone lands across India. WOTR began by working directly The WOTR Program with individual villages, beginning in Maharashtra state, to help them implement successful management projects. Capacity-Building WOTR began by developing two training, or "pedagogy," At the heart of the program is the assumption that these commu- programs: the Participatory Operational Pedagogy (POP) and the nity programs would be organized and facilitated by local NGOs. Gender Oriented Participatory Operational Pedagogy (GO-POP). Government agencies, at both the federal and the state level, would provide administrative and policy support, as well as POP is an integrated, sequenced, iterative methodology by approving the means and delivery of funding (WOTR 2005:8­9). which communities (and their facilitating NGOs) are able to develop their organizational capabilities and subsequently learn Initial success of the first project in Darewadi led to plans for skills specific to their needs. It contains built-in assessment and large-scale implementation. The pilot identified certain princi- monitoring tools. POP is built around the principles of "learning ples and approaches that WOTR believed were critical to future by doing," peer mentoring, and on-site engagement. It is a scaling and implementation success: sequenced program with three components: agency selection (NGOs and villagers), capacity-building within these groups, and I A development initiative will succeed only if it is "owned" implementation of an "operating system" that contains a by the community it is trying to help. People need to see package of processes that facilitate learning and help realize themselves not as beneficiaries but as active participants desired outcomes. and decision-makers. They should be involved at every stage, and that involvement requires accountability. All The GO-POP is a stand-alone subcomponent of the overall POP. others involved, no matter from what sector, have to be The GO-POP seeks to weave gender into all aspects of the facilitators, mentors, teachers--not "doers." project. It builds the capacities of women and secures their meaningful representation in the institutional life of the village, while working with men to obtain their support for the women's roles (Lobo 2007). 78 The capacity-building phase, which WOTR believes is critical to sector, or civil society, and it establishes those linkages with scaling up, must be completed before a project is allowed to go each community. into full implementation mode. The communities become linked to each other through the Community process of learning about the program and validating the benefits before joining. WOTR facilitates ongoing communica- Equally important to the program is the role of the community. tions between the CBOs and local NGOs in each community to WOTR requires active engagement by the community from the share information and best practices. The communities also outset. Not only does the community have to request the imple- maintain contacts with government officials. mentation of a watershed restoration program, but that request has to reflect the will of the community arrived at through a A crucial element in the WOTR network, one designed to help process that involved the whole community. ensure an enabling institutional framework for the program and support by both the host government and donors, is an effort But this will is not enough. WOTR understood the power of self- called the Exposure and Dialogue Program. It brings all interest or "ownership." A community must not only want the parties--donors, government officials, other community program that would help them out of poverty, it must "own" a leaders--together on a regular basis to spend several days living part of it. Community members had to make an investment. in poor communities. There they immerse themselves in the daily lives of the villagers, deal with them as equals, and begin Poor communities have little cash. What they do have is time to understand the reality of the poor. This experience creates a and labor. So the program also requires community members' cadre of motivated, high-level "champions" who understand commitment to provide the time to attend training sessions that firsthand what the program does, how it is carried out, and what help build the skills and social capital of the community and it requires in policy and funding (Lobo 2007). the labor to construct the catch-basins, ditches, and wells necessary for restoring and improving a small watershed. The self-interest represented by these "investments" is critical to a project's success (Lobo 2007). Results Networks and Connections Having started in one village, WOTR today supports efforts Successful projects aspire to sustainable (permanent) change involving 184 NGOs and agencies that facilitate watershed that can be scaled up to have greater impact. To avoid operat- development in 476 villages in three Indian states. The work ing in a vacuum, a project must make both horizontal and has brought improvements to nearly 400,000 ha and more than vertical connections. 650,000 people. Some 150,000 individuals have gone through the WOTR training programs, primarily in India but in 23 other Expanding the impact of the watershed program has involved countries as well, thus creating thousands of "ambassadors" sharing its accomplishments and its requirements with other spreading the practice of community-driven watershed develop- communities. It also required the establishment and training of ment (WOTR 2007). a network of local NGOs, which were primarily community- grown, and community-based organizations (CBOs) to provide In addition, several other donor and government-funded water- day-to-day support to the projects. shed programs have introduced a capacity-building phase into their programs and adopted some of the approaches and Communicating the opportunity of the watershed restoration methodologies that WOTR has developed. A major achievement program has become a key part of the work of state and local has been the establishment of a National Watershed Develop- governments. WOTR has managed those delicate relations in a ment Fund by the government of India that is intended to manner that engages government as a partner, ensuring they communicate this program to villages in some of the poorest share credit for project successes. dryland districts in the country (Lobo 2007). Those linkages become important as change takes place in communities, as their economic situation improves, as they require additional skills, and as their need for new services increases. WOTR ensures that relevant training and other services are provided, whether by government, the private 79 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 WHAT DO INTERMEDIARY SUPPORT ORGANIZATIONS DO? I They are good mentors. They have a "managing" capacity that goes beyond just an "organizing" role, enabling them to There is no one model that describes intermediary support organizations or mentor other local and mid-level organizations, build capacity what they do. However, their work generally falls into four main categories: within government and donor communities as well as on the I ground, and connect different groups to the services, actors, Capacity Building. Building capacity involves imparting a variety of and channels that they need. business and social skills, along with the guidance and opportunity to master them. ISOs are involved in at least three different forms of I They communicate well. They understand the importance of capacity-building: publicizing their successes and sharing their needs and aspira- I tions with those in the position to help. Building technical, financial, business, and political skills. This is the more conventional aspect of capacity-building necessary to allow I Their endorsement counts. Their credibility can lend legiti- individuals and local organizations to establish and carry out macy to and generate momentum around local initiatives that community-based natural resource management and build it into a would otherwise struggle to gain funding and recognition. viable enterprise. ISOs are in a position to identify existing capacity Intermediary organizations emerge in a number of ways. and build upon it to a degree not possible solely at the local level. They can grow out of grassroots action, be established by exter- I Building social and institutional capital. Putting technical and nal actors, or emerge from a combination of both. They are very business skills to good use in nature-based enterprises requires the often NGOs, but they can be other types of civil society and social capacity for participation and negotiation. ISOs often have quasi-governmental organizations. Examples include universi- particular expertise in catalyzing community processes that develop ties, trade unions, religious organizations, and science and this social learning. research groups. Local organizations can also grow into or begin I to take on some of the functions of intermediary organizations Upward influence and government capacity-building. Capacity on the as they mature. ground will not be enough to sustain community enterprises if government Finally, ISOs are often characterized by adaptability. Success stands in the way. One of the skills of an ISO is that it can engage with at the community level in natural resource management may lead government, helping to increase the adaptability and receptivity of the to demands for new types of information and services. Intermedi- bureaucracy so that it can further rather than hinder community efforts. ary organizations that have successfully remained flexible and I Facilitating Finance. As trusted intermediaries, ISOs can be important responsive can adapt to these needs and begin to provide a new contacts and conduits for project and business finance. On the one array of services, contacts, and strategies. hand, they may solicit and receive funds from government or from local In this section, we look in greater depth at the core capabili- or international donors, which they then disperse at the project level. On ties of intermediary organizations and how they support efforts to the other hand, they may play a crucial role in connecting local nature- sustain and scale up nature-based enterprises that route environ- based entrepreneurs to sources of investment capital or outside mental income to the poor. business partners. I Increasing Equity and Transparency. ISOs are often ideally situated to improve the inclusiveness and transparency of community-based ISOs: Capacity-Building resource management efforts by setting forth norms for participation, finance, project management, and the distribution of benefits. This aspect of their work is particularly important to making nature-based Capacity is the ability of individuals and institutions to perform enterprises open to the poor. their functions, solve problems, and set and achieve objectives. It I is also the set of attributes, capabilities, and resources of an Building Linkages and Networks. By their nature, ISOs maintain organization that enables it to undertake its mission. contacts with a variety of organizations, enterprises, and government Source: UNDP 1998:10; Beltran et al. 2004:167; UNDP 2008b. representatives, as well as a pool of technical experts and other influen- tial actors. They are thus well positioned to help community-based enterprises connect to larger networks for information exchange, market Building Technical Capacity development, and political influence. Technical capacities that communities need include the ability to use new technologies like improved seeds and more-efficient Groups like the Watershed Organisation Trust gain their processing facilities, as well as new techniques such as water effectiveness from a variety of qualities: harvesting or no-fishing zones. Financial and business skills--from accounting to writing a business plan--also fall under the category I They have influence. Intermediary organizations usually have of technical capacity, as do monitoring and evaluation skills. good relations with or access to government authorities who are Effective capacity-building is more difficult than many a position to clear obstacles at multiple scales. realize. Conventional approaches, which often involve technical 80 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N experts from government agencies or outside consulting firms, ISO PROFILE: ASIAN NETWORK FOR SUSTAINABLE often miss the mark in terms of their relevance to local needs. AGRICULTURE AND BIORESOURCES, KATMANDU, NEPAL They may consist of "one-off" efforts that rely on one or two The Asian Network for Sustainable Agriculture and Bioresources, or ANSAB, quick training courses, rather than the kind of interactive train- CAPACITY is an NGO established in 1992 in Katmandu to raise the living standards ing that people need to truly absorb useful skills. Perhaps the of smallholder farmers in South Asia. The organization was founded as a biggest challenge is to provide capacity-building services that go technology-focused initiative, meant to generate knowledge and capacity beyond one-dimensional "how to" training and allow local in agriculture and forestry technology across South Asia. ANSAB evolved people to express their creativity and entrepreneurial ability, through the mid-1990s to emphasize natural resource management and while providing access to the tools that can help them adapt to enterprise development, realizing that these two components would be changing circumstances. central to its mission of raising living standards (Subedi 2007). The ISOs help meet these challenges in several ways. First, they organization's 50 employees are drawn from a variety of fields, including typically adopt a long-term and collaborative approach to capac- sociology, biology, and economics. Their work is concentrated in five ity-building. In many instances they provide training themselves, programs: enterprise development, community forestry, policy and but just as often they facilitate specialized local NGOs to deliver networking, marketing information services, and business development the training in a way that is locally appropriate. ISOs often services. Within these program areas, ANSAB consults on individual coordinate the efforts of these local capacity-builders, providing community development projects and also serves as a network coordinator "training for the trainers" and using their networking ability to for large-scale initiatives (ANSAB 2007:14­15). provide access to resources that local NGOs typically lack. This ability to nurture and support local service providers has Most of ANSAB's work since this transition has centered on empowering prompted the Watershed Organisation Trust in India to see itself and training Community Forest User Groups (CFUGs) across Nepal, which as a "Mother NGO" (Lobo 2008). govern much of the country's forests under the 1993 Forest Law. In addition The ability to look broadly at capacity-building gives ISOs to assisting with the formation of these CFUGs, in 1995 ANSAB became the the power to identify and meet needs on a wider scale, such as coordinator of the Nepal Non-Timber Forest Products Network (NNN). This across a district or region. For example, the Kalinga Mission for network brings together communities, businesses, donors, and environ- Indigenous Communities and Youth Development, an ISO in the mental and government representatives to promote sustainable use of Philippines, recognized a widespread need among Philippine NTFPs in Nepal. NNN coordinators meet biannually to advance their goals community organizations for better managerial and financial of reducing poverty and promoting biodiversity through careful commercial- capacity. It worked with some 50 local organizations already ization of NTFPs. Between meetings, ANSAB, among other things, leads engaged in sustainable development projects--including sustain- trainings for the directors of Community Forest User Groups, publishes and able farming and watershed management--to build their distributes data about NTFP markets, and holds talks with government financial accounting, management, and reporting skills. These officials to improve laws for NTFP producers (ANSAB 2005b: 4,7). skill sets increased the financial sustainability of the participating Over the last 15 years, ANSAB has facilitated and implemented a wide CBOs and increased their confidence when approaching poten- range of nature-based enterprise initiatives--with visible results. In 2006 tial donors (Bumacas et al. 2006:299). alone, their enterprise development work with CFUGs helped 65,351 people When they do participate directly in capacity-building, the to realize US$5.54 million in income (ANSAB 2007:3). In 2005, some 70 most successful ISOs blend an assortment of learning approaches percent of the NTFP producers who received ANSAB's market information in order to maximize the relevance and effectiveness of their train- reported increased bargaining power and therefore higher incomes as a ing. For instance, many ISOs emphasize field visits (one village to result of the information. In addition, ANSAB's direct work with CFUGs has another), regional workshops and forums for exchange, and a led to the sustainable management of more than 86,584 ha of forest blend of participatory and more traditional methods to build across Nepal (ANSAB 2007:8). technical skills. The abilities to think holistically about the capac- ity development process and to draw on their wide reach and ANSAB's cross-cutting strategic partnerships are also critical to its system of contacts to facilitate learning are signal characteristics of success. In 2002, they formed a public-private alliance that brought the effective ISOs (Bruneau 2005:43­47; Carter and Currie-Alder Rainforest Alliance together with Nepalese companies, NGOs, and Nepal's 2006:136­138; Berkes et al. 2004:12). federation of CFUGs (known as FECOFUN), to create a program to certify NTFPs produced by the Community Forest User Groups. To date, 24 products, such as handmade paper and cosmetic ingredients, have Building Social Capacity received Forest Stewardship Council certification under this program. More than technical capacity is required to enable a community- Twenty-one CFUGs are involved in the production of these products based enterprise to thrive. Many of the capabilities that enable (ANSAB 2005b:6). In addition, ANSAB has facilitated the organic certifica- community efforts to succeed over the long term--group organiz- tion of dozens of herbs and essential oils within CFUG communities ing and institution building, negotiating and political skills, and the (ANSAB 2005b:12). ability to distribute benefits and costs fairly--require significant social capacity within communities. 81 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 ISO PROFILE: ANAI ASSOCIATION, TALAMANCA, COSTA RICA The ANAI Association, winner of the 2002 UN Equator Prize, describes itself ANAI views the spin-off as a mark of its success and its evolution. In fact, as a "grassroots support organization," helping other grassroots groups in its stated purpose is to become part of the local fabric of support, function- Costa Rica's Talamanca region to carry out sustainable agriculture projects ing as just one node in a network of self-sufficient local organizations. In and conservation initiatives, from agroforestry to sea turtle conservation and ANAI's own words: "The role of locally based Grassroots Support Organiza- ecotourism (ANAI 2005a). ANAI grew out of a loose partnership between tions like ANAI is increasingly recognized as a necessary part of what may be North American biologists and Talamancan farmers in the late 1970s, called an `ecology of organizations,' including specialized technical aid initially formed to provide technical support for conservation-focused groups, donors, lending institutions, advocacy and watchdog groups, community development projects (ANAI 2005b). Since then, ANAI has used government agencies, and grassroots or `base' groups....At every stage it training courses, seed grants, networking, and targeted research to support has been appropriate for us to ask ourselves what we should be doing for the efforts of 20 grassroots conservation organizations, a 1,500-member others and what we should be training our neighbors to do [themselves]. farmers' cooperative, and 16 local ecotourism ventures (ANAI 2005c). Increasingly, though, local groups are taking the initiative to let us know what they think they can do, and what they would like to learn to do, and When ANAI first began working on agroforestry in the 1970s, there were few where they need help" (ANAI 2005a). local organizations to work with on the ground. As a result, while it was providing seeds and training to community groups willing to participate in agroforestry projects, ANAI also placed an early emphasis on building the HOW DOES ANAI FACILITATE organizational and technical capacities of local groups. ANAI's focus on local SUSTAINABLE COMMUNITY DEVELOPMENT? capacity-building took a major step forward in 1991 when it established its Regional Training Center. Here, ANAI offers agriculture, health, technology, Focus Activities conservation, and leadership workshops to local indigenous communities Capacity-Building I Hold workshops and outreach activities in: (ANAI 2005d). Over time, ANAI has evolved into a true intermediary support I Agricultural diversification organization, channeling funds to grassroots organizations and connecting I Organic certification them to sources of technical, financial, and marketing support. It has also I Sea turtle restoration become skilled in creating linkages to government agencies, research insti- I Health tutions, and international funders and in promoting the efforts of its clients I Organizational management and leadership to these actors (Carroll 1992:217). Information I Collect, analyze, and distribute information about: I Ecotourism markets The substance and tenor of ANAI's work has changed over the years, largely I Agricultural best practices as a result of the organization's own success. For instance, ANAI began its I Biodiversity efforts to conserve Leatherback sea turtles in 1985, concentrating initially on I Agricultural markets reducing poaching by protecting the beach of the Gandoca-Manzanillo Wildlife Service Provision I Work with local enterprises to develop business plans Refuge, where the turtles came ashore to breed. Between 1985 and 2004, I Distribute donor funds to local initiatives ANAI developed an entire program to achieve both development and conserva- Networking I Partner with Costa Rican government to secure good tion goals through scientific monitoring, community outreach and education, policies for sustainable development projects and and ecotourism. By 2003, the new ecotourism ventures were generating over conservation of biodiversity US$93,000 for the coastal communities, and poaching was virtually non- I Coordinate enterprise and NGO coalitions, such as existent (ANAI 2005e). The project had become so successful that ANAI's ecotourism networks and farmers' cooperatives central coordinating role no longer seemed appropriate. The project spun off Source: ANAI 2005a, 2005b, 2005c, 2005d, 2005e. from ANAI and joined WIDECAST, a global network of turtle conservation groups and researchers (WIDECAST Latin American Program 2007). Evidence indicates that early attention to social processes is social interactions and group learning are deliberately incorpo- worth the effort. In analyses of watershed development projects in rated as part of technical capacity-building courses, in order to India, researchers have found that NGO-led projects have tended induce a new social dynamic in the group. In some cases, these to invest more heavily than government-led projects in social participatory exercises and guided group interactions are broken organizing. As a result, most NGO projects recorded a higher out separately and become a precursor to the community under- success rate in terms of creating self-sustaining local institutions-- taking group action in the field. such as village watershed committees--that continued to manage The Watershed Organisation Trust in India has recently their lands sustainably and profitably (Sharma et al. 2005:2; Kerr begun piloting an approach to social capacity-building when it et al. 2002:77; Turton et al. 1998:2). begins to work with a new community on watershed rehabilitation Social capacity-building is a matter of emphasizing process and water harvesting. It calls its approach wasundhara--a term which as well as substance. What this often means for ISOs is that guided means "mother earth" and connotes caring and compassion within 82 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N the community. In it, facilitators from WOTR lead the group Competent ISOs consciously work on their own visioning process through a process of examining the wealth dynamics of the and constantly try to build their connection to their clients, since community, including an assessment of needs and aspirations within trust and reputation are sometimes their most valuable assets in the village population. This is followed by a visioning process where their work to guide and empower communities and build networks CAPACITY the community generates a shared goal, agrees upon the steps to get among stakeholders at many levels (Lobo 2007). there, and assigns responsibilities for action. In order to cement the When social capacity-building is successful, it gives rise to agreement and build trust, the group then undertakes several days capabilities beyond just a shared vision and the ability to work of cooperative field work together in the watershed. The idea is to productively together. It can enable groups to internalize learning engage the entire community in an on-going dialogue focused on processes and to problem-solve, and it can give them the confi- creating a more equitable future that offers benefits for every house- dence and flexibility to collaborate with outside partners and to hold in the village, rich and poor (Lobo 2007). gain access to outside sources of support. These are the very abili- While many competent local NGOs can facilitate social ties that help local enterprises sustain themselves in the face of capacity-building exercises, WOTR was able to use its extensive outside shocks, such as economic downturns, unfavorable regula- experience in nearly 600 villages to design the wasundara tions, or natural hazards such as drought or floods. In this sense, approach, which is tailored to the caste and wealth situation in greater social capacity translates to greater social resilience. Maharashtra's villages and its relation to water in the arid rural landscape. Villagers tend to respect WOTR as a firm but fair "Upward" Capacity-Building "outsider" with a proven track record in helping villages success- No natural resource can be managed entirely at the local level, fully increase their access to water. This illustrates the point that even when communities have been granted significant resource the established reputation of an ISO can be an important factor rights. All such local efforts ultimately take place within the larger in convincing villagers to undertake a social capacity-building political environment. National policies and the attitudes and process like wasundara in the first place. Indeed, ISO effectiveness competence of elected officials and line-agency staff have a very depends in some measure on the ISO's own social capacity. real impact on the success of management efforts at the local level. 83 BOX 2.5 LOCAL EMPOWERMENT, UPWARD INFLUENCE: THE AGA KHAN RURAL SUPPORT PROGRAMME THE AGA KHAN RURAL SUPPORT PROGRAMME physical infrastructure for the villages. With all village house- (AKRSP) is an internationally funded NGO working to promote holds represented, the VOs convened to make investment development in the remote communities of Pakistan's decisions based on principles of equity, productivity, and mountainous northern regions. Its considerable success as an sustainability. Initial investments included transportation and intermediary support organization is a testament to the power sanitation infrastructure. The communities then began to of its two-pronged approach: working "downward" to build local provide other services through their VOs, such as training in institutions and social capacity and "upward" to change community forestry practices and in veterinary care for government attitudes and development practices. livestock. Savings programs were established for each VO, with each member contributing a share. These funds, now totaling When AKRSP began to serve the isolated villages of the Chitral over US$8 million, are used as a source of collateral to obtain and the Northern Areas in 1982, it did so in a governance financing for community projects (Zehra 2005:25­26). vacuum at the local level. This vacuum was created in the 1970s when the central government, in a bid to increase its Today the VOs involve about 90 percent of the region's popula- political control of the region, abolished the traditional local tion, and many have federated into clusters to capitalize on governance structures known as mirdoms, which had controlled economies of scale for larger investments (AKRSP 2003; Zehra many aspects of village life and natural resource use. In the 2005:28). AKRSP has facilitated these processes from the fractured governance situation that resulted, local leadership start by working closely with the villagers on the ground to became less effective, and forest and pasture resources establish the VOs, to fund them initially, and to provide techni- degraded quickly (Zehra 2005:22­25). AKRSP decided its cal support and information. All of these efforts have been initial development efforts must focus on founding and support- grounded in AKRSP's goals for social capacity-building among ing community organizations that could govern and provide for villagers. Participation, self-help, and cooperation are well- communities on their own, betting that this would be the most established norms among the isolated communities, and effective development strategy for such remote locales in the AKRSP has used this to its advantage in developing social long term (Zehra 2005:25). capital through the village organizations (Zehra 2005:41­42). The strategy has paid off. These harsh mountain valleys, histor- The VOs' work has helped to cut poverty rates in the region ically defined by religious and political divisions, are likely nearly in half over the last 25 years (Malik and Wood 2003:1). some of the most challenging regions of the world to promote With NGO partners like the World Conservation Union­IUCN economic opportunities. Yet by focusing on promoting commu- and funding from Pakistan's government and bilateral donors, nity development, AKRSP has organized nearly 4000 AKRSP has helped communities achieve an impressive range of functional village organizations (VOs) that have effectively filled conservation and development goals (Zehra 2005:32; AKRSP the governance gap that once existed (AKRSP 2003). 2003). These include slowing deforestation and providing electricity for 18,000 households through small hydro dam The VOs--and parallel women's organizations (WOs), exclu- projects. In the process, community decision-making structures sively for women--initially formed around building productive have been strengthened. For example, all proposed dams go 84 Intermediary organizations are often in a position to engage with government in a number of different capacities through consensus-oriented planning within the village organi- and hence can play an important role in building the capacity zations before being approved (Khan 2005:5­7). of government to further grassroots development. "Upward" CAPACITY capacity-building refers to the efforts of ISOs to improve the Yet even as it has stressed local empowerment and the gradual skills, adaptability, and receptiveness of government to more maturing of local institutions, AKRSP has always understood participatory approaches and its active engagement with the inescapable role of government in its work. In its early years emerging institutions at the local level (Carroll 1992:122­125). of operation, AKRSP focused on earning legitimacy and making At first, ISO dealings with government often concentrate on gains in natural resource management and renewable energy mitigating the immediate dysfunctions of government, minimiz- projects in one region of the country. Its primary concern ing harmful interference and neutralizing the often hostile view regarding the provincial and federal government was to that official agencies take of local resource management. One of convince officials not to actively deter its efforts (Najam 2003:2). the most effective ways to do this is to act early on to get support from highly placed government officials, based on a compelling As AKRSP became more established, it began to shift its strat- vision for the work as well as the solid reputation of the ISO. This egy to explicitly target line agencies and government officials can earn the organization some maneuvering room at lower with training sessions and field visits. These efforts began to levels of the bureaucracy, and it is one reason that politically pay off in the form of new attitudes and approaches to rural savvy leadership can be an important advantage for an ISO. development policy in the early 1990s. As a result, the NGO ISOs may also directly intervene at the policy level on began to have opportunities to collaborate directly with govern- behalf of their local clients. For example, in 2001 ANSAB ment on education, health, and forestry projects. Leery of the convinced Nepali forestry authorities to lift their ban on the dangers of becoming too closely associated with government, harvesting of yarsagumba, a valuable medicinal fungus. Earlier, AKRSP's leadership made a conscious effort to avoid over- unregulated harvesting had badly depleted the fungus; in spite of reliance on government funding. It reserved government a total ban on local use, rampant illegal harvesting continued. collaboration for one portion of its portfolio and treated it as an ANSAB argued that legalizing the harvest and trade of opportunity for upward capacity-building, particularly in terms yarsagumba by Community Forest User Groups under careful of improving social-organizing capacity within government guidelines would give these groups the incentive to protect the agencies (Najam 2003:2-3). resource. ANSAB's proposal was taken seriously by forest officials since they had worked productively with ANSAB for Finally, after it had been working for more than 20 years, the many years to help local user groups establish sustainable organization found itself collaborating with officials who had regimes for harvesting other forest products (ANSAB 2005b). grown up in the villages where AKRSP programs were in place. In addition to direct intervention and advocacy, ISOs use a As it garnered success in the field and earned recognition variety of training and engagement strategies, profiled below, to nationally and internationally, AKRSP found its role with drive positive change in government agencies and build govern- government shifting to that of a respected advisor (Najam ment capacity. 2003:2). The results of this work are visible on the ground. For example, in the late 1990s federal and provincial governments Training and Dialogue. Organizations that are engaged in agreed, under guidance from AKRSP, to give 80 percent of all projects on the ground have a wealth of information and project hunting license fees to local conservation funds. These funds experience that could inform government activities, but there are are now used by the villages for projects ranging from school few channels to effectively communicate all this to those in govern- construction to compensation for shepherds who sustain losses ment who could use it. One method for reaching policymakers from snow leopard predation (Zehra 2005:32). AKRSP illus- and line-agency officials directly is simply to offer training services trates that ISOs that are able to attain this level of that they find worthwhile. These may be technical courses or field respectability within government and still retain their flexibility demonstrations, or they may involve more dialogue and interac- and connections at the grassroots level can become a potent tive training in social and policy matters. When carried out force for change. skillfully, such training contributes to a wider communication and influence strategy that ISOs use to create the "institutional space" AKRSP's successes have inspired a burst of successful imitator for local programs to succeed. Organizations such as WOTR, NGOs across the region as well as a new government focus on Sadguru, and MYRADA--all of which facilitate community- providing support at the local level. This has made what was once based watershed restoration in India--train government officials a services and governance vacuum a crowded and competitive at their training centers and organize demonstration visits and workspace (Najam 2003:4). By 2000, at least eight rural support workshops for officials (Sharma et al. 2005:10). programs were modeled on AKRSP's approach, and these ISO-instigated workshops or other public meetings can programs had catalyzed the formation of 20,000 additional become a setting in which policymakers and practitioners interact community organizations (Zehra 2005:29). 85 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 with representatives of poor people in an atmosphere of learning. sible goal to achieve without engaging government in a construc- UNDP's Equator Initiative (see Box 2.1) provides an example of tive manner. Attempting to influence or collaborate with this on an international scale. As a respected external actor, government actors is important in large part because bypassing UNDP draws attention to successful ecosystem-based enterprises these institutions is not a viable strategy for the longer term. and examples of best practice, and it brings actors from grassroots organizations and governments together on equal footing in inter- national forums (Hooper et al 2004:142). ISOs: Building Linkages and Networks Staff Exchanges and Partnerships. A very straightforward A core strength of intermediary support organizations is their method for creating dialogue with government is to encourage ability to build ties between the diverse actors in development. short- or long-term exchanges of personnel for the purposes of ISOs are well equipped to facilitate partnerships between hands-on training and information exchange. A number of the community-based organizations and government, between local more established ISOs in India and Pakistan have used such entrepreneurs and outside sources of support, and among the secondments to good effect. In its early years of operation, the many NGOs and government actors working--sometimes at work of the Aga Khan Rural Support Programme (AKRSP) on cross purposes--in a given area (Edwards and Hulme 1992:84; rural development in northern Pakistan effectively replaced the Brown 1991:812). weakened government's development role in that area. However, This "bridging" or networking function lies at the heart of the ISO later played a key role in developing capacity in the efforts to sustain and scale up successes in CBNRM and nature- public sector through joint activities, training sessions, and based enterprise. When the ISO bridging function is effective, it deputation of staff from forestry, fisheries, and wildlife depart- supports cumulative learning and builds a web of relationships ments to work for AKRSP (Zehra 2005:29­30). (See Box 2.5.) that persist long after the ISO has exited the scene (Carroll ISOs may also influence government attitudes and exchange 1992:104). ISOs that are able to build such self-sustaining technical knowledge by working as consultants on government- networks of capable organizations can then gradually withdraw run projects. When working with reasonably supportive their direct support and focus on replicating their efforts governments, this can be one of the most efficient ways to build elsewhere. By supporting the growth of other implementing capacity within the government bureaucracy itself. AKRSP was NGOs and improving pathways for communication and learning able to achieve notable changes in government policy and at the grassroots level, an ISO can also scale out its impact through practice through its direct collaboration with the government of multiple avenues at once. Pakistan on development projects. Furthermore, a key strength of ISOs is their ability to Other forms of direct partnership with government can be transcend the limits of localized action, fostering strategic useful as well. In Namibia, the Ministry of Environment and planning across multiple scales and sectors and influencing policy Tourism (MET) became one of 12 partner organizations that at higher levels. These capacities reflect a combination of horizon- affiliated as the Namibian Association of CBNRM Support tal and vertical linkage-building (Bebbington and Carroll Organizations (NACSO), which has acted as an ISO for Namib- 2000:xiii; Bruneau 2005:27). ian conservancies. By joining as a partner of NACSO, the MET has been able to effectively "mainstream" into the government Horizontal Networking bureaucracy the progressive approach to wildlife governance Horizontal linkages--those between local organizations-- that NACSO represents. enhance the capacity of grassroots organizations for collective However, while partnerships between government and ISOs action and increase the sustainability and scalability of local offer many potential benefits, they are always a delicate matter. development efforts (Brown 1991:810­811). Catalyzing the The origins and terms of the partnership--which party initiated growth of new relationships and institutional arrangements can it, who controls funding, and relative levels of competence on be an area of strength for many intermediary support organiza- both sides--can influence the balance of independence and influ- tions. ISOs often focus on strengthening connections between ence that an ISO is able to maintain. Furthermore, support for local groups as part of building social capacity. In other cases, collaborative efforts can wane with changes in government ISOs themselves emerge as the result of groups federating in leadership, jeopardizing the common ground between the state response to the limitations of local organizations. In both cases and an ISO. A larger limitation of collaboration as a model for ISOs are in a position to be particularly successful networkers. building capacity is that it rarely influences the underlying incen- Their efforts can range from creating informal forums for infor- tive structures and organizational attitudes of government mation exchange or more-formal conferences and committees of agencies. As a result, it may only result in incremental change local representatives to actively supporting the efforts of grass- (Howell and Pearce 2000:75). roots organizations to form official networks or federations on The scaling up of CBNRM projects ultimately requires their own. Even in places where there is a strong history of grass- navigating existing policy and enforcement practices--an impos- roots organizing, ISOs can play a networking role by improving 86 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O NCAPACITY synergies between complementary efforts, allowing for cross- this phenomenon among local development projects within its fertilization of ideas and institutional learning and improving network. External evaluations rarely produced clear recommen- groups' access to new services and sources of information. dations or significant follow-up and often suffered from the The People's Rural Education Movement (PREM), an ISO creation of an expert/inexpert dynamic that hindered real capac- based in the Indian state of Orissa, is a good example of an ISO ity-building. In response, Papa Andina began bringing peers from that is adept at the networking function. PREM, whose develop- a range of research and development projects in the region ment work stresses education, health, and sustainable livelihoods, together for three-day workshops to evaluate methodologies, has been very active in the establishment of formal networks at conduct site visits, and exchange ideas. These "horizontal evalua- the regional and national levels. It heads a large supernetwork of tions" produced recommendations that were "actionable" and 172 independent community-based organizations, from which it strengthened the confidence and sense of community among has helped several more specialized networks to emerge. These participating organizations (Thiele et al. 2006:1). include Utkal Mahila Sanchaya Bikas, a federation of women's The concept of horizontal evaluations can also be applied self-help groups; the National Advocacy Council for Develop- more informally to good effect. WOTR organizes annual "peer ment of Indigenous People, which represents indigenous review" processes among villages participating in watershed communities in 18 states; and the East Coast Fisher People restoration. Representatives from village watershed committees Forum, which organizes and advocates for poor fishing commu- visit and evaluate progress in other villages, creating opportunities nities. PREM mentors and provides managerial support for these to learn from successes and recommend areas for improvement. organizations (PREM 2007). WOTR has noticed that these reviews spark an element of In addition to their obvious importance for scaling up, competitive pride among watershed committees, none of which horizontal linkages can also strengthen existing local initiatives want to look bad in front of their peers (Das Gupta et al. 2005:27). by improving feedback and expanding opportunities. For WOTR also integrates peer reviews into a wider communication example, externally funded development projects often suffer strategy by awarding prizes to top performers and involving from a lack of relevant feedback from the outside. Papa Andina, government officials and neighboring villages in recognizing a regional organization affiliated with the International Potato success stories. Center that promotes research and development activities Hence, horizontal evaluations fill several important roles: among farmers in the Andes region of South America, noticed they help spread the word of successful approaches (evaluators can 87 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 ANATOMY OF AN ISO: THE SELF-EMPLOYED WOMEN'S ORGANIZATION (SEWA), INDIA INCREASED EMPLOYMENT OPPORTUNITIES HIGHER WAGES MORE SECURE AND RESILIENT LIVELIHOODS COOPERATIVES TRADE GROUP UNIONS (Artisans, Vendors, Service Providers, Agriculturalists) (Carpenters, Scrap Collectors, Garment Stitchers ) I Markets I Social Security I Raw Material Inputs I Protective Legislation, Lobbying I Skills and Management Training I Protests, Rallies I Contracts FINANCIAL SERVICES BASIC SERVICES I Savings I Child Care I Credit I Literacy/Numeracy Education I Life Insurance I Legal Aid I Mortgage Recovery & Asset Titles I Community Health Care I Housing More than one million poor women are involved in SEWA, an Indian ISO that combines elements of more traditional trade unions and cooperatives to assist small-scale sellers, producers, and laborers. Source: Uphoff et al. 1998: ii. bring lessons learned back to their own communities), build the Capacity-building at the local level plays an important capacity of local organizations to evaluate and solve technical and complimentary role in this process, since grassroots organizations management issues on their own, and motivate communities to a interacting with government agencies need confidence, negotiat- higher level of performance. Furthermore, all these interactions ing skills, and credibility. An important part of an ISO's vertical strengthen the network of peer groups tackling the same resource networking ability is its familiarity with the government system and governance issues in a region, opening channels for further and its skill in transferring to grassroots groups the ability to deal learning and collaboration in the future. with external actors and negotiate unfamiliar procedures (Carroll 1992:122­125; Brown 1991:826; Hooper et al. 2004:136). Vertical Networking In some cases, ISOs are able to use their role as an independ- By virtue of their position of operating between local organiza- ent and respected party to create opportunities for equal tions and higher-level actors, intermediary support organizations exchanges between grassroots and government actors. A study of are inherently suited to the task of strengthening vertical nominees of UNDP's Equator Prize found that one advantage of linkages--connections between local groups and the state or the program was that it facilitated situations that put community, central government, donors, and various international organiza- national, regional, and global leaders all on equal footing, facilitat- tions. In some cases, strengthening such linkages can be as ing the rate of political scaling-up for many of the community straightforward as facilitating access of local groups to funding, groups recognized in the process (Hooper et al. 2004:142). or it can be as delicate as improving relationships between state Another example of this process is the Carchi Consortium, agencies and the poor and paving the way for government to an initiative that originated as a roundtable for NGOs and univer- better support local natural resource management. Improving sities to share information on watershed management in northern communication and exchanges of learning can also be as impor- Ecuador. It soon expanded to involve local stakeholders and tant here as in horizontal networking, potentially contributing to government representatives. As it began to gain recognition as a greater transparency as well as greater adaptability and respon- legitimate actor in the region, the consortium evolved into a forum siveness of actors at different levels. for local and non-local stakeholders to exchange ideas and address 88 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N conflicts. It has been successful at bringing together municipal governments and local organizations to establish joint watershed planning at the local level and strategic management at a landscape scale. By encouraging ongoing exchanges, the consor- CAPACITY tium has also created opportunities to raise issues such as women's rights and environmental sustainability across scales. Most impor- tant, it provides a neutral space for local stakeholders to interact with the state and influence government processes (Carter and Currie-Alder 2006:132­133). In practical terms, it is usually impossible to separate the horizontal and vertical networking functions that ISOs perform. They are usually integrated into a unified effort to help local organizations connect to sources of help and support at all levels. The Botswana Community-Based Organization Network (BOCOBONET), for instance, serves as an umbrella organiza- tion supporting communities that have been given authority to manage local wildlife. It offers training and communications services, but its most important function is its networking role. BOCOBONET facilitates horizontal linkages by providing a forum for local organizations to exchange experiences and dissem- inate lessons learned. But it has also strived to use its position to improve dialogue and coordination between community groups, NGOs, the private sector, and the government (IUCN Botswana 2006). Among the policy impacts of its work have been greater support for joint venture activities and a national review of CBNRM in 2003 (IUCN Botswana 2006). Like many active networks, BOCOBONET realizes that building effective capac- ity on the ground benefits greatly from political connection. ISOs: Improving Access to Markets While scaling out nature-based enterprises is an important goal, One source of ISOs' effectiveness in connecting community an equally important objective from a poverty-reduction stand- enterprises to markets is their ability to catalyze "upstream" point is to scale up the income-generating opportunities within market research, product development, and process improve- these schemes. CBNRM projects in particular are very often ments. In the early 1980s, ANAI Association began a series of hindered by an inadequate focus on the business side of sustain- research and marketing studies to develop higher-value crops and able resource management. One challenge for every nature-based more-efficient cropping systems for local farmers. To bring these enterprise effort is its dependence upon the viability of local and to their local clientele, they partnered with a local farmers' wider markets and the ability of local people to reach and cooperative in a three-year crop diversification program. In this navigate them. Both of these issues can present daunting instance, ANAI acted like a government research and extension challenges to small farmers, foresters, and other natural service, but with greater flexibility and accountability to local resource­based entrepreneurs. people (Carroll 1992:214). Intermediary organizations, by virtue of their connections ` to the wider world, are potentially well positioned to improve local producers' relationships with local, regional, and--in some cases--international markets. For example, AKRSP's work in ISOs: Facilitating Finance northern Pakistan focused primarily on building and supporting As trusted intermediaries, ISOs are logical candidates to help community organizations, but it also included an enterprise community groups and local entrepreneurs connect to sources of development arm that was able to use the ISO's size and connec- finance. In many instances, ISOs act as nodes for the distribution tions to its advantage (See Box 2.5). Carpet makers and dry of project funds from governments or international donors. In fruit merchants are among the industries that gained good access India, SEWA and WOTR have acted as receptacles for project to national and international markets through AKRSP's funds from the government's "watershed development" program, involvement (Zehra 2005:31). which they then disbursed to village watershed committees for use 89 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 TABLE 2.2 INTERMEDIARY SUPPORT ORGANIZATIONS AROUND THE WORLD PLACE NAME YEAR EST. TYPE ISO FUNCTIONS SELECT ACCOMPLISHMENTS L A T I N A M E R I C A Costa Rica Asociación ANAI 1978 Grassroots Builds capacity of community organ- By 2003, ecotourism ventures initiated by Support NGO izations and local environmental ANAI generated $93,000/year for coastal enterprises in forest products, communities, and poaching had been ecotourism, and agriculture. Trains reduced on beaches where ANAI has turtle leaders and connects local groups to conservation programs. Farmers co-op that technical and financial support. ANAI started provides consistent market and Source: ANAI 2005a-f better prices for 1,500 farmers. Peru Asociación para 1986 Training NGO Provides technical support to Helped five communities obtain FSC certifi- la Investigación y community organizations to help cation for 25,000 ha of forest. Implemented Desarrollo them generate income and improve carbon-capture program through Clean Integral (AIDER) living standards while improving Development Mechanism of Kyoto Protocol. the environment. Conducted community forestry management Source: AIDER 2007 training in 22 communities. Guatemala Asociación de 1997 Federation of Holds technical and managerial Has trained 6,839 community forest enter- Comunidades Community training courses for and enables prise members in forestry and processing Forestales del Enterprises information-sharing among 22 techniques and business management. Petén (ACOFOP) communities that manage forest FORESCOM halved the cost to receive FSC concessions. In 2003, ACOFOP certification for the 12 enterprises it has Source: Nittler and created FORESCOM--a commercial certified, which are responsible for 500,000 Tschinkel 2005:10­11; association of ACOFOP members-- ha of community concessions. In 2007, Chemonics to process, market, and certify the coordinated sales of over 2.6 million board 2005:8, 28, 30; Saito 2008 communities' forest products. feet of timber. Andes Papa Andina 1998 Regional Trains smaller Andes NGOs to help Taught 1,000 farmers to process native Research and potato farmers organize effectively, products, generating employment and Development gain access to new technologies income and developing new markets. T'ika- NGO and markets, and innovate market papa branding project brings fresh native Source: Valcárcel chain solutions. potatoes from 500 poor farmers to Lima 2007; CIP 2007 supermarkets. A S I A - P A C I F I C Nepal Asia Network for 1992 Networking Works with Community Forest User In 2006, helped over 65,000 forest dwellers to Sustainable NGO Groups, offering technical support realize US$5.54 million in additional income. Agriculture and and linkages to markets, NGOs, and Increased the capacity of over 500 businesses Bioresources government to promote nature-based to produce and market natural products. Source: ANSAB (ANSAB) enterprise and biodiversity. Helped 21 community groups to obtain Forest 2005a; ANSAB 2007 Stewardship Council certification. Pakistan Aga Khan Rural 1982 Community Builds the capacity of community Per capita income in districts where AKRSP Support Support NGO organizations and government works rose from $131 to $241 between 1991 Programme officials, using training sessions, and 2001, while the poverty rate fell from 67 (AKRSP) collaboration, and hands-on percent to 34 percent. Has helped mobilize Source: Khan approaches. Leads natural resource US$8 million in savings in 4,000 community 2004:18­19; Zehra management and poverty reduction organizations it helped established. 2005:20; efforts in Pakistan's north. AKRSP 2003 90 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N TABLE 2.2 INTERMEDIARY SUPPORT ORGANIZATIONS AROUND THE WORLD (CONTINUED) PLACE NAME YEAR EST. TYPE ISO FUNCTIONS SELECT ACCOMPLISHMENTS CAPACITY A S I A - P A C I F I C Bangladesh Bangladesh Rural 1972 Finance, Facilitates local development, As of June, 2007, BRAC microfinance had Advancement Training, and working broadly in health, education, helped create almost 7 million jobs in Committee (BRAC) Research NGO social development, finance, and agriculture, forestry, trade, and small enter- environmental areas. Offers rural prises. Had loaned over US$4.1 billion, with microfinance programs. Partners a repayment rate of 98.3 percent. Operates Source: BRAC 2005, with World Food Programme and 17 Training and Resource Centers for liter- BRAC 2007 other international NGOs. acy, health, and business training. Philippines Claveria Landcare 1990 Agricultural Forms and links farmer-led Reaches more than 10,000 farmers through Association Extension NGO "Landcare" groups. Conducts train- 15 partner institutions. Soil and water (CLCA) ing sessions and cross-farm visits. conservation are now the norm in villages Works with local governments to where it works. Landcare groups have Source: FAO 2004; promote sustainable agriculture. expanded their activities to cut-flower Catacutan production, post-harvest processing of and Tejada 2006:1 produce, and furniture-making. Thailand Community 2000 Quasi- Offers financial and technical assis- As of 2005, helped to secure land tenure Organizations Governmental tance to community-based groups in for over 12,000 families in the Bangkok Development Organization urban slums. Strengthens groups' slums. Assisted 569 rural towns with Institute (CODI) negotiating and organizational skills, community planning for sustainable devel- and connects them to political opment and established 40 town "Learning decision-making processes. and Pilot Centers" for community members Source: CODI 2006, to test agricultural cultivation and process- Boonyabancha 2005: 34 ing methods. Fiji Fiji Locally 2001 Information Connects and builds the capacity of By 2007, over 200 Local Managed Marine Managed Marine Forum NGO community groups to manage marine Areas (LMMAs) had been established, involv- Areas Network resources. Local NGOs in network ing 279 villages and 8,500 sq km of coastal (FLMMA) share ideas and findings and fisheries. Over 1,000 people in Fiji trained in Source: LMMA advocate for changes in government LMMA methods. Incomes are higher in Network 2007 fisheries management policies. villages involved in the network. India Self-Employed 1972 Trade Union Country-wide federation of trade For earthquake recovery project between Women's cooperatives of self-employed 2001 and 2005, trained over 4,500 farmers Association women. Provides capacity training, in animal husbandry techniques and estab- (SEWA) networking, and financing support. lished demonstration agricultural farms, salt farms, tool and equipment libraries, and 75 Source: SEWA 2005, child care centers; 35,000 villagers received 2007a, 2007b capacity training in some form. India Watershed 1993 Capacity- Builds capacity of local NGOs to As of 2008, collaborates with 184 NGOs Organisation Building NGO run watershed development projects and agencies, facilitating watershed devel- Trust (WOTR) across the State of Maharashtra. opment nearly 400,000 ha in three Indian Has created a network of community states, benefiting 650,000 people. Has watershed groups that helps to trained nearly 150,000 people in watershed maintain and expand these efforts. rehabilitation, including participatory Source: WOTR 2007a methods and planning processes. and 2007b 91 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 TABLE 2.2 INTERMEDIARY SUPPORT ORGANIZATIONS AROUND THE WORLD (CONTINUED) PLACE NAME YEAR EST. TYPE ISO FUNCTIONS SELECT ACCOMPLISHMENTS A F R I C A Namibia Namibian 1996 NGO Umbrella Umbrella group for 11 NGOs and one NACSO services such as business training Association of Network university. Provides information sharing, and legal advice have helped move new CBNRM Support technical assistance, capacity-building, conservancies from fledgling organizations Organizations regional coordination, and monitoring and without enterprise experience to income- (NACSO) evaluation to support the management generating institutions with high and enterprises of national conservancies. community participation. In 2006, conser- Source: USAID and NACSO secretariat convenes working vancy communities accrued N$26 million WWF 2007:2­3; groups on resource management, in livelihood benefits from tourism and NACSO 2003; business and enterprise, institutional related commerce, creating nearly 6,000 Buck et al. 2003:16 development, etc. full- and part-time jobs. Botswana BOCOBONET 1999 Support network for nine community-based Has provided a channel for communica- natural resource organizations in Botswana. tion between communities and a platform Source: IUCN Promotes information-sharing and connects for rural voices. Its members' work in Botswana them to technical support, funding, and rural communities has notably shifted 2005a, b, c; Buck at al. government services. Also conducts train- attitudes toward natural resources, 2003:17 ing, workshops, and lobbying. particularly wildlife. Zambia Community 2002 A commercial network that has evolved into Between 1999 and 2006, trained 30,000 Markets for an ISO. Promotes conservation and farmer households in conservation farming Conservation access to niche agricultural markets. Builds techniques. Crop yields have consequently (COMACO) farmer capacity to gain access to markets risen 6­20 percent. In 2005, earned over and to farm sustainably. US$3,000 profit on soy and honey products, which was reinvested in Source: COMACO 2006a, b COMACO's work. at the project level. In return, ISOs also must act as auditors and information nodes, monitoring progress and passing on to funders data on project accomplishments and lessons learned. They must therefore literally act as honest brokers (Ebrahim 2003:155). ISOs may also be instrumental in connecting ecosystem- based enterprises to sources of private finance or investment. In fact, in some cases, for-profit, socially responsible businesses can become ISOs, investing their own capital in local enterprises they deem central to their supply chains and providing an array of support services to these enterprises to help them stabilize produc- tion, expand their local benefits, and raise their product quality. Dean's Beans--a Fair Trade coffee importer and retailer in the United States--is one such example (See box on following page). ISOs: Increasing Equity and Transparency As a result of their "mid-level" status in many development efforts, ISOs are well positioned to improve the transparency, accountability, and inclusiveness of the organizations they support, particularly in the beginning phases of a community enterprise. ISOs that offer projects or services that are in high demand can insist that communities meet governance and partic- 92 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N PRIVATE SECTOR ISOs: THE EXAMPLE OF DEAN'S BEANS The private sector can play a crucial part in supporting CBNRM and its company has played a political role, supporting indigenous communities associated enterprises in rural communities. In many instances, private fighting oil pipeline development in Ecuador and Peru. It has helped the CAPACITY sector companies from outside the community can provide market outlets communities to negotiate among themselves and with oil companies, and for nature-based products. The markets for Fair Trade items such as its coffee purchases have broadened the economic opportunities available coffee, cocoa, and bananas or for Forest Stewardship Council­certified to the communities. wood work in this way, with retailers specifically advertising the social Dean's Beans also supports development projects within the communities and environmental benefits of the products as selling points. in which it works. In Ethiopia, the company is providing coffee-producing In some cases, this marketing link turns into a more direct and substan- communities with the materials and technical support to build water wells. tive partnership between the rural enterprise and the outside retailer. For Elsewhere, it has assisted with health clinics, linking its coffee growers to instance, Alter Eco, a fair trade company headquartered in France, has technical and managerial know-how for these centers and supplying the developed a close relationship with quinoa (a specialty cereal) producers communities with an extra premium above the Fair Trade minimum price for in Bolivia and is helping them to obtain organic certification to further their coffee to help pay for the clinic. The company even helps to develop distinguish their crop. Alter Eco pays an NGO with expertise in organic other forms of financing for farmers, including a microcredit program for certifications to train the producers' cooperative to adhere to these coffee cooperatives in Papua New Guinea (Dean's Beans 2008). standards (Alter Eco 2007). Similarly, The Body Shop, a high-end cosmet- In spite of--or because of--its outlays on social programs and capacity- ics company, has developed a Community Trade model in which it buys building, Dean's Beans' business model has proved quite successful, with shea butter and other cosmetic ingredients directly from 36 communities the company attaining a 14-percent profit margin on US$2.6 million in in 23 countries. As part of the Community Trade model, the Body Shop sales in 2006. The success of Dean's Beans and similar firms shows that offers communities a long-term market for their products along with a social activity and support services--the traditional work of the nonprofit "fair price" guarantee (Body Shop a, b). sector--can find their way into commercial business models, benefiting Some companies go even farther in their engagement with community both community enterprises and corporate interests. Dean's Beans argues enterprises and actually assume the role of an intermediary support that its support services and community advocacy are essential elements organization, providing a range of services such as technical advice, in controlling its supply chain and delivering consistent quality in its training, finance, and political advocacy on behalf of a community enter- beverages. It acts as an ISO not only to uphold its corporate principles, prise. Dean's Beans, a coffee and cocoa Fair Trade retailer based in the but also to serve its quality-focused but socially conscious customer base United States, is one example. In addition to its role as importer, the (McFadden 2007). ipation criteria in order to qualify, such as the equal participation impair an ISO's ability to partner or intervene with government of women in the group activity and in management decisions. agencies at other junctures in the enterprise process (Kolavalli Likewise, ISOs can help communities craft schemes for more and Kerr 2002:232). equitably distributing benefits, such as granting poor families Sometimes ISOs can put additional weight behind exist- preferential access to water or pastures in restored watersheds. ing efforts of marginalized groups to gain resource rights or ISOs are also well placed to encourage communities to establish curb abuses of power by government. In one rural district of consistent monitoring and reporting regimes, as well as bookkeep- Orissa, India, local activists in nine villages wanted to initiate a ing and auditing practices, so that members know the results of "social audit" of local government--a participatory process for their management efforts and can track expenses and the distri- holding gram panchayat officials downwardly accountable. bution of profits. While these may be outside values at first, they The activists collaborated with the national branch of Action- quickly become important to the success of nature-based enter- Aid, an international NGO, to implement the process. prises, which are predicated on continued support and confidence Although the right to conduct an audit has been a statutory by community members. requirement for state-led development projects since 1993, few Intermediary organizations can also perform a critical local groups have sufficient information on how to conduct one "watchdog" function in places where interactions between or are in a position to confront local elites. The NGO was able government, the private sector, and local communities have little to provide information and organizing capacity to local organ- formal oversight. They can help communities monitor and evalu- izers, which brought additional credibility to the process ate government actions and compare them to what the (ActionAid India 2002:14­17). government has promised, and they can serve as a repository for information gathered across a larger scale. For government programs they are directly involved in, ISOs can work to build in additional mechanisms for downward accountability. Clearly, this monitoring function needs to be performed deftly so as not to 93 YTICAPAC W O R L D R E S O U R C E S 2 0 0 8 SUMMING UP: CAPACITY Effective approaches to capacity development go beyond one-off technical I Effective ISOs are defined by several key qualities: credibility in courses or "how-to" training to allow local people to express their creativ- village circles due to their past successes, influence with government ity and entrepreneurial ability and to provide opportunities to develop authorities, good communication skills, and an understanding of the adaptive skills. power of publicizing. Local Organizations I The work ISOs do generally falls into four main categories: social and I technical capacity development; facilitating finance for CBNRM and Local organizations are essential for implementing and sustaining new enterprises; increasing equity and transparency of local organiza- CBNRM and creating ecosystem-based enterprises. Local organizations tions; and building linkages and networks for information sharing, include a broad range of bodies including resource management units political influence, and market connection. like forest user groups or watershed committees, as well as local government bodies such as village councils. Community-based organi- I ISOs typically adopt a long-term and collaborative approach to zations like NGOs, unions, cooperatives, church groups, and self-help capacity-building, often using their mentoring ability to nurture local groups are also local organizations offering important services to local NGOs and other service providers ("training the trainers") who may enterprises. As such, they are uniquely equipped to respond to commu- be more appropriate to provide direct skills training within a given nity demand. local context. I Because they are populated by people who know each other, local I ISOs pay special attention to the need to develop a group's social organizations such as resource user groups offer opportunities for capacity. To develop that, ISOs emphasize process, often using guided collective action and mutual assistance not always present in more group interactions, participatory and trust-building exercises, and geographically dispersed organizations. NGOs and other community- group visioning processes. In these exchanges, ISOs act as facilitators based organizations can provide key services to organize CBNRM and and honest brokers. can strengthen user groups through training in business and manage- I ISOs are often in a position to engage in "upward" capacity-building ment skills. with government agencies--that is, improving the receptivity of I Despite their advantages, local organizations often suffer significant government to community-initiated enterprises, improving its ability to weaknesses, including a restricted focus that can foster parochialism deliver training and support services, and securing its policy support to and insularity; lack of resources and connections that limits their ability ease regulatory burdens that often handicap rural enterprises. to grow and connect to markets; a lack of accountability to members of I A core strength of ISOs is their ability to build ties between the diverse the group, particularly if the group is dominated by a powerful leader or actors in development. This "bridging" or networking function lies at local elites; and a lack of inclusiveness of the poor, women, or other the heart of efforts to sustain and scale up successes in CBNRM and socially marginalized groups. nature-based enterprise. I The challenge is to work with local organizations to capitalize on their I ISOs are well positioned to communicate the importance of trans- strengths and facilitate a transformation from within that allows them parency and equity in local enterprises and to lobby communities to to become more inclusive and competent. Intermediary support organi- put in place auditing, benefits sharing, and participation practices zations can be important contributors to this transformation. that will maintain the confidence and support of community members. Intermediary Support Organizations I One of the most persistent barriers that rural nature-based enterprises I In the last 15 years, ISOs have begun to emerge as key actors in the face is the lack of support services that can enable inexperienced process of scaling-up nature-based enterprises. ISOs are distinguished communities to grow their business skills and expand their social and by high-level organizing, technical, or political skills that they use to institutional capabilities. ISOs, while important, are just one element in help local groups increase their capacity and functioning, and to a larger web of support that must also include governments, private connect to state or regional authorities and funding sources. They are businesses, civil society groups, donors, international NGOs, and other usually NGOs or other civil society groups such as labor unions, but they international organizations and that must persist over the long term. can also be private-sector businesses. 94 3. CONNECTION CONNECTING RURAL ENTERPRISES: NETWORKS AND ASSOCIATIONS Connection: Links to Learning, THIS SECTION: CONNECTION CAPACITY Support, and Commercial In this section, we explore the formal and informal networks and associa- Networks and Associations tions that ecosystem-based enterprises must rely on to gain information, connect to markets and technology, and organize themselves for political Horizontal links to other rural influence. Such networks are part of the essential architecture of scaling OWNERSHIP producers to gain access to up, providing the means for local organizations to share experiences, information, improve efficiency, expand their skills and influence beyond their usual sphere, and sustain and connect to markets themselves in a globalized world. This section: CAPACITY Vertical links to government and I Defines networks and associations and their role in helping rural the private sector to build political enterprises to learn and grow, particularly with relation to the poor. support, deal with bureaucratic I Examines the role of formal associations such as cooperatives and obstacles, and connect to technical CONNECTION consortia in helping small rural enterprises pool resources and and financial support achieve economies of scale. I Looks at the importance of learning networks that facilitate informal information exchange and foster group learning. WHAT ARE NETWORKS AND ASSOCIATIONS? I Describes the power of federations to magnify the voice of small producers and engage policymakers. Networks are dynamic and lasting connections among individuals, I Discusses the difficulty of starting and maintaining associations and groups, and enterprises--a form of structured social capital. They can federations and the problems of keeping them accessible to the poor be informal like learning networks or support groups or can be more and free of government manipulation. formalized, with rules and written charters, such as cooperatives, unions, trade groups, or federations. These more formalized networks we call associations. If they are to prosper--or even survive--rural enterprises must producer organizations, unions, enterprise networks, and federa- be connected to learning, support, and commercial networks. tions. Here we will refer to these structured organizations generally Such networks help compensate for the isolation and lack of as associations. Such associations often have written charters or market power that rural businesses typically suffer, and they help rules and many--but not all--are legally recognized entities. link the diverse array of local organizations to achieve common Associations are essentially networks that have been institutional- goals (Best et al. 2005:21­22). As mentioned in the last section, ized to pursue specific kinds of collective action. linkages and networks are principal tools in sustaining and scaling up nature-based businesses. Networks link rural producers in information exchanges, in cooperative production and marketing efforts, in product and process research, in financing schemes, and in efforts to achieve political influence. The Power of Association Networks also help build and extend social capital, creating "institutional spaces" in which the poor can interact and liaise with Associations help small enterprises do collectively what they are other groups. They help legitimize and strengthen informal insti- unable to accomplish alone. Although the spectrum of their tutions such as savings groups or women's groups, allowing them interests is wide, their activities tend to fall into a limited number to institutionalize their processes, solidify their contacts, and thus of categories. These include: creating opportunities to invest in enter the mainstream of recognized organizations. local production; reducing the influence of go-betweens or There are many kinds of networks. Some, like learning agents; extending market reach; improving access to credit; facil- networks, are informal and often amorphous. Others are more itating learning networks; and building new opportunities to structured and take the form of cooperatives, trade groups, engage the political process. 95 NOITCENNOC W O R L D R E S O U R C E S 2 0 0 8 Enabling Local Production and Processing ground and build their facilities. For example, the community Perhaps the most basic function of a rural enterprise association is forest user groups in Nepal that have benefited most from to enable small producers to pool their resources and achieve jatamansi and wintergreen distilleries are those assisted by NGOs economies of scale and scope. This can allow them to process locally (Pokharel et al. 2006:1). Likewise, CORDES, an influential the raw nature-based products that they once had to send Salvadoran NGO, financed and managed SAMO's cashew elsewhere--products like timber, rattan, medicinal plants, spices, processing facility initially, as well as assisted in improving the and other non-timber forest products, as well as traditional agricul- quality and reliability of production--an important prerequisite tural commodities. Bringing processing closer to home is a for access to foreign markets (Cummings 2004:3). This reliance on straightforward way of allowing local enterprises to reach higher on external start-up support points up the still significant challenges the commodity chain and capture greater value from their efforts. that rural associations face in improving their technical capacity In Nepal, the formation of community forest user groups and obtaining commercial finance. has created a platform for villagers who harvest forest products, Furthermore, bringing production closer to home does not such as jatamansi and wintergreen, to build local production facil- necessarily guarantee that producers will benefit financially. ities and improve their profit margins (Subedi et al. 2004; Despite increases in local employment and marginal increases in Pokharel et al. 2006:11). Ten years ago, 90 percent of the the value of the product, traders in the middle can still capture jatamansi harvested in rural Nepal was exported to India in raw the lion's share of profit by exploiting advantages in market infor- form, with Indian companies profiting from the processing mation (Thi Phi et al. 2004:24). income. Today 75 percent of raw jatamansi is processed into oil by Nepali distillers. Similar progress has been made in the distil- lation of wintergreen. In 1995, little was processed locally, while FIGURE 5 MILLET VALUE CHAIN IN INDIA today almost 100 percent of the harvest is converted into oil by local distilleries (Pokharel et al. 2006:36). Total Value, Value Added However, compared with other value-adding business Rupees (Rs) per kg in Each Step ventures, distilling small batches of wintergreen and jatamansi is relatively inexpensive. When community forest groups have Procurement price started larger enterprises--like saw and pulp mills--they have Farm Rs6.00 Unprocessed at the farm gate relied on larger organizational structures to do so. An example in Millet Nepal's Kavre district is the Chaubas Wood Processing Enterprise, Rs6.00 Transport Rs1.50 which is essentially a consortium of four community forest user Rs7.50 Mill Rs1.25 Dehusking groups, each representing about 75 households. The enterprise Rs8.75 Transport Rs1.25 functions like a cooperative, where profits are funneled back to the Rs10.00 participating community forest groups, after expensing operating Millet is polished costs. The community groups have, in turn, used this money to and cleaned at the Value addition center Rs6.50 value addition centers, build roads and schools, among other development projects. In which are located in addition to these community benefits, the mill itself employs different villages Rs16.50 hundreds of local workers, with a payroll of 500,000 Nepali rupees in 1999 (Subedi et al. 2004:34). In agricultural communities, associations perform a similar Sent to Chennai, function to promote local crop processing. In the Tecoluca munic- Processed Transport Rs11.00 usually in bulk ipality of El Salvador, farmers and workers in the cashew industry Millet* to reduce cost have organized under the producer association APRAINORES and are now owners of the Organic Cashew Agroindustrial System (SAMO, by its Spanish acronym), a local cashew produc- Rs27.50 tion facility. The facility itself employs 68 people and buys cashews from 160 local farmers, most of whom belong to APRAINORES. The sale of cashews has benefited from trade in foreign markets, such as the United Kingdom, the United States, and Belgium Mostly food markets, Retail center Rs10.00 such as Spencer's (Ford Foundation 2002:42). While producer associations are frequently key in catalyzing local investment in processing facilities, the reality is that such investment must often be augmented by external support, at least Final price = Rs37.50 at the start. In the above examples, a number of support groups-- *Prices given per kilogram of processed millet. most of which are NGOs--supplied financial and logistical About 50% of unprocessed millet is lost during processing. support in varying degrees to enable the associations to get off the Source: CAPRi 2007:15 96 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N ASSOCIATION PROFILE: SONGTAAB-YALGRÉ Gaining Market Influence ASSOCIATION, OUAGADOUGOU, BURKINA FASO By building associations such as cooperatives, rural producers establish a position from which to negotiate with traders or The Songtaab-Yalgré Association is a women-run organization that facil- marketing agents or to displace them and deal directly with larger itates the local production of shea butter, a vegetable fat used in suppliers or retailers. Traders are an integral part of rural market CONNECTION high-end cosmetics that is made by crushing and roasting shea nuts. chains, but their incentives are not always aligned with that of Collecting shea nuts has long been important to poor women in Burkina rural producers. In Peru, for example, a small number of Faso, as shea trees grow wild in the West African savannah and the traders--about 15 percent--dominate the market for straw hats nuts are used in local cuisine. However, the international demand for and can often fix the prices paid to rural hat producers (Young processed shea nuts has increased in recent years, creating a signifi- and Portocarrero 2007:3). As individuals, rural producers often cant economic opportunity. have poor access to market information and little access to market In 1997, a study by the UN Development Fund for Women concluded that outlets, putting them at a real disadvantage. Associations can help the economic benefits of selling processed shea butter on the interna- producers collect and disseminate market information, improve tional market were nearly 50 percent higher than selling raw nuts overall bargaining power, and identify new markets. This changes (Harsch 2001:4). the power balance and helps local enterprises exercise greater control within the market chain (Best et al. 2005:22-23). The Songtaab-Yalgré Association has taken advantage of this differen- Cooperatives are the most common rural enterprise associa- tial for the benefit of poor women. It has formed relationships with tion, offering many examples of successfully organizing women shea nut collectors in 11 villages near Ouagadougou and works nature-based businesses. In 1980, tribal groups in the Mayurbhanj with two women's unions, Siglé and Boussé, to establish a purchase District of Orissa, India, formed a cooperative to harvest and sell price for the nuts that is considerably higher than what women used to sabai, a durable grass used for making rope and string. Prior to get from private traders. Local women also work in the association's that time, local sabai harvesters were at the mercy of traders, who production facilities. In all, the Songtaab-Yalgré Association provides dominated access to markets. The cooperative successfully altered income to some 3,100 women who protect and manage nearly 20,000 market dynamics in the area by gaining the support of the State shea trees. It sells its product line of traditional and organic shea butter Cooperative Department, which helped broker a deal with the and soaps through a network of distributors in Europe and North State Forest Department in which it promised to purchase sabai America (ASY 2007). Songtaab-Yalgré Association was an Equator Prize only from recognized cooperatives. Since the Forest Department winner in 2006. was a large buyer of processed sabai for bundling timber and other forest products, this represented a significant economic opportu- nity (Harper and Roy 2000:96­97). Cooperatives have been important organizing forces in count- less other commodity areas as well. In Latin America, most small-scale coffee farmers are members of cooperatives that provide technical and marketing assistance to individuals and often give them access to credit or invest in community infrastructure and education. Fair trade certifications for thousands of these coopera- tives allow some 420,000 farmers in Latin America to bypass the national coffee purchasing system that historically offered low prices and has boosted these farmers' incomes by between 100 and 200 percent in some cases (Taylor et al. 2003:6-10). Beyond cooperatives, which are associations of individual producers, rural enterprises also find advantages in banding together in regional networks or clusters to work on mutual techni- cal and marketing concerns. In Nicaragua, 11 small hammock makers--each with about 15 employees--formed a legally consti- tuted business consortium called EcoHamaca with the help of the United Nations Industrial Development Organization (UNIDO). Prior to the formation of the group, the hammock makers had competed in the local market. But once convinced of the need to pool resources, their association allowed them to reconceptualize their product designs and production approaches. For example, they realized that by making their designs more eco-friendly they could enter the lucrative European and United States markets, so they shifted to using natural dyes and substituted more abundant Continues on page 103 97 BOX 2.6 CURING POVERTY? TAKING ADVANTAGE OF THE MEDICINALS MARKET EVEN IN THE ERA OF MODERN, LAB-DESIGNED The first is for villagers to capture more value from the medici- pharmaceuticals, medicinal plants are big business. Approxi- nals they harvest, requiring a shift away from the current system mately 47 percent of conventional drugs on the market today in which most benefits accrue to pharmaceutical companies and are either natural products or directly derived from these intermediary traders. The second challenge is to make medici- products (Newman and Cragg 2007:461). Pharmaceutical nal plant collection more sustainable by reversing the habitat companies are putting more resources than ever into degradation and overharvesting trends common in commercial bioprospecting in the hopes of finding new cures hidden in the medicinal production. Fortunately, experience indicates that the world's forests and deserts (Kursar et al. 2006:1006). In 2007, solutions to these problems are often complementary. the global trade in medicinal plants was estimated at US$78 billion and growing, propelled by a burgeoning alternative Ninety percent of the medicinals that are traded on the global health care market and increasing demand for natural cosmet- market are still harvested from the wild, even though many ics across the United States and Europe. Experts predict that studies have indicated the importance of increasing medicinal the medicinals trade will continue to grow at about 7 percent cultivation to meet growing global demand (FAO 2005:5; annually for the foreseeable future (Lambert et al. 2005:21). Schippmann et al. 2002:8­11). The low prices received by Such expansion presents a prime opportunity for rural, nature- harvesting communities and the habitat degradation associated based enterprises to capitalize on a market in which they hold with plant collection stem from the fact that, in most instances, a natural advantage. But it also highlights the challenge of there are no effective government or community controls on the advancing what has always been a low-margin business for rural harvest of wild medicinal plants--a de facto open-access situa- residents into a higher-value enterprise--and doing so without tion that undermines ecosystem health and disadvantages poor overexploiting the fragile natural resource base. rural residents, who typically have little market power. The reality of the supply side is that harvesters rarely own the land on which they harvest (Schippmann et al. 2002:7,10­11). Rural Advantage The individuals who collect the specimens tend to work alone, selling their raw products to traders and processors. In areas Rural and indigenous communities hold a comparative advan- where employment options are few, these collectors are willing tage when it comes to medicinal plant collection and to devote many hours to collection and must accept whatever preparation since they already account for much of the global the traders offer them at the end of the day. Frequently, production and use of medicinals. For many rural residents, harvesters are forced to travel farther and farther to find wild harvesting medicinals is an important--although limited-- medicinal stocks as plants disappear with overharvesting and contributor to total income. For example, studies show that in habitat destruction caused by timber cuts and land conversion India's western Himalaya, nomadic tribes rely on medicinal (Mander 1998:Sec. 5.1.1.1). One estimate suggests that such plant cultivation and sales for 5­10 percent of their income destruction and overcollection has led to the endangerment of (Shekhar and Badola 2000:275). In rural Kwazulu-Natal in more than 4,000 medicinal plants worldwide (Schippmann et South Africa, the 16,000 medicinal plant gatherers in the al 2002:3­4). region earn an average of between US$67 and US$98 per month for their efforts (Mander 1998:Sec. 5.4). Medicinals The Prunus Africana tree of Cameroon is one of these endan- also provide direct health benefits to people across the devel- gered plants. P. Africana was once harvested primarily by locals oping world, 80 percent of whom use such treatments as their who used it for wooden tools and to treat chest pain and malaria primary source of health care (WHO 2006). With the knowledge (WWF 2002:1). In the 1970s, pharmaceutical companies began and resources that these communities currently use in their to use the plant's bark to treat prostate gland hypertrophy. medicinals production, they seem well situated to play a central Cameroon's government eventually allowed all pharmaceutical role in the growing global medicinals market. companies access to its forests as a way to promote competition, and unsustainable harvest practices became the norm. When these practices combined with ongoing deforestation, the P. Africana population plummeted. The rural communities, left Dual Challenges: without their once-common medicinal resource, reaped few commercial benefits from the deforestation. The trees' Capturing Value, Harvesting Sustainably harvesters were either outsiders working for foreign pharmaceu- tical companies or locals who gained little for their efforts Rural communities must address two major challenges if they because they accepted the low prices offered by intermediary are to use medicinal plants to their advantage in the long term. traders (Stewart 2003:566­567). 98 A New Model: Business's Evolving Role: Community Management of Medicinals The Example of Gram Mooligai Co, Ltd. Cameroon's failure to address the open-access issue illustrates Based in Bangalore in southern India, Gram Mooligai Co, Ltd. the need for national governments and communities to proac- (GMCL) is a medicinals processing company that uses a differ- tively create and enforce guidelines for the medicinals market. ent business model from Nepal's community ventures to Today governments, communities, NGOs, and donors are learn- capitalize on the medicinals market and achieve environmental ing how best to support such efforts. Sri Lanka, Nepal, India, and social aims. Founded in 2002 with a grant from the Ford and Ethiopia are a few of the countries serving as test grounds Foundation, the company is owned by self-organized groups of in recent medicinal plant development projects. medicinal plant gatherers and cultivators from across southern India who hold the company's shares. The company buys all of Between 1998 and 2004, the World Bank partnered with the its raw stock of medicinals from these groups, eliminating inter- Sri Lankan government to establish community management mediaries from its supply chain. As a policy, it pays producers systems for biodiverse areas known to have medicinal species. 70 percent of product sale prices to obtain the raw stock--a The Bank contracted with NGOs to help 29 villages form very high return (GMCL 2006:2). On average, harvesters make Medicinal Plant Conservation Areas on state-owned lands, a seasonal income of about 3,500 rupees (US$88) per year-- meant to act as buffers between village domains and state a critical contribution for low-income families (Raju 2006: 8). forest reserves. Village Project Management Committees, partnering with the NGOs and local researchers, oversaw the To protect medicinal plant stocks from overexploitation, GMCL study of medicinal plants within the area and developed plans partners with Indian non-profits to train harvesters to carry out for harvesting them sustainably and monitoring their popula- their work in a sustainable manner (GMCL 2006:2). The tions over time. The communities involved also started company also encourages organic cultivation of medicinals to communal gardens in which they cultivated medicinal plants to augment wild supplies and ease the work of plant collection. augment their collection of wild stock. The effort created a The company has established a 12-ha test farm to fine-tune greater awareness among local populations of conservation methods for organic plant cultivation. The lessons learned on methods and experience with joint forest management the farm are then integrated into the training program for practices (Crown 2004:4­5,8­10,46). At the end of the six- producers (GMCL 2006:8). year project period, the Bank considered the outcomes and future potential for the project successful enough to pursue a As part of its larger mission, GCML's business model empha- similar effort in Ethiopia (World Bank 2001). sizes helping women and poor rural consumers. The company fosters rural employment by encouraging women's self-help In Nepal, thousands of communities have spent the last groups to sell the company's medicinal products in the country- 12 years working with NGOs, the U.S. Agency for International side; the women's groups make 150 rupees for every 500 Development, and other donors to grow the medicinals market rupees of medicine they sell (Indian NGOs 2007). At the same under the state's decentralized forestry law (USAID 2006). time, GMCL hopes that these rural sales will help meet some of NGOs like the Asia Network for Sustainable Agriculture and the unmet health care needs of the poor. The medicine sold in Bioresources (ANSAB) have helped many of the country's these areas is certified by Ayurvedic physicians and targets the Community Forestry User Groups to craft sustainable harvest most common ailments of the rural population (GMCL 2006: plans for medicinal plants and other non-timber forest products 9). The company expects such rural sales to eventually account and to build processing facilities to add value to them. In 2006 for 20­30 percent of its total market (GMCL 2006:7). ANSAB's technical and networking efforts, which included securing "organic" and "sustainably harvested" certifications Overall, Gram Mooligai's business strategy seems to be working. for many forest-derived products, helped more than 65,000 In fiscal year 2005­2006, the company achieved sales of more villagers take in US$5.54 million in additional monetary than US$240,000 (Raju 2006:7,8). Having doubled its sales benefits (ANSAB 2007:2). The certified products include 17 since 2002, GMCL hopes to expand into northern India and different essential oils, such as jatamansi, and 44 single-ingre- capture 3 percent of the country's medicinals market within the dient herbs, such as juniper, which have various uses in next 5 years (GMCL 2006:6). The company's success is testa- Ayurvedic (a traditional form of Indian health care), Chinese, ment to the potential for economic and social impact and and modern medicine (ANSAB 2005; Subedi 2001:4­6). environmental sustainability that exists in the medicinals market under the right conditions. With care, medicinals can connect the traditional knowledge and practices of rural communities with the global market economy. 99 BOX 2.7 ETHIOPIAN COFFEE COOPERATIVES: LEVERAGE THROUGH NETWORKS THE HUMID MOUNTAINS OF SOUTHWESTERN in the early 1990s (Dorsey and Assefa 2005:8). This demon- Ethiopia are the legendary birthplace of Arabica coffee--the strated not only the marketing benefits of cooperatives but also most prized coffee variety--and coffee imbues the nation's their potential as democratic associations acting on behalf of culture and economy. Ethiopians are some of the world's their members. biggest coffee drinkers per capita, consuming about half of the 280,000 tons of beans the country produces each year To help regenerate the cooperative structure, ACDI/VOCA began (Dempsey and Campbell 2006:5). The remaining coffee is a farmer-to-farmer training program in 1995. Encouraged by its exported, accounting for more than a third of the country's total success, the leaders of the coffee cooperatives involved--along exports--about US$424 million in fiscal year 2006­2007 (The with ACDI/VOCA--petitioned the government to allow them to Economist 2007). federate into larger regional associations, called cooperative "unions," to increase their market power and facilitate techni- Some 94 percent of Ethiopian coffee is grown by smallholders cal training and coordination. In 1998, the government agreed, on 1­2 ha plots, most of it using organic methods (Dempsey and in 1999 the Oromia Coffee Farmers' Cooperative Union 2006:1; Weihe 2005:12). Small coffee producers in Ethiopia, was created. Since then, five more coffee unions have formed as in many countries, generally earn little from their labors, and (Dorsey and Assefa 2005:8­9; Dempsey 2006:4; Kodama poverty among coffee farmers is widespread. But reforms within 2007:90). the nation's coffee sector are bringing change. In the last decade, coffee farmers have revitalized their system of coffee Union leaders have been trained in topics ranging from cooperatives and improved their product quality. Greater differ- accounting to bean selection to processing and quality control entiation of the distinctive flavors produced by different growers methods. These leaders are asked, in turn, to train the and the introduction of organic certification have also added managers of the different cooperatives within the union. The value to the best of the Ethiopian beans, so that they command cooperative managers then train farmers within individual a higher price. In concert with government reforms of the coffee cooperatives, assuring a chain of consistent, high-quality, trace- sales and export system, these changes have allowed many able beans (Dempsey 2006:8). Ethiopian producers to reach more specialized and higher- valued markets, thus increasing income for many farmers. The government strengthened the role of the cooperatives and unions significantly when it modified its coffee-marketing policies in 2001. Prior to that time, Ethiopian law required coffee cooperatives to sell their products through a national Reviving Cooperatives, coffee auction rather than directly to roasters and retailers around the world. This requirement meant that coffees, often Building Federations regardless of quality or region of origin, were lumped together and sold at one price, creating a "lowest common denomina- Fundamental to the reform of Ethiopia's coffee sector has been tor" problem for cooperatives that were working to increase the revival of the nation's coffee cooperatives. Until recently, cooperatives in Ethiopia had fallen into disfavor among farmers because of government interference. The former military regime had used them as a means to control farm production rather than to meet farmers' needs. With the end of military rule in 1991, Ethiopia's new government emphasized liberalizing markets and driving growth through the agricultural sector. This left an opening to reinvent farmer cooperatives and make them more farmer-friendly and market-savvy (Kodama 2007:88­89; McCarthy 2007). To undertake this task, the Ethiopian Government and the US Agency for International Development (USAID) partnered with a Washington-based NGO called ACDI/VOCA that specializes in agricultural assistance and capacity-building. The first step in rebuilding the legitimacy of cooperatives was to bring a diverse group of Ethiopian officials, farmers, and cooperative directors to visit successful cooperatives in Kenya and the United States 100 their bean quality and distinguish their unique regional minimum price for their beans, which at US$1.26­1.60 a flavors (Kodama 2007:91; Dempsey and Campbell 2006:5). pound can be up to twice the international commodity market When the government abandoned this requirement and price (Geographical 2005:38; Dempsey 2006:6). allowed cooperatives to sell their own products directly, it created a more-efficient and profitable marketing pathway. Producers could now sell their beans to cooperatives, which would then sell to their cooperative union, and unions would Nurturing Direct Trade directly export their products to wholesalers and retailers worldwide (Kodama 2007:91). Today, roasters and importers around the world buy directly from Ethiopian coffee unions and cooperatives. With improved Federating into cooperative unions has brought many advantages, bean quality and product consistency, coffee unions have been such as greater efficiency and a coordinated, market-chain able to concentrate on promoting the impressive array of approach to production and sales. Cooperatives jointly contract distinct tastes and aromas from beans originating in different for transportation and warehousing, share technical knowledge, Ethiopian cooperatives. This can translate into a competitive and develop solutions to address common logistical problems. advantage in the world of specialty coffees, in which recog- They also share market information and business contacts nized producers of unique beans can command a considerable (Dempsey and Campbell 2006:7). ACDI/VOCA has brought union price premium. In 2005, for example, Starbucks designated a leaders together with experts in Fair Trade and organic certifica- sun-dried coffee from Ferro Cooperative--a member of the tion to help cooperatives get certified. By 2006, more than 70 Sidama Union--as a "Black Apron Exclusive" and eventually cooperatives were certified organic and 24 were registered as sold it in its stores for about US$26 per pound (ACDI/VOCA Fair Trade cooperatives (Dempsey 2006:6; Dempsey and 2006b:16; Olsen 2007). Campbell 2006:6). Fair Trade­certified producers are assured a 101 BOX 2.7 ETHIOPIAN COFFEE COOPERATIVES their earnings and pooled dividends to invest in local infrastruc- ture such as roads, power lines, health care facilities, and schools (Dempsey and Campbell 2006:7; Dorsey and Assefa 2005:49; Mekasha 2005:19). In addition, the federated cooperative structure provides an effective network to achieve other social goals, such as reaching out to rural communities with HIV/AIDS prevention workshops (Wagner:8­9). Challenges Ahead Despite the positive repercussions of Ethiopia's specialty coffee boom in some communities, benefits are still limited to a small percentage of producers. Within the Yirgacheffe Union, for example, only 13 percent of coffee is directly exported (Kodoma 2007:96). The rest still flows through the national coffee auction and is subject to international commodity coffee prices that have sometimes reached crisis lows in the last decade due to global overproduction. Ethiopian coffee marketing has even advanced to the point where there are national contests such as the E-Cafe Gold One difficulty that the unions must address is that they are, in Cooperative Coffee Competition, in which judges select many ways, victims of their own success. Their achievements in Ethiopia's best cooperative coffees to market internationally in improving the quality and marketing of Ethiopian coffee have an Internet auction. In 2005, the average price obtained in this led many international roasters and retailers to do business auction was US$3.22 per pound, compared with 65 cents for directly with the best cooperatives, leaving fewer specialty a pound of regular Ethiopian coffee obtained through the buyers to purchase from the unions (McCarthy 2007). This national coffee auction. These direct relationships between means less funding for the unions to provide training and cooperatives and roasters have helped raise Ethiopia's profile as support for their members. The cooperatives that remain in the a quality coffee producer and will likely spur continued explo- unions are in turn unwilling to pay for union membership unless ration by roasters and retailers for distinct flavors from the they receive tangible benefits. When cooperatives end up region (ACDI/VOCA 2006a:9; ICO 2008). selling through the auction, farmers often leave them to supply directly to traders and thus save themselves the cooperative membership fees. Cooperative Benefits If the unions can overcome this structural challenge, however, their established network might help address another problem Farmers involved in these changes consistently indicate that that Ethiopian farmers face: the need to diversify economic they are better off, reporting increased household wealth, asset opportunities. With such diversification and strong unions, accumulation, higher education levels for their children, poor farmers will gradually depend less on the volatile coffee improved nutrition levels, and an expansion of farm activities as industry even as their share of the profit from the coffee they a result of cooperative membership. They also report more job produce grows (Mekasha 2005:17; Dorsey and Assefa opportunities across their communities as coffee plots and 2005:12­13). other crops expanded (Mekasha 2005:19). New financing mechanisms set up in a partnership between USAID and three Ethiopian banks have also increased the well- being of cooperative members. These banks issue short-term loans to the coffee unions and cooperatives to purchase raw coffee beans each year, providing the initial incentive for farmers to enter the collective process. Many cooperatives use 102 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N woods for the rare cedar they had used before. They also adopted barrier, and frequently requires an outside catalyst, such as an the collective brand "Made in Masaya" to promote a local identity. NGO or government department. In addition, co-ops or consor- With improved product quality, design, and pricing, the tia often require considerable funding from outside sources in EcoHamaca group was able to successfully penetrate the export order to get off the ground, and finances remain a challenge even market, eventually shipping more than 3,000 hammocks per for successful associations (Philip 2003:21; Hellin et al. 2007:26; CONNECTION month (Kanungo 2004:1­2). Kanungo 2004:6­7). Despite the clear advantages, organizing and sustaining cooperatives and other producer associations is not simple. For example, most rural cooperatives start from a base of inexperi- Promoting Product Standards and Market Research ence, with members who possess low skill levels and little business Producer associations are an ideal forum in which to develop experience. They attempt to organize in the most difficult standards for product quality, harvesting practices, or manufactur- economic circumstances, in rural markets that are highly dispersed ing methods to help producers improve their product positioning and very brand- and price-conscious, making their products that and reputation. In northeast Brazil, for example, the Valexport much harder to market. For business consortia, setting aside producer association helps farmers in the Petrolina-Juazeiro area distrust and competitiveness among members is often a major maintain their melon quality--and export prices--at a high level. NETWORK PROFILE: COMMUNITY MARKETS FOR CONSERVATION (COMACO), LUANGWA VALLEY, ZAMBIA Community Markets for Conservation, or COMACO, is a commercial network COMACO's extension work and premium payments to farmers are part of a with a conservation mission, working to expand livelihood opportunities for larger strategy to overhaul the incentive structure for Luangwa's farmers, rural communities in eastern Zambia. Every year, thousands of tourists flock increasing their farm and non-farm income so that they can become less to the Luangwa Valley to visit its game parks. But its people are very poor, reliant on game hunting and environmentally destructive farming practices with average household incomes under US$200 (Lewis 2005:2). Poverty and (Lewis 2005:3). As part of this strategy, citizens who hand over the firearms food insecurity have encouraged unsustainable agricultural practices and a they use for game hunting receive an eight-week training course in goat high incidence of game hunting for subsistence and sale in local markets. husbandry, beekeeping, dry-season gardening, fish farming, and carpentry in Hoping to break this destructive poverty-environment linkage, the Wildlife the Poacher Transformation Program (WCS 2007). In addition, COMACO offers Conservation Society, an international NGO, formed the COMACO network in those who grow and plant tree seedlings to minimize soil erosion an extra 2002 (Middleton 2008). price premium for their produce (COMACO 2007a). COMACO has also helped form an ecotourism enterprise of bush camp accommodations and a line of The centerpiece of COMACO's work is the agricultural extension service it jewelry made from animal snares that farmers have turned in as part of the offers to small producer groups of 10­20 households at regional training Poacher Transformation Program (COMACO 2007b). As it matures and contin- offices (WCS 2007). At these bases of operation throughout the valley, paid ues to offer an expanded slate of capacity-building and marketing services, extension officers and volunteers have taught 30,000 villagers--represent- COMACO has taken on many of the characteristics of an intermediary support ing over 2,500 producer groups--about livestock care and basic organization, with the goal of geographically scaling its effects throughout conservation farming techniques, such as natural composting and land eastern Zambia. It has also taken on ISO characteristics in its work with local preparation without burning. With these techniques, farmers grow higher- and national government officials and NGOs at all levels as it expands. quality produce and can provide enough food for their families, even in times of drought. (WCS 2007; Middleton 2008). Upon receiving training from the While not yet financially self-sufficient, COMACO has produced positive extension officers, producer group members sign a contract committing results for the communities of the Luangwa Valley during its five-plus years themselves to the conservation farming practices in return for the additional of work. One thousand households have begun to grow dry-season gardens benefits that membership in COMACO offers. Included in these benefits are and fruit trees using the solar-powered fences COMACO has helped finance. training in other types of farming and access to free and subsidized farm Farmers are now eating more fish, thanks to the 150 fish ponds COMACO inputs provided by COMACO (WCS 2006a:1). has facilitated. On-farm composting combined with other conservation farming techniques (skills taught in COMACO's extension courses) helped The biggest incentive that COMACO offers for joining the network and adhering increase maize yields of participating farmers by over 19 percent between to the contract is that the organization purchases produce with high value- 2005 and 2006 (WCS 2006b:4). And hunters that formerly used illegal added potential--such as rice, soybeans, honey, peanuts, and fresh techniques to catch wild game have doubled their legal incomes since vegetables--from network farmers at premium prices. After collecting the joining the program. In fact, former hunters surrendered 40,000 illegal produce at its regional centers, COMACO processes and packages the foods at snares and 800 firearms between 2001 and 2006. As a consequence, the one of its three major plants and sells them under COMACO's "It's Wild" brand local wildlife population has stabilized and slightly increased in some through its Web site, in tourist lodges, and in urban markets (Lewis 2005:3; places--a trend that suggests that the network's commercial and conserva- WCS 2007). The producer groups own 20 percent of COMACO shares, and thus tion missions are compatible (WCS 2006; WCS 2007). receive dividends when the company makes a profit (COMACO 2004:1). 103 NOITCENNOC W O R L D R E S O U R C E S 2 0 0 8 In the 1980s, Petrolina-Juazeiro emerged as a leading melon As a result, four of the area's largest producers formed region, producing year-round fruit for export to European Valexport. Within a few months 43 additional members had markets. As word of the lucrative business spread, new growers joined, and today Valexport's members include over 200 local emerged, many of which had little experience. Product quality producers of different sizes. The association has set region-wide fell and the region's reputation was tarnished, lowering melon quality standards and routinely collects data on quality control prices (Locke 2002:24). among its members to enforce its standards (Locke 2002:24). TABLE 2.3 ECOSYSTEM-BASED ENTERPRISE ASSOCIATIONS AROUND THE WORLD ASSOCIATION LOCALE YEAR EST. MEMBERS WORK SELECT ACCOMPLISHMENTS KLONGNARAI WOMEN'S Chanthaburi, 1983 40 women Women's cooperative cultivates, Women own shares of cooperative, GROUP Thailand harvests, processes into various which has attained a profit food products, and markets margin of 18 percent. Members shoots and berries from the local get credit through the cooperative cowa tree. and use cooperative equipment to Source: Kruijsse and Somsri 2006 increase efficiency. LAGOS STATE FISH Lagos, Nigeria 2004 2,100 fish Association provides marketing Fish production doubled from FARMERS' ASSOCIATION farmers strategies and technological 2005 to 2007. Fish production information, and also purchases cycle reduced from 8 months Source: Basorun and Olakulehin 2007 inputs in bulk. to 5 months. FARMER FIELD Kenya, Uganda, 2000 50,000 Networks coordinate farmer Kenya's Kakamega District SCHOOL (FFS) NETWORKS Tanzania farmers exchanges, help farmers network, one of 2,000 FFS purchase agricultural inputs networks in East Africa, helped in bulk, arrange for managerial farmers process and add value skills training, and help to sweet potatoes, resulting coordinate product processing in higher market prices for Source: Braun et al. 2007 and marketing. their produce. ASSOCIATION OF PALQUI Potos, Bolivia 2003 31 families Association manages, In 2004, each family received PRODUCERS (APROPALQUI) processes, and conducts market- US$16 profit from their combined ing workshops to sustainably 812 kg of processed palqui. Source: UNDP Energy and Environment use native palqui plants for food Group 2006:4-6 and medicinals. NAM HA ECOGUIDE SERVICE Luan Namtha, 2001 100 workers Association trains local villagers From 2001 to 2006, Nam Lao PDR as ecoguides, lodge operators, Ha­trained guides earned and biodiversity monitors so US$116,603 from 7,700 tourists, they can manage ecotourism and $11,400 more went to village businesses in and around Lao development funds to construct Source: UNDP 2006a PDR's protected areas. local infrastructure. WOMEN'S NETWORK OF Choco, Colombia 1996 85 women Women's network cultivates, Family incomes have increased MEDICINAL AND AROMATIC processes, brands, and markets 25 percent. Indirectly creates PLANT PRODUCERS AND medicinal and herbal plants. jobs for 385 people in small, RETAILERS (RMPCPMA) mining-dominated community. Source: UNDP Energy and Environment Group 2006:29-31 SOLOLA ASSOCIATION Rio Abajo, 2000 700 farmers Association links community Members receive 40 percent OF ORGANIC PRODUCERS Guatemala organizations for watershed more for their organic products (APOCS) planning, coffee processing, than traditional farmers. Some and organic certification of products sold in the United Source: UNDP Energy and Environment Group 2006:52-54 farm products. States and Europe. 104 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N Associations can be important facilitators for achieving ized and recognized face for producer groups--one that funders product certifications, such as "organic," "sustainably produced," can use as a node for communication and contact with dispersed or "Fair Trade"--designations that can add value to products and rural enterprises (Macqueen et al. 2006:8). When Indian artisan allow producers to enter select markets. In Nepal, FECOFUN, producers of calico prints created the Calico Printers Coopera- the national federation of Community Forest User Groups, has tive Society in 1999, they gained the attention of the government, CONNECTION helped pioneer new certification standards for many different which wanted to help small-scale textile producers increase "sustainably harvested" forest products through the Forest exports of their products by investing in new processes and Stewardship Council (FSC) and has encouraged forest user marketing contacts. As a result, the Small Industries Develop- groups to meet these standards as part of their business models. ment Bank of India created the Mutual Credit Guarantee By 2006, 21 communities were harvesting forest products in Scheme for calico print makers, which provided microcredit accordance with the new FSC standards (Pokharel et al 2006:27). worth Rs 1.5 million to 65 artisans in the co-op. Similarly, small Producer associations are also well positioned to help their businesses in Nicaragua that joined producer associations or members conduct market analyses so that they can tailor their consortia with the help of UNIDO benefited from more than production and marketing efforts better. This involves assessing US$300,000 in new investment that they would not have the current and potential market for a given product, determin- attracted otherwise and gained access to US$100,000 in credit for ing the main actors in the commodity chain, and identifying joint activities (Kanungo 2004:3­4). bottlenecks in the supply chain. In Honduras, the Consorcio Local para el Desarrollo de la Cuenca del Rio Tascalapa, a local consortium of farmer organizations in the Yorito region, conducted a market chain analysis for coffee in which it identified Building Learning Networks critical points and problems in the coffee chain. The analysis, By participating in associations, small-scale producers can build which was jointly undertaken by producers, processors, and learning networks through informal meetings, workshops, site traders, brought improved communication to the group and visits, e-mail exchanges, and other types of knowledge sharing. resulted in some farmers deciding to seek organic certification for Such exchanges can help spread the latest information on sustain- their coffee (Best et al. 2005:38). able farming practices, agroforestry, wildlife management, aquaculture, and other knowledge-intensive livelihoods. The learning networks that result allow producers to solve problems Accessing Credit and Finance collectively, share approaches, and break out of traditional patterns of resource use that may be unsustainable, inefficient, or Associations act as important channels for rural finance, provid- unprofitable. This important aspect of capacity-building is often ing an access point to microcredit, private finance, or government self-generated--and self-scaling--when producers are given a support programs for small businesses. They provide an organ- forum in which to interact. In Cuba, the National Association of Small Farmers (ANAP) started a sustainable farming initiative known as the Farmer to Farmer Movement. ANAP worked with farmers, local coopera- tives, and government agencies to quickly spread the adoption of sustainable farming practices following the food crisis of the early 1990s, using workshops, farm demonstrations, and other learning exchanges. The Farmer to Farmer Movement was so successful in its information networking that it grew to include 100,000 small- holders in just eight years (Holt-Giménez 2006:37, 173). In the El Angel watershed of Northern Ecuador, a different kind of learning network evolved, called the Carchi Consortium. The group originally formed as a forum for scientists to share technical information on water issues in the area. It eventually evolved to include not just scientists but also representatives from water associations and farmer groups from around the water- shed--many of whom had long been concerned about the use and allocation of water. The consortium's effectiveness rests on its ability to act as a clearinghouse for unbiased information on water flows. As such, the consortium helped end much of the suspicion that plagued earlier debates between farmers. Today, the consor- tium has expanded in its influence by pulling together additional stakeholders, including representatives from three neighboring 105 NOITCENNOC W O R L D R E S O U R C E S 2 0 0 8 Engaging Political Processes NETWORKS ENHANCE RESILIENCE Small-scale producers are not known for their influence. At the national level, most small rural enterprises that "go it alone" are Networks and associations help build the ecological, social, and politically marginalized compared with their corporate and state- economic resilience of rural communities and the ecosystems they owned counterparts (Macqueen et al. 2005:89; Pimbert 2006: 21). manage for enterprise: Associations can help producers engage the political process by coordinating and amplifying their voice. They provide a forum for Ecological Resilience I reaching consensus on policy issues and crafting a uniform Networks aid adaptive management. Because they facilitate knowl- message that can become the basis for effective lobbying. Associa- edge sharing among communities and experts with the same tions that are adept at political networking are prime actors in the ecosystem concerns, networks directly contribute to adaptive manage- political scaling of rural nature-based enterprises (Hooper et al. ment--management that makes changes based on changing 2004:132; Bebbington and Carroll 2000:9). conditions or new data, technologies, or capabilities. This kind of The Costa Rican Organic Agricultural Movement (MAOCO) learning-based management is a recognized feature of sustainable is an example of an umbrella association that has been very ecosystem use. effective at influencing local and national farm policy, even as it I Networks enable a synoptic view. They allow village-level leaders to has catalyzed communication and better product standards gain a larger-scale view of ecosystems and their management. within its membership. The network grew out of efforts by small- Linking with other communities brings a larger geographic scale to holders and local NGOs to increase support for organic farming bear, so that community management systems can be informed by in Costa Rica. Over time, MAOCO attracted champions within and connected to management efforts in adjacent ecosystems and government by strategically engaging state officials and universi- can remain aware of synergistic effects. ties. It worked on a scale small enough for farmers and their representatives to liaise with local agriculture officials but large Social Resilience I enough to engage the national agriculture ministry and develop- Networks enhance social capital. They enlarge the social capital pool ment agencies (UNDP 2006b:36­37). by connecting it to other like-minded groups and communities and As a result, MAOCO has helped establish a more unified expanding the universe of useful group processes and experiences, as voice on organic farming at a variety of levels. At the local level, well as by introducing new ideas and norms of inclusion and public MAOCO gave farmers a forum to share lessons and challenges good. In addition, they institutionalize this social capital in official regarding organic farming. At the national and regional levels, associations, allowing it to take on a legally recognized and commer- MAOCO worked to establish guidelines for the production, cially relevant form. preparation, and marketing of organic products. MAOCO Economic Resilience eventually helped replace an outdated law on organic farming, I Networks increase commercial access. They widen and stabilize paving the way for new organic farming standards and raising market penetration, allow businesses to capture greater value from awareness among other farmers--organic or not--about the their efforts, provide a route for new technology, act as a conduit for benefits and requirements of organic farming. In addition, micro or conventional finance, and make available good business MAOCO's work has helped inform a National Strategy for practices and opportunities for skills development and training. Organic Agriculture (UNDP 2006b:36). To increase the scale of their political influence, local producer associations often federate into regional or national municipalities in the watershed. In so doing, it has become both groups that represent the interests of many similar businesses a forum for regional water planning and a de facto dispute resolu- and present a uniform position on state policies, as well as a tion mechanism (Carter and Currie-Alder 2006:132­133). convenient contact point for government officials. Federations One important aspect of learning networks is their ability to are associations themselves, but they have a membership base of reduce "innovation time"--the time it takes to learn about, organizations, not individual enterprises or producers. Many understand, adapt, and apply new ideas that will benefit the federations exist at the national and state levels, though some enterprise. The ANAI Association reports that when it first operate regionally and internationally. started working in Costa Rica in the 1970s, it took on average In 1995, a number of Nepal's Community Forest User seven years to adopt important new ideas and adapt them to the Groups established the Federation of Community Forest Users local situation. Now the ISO says that the communities that it Nepal (FECOFUN) to represent their interests at the national mentors and partners with require only on average two years to level. By 2005, some 9,000 of the country's 14,000 CFUGs had take on and implement new ideas of a similar scale and complex- joined the federation, giving it considerable political clout as well as ity, due to the much larger network of like-minded communities the ability to offer its members a wide range of technical and in the region today that support the innovation process by sharing marketing services. The federation enables member communities local experiences (Southey 2008). to share information on forest management, biological monitoring, timber and NTFP sales, management plans, and marketing strate- 106 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N gies. Politically, FECOFUN's influence has grown over the years as To address the problem of exclusion, some governments and it has forged links with the national ministry that oversees Nepal's donors have experimented with quotas that force the inclusion of land management system. In partnership with the Asian Network women and marginalized groups in cooperatives or resource user for Sustainable Agriculture and Bioresources, FECOFUN played groups. In Nepal, for example, the government amended its irriga- an active role in encouraging the government to develop a national tion policy in 1997 to mandate that women account for at least 20 CONNECTION policy on the harvesting of herbs and other non-timber forest percent of all members of water user associations. Such mandates products--an area that directly affects the household income of are often insufficient to spur real acceptance of underrepresented CFUG members. The federation has subsequently become the groups, but capacity-building programs have proved effective in holder of FSC certification for the sustainable harvest of 23 differ- some cases. During one canal rehabilitation project funded by the ent forest products. As its confidence and lobbying power has Asian Development Bank, membership of women in the local grown, FECOFUN has begun to help local user groups appeal to water user association grew from 25 percent to over 60 percent the government for management rights over larger areas when a program to train women in canal management and (Pokaharel et al. 2006:17; ANSAB 2005b:5­20) maintenance was included, directed by a newly formed Women's As FECOFUN's experience shows, federations and umbrella Facilitator Group within the larger water user association groups can become powerful tools for amplifying local concerns (Shrestha 2004:15­17). into an effective appeal for expanded rights. In Burkina Faso, an Another form of exclusion sometimes encountered in rural alliance of agricultural producers called the Coordination Frame- associations is related to size. Larger enterprises within an associa- work for Rural Producer Organizations (CCOF in French) has tion may seek to exclude smaller ones because they view them as been successful in bringing the concerns of smallholder farmers to of marginal value to the organization. Sometimes this is a result of government policymakers. The group formed in 1988 when the institutional failures within a cooperative, where stronger government began to make changes in national land tenure members are able to leverage more decision-making power. In policies. Government policymakers had not consulted smallholder Brazil, the Valexport producer association was initially created for farmers, and the new tenure policies tended to advantage large the region's largest and most profitable melon producers. It was farms and agribusinesses and to ignore local customary institutions not until the government exerted pressure on the cooperative that for land management. CCOF's efforts have helped reorient the it opened its doors to smaller producers (Locke 2002:28). Associa- tenure policymaking process so that new tenure laws accord equal tions also often become less inclusive as they expand beyond their rights to smallholders (Conway et al. 2002:4). original local areas, with new participants expected to demonstrate a minimum level of experience and wealth (Marsh 2003:26). The Challenges of Association The Problem of Informality Many associations have a formal or legal status that confers a Formal networking via associations offers indisputable benefits for recognizable identity and, in some cases, legal rights. For example, rural producers, but it also poses challenges, particularly for the they may be registered under business statutes or recognized under poor. By design, many associations are exclusive, open only to the membership of certain individuals or enterprises. Farming cooperatives, for example, tend to only benefit those with land. Furthermore, the formal status of many associations can be restrictive and confounding to rural producers, particularly those who are used to working outside of legal structures. Lack of technical and financial capacity are also common problems that hold rural associations back. The Closed Doors of Membership Organizations By their nature, associations are exclusive and not always support- ive of the neediest in society. For example, while dairy cooperatives in the Indian state of Gujarat have been highly successful at organizing their members and remaking the Indian dairy market, they have been less successful at opening their doors to low-income producers. Village-level studies suggest that preexisting inequali- ties--in both land ownership and enforced by caste makeup--are reflected in the makeup of cooperatives (Marsh 2003:40-45). 107 NOITCENNOC W O R L D R E S O U R C E S 2 0 0 8 organization was first starting, many forestry groups "had never FEDERATION PROFILE: THE GUJARAT heard of any umbrella association in forestry" (Bukula 2006:29). COOPERATIVE MILK MARKETING FEDERATION In the Indian state of Gujarat, village dairy cooperatives work within a three-tiered structure of organization that is represented by the national The Involvement of Government Gujarat Cooperative Milk Marketing Federation. In the Gujarat model, Government policies are critical to the success of rural associa- village cooperatives are the lowest level of cooperative society, where tions. For one, they determine the rules under which associations membership is typically limited to producers. These cooperatives, can form as well as how they govern and support themselves. however, elect representation in the form of a managing committee and When governments favor associations, they can be a principal chairperson, which represent the village cooperative at the district level. agent in their scaling up. In West Africa, for example, political Cooperative organizations at the district level are called unions, which liberalization over the past 10 years has directly contributed to also elect representation, but for the state-level federation. Generally the emergence of a number of new producer organizations speaking, the village level handles procurement, the district level (Pimbert 2006:13). handles transportation and processing, and the federation makes But government involvement in associations can be a mixed decisions on investment, marketing, and planning. blessing. At times, governments have sought to use associations for their own political purposes, to the detriment of the associations. The milk cooperative model in Gujarat was considered so successful that The postcolonial period in Africa witnessed a number of the government of India launched an initiative known as "Operation examples where governments exerted a paternalistic control over Flood" to replicate the model in other Indian States (Manikutty 2002:3). farmer cooperatives, dictating the terms of membership and The government formed a coordinating agency called the National Dairy issuing top-down directives. This bureaucratic approach belied Development Board, which has helped scale up the Gujarat model and the entrepreneurial nature in which many cooperatives initially works with a total of 22 state federations, 170 district level unions, formed, resulting in their eventual economic stagnation and disfa- 72,774 village level societies, and 9.31 million milk producers vor (Chilongo 2005:6­9). Until recently, for example, many small (Manikutty 2002:4). coffee farmers in Ethiopia distrusted cooperatives because of their past affiliation with the government (McCarthy 2007). cooperative law. Thus, one advantage of associations is that they In other instances, however, governments may discourage help bring rural enterprises out of the informal sector and increase the formation of associations, perceiving them as pressure groups their visibility and bargaining power with government or private that may campaign against the policies of the state. This reluc- sector actors. tance to grant groups the right to free association can be However, making the transition from the informal sector is particularly troublesome for those in the informal rural economy, not always easy. A good deal of business in rural areas still occurs who tend not to be protected under trade unions or other labor informally, and simple verbal arrangements often govern the rules laws. In 2002, the International Labour Organization (ILO) of business transactions. For example, lending arrangements often issued a recommendation that member states curb their political rely more on trust and social standing than on financial and asset- interference and control of national cooperative movements. The based collateral. Partly because of this culture, taking steps toward ILO encouraged governments to restrict their involvement to a formalizing rural institutions can be difficult (Marsh 2003:26; regulatory and policy-setting role, instead of controlling coopera- UNDP 2004:12). tives, and to revise their laws to bring them up to the standards Many rural workers do not even consider themselves involved put forward by the International Co-operative Alliance. By 2005, in a sector, industry, or enterprise, especially if their work is only 15 countries had acted on the ILO's recommendation and had seasonal or part-time (Macqueen et al. 2005:84). In addition, changed their laws governing cooperatives (Boyd 2005:9­10). much of the rural workforce is self-employed and therefore not In addition to their political power over associations, govern- necessarily inclined to join an association. In its work to build ments also wield considerable financial control. In theory, networks among small producers, UNIDO has found that small associations have built-in mechanisms for generating revenue, such businesses are often loath to give up their competitive attitude as membership fees or commissions for wholesaling their toward other businesses to work together in a formal organization. members' products. In practice, however, many fail to raise the Considerable attention to trust-building exercises is sometimes funds to pay for staff and other support services for their members. required (Kanungo 2004:3, 6­7). Simplifying regulations This is particularly true of new associations that have not devel- surrounding the registration of formal associations can also help oped established markets. The truth is that many associations are reduce barriers to the formation of rural associations. in need of external support and may never get off the ground Even if rural workers and business owners are open to without start-up finance (Macqueen et al. 2005:84). Governments working together, they may be unaware of the possibilities to do so. often fill this role, typically by providing grants, loans, and capac- In South Africa, the Sakhokuhle Association is an umbrella forestry ity-building services. While this can provide an essential lifeline, it organization for small forestry groups with 1,400 members. The can also compromise the association's independence and its ability coordinator of the program remarked that when the umbrella to lobby for change in government policies (Pimbert 2006:13). 108 B U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O N CONNECTION SUMMING UP: CONNECTION INetworks represent dynamic connections between individuals, groups, and I Learning networks are powerful communication links that provide a enterprises--a form of structured social capital. They can be informal, like conduit for sharing information and fostering group learning, reducing learning networks or support groups, or more formalized, with rules and innovation time--the time it takes to learn about and adapt new written charters, such as cooperatives, unions, trade groups, or federa- ideas to the local situation. For this reason, they greatly contribute to tions. These more formalized networks we call associations. adaptive management of ecosystem resources, which depends on I sharing experiences and lessons learned through a strategic process Networks and associations are the physical and institutional face of of trial and error. Cooperatives and producer associations often act as scaling up, giving an organizational form to the growth in information, venues for learning new business and technical skills through courses influence, and market access that allows nature-based enterprises to or site visits. expand their production, profits, and social benefits. I Federations allow enterprise owners to organize and advocate for their Networks and the Poor I interests within the political process. They provide forums for reaching Networks create institutional spaces in which the poor can interact with consensus and crafting a uniform message, amplifying their influence other producers working toward similar goals, building social capital on policy. through contact and cooperation. I Association Challenges They also help to legitimize and strengthen the informal institutions of the I As with many rural organizations, associations can be exclusive, and they poor, such as savings groups or women's groups, by expanding their often discriminate against smaller or poorer producers. It is not uncommon contacts, helping them to enter the mainstream of recognized organizations. for them to be dominated by more wealthy, educated, or politically Association Benefits connected producers. IProducer associations enable small rural producers to overcome some of I Rural associations frequently face funding problems and often depend their inherent handicaps, achieving economies of scale in harvesting, on grants to cover start-up and running costs. They tend to be financially processing, and marketing nature-based products and services. marginal, with limited budgets, and thus have trouble expanding their ICooperatives and marketing associations allow small producers to gain activities or offering many services that would benefit their members. bargaining power with traders in the middle or to bypass them altogether, I Government support for rural associations can be crucial for their letting the producers rise higher on the value chain and capture a greater survival, but it can also interfere with their internal governance. share of the market value of their products. Governments often try to use cooperatives and other associations IAssociations provide channels for various forms of microcredit and private for political ends, which can destroy their effectiveness as producer- finance, acting as a formal node that private banks and public funding driven organizations. agencies can work through to reach a dispersed rural clientele. 109 Enterprises founded on a basis of good environmental governance can not only improve the livelihoods of the rural poor but increase their resilience to continuing challenges such as climate change. C H ROUTES AP TO TER 3 RESILIENCE C ASE IN THIS REPORT WE ARGUE THAT COMMUNITY-BASED NATURAL resource management that springs from genuine community demand can nurture enter- STU prises that both generate considerable income and improve the state of local ecosystems. Under the right conditions, these enterprises can scale up, achieving a significant poverty D IES reduction effect. The case studies in this chapter chronicle three instances where significant scale and income effects have been achieved. The cases detail the governance conditions, principal actors, and enabling conditions that allowed these successes to go forward, as well as the challenges they have faced and must continue to deal with in order to sustain their success. The cases also demonstrate that enterprises founded on a basis of good environmental governance can not only improve the livelihoods of the rural poor but increase their resilience to continuing challenges. They can become more economically resilient--better able to face economic risks. They and their communities can become more socially resilient--better able to work together for mutual benefit. And the ecosystems they live in can become more biologically resilient--more productive and stable. The three case studies in this chapter are as diverse in their geography as they are in the ways the communities involved have worked to improve their lives through the management of local natural resources. They illustrate the power of self-interest and community ownership, the enabling value of intermediary organizations, and how communication and networks can provide new ideas and support. These cases also illustrate simply how hard this all is--that nothing achieves the perfection of plans on paper, that progress takes time and support, but that lives can improve and communities can get stronger. Fisheries for the Future: Restoring Wetland Livelihoods in Bangladesh A change in how the government grants access to freshwater fisheries in three major watersheds has restored these fisheries and the lives of the poor in the communities around them. Page 112. Green Livelihoods: Community Forestry Enterprises in Guatemala Government-granted forestry concessions in the Maya Biosphere Reserve have reduced illegal deforestation while slowly improving the economies of the communities responsible for them. Page 126. Turning Back the Desert: How Farmers Have Transformed Niger's Landscapes and Livelihoods Long-term engagement by NGOs has transformed traditional and sustainable agricultural practices and in the process has literally changed the landscape of this arid country even as it has improved lives. Page 142. FISHERIES FOR THE FUTURE Restoring Wetland Livelihoods in Bangladesh E IGHT YEARS AGO, A FULL FISHING NET WAS A RARE SIGHT ON THE EASTERN SHORES of Hail Haor wetland in remote northern Bangladesh. Even the wildfowl for which the area was renowned had been driven away by shrinking habitat and hunters. For the very poor villagers who made up the majority of local residents, and whose food and income depended on fish and aquatic plants, life was increasingly desperate. Households competed fiercely to buy fishing rights from the local elite. These few people, mostly large landowners and businessmen, controlled access to local water bodies (known as beels) that contained water year round, purchas- ing government leases which they then offered to the highest bidder. Today the residents of Hail Haor area enjoy food and income wetland sanctuaries. To offset the hardships caused by fishing security. Conflict over fishing rights has been replaced by restrictions, poor households also receive skills training and cooperation, with villagers patrolling a no-fishing sanctuary micro-loans to start new enterprises. Between 1999 and 2006, and voluntarily paying dues to harvest a newly excavated beel. fish catches in project villages rose by 140 percent, consump- Degraded bird and fish habitat has been restored by local tion went up by 52 percent, and average daily household labor. Fish catches have almost doubled, and two locally incomes increased by 33 percent (MACH 2007:10,12,32; extinct species have been successfully reintroduced (MACH Whitford et al. 2006:7). 2005a; MACH 2005b). While the long-term sustainability of these benefits cannot This turnaround in fortunes has been achieved under an be judged yet, community-led wetlands management and liveli- innovative pilot program in people-led wetland management hood diversification have improved the ability of some of that is drawing attention from policymakers across South Asia. Bangladesh's poorest inhabitants to survive economic downturns, Based on the "co-management" of wetlands by new community environmental disruption, and the potential impacts of climate institutions and local government, the Management of Aquatic change on the country's low-lying floodplains. By protecting Ecosystems through Community Husbandry (MACH) program, wetlands from further overexploitation and degradation, commu- funded by the United States Agency for International Develop- nities have also improved the environmental resilience of the ment (USAID), has revived fisheries in three degraded wetlands, resources on which their lives and livelihoods depend. improving the circumstances of 184,000 of Bangladesh's poorest So clear-cut have been the ecosystem and anti-poverty citizens (MACH 2006:2). benefits that the government of Bangladesh has replicated key Success is rooted in community self-interest and ownership. elements of MACH's approach in other fishing areas and in a In return for adopting conservation measures and sustainable pilot program for community-led management of protected fishing practices, community organizations (each representing forest areas. It has also adopted MACH's co-management several adjacent villages) receive 10-year leases to manage local model in its new Inland Capture Fisheries Strategy, reversing a waterways as well as grants to excavate silted beels and create decades-old policy of centralized control over the floodplains 112 F I S H E R I E S F O R T H E F U T U R E that cover half the country and on which 70 million people Long-standing government policies intensified this ecolog- depend for food and income (Whitford et al. 2006:5; MACH ical crisis. Bangladesh's ruling classes traditionally viewed 2007:47; Thompson 2006:1). wetlands as wastelands to be "recovered" for agricultural production, which fostered indiscriminate development. Between the mid-1960s and the mid-1980s alone, about 0.8 A Road Map for Wetland Revival million ha of floodplain were drained (Sultana 2006a:1). Fishing rights were also geared to maximizing government Located at the confluence of three major rivers--the Ganges, revenue rather than conserving natural resources. Most inland the Brahmaputra, and the Meghna--Bangladesh is rich in fishing waters in Bangladesh are government property, and the natural resources, especially water and fertile soils. Its freshwa- Ministry of Land leased short-term harvesting rights to the ter wetlands are among the world's most important, harboring highest bidder. This not only encouraged overfishing, it was hundreds of species of fish, plants, and wildlife and providing a also fundamentally inequitable. Fishing rights were concen- critical habitat for thousands of migratory birds (MACH trated in the hands of those wealthy enough to afford the 2007:1). But their productivity has come under increasing prized leases, while depriving poor fishing households of access pressure as the population has increased, exceeding 140 million (MACH 2006:1). people in a territory of only 144,000 km˛--an area the size of Recognizing these shortcomings and encouraged by foreign Nepal with nearly five times the population (Whitford et al. 2006:7). donors, including USAID, Bangladesh's government began Siltation caused by forest clearance, drainage for agricul- restricting wetland drainage in the late 1990s (MACH 2006:2-1, tural development, and the construction of flood embankments 4-2). It also launched several experimental wetland restoration has shrunk inland fishing grounds, especially during the area's projects that devolved management rights to communities or six-month dry season. Overexploitation and pollution have local government, with national and international nongovern- decimated fish stocks and other aquatic life, including edible mental organizations providing capacity-building and technical plants harvested by the poor (Thompson 2006:1,3). The conse- support (MACH 2006:1). quences have been devastating for millions of fishing households, The nine-year, US$14-million MACH program was one of the poorest segments of Bangladeshi society. Between perhaps the most successful and high-profile of these projects. 1995 and 2000, freshwater fish consumption fell by 38 percent Jointly developed and funded by the government of among the poorest 22 percent of Bangladeshis (World Bank Bangladesh and USAID, MACH's objective was to act as a 2006:46), and in 2000 the World Conservation Union (IUCN) national testing ground for community-led natural resource classified 40 percent of Bangladesh's freshwater fish species for management, with field operations in more than 110 rural which data are available as threatened with extinction (IUCN fishing villages (Whitford et al. 2006:18; Thompson 2006:1). Bangladesh 2000 as cited in Thompson 2006:1). Four highly experienced NGOs were selected by the Bangladesh government and USAID to implement the program and act as intermediary organizations between communities and local and national government. US-based Winrock International, which specializes in sustainable resource management projects, devised the new institutional arrangements and provided overall program management, while three national NGOs implemented the field work. The Bangladesh-based Center for Natural Resource Studies (CNRS), which specializes in community-based flood- plain restoration, helped communities establish Resource Management Organizations (RMOs), decide environmental priorities, and monitor the impacts of project activities. Caritas Bangladesh, a Catholic human development agency with a long record of working with poor, landless, marginalized communities across the country, oversaw income generation and microcredit lending among poor wetland users. The Bangladesh Center for Advanced Studies, a leading environ- mental research group, provided short-term specialists in hydrology and fishery biology to inform physical restoration works and fish restocking. Its staff also undertook research and advocacy on water quality, pollution, and cleaner practices in the textile dyeing industry and advised on policy reform (MACH 2007:3-4). 113 W O R L D R E S O U R C E S 2 0 0 8 As the program will be completed in 2008, it is too early to BENEFITING PEOPLE AND NATURE: assess either the long-term sustainability of the new institutions KEY MACH ACHIEVEMENTS 1999­2006 it established or the durability of benefits to fish stocks and Building Environmental Capital habitats. Still, MACH's success to date has been impressive I Sixty-three sanctuaries established, covering 178 ha; 57 ha of beel enough for international donors and government policymakers wetland and 31 km of water channels excavated. to view its co-management approach as a potential model for natural resource management beyond Bangladesh's borders I Fishing restrictions have aided habitat and fish stock recovery. (Thompson 2008). I Fishing pressure in 110 project villages fell by 2,500 person hours per day. I Some 644,000 trees planted to replace lost swamp forest and Wealth from Water: The MACH Approach reduce erosion. I Wetlands restocked with 1.2 million fish from 15 native species, The three wetlands targeted in the MACH program faced a including 8 threatened fish species (MACH 2007:11­13; 15; Sultana representative range of development pressures and ecological 2006b:2). threats. Hail Haor in the Sreemangal administrative subdistrict in northeast Bangladesh is a wetland region fed by 59 hill streams Building Economic Capital and renowned for its fish and birdlife but threatened by siltation I Members of 5,202 wetland-dependent households received training and soil erosion caused by farming practices in the surrounding and credit to start new livelihoods (MACH 2007:32­33). hills. Turag-Bangshi, a low-lying floodplain in Kaliakoir just I Project works provided 2 million days of local employment north of Dhaka faces encroachment by agriculture, irrigation (MACH 2007:13). works, and industrial pollution. And Kangsha-Malijhi in the Sherpur district of north central Bangladesh is prone to flash I Average daily household incomes rose by a third, to US$1.31 floods worsened by the deforestation of surrounding hills (MACH 2007:33). (MACH 2003:ix; MACH 2007:5). I Fish production rose 140 percent and consumption increased by Out of 450 villages using these intricate ecosystems of 52 percent (Whitford et al. 2006:7). rivers, streams, and beels, the 184,000 people living in 110 commu- nities most dependent on wetland resources were targeted for Building Social Capital project activities (MACH 2006:2). Average household income I New community institutions provided a forum for cooperation among was US$500 a year in 1999 when field operations began different interest groups, including poor fishing families, better-off (Deppert 2006a). Most families relied either fully or partly on fish landowners, and local businessmen (MACH 2007:57). and aquatic plants for food and income (MACH 2006:1). I Co-management arrangements with local government provided Wetlands in Bangladesh are highly seasonal, making year-round support and sustainability for the new community institutions. livelihoods precarious, a fact of nature exacerbated in the project areas by the overexploitation of dry-season water. In an average I Endowment and revolving credit funds enabled these new institutions year, water coverage shrinks from a wet-season peak of 13,000 to function independently after project finance ended (MACH ha to a dry-season minimum of 3,000 ha in Hail Haor, from 2007:45; MACH 2006:4.13­4.17). 8,000 to 700 ha in Turag-Bangshi, and from 8,000 to 900 ha in Kangsha-Malijhi (MACH 2007:5). MACH's approach to reviving these fishing grounds and wetland threats and develop a consensus on solutions in the form boosting local incomes was simple but radical: enabling commu- of Participatory Action Plans. In each cluster of villages, field nities to co-manage wetlands and gain access to fishing rights on officers from the Center for Natural Resource Studies were a secure and equitable basis through new institutions that repre- careful to bring all stakeholders into the process, including local sented all local stakeholders. councilors, small businessmen, landowners, and teachers as well Traditionally, highly-sought-after fishing rights to jalmohals-- as poor fishing families and the landless (Sultana 2006b:4). While government-owned areas that hold water year-round--were this approach ran the risk of local elites dominating the process, leased to the highest bidder for three years by the Ministry of it helped ensure that the new wetland management institutions Land. Fisheries were therefore controlled by well-off lessees, who and their programs for action had full community support. It either hired professional fishers to work for them or charged poor was applauded by independent evaluators who visited MACH fishers tolls. This system created little incentive to conserve local villages in 2006 and described collaboration across interest fish stocks or protect wetland ecosystems, and many poor people groups as "essential if the Resource Management Organization were deprived of access (Hughes 2006). is to articulate a credible management plan and stand up to The first step in devolving wetland management was two powerful interests, such as former leaseholders or government years of intensive community consultations to identify local officials" (Whitford et al. 2006:6­7). 114 Creating Institutions, Empowering Communities The next step involved establishing the institutional framework for communities and local government to co-manage the wetlands on their doorsteps. Three new types of institutions were created--at the village, wetland, and local government levels, as well as one village-level federation. (See Table 1.) The first priority was establishing 16 Resource Manage- ment Organizations to take over day-to-day control of wetland management. These represented a radical departure from the status quo, as community institutions had rarely played a role in natural resource management in Bangladesh. Each organiza- tion had jurisdiction over part of the wetland ecosystem, incorporating several villages. All local wetland users--fishers, farmers, women, aquatic plant harvesters, and other resource collectors--were represented in its membership, along with other local stakeholders such as farmers (MACH 2006:2; Sultana 2006b:1­5). After each RMO had drawn up a constitution, annual budget, and wetland management plan, with MACH assistance, it was registered with the government's Social Welfare Direc- torate and awarded 10-year leases to manage and harvest local water bodies by the Ministry of Land. The only condition was prompt payment of annual dues, which were set at lower rates than those charged to individual leaseholders (MACH 2006:2; MACH 2007:19­22). A second tier of local wetland governance--the co- This granting of medium-term tenure rights was critical to management institution--was established at the upazila (subdis- engaging communities' self-interest in the success of the fledgling trict) administrative level, in the form of Local Government resource management institutions. Previously fishers and other Committees (renamed and formalized by the Bangladeshi wetland harvesters could only receive annual permits and had no government in 2007 as Upazila Fisheries Committees). These say over wetland management. Awarding villagers a measure of brought together local administrators, elected local councilors, control over the natural resources on which they depended gave and community representatives from both RMOs and village- them a compelling reason to invest time and resources in the new based wetland user groups representing poor households. Their governance institutions. By 2006, RMO memberships (ranging role was to coordinate wetland management activities within their from a few dozen to several hundred people) and their elected boundaries, approving RMO management plans and measures executive committees had successfully developed, implemented, and arbitrating conflicts. They therefore had the final say over and enforced wetland restoration plans and equitable harvesting wetland development, marking a significant departure from the rights across 25,000 ha of permanent and seasonal wetlands status quo in which wetland management decision-making was (MACH 2007:v, 20). passed down from ministries in Dhaka to local government administrators, bypassing communities (Deppert 2006a). TABLE 1 WETLANDS MANAGEMENT INSTITUTIONS, MACH PROGRAM Management Institution Membership Role Resource Management All local wetland users and local stakeholders Exercises day-to-day control of wetland management Organization (RMO) Local Government Committee Local administrators, elected local councilors, Coordinates wetland management activities within their (Upazila Fisheries Committee) community representatives from RMOs and RUGs boundaries, approves RMO management plans and measures, arbitrates conflicts, has final say in wetland development Resource User Group (RUG) Poor fishing families, aquatic plant collectors, and Creates opportunities for skills training, microcredit loans landless people Federation of Resource User Resource User Groups Helps RUGs become self-sufficient through training in literacy, Groups (FRUGs) record-keeping, and other skills Sources: Deppert 2006a; MACH 2006:2; MACH 2007:30; Sultana 2006a:2-4; Sultana 2006b: 1-5 115 W O R L D R E S O U R C E S 2 0 0 8 2006a:2; MACH 2007:30; Deppert 2006a). In 2004, the village groups were organized into 13 Federations of Resource User Groups (FRUGs), which employed staff to help member groups become self-sufficient via training in literacy, record-keeping, and other key skills. By 2007, these federations had been registered as independent organizations with the Bangladesh government's Social Welfare Department, had taken control of the revolving microcredit funds built up by the project, and were operating independently of Caritas (MACH 2007:30). Wetland Management by the People, for the People Each Resource Management Organization was given jurisdic- tion over a distinct area of one of the three project wetlands. Five such committees were established, each chaired by These were typically made up of a series of beels and streams the senior local administrator--the Upazila Nirbahi Officer-- and a floodplain that were connected during the monsoon with the Upazila Fisheries Officer acting as secretary. Other months but isolated in the dry season (MACH 2003:25-26). members included the elected chairmen of local councils After it was legally registered, an RMO's first step was to (Union Parishads) and local government officials responsible hold community planning meetings to identify the main for land management and agriculture as well as the leaders of problems affecting local wetlands. These generally included the local RMOs and Resource User Groups (RUGs). Every following concerns: siltation due to soil erosion, overharvesting member had equal voting rights, and the committees provided and use of harmful fishing gear, destructive fishing methods a new forum for communities to exert influence and voice their such as the dewatering of deeper pockets in the floodplain to needs (MACH 2007:3). catch fish sheltering in the dry season, industrial pollution, and Darrell Deppert of Winrock International, who headed the blocked fish migratory routes. MACH program until late 2007, describes the innovative To address these problems, the RMOs adopted wetland Upazila Fisheries Committees as the key to the program's management plans dictating when and where fishing could success and long-term sustainability. "They are the backbone take place, banning harmful practices, and outlining physical required to support community-based institutions in sustainably interventions, such as excavating corridors between dry-season managing wetlands for the benefit of all users. I am often told by water bodies. These were developed by the membership poor community members that to sit at the same table as elected following community consultations and were implemented by officials and government administrators is very important and elected executive committees of 10­20 people. Once their empowering" (Deppert 2006a). plans were approved by Local Government Committees, the While the co-management committees fostered local government investment in sustainable fisheries, the third tier of TYPICAL COMMUNITY WETLAND MANAGEMENT MEASURES new institutions created by MACH helped win over the poor. Drawing on existing successful microcredit programs in I Creating small sanctuaries, usually of 10 ha or less, where fishing is Bangladesh, Caritas organized village-level Resource User banned year-round, enabling fish and other aquatic organisms to Groups (RUGs), targeting poor fishing families, aquatic plant repopulate the wider floodplain during the wet season. collectors, and landless people. Each group elected a chairper- son, and members applied for skills training and microcredit I Excavating silted-up channels to create new dry-season habitat and loans to start new livelihoods. These activities were managed by increase water flow and fish movement in the wider wetland. Caritas Bangladesh, which also provided literacy and nutrition I Observing two- to three-month fishing bans during the early monsoon programs (Sultana 2006a:2-4). fish spawning season. The objective was twofold: to prevent the poor being penal- ized by fishing restrictions imposed by RMOs to regenerate I Banning damaging practices such as dewatering in the dry season. wetlands and to reduce pressure on fisheries by helping the poor I Banning hunting of wetland birds. gain access to new and more profitable livelihoods. By the end of 2006, project villages boasted 250 RUGs with 5,202 members, I Planting indigenous wetland and riparian swamp trees. bringing income benefits to more than 25,000 people (Sultana Source: MACH 2006:4.1­4.5 116 F I S H E R I E S F O R T H E F U T U R E new community organizations were awarded leases for local which relatively wealthy individuals dominated decision-making, water bodies, which they paid for by collecting dues from they also mandated that a majority of members must be poor fishers. MACH NGOs provided guidance, technical support, resource users, owning less than 0.2 ha of land (Deppert 2006a; and grants to implement the conservation plans (MACH MACH 2007:24­25). Most RMOs also use secret ballots to elect 2003:xii, 29­31). Field staff from Caritas and the Center for office-holders. Regular meetings are held with fishers and Natural Resource Studies also trained RMO committee landowners to agree on management plans and rules and to set members in wetland conservation and tree restoration user fees. In order to broaden participation, most RMOs have techniques, accounts and record-keeping, good governance also set up subcommittees for financial audits, sanctuary practices, and other key skills (MACH 2003:20). management, and tree plantations (MACH 2007:21). Perhaps most important for their constituencies, RMOs have provided fair and equitable access to harvesting grounds for Promoting Ownership and Equity all resource users, while adopting a pro-poor approach that has Implementing these measures called for significant community favored a majority of local citizens. Commercial fishers are investment, cooperation, and sacrifices before the benefits charged a one-time annual toll during the harvesting season, started flowing. Fishing was banned in the sanctuaries that while those fishing for subsistence receive free access. Dues are formed the cornerstone of most RMO plans, and fishers had lower than those charged by former profit-seeking leaseholders, to stop using equipment that encouraged overfishing, such as with executive committees seeking only to cover operational fine mesh nets that caught immature fish before they had time costs and the annual leasing fee (MACH 2007:v­vi, 48). to reproduce. In some areas, poor families accustomed to Independent evaluators commissioned by USAID to visit supplementing their diet by hunting birds or collecting plants MACH villages in 2006 reported that the new governance could no longer do so (MACH 2006:4.1­4.2). Those who arrangements had significantly empowered the poorest citizens. wanted to join RMOs were expected to volunteer their time "The project has been notably successful in improving the social free of charge and usually to pay annual dues of about 5 taka standing of poor fishermen, traditionally near the bottom of the (US$1=70 taka) (MACH 2005b). social ladder." One beneficiary eloquently described the improve- To win over skeptical citizens, RMOs supported by field- ment of his lot to the evaluation team: "`Before, we were nothing, workers from Caritas and the Center for Natural Resource but now our dignity has increased so that we can shake hands with Studies used a variety of measures. In the public arena, these all kinds of people'" (Deppert 2006a; Whitford et al. 2006:25). included rallies, public meetings, and street theater to raise The experience of the Jethua Resource Management awareness of conservation benefits. To foster transparent Organization in Hail Haor is typical. Its 42 founding members decision-making and allay suspicions of corruption, RMOs held elected a 13-strong executive committee that organized public open meetings from the outset and set two-year term limits for meetings and won community approval to lease and excavate a executive committee members. Following early experiences in 2.4 ha perennial beel, guaranteeing a year-round harvest to local 117 W O R L D R E S O U R C E S 2 0 0 8 fishers. Within the beel, a 0.5 ha sanctuary was created where that they found "no examples of elite benefit capture" in the fishing was banned in order to regenerate the wider wetland, project villages (Whitford et al. 2006:8). and two species of locally extinct fish have been successfully Whether this remains the case after project funding ends is reintroduced. The RMO borrowed 42,000 taka (US$600) from an open question. But in 2006­2007 MACH boosted RMOs' MACH to create the sanctuary, which it repaid through user survival prospects by awarding the Upazila Fisheries Commit- dues within two years. Within five years, fish catches had almost tees endowment funds whose annual returns could be used to doubled, to 231 kg/ha. In 2004, having proved its sustainable continue making grants to RMOs for habitat restoration and management credentials and boding well for the future, the management. By guaranteeing a future revenue stream, these RMO obtained leasing rights to a much larger neighboring provided a clear incentive for communities to retain their loyalty beel, covering 250 ha (MACH 2005a). both to the institutions and to sustainable wetland and fisheries In the few areas where enforcing new rules such as seasonal practices (MACH 2007:vi). fishing bans and no-fishing sanctuaries has been a problem, communities have responded by organizing volunteer wetland patrols to deter rule-breakers (MACH 2005c). With community Community Dividends: approval, CNRS also pioneered the design and use of concrete fish shelters, using local labor to construct more than 22,000 More Fish, New Livelihoods hexapod-shaped devices and place them in sanctuaries. These both provided additional feeding habitat and made it very diffi- As a pilot government program, close monitoring of social and cult to catch fish, which congregate and hide among them environmental impacts was an essential component of MACH's (MACH 2006:4-4). activities. To establish a baseline, NGO field staff set up 23 monitor- Resource Management Organizations have also exercised ing locations in 1999, representing all types of wetland habitat. newfound influence by successfully overcoming resistance from Every 10 days during the project, field staff and village monitors powerful former leaseholders who did not want to hand over designated by RMOs recorded the number of people fishing, their control of wetlands. Such successes have often been achieved hours, and the weight of the catches (MACH 2007:35). with the support of local fisheries officials or council chairmen, The resulting data were dramatic and unequivocal. Fish underlining the worth of the new co-management arrangements yields more than doubled with wetlands in community hands, in strengthening communities' hands. Although fisheries law in from average catches of 144 kg/ha in 1999 to 327 kg/ha in Bangladesh is generally poorly enforced, in three cases RMOs 2007 (MACH 2007). Fish consumption, recorded every three supported by Upazila Fisheries Committees have succeeded in days by local women in 29 villages, rose by 52 percent overall upholding fines on groups of fishers that broke harvesting rules between 1999 and 2004, from 32 to 48 grams per person a day (MACH 2007:59­61). The evaluation team commissioned by (MACH 2006:2­3). Wetland diversity also expanded, with USAID also noted that the co-management structure had threatened fish species successfully reestablished, migrating "equipped the poor to resist pressure from the powerful" and birds returning, and aquatic plants recovering, including the shingra fruit harvested by poor families (MACH 2007: 12, 112). For families used to unpredictable fish harvests, the most important benefit has been the revival of fish catches. By 2004, fishing effort had fallen by almost 2,500 hours a day across project FISH YIELD AND FISH SANCTUARIES, MACH SITES, 1999­2006 61 62 400 54 Fisheries yield, as catch per eratceh/ 46 unit of area 300 41 Number of 32 sanctuaries hsiffo 200 gk100 0 1999 2000 2001 2002 2003 2004 2005 2006 Source: MACH 2007:11, 53 118 F I S H E R I E S F O R T H E F U T U R E villages due to harvesting restrictions and a shift among fishing households to alternative livelihoods that offered greater income and stability (Sultana 2006b:2). Yet MACH communities still earned US$4.7 million more from local fish sales in 2004 than they did in 1999 due to the revival of wetland habitats and, consequently, of fish stocks (MACH 2006:4-18). MACH has also speeded this process by funding the reintroduction, under RMO supervision, of almost 1.2 million fish from 15 native species (MACH 2007:12). New livelihoods have also played a significant role in rising prosperity and ecosystem recovery, underlining the importance of linking conservation activities to income generation. Modeled on established community microcredit schemes in Bangladesh, the first micro-loans were awarded by Caritas a year after MACH began operating. To qualify, households had to own less than 0.2 ha of land, join their local men's or women's Resource User Group, and agree to save a minimum of five taka a week (MACH 2007:34; Costa 2006:2). Members were encouraged to take up new or part-time occupations to compensate for times of year when fishing was banned and to reduce pressure on wetland fisheries against the backdrop of a rising population. They were given access to training and loans covering 35 occupations ranging from poultry, duck, and goat rearing to nursery planta- tion, mechanics, electricians, and sewing (MACH 2006:4-17). Most beneficiaries sold their goods or services locally, but some reached wider markets. Clothing traders, for example, have ADDITIONAL INCOME FROM FISHING IN MACH COMMUNITIES begun buying items tailored by RUG members, while whole- salers collect eggs from their poultry farms (Begum 2007). 5 Fishing income Between 2000 and 2006, a total of 14,829 loans were earned above handed out to RUG member households, supporting enterprises 4 1999 baseline that collectively brought in more than US$800,000 (MACH 2007:33,53). Four thousand of the borrowing families reported DSUfo 3 that their incomes rose by at least 70 percent thanks to their new alternative activities (MACH 2007:33). Credit recovery rates are snoilli 2 M an impressive 96 percent, reflecting the successful outcome of 1 loans and community buy-in (Whitford et al. 2006:8). MACH infrastructure activities also generated short-term 0 employment for poor households, particularly through the excava- 1999 2000 2001 2002 2003 2004 2005 2006 tion of 31 km of link channels between dry-season water bodies Source: MACH 2007: 53 and 57 ha of shallow beels. These excavations provided 2 million days of manual labor while enriching thousands of hectares of BENEFITS OF ALTERNATIVE INCOME LOAN PROGRAM wetland by creating new perennial waterways (MACH 2007:13). 4000 Number of 503 479 borrowers Dividends for Women 461 464 437 3000 420 407 411 Average Women's participation in decision-making of any kind is rare in annual income 2000 Bangladesh, particularly in the conservative rural areas where DSU of borrower MACH operated. As Bangladeshi women do not fish (although they collect other aquatic resources such as plants), many 1000 communities argued that they had no place in wetland manage- ment. MACH field staff, however, worked hard to overcome 0 these cultural norms and set a 25 percent target for female 1999 2000 2001 2002 2003 2004 2005 2006 membership of resource management organizations. By 2006 all Source: MACH 2007: 53 119 Sofia Begum started a home-based poultry business with a loan from her local Resource User Group. 16 RMOs included women on their executive committees and furniture shop. "I knew if we could build more things, better about 20 percent of all members were female (MACH 2006:4-7, things, we would make more money," she says. 20). Caritas also established 83 women-only resource user With the shop flourishing, Sofia took out a third loan, for groups, to encourage wives to embark on new independent liveli- 10,000 taka (US$143), to start a home-based poultry business. hoods (MACH 2007:31). She attended a two-day training course and bought 144 chick- The evaluation team commissioned by USAID described ens. The hens bring in around 11,500 taka (US$164) per month, these efforts to empower poor women as an "outstanding and Sofia's children now attend school. Once Sofia repays her achievement" of the project. "By insisting that a proportion of latest loan, the family will be self-sufficient, now a common positions be filled by women...the project has forced the pace of pattern in her village. Among the 20 members of the Chenguria social change," its stated report. "At several sites, the team women's group, which Sofia chairs, 15 live in households that no encountered women members willing to speak forthrightly about longer need to fish for an income (MACH 2005e). their concerns and their role in the project--even interrupting the men" (Whitford et al. 2006:25). MACH's integrated livelihoods program has also offered a concrete route to female empowerment. A third of village user Conservation Dividends group members are women, hundreds of whom have benefited from skills training and micro-loans (MACH 2007:31). The main job of the 57 sanctuaries established so far by commu- Toyobul Islam, president of the Kalapur Federation of Resource nities was to allow fish to breed and repopulate the wider User Groups in Sreemangal district, has overseen dozens of floodplain, but they also yielded benefits for the ecosystem. A loans successfully disbursed for new enterprises, including richer diversity of aquatic life as well as bird populations was poultry, duck, and goat rearing, tree nursery management, and harbored in the protected waters, with 47 plant species reestab- sewing. "This support has opened up new opportunities for lished. In 2003 the government designated eight of the most members, especially women," he says. "Traditionally women are ecologically sensitive areas as permanent sanctuaries (Thompson confined within the four walls of their houses. Now with money 2008; Whitford et al 2006:18; MACH 2006: 4.1­4.2). in their hands they have become economically empowered and The most spectacular example of this trend is the renais- more confident" (Tanvir 2006:10). sance of Hail Haor's internationally renowned birdlife. The Sofia Begum (see photo above), a former housewife from wetland's migratory waterfowl population, once numbering in Chenguria village in the Sherpur district of northern Bangladesh, the tens of thousands, had shrunk to a few dozen by the late is a good example. She joined the local women's resource user 1990s, decimated by overhunting and human disturbance. In group in 2002, borrowing 3,000 taka (US$43) to buy wood that 2003 the Ministry of Land agreed to set aside a 100 ha perma- her husband made into furniture and sold for a profit. The nent sanctuary in Baikka Beel and to forgo leasing payments, couple then took out a second loan to open their own small handing over management responsibility to Borogangina RMO, 120 F I S H E R I E S F O R T H E F U T U R E MACH NGOS AND DONORS: AGENTS FOR CHANGE The NGOs that implemented the MACH program were not only critical to nity-led wetland management project implemented by the Department of its success in the 110 project villages. In acting as intermediaries with Fisheries (MACH 2007:38­41). government agencies, national policymakers, donors, and the wider NGO At a macro policy level, the government of Bangladesh has asked MACH community, they also had an impact well beyond the program's staff to advise on a range of natural resource programs, including the geographic boundaries. Their work has thus been a practical example of high-profile Coastal and Wetland Biodiversity Management Project funded the kind of value added by intermediary NGOs, as discussed in Chapter 2. by the United Nations Development Programme and the Global Environment Due to MACH's status as a pilot project for potential replication in various Facility (MACH 2003:xiii). Representatives from Winrock and the natural resource sectors, the government of Bangladesh and the United Bangladesh Center for Advanced Studies also played a key role in the States Agency for International Development (USAID) decided from the development of the Ministry of Fisheries and Livestock's 2006 Inland outset to involve prominent and highly experienced organizations in its Capture Fisheries Strategy (Whitford et al. 2006:17). BCAS, which helped implementation. Winrock International, a nonprofit NGO with technical formulate Bangladesh's environmental policy framework, and Winrock, experience in natural resource management in 40 countries, was which shared staff with another project that supported the Department of contracted not only to oversee program implementation but also to devise Fisheries in developing its strategies, were particularly well placed to the detailed framework for the makeup, responsibilities, and operation of exert their influence on the strategy, which embraces key MACH the new co-management institutions. Likewise, the recruitment of Caritas, approaches (Thompson 2008). the Center for Natural Resource Studies, and the Bangladesh Center for As the program's reputation has spread in development circles, the MACH Advanced Studies (BCAS)--three national NGOs with proven track records NGOs' influence and reach has also extended overseas, with delegations (in, respectively, livelihood development, fishery and wetland manage- of policymakers from Nepal, Cambodia, Viet Nam, Brazil, and other ment, and environmental policy) and with highly qualified staff--was resource-rich developing countries seeking to exchange ideas and learn based on the desire to lay the groundwork for success in the field. lessons (Thompson 2008). This approach was costly, both in terms of finances and field staff per Role of USAID hectare (Whitford et al. 2006:18). However, a 2006 evaluation of MACH's As a major donor to the government of Bangladesh, the US Agency for Inter- effectiveness by independent consultants acknowledged the critical role of national Development has developed a broad environmental agenda in the intermediaries in its success, stating: "The project correctly recognized country, with impacts and influence well beyond the funding and scope of that creation and sustaining of beneficiary organizations would require individual projects. Its latest Program Objective for Environment seeks to frequent face-to-face contact from project staff with considerable training strengthen natural resource management by the Government of Bangladesh in rural development and social awareness. Thus the combination of a and national NGOs via key themes, including implementation of effective major consulting firm, with considerable experience in the technical community-based resources management mechanisms, habitat restoration, aspects of the project, with three prominent NGOs, with excellent organi- policy promotion, and improved institutional capacity. zational skills, has proved very effective" (Whitford et al. 2006:18). The evaluation did warn that the "intensity of financial and staff resource use The MACH program, mostly funded by USAID, covered all these areas. Its does raise some questions for replicability" (Whitford et al. 2006:18). success enabled USAID to influence national policymaking, both through MACH's final report to USAID estimated, however, that the agency's invest- the Inland Capture Fisheries Strategy and the government's latest Poverty ment would achieve a "more than healthy" internal rate of return of 56 Reduction Strategy Paper, its keystone development blueprint. The latter percent and a benefit-cost ratio of 4.7, based mainly on the documented describes floodplain fisheries as having "particular significance for poverty upsurge in fishing income (Thompson 2008). reduction goals." In the future, it stated, the Department of Fisheries would "preserve...and make more productive use of inland capture fishery The reach, experience, and networking ability of the MACH NGOs also through community based participation of fishermen and fishery related enabled the program's positive lessons to be absorbed by both govern- stakeholders" (MACH 2007:75). ment officials and other NGOs and to be widely disseminated. Personnel from Caritas and the Center for Natural Resource Studies In 2003, USAID's community-led, co-management approach was also organized site visits and seminars for policymakers from the Ministry of formally extended to terrestrial ecosystems, in partnership with the Ministry Fisheries and Livestock and the Ministry of Land and for donors and of Environment and Forests. A pilot program to preserve threatened tropical community development NGOs. They also replicated MACH's physical forests is centered on devolving power to new local institutions in five interventions in nine sites near Dhaka as part of a separate commu- wildlife-rich protected areas (Whitford et al. 2006:14,19). 121 W O R L D R E S O U R C E S 2 0 0 8 which has since banned all fishing, bird hunting, and harvest- Sustaining Success: ing of edible water plants (MACH 2007:47). By 2007, a Lessons and Challenges midwinter census recorded more than 7,000 water birds in Baikka Beel, including such rare species as the Pallas' Fish Eagle and Greater Spotted Eagle (MACH 2007:38), and Two clear advantages help to explain the MACH program's MACH had built a watch tower to accommodate an influx of success as a conservation and anti-poverty initiative: the large ecotourists. The Bangladesh government is now applying for sums of donor money invested and government support for Hail Haor to receive international protected wetland status decentralizing wetland management. But there were several under the Ramsar Convention (MACH 2007:vi). other key elements that reflect the framework laid out earlier in Land-based habitat management has also brought conser- this book and that have wider resonance. vation dividends. Communities planted more than 600,000 First and most important, the program was built on communi- trees from 48 native species to restore swamplands and wetland ties' self-interests. Villagers were granted rights and powers to use border forests and to counter erosion on the banks of rivers and natural resources and responsibilities to manage and protect them. streams. Over the long term, the tree planting program will If they failed, their livelihoods and investment (of user dues and also bring economic benefits to communities. While the swamp time volunteered) were at stake. Second, because of the co-manage- forests will be preserved, tree branches can be lopped for fuel ment arrangement with local administrators, these new institutions and for brushwood that is placed in the water to attract fish. were not isolated; they worked well within the existing governance MACH also estimates a healthy return from the first felling framework. Third, the implementing NGOs worked effectively as cycle of non-swamp trees at US$1.04 million in today's prices intermediary organizations--acting as a bridge between between 2015 and 2020. Through benefit-sharing agreements villagers and local and national governments to develop a substantial part of this will go to community organizations, democratic, equitable, and effective community-based institutions. with the rest reserved for landowners and local government Fourth, effective networking, outreach, and organizational (MACH 2007:14-15; 53). scale-up over the nine years of the program prevented the project villages from being mere temporary islands of good practice. Instead, the new institutions were left on a good footing to prosper after donor funds and NGO expertise began to be withdrawn in 2007. Fifth, endowment funds for RMOs and revolving credit funds for resource user groups provided financial security once the project funding dried up. As a result, the commu- nity institutions nurtured by MACH are now self-sufficient enough not only to survive but to prosper. So concluded the team of consultants sent to evaluate the program in 2006, reporting that most resource management organizations and user groups "appear capable of managing the fishery resources and income Career fisherman Jamir Uddin struggled to survive as once bountiful catches declined across generation activities respec- Sherpur wetland in the 1990s. To make extra money he began collecting and selling peanuts, tively [and] should be able to and in 2001 he took out a MACH micro-loan to start his own shop. Three loans later, his sustain themselves financially expanding general goods store makes 30,000 taka (US$428) a year in profits, a sum he for the indefinite future" describes as unimaginable in his former occupation: "I saw that if I quit fishing and devoted (Whitford et al. 2006:27). myself to a shop full time I could make more money," he says as he greets customers. "This The slow project phase- shop has changed my life." (MACH 2005d) out has also helped community 122 F I S H E R I E S F O R T H E F U T U R E Meanwhile, in Hail Haor and Sherpur, continuing defor- estation of hills throughout the wetland catchments will result in growing siltation problems unless there are widespread changes in land use practices used in forests, tea estates, and farmland. These problems are common across Bangladesh's floodplains, suggesting that MACH's impressive achievements may not be sustainable over the long term unless its co-management approach is scaled up and applied across larger ecosystems, with full government backing (MACH 2007:76). Toward a Sustainable Future: Scaling Up Community Fisheries MACH's success in increasing fish stocks and fishing income was all the more marked in that it occurred against a backdrop of institutions to plan ahead. Several Resource Management Organi- continuing ecological crisis in most of Bangladesh's floodplains. zations have demonstrated maturity and forward thinking in While it remains early, the co-management of wetlands appears to establishing "post MACH funds," while others have leased offer a route to preserving their environmental resilience--and additional water bodies to generate more income. Darabashia hence the fisheries productivity on which millions of poor people RMO in Sherpur district, for example, which collects 20 taka a year depend. Sustainable harvesting, coupled with alternative liveli- from its 122 members and rents out access to fish shelters, has saved hoods programs, has also boosted communities' economic 33,676 taka ($US481) in a post-MACH fund (MACH 2005b). resilience, while the creation of new community institutions has Some challenges remain. Literacy rates are very low in increased their social capacity. With fishing communities suffering some Resource User Groups, which will need to lean heavily on around the country, this lesson has not been lost on the national their local federation to survive once project field staff leave government, which, with donor support, has begun to replicate (MACH 2006:4.16). Within RMOs there is a risk that female MACH approaches both in the field and in national policymaking. membership will slip or that local elites will seek to re-exert their authority once project oversight is removed. There is also the prospect that, with fish populations recovering, communities will Quantitative Scale-Up be tempted to overexploit the wetland bounty once again, and In 2006, for example, MACH field staff began helping Depart- RMOs may face challenges to their authority. ment of Fisheries' officers and communities to copy its physical The bigger clouds on the horizon, however, are related to conservation techniques in 10 degraded wetlands close to Dhaka national policy and government commitment. While Dhaka has (MACH 2007:38­39). The villages involved were supported by pledged to renew wetland leases to RMOs when they become the Fourth Fisheries Project, a major Department of Fisheries due, uncertainty remains about how many years the government program aimed at reducing poverty through increased fish will commit to. This could undermine community support for production, funded by the World Bank and the United Kingdom sustainable use of wetlands, since interest in the institutions Department for International Development (Thompson 2007). established by MACH is based on long-term tenure. This project and others overseen by the Bangladeshi Depart- Competing development priorities are also jeopardizing the ment of Fisheries and Department of Environment have also impressive fishery gains made by some communities. In copied MACH's pioneering efforts to replant native swamp trees Kaliakoir, polluted water from an eightfold increase in textile- along wetland borders. In addition, government agencies related industries over the last three years has caused fish kills in directly operating floodplain community projects, such as the sanctuaries (Chowdhury and Clemett 2006:3). Water quality and Local Government Engineering Department, have adopted treatment regulations exist but are not enforced, despite visits MACH best practices such as sanctuaries and habitat restoration from representatives of the RMOs and the MACH NGOs. To (MACH 2007:41­42). address this, the Bangladesh Center for Advanced Studies, a In 2003, MACH approaches were also extended to terres- MACH partner NGO, is working to identify cleaner technolo- trial ecosystems, forming the basis for a groundbreaking project gies. It is also adopting a two-pronged lobbying strategy: trying to safeguard Bangladesh's threatened forests by devolving power to persuade the polluting industries to install effluent treatment to communities (Whitford et al. 2006:14). Bangladesh has less plants while pressing the government to enforce existing water than 0.02 ha of forestland per person, the lowest ratio in the quality standards (MACH 2007: 16­19, 62­63). world, and those fragments that remain are under intense 123 W O R L D R E S O U R C E S 2 0 0 8 pressure to provide timber, fuelwood, agricultural land, and Organizational Scale-Up LEARNING FROM BANGLADESH'S FISHERIES INITIATIVE MACH's success was also founded on the networks it assiduously built at local and national levels. In particular, setting up Federa- Pilot projects can have broader impact. The demonstrable success tions of Resource User Groups was vital to the sustainability of of the MACH program has spurred its adoption by the national govern- the 250 village-based RUGs, most of whose members were poor, ment to cover all inland freshwater fisheries. The government is also illiterate, and lacking in skills and confidence. The 13 federations instituting a project based on the lessons of the MACH program to have offices (built by MACH) and paid employees (including safeguard and enhance the country's dwindling forest areas. It remains former Caritas field officers) who trained user group office to be seen how these national commitments will be kept, but national holders such as chairmen and secretaries in such skills as literacy, policy recognition establishes a certain measure of accountability that numeracy, and book and account keeping (MACH 2007:14, will be hard to abandon. 30­32). By mid-2007, revolving credit funds totaling more than A long-term commitment is necessary. The kind of political, social, US$420,000, set up by Caritas to promote financial stability and environmental changes reflected in the MACH program take time to after project funding ends, had been handed over to the federa- develop and take permanent hold. USAID and Winrock's involvement tions to administer (MACH 2007:vi). Without their continued over 9 years is exemplary for its dedication but also as an object operation and support, the survival of the Resource User lesson. The World Bank has observed that the single most important Groups--which have helped to lift thousands of people out of factor in the lack of success in community development projects has severe poverty--would be in jeopardy. been the absence of a long-term commitment by donors. As described earlier, the vertical networking between community institutions and local government at union (local Sustainably-managed resources have limits. Such resources can council) and upazila (subdistrict) level has also played an essen- only provide so much economic benefit; the expanding needs of growing tial role on several fronts: providing a forum for citizens' voices, populations have to be accommodated. MACH developed an alternative fostering better local government understanding of wetland livelihoods program from the start to help create other options for problems, and rooting the MACH institutions in existing gover- economic growth for community members, thus avoiding the destruc- nance structures. tive consequences of overfishing. Villagers were exposed to a variety of This has been achieved most obviously through the cross- potential livelihoods and offered appropriate training. memberships of poor people in Federations of Resource User Accommodate and include women. The alternative livelihoods Groups, Resource Management Organizations, and Upazila program was embraced by the women in the communities, traditionally Fisheries Committees. But it has also involved contacts made by excluded from male-dominated fishing. Engaging women in such enter- RMO leaders and MACH staff with elected local councilors and prises can increase the social capital of a community and hasten its with upazila officers working in fisheries, agriculture, livestock exit from extreme poverty. Microfinance efforts in these communities management, engineering, and social welfare, whose services have have also engaged and empowered women, by giving them an impor- been tapped to assist the community institutions (MACH 2003:xi). tant new role in family finances. Local government is important. The MACH program, while establish- Political Scale-Up ing several new organizations--RMOs, RUGs--that aided the The measurable success of MACH's community-led recipe for restoration and management of the inland fisheries, made sure such reviving wetlands (and of other similar projects in Bangladesh groups were not seen as a threat to local governance structures already and the region) has prompted Dhaka to embrace this approach in place. The legitimacy of local government is critical to continued for all inland waters. In January 2006 the Ministry of Fisheries social stability even as efforts like MACH bring about significant and Livestock approved a new Inland Capture Fisheries Strategy change in livelihoods in a community. that adopted key MACH components, namely: I Co-management of wetlands and fisheries through Upazila Fisheries Committees and community-based organizations; awarding of long-term wetland leases to the latter, for nominal space for new settlements (Whitford et al. 2006:13). Nevertheless, payments, provided they adopted conservation-based plans they shelter many threatened and important species, including and practices. tigers, elephants, and gibbons, and provide livelihoods and food for around 1 million people. The Co-management of Tropical I Promotion of the best practices pioneered by MACH Forest Resources in Bangladesh project, known as Nishorgo, has communities, including sanctuaries, restricted fishing seasons, set up fledgling stakeholder co-management councils and and excavations. committees at community and forest ecosystem level in five I Alternative income programs for the poorest fishers, although wildlife-rich areas covering 23,000 ha. If it proves effective, the without specified funding sources (Deppert 2006b:3). new governance system, a bilateral initiative of USAID and the Ministry of Environment and Forests, will be replicated across all If implemented, the strategy would eventually bring some 4 million 19 protected forests in the country (MACH 2006:13, 18­21). ha of seasonal floodplains and about 12,000 government-owned 124 F I S H E R I E S F O R T H E F U T U R E year-round water bodies--lakes, marshes, rivers, and estuaries-- I Train community organization representatives in record- under community-led control. At a higher policy level, MACH's keeping, budget preparation, revenue-raising, and preparation community-led approach has also been broadly endorsed in the of resource management plans. government's latest Poverty Reduction Strategy Paper, which I At a national policy level, involve all relevant agencies, including describes floodplain fisheries as having "particular significance those responsible for land management, fisheries, environment, for poverty reduction goals" (MACH 2007:47­48). agriculture, and water resources (Sultana 2006b:6). Putting these paper commitments into practice, however, will require major infusions of political will and public money. Azharul Mazumder, Environment Team Leader of USAID/ Key lessons for successful regional or national scale-up identi- Bangladesh, is confident that sustainable co-management of fied by the MACH partners themselves form a daunting to-do floodplain fisheries can work for poor communities. But he is list, including: under no illusions as to the scale of the task ahead. "Doing I Provide all community resource management organizations with business as usual will hardly do the trick," he says. To muster the endowment funds and wetland leases for at least 10 years. required political will, "critical wetland habitats should be I declared protected areas and brought under an ecosystem-based Mandate local government to step up support and services for protected area management system. This will require a mindset community institutions and to hold themselves accountable to change among the policymakers and an institutional change in citizens for results. the way relevant agencies perform management functions" I Develop criteria and systems for regular reviews of community (Mazumder 2006). institution activities, to be jointly conducted by local govern- The MACH program and similar projects have provided a ment and citizens. promising national road map for protecting natural resources I while enhancing livelihoods. Policymakers in both developing Facilitate the sharing of best practices among community and donor countries will be watching closely to see whether these organizations and with government agencies. efforts will be successfully replicated in the years ahead. 125 GREEN LIVELIHOODS Community Forestry Enterprises in Guatemala G UATEMALA'S NORTHERNMOST REGION, EL PETÉN, HOSTS A UNIQUE BLEND of natural beauty, biological diversity, and archeological heritage dating back to ancient Mayan civilization. The Petén's 33,000 km˛ of relatively undisturbed lowland tropical forests shelter 95 species of mammals, among them spider monkeys, pumas, and threatened jaguars, and 400 species of birds, including the iconic scarlet macaw (WCS 2006). The region is also home to an expanding melting pot of Guatemalan citizens: indigenous descen- dants of the Mayans, political refugees who sought refuge during 20 years of civil war, and economic migrants from the country's overpopulated cities and degraded highlands (Pool et al. 2002:92). A decade ago, deforestation had diminished biodiversity and By 2000, the forest concessions in the reserve managed by threatened forest-based livelihoods in the region. But the north- these community enterprises had become the world's largest ern Petén is now the setting for successful community-run tract of sustainably certified and community-managed forest forestry enterprises whose sustainably harvested wood and (Chemonics and IRG 2000:A-IV-8). Prior to 2004, 10 enterprises non-timber forest products (NTFPs) are attracting the attention had met the international certification standard of the Forest of overseas buyers. Stewardship Council (FSC) for sustainably harvested wood, and Under the supervision of non-governmental organizations several were selling high-income finished products such as (NGOs), donors, and government agencies, community-owned decking and floor panels in addition to timber (Chemonics forestry enterprises steward more than 420,000 ha in the multi- 2006:17; Rainforest Alliance 2007b:2-3). ple use zone of the renowned Maya Biosphere Reserve (MBR) This transformation of fragmented communities of farmers (Chemonics 2006:16). These enterprises are each in charge of and illegal loggers into eco-entrepreneurs did not occur in a one distinct parcel of land ­ a concession - that the Guatemalan policy vacuum. Government decentralization policies, which government has leased to them. Forest product sales from these awarded communities tenure rights and resource management enterprises have brought new employment, infrastructure, social responsibilities, provided an enabling environment and motiva- cohesion, and income. tion for communities to protect their forests. Substantial Between October 2006 and September 2007, the conces- assistance from donors and intermediary support organizations sions produced some US$4.75 million in certified timber sales provided the funds and the technical expertise to make the and close to US$150,000 in sales of xate (palm leaves used for concession model work. flower arrangements) and other non-timber forest products Progress toward financial and organizational independ- (Rainforest Alliance 2007a:1; Nittler 2007). Under village ence has been slow and sometimes challenging, and the management, biodiversity has flourished and forest fires, illegal community enterprises are not all assured of a long-term logging, and hunting have declined dramatically, while continu- future. The more successful ones now show signs of increased ing unabated in neighbouring national parks (Nittler and resilience. The overall results have proved promising enough Tschinkel 2005:3; Chemonics and IRG 2000: A-IV-8). for policymakers to consider scaling up the effort across the 126 G R E E N L I V E L I H O O D S region. Already, communities in Honduras are replicating the administer and regulate activity within Guatemala's System of concession model, while government agencies from Protected Areas (Chemonics 2006:5). A year later, with the Nicaragua, Panama, and Peru have hired members of Petén's approval from the international environmental community, the community-owned enterprises as consultants in sustainable Congress of Guatemala designated 2.1 million ha in the north- forest management (Chemonics 2006:41). ern Petén as the Maya Biosphere Reserve (Nittler and Tschinkel 2005:2). Of this, 767,000 ha were designated "core zones" where all extractive activity was banned; 848,440 ha became a "multiple use zone" for sustainable harvesting activities. The From Conflict to Conservation: remaining 497,500 ha made up a surrounding buffer zone with a mix of state-owned and private lands (Stoian and Rodas A New Forestry Approach 2006a:1). The United States Agency for International Develop- ment (USAID) signed an agreement with Guatemala's Twenty years ago, the region's future looked far less promis- government to conserve biodiversity and improve management ing. Harvesting of non-timber forest products such as chicle within the Maya Biosphere Reserve, donating about US$10.5 (used to make chewing gum) had been the mainstay of the million in the first 10 years. An additional US$11.9 million was local economy for decades and had left the bulk of the forest contributed by the government of Guatemala and interna- relatively untouched (Chemonics 2006:5). But during the tional NGOs (Pool et al. 2002:E-4). 1980s huge areas were haphazardly cleared as population growth and economic pressures fuelled illegal logging and burning of forests to make way for crops and cattle (Chemon- ics 2006:5). Illegal land use among new and long-term Communities Take Over residents in and around the reserve was also abetted by lack of land tenure, endemic corruption, and the absence of law CONAP's initial efforts to carry out its mandate to protect the enforcement (Pool et al. 2002:E-4). reserve concentrated on battling illegal deforestation in its two By the end of the 1980s foreign donors, particularly the designated national parks--Sierra de Lacandón and Laguna del United States and Germany, were pressuring the Guatemalan Tigre--and on slowing agricultural clearing in the Buffer Zone government to slow the destruction of this key section of the (Chemonics 2006:6). chain of Mayan forest running through Central America Assisted by local and international NGOs, the new agency (Nittler and Tschinkel 2005:2). emphasized centralized control and enforcement, which alien- In response, a new national agency, the National Council ated local communities. Local loggers unwilling to abide by of Protected Areas (CONAP) was established in 1989 to restrictions attached to CONAP's permits were legally barred from harvesting timber, but the overstretched agency was unable to enforce these bans. Illegal felling and land occupation contin- ued unabated despite the introduction of park guards and checkpoints, measures that angered some members of the local population. CONAP offices were burned, and one official was murdered (Pool et al. 2002:10). Estimates suggested that for every cubic meter of cedar or mahogany cut legally in the region, three meters were illegally felled (Pool et al. 2002: E-2). Intensifying the ecological crisis, the 1992 ceasefire in Guatemala's civil war and subsequent Peace Accords in 1996 prompted returnees from Mexico and other areas of Guatemala to settle in parts of the Petén that had been declared protected parks (Nittler and Tschinkel 2005: 2,5). By 1994, it was clear that CONAP's punitive approach was not working. As the situation grew increasingly chaotic, a group of concerned foresters proposed awarding communities harvest- ing rights in the multiple use zone, thus fostering their self-interest in the reserve's success. Backed by national NGOs, their idea soon won support from USAID and the Guatemalan government (Nittler and Tschinkel 2005:3). Since there was no model for sustainable use of mixed tropical forests in Guatemala, one forestry consultant prepared a management plan for the first concession--a 4,800-ha parcel of 127 W O R L D R E S O U R C E S 2 0 0 8 forest allocated to a newly constituted legal organization estab- COMMUNITY FORESTRY ENTERPRISES: lished by the villagers of San Miguel la Palotada. Another KEY ACHIEVEMENTS consultant proposed how a larger concession scheme might Building Environmental Capital operate, and a local lawyer translated these concepts into draft ICommunity harvesting rights were conditional on sustainable forestry regulations and a prototype contract between CONAP and the practices; only 0.8­2.4 trees felled per ha (Nittler and Tschinkel community organization (Nittler and Tschinkel 2005:3­4). "We 2005:17). used the considerable experience on concessions from around the world, especially a study on those in Africa by the World IAs of 2008, 9 community concessions, 2 industrial concessions, and Bank," recalls Henry Tschinkel, part of the founding group and 1 cooperative - managing about 480,000 ha in total - maintained a former Regional Forestry Adviser for USAID (Tschinkel 2008). certification by the Forest Stewardship Council (Hughell and In 1994, these legal documents were approved by CONAP's Butterfield 2008:6). board and the first concession was allocated (Nittler and IAnnual forest clearance rates within certified concessions fell sharply Tschinkel 2005:4). This mechanism opened the floodgates for to only 0.04 percent of tree cover, one twentieth of the clearance rate in other local communities and industries to apply for legal rights to neighboring protected areas; squatting by settlers and illegal logging sustainably manage forests under 25-year contracts (Nittler and also declined (Hughell and Butterfield 2008:9). Tschinkel 2005:3). By September 2006, 11 more concessions were in the hands of communities and 2 more were run by local IDiversity of birds, animals, and insects has been maintained or timber companies, placing the management of most of the enhanced (Balas 2004 and Radachowsky 2004 as cited in Nittler and multiple use zone in local hands (Pool et al. 2002:E-2). In its Tschinkel 2005:17). effort to slow deforestation in the buffer zone, CONAP has also Building Economic Capital developed a mechanism to support communities in the buffer IMore than 10,000 people directly benefit from forest concessions and that sustainably manage their private land (Chemonics and IRG 60,000 receive indirect benefits. Concession employees receive more 2000:A-IV-5). As of 2006, there were four such cooperatives in than double the regional minimum wage (Saito 2008). operation (Stoian and Rodas 2006a:2). In the early years, most community-harvested timber-- ITrade in timber reached US$4.7 million in 2007, with 2.6 million board primarily high-value mahogany and tropical cedar--was sold as feet sold. Sales of non-timber forest products further boosted income logs to local forest industries, often on unfavorable terms. But as from concessions (Rainforest Alliance 2007a:1). the enterprises matured they began to cooperate across commu- IBy 2006, a total of 6,839 members of community enterprises had nities, strengthening their negotiating power. In 1999, the early received intensive training in forestry and business management and community forestry enterprises, the legally consituted entities in technical skills (Chemonics 2006:8). that held each forest concession (known as EFCs), formed an umbrella association, the Asociación de Comunidades Forestales IEnvironmental services payments to communities for avoided defor- del Petén (ACOFOP), which lobbied CONAP and donors on the estation and carbon sequestration are under negotiation (Rainforest concessions' behalf, giving member communities the capacity to Alliance 2007b:3). sell products jointly and generally defend their interests Building Social Capital (Chemonics and IRG 2000:A-IV-10). ICommunities received legal rights to manage and harvest forests and As their skills and confidence grew, the community forestry security of tenure via 25-year management leases (Nittler and enterprises added value to their product by diversifying into Tschinkel 2005:3). wood processing, using the proceeds from selling standing timber to buy chainsaws and later small sawmills (Nittler 2008). Ten INew local NGOs were established to assist communities, strengthening enterprises took another step toward diversification and civil society (Nittler and Tschinkel 2005:11­12). independence in 2003 by setting up FORESCOM, a collective IEFCs established an umbrella association and a forest products forest products company. Initially funded by USAID, company, FORESCOM, thereby extending their influence and sales reach FORESCOM helped its concession members to make the leap (Nittler and Tschinkel 2005:10). from donor subsidy to profitability by providing affordable forest certification services and identifying new markets for timber and IA share of the revenue from forest products was used for community other products (Chemonics 2003:21; Nittler and Tshinkel projects such as installing water supply systems and paying school 2005:1; Chemonics 2006:13­14). fees (Rainforest Alliance 2007b:3). By 2007, with some residual training from intermediaries and government agencies, a majority of enterprises were genuine, profit-making businesses, reaching markets in Mexico, the United States, and Europe (Rainforest Alliance 2007a:1). 128 G R E E N L I V E L I H O O D S parcels of land to be ready for a second harvest, thus creating community self-interest in practicing sustainable forestry management (Tschinkel 2008). It was also long enough for communities to envisage building healthy businesses, especially with significant donor subsidies. The forest area in the concessions ranges consider- ably in size from 4,800 to 72,500 ha (Chemonics and IRG 2000:A-iv-7). In a rush to get the concession program established as soon as possi- ble, their borders were drawn on the basis of lobbying by The Concession Model: An Evolving communities and NGOs and of proximity to the park's protected core zones, rather than by the presence and distribution of high- Blueprint for Sustainable Enterprise value tree species. As a result, some of the early community enterprises struggled to extract enough valuable trees from the As the concession initiative originated from foresters and as the small concessions they had been allocated to support a viable enabling regulations were rushed through by CONAP against business (Nittler and Tschinkel 2005:4­5). By the late 1990s, due in a backdrop of donor pressure, communities living in the multi- part to lobbying from the newly formed EFC umbrella organiza- ple use and buffer zones were not widely consulted at the start. tion, ACOFOP, this problem was rectified for later concessions as As a result, they were initially wary of seeking concessions, with the national parks agency began awarding larger concessions with three years passing until a second community sought and greater commercial promise (Chemonics and IRG 2000:A-iv-8). received a contract in 1997 (Nittler and Tschinkel 2005:2). Each concession was allocated to a legally constituted organ- After that, as the benefits of forest harvesting rights became ization--the community forestry enterprises. Every adult resident apparent, "communities were suddenly standing in line," of the founding community was free to join, although in many according to Henry Tschinkel (Tschinkel 2007). communities, few villagers initially signed up due to concerns As only six small communities inhabited the densely about the responsibilities involved (Tschinkel 2007). Early forested multiple use zone--not enough to manage half a memberships ranged from 29 to 372 and included residents of up million hectares of land--the remaining concessions were to nine villages (Chemonics and IRG 2000:A-IV-11). granted to groups of villages in the adjoining buffer zone. The Once CONAP approved an EFC's five-year sustainable disadvantage of this was that seven of the communities had forest management plan, that plan became part of the legal stronger backgrounds in farming than forestry and faced a steep contract between the enterprise and the national parks agency. learning curve for their new trade (Chemonics and IRG EFCs were then legally empowered to harvest and sell timber 2000:III-6-8). Two additional concessions were awarded to local from their concession, in accordance with each management timber companies, despite opposition from conservation NGOs, plan's conditions. They were also required to submit annual on the condition that their operations achieve certification under operating plans for CONAP's approval, detailing the species and International Forest Stewardship Council guidelines within three volume to be cut (Chemonics and IRG 2000:II-12; Tschinkel years (Saito 2008). Unable to clear timber and then move on as 2008). Enterprises were legally empowered to harvest not only in the past, these industrial concessions quickly became converts valuable tree species, such as mahogany, but also non-timber to sustainable forestry practices and formed alliances with forest products, including chicle, allspice, and xate palm leaves community enterprises, buying their wood for processing and (Chemonics 2003:23). sale (Chemonics 2006:16). Crucially, the fledgling EFCs were also required by USAID Although the multiple use zone remained government and CONAP to achieve certification under international property, the concession contracts granted usufruct rights to legally sustainable forestry standards within three years in order to constituted community organizations for 25 years, with an option qualify for continued donor assistance (Chemonics and IRG for renewal (Nittler and Tschinkel 2005:3; Stoian and Rodas 2000:A-iv-12). To help them achieve this, the regulations for 2006a:15). This was estimated as the time needed for the first allocating a concession required that a qualified NGO assume 129 W O R L D R E S O U R C E S 2 0 0 8 considerable technical and financial responsibility over the Promoting Conservation and Commerce: ARBOL VERDE: businesses and that directors and governing boards be elected ANATOMY OF A COMMUNITY FORESTRY ENTERPRISE for each enterprise (Nittler and Tschinkel 2005:11, 8). One of the most successful community forestry enterprises is Arbol Despite early suspicions about CONAP's intentions, these Verde, which manages a 64,973-ha concession producing timber and new tenure rights, combined with the desire to tap into growing sawn wood for domestic, Caribbean, and Mexican markets and runs donor assistance and to develop new livelihoods, created a a side operation in ecotourism. Certified in 2002, it has the biggest powerful incentive among communities to bid for concessions membership of any concession (345) people and its organizational and abide by the conditions set. and governance structure typifies how most enterprises have evolved. The concession holders pledged to assume a completely The administrator and board of directors, elected every two years, new role, transforming themselves from illegal loggers, farmers, operate a sawmill, hotel, and restaurant in addition to managing the and immigrants into natural resource stewards. forest. In 2006, some 30 people were employed in seasonal timber Even with considerable assistance, it took several years for these jobs, 10 people worked in sawmilling, and 19 were in administration, disparate and often fragmented communities to develop the forest management, and patrols and tourism (Chemonics 2006:10; good governance and resource management practices required Molnar et al. 2007:44). to fulfill their contracts (Chemonics 2006:39-40). By December 2000, however, consultants reported to USAID that enterprise members "fully understood" that their economic sustenance depended on a well-managed forest, and they demonstrated this by "their availability for...unpaid jobs and their enthusiasm for learning the technical aspects of the operations" (Chemonics and IRG 2000:A-IV-9-10). It also took time for mistrust of government agencies to abate. But as the early EFCs began to earn income from timber, the perception of CONAP and its NGO partners held by local residents gradually evolved from that of adversary to one of an ally. The result was a marked reduction of tension in the region (Pool et al. 2002:10). By the end of 1999, CONAP had signed 12 concession contracts covering almost the entire multiple use zone, with 355,000 ha under community management and an additional 132,215 ha managed by the two industrial concessions. Nearly 92,000 ha of the community concessions had been certified to international FSC standards, the largest tract of natural forest under community management in the world at that time (Chemonics and IRG 2000: A-IV-7-8). Source: Molnar 2006: 167-8 MAYA BIOSPHERE COMMUNITY CONCESSIONS, 2005 Legal Status Community Forest Enterprise Members Area Under Management (Ha) Community Concessions La Pasadita 121 18, 817 San Miguel La Palotada 53 7,039 Cruce a la Colorada 60 20,496 La Colorada 50 22,067 San Andrés (AFISAP) 176 51,940 Cooperativa Carmelita 124 53,797 Uaxactun (OMYC) 285 83,558 Arbol Verde 345 64,973 Impulsores Suchitecos 27 12,218 Laborantes del Bosque 95 19,390 Custudios de las Selva 96 21,176 El Esfuerzo 40 25,386 Industrial Concessions Paxbán 65,755 La Gloria 66,460 130 Intermediaries Help Build Necessary Skills additional representation for the Petén's isolated forest commu- nities and increasing their social resilience. The efforts of these early intermediaries, both international Given that most EFC members were poorly educated and few and local, were essential in making the concessions a reality. had either organizational or business management experience, Working with farmers and loggers for whom forestry simply outside assistance was critical. This role was filled by local and meant felling trees, their expertise in conservation policy and international NGOs funded by donors, primarily USAID but sustainable land management helped to foster conservation also the UK Department for International Development and awareness and pride among local populations as well as to teach others. In the early years, international environmental NGOs sustainable forestry practices. As a result, the young EFCs including Conservation International, Centro Agrónomico exceeded expectations in making the transition to sustainable Tropical de Investigación y Enseńanza (CATIE), The Nature forestry management. In December 2000, a review of USAID's Conservancy, CARE, Rodale Institute, and the Wildlife Conser- efforts to preserve the Maya Biosphere Reserve by the develop- vation Society provided technical assistance geared mainly to ment consultancy Chemonics International described the forest protection (Saito 2008). These organizations had lobbied concessions in the multiple use zone as a "stroke of genius" that strongly for the creation of the Maya Biosphere Reserve and had "provided the most sustainable aspects of the program" were heavily invested in its success. (Chemonics and IRG 2000:III-5). Working on the basis of Cooperative Agreements and However, the same review highlighted the urgent need for Letters of Implementation with USAID, these NGOs developed the EFCs to become viable businesses in addition to successful monitoring tools, performed environmental impact assessments, forestry stewards. Generous subsidies by USAID and others had fostered conservation awareness, and helped enterprises achieve enabled the enterprises to make profits from timber sales in their forest certification. Each international group also worked first few years without putting sound business practices in place. through local NGOs, whose personnel helped the fledgling But this state of affairs was not sustainable over the long term, enterprises establish basic self-governance procedures and and the review authors advised USAID that the conservation provided basic training for elected officers in organizational NGOs assisting the EFCs lacked the business, marketing, and management, record-keeping, accounting, and strategic management capabilities that were now required (Chemonics planning (Chemonics and IRG 2000:II-8-9). and IRG 2000:A-IV-24). Three entirely new local environmental NGOs--ProPetén, The consultants also raised two other red flags. They Centro Mayo, and Nature for Life--were created to implement warned that governance failings of enterprises and turf wars USAID-funded activities across the Maya Biosphere Reserve, in among the many NGOs advising them were delaying progress itself a major achievement (Chemonics and IRG 2000:II-9). and preventing lessons from being shared (Chemonics and IRG Only one of these, Nature for Life, worked directly with the 2000:III-5-6). And they concluded that the free technical assis- community enterprises, under the direction of CATIE and with tance to EFCs had "served to develop an unsustainable support from The Nature Conservancy (Chemonics and IRG dependency of the communities on the subsidy and a specific 2000:A-VI-1-2). Yet all three groups have flourished, providing NGO" (Chemonics and IRG 2000:A-IV-24). 131 A Second Start despite contractual requirements that all adults be allowed to These important early lessons caused USAID to streamline its join. While concession statutes generally required some invest- Petén operations and channel all assistance through Chemonics ment in community-wide projects, these were often ignored, International to local NGOs, thus strengthening local institutions further alienating the wider community (Chemonics and IRG (Chemonics 2006:1; Tschinkel 2007). CONAP also adapted the 2000:A-IV-17; Nittler and Tschinkel 2005:8). Communities' lack rules governing concession management to require that a qualified of understanding of how to run a good business also resulted in "forestry supervisor" should provide technical supervision, rather an insistence that new boards of directors and treasurers be than specifically an NGO, enabling EFCs to work with more elected every year, adding to the organizational disarray specialized advisers such as professional foresters (Saito 2008). (Chemonics and IRG 2000:A-IV-17). From 2002 to March 2006, Chemonics staff worked with Chemonics took a three-pronged approach to developing local NGOs to improve the community enterprises' internal the EFCs into viable businesses. First, it helped them to revise statutes and financial practices, teach technical forestry skills to regulations along more effective, transparent, and equitable lines improve cost effectiveness, and develop timber processing and (Chemonics 2003:16). Second, it filled the skills void by focusing marketing outlets (Chemonics 2006:1). on intensive training and sales and marketing support. By 2006, The most difficult problems Chemonics faced was tackling some 6,839 enterprise members had participated in training elite capture, corruption, and poor management within some of courses and technical assistance events teaching entrepreneurial the community organizations. Institutional corruption remains a skills, including business and finance administration, tax and serious problem throughout Guatemala, and the new commu- labor laws, banking and credit access, budgeting, sales manage- nity organizations proved no exception. Making matters worse, ment, and accounting (Chemonics 2006:8, 19­24). Third, EFCs the governance conditions required by USAID and the imple- were helped to develop five-year strategic business plans, menting NGOs had often been nominally met by communities weaning them off a year-to-year boom-and-bust approach to in the rush to get enterprises going (Tschinkel 2007). doing business (Chemonics 2006:8). As a result, decision-making over timber management and To fulfill its marketing mandate, Chemonics also subcon- sales and financial power were often concentrated among a few tracted SmartWood, the certification program run by the U.S. individuals, usually the board of directors, with little involvement nonprofit Rainforest Alliance, to certify the outstanding conces- of the wider membership. Some enterprises also refused sions so they could better tap into the growing global market in membership to residents who had opted out in the early days, sustainable timber (Chemonics 2006:8). In addition, Chemonics' 132 G R E E N L I V E L I H O O D S place after Chemonics arrived," recalled John Nittler, a vice- ENTERPRISING WOMEN: A WORK IN PROGRESS president of Chemonics International who helped oversee the program. "In the early years...a dependency was created that Among rural Guatemalans, forestry is traditional male territory, a remains very hard to overcome" (Nittler 2007). cultural mindset that impeded early efforts to involve women in the Since 2006, the Rainforest Alliance and government community enterprises. In some cases, male leaders argued that agencies working with the enterprises have sought to foster forestry management tasks involved physical labor unsuitable for independence with a "learning through doing" approach women; in others, wives and daughters were refused membership of (Rainforest Alliance 2007b:2). This provides on-the-job (rather EFCs granted to their husbands and fathers (Monterroso 2002:1). than theoretical) training in the production, processing, packag- Early NGO training programs also failed to emphasize women's rights. In ing, and sale of new processed timber and NTFPs. CONAP's 2002 only about 15 percent of EFC members were female, with their requirement that all concessions hire a forestry specialist as tasks mostly limited to harvesting non-timber forest products, including technical supervisor has also helped to professionalize EFCs, as berries, xate, and wicker for baskets (Monterroso 2002:1). But address- has a recent requirement by the SmartWood certifiers that ing this gender gap became a major focus of training programs concession governing boards must retain some members for implemented by Chemonics International, and by 2006 eight EFCs had more than one term of office (Saito 2008; Carrera 2007). set up commissions to promote gender equity and appointed at least By late 2007, these strategies appeared to be paying off, one woman to their Board of Directors (Chemonics 2006:18). with 8 of the 12 community enterprises functioning as self- sufficient businesses and facing prosperous futures after USAID Chemonics and local NGOs also held workshops to enhance village subsidies end (Carrera 2007). women's self-esteem and provided day care services to boost their participation in EFC meetings. Practical job training and marketing assistance for non-timber products, such as handicrafts and tourism guiding, were also focused increasingly on women (Chemonics 2006:18­19). Conservation Dividend: Preserving Forests, Protecting Livelihoods technical support staff supported the establishment of While community forestry enterprises have been slow in gaining FORESCOM as an umbrella forest products company and organizational independence, they proved to be skillful in forestry drafted its bylaws. FORESCOM began operations in January stewardship. Aware of the link between sustainable forest manage- 2004 and took over certification of its member concessions in ment and the income potential of their new venture, virtually 2005. This centralized process for certification cut community every EFC established a low-impact approach to harvesting both costs significantly, enabling EFCs to pay for certification and timber and non-timber forest products, based on a few common technical assistance without donor subsidies for the first time ground rules (Chemonics and IRG 2000:A-IV-9­10). (Chemonics 2006:2, 8). Ecologically fragile areas and those high in biodiversity were In March 2006, the second phase of USAID-funded inter- left alone. Elsewhere, harvest management cycles of 25 years were mediary assistance ended and Chemonics withdrew. In a established, with one of 25 blocks of forest to be harvested each natural progression toward making the EFCs viable businesses, year, allowing 24 years for regrowth. Each EFC also prepared Chemonics was succeeded by a scaled-down USAID program annual operational plans, based on a census of individual trees in targeted specifically toward diversifying wood and non-timber the block to be harvested, which were approved by CONAP products from the concessions and expanding their markets. officials (Nittler and Tschinkel 2005:14­15, 11). On average, only The long-term viability of the concessions depends on the 0.8­2.4 trees per ha have been harvested, due in part to a lack of success of this three-year, US$2-million phase, which is commercial species of sufficient size (Tschinkel 2008). managed by the Rainforest Alliance and will end in August The 25-year plans included detailed maps, some enhanced 2009 (Rainforest Alliance 2007b:1). with satellite images and aerial photography, showing concession boundaries, vegetation and forest types, and fragile and archeolog- The Paternalism Trap ical sites in need of particular protection. Most highlighted 15­20 By August 2009, the US government's aid agency will have spent "commercial" tree species, although until recent years almost all more than US$11 million on the Petén community forestry the wood felled was mahogany or tropical cedar (Nittler and enterprises project alone (Nittler and Tschinkel 2005:12; Tschinkel 2005:14). This detailed planning also enabled logging Rainforest Alliance 2007b:1). While the many intermediaries roads to be cut efficiently, minimizing ecological impact. working with the EFCs have helped them become both effective Early fears voiced by some environmental NGOs that any stewards and successful businesses, the scale of support also felling activity could harm biodiversity soon proved ground- fostered a culture of donor dependency that has proved difficult less (Chemonics 2006:37). As one biological monitoring team to break (Tschinkel 2007). "Self-sufficiency goals were only put in reported in 2002: "At current extraction levels (0.8­2.4 trees/ha), 133 W O R L D R E S O U R C E S 2 0 0 8 the ecological impacts of timber extraction are minimal. Modest Reserve's multiple use zone, which contains the concessions; changes in the community structures of birds, beetles, diurnal illegal deforestation continues in the core zones where devel- butterflies, and game species suggest that current logging opment is banned (Chemonics 2003:10­11). From 2002 to practices do not preclude any species from logged areas, but 2007, this trend accelerated, with the average annual defor- rather increase species richness by augmenting habitat hetero- estation rate in the reserve's national parks (0.79 percent of geneity" (Balas 2004 and Radachowsky 2004 as cited in Nittler land area) 20 times higher than that in the FSC-certified and Tschinkel 2005:17). concessions (0.04 percent of land area) (Hughell and Butter- Giving local communities an economic stake in the forest field 2008:10). The MBR's protected areas also suffer more around them has also proved a highly effective driver in wildfires, often set by farmers or illegal settlers, than the curbing illegal activity in the Maya Biosphere Reserve (Saito neighboring concessions. Since 1998, between 7 percent and 2008). To protect their capital investment, the 1,500 members 20 percent of forest cover in the Maya Biosphere Reserve has of the 12 community forestry enterprises have invested time, burned annually, while in FSC-certified concessions the figure personnel, and money into patrolling and safeguarding their has fallen steadily from 6.3 percent in 1998, when concessions concessions. Every year the EFCs jointly invest around were first established, to 0.1 percent in 2007 (Hughell and US$150,000 in forest surveillance and fire control measures. Butterfield 2008:1­2). Members patrol concession borders; they report fires, illegal CONAP's requirement that EFCs achieve Forest logging, and new settlements; and they are compensated for Stewardship Council certification within three years of signing their time from timber sale revenues (Chemonics 2006:37). a concession contract also contributed to the speed with which "Our secret is that we have more than 150 people working in communities adopted effective forest management and this forest, collecting palm leaves, chicle and allspice, and if surveillance practices (Chemonics 2003: 26). By 2008, all one of them sees anything happening that shouldn't be, they 12 community enterprises and both industrial concessions had report it to us and we send a delegation to that area immedi- achieved FSC status at some point, and 479,500 ha of forest ately," says Benedin Garcia, founder member of the was currently certified (Hughell and Butterfield 2008:6). community organization that manages the Uaxactun conces- While the Petén population's willingness to harvest sion (Rainforest Alliance 2007b:3). sustainably depends on a continuing flow of economic benefits, The impact of community self-interest and investment in they have laid the groundwork to preserve their forests for the preserving the forests under their control has been dramatic. As indefinite future. As observers Nittler and Tschinkel reported in early as 2000, deforestation fell sharply in the Maya Biosphere 2005: "In general the forest management and operational plans have evolved to a level of sophistication which, if followed, is almost certain to assure the sustained management and long- ANNUAL DEFORESTATION RATE BEFORE AND AFTER 2002 term conservation of the forest" (Nittler and Tschinkel 2005:15). This is particularly impressive given that tens of Land class 1986 to 2001 2002 to 2007 millions of dollars have failed to halt deforestation in other parts of the Maya Biosphere Reserve and the wider network of Core protected areas 0.26% 0.79% Central American parks to which it belongs. FSC certified concessions 0.01% 0.04% in multiple use zone Remainder of multiple use zone 0.31% 0.86% Buffer zone 1.91% 2.20% Entire MBR 0.52% 0.88% Community Dividends: Source: Hughell and Butterfield 2008:10 Jobs, Income, Infrastructure PERCENTAGE OF AREA BURNED IN EACH LAND USE ZONE The success of Guatemala's community forestry enterprises is BY YEAR reflected in growing income and employment among the desperately poor villages scattered through the remote northern Land Use Zone 1998 2003 2005 2007 forests and lowlands. By 2003, the 12 community enterprises Core protected areas 23.6% 26.0% 29.6% 10.4% were generating an estimated US$5 million per year in timber FSC/RA certified concessions 6.3% 1.8% 0.1% 0.1% sales, while forestry operations generated an estimated 51,309 in multiple use zone person-days of work, worth US$359,490 in wages (Nittler and Remainder of multiple use zone 21.9% 21.3% 12.9% 5.0% Tschinkel 2005:21). By September 2007, approximately 7,300 Buffer zone 23.9% 23.5% 19.6% 10.3% people were employed either seasonally or year-round by the Overall MBR (%) 19.5% 19.1% 18.0% 7.2% enterprises and FORESCOM (Carrera 2008). Overall MBR (ha) 404,632 398,280 375,149 149,424 Typically, half the wood harvested is highly prized Source: Hughell and Butterfield 2008:1­2 mahogany, sold mostly to local timber companies that export 134 G R E E N L I V E L I H O O D S it to the United States. Another valuable species, Santa Improving Quality of Life Maria, is sold for export to Mexico, while other native timber such as Spanish cedar finds ready local markets (Nittler and While not all enterprises have fulfilled their own regulations on Tschinkel 2005:17­18). benefit-sharing with the wider community, most have invested in Enterprise members enjoy distinct advantages over their much-needed local infrastructure and services. In the early years, neighbors. They earn an estimated average of US$1,140 during for example, Unión Maya Itzá purchased two buses and a truck the two to three months when full time work is available for for community use; Carmelita built a bridge, San Miguel harvesting and processing within the concessions (Chemonics installed a potable water system, and La Pasadita built a dispen- 2003: 6). The rest of the year they typically take other jobs, such sary (Chemonics and IRG 2000:A-IV-14­15). as working on farms or ranches, although some members work More recently, several enterprises have provided social year-round on the concessions, processing timber and harvest- services that are transforming poor families' quality of life and ing and processing non-timber products. young people's prospects. For example, the Conservation and Annual household incomes outside concessions can be Management Organization that manages the Uaxactun conces- as low as US$1,200 a year, the same amount that the sion operates an emergency fund that the town's poorest families average employed concession member earns in two to three can draw on for medical care. It also pays several high school months (Chemonics 2003:6). Not only do enterprises teachers salaries and funds computer classes for 22 students in typically pay a higher day rate than the regional prevailing the provincial capital. "We invest in education because we want wage, but some also pay members an annual dividend the next generation to be well-trained and capable of defending (Chemonics and IRG 2000:A-IV-14). our interests," says the organization's board secretary, Flori- As their income and business acumen has grown, some dalma Ax (Rainforest Alliance 2007c:2). enterprises have also branched out into ecotourism, independ- ent of donor support, providing additional jobs for local people. Arbol Verde, for example, built a small hotel, while Uaxactun, the gateway to Mayan temple country, has developed tour guide programs and a handicrafts center (Stoian and Rodas 2006b:6; Chemonics 2006:18­19). CARMELITA: A CONCESSION SUCCESS STORY The remote forest town of Carmelita, nestled among Mayan ruins in the 30 permanent jobs in sawmills. More than a third of earnings are ploughed central Petén, was among the first to receive a concession contract from back into community development and improved forestry technology and CONAP, in 1996. With assistance from U.S. non-profit Conservation Inter- management (Stoian and Rodas 2006a:13). national and the Wildlife Conservation Society and later with support from Chemonics and the Rainforest Alliance, it has made productive use of its DAYS OF WAGES PROVIDED BY CARMELITA CONCESSION, 2005 53,798 ha of forest (Nittler 2008; Stoian and Rodas 2006a:2). The 127 Activity Non-Members Members Total members of the cooperative enterprise (56 percent male and 44 percent female) that manages the concession have set aside 20,000 ha for timber Timber extraction 250 2,000 2,250 production and 33,798 ha for harvesting non-timber forest products, Wood processing 1,000 3,000 4,000 primarily xate ornamental palms and chicle gum (Stoian and Rodas Xate collection - - - 400 400 2006a:6). In recent years, the community has offered guided ecotours on Chicle collection - - - 200 200 foot and horseback into neighboring El Mirador park, which is rich in Tourism 50 100 150 archeological sites (Stoian and Rodas 2006a:7). Total 1,300 5,700 7,000 Source: Stoian and Rodas 2006: 13 Despite felling timber on less than 1 percent of their land, enterprise members have significantly increased their income by selling certified The future is not without hazards, as Carmelita's members sometimes have mahogany and NTFPs and by investing in a community sawmill and to fend off encroaching settlers, cattle ranchers from the south, and illegal carpentry shop. Sawn wood from first-class mahogany fetched US$1,781 loggers from the north. But the enterprise has strengthened its prospects per cubic meter in 2006, up from US$742 per cubic meter in 2000 (Molnar by expanding markets and pooling resources with other EFCs by joining et al. 2007:171­172). Since 2003, individual enterprise members have both FORESCOM and a non-timber forest products marketing alliance also reaped an impressive average annual income from sales of xate and (Stoian and Rodas 2006a:5). "Our parents protected this forest for our chicle of around US$2,300 (Chemonics 2003:7). benefit and it is our responsibility to protect it for future generations," says The community forestry enterprise is the largest local employer, providing the enterprise's 23-year-old president Carlos Crasborn (Rainforest Alliance seasonal logging and wild plant harvesting work for about 90 people and 2007b:2; Pool et al. 2002:94). 135 W O R L D R E S O U R C E S 2 0 0 8 Adding Value: operating in 2007, enabling enterprises to directly manufacture Processing and Wood Products finished products for the lucrative international market in certi- fied wood. With assistance from the Rainforest Alliance, FORESCOM secured orders in 2007 for more than 1.5 million In the early years, EFC overreliance on donor subsidies and on board feet of certified wood, worth US$3 million, including high-earning but finite supplies of mahogany raised the specter milled lumber, floorboards, and decking (USAID 2005). The of bankruptcy and subsequent community disillusionment. The plant has already allowed more members of FORESCOM to NGO intermediaries therefore steered the fledgling enterprises take advantage of sales contracts for products like decking and toward capturing greater value from their resource, both by flooring with specialty companies in the United States, the selling more species and by processing timber themselves. Netherlands, and the United Kingdom (Molnar et al. By 2003, eight communities owned portable sawmills, two had 2007:172­173; Rainforest Alliance 2007a:1). invested in carpentry equipment, and 55 percent of the 50,000 work days generated across community forests were spent sawmilling, compared with 29 percent spent harvesting (Nittler and Tschinkel 2005:16, 22; Chemonics 2003:7). A Secondary Harvest: Since 2005, the collective forestry services company, FORESCOM, has taken its member enterprises a further step Non-Timber Forest Products up the economic ladder by expanding markets and developing new products. Building on a marketing strategy developed by The community enterprises have also garnered extra income Chemonics, FORESCOM has successfully established and diversified their business by harvesting and selling non- national and US markets for three lesser-known wood timber forest products (NTFPs). Collecting these products, which species--pucte, Santa Maria, and danto (Chemonics 2006:24; include chicle tree sap, xate palms, and allspice, for sale to Nittler and Tschinkel 2005:17­18). It also won government exporters has been lucrative in the Petén for decades, yielding funding to build an industrial processing plant that began significant income for thousands of families (Chemonics 2006:5; 136 Chemonics and IRG 2000:A-V-2). Historically, NTFP collection has been an individual venture, resulting in little awareness of harvest sustainability and limited marketing power for the producers (IRG 2006:1). A few years after the concessions were awarded, however, NGOs began encouraging sustainable and collective harvesting of these products as a supplement to timber cutting (Pool et al. 2002:15). CONAP was subsequently charged with regulating NTFPs' harvesting and transport (IRG 2006:1-2; Chemonics and IRG 2000:A-V-4). The new focus on NTFPs has paid off for the concession communities. With the assistance of the Rainforest Alliance, more enterprises have improved the management and professional harvesting of wild plants and are exploiting their commercial potential. They are dealing directly with overseas buyers, cutting out the export middlemen, boosting profits, and building relation- ships with customers (Rainforest Alliance 2007c:2). In 2007, Carmelita, Uaxactun, and five other concessions created a joint marketing committee for xate palms to coordinate supply and export routes. With the Rainforest Alliance acting as intermediary, these enterprises are selling between 400 and 600 packages of xate a week to a single buyer, Continental Floral Greens in Houston. From January to September 2007 they grossed US$147,948 in US exports (Carrera 2008). Other new markets include the Adventist Churches of Minnesota, which bought 122,000 palms sourced from the Maya Biosphere Reserve over 12 months in 2006­2007 (Rainforest Alliance 2000a:2). For Palm Sunday 2008, these churches purchased 250,000 palms with a 5 cent premium on each palm (Carrera 2008). To meet the demands of eco-conscious customers, the Xate palms Rainforest Alliance has helped these communities set sustain- able harvesting guidelines for collectors and improve supply and delivery by building two central collection and sorting facilities. While the concessions have encountered problems and With technical assistance, three enterprises--Carmelita, Uaxac- required millions of dollars in support, they have continued to do tun, and San Andres--are on target to achieve FSC certification far better at protecting forest and biodiversity than CONAP has in 2008 for sustainable xate plantations on 170,000 ha of done in the neighboring national parks. Studies predict that at concession land, the first such management standard in the current rates of deforestation, the Maya Biosphere Reserve will world (Rainforest Alliance 2007b:2). lose 38 percent of its 1986 forest cover by 2050. As a result, the certified concessions are likely to play an increasingly important role in the future in the reserve (Hughell and Butterfield 2008:2). The commitment of self-interested communities combined Securing the Future: with the support of government agencies, NGOs, international donors, and, more recently, overseas buyers has fostered this A Challenging Road Ahead success story. Yet 14 years after the first concession was granted, four EFCs are in trouble and the long-term future of the remain- Both for nature and for people, Guatemala's community der, while promising, is not assured (Nittler 2008). The reasons forestry enterprises have proved a clear success. As early as for this uncertainty stem from mistakes made when concessions 2000, the government's decision to hand over tenure rights and were first allocated and from failures to address wider policy management responsibilities to communities with a direct issues, such as uncontrolled immigration and agricultural economic interest in forest protection had paid off. "[They] encroachment that threaten their future stability. have exceeded expectations...are dramatically increasing the As described earlier, the borders of some early concessions incomes of concessionaires and have reduced the incidence of were hastily drawn without close attention to the makeup of the forest fires, illegal logging and settlements," reported the forests and without input from forestry professionals. Several authors of a 2000 review of the Maya Biosphere Project for have since proved too small and devoid of high-value timber USAID (Chemonics and IRG 2000:III-5). species that could provide a viable income from sustainable 137 W O R L D R E S O U R C E S 2 0 0 8 timber operations, and they have struggled to make a profit cation inspections. At least one manager with proven forestry (Nittler and Tschinkel 2005). experience must be hired, for example, and EFC governing Under these circumstances, community commitment to boards are required to retain at least one or two members for sustainable forestry management has been lacking, with more than one term of office to ensure continuity of experience predictable consequences. Corruption has flourished in a (Carrera 2007). Long-term planning has also improved EFCs' number of the smaller concessions, including San Miguel (7,039 business performance. With help from Chemonics, seven enter- ha), La Pasadita (18,817 ha), La Colorada (22,067 ha), and prises have produced comprehensive five-year plans enabling Cruce a La Colorada (20,469 ha). In these concessions, powerful them to forecast timber supply, improve sales forecasts, and avoid local figures illegally sell parcels of concession land to settlers and poor investment decisions (Chemonics 2006:26). encourage farmers to encroach into forest earmarked for sustain- In its 2006 completion report, Chemonics International able harvest (Nittler 2008; Carrera 2008). In 2004, SmartWood focused on the growing economic and social resilience of the suspended the FSC certification status of San Miguel and La concession communities, describing how villagers had devel- Pasadita, further harming their business outlook and producing oped into effective entrepreneurs: "Unlike the mindset in 2001, a stalemate that has yet to be resolved (Chemonics and IRG today most [enterprise] members understand the importance 2000:A-IV-24; Carrera 2007). of managing their organizations for profit. Board members and Poor organization and governance have also continued to managers are more aware of production costs, they have built hold back some enterprises from thriving as independent small in administrative and production controls, and are better businesses. In 2005, for example, observers noted that the prepared to negotiate more profitable forest-harvesting continued insistence by many enterprises on a yearly turnover of contracts" (Chemonics 2006:38). By December 2007, accord- board members entrenched "a guaranteed recipe for perpetual ing to José Roman Carrera, regional manager for the incompetence" (Nittler and Tschinkel 2005:8). In the past three Rainforest Alliance's sustainable forestry division, eight enter- years, however, these problems have lessened significantly as prises were profitable, operationally self-sufficient, and well EFCs have been required to professionalize their management placed to prosper once USAID funding to develop new under conditions specified by the SmartWood sustainable certifi- products and markets ceases in August 2009 (Carrera 2007). 138 G R E E N L I V E L I H O O D S Carrera warned, however, that this encouraging prospect LEARNING FROM GUATEMALA'S depended on the absence of "adverse external developments," COMMUNITY FOREST ENTERPRISES particularly the threat of uncontrolled immigration and Care must be taken at start-up. In the understandable rush to agricultural encroachment spilling over into community forests establish concessions in the early 1990s, little thought was given to the (Carrera 2007). Due to rising birth rates and economic migra- implications of long-term forest stewardship. Territories were carved tion from the south, illegal settlements and forest clearance by out with little consideration of what was appropriate and necessary to farmers continue to plague the Maya Biosphere Reserve's provide economic opportunities and incentives. The first few conces- supposedly protected national parks. By 2006, for example, sions were too small, unable to support profitable enterprises under about 40 percent of Laguna del Tigre National Park along the sustainable management. Today, those concessions are rife with reserve's western border had been destroyed by illegal logging corruption, and the forests are degraded by illegal logging and clearing and wildfires (compared with only 4 percent in the neighboring for agriculture. Uaxactun concession) (Rainforest Alliance 2007c:2). One problem is that communities in the buffer zone There is a difference between stewardship and enterprise. Initial alongside the national parks have not been given the alternative skill training for the concession managers focused on forest manage- livelihood opportunities enjoyed by the concession communi- ment. Only after government agencies and NGOs both saw that the ties and therefore lack any incentive to respect park rules. expected economic impact was not materializing--and that sustain- Another is the weakness of CONAP, which remains chronically able practices were suffering as a result--did it become clear that short of staff and resources and which lacks political support communities also needed skills to manage the business side of the from other government agencies (Chemonics 2006:45). "The concession: sales, marketing, and certification. This oversight set back government supports the development of the forestry enter- the development of profitable community concessions by several years. prises," says Carrera, "but to protect the concessions it needs to Government has an ongoing role that must be exercised. One of assign enough resources to enforce the protected area laws the goals of the government's establishment of the Maya Reserve was throughout the Maya Biosphere Reserve" (Carrera 2008). the preservation of one of the last great swaths of virgin forest in Central America. The track record of the certified concessions shows considerable improvement in the health of the areas under their control. But the National Parks in the reserve itself, ostensibly off-limits Scaling Up Community Forest Enterprises to all extractive uses, are losing acreage at an alarming pace because of poaching and illegal farming. The lack of any enforcement undercuts Organizational Scale-Up the government's goals and may ultimately jeopardize the achievements The creation of second-tier agencies has been critical in putting of the concessions. Guatemala's community enterprises on a viable business Long-term commitment is needed. This applies in every case. The footing. In the early years, ACOFOP lobbied for more and first concession contract was signed in 1994. Nine years later, NGOs larger concessions to be allocated and it provided fragmented and aid agencies were putting the finishing touches on FORESCOM, the communities with a collective voice (Chemonics 2003:10). Since organization formed by nine of the concession communities to provide 2003, the forest products company FORESCOM has enabled marketing services and training for concession members and to coordi- nine enterprises to add value to their basic product, timber, and nate sustainable certification of their timber. Twelve years after the to expand markets (Chemonics 2006:27). first concession, a phaseout plan for USAID is in place, now that nine By providing technical assistance in meeting Smart- concessions are well established and profitable. Wood's sustainable timber certification conditions, FORESCOM has allowed enterprises to cut compliance costs There is strength in numbers. The forest concessions in Guatemala by up to 80 percent and to end reliance on donor subsidies were thrust from the start into an international market; that is the (Chemonics 2006:13­14; Nittler and Tschinkel 2005:16). With nature of the high-value timber they were able to harvest. These conces- assistance from the internationally networked Rainforest sions could never, individually, hope to have all the contacts and skills Alliance, the company has also successfully identified national necessary to successfully navigate that trade. Their willingness to fund and overseas markets, particularly for lesser-known wood the creation of FORESCOM has paid significant dividends. In addition to species that FORESCOM sells on its members' behalf. By the services mentioned already, FORESCOM markets the combined representing the combined output of nine concessions (with harvests of the members to command better prices and encourages the the other three due to join by 2009), FORESCOM is winning production of additional products. Delegating certain critical manage- big contracts beyond the reach of individual enterprises, such ment decisions to FORESCOM is one key factor that has made eight of as an annual contract to supply 1 million board feet of timber the Petén concessions self-sufficient and profitable today. a year to a Guatemalan building company. 139 W O R L D R E S O U R C E S 2 0 0 8 Much of the demand from the US and Europe is for ment cannot be overstated," says Greg Minnick, Managing processed wood and finished products. In 2006, FORESCOM Director of the Rainforest Alliance TREES (Training, Exten- received a US$260,000 grant from the Guatemalan government sion, Enterprise and Sourcing) Program (Minnick 2008). to build a factory that manufactures flooring, decking, and furni- ture components from lesser-known species. In 2008, the company will also help enterprises set up dry kilning facilities in Claiming Carbon Credits: A New Policy Tool their communities to refine the processing of high-value The Guatemalan government has also recognized the earning mahogany and cedar, further boosting profits (Carrera 2007). potential represented by preserving the Maya Biosphere FORESCOM has also built strong working relationships Reserve's natural forest cover. with customers, such as the national timber company Baren With funding from PRONACOM, USAID, the Inter- Commercial, and strategic alliances with local, national, and American Development Bank, and two private companies, international organizations and agencies such as the municipal- CONAP and the Rainforest Alliance are supporting a pioneer- ities of San Benito and Flores in the Petén, the National Forest ing scheme to develop carbon credit markets for the community Institute, the Union Association of Exporters (now a concessions on the basis of avoided deforestation (Rainforest FORESCOM member), and the International Tropical Alliance 2007b:3). "It is a new concept, the first of its kind in Timber Organization (Chemonics 2006:29; Rainforest Central America, because we are not working with plantations, Alliance 2007b:1). Individual enterprises have also established but with natural primary tropical forest under certification," strong relationships with specialist US buyers, such as Gibson says José Roman Carrera (Carrera 2007). The pilot Maya Guitars and Continental Forest Greens, who are willing to pay Biosphere Carbon Project has already attracted interest from premium prices--and often in advance--for, respectively, certi- three buyers, and a quantification and verification process is due fied timber and xate (Rainforest Alliance 2007b:3). to be completed in 2008. The Rainforest Alliance projects that the enterprises will be able to sell 24.9 million tons of avoided Political Scale-Up carbon dioxide emissions over the next 10 years, creating an impressive new revenue stream in the form of environmental Despite the EFCs' well-publicized success, Guatemala's govern- services payments (Rainforest Alliance 2007b:3). ment has rebuffed USAID proposals that the concession The government's interest reflects the recognition that, as approach be extended to core zones of the Maya Biosphere donors withdraw, payments such as these may represent the best Reserve still being destroyed by illegal development and forest guarantee for the reserve's long-term survival, reinforcing local fires (Tschinkel 2007). Its commitment to the existing community communities' stake in its conservation. According to Carrera, concessions, however, is not in doubt. CONAP's 2005­2014 the new income will be partly invested in the four failing management strategy for the MBR, which includes consolidat- community concessions, helping them to develop non-timber ing the concessions in the multiple use zone, was approved at forest product industries and sustainable agriculture in areas Cabinet level (Chemonics 2006:33), giving communities at least already stripped of forest. "It's the only way we can preserve medium-term security. The national parks agency and the biodiversity," he says, "by adding environmental services to National Forest Institute have also widely adopted and institu- other sustainable forms of income and extracting maximum tionalized the extraction and management practices used in the value from the forests" (Carrera 2007). concessions (Tschinkel 2008). Since 2006, government agencies have also joined CONAP and the USAID-funded NGOs in helping EFCs achieve profitability and independence. The National Forest Replicating the Petén's Success Institute is helping refine villagers' technical forestry skills. Two USAID is funding the first attempt to certify community and other agencies--PRONACOM (the National Competitiveness family-owned forest plots outside the Petén, by expanding the Program) and the Technical Training and Productivity Insti- activities implemented by the Rainforest Alliance to two other tute--are teaching enterprise members "learning by doing" regions. Since September 2006, as part of the Forestry Enter- skills and tools for running a small business, including the prises in Guatemala Program, the NGO has worked in Las supply of finished products to international markets (Rainfor- Verapaces, to the south of the Petén, and in the Western est Alliance 2007b:2; Carrera 2008). Highlands area affected by Hurricane Stan, helping commu- These agencies are expected to retain their links with the nities implement sustainable management practices and enterprises after international donors withdraw, deepening the expand markets for local mixed forest products. Already, government's investment in the EFCs' future (Carrera 2007). several existing community forestry organizations have "The importance of the government of Guatemala's political reached commercial timber and wooden gift markets for the and financial support for the development of the community first time by promoting their timber as "pre-certified" forestry concession system...and continued enterprise develop- (Rainforest Alliance 2007b:1). 140 G R E E N L I V E L I H O O D S Across Latin America Guatemala's community enterprises have taken a long time Neighboring countries with biologically diverse tropical forests to become established. In the process, they have become are also taking advantage of the skills and lessons learned by increasingly resilient and better prepared for new external and the Petén's pioneering enterprises. Following a decade of internal challenges. Their success in keeping deforestation at training, the sophisticated technical capacity of community bay, raising local incomes and quality of life, and developing foresters is so evident that they have been hired as consultants into established businesses is encouraging and offers prospects and trainers in sustainable forest management programs in and lessons for replication in other tropical regions. Manage- Nicaragua, Panama, and Peru (Chemonics 2006:41). The ment responsibility for 25 percent of the developing world's comprehensive 25-year sustainable management plans devel- forests now lies in the hands of local communities--a figure oped by the enterprises and intermediaries have also produced expected to double by 2015 (Molnar et al. 2007:19; Carrera "technical models worthy of emulation" by forest managers 2008). This makes identifying and scaling up such local across tropical regions, according to observers (Nittler and management models, which meet the needs of both people and Tschinkel 2005:15). The Rainforest Alliance, for example, is nature, a compelling and necessary task. already replicating the concession forest management model in Honduras, helping to build community enterprise skills and access to certified timber markets for 11 villages that manage 100,000 ha within the threatened and wildlife-rich Rio Platano Biosphere Reserve (Rainforest Alliance 2006:1). 141 TURNING BACK THE DESERT How Farmers Have Transformed Niger's Landscapes and Livelihoods N IGER IS AN UNLIKELY SETTING FOR AN ENVIRONMENTAL SUCCESS STORY OF MAJOR proportions. The West African state ranks 174th out of 177 countries in the 2007­08 Human Development Index prepared by the United Nations Development Programme, based on indicators of health, education, and economic well-being. Sixty percent of Niger's people live on less than US$1 per day (UNDP 2007). Four fifths of its terri- tory falls within the Sahara desert and cannot support food crops. Yet population pressures are intense, with rural women bearing an average of 7.1 children (INS and Macro International Inc. 2007:xxv). Niger's farmland and people-- nomadic tribes apart--are concentrated in a southern strip of wind-swept savanna that falls within the Sahelian climatic zone. Rural communities struggle to grow crops in sandy, nutrient poor soils against a backdrop of chroni- cally low and erratic rainfall, an ecological challenge that climate change will only intensify (IPCC 2007:444, 447­48). Yet Niger is also the scene of an unprecedented, farmer-led et al. 2006:1). Large areas of countryside that a few years ago "re-greening" movement that has reversed desertification and faced constant shortages of fuelwood and fodder now produce brought increased crop production, income, food security, and surpluses for sale in nearby markets (Tougiani et al. 2008:13). self-reliance to impoverished rural producers. Vast expanses of savanna devoid of vegetation in the early 1980s are now densely studded by trees, shrubs, and crops. The scale of the change is truly astonishing, affecting about 5 million ha of land--about the size of Costa Rica--which amounts to almost half of the cultivated land in Niger (Tappan 2007). By 2007, between a quarter and half of all the country's farmers were involved, and estimates suggest that at least 4.5 million people were reaping the benefits (Reij 2008). The ecological impacts have been dramatic and include reduced erosion and increased soil fertility (Tougiani et al. 2008:10). Crop harvests have risen in many areas, enabling rural households to enjoy better diets, improved nutrition, higher incomes, and increased capacity to cope with periods of drought (Tougiani et al. 2008:16). In some villages, the soudure--the annual "hungry period" when food supplies are nearly exhausted--has been shortened or even eliminated (Larwanou 142 T U R N I N G B A C K T H E D E S E R T Many rural producers have doubled or tripled their incomes KEY ACHIEVEMENTS OF NIGER'S RE-GREENING MOVEMENT through the sale of wood, seed pods, and edible leaves (Winter- bottom 2008). Building Environmental Capital The re-greening movement has had especially important IAn increase of 10- to 20-fold in tree and shrub cover on about 5 million impacts for some of the poorest members of Nigerien ha of land, with approximately 200 million trees protected and managed society--women and young men (Larwanou et al. 2006:1­2). (McGahuey and Winterbottom 2007:7; Tappan 2007; Reij 2008). The burden on women associated with the gathering of wood IAt least 250,000 ha of degraded land reclaimed for crop production for household fuel has been reduced substantially (Boubacar et (McGahuey and Winterbottom 2007:7). al. 2005:23). So has the annual exodus of young men seeking urban jobs in Niger and neighboring countries, thanks to new ISoil fertility improved as higher tree densities act as windbreaks to opportunities to earn income in an expanded and diversified counter erosion, provide enriching mulch, and fix nitrogen in root rural economy (Larwanou et al. 2006:1­2). With farmers systems (Reij 2006:iii). producing more fuelwood to supply urban areas, Niger's IIn some areas, the return of wild fauna, including hares, wild guinea shrinking natural forests have also been spared further destruc- fowls, squirrels, and jackals (Boubacar et al. 2005:16). tion (Winterbottom 2008). There have been two key vehicles for this remarkable IReturn of diverse local tree species that had all but disappeared from transformation. First is the adoption of simple, low-cost many areas and of beneficial insect and bird predators that reduce techniques for managing the natural regeneration of trees and crop pests (Boubacar et al. 2005:13; Rinaudo 2005a:14). shrubs, known as farmer-managed natural regeneration, or Building Economic Capital FMNR. In concert with forest management, many communi- IExpanded cultivation of cereals and vegetables, with harvests doubling ties are also using simple soil and water conservation programs in some areas (Tougiani et al. 2008:16; Boubacar et al. 2005:25). to drive the greening transformation. Both efforts have been encouraged and assisted by intermediaries including NGOs, IPods and leaves provide critical dry-season fodder supplies for donor governments, and international aid agencies. While this livestock (Tougiani et al. 2008:16). case study emphasizes the FMNR process, much of Niger's INew food export markets created, primarily to Nigeria (Reij 2006:ii). greening success can also be attributed to the simultaneous soil and conservation work. FMNR evolved in the mid-1980s as a IRural incomes rose in three regions practicing farmer-managed response to the problems associated with traditional farming in natural regeneration (FMNR) (McGahuey and Winterbottom 2007:3). Niger, in which farmers "cleaned" their land of all vegetation ICreation of specialized local markets in buying, rehabilitating, and and crop residues before planting crops (Polgreen 2007:2). The reselling degraded lands, with land values rising by 75­140 percent past two decades of experimentation and innovation with in some areas (Abdoulaye and Ibro 2006:44). FMNR in sustainably harvesting native vegetation have resulted in widespread acceptance that tree cover brings both IEmpowerment of hundreds of thousands of poor farmers, enabling them income and subsistence benefits. The government of Niger has to pursue new enterprises and improve livelihoods (McGahuey 2008). played an enabling role, enacting key land tenure and tree Building Social Capital growth reforms, having learned from the failures of earlier ISome 25­50 percent of all rural producers have adopted improved natural destructive policies (McGahuey 2008). resource management techniques (estimate based on Tappan 2007). In an ecologically vulnerable region expected to experi- ence more frequent drought as a result of climate change, IFood, fuelwood, and income provided by trees have increased food Niger's tree regeneration movement, say natural resource security (Reij 2006:iii). management experts, offers a proven path to greater environ- INutrition and diets have improved through the availability of edible mental and economic resilience and increased food security for tree leaves and fruits as well as produce grown on rehabilitated plots the inhabitants of Africa's drylands (Harris 2007; IPCC (Larwanou et al. 2006:22). 2007:444, 447­48). Given the explosive rate of population growth in the region, FMNR alone will not enable Niger--or IImproved access to land and income generation for women, widows, other Sahelian countries--to stay ahead of the food and liveli- and the landless poor (McGahuey and Winterbottom 2007:13). hood needs of their people (McGahuey 2008). Indeed, even IAverage time spent by women collecting firewood has fallen from though FMNR is used widely today, 50 percent of Niger's 2.5 hours to half an hour (Reij 2006:iii). children remain undernourished (INS and Macro Interna- tional Inc. 2007:xxix). But it is one important tool to increase IIncreased self-reliance among villages; improved social status of productivity for land-poor farmers and has already proved its women involved in FMNR (Reij 2006:iii; Diarra 2006:27). capacity to provide them with diverse and sustainable rural IReduced urban exodus of young men in search of work and creation livelihoods and economies. of new small businesses related to forest products (BBC 2006). 143 W O R L D R E S O U R C E S 2 0 0 8 TRENDS IN VEGETATION INDEX, 1982­1999 THE GREENING OF NIGER: KEY DATES I1935: French law asserts that all natural resources in Niger, includ- From Famine to Food: ing trees, belong to the state The Revegetation of Niger I1960: Independence from France; new government maintains natural resource rules and begins stricter enforcement with paramilitary Forest Service The farmer-led transformation of Niger's countryside over the past quarter-century stemmed from an ecological and humani- I1969 -1973: 4-year drought cripples country tarian crisis that threatened the lives and livelihoods of millions I1975: Multiple donors and NGOs enter Niger to improve food security of people and undermined the country's ability to sustain itself. and combat desertification, including CARE International's Majjia Through the early 1900s, land use in Niger was character- Valley Project ized by sparse rural populations cultivating small fields amidst surrounding bush. Families were smaller, yields were sufficient, I1983: Serving in Mission (SIM) begins implementing Farmer- and there were ample supplies of timber from natural Managed Natural Regeneration (FMNR) as part of its Maradi woodlands. Fields were left fallow, and trees and shrubs were Integrated Development Project (MIDP) regenerated to provide extra wood before being cleared for I1984 -1985: MIDP teams with World Food Program's Food for Work planting (Winterbottom 2008). Program in 95 villages in Maradi in response to drought Land clearing and tree-felling became more common in the 1930s, as the French colonial government pushed Nigerien I1985: Government creates Plan to Combat Desertification farmers to grow export crops and implemented policies that I1987: Transitional government's Rural Code Secretariat coordinates provided disincentives for farmers to care for their land. Such with international aid groups to revise Rural Code and natural disincentives included a new land law that established the national resource governance regulations government as the owner of all trees and required Nigeriens to purchase permits to use them (Brough and Kimenyi 2002). I1993: New Rural Code signed, transferring tree ownership to Perversely, the positive outcomes of the effective French property owners health care system, namely higher life expectancy and lower I1996: Coup d'état results in suspended donor assistance infant mortality, also increased strain on natural resources (Brough and Kimenyi 2002). So by the time the post-colonial I1998: Legislation to implement Rural Code at village level enacted government took power in 1960, Niger's resources were already I2004: Rural Code enforcement begins at village level stretched thin. Throughout the 1960s and 1970s, this pressure multiplied with the policies of the new government, rapid I2005: Food shortages due to drought, locust infestation, and population growth, and a series of devastating droughts. population pressures; farmers practicing FMNR and soil and water Niger's postcolonial government extended its predecessor's conservation techniques fare better than those that do not policy of state ownership over all forest resources. Hoping for I2007: Satellite images show that over 5 million ha of Niger has new better enforcement of the forestry law, it made the Forestry vegetation thanks to regeneration efforts of previous twenty years Service into a paramilitary institution (USAID et al. 2002:42). Its 144 T U R N I N G B A C K T H E D E S E R T officers forbade any felling, harvesting, or selling of trees without ment (USAID), the World Bank, CARE International, the government permits (Dan Baria 1999:1, 2). Offenders, including Canadian International Development Agency, Italian Cooper- farmers lopping branches from bush trees on their own land, ation, the International Fund for Agricultural Development were fined or even imprisoned (Rinaudo 2005a:5). This discour- (IFAD), and the German government agency GTZ, had aged people from investing efforts in producing, managing, and expanded relief efforts to include development projects aimed selling forest products. at restoring rural productivity (Hamissou 2001:34­35). At the same time, government agricultural extension In the 1970s and early 1980s, these efforts focused on services focused on planting crops in rows, animal plowing, and training foresters and establishing exotic tree nurseries and other measures that also discouraged trees in fields (Rinaudo fuelwood plantations. This approach was both intensive and 2005a:5). The government invested heavily in centrally managed expensive--plantations typically cost US$1,000 per ha to seed reforestation projects, funded with donor support, which often and maintain (McGahuey and Winterbottom 2007:4). Local involved plowing under natural vegetation (McGahuey and people were rarely consulted before projects began, and the Winterbottom 2007:21). government often appropriated land that farmers and herders This stripping of Niger's natural tree cover was exacer- had used (Rinaudo 2005a:4). Over 12 years, some 60 million bated by rapid population growth. By 1975 much of the trees were planted in Niger, less than half of which survived remaining natural woodland had been converted to farm fields (Tougiani et al. 2008:5). to feed rapidly growing rural communities. But by clearing One exception to an otherwise ill-fated program was the native trees and shrubs, farmers exposed their fields to the Majjia Valley Project, developed by CARE International in fierce Sahara winds, resulting in plummeting soil fertility and 1975, funded by USAID, and implemented by the Nigerien harvests. The loss of tree cover also triggered a rural fuelwood Forest Service and U.S. Peace Corps volunteers (USAID et al. crisis. Poor households were forced to burn animal dung or 2002:42;Wentling 2008a). Farms in the tree-denuded river valley crop residues instead of using them for compost, reinforcing had been plagued by high winds that destroyed seeds in Niger's the downward spiral in soil quality and crop yields (Rinaudo June-to-October growing season. By planting alternating rows of 2007; Winterbottom 2008). neem (Azadirachta indica)--an exotic nursery-grown species-- In 1969, Niger's growing stresses developed into a and native Acacia nilotica saplings across the valley to act as humanitarian disaster with the start of an extreme 4-year windbreaks, the project improved soil retention and fertility, drought that triggered famine across the Sahel, afflicting 50 lessened the need for repeated sowing, and reduced damage to million people (Dan Baria 1999:1). The scale of human suffer- newly planted crops (Steinberg 1988:1). ing attracted global media coverage and drew international Within a few years, overall yields of millet in fields between aid agencies into Niger. Within a few years these donors, windbreak rows increased by 15 percent. While this roughly including the United States Agency for International Develop- equaled the loss of production due to trees taking up former 145 W O R L D R E S O U R C E S 2 0 0 8 crop space, the harvesting of tree branches, leaves, and twigs barren, as they appeared, but contained "underground forests" used for wood fuel, thatching, and livestock fodder rose by 68 of native tree and shrub stumps that could be successfully regen- percent (Steinberg 1988:1). In a break with previous top-down erated at a fraction of the cost of growing nursery tree stock approaches, the project gave communities responsibility for (Rinaudo 2005a:2). As a result, he helped SIM launch the maintaining the windbreaks, and village committees were estab- Maradi Integrated Development Project (MIDP), featuring a lished to create and enforce rules governing tree pruning new approach to reforestation (Rinaudo 2005a:2). (Steinberg 1988:3; Tougiani et al. 2008:10). Farmer-managed natural regeneration, as MIDP's approach came to be called, involved supporting the regeneration of trees and their sustainable management to produce continuous The Search for Sustainable Solutions: supplies of fuelwood as well as non-timber products such as Tree Regeneration Takes Root edible seeds and leaves. MIDP's effort entailed very few "rules," instead emphasizing farmer experimentation and choice. In its emphasis on improving native soils, harvesting branches, Farmers chose how many tree stumps to let resprout in their and sharing responsibility with communities, the Majjia Valley Project laid the groundwork for the FMNR revolution. Its capital- and labor-intensive plantation-based approach, WHAT IS FARMER-MANAGED NATURAL REGENERATION? however, was not very scaleable, as only a small fraction of Niger's cropland lies within river valleys; the majority is in drier Farmer-managed natural regeneration (FMNR) in the savannas of upland areas (Steinberg 1988:2). southern Niger adapts centuries-old methods of woodland management By the early 1980s, development agencies operating in to produce continuous harvests of trees for fuel, building materials, Niger began to recognize that simple, low-cost farming and food and fodder without the need for frequent, costly replanting. techniques held the greatest promise for improving rural liveli- Trees are trimmed and pruned to maximize harvests while promoting hoods. At the same time, studies sponsored by USAID's Forest optimal growing conditions (such as access to water and sunlight). and Land Use Planning project produced compelling evidence The new feature, pioneered by farmers in Niger and the intermediary that native species were better adapted to local conditions than organizations that assisted them, was to use these techniques in exotic imports, such as eucalyptus and neem, that were initially agricultural cropland and to manage trees as part of a farm enterprise. used in development projects (Gallegos et al. 1987:86). Not only For decades, Nigerien farmers had cleared their fields of vegetation, could the long tap roots of native trees reach low water tables, leaving what turned out to be an "underground forest" of living stumps but they quickly regenerated after lopping (Amoukou 2006:26; and roots. FMNR is based on the regeneration of native trees and Rinaudo 2005a:6). These native trees provided multiple products shrubs from these mature root systems, which promote surprisingly fast for resource-poor households, including fuelwood, livestock regrowth. Four key steps are involved: fodder, and edible leaves and seedpods (Rinaudo 2005a:6). Armed with this evidence, projects funded by development I Selecting the stumps to regenerate based on the usefulness of agencies increasingly shifted from exotic plantations to promot- the species. ing natural forest management. I Selecting stems to prune and protect on each stump--usually the tallest and straightest. Intermediaries promoted five stems per stump as the ideal, but each farmer decides for himself or herself, The Pioneers: Serving In Mission based on farming objectives and household needs. One of the key people behind the movement toward natural I Removing unwanted stems and side branches. forest management was Tony Rinaudo, a Christian missionary with a strong background in natural resource issues who spent I Removing new stems and regularly pruning surplus side branches the 1970s and 1980s working with Serving in Mission (SIM, (as often as once a day). The longer a stem is left to grow, the higher formerly Society of International Ministries). In 1958, SIM had its value in local wood markets. established a farm school in Maradi, partnering with the The original FMNR model, pioneered by Serving In Mission, promoted Evangelical Church of Niger to assist small-scale farmers in the harvesting one of the original five stems every year, with a newly region (Evans 2005). In response to the drought of the early resprouting stem chosen as a replacement. However, some farmers 1970s, SIM, like other aid organizations at the time, turned its regrow many more stems per stump, allowing more than 200 stumps focus in Maradi to tree planting. But by the early 1980s, Rinaudo per ha to regenerate. This method quickly creates a young woodland. and some of his colleagues saw that the greening improvements Typical species regenerated in the region include Ziziphus and from these efforts were limited, given the amount of time and Combretum, Guera senegalensis, Bauhinia reticulata, and Piliostigma money invested. reticulatum, which provide wood, nutritious fruits, edible leaves, and It was then that Rinaudo began to seek out a different livestock fodder. solution to desertification (Rinaudo 2005a:6). In 1983 he Source: Rinaudo 2005a:6­11 realized that the fields cleared by project farmers were not 146 T U R N I N G B A C K T H E D E S E R T fields, how many resprouted stems to grow and harvest, and what to do with the wood (Rinaudo 2005a:8). MIDP workers lived in the project villages and led by example, practicing FMNR on their own farmland. They won recruits by holding village meetings and approaching farmers known to favor planting trees (Rinaudo 2007, 2008). The FMNR approach asked farmers to abandon lifelong practices. Unsurprisingly, few of them were daring enough to take such a risk (Rinaudo 2005a:9). In the first year, only 12 farmers cultivating a total of 12 ha responded to recruitment efforts, from among thousands of local farmers in the district of Guidan Roumdji (the name of this arrondissement was changed to Groumdjii in 2002). They were mocked by other farmers, and some of their young trees were deliberately damaged or chopped down and stolen for fuelwood (Rinaudo 2007). According to Rinaudo, the first farmers were motivated by a variety of factors. "In 1983, the thought of leaving trees in crop fields was seen as ludicrous by farmers brought up with the belief that cleared fields were essential for good crop yields. Some of the 12 guys were early adopters and innovators and were used to being different.... Some may have hoped that the project would provide loans for oxen, fertilizer and seed as SIM had done in the past. Some were visionary and were already planting trees, so the idea that FMNR would be simpler and faster appealed to them" (Rinaudo 2007). Despite the peer pressure, all 12 farmers persevered and benefited from a small fuelwood yield in the first year (Rinaudo 2007). Their crop productivity also increased, as MIDP workers had predicted. The following year, the Sahel was hit with another major drought and subsequent famine, a cycle repeated in 1988. MIDP staff seized the opportunity to expand its tree regeneration efforts by incorporating FMNR in keep their trees to refine regeneration practices. Early progress a Food for Work program in 95 villages in three of Maradi's was slow, obstructed not only by deep-rooted cultural beliefs but six districts--Guidan-Roumdjii and Madarounfa along the also by Niger's forestry laws, which stipulated that trees were southwest border with Nigeria and Dakoro district in the state property (Rinaudo 2005a:5, 9). As farmers were liable to northwest (Rinaudo 2008). In return for food, farmers were be fined for cutting branches in their fields, they lacked incen- required to regenerate native vegetation on their land. tives to regenerate native bush, and many would slash and burn Rinaudo estimates that between 80,000 and 100,000 people regrowing stumps (Rinaudo 2005a:1). While government were exposed to FMNR in 1984 and 1988, providing "the budget cuts in the 1980s began to limit the ability of forestry critical mass of people required for adoption of an innovative agents to enforce the laws, the Forestry Service continued to approach" (Rinaudo 2007). station agents at road blocks to confiscate cut wood, preventing Most farmers took part only reluctantly, however, the development of a legitimate commercial market for farm- motivated solely by their desire for food aid. Although crops grown fuel (Rinaudo 2007). flourished among their field trees, many chopped the trees In the late 1980s, however, this problem abated after MIDP down after the program ended. About two thirds of the half- intervened with the head of the Maradi Forestry Department, million newly regenerated trees were lost, with only a third of who agreed to suspend enforcement of the tree cutting regula- farmers continuing with the program (Rinaudo 2005a:9). tions (Rinaudo 2007). For the first time, this gave farmers the "Despite regular program messages about the value of trees, incentive and confidence to protect trees on their land by most people practiced FMNR only in order to obtain grain," providing both informal tenure rights and the prospect of new says Rinaudo (Rinaudo 2007). income from timber products. By fostering the perception that Nevertheless, MIDP's leaders had seen the benefits of farmers "owned" the trees in their fields--although official FMNR and were optimistic that it had the potential to help reform of tree ownership was not implemented until 2004-- farmers across Niger and beyond. They therefore continued this cooperation between NGO and local government enabled their efforts, working with the thousands of farmers who did FMNR to take hold (Rinuado 2008). 147 W O R L D R E S O U R C E S 2 0 0 8 PERCENT OF POPULATION IN THREE NIGER PROJECT VILLAGES ADOPTING COMPLEMENTARY TREE REGENERATION AND SOIL AND WATER CONSERVATION TECHNIQUES NRM Technique Dan Saga, Maradi region Control, non-project village Kolloma Baba, Tahoua region Batodi, Tahoua region (IFAD project) (Dourgou in Maradi region) (GTZ project) (IFAD project) Protection of natural 100 6 86 100 regeneration of trees Tassa -- -- 91 97 Demi-lunes -- -- 20 46 Stone lines -- -- 97 91 Source: Adapted from Abdoulaye and Ibro 2006:37. Farmers Spread the Word sultan's gao trees was subject to physical punishment (Larwanou Within a few years, farmers throughout the region began to et al. 2006:14). But with Niger's recent decentralization of experiment with regeneration. As thousands of households natural resource management and the legalization of tree- quickly made impressive gains in crop yields and incomes, the cutting, the gaos' value can now be translated into economic practice spread from farmer to farmer and from district to benefits for the rural farmers that tend them. district, driven by self-interest without project intervention. As While no comprehensive national inventory has been regenerating trees requires no financial outlays for materials or conducted, aerial and ground surveys and anecdotal evidence equipment by poor, risk-averse farmers, FMNR was well adapted suggest that by 2006, trees had reappeared on about 5 million ha, to such spontaneous self-scaling (Rinaudo 2005a:17­18). nearly half of all cultivated land in Niger (Tappan 2007). In Farmers became the best spokespersons for woodland Maradi and Zinder, which account for over half of Niger's cereal regeneration. But the movement was also facilitated by external production and where 40 percent of its people live, the practice of intermediary support, with donor agencies funding village FMNR is now common (Wentling 2008b: 7; Rinaudo 2005a:5, 9). implementation projects, farmer study tours, and farmer-to- farmer exchanges. By the mid-1990s, FMNR had become standard practice within the MIDP operational area in Maradi. Project staff had also trained farmers and NGO field workers in five of Niger's six other regions, including neighboring Tahoua and Zinder and more distant Tillabéri, Dosso and Diffa (Rinaudo 2008). Other rural development projects adopted and promoted FMNR methods in their programs, including some funded by the German government and the World Bank and implemented by organizations that included IFAD and CARE International (Larwanou et al. 2006; Boubacar 2006:16; USAID et al. 2002:42). Following a military coup d'état in Niger in 1996, most of this donor assistance was suspended (USAID et al. 2002:42). Yet woodland regeneration continued to spread rapidly, underlining the key role played by farmers themselves in self-scaling (Winterbottom 2008). In 2004--the year in which government reforms formally awarded tree ownership to rural landowners-- observers estimated the number of regenerated trees in Maradi's Aguié district alone at about 4 million (Reij 2004:1). By 2006, farmers in the densely populated parts of Zinder had almost universally adopted FMNR on about 1 million ha-- without any major donor intervention (Larwanou et al. 2006:12­13, 17). This remarkable trend, attributed by observers to the high economic value of Zinder's dominant gao and baobab trees, underlines the profound shift that farmer-led regeneration has brought about in national consciousness (Larwanou et al. 2006:12, 14). The gao tree has always been highly valued in Niger--under Hausa tradition, for instance, anyone cutting the 148 Demi-lunes Tassa Adding Value: Reclaiming Water and Land lunes, water tables had risen to three meters below the surface and yields of millet and sorghum, Niger's primary food crops, Since the late 1970s, donor efforts to stave off future famines had increased significantly (Guéro and Dan Lamso 2006:31). have also included the introduction of simple soil and water Batodi's many women farmers now cultivate dry-season conservation techniques to rehabilitate barren land (Reij 2008). vegetable gardens, irrigated by wells, for household use and sale As the practice of tree regeneration spread across southern (Guéro and Dan Lamso 2006:31). Onions are especially high Niger, intermediaries and farmers adopted some of these value, with one producer (a male farmer) earning 250,000 CFA practices to further boost crop production. Widely adopted francs (US$500) for a crop grown on a quarter of a hectare methods included rock lining (placing rocks lines along the (Abdoulaye and Ibro 2006:19). contour of sloping land to reduce runoff), improved versions of Adoption of these soil and conservation techniques has led traditional planting pits or tassa, and demi-lunes (crescent- to the restoration of land once considered useless. In Tahoua shaped trenches dug along the contour of sloping land to region, for example, entrepreneurial farmers started a new improve water infiltration into soil) (Abdoulaye and Ibro market by buying degraded land to rehabilitate and resell (Reij 2006:19). 2008). Land prices around Batodi doubled between 1990 and These techniques enabled cultivation of secondary 1994 as a result, while in a second village, Roukouzoum, rehabil- vegetable crops, which in turn helped rural families improve itated land was resold after two years for triple the original price their diets in a country where half the children suffer from (Boubacar et al. 2005:10­11, 20). A market in specialized labor malnutrition (Boubacar et al. 2005:21). For example, improved has also developed in the region, with self-trained land restorers soils and higher water tables have enabled villages in Tahoua hired by other farmers to dig tassa and demi-lunes (Boubacar et region to grow onions, tomatoes, sweet potatoes, cow peas, al. 2005:27). While farmers most able to capitalize on increased watermelon, and asparagus for home use and sale in local land values tend to be the better-off ones, land reclamation has markets (Guéro and Dan Lamso 2006:31). also provided a route for very poor families to relieve hunger and Soil and water conservation methods have proved particu- increase income (Boubacar et al. 2005:20­21). larly important in districts with low water tables and severe shortages of cultivable soil. One of the most dramatic success stories is Batodi village in the Illéla district of Tahoua, where the Creating Resilient International Fund for Agricultural Development promoted use of improved tassa and demi-lunes (Boubacar et al. 2005:8). Landscapes, Livelihoods According to villagers, the local water table had sunk to 18 meters below ground by the early 1990s (Boubacar et al. The simple and cost-effective practice of farmer-managed 2005:15). Nothing would grow in the barren land around the natural regeneration has provided an impressively wide range of village, and women typically spent several hours a day fetching benefits for Niger's impoverished rural communities. Over the water. By 2005, with almost every villager using tassa and demi- last 20 years or so, about 200 million trees have been protected 149 W O R L D R E S O U R C E S 2 0 0 8 and managed by farmers and at least 250,000 ha of degraded (Rinaudo 2005a:12). Livestock and birds attracted to tree shade land has been restored to crop production (Reij 2008; and branches leave droppings that fertilize the soil (Rinaudo McGahuey and Winterbottom 2007:7). A 2005 survey for 2005a:12). Moreover, the growing season on land with trees is USAID recorded tree or shrub stems ranging from 20 to 150 per longer because farmers only have to sow once, compared with ha across three regions, a dramatic 10- to 20-fold increase since twice or more on fields unprotected from the elements (Rinaudo 1975 (McGahuey and Winterbottom 2007:6­8). This change in 2005a:4; Reij 2008). Such benefits are magnified when farmers the rural landscape has enabled hundreds of thousands of act collectively, as blanket FMNR villages in Maradi and Zinder households living on US$2 or less a day to diversify livelihoods regions have discovered. Vegetation in one field affects nearby and increase income, thus increasing their economic resilience. It land by serving as a windbreak and promoting improved water has also played a critical role in addressing the chronic hunger of infiltration and soil retention (Winterbottom 2007). families accustomed to living with unpredictable harvests. All these FMNR benefits, combined with the soil and water FMNR has also had an enormously empowering effect, interventions, have resulted in increases in sorghum yields of demonstrating to hundreds of thousands of people that they between 20 and 85 percent and in millet yields of between 15 and were not helpless hostages to poverty and a capricious climate. 50 percent in intervention villages (Amoukou 2006:25). Other "[Its success] helped establish a positive mindset about farmers' studies suggest that millet yields have even consistently doubled in capacity to take charge of critical farm management decisions," some FMNR-practicing communities (Tougiani et al. 2008:16). explains USAID natural resources management adviser Mike This has enabled households both to store more food against the McGahuey. "It showed that progress against poverty and deser- threat of shortages in the dry season and, occasionally, to sell tification was strongest when the rural poor worked on their own surplus crops in local markets or for export to neighboring behalf to achieve their own objectives" (McGahuey 2008). Nigeria (Reij 2006:ii). SAMPLE WOOD INCOME BENEFITS FOR FARMERS Money Trees Area: 1 hectare No. Trees protected: 40/hectare Fuelwood and Fodder Income No. stems protected per tree: 5 stems/stump Year 1 40 stems x 0.10 cents US$ 4 The most immediate benefit for most families practicing Year 2 40 stems x 0.70 cents US$ 28 FMNR is the availability of fuelwood from pruned tree Year 3 40 stems x US$1.50 US$ 60 branches. From the first year, communities are able to harvest Year 4 40 stems x US$ 3.50 US$ 140 light firewood and from the second year to cut branches to sell Year 5 40 stems x US$ 3.50 US$ 140 in local markets for much-needed extra income. According to Year 6 40 stems x US$ 3.50 US$ 140 conservative SIM estimates, farmers regenerating 40 stumps on Total US$ 512 a 1-ha field could earn an additional 70,000 CFA francs (about Source: Rinaudo 2005b. US$140) per year--half the average annual income of a poor farming household. By 2004, researchers had recorded steep increases in PERCENT OF RURAL HOUSEHOLDS EARNING INCOME fuelwood and fodder production in FMNR communities, with FROM WOOD AND HAY IN 2005 majorities of villagers gaining income from one or other product. Earlier studies indicate that in 100 Maradi villages 100% alone, about US$600,000 worth of wood was sold between Wood 1985 and 1997 (SIM 1999, as cited by Rinuado 2005a:14). And Hay survey results from across villages with land rehabilitation 80% projects demonstrate that residents perceive a marked decrease in poverty around them as a result of the projects (Abdoulaye 60% and Ibro 2006:40). 40% Crop Income Revegetation also improves the traditionally poor fertility of 20% Niger's soils, which in turn boosts crop production. Bush trees dotted across fields help hold soil in place, reducing wind and water erosion (Guéro and Dan Lamso 2006:15). Native trees and 0% Tama Kolloma Baba Batodi Dan Saga Boukanda shrubs draw up nutrients and distribute them in the topsoil at the Village same time that falling leaves and trimmings are used as mulch Source: Abdoulaye and Ibro 2006: 43 150 Storing millet Nationally, figures from the Niger agriculture ministry show Providing Food Security, cereal production rising steadily in parallel with the spread of Protecting Against Famine FMNR. In 1980, Niger produced 1,770,700 metric tons of cereals, rising to 2,093,300 mt in 1995 and 2,319,800 mt in The return of trees to Niger's densely populated southern plains 2000. By 2006, when at least a quarter of cultivated land was and dunes has also increased food security for local rural converted, production reached an impressive 4,055,984 mt economies at a time when the country is adding 440,000 new (Wentling 2008b:1). These statistics suggest that the farmer-led mouths to feed every year (Wentling 2008b:2). Since the cereals re-greening movement is having a clear impact on the country's millet and sorghum make up over 90 percent of the typical ability to feed itself and improve the rural economy. villager's diet, it was critical that in 2006 the country was able to produce 283 kg of cereal per capita, almost identical to the 285 Non-Timber Tree Products kg produced in 1980 despite a near-doubling of the population Farmers' trees have also yielded direct non-timber benefits in over 25 years (Wentling 2008b:3, 1). the form of fodder for livestock and edible leaves and seedpods "In the late 1970s donors thought it would be impossible for to set aside for times of hunger (Rinaudo 2005a:3). Anecdotal Niger to produce enough food to feed a population of 10 evidence suggests that diet has also improved for many FMNR million," says Mark Wentling, USAID's country program practitioners as they have a greater diversity of food sources. manager for Niger. "In the past three years, Niger has produced Some villagers in the Aguié district of Maradi, for example, more cereals than ever. Much of this increase can be attributed harvest the leaves of a common scrubland tree, Maerua to higher crop yields achieved through the practice of FMNR... crassifolia, which are rich in vitamin A (Reij 2008). Maradi- which has been critical to enable Niger...to feed its population of based farmers have also used the proceeds of FMNR to 14 million" (Wentling 2008a). embark on new income-generating activities, such as beekeep- Over the last 45 years, Niger has been plagued by an ing (Burns 2008). average of one bad harvest every eight years, following a While most non-timber tree products are consumed by growing season of low rainfall (Wentling 2008b:4). Farmers farming families, some districts have generated significant practicing FMNR, who are able to stockpile some grains during income from their sale. This is especially true in Zinder good years and to harvest trees for food and income, are better province, where FMNR has revived cultivation of the baobab insulated against these deadly cyclical droughts, which are tree. Each baobab can bring in an average of US$20 a year in predicted to increase as a result of climate change (Reij 2006:2; economic benefits just from the sale of its edible leaves IPCC 2007:444, 447­48). (Larwanou et al. 2006:18). With some farms boasting an When the most recent drought and accompanying food average of 50 baobab trees per ha, that can amount to shortages hit the regions of Maradi, Tahoua, Tillabéri, and US$1,000 per ha a year--nearly three times the total annual Zinder in 2004­05, FMNR villages fared much better than those income of much of the population (calculation based on stripped of vegetation. An estimated 15 children a week died of Larwanou et al. 2006:18; Winterbottom 2007). hunger in Maradi during the summer of 2005 (BBC 2005). Yet 151 W O R L D R E S O U R C E S 2 0 0 8 villages in Aguié District, where inhabitants could harvest regen- erated trees for food, fodder, and firewood to sell in exchange for grain (see box) did not rely on famine relief and avoided a single death (Tougiani et al. 2008:13). The contrast between the famine's impacts on FMNR farmers and on their neighbors who did not practice FMNR is a stark reminder of the persistence required to scale up even visibly beneficial and simple changes to entrenched customs. Indeed, despite all its successes, at least half of Niger's farmers still do not use FMNR (Tappan 2007). Women Reap Dividends Women are perhaps the biggest winners in Niger's tree regener- ation revolution. Traditionally excluded from resource management decisions (despite being skilled in farming and animal husbandry), they have profited from the simple reality that FMNR favors women producers (Tougiani et al. 2008:12). Getting the best results from revegetation requires year-round, DAN SAGA: PEOPLE POWER TRANSFORMS LOCAL ECONOMY The Maradi village of Dan Saga and its neighbors are the focus of a Their investment thus protected, many more farmers began nurturing concerted effort to build social capacity while promoting natural resource bush trees, adopting pruning and trimming techniques that allowed fast management in Niger. Beset by chronic food shortages due to a lack of vertical growth without hindering the growth of millet in the soil below land to sustain its rapidly growing population, Dan Saga was chosen (Toumieux 2005). By 2007, a total of 53 FMNR community committees as a priority site by the Aguié District Rural Development Project, an had been established, covering 170 villages and encompassing the entire initiative launched in 1992 by the International Fund for Agricultural Aguié district (Tougiani et al. 2008:11). Each village made payments Development (Boubacar 2006:17). The project provided rural credit to toward policing tree regeneration activities. The income raised, together several dozen villages and actively promoted farmer-led tree regenera- with fines collected, was placed in a village fund and used to support tion. Initially it did so using top-down demonstration and instruction to development activities and tree nurseries on common land. This trans- farmers. But these early efforts were undermined by conflicts among parent process both enhanced social unity and reinforced public support villagers, as some people were stealing wood from trees grown by others for tree regeneration (Tougiani et al. 2008:12­13). (Boubacar 2006:17­19). By 2007, destructive tree cutting practices had "practically ceased in In 2001, project managers switched focus to empowering communities the whole of Aguié," and 130,000 ha across the district boasted regen- through capacity-building. Under the renamed Desert Community erating trees (Tougiani et al. 2008:14). In Dan Saga, this included every Initiative, village management committees for natural regeneration were household and more than 5,600 ha of land, transforming the local elected by all community members. In a major break with tradition, these economy (Abdoulaye and Ibro 2006:15). Fields that had previously lain included women farmers and herders--two normally marginalized barren contained on average 150 bush trees per ha, compared with only groups--as well as male landowners. The committees laid down strict 52 per ha in a nearby non-project village (Abdoulaye and Ibro 2006:36). rules to regulate the exploitation of trees, organized villagers to guard Villagers reported that FMNR can double their yields (Diarra 2006:18), fields against intruders, and imposed fines on those who broke commu- and some nity-approved regulations (Reij 2004; Tougiani et al. 2008:12). 40 percent of village producers were selling surplus wood, seedpods from gao trees, and fruits and gum Arabic from Acacia seyal trees (Abdoulaye Resource management decisions and action plans were made at monthly and Ibro 2006:43). Annual per capita income from wood sales alone village assemblies, held before local elders and the chief, at which ranged between US$46 and US$92 (Tougiani et al. 2008: 13). committee members fed back information to the community. New bylaws, agreed to by the local administrative authority, embedded these arrange- Food security and resilience to drought--critical issues for a village on ments, while elected committee members were equipped with a uniform the edge of the Sahara--have also improved markedly (Tougiani et al. and badge, emphasizing their authority. Aguié's departmental govern- 2008:2). In 2005, when a deadly combination of locusts and drought ment, forestry department, and land tenure commission also approved the struck the region, Dan Saga required no food aid (Toumieux 2005). new institutional arrangements (Tougiani et al. 2008:10­14). 152 T U R N I N G B A C K T H E D E S E R T even daily, attention to pruning trees. As most men still migrate during the dry season; in Zinder, a sack of nutritious, edible to urban centers throughout West Africa during the dry season baobab leaves can sell for as much as 3,000 CFA francs to secure additional cash income, the increasingly valued task (US$6), three times the average daily wage for laborers of tree husbandry often falls to women (Wentling 2008a). (Larwanou et al. 2006:18). Women farmers use FMNR Women and their families derive a host of material benefits income to meet household needs, including purchasing food from this role. Using their own wood for cooking eliminates a and paying school fees. Many have also diversified their house- daily cost of 200 CFA francs (US 40 cents) for purchased holds' livelihoods: some by taking advantage of better soil firewood (USAID et al. 2005:18). Surplus wood can earn up to fertility and water retention to cultivate cash crops such as 400 CFA francs (US 80 cents) per bundle in local markets onions, tomatoes, sesame, and hibiscus; others by using their new earnings to invest in sheep and goats, which live off of tree seedpods (BBC 2006; Reij 2006:iii). KOLLOMA BABA: Anecdotal evidence highlights how the status of women WOMEN REVIVE LAND, IMPROVE THEIR STATUS has been transformed by their involvement in FMNR. A 2006 field study of FMNR villages across Zinder region found that "These lands are now like our husbands," say the women of Kolloma livestock owners--ranked high on the social ladder-- Baba, describing the thriving plots of millet and sorghum, cow peas, commonly included women (Larwanou et al. 2006:21). In groundnut, and okra around them, the result of years of hard labor Kolloma Baba village in Tahoua, formerly vulnerable and (Abdoulaye and Ibro 2006:40, 42). Once barren, boulder-covered, and marginalized widows and divorcees employ male laborers to devoid of vegetation, these patches of reclaimed desert have lifted the work their farms (Boubacar et al. 2005:10, 16). During the women, mostly divorcees and widows, out of grinding poverty and 2005 food crisis, female FMNR farmers also used their food transformed their social status. Today, not only do they harvest enough reserves to assist others, elevating their position in the food for their families; they earn income from selling surplus crops, hay, community (Diarra 2006:12). Women farmers' enhanced and tree seedpods, and their land has significantly increased in value status is also clearly demonstrated in FMNR communities (Boubacar et al. 2005:17, 20; Diarra 2006:21). that boast village natural resource management committees, where they participate equally with men in decision-making The women's fortunes were transformed with the help of the Tahoua (Tougiani et al. 2008:12). Rural Development Project, funded by the German government agency GTZ. In the late 1980s, with the agreement of the village chief and local government officials, about 250 widows and divorced women received the rights to abandoned, degraded land in Kolloma Baba, a village where farm productivity had plunged by up to 90 percent (PDRT 1997 Re-greening a Country: as cited by Guéro and Dan Lamso 2006:5; Abdoulaye and Ibro 2006:40). In return the women pledged to restore the land by investing their labor Key Players and Partners in soil and water conservation techniques (Guéro and Dan Lamso 2006:29; Winterbottom 2008). With millions of trees now carpeting land that was mostly barren only one to two decades ago, Niger's farmers have produced After clearing the land of rock, each woman received a plot of about one of the most visibly successful examples of natural resource 60 square meters (BBC 2006). In addition to sowing traditional millet management in the world today. Although it took several years and sorghum, many took the initiative to diversify into cow peas, to take off, Niger's farmers have abandoned a core practice of groundnut, and okra (Abdoulaye and Ibro 2006:32). In the early years, clearing fields and have embraced the protection and sustain- female farmers worked through the Kolloma Baba Women's Association, able management of native vegetation. established by the project, with members helping each other to develop Why did they do so? One clear reason, say observers, was their land (BBC 2006). More recently, they have hired male labor, proof the impact of the environmental and economic crisis of the late of their considerable economic capacity (Boubacar et al. 2005:18, 29). 1970s and early 1980s, combined with Niger's booming By 2006, they had restored 2,000 ha of degraded land and were selling population. With more mouths to feed every year, rural excess crops, lifting themselves a step out of poverty and increasing communities could see that traditional clearing and farming their social status. A village committee, principally made up of women, methods were no longer meeting their needs (Wentling 2008a). deals with protection of regenerated trees across the community The obvious success of early FMNR projects, implemented at (Saadou and Larwanou 2006:15­16, 18). little or no cost to farmers, was also a powerful spur to their Although their land has increased several times in value, and despite neighbors. But it is unlikely the movement would have reached persistent pressure from male farmers, the women have vowed not to such a scale or overcome the barriers to farmer adoption sell. Says association member Fatima Illiassou: "Thanks to our crops, without the input of two key players: Niger's central govern- we can eat. We can buy clothes for our children. We won't go through ment and international intermediary organizations. all that suffering to give men the fruits of our labor" (BBC 2006). 153 W O R L D R E S O U R C E S 2 0 0 8 Role of Government: From Policemen to Allies and water conservation, could and did explode across the One of the biggest hurdles to widespread adoption of FMNR country. "Under the old system, the spontaneous spread of was the state ownership of Niger's trees. Villagers were well FMNR would not have likely occurred," says Mike McGahuey. aware of the law because the oppressive Forestry Service vigor- "FMNR demonstrated that the most effective role of govern- ously enforced it for over 20 years, well into the 1980s, making ment was to reduce barriers and strengthen farmers' incentives farmers hesitant to manage trees. However, de facto shifts in the to engage in and benefit from environmentally and socially forest and land tenure system began in the late 1980s as part of sustainable agricultural practices" (McGahuey 2008). the government's transition to democracy (USAID et al. 2002:42; Wentling 2008a). These de facto shifts were driven by a confluence of forces. Macro issues included the fallout from the 1984 drought and Role of Intermediaries: Agents of Change Niger's 1987 transition to a democratic government. There were In an effective partnership, international donors and NGOs have also a range of smaller efforts taking place simultaneously that had a twofold impact on the spread of Niger's tree regeneration had an impact on the thinking of the government. One of the movement: promoting new land management practices among most important of these was a USAID project that partnered Niger's farmers and facilitating the government reforms that Niger's Forest Service with rural residents to manage a formerly enabled community experiments to reach national scale. "off-limits" national park using FMNR and soil and water The U.S. and German governments and the World Bank conservation techniques. acted as significant catalysts by providing intellectual input, The Forest and Land Use Planning project convinced the funding, land management expertise, and pressure for policy Forest Service that such practices were effective and could reform. In the 1980s USAID, GTZ, the French and Dutch actually create revenue for the state, as the partnership was based governments, IFAD, and the World Bank helped provide the around a sustainable wood harvesting cooperative that divided economic rationale for farmer-led tree regeneration by funding revenues between the Forest Service and local people (Gallegos research on the superior benefits of native vegetation, including et al. 1987:51­52). MIDP and CARE projects were also helping potential markets for forest products (Winterbottom 2008). the government realize the goals of its 1985 Plan to Combat While supporting soil conservation and tree management Desertification, thereby solidifying the effectiveness of FMNR programs, these donors also engaged the government of Niger in and these localized conservation techniques in the minds of a policy dialogue on sustainable natural resource management, government officials (Gallegos et al. 1987:24). stressing the need for community rights, laws providing secure In 1987, the transitional government created a Permanent resource tenure, and reform of both the forestry code and the Rural Code Secretariat to begin the process of revising the Rural Code, a body of law that applied to much of Niger and that included the provision establishing government ownership of trees. MIDP, USAID, and others worked with the new Inter- Ministerial Committee on Natural Resources, charged by the government to develop a new Code (Gallegos et al. 1987:25). The organizations were largely successful in their efforts, though formal legal changes took longer than hoped due to government instability. The Code that was signed in 1993 recog- nized both customary and formal land use rights and laid the groundwork for transferring tree ownership to property owners (McGahuey 2008). Legislation to implement the new code at the village level was passed in 1998 and came into force in 2004 (Wentling 2008a). For many farmers, having this sense of security about managing trees without fear of legal repercussions tipped the balance of self-interest in favor of embracing FMNR's simple, cheap, and effective practices. Prompted and assisted by foreign donors, the new govern- ment did not limit its reforms to the Rural Code. In pursuit of economic development and improved management of the country's beleaguered natural resources, it also overhauled the country's Forest Code, decentralization laws, Forest Service, and forest fiscal policy (USAID et al. 2002:42). The collective impact was to create an economic and social environment in which sustainable land management practices, such as FMNR and soil 154 T U R N I N G B A C K T H E D E S E R T role of forestry agents (USAID et al. 2002:42). Their advice was A Road Map adopted in the wholesale reforms of the 1990s described earlier. for Greening Africa's Drylands? USAID's involvement went well beyond advice, however. In the mid-1990s, the agency was deeply involved in helping Niger's The simple process of regenerating native trees, coupled with new democratic government formulate, implement, and progressive policy and institutional reforms, has proved an popularize its natural resource management reforms, through a impressively strong mechanism for leveraging transformational US$28-million agricultural development grant program. This development in Niger. The scope of its impact on one of the funded, for example, technical support for formulation of the world's poorest societies includes poverty reduction, economic Rural Code and the establishment of the Permanent Secretariat growth, agricultural and rural development, and improved to administer the legislation. The agency also funded all-impor- governance and health. tant efforts to publicize the code to millions of dispersed farmers Niger's overused farmland and barren savanna are visibly and herders. This included translating the text into the eight more fertile and resilient thanks to sustainable management major languages spoken in Niger and communicating the practices. And instead of the dire food shortages predicted by changes via radio and television (USAID et al. 2002:148). aid agencies as Niger's population boomed, farmers adopting While donors played their part at the macro level, in the field FMNR have displayed a new economic resilience that has it was the committed and long-term presence of NGOs and impressed development experts. "Although challenges remain, specialized agencies such as Serving In Mission, IFAD, and Care the resiliency, innovations and adaptations of rural produc- International that enabled FMNR to take root. By 2008, SIM ers...in the face of environmental and economic stresses... had worked with farmers in Maradi for over two decades, while provide encouraging prospects for progress," reported USAID the major IFAD projects in Aguié district had begun 13 years officials in 2007 (McGahuey and Winterbottom 2007:26­27). earlier. "After the food-for-work program ended in 1988, the only And progress need not be limited to Niger. For other Sahelian tools at hand were persuasion and persistence," recalled Rinaudo. countries facing the triple challenges of population growth, "Having staff in the village and giving the same message over and desertification, and climate change, FMNR also offers a cheap over." In the early years, he added, the catalyzing influence of and effective model to improve farm productivity and reclaim individual MIDP figures and supportive Maradi forestry staff precious land from the dunes (Rinaudo 2005a:9). played a major role in fostering recognition and acceptance of the new farming practices. Without the efforts of such intermedi- aries, FMNR might not have reached the critical mass that resulted in its scale-up over much of rural Niger (Rinaudo 2008). More Food for More People Yet despite the extraordinary spread of FMNR and the signifi- cant benefits generated, population growth will continue to pose a major challenge to food security in Niger, especially against a backdrop of climate change. In the past 20 years, Niger's population has doubled to 14 million people, and it maintains one of the highest birthrates in the world of about 7.1 children per woman (Wentling 2008b:1; INS and Macro International Inc. 2007:xxv). By 2015, the population will rise to 18.8 million and the area of cultivable land per capita will fall further--from 1.45 ha to 1.12 ha per person (Wentling 2008b:6, 7). Yet already, even in the best harvest years, at least 1 million land-poor Nigeriens need food aid due to localized droughts or pest infestations (Wentling 2008a:5). Similar demographic pressures face Niger's neigh- bors, including Burkina Faso, Mali, and Chad. As a result, food production will become an increasing government and donor priority in the region, which makes higher agricultural productivity imperative. In this context, say development experts, FMNR has a major role to play in helping poor rural populations improve food security and ride out the present baby boom. "Niger appears to be a model in buying time," says Mike McGahuey. "FMNR has a track record of allowing people to (a) get more product and more diverse forms of product from the same amount of land and (b) maintain the productive capacity of that land even while more is being taken 155 LEARNING FROM NIGER'S RE-GREENING Sometimes costly technology is less important than patience and persistence. The FMNR approach has succeeded in restoring and improving vast swaths of land in Niger using little more than the time and persistence of the staff of NGOs and aid agencies. No new technol- ogy was involved, and no special seeds or other agricultural inputs, simply the willingness of the NGOs to support the first adopters of the practice and to take advantage of every chance to demonstrate the impact of FMNR to other farmers. Even with unexpected setbacks, these organizations stayed close to the farmers and kept encouraging them. The result, over time, has been the significant improvement of more than half the cultivated land in Niger. Tradition and fear are powerful forces that must be accommo- dated. The fact that most farmers who had allowed trees to grow on their land in exchange for food support later uprooted the trees, even after the benefits of that practice were apparent, demonstrates the difficulty of securing change in rural and traditional cultures. The NGOs and donors understood the strength of these traditions, and they overcame them with patience and perseverance. Livelihood improvements can also improve community stability. In rural Sahelian communities, the dry season leaves families seeking alternative sources of income and food. It is something of a ritual for men to leave the village for several months at a time seeking paying work in larger towns and cities. Not only does this exodus increase the pressure on those left behind, it decreases social cohesion within communities and commonly results in the introduction of diseases such as HIV when the men return. One of the important benefits of the increased productivity from FMNR is that it can provide more in-village economic opportunities for men and women, reducing the need to leave to seek work, and so enhancing community resilience. This is a benefit that we have seen in several cases studies in WRR 2008 and 2005. Simple methods of communication can yield significant benefits. from it. [Such] approaches... will be more and more important The widespread adoption of FMNR practices in Niger was, to a very for Niger and for other countries" (McGahuey 2008). large extent, due to simple word-of-mouth...what today is called "viral With two thirds of Africa either desert or drylands, this communication." The program began with a few brave souls willing to potential has not been lost on donors, neighboring governments, break with tradition. It expanded as neighbors witnessed the visible and international NGOs. While the vast, spontaneous spread of agricultural and economic improvements created by these changes and re-greening in Niger is unique, tree regeneration and soil and as farmers conversed about the potential benefits of leaving trees in water conservation projects have also been successfully imple- local and regional markets. Planned visits of farmers to FMNR commu- mented in other Sahelian countries, notably Burkina Faso, Mali, nities resulted in a continued spread of the practice. Today, about 5 Senegal, the Gambia, and Guinea (Winterbottom 2008). Organ- million ha have benefited; more than 250,000 ha of land that was once isation for Economic Co-operation and Development donor considered unusable is now producing crops, and a significant portion countries, working with the Club du Sahel and the Permanent of the nation's farmers are involved. Interstate Committee for Drought Control in the Sahel, have Inclusion is important. As communities in Niger began to adopt FMNR implemented successful programs supporting decentralized and water conservation practices, decisions about the use of common natural resource management, land tenure, and forestry code lands and tree protection were necessary. The inclusion of all affected reforms (Winterbottom 2008). parties, not just land-owning farmers--women, nomadic herders--was During the 1990s, USAID duplicated its policy reform critical for broad community acceptance of change and the effective- assistance to Niger in other West African countries, including ness of the new rules. Mali, Senegal, and Guinea, where it helped governments reform forest codes. These reforms recognized farmers' rights to 156 T U R N I N G B A C K T H E D E S E R T manage trees and to redefine the role of forestry officers as One opportunity to extend these cost-effective resilience- extension agents, supporting community-based management building techniques to more communities would be to integrate (USAID et al. 2002:42, 137). As in Niger, USAID also provided them into the National Adaptation Programmes for Action assistance in Mali and Senegal to help implement newly enacted (NAPAs) of the countries of the Sahel. The NAPAs are adapta- forest codes (USAID et al. 2002: 137). tion strategy plans written by developing-country governments Barriers remain, however, to achieving the level of scale-up under the United Nations Framework Convention on Climate for farmer-led natural resource management witnessed in Niger. Change (CNEDD 2006:3). FMNR can achieve many of the "Unfortunately, key enabling conditions are not yet fully estab- goals of Niger's current NAPA, but unlike the actions recom- lished in most countries across West Africa," says International mended in the present version, it would not require extensive Resource Group natural resources management (NRM) expert external technical and financial assistance (CNEDD 2006:7­8). Bob Winterbottom, who worked through USAID as Natural Another opportunity to increase the resilience that comes Resources Management Advisor to Niger's Ministry of with FMNR across the Sahel is a new international alliance of Environment from 1993 to 1996. "An important challenge for NGOs and research organizations that is developing a Sahel Re- donors and governments will [be] to reinforce their efforts to Greening Initiative. The Initiative will mobilize donor funding to reduce barriers to FMNR, such as high taxes on wood and build on the grassroots successes of FMNR across the West other `natural products' harvested and marketed by rural African Sahel (Reij 2008). populations, and...onerous permit requirements that discour- Niger's current government appears more capable than age investment in producing and marketing forest products" earlier administrations of instituting the new Rural Code to (Winterbottom 2008). allow for institutionalization of FMNR and other community Equally important in creating the incentive to change conservation practices across Niger. The new government's among farmers is granting secure land and tree tenure--still Rural Code Secretariat, created in 2006, is also getting consider- lacking in some West African countries--and the transfer of able support from donors (Wentling 2008a). It is hoped that the rights and authority to local communities to control access to lessons of the drought in 2004, which left many individuals and and use of natural resources. As Niger's experience has shown, communities that did not practice FMNR vulnerable, will help when farmers are given the rights and tools to control their own convince farmers who continue to clear their land indiscrimi- economic destiny, both land and people benefit. nately of the benefits of better management. But there are new challenges. Where tree regeneration is widely practiced, community and local governments need to act Creating Resilience to Climate Change to resolve conflicts over access to natural resources and property The Sahel has been identified as one of the areas most vulnera- rights to formerly abandoned land that has been restored ble to increased drought in a warming climate. While rains have (Winterbottom 2008). In particular, the rights of the more been relatively good in recent years (except 2004), the long-term vulnerable--nomadic herders, the landless, and women--to projections are for longer and more frequent droughts across the equitably gain access to the benefits of FMNR need to be region as global temperatures rise (IPCC 2007:444, 447­48). In strengthened (Tougiani et al. 2008:12­15). The gains made by the absence of effective natural resource management approaches the current generation of women, for example, could be eroded such as FMNR in Niger, this raises the threat of future famines unless Niger's inheritance laws are revised to enable land and approaching the devastating scale of the 1970s; it also promises livestock to pass from mother to daughter (BBC 2006). to further the desertification of fragile lands in the Sahel. Yet Nevertheless, in its proven impacts and ready scaleability, development experts and intermediary organizations are hoping FMNR and associated soil and water conservation practices that region-wide expansion of FMNR and other proven land provide a potentially transformative model for natural resource management programs will help the region increase its resilience management in the drylands of Africa and beyond. in the face of changing climate (Winterbottom 2008). Winterbottom notes: "The development community needs better models for poverty reduction and rural development that simultaneously assist these populations in adapting to climate change. The experience in Niger has demonstrated that incorpo- rating FMNR and other NRM practices are key elements of such a model" (Winterbottom 2008). Gray Tappan, a geogra- pher who measures the spread of FMNR across Niger, has seen these tangible effects throughout his travels: "[Adopting commu- nities] have become much more resilient to drought in the last 20 years because of the increase in vegetation cover. Crops can fail, but the farmers, the herders, have something to fall back on. And that is the trees--the wood, the fruit" (Harris 2007). 157 Successfully scaling up ecosystem enterprise requires a confluence of community-level and national-level actions. C H DRIVING AP THE TER 4 SCALING PROCESS SUCCESSFULLY SCALING UP ECOSYSTEM ENTERPRISES requires a confluence of community-level and national-level actions. As Chapter 2 points out, community stakeholders in ecosystem enterprises must find a compelling rationale for working together and an effective process for learning and applying new skills as a group. For scaling up to occur, this rationale and process must be effectively communicated to other groups in similar circumstances and supported by intermedi- ary organizations. At the same time, national governments, donors, and the private sector must provide an environment that nurtures small rural enterprises and removes some of the political, financial, and physical barriers they face as they struggle to break out of the confines of rural markets. This chapter looks at both these levels of action--community and national. It first examines the case studies from Chapter 3 to extract cross-cutting lessons on how successful enterprises are founded, sustained, and expanded. It then looks beyond the community level to probe challenges and enabling conditions at the macro level-- larger governance, financing, and infrastructure considerations that if left unaddressed will stymie the scaling up process. W O R L D R E S O U R C E S 2 0 0 8 1. Resource Tenure Need Not Be Perfect to be Useful THIS CHAPTER One of the biggest catalysts for new and scalable ecosystem In this chapter, we build on the basis of the case studies in Chapter 3, enterprises is a change in the resource tenure situation. The first deriving cross-cutting lessons from the cases, and then looking prospect of gaining new or more secure resource rights is often beyond the community level to examine several national-level actions more important than the precise form that tenure takes. That necessary to create an enabling environment for scaling up nature- said, the details of the tenure situation do affect the ultimate based enterprises. The chapter: sustainability of an ecosystem enterprise. In addition, the I ability to initiate a change in tenure can be a powerful act of Derives seven cross-cutting lessons from the case studies in Chapter 3. community empowerment. I Looks at the need to make rural markets more amenable to small nature-based enterprises by confronting elite capture, encouraging Access to resources is the bedrock of nature-based enterprises, competition, and rectifying tax and regulatory regimes that discrimi- and tenure enshrines this access in law and practice. The case nate against these enterprises. studies make it clear that a variety of different tenure modes I Examines the rationale for providing technical, research, and market- can underpin scaling up, though each mode has strengths and ing assistance to rural enterprises. weaknesses. In Namibia, for example, conservancies did not I offer an unlimited set of resource rights, yet the rights they did Argues that representation of rural concerns in national legislatures offer connected well with opportunities for viable enterprises must improve markedly if the current marginalization of rural produc- and with traditional livelihoods. But the more important factor ers in national policy is to change. was that conservancies offered a ready vehicle for indigenous I Argues that government line agencies must reorient their missions to communities to use their new tenure rights to their advan- emphasize service and to embrace community participation in tage--something they had never had a chance to do before. resource management decisions. They offered a new and powerful set of incentives for land use I and enterprise. Presents the case for a different approach to rural infrastructure Likewise, in Bangladesh the chief building block of the development--a community-driven approach specifically attuned to Management of Aquatic Ecosystems through Community local needs. Husbandry (MACH) program was the opportunity it gave I Examines current trends in rural finance and the government's role in communities to gain new resource rights in the form of 10-year making sure adequate financing and insurance are available for leases--leases they had formerly been shut out of because of small and medium-size enterprises. cost. In Guatemala, the 25-year forest concessions offered the only real possibility for forest communities to gain enforceable rights to what was until then a de facto open access forest. In Fiji, communities that adopted the locally managed marine area (LMMA) model were essentially voting to adopt a tradi- Extracting Insights from the Cases tional tenure regime that offered a social compact restricting open fishing access. The cases in Chapter 3 give a tangible expression to the power In all these cases, communities had to understand and act of giving communities a stake in managing their ecosystem upon the opportunity for a change in tenure made possible by assets, of providing for long-term and comprehensive capacity a change in government policy. In Namibia, for instance, development of ecosystem enterprises, and of creating politi- communities had to self-organize and formally apply to cal linkages and commercial networks to nurture these become a conservancy. The opportunity for tenure change then enterprises. The cases also contain a number of more nuanced became an organizing principle and catalyst for action. insights into the success of nature-based enterprises and the One lesson is that if communities themselves can take factors that allow them to scale up. advantage of a new tenure opportunity, scaling up may be more likely. That is because favorable tenure is the root of local demand, and the opportunity to change tenure is rare. Communities know this. In the case of state-owned resources like common pool forests or fisheries, this implies that govern- ments should establish clear guidelines for how communities may enter into substantive co-management arrangements that devolve real resource authority to them. Then governments must make it clear that communities themselves have the choice to adopt this new regime--a choice that was unavailable before and that rewards community initiative. 160 D R I V I N G T H E S C A L I N G P R O C E S S At the same time, although many forms of tenure can be 2. High-Profile Demonstrations acceptable as a basis for ecosystem enterprises, the precise form and Communication Help Scale Up Demand that tenure takes does have implications for the future. Not all As a catalyst for local demand and commitment and as a tenure regimes embody the same level of resource rights or the way of generating government and donor support, the power same tenure security. For example, there is no guarantee that the of a high-profile pilot project or demonstration that shows 10-year leases the fishing communities in Bangladesh now hold obvious and quantifiable benefits cannot be overestimated. will be renewed when they expire. In Niger, the government still Scaling up will not occur without good communication of holds primary ownership of many tree species, and there is no success stories. guarantee that government forest policy will not change the incentives once again for forest management. In Fiji, the govern- ment has been very supportive of LMMAs but has not granted One of the clearest roles that central governments and donors communities undisputed control of their nearshore waters. In can play in the scaling up process is creating channels to spread other words, the precise form that local resource tenure takes the successes of local enterprises and intermediary support does matter, insofar as it affects tenure security and benefits organizations (ISOs). Time and again, demonstration has been sharing arrangements. The details of tenure will therefore be a shown to be crucial to both quantitative and political scaling up. principal factor in the eventual sustainability of community Exchange visits that allow residents of outside villages to inspect ecosystem enterprises. Ultimately there is no substitute for successful community-led ecosystem enterprises are one of the strong, formal tenure arrangements with resource rights well most effective ways to inspire demand. Seeing results on the defined in duration and geographic extent. ground and meeting the people behind these results helps poten- tial adopters to orient themselves and relate their own situations to the social and geographic situation of the demonstration project. This allows them to build a vision of their own, to address pertinent questions, and to argue convincingly to others back in their home villages. 161 (See Box 2.1 in Chapter 2.) This has greatly increased the profile of these programs both internationally and in-country, raising their prestige and opening new channels for interaction and influence. More-formal research and documentation of benefits, methods, and challenges faced by these enterprises are also a criti- cal part of building their credibility and extending their influence. Indeed, in-depth ecosystem studies and economic analyses have proved to be highly influential among government decision- makers and funders pondering whether their investments have been worthwhile and whether they should continue to fund this model of rural enterprise. In other words, these are often the foundation of high-level "demand"--manifest in political commitment and funding--for scaling up a successful commu- nity-led project. For example, in-depth and candid reports on the conservancies in Namibia, the MACH program in Bangladesh, and the forest enterprises in Guatemala have stimulated great interest in the governance and enterprise innovations in these projects and have influenced subsequent funding commitments and natural resource management approaches by the U.S. Agency for International Development and other donors. 3. Capacity Follows Power Capacity-building for nature-based enterprise is pointless without real devolution of resource authority to local stake- holders. In fact, the devolution itself induces capacity, as those involved in the enterprise find a compelling interest in gaining new competencies and the opportunity to put these into practice in real time. Even when central governments accept the idea that devolving authority over resources can stimulate the prospects for rural development and poverty reduction, they are often reluctant to relinquish substantive management, regulatory, or budgetary powers to local communities. One reason they put forward is For those who cannot physically visit demonstration sites, that local organizations lack the technical knowledge and experi- such as donors, international NGOs, or government officials, ence to manage forests or fisheries properly without degrading communication of these successful cases in a variety of different them. Experience from the cases suggests otherwise and drives formats and depths can be nearly as effective. Today, websites home the point that success at community-based natural are one of the simplest and most cost-efficient means for resource management (CBNRM)--at least in the beginning-- communities--often with the help of ISOs--to spread the has more to do with putting proper incentives in place for local experiences of their pilot efforts to an international audience. action than with technical proficiency. When wildlife manage- ISOs such as Winrock International, the Watershed Organisa- ment power was granted to Namibian conservancies, they had tion Trust, and the Rainforest Alliance all have articles and little trouble reducing poaching because communities had a pictures on their websites documenting their work with reason to protect their now-valuable wildlife populations. exemplary community enterprises. Similarly, illegal logging and unsustainable fishing practices International prizes and awards also play a useful role in plunged in Guatemala and Bangladesh, respectively, when spreading information and building enthusiasm for new commu- communities had the incentive and powers to police their local nity-based approaches, especially for donors. For example, many resources. While there is little doubt that technical training of the best examples of enterprises that have successfully scaled should be a priority early on in the formation of ecosystem up have received recognition--and prize money--from the enterprises, there is no reason to use it as a reason to slow the United Nations Development Programme's Equator Initiative. devolution process or to put restrictive oversight policies in place. 162 D R I V I N G T H E S C A L I N G P R O C E S S Earlier and more complete transmission of resource how and what benefits are distributed among the group. In authority to local governments and other local organizations can Guatemala, the actual resource management scheme was not an achieve two ends. First, it can increase commitment to the new issue, even though only a minority of the communities had previ- ecosystem management regime by eliminating lingering fears ously made a living from the forest. Instead, it was a lack of about tenure security and management authority. In other business skills that held them back. words, it can increase local compliance with management rules Such growing pains are common, and they point to the in the short term as local empowerment is validated. Second, it importance of an initial institutional structure that is adaptable can provide the conditions necessary to more rapidly gain both and responsive enough to accommodate this maturation period. technical and social capacities needed to manage over the longer In Bangladesh, the structure of the Resource Management term. Experience is truly the most powerful teacher, and central Organizations fostered responsiveness by limiting executive governments can help maximize this learning environment by committee members to two-year terms and mandating that a mentoring rather than micromanaging. majority of the RMO members come from the ranks of the As mentioned in Chapter 1, institutional choice--which poorest--those with less than 0.2 hectares of land. local institution the central government devolves resource Investing in group visioning and trust-building exercises in authority to--is an important concern, with the need to recon- the formative stages of community enterprise development can cile the roles of local government and local resource user also help by increasing the cohesiveness of the group and its groups. But there is little dispute that substantial devolution to capacity to participate and resolve problems without a rupture. the local level must occur or the prime incentive for responsible In Bangladesh, communities went through two years of intensive nature-based enterprise will be absent. consultation before the RMOs were formed. Experiences of the By the same token, local institutions to which management Watershed Organisation Trust in India emphasize that this powers are devolved must be bound by their new responsibilities initial capacity-building is a singularly effective route to institu- as well as their new rights. In Guatemala, the initial rules govern- tion-building. In Guatemala, by contrast, the first concessions ing concession management were lax and ill enforced, which were hastily demarcated and granted amid political pressure to created problems of poor governance, exclusion of some protect the Maya Biosphere Reserve, with little consultation community members, and poor business management that took among local communities or forest management experts. years to set right. The effectiveness, legitimacy, and ability of the resource management institution to weather problems also depend on its relationship with other local organizations and levels of govern- 4. Local Resource Management Institutions ment. Care must be taken, for example, that newly empowered Require Time to Mature resource management organizations do not undermine the role of local representative governments in land use and business The local institution responsible for managing a natural development. In Bangladesh, this was avoided by establishing resource, whether it is a forest user group, watershed committee, Local Government Committees that brought together govern- or village council, usually requires a maturation period during ment administrators, elected local councilors, RMO members, which the structure and processes of the institution become more and local wetland users groups to approve the RMO manage- representative and inclusive as well as better able to distribute ment plans. The interaction of the RMOs with these other benefits and costs equitably and resolve disputes fairly. institutions conferred legitimacy on the RMOs, making their role clear without introducing competition among the various The development of a capable local resource management insti- groups. This kind of harmony helps give new resource manage- tution is essential to the success of ecosystem enterprises. This ment organizations the space and support they need to mature. development includes establishing local legitimacy, setting proce- In Guatemala, on the other hand, municipal governments were dures for decision-making and consultation with community given no role or involvement with the new concessions, and the members, and designing processes for enforcing rules and resolv- stumpage taxes they had previously collected were redistributed ing disputes. These are all competencies that build and change to the new national park authority, creating resentment. over time as the practice of participation deepens and experi- It is important to note that the necessity for patience as local ence with the resource grows. If the institution that is given institutions mature into their role of natural resource managers management power over the resource is a new creation, this is frequently at odds with the desire by government or funders for maturation process may be lengthy. In Namibia, the general these institutions to move quickly to assume their new duties. outlines of the conservancy councils were set by the conservancy One of the challenges in scaling up nature-based enterprises is charter, but there had been no experience with such groups prior reconciling this pressure with the reality that institutional growth to the legal designation of the first conservancy, and little experi- usually occurs by modest increments. Experience shows that ence with participation. The same was true in Bangladesh with expecting too much from new institutions often undermines the novel Resource Management Organizations (RMOs). In progress rather than encouraging it. some Namibian communities, dissatisfactions have surfaced with 163 BOX 4.1 REDD AND COMMUNITY FOREST MANAGEMENT: REDUCING POVERTY, REDUCING CARBON EMISSIONS THE BENEFITS OF LOCAL NATURAL RESOURCE tion on Climate Change--the broad-based treaty that acts as a management and nature-based enterprises reach far beyond forum for international climate negotiations. Carbon emission the local or even national level: they can also help mitigate reference scenarios must be established. Monitoring tools must climate change. be created and implemented. Payment mechanisms need to be developed. A robust and accepted carbon trading market has to As we have seen in Guatemala and elsewhere, sustainable be in place (Myers 2007:18­19, 26­37). management plans that provide local populations with economic alternatives to converting forestlands for agriculture can be highly effective at protecting valuable forest resources, increasing forest cover, and providing a host of other ecosystem REDD Flag for the Poor services to the surrounding region. But even settling these and other technical issues does not The case study in Chapter 3 describes in detail efforts to estab- guarantee REDD's adoption or success. Experience shows that lish community enterprises in the Petén region of Guatemala, without careful attention to issues of equity and respect for based on sustainable management of designated forest conces- community rights and rural livelihoods, actions taken under sions in the Maya Biosphere Reserve. The program was PES programs can backfire, working against the interests of the designed to help alleviate poverty in local communities as well poor and failing to achieve their environmental objectives. A as to combat illegal logging and forest conversion in one of the recent example in Uganda illustrates the potential hurdles for last unspoiled forest tracts in Latin America. REDD-associated projects that ignore community concerns. The environmental benefits were realized within a few years of In Mount Elgon National Park, a reforestation program negoti- the program's start, with significant reduction in illegal logging ated in the 1990s between a Dutch nonprofit and the national and other forest degradation. Ironically, in the nearby national government was designed to offset carbon releases by Dutch park, which is a designated "no-harvest" zone, cutting for power companies. From the government's point of view, the tree agriculture and timber poaching have increased. An added planting would improve the landscape of the national park at no dividend is the potential for climate benefits resulting from the cost to the government, attracting more tourists. But the local improved stewardship of these forest resources. people who had been evicted from their lands in preparation for reforestation were unwilling to accept the new circumstances Climate change now dominates environmental discussions imposed upon them by the government. In 2006, after years of because of the profound effects it is predicted to have on fighting to regain their livelihoods, three communities were ecosystems around the world. In response, policymakers are granted a court injunction that overturned the evictions. After seeking fast, effective, and inexpensive ways to mitigate carbon moving back onto their lands, the farmers chopped down the releases. One strategy that has surfaced in international climate new trees. The Dutch nonprofit that managed the reforestation change negotiations is referred to as Reducing Emissions from project was helpless to secure its 12-year, US$4 million invest- Deforestation in Developing Countries, or REDD. ment, and the carbon benefits were lost as well (Faris 2007). REDD would function as a global payment for ecosystems What went wrong? This was a project dictated by the national services (PES) arrangement, wherein forest owners--either government, with no involvement by local communities. The states, communities, companies, or individuals--would be traditional tenure rights and livelihoods of local residents were compensated to lower the rate of carbon emissions from their ignored. None of the benefits generated by the project flowed forests below a given reference scenario by reducing forest to the local communities. cover loss. An effective REDD program could become one potentially important option within a menu of global carbon The outcome could have been different if the program was poor- reduction tools, since land use changes account for at least friendly and created community self-interest by recognizing the 20 percent of annual carbon emissions worldwide (Myers rights and needs of the local residents. If the local farmers had 2007:19; Huberman 2007: 6-7; IPCC 2007:543). It is been given the opportunity to earn their livelihoods through unlikely, though, that REDD will ever become a major source sustainable management of the new forests or by combining of revenue to countries or communities. tree planting with their traditional agriculture in an agroforestry scheme, both the economic needs of local residents and the There are certain technical issues that REDD must satisfy, environmental goals of the government and investors would however, prior to being accepted by the UN Framework Conven- have been served. 164 The Lessons of PES Community-Based Forestry: A REDD Primer There are important lessons from this and other PES experi- The international development community has a central role to ences, as well as from the community-based natural resource play in assuring that REDD is carried out in an effective and management enterprises described in this report, that could pro-poor manner, first by supporting community-based forestry. help orient REDD so it can better achieve its goals. By framing Providing this support can bring economic and social benefits REDD initiatives as both pro-poor and pro-environment to communities while reducing carbon emissions. Community projects, unintended consequences that could undermine the forestry projects can also help build the capacities and project in the future have a better chance of being avoided. The resilience of forest communities, making them more capable of Uganda example makes it clear, for instance, that tenure and handling a REDD project down the line. And such efforts need governance issues cannot be ignored. Creating a community not wait for REDD's complicated technical questions to be "stake" in a project nurtures the self-interest that inspires sorted out. community involvement and responsibility. NGOs might also work to establish performance metrics for Another lesson is that payments to communities under a REDD carbon mitigation that do not rely entirely on precise calculations compensation scheme must be substantial enough to make a of emissions created by deforestation. Such metrics could help difference in the household incomes of community members, developing countries to receive international funding outside of who otherwise are unlikely to participate in the program or follow the global carbon market--whether through bilateral or multilat- through on their commitments. This compensation may come as eral support, or through a global funding mechanism--by monetary payments, but it can also be complemented by capac- reducing their emissions, but without the stringent technical ity training or support to develop alternative enterprises. requirements imposed by REDD (Daviet et al. 2007: 5-8). Agroforestry and sustainable harvesting within community forests One way to make REDD's goal of reducing deforestation more would likely fit more easily into such performance metrics. amenable to low-income families is to allow them to pursue complementary land uses such as agroforestry, the collection of Finally, NGOs and donors can assist in developing social and non-timber forest products, and perhaps even limited timber environmental standards for REDD, using established commu- harvesting. This recognizes the fact that poor families are nity-based forestry programs to design social protocols and to unlikely to be able to live on PES payments alone and must test carbon release monitoring techniques. Doing so will mean pursue other activities to round out their livelihoods. The goal that if REDD becomes part of global carbon mitigation, commu- should be to make these activities as compatible with carbon nities, donors, governments, and NGOs will already have storage as possible. experience with effectively reducing carbon emissions while improving local economies and increasing social resilience. A third lesson is that entry costs to participate in REDD programs--such as licensing and certification costs--must be Building enterprises through community management of low if poor people are to participate. Otherwise, only large natural resources will certainly not solve all the challenges that landowners will be able to join. Prohibitively high entry costs REDD faces as a global PES system. Nor will it quickly result pose a particular problem in cases of contested tenure. Large in the large-scale projects that climate experts claim are landowners who can afford the certification costs may stake required to make a significant reduction in carbon emissions. claims over contested lands, thereby turning REDD into a tool Yet these enterprises can be encouraged right now ­ and they to solidify land claims where tenure has been unclear. can help meet REDD's major environmental aim while simulta- neously serving as a training ground to work out some of the program's technical issues. In this way, community manage- ment of natural resources effectively stands at the intersection of climate adaptation, carbon mitigation, and rural develop- ment. A well-designed REDD program may serve as one of a number of financial incentives to promote these management efforts in the future. 165 5. ISOs Provide Focus and Credibility when actual work began. Meanwhile, another ISO, Winrock International, helped design the innovative institutional Intermediary support organizations are often the most arrangement that included Resource Management Organiza- efficient way to focus local demand, help communities create tions and Local Government Committees. The strength of an appropriate local institution for resource management, these institutions and their applicability on a broad scale has and bring the attention and credibility to the local effort been a key element in scaling up the MACH program. that is needed to engage government and donor interest. ISOs have an ability to intervene with government, funders, and even the private sector to clear obstacles that otherwise As discussed in Chapter 2, ISOs have capabilities that are might stop a community effort in its tracks. In Niger, for especially suited to helping communities organize themselves. example, it was intervention by Serving in Mission (SIM) that ISOs typically have a very strong vision of the advantages of first led the Forest Service to relax its insistence on state owner- community-led resource management and, based on their ship of trees, giving farmers the incentive to allow native trees to deep experience with similar interventions, can articulate the return to their fields. Without the credibility of SIM, based on its possible benefits of working together to villagers who may lack earlier work in Niger, farmer-led regeneration would not have this vision. They can also be straightforward about costs and gotten off the ground. potential problems and therefore can act as an honest broker. The cases also show that ISOs can usefully work in consor- In addition, they have an understanding of the importance of tia to increase their effect. In both Namibia and Bangladesh, process and participation to building a firm foundation for groups of NGOs and other support organizations coordinated group action and can intervene when obstacles arise within the their activities under a single umbrella group, bringing their group. In Bangladesh, Caritas and the Center for Natural many different specialties together so that communities could Resource Studies were instrumental in setting up the initial find a range of interlocking services. In Namibia, the consultation process within communities to identify local 11 members of the Namibian Association of CBNRM priorities and develop a consensus on how to restore wetland Support Organizations even included the Ministry of productivity. These consultations were notable for their inclu- Environment and Tourism and a trade association, giving siveness and political savvy, which paid dividends later on conservancies significant access to the government bureau- 166 D R I V I N G T H E S C A L I N G P R O C E S S cracy and the business community. Working in tandem in this It may seem axiomatic, but without a clear, public, and fashion may be an especially effective model to support scaling ongoing commitment by government, no strategy to foster up across culturally or geographically diverse communities. In nature-based enterprises for poverty reduction can succeed. Guatemala, rivalries between the various international and Government is entwined in nearly every aspect of natural local NGOs working with the communities created the resource management--from granting resource tenure to opposite effect, with the fledgling enterprises failing to work regulating the transport and sale of ecosystem products. together and share best practices in the early years. Government's planning, permitting, and oversight roles mean its involvement is nearly always required, even when control over resources has been devolved to the local level. Govern- 6. Accountability Remains Important ment's potential to be an obstacle thus looms large as community-based organizations struggle to learn how to Part of the maturation process for local institutions and manage local ecosystems sustainably and profitably. enterprises is developing appropriate accountability mecha- But government as potential partner also beckons. nisms so that community interest in maintaining collective Government backing can support pilot projects, ease access to action persists. credit, make technical assistance available, and provide capacity development programs that train people in crucial One of the consistent lessons of successful nature-based enter- resource management skills. Government also brings a unique prises that scale up is that they maintain significant involvement synoptic view. It can look broadly at ecosystems regionwide to and trust of community stakeholders over time. Stakeholder identify resource trends and assess where there may be interest is influenced by many things, such as the value of the conflicts between resource users. It can also look broadly at resources being managed (the greater the potential benefits, the community-driven enterprises, and when it sees a promising greater the interest). But trust in community institutions is model it can help bring that to scale, bringing the state's fostered by transparency of processes and regular accounting for planning, budget, and communication powers to bear. decisions taken. In Bangladesh, all meetings of the Resource As we see in the cases, the role of a committed govern- Management Organizations are public, and most RMOs have ment, working in partnership with other key actors, evolves established a separate subcommittee to conduct financial audits from that of an institution that dictates to communities to one and discourage corruption. Biological and socioeconomic data that ensures that conditions are right at every stage for enter- are routinely collected and released so that the community, the prises to grow and prosper. In Bangladesh, the government government, and funders can measure progress and assess worked hand in hand with ISOs and communities to analyze benefits and costs. In addition, the two-year terms for executive the fisheries problems these communities faced, identify alter- committee members mean that elections--the most basic of natives to current practices, design and fund new government accountability mechanisms--are held frequently. and community institutions, and make skill-building Sometimes, accountability mechanisms can be as simple as programs available for low-income families. In Namibia, the a public billboard. In some state-funded watershed restoration Ministry of Environment and Tourism worked in tandem projects in India, local NGOs have used billboards with great with conservancies and ISOs to improve wildlife manage- effect to let community members know what kinds of public ment, create tourist infrastructure, and build tourism demand investments have been promised, how much they have cost so far, so that conservancies could capitalize on their wildlife and what benefits have accrued. resource. In all these efforts, government involvement Such accountability mechanisms may seem like just the extended over years and was at a depth that allowed promis- rudiments of responsible public action, but they are not trivial, ing programs to mature naturally. and they are not always easy for inexperienced community institu- Donors play a similar and complementary role. One tions to apply consistently. Training in applying such transparent key insight from the cases is the importance of determina- practices as regular audits and public reporting of decisions is one tion, patience, and long-term commitment on the part of aspect of capacity-building that should not be neglected. both governments and donors. The involvement of the US Agency for International Development in the Namibia, Bangladesh, Guatemala, and Niger cases provides a good 7. High-Level Government example, spanning at least a decade in each instance. Other and Donor Commitment Is Necessary bilateral donors like the UK Department for International Development and international NGOs such as the World No matter how well local demand is marshaled and local Wildlife Fund have shown similar persistence in these cases. capacity expanded, community-driven enterprises still Their mode of extended participation and financial support require active acceptance and participation of governments speaks forcefully to the point that effecting a permanent and donors in order to scale up effectively. change in the expectations and livelihoods of the poor requires a long-term approach. 167 W O R L D R E S O U R C E S 2 0 0 8 Beyond the Community Level: right policies can boost employment, helping to ensure viable Addressing Challenges at the Macro Level livelihoods for the poorest. The willingness of governments to confront the dysfunc- tions of rural markets must proceed from a genuine belief in Earlier chapters adopt a village-level perspective to nature-based the potential for rural small-scale enterprises to contribute to income, concentrating on the capacities that communities must national economic growth. For decades, government policies in develop and the actions they must take in order to create viable every natural resource sector--from agriculture to forestry to enterprises that reduce poverty. But for such a community- fisheries to mining--have favored large-scale producers at the centered model to succeed, a supporting environment of expense of rural small-scale producers. This is in spite of the functional national governance, accessible markets, and fact that small-scale rural enterprises are responsible for signif- improved physical and financial infrastructure is required. icant production and most of the employment in these sectors. Scaling up depends critically on actions that governments take to In India, small forest enterprises account for 87­98 percent of remove obstacles and provide support in matters beyond the all forest-related businesses and generate more than 80 percent local sphere. In the following sections we probe some of the of all revenues. Indeed, small and medium-size forest enter- macro-level changes needed to provide the necessary enabling prises frequently account for 80­90 percent of all forest environment to allow community-based enterprises to realize businesses in developing countries (Mayers and Macqueen their full potential and scale up their impact. The changes 2007:1­2; Molnar et al. 2007:1­10). Likewise, smallholders are needed to create that environment range from reducing the responsible for 90 percent of all agricultural production in influence of elites and implementing fair tax and regulatory Africa (WRI et al. 2005:35). In the burgeoning palm oil schemes to improving rural representation in national govern- business, smallholders account for up to 90 percent of total ments, making ministers more responsive to rural needs, and production in West African countries and as much as one third improving rural infrastructure. of production in Indonesia and Malaysia, the world's two It is an impressive and even daunting list, although it is by biggest producers (Vermeulen and Goad 2006:4). no means exhaustive. Behind these recommendations is the The rationale for states to favor large-scale over small- understanding, however, that many of the reforms called for scale operations has been predicated on the belief that the have been lacking for decades and that change requires new bigger outfits are more efficient and productive. Yet much incentives to alter policy and motivate conduct that is pro-poor. research points to the fact that small enterprises, when they This is not easy. Resistance to the kind of changes that would have the same level of technical help and financing as large create such an enabling environment is every bit as persistent as ones, can be both efficient and profitable. For example, small- rural poverty itself. This emphasizes the importance of consis- holder palm oil farmers with access to the latest technology tent and prolonged commitment by national governments to the have shown they can be as efficient as large-scale plantations goal of pro-poor development and the policy reforms that this and can achieve high net profits (Vermeulen and Goad 2006:6, requires. With genuine commitment from national leaders to 26, 28). Similarly, some small forest enterprises in Central alleviate rural poverty, real change is possible. America produce high-quality hard woods that are competitive and profitable in a global timber market dominated by larger producers (Molnar et al. 2007:43­46). Extending this produc- Rectifying and Expanding Rural Markets tive potential beyond a few successful rural enterprises requires Rural markets often possess a number of distortions that disad- state action to challenge elite capture of resources and reform vantage rural smallholders and communities that seek to market the regulatory and incentive structures that often determine nature-based products. Competition is often minimal, and whether a small business can get off the ground or instead villagers who produce nature-based commodities like charcoal or withers quickly. It also requires targeted assistance with coffee usually do not capture much of the eventual retail value of technology adoption, product improvement, business planning, their products. Governments have a vital role to play in making and market development. markets fairer and thereby able to yield greater income. The SMALL FORESTRY ENTERPRISES (SFES) PREDOMINATE Brazil China Guyana India S. Africa Uganda Number of SFEs (% of all forestry enterprises) >98% 87% 93% 87-98% 33-95% ­ SFE Employees (% of all forestry employees) 49-70% 50% 75% 97% 25% 60% SFE Revenues (% of all forestry revenues) 75% 43% 50% 82% 3% 60% Source: Mayers and Macqueen 2007:1­2 168 D R I V I N G T H E S C A L I N G P R O C E S S Confronting Elite Capture, capture most of the industry's profit, while woodcutters and Encouraging Competition low-level transporters and retailers work for subsistence wages. Elite capture of local resources often proceeds with the govern- In many instances, the capture of rural commodity chains is ment's tacit or explicit help. The more valuable the resource, enabled by manipulation of government regulations, often with the more prone it is to being used for political patronage, result- the complicity of officials. Senegal's charcoal barons, for ing in distortions in how resource concessions or access are example, have used their dominance of state forest licenses-- granted. Subsidies may be targeted to a privileged few who required of all who harvest, transport, or market forest qualify. Wealthy landowners or those with political influence products--to concentrate their power and control the charcoal have been very adept at using their power to exert control in market (Ribot 2008:2, 6). (See Box 4.2.) the countryside and squelch competition. In Indonesia, the Confronting anticompetitive behaviors such as these is a businessman Bob Hassan dominated the Indonesian plywood prerequisite for enabling rural nature-based enterprises to export market from the mid-1980s to the mid-1990s due to his grow. While the necessity of creating a "level playing field" close personal ties to President Suharto. As head of the for businesses has long been preached by development banks plywood trade association Apkindo, Hassan--with government and donors, many developing nations still lack basic competi- compliance --controlled plywood trade quotas and tion laws and have yet to act aggressively to police the commanded shipping and insurance monopolies that left little marketplace (Gautam 2005:6). Doing so means not only room for small forest operators to negotiate (Gellert adopting progressive laws and oversight practices; it also 2003:55­56, 64­68). requires that governments acknowledge the part their own Although Hassan's level of dominance may not be typical, regulations play in facilitating many anticompetitive behaviors the use of political influence and wealth to gain resource access and corrupt practices. Government has an obligation to ensure and discourage competition is still pervasive. Indeed, the rural that regulatory instruments such as production quotas, trans- economy is often beset with anticompetitive practices that end port licenses, and user fees are not abused through bribery or up concentrating profits in the hands of a few who dominate the patronage and are applied in a manner that widens access commodity chain. Collusion among leading businesses in an rather than restricts it. Greater transparency in the application area often leads to price-fixing in rural commodity markets or of such instruments is a necessary first step. the formation of cartels that control trade in natural resources (Molnar et al. 2007:64; Gautam 2005:1­2). These make it hard Adjusting Regulatory and Tax Regimes for smallholders to receive a fair price for their production or Unfair capture of natural resource opportunities is not the only labor and for small-scale enterprises to survive. In Senegal's hurdle that small businesses face. Over-regulation by govern- charcoal trade, a handful of high-level traders and brokers ment and unfair tax policies also constitute significant burdens 169 for many nature-based enterprises. The state has a clear role in Overzealous government oversight and micromanagement defining, encouraging, and enforcing sustainable natural of community enterprises amounts to resistance to true devolu- resource management. Based on its synoptic view of the tion of resource rights to local communities. It often stems from nation's ecosystems, the state must make sure that local resource fear by government bureaucrats that rural communities lack the exploitation patterns are compatible with the national vision for capacity--and therefore cannot be trusted--to manage resources resource management and, when summed together, do not responsibly and efficiently. This lack of "capacity" is used as an degrade the resource base. However, governments have a excuse to delay granting the necessary government permission, tendency toward heavy-handed regulation of community often without offering any avenue or resources for gaining the groups who manage natural resources. This often manifests as required capacities or meeting the required standards. The net strict prescriptions for "best practices" that communities are result is that the government retains its accustomed role at the required to follow or complex management plans that they must center of resource management (Ribot 2004:59­65). formulate before being granted the necessary permits to harvest An alternative to the over-regulation of community-based or carry out management activities. In many cases these natural resource enterprises would be to adopt a "minimum prescriptions are unnecessarily complex, do not respect local standards" approach. The national government would estab- institutions or capacities, and impose a severe financial burden lish a minimum set of rules or standards that community (Ribot 2004:54­59; Molnar et al. 2007:64­70). Thus, regula- members must follow in their management but would grant tions that may be appropriate for industrial-scale enterprises communities flexibility in how they meet this standard. For managing large tracts of forest or significant fishing fleets can be instance, environmental standards could be set for how much overkill for small community-based enterprises, resulting in a of a forest can be cut in a single year, what rare or endangered competitive disadvantage. species are not to be harvested, or what seasons are off-limits Under Cameroon's 1994 Forestry Law, for example, the for fishing in order to encourage spawning and stock replenish- requirements for establishing a community forest include creat- ment. On the other hand, all activities not specified in the ing a management committee with a constitution, mapping the environmental rules or not at odds with the environmental forest areas at issue and comparing them to the government's standard would be allowed without the need for a permit or overall forest plan, and submitting a forest management plan. management plan. This would reverse the current regulatory These steps have proved too complex and expensive for most structure in which only activities specified in the management communities (Ribot 2004:55). Similar planning and permit plan are allowed (Ribot 2004:56­59). obstacles plague forest users in many other countries, including Minimum environmental standards or targets could India, Nepal, Tanzania, Bolivia, Guatemala, Senegal, and the provide the flexibility that local groups need to adapt and Philippines. In Guatemala's community forest concessions in the innovate in their management without compromising sustain- Petén region, the overlapping inspection requirements of donors, ability. Of course, this would only be possible if reasonable international certifiers (the Forest Stewardship Council), and sanctions were in place for breaching the standards, such as government agencies burdened fledgling enterprises with high fines or temporary loss of harvest rights. As in any regulatory costs and hindered their transition to financial independence. In scheme, credible monitoring and enforcement would be crucial. 2007, a survey of community forestry enterprises worldwide Simplicity and clarity of the standards and the consequences of found that artificial and overdemanding rules for management failure to meet them would also be a key factor in the success of plans and other required permits and procedures--and the high this approach (Ribot 2004:56­59). costs associated with them--were major obstacles to the success In addition to their substantial regulatory burden, small of community-based businesses (Molnar et al. 2007:66­70). nature-based enterprises also commonly suffer from inappro- 170 D R I V I N G T H E S C A L I N G P R O C E S S FORMAL AND INFORMAL TAXES ON FOREST PRODUCTS, QUANG NINH PROVINCE, VIETNAM, 2004 Tax Assessed On Assessed By Receipt Amount Commune road fee Truck owner Guard station No 10,000-50,000 Dong per truck Village fee Trader and truck owner Village No 20,000 Dong per truck Commune resource tax Trader Commune Yes 50,000 Dong per truck Forestry inspection fee Trader Forestry inspectors No 20,000 (for trucks) / 250,000 Dong (for boats at port) Police fee Trader Police No 20,000 ­ 250,000 Dong per trader or truck State forest enterprise Trader State Yes Variable Value added tax Trader District Yes 5% Resource tax Trader District Yes Up to 13% Buy-from-afar tax Trader District Yes 10% Source: Thi Phi et al. 2004:13, 16­17 priate tax policies. In the upland areas of Vietnam, farmers Providing Technical, and traders of forest products are subject to as many as nine Research, and Marketing Assistance formal and informal taxes when they market their products, In addition to correcting market distortions, the government including road fees, village taxes, resource taxes, inspection must offer positive encouragement and support to expand rural fees, a value added tax, and a tax on forest enterprises. Road markets. Governments have a legitimate role in a number of taxes and the expected bribes at inspection stations alone can areas, such as helping to set product quality standards and add as much as 30 percent to the original farmgate price when undertaking product research--tasks that small enterprises are transporting goods to Hanoi, posing a serious threat to business ill prepared to perform. In the early 1990s, the government of and suppressing profits. So high was the accumulated tax the Indian state of Andhra Pradesh sponsored research on burden in Vietnam's Ba Che district that cinnamon traders karaya gum--an exudate collected from gum trees by poor finally abandoned the area (Thi Phi et al. 2004:13, 16­17). indigenous families in the state and used in the food and Even established businesses are impeded by such burdens. pharmaceutical industries. The state knew that karaya gum In the Compostela Valley in the Philippines, one prominent collection provided an important income source for many rural community forestry cooperative in business since 1996 has indigenous families, but poor gum quality suppressed the been consistently hindered by a combination of high regula- demand for the product, and poor harvesting techniques injured tory costs and a high tax rate on forest activities (Molnar et al. the trees, decreasing output and shrinking income potential. 2007:69). If small nature-based businesses are to be encour- Through a state-run corporation, Andhra Pradesh inter- aged, the aggregate burden of taxes, fees, and permit charges viewed karaya gum users and conducted lab and field tests on must be lowered. In addition, certain kinds of taxes hit small different harvesting, processing, grading, and storing techniques producers particularly hard, such as those applied at the point to determine appropriate product standards and pinpoint the of resource extraction. Reconfiguring the tax burden so that it optimum methods to harvest and prepare the product. The falls more heavily at points higher in the value chain could state corporation then organized training programs to commu- benefit enterprise formation without unduly reducing total tax nicate these new methods and distribute better harvesting tools. receipts (Molnar et al. 2007:64, 74). Due to these initiatives, the quality of the gum has increased Other distortions of the rural marketplace also affect considerably, the market has stabilized, and the market price per small ecosystem enterprises and may likewise need adjustment. kilogram has risen two- to threefold, depending on the grade of For example, governments frequently intervene in agricultural gum. Gum-related income has risen in step with the higher and forest markets by creating state monopolies to control the prices. In essence, a relatively small investment by the state sale or trade of nature-based products. In Vietnam's Ba Che revolutionized the traditional karaya gum trade and made it a Province, all producers of bamboo, pine resin, cinnamon, and more reliable and profitable business (IRG 2005:1­18). sandalwood must sell their product to the State Forest Enter- Supporting similar research efforts focused on production and prise for processing and trade (Thi Phi 2004:28). Until recently, quality concerns surrounding medicinals or the many other all coffee producers in Ethiopia had to sell their product natural products that form the basis of many rural enterprises through the national coffee auction (Dempsey and Campbell could presumably achieve similar increases in market potential 2006:2). While these entities can offer some stability of prices and family incomes. and an unambiguous outlet for products, they can also stifle The government also has an important role to play in intro- local initiative, suppress market prices, and impede the matura- ducing new technologies, improved seed and plant varieties, and tion of local enterprises. They constitute another level of state more effective resource management methods that rural produc- control that is not beneficial to rural entrepreneurs. ers would have trouble developing on their own. In Indonesia, 171 BOX 4.2 THE DIFFICULTY OF DEVOLUTION: SENEGAL'S STRUGGLE TO SHIFT FOREST MANAGE EMPOWERING LOCAL COMMUNITIES WITH rural councils. The 1998 Forest Code acted on this directive, resource rights seems straightforward, in theory. But trans- granting rural councils the sole right to exploit community ferring meaningful power over local resources to rural forests commercially but also requiring them to develop communities is often difficult in practice. Forest management management plans for their forests so that exploitation would in Senegal is a prime example. Senegal's legislature enacted follow good forestry practice (Ribot 2008a:4­6). substantive legal reforms in 1996 and 1998 that were intended to shift management and control over local forests from the In spite of these legal reforms, the old top-down forestry model Forest Department to elected local councils. But a series of has by no means died away. For one, professional foresters in obstacles has frustrated the intent of these laws and thwarted Senegal's Forest Department are not convinced that rural real decentralization of forest authority (Ribot 2008a:1). communities can manage forests adequately on their own yet-- or at least that they will manage them in the best interest of the Since the decentralization reforms, most rural communities nation (Ribot 2008a: 1-2). But a more fundamental reason for have seen little increase in their ability to earn forest income, resistance to the new community forest orientation is its poten- which was one of the intended benefits of the reforms. tial to change the dynamics of the nation's charcoal market. The Charcoal--made by the partial burning of trees--is the Forest Department has been a key player in a well-established dominant cooking fuel in Senegal's large cities and the princi- system of forest exploitation that is dominated by urban charcoal pal commercial output of Senegal's forests. Despite supplying merchants. The charcoal market is well oiled with money and lucrative markets with charcoal, the forest villages still cannot political influence, and the current set of vested interests is not profit outside of project areas that are under the protection of anxious to see this situation change (Ribot 2008a:iv). donors (Ribot 2008a:3). Under today's system, urban charcoal merchants and distribu- Since colonial times, forestry in West Africa has been marked tors have near-monopoly control over the market, allowing them by a top-down approach that has excluded rural communities to reap the bulk of the profits. The charcoal process begins from forestry decisions and economic gains. In Senegal, author- when a city-based charcoal merchant hires a team of migrant ity over forests was exercised by the state Forest Department to workers to harvest timber from a forest and convert it to serve the commercial sector and meet urban fuel needs. Forests charcoal on-site in an artisanal charcoal kiln (Ribot 2008a:3). were not managed to develop village economies. Over the past The charcoal is then transported by truck or train to cities such 15 years, Senegalese lawmakers have tried to address this as Dakar and sold to distributors, who in turn sell bags of imbalance through successive revisions of the forestry laws. In charcoal to individual retail vendors for eventual purchase by 1993, they blessed the idea of community forest management city residents (Ribot 2008a:17). by allowing rural councils--the elected bodies that represent the smallest unit of local government--to participate in manag- In this system, rural villagers reap virtually no income, because ing local forests. Under this plan, the country's Forest neither the merchants nor the charcoal crews are local. Village Department retained total control over the forest resources-- chiefs may receive some payoff from charcoal merchants, and allowing villagers to "participate" in the labor of management the charcoal crews may pay for lodging in village homes, but (Ribot 2008a:4­5). little else trickles down to the local economy (Ribot 2008a:4). In any case, the charcoal makers--whether local or migrant, In 1996 the nation enacted a major decentralization law that work for subsistence wages, while merchants and urban distrib- required the transfer of direct control over community forests to utors profit handsomely. In 2002, the average merchant reaped PROFIT DISTRIBUTION ACROSS SENEGAL'S CHARCOAL MARKET CHAIN, 2002 Actor No. of Actors in Senegal Average Net Profit Per Total Market Net Profit Distribution of Total Market Actor After Subsistence (US$) Net Profit (%) Subtracted (US$/actor) Woodcutter 9,827 134 642,930 15.9% Foreman 246 438 52,556 1.3% Merchant 640 3,815 2,196,053 54.3% Urban Wholesaler n.a. 2,922 876,461 21.7% Urban Retailer 3,306 326 279,256 6.9% TOTAL 14,018 4,047,255 100.0% 172 Source: Ribot 2008b. MENT TO LOCAL HANDS are allowed to cut without plans in areas assigned to them by local forest agents (Larson and Ribot 2007:200). The Forest Department also has other ways to exact its will. It has authority to require and to allocate permits to produce, store, and transport commercial forest products. It also sets the quota for how much wood will be cut for charcoal--a power it has long used as a source of political patronage and power-- and it determines which areas are eligible for cutting (ostensibly, with the permission of the local council) (Larson and Ribot 2007:199, 200). The Department uses these powers to put pressure on local communities. If a rural council questions whether to allow cutting for charcoal, local forest officials, merchants, and powerful political actors will contact the President of the council and usually bully or bribe him to give his permission to cut. Rural councils complain that, with no approved management plan of their own, they have little choice but to comply (Ribot 2008a:16). The result is that real Hauling charcoal in Senegal power over harvest and management of forests has not shifted to local communities as intended. a net profit of $3,815--nearly 30 times the $134 earned by those who cut and produced the charcoal (Ribot 2008b). The Senegalese experience demonstrates that without a reason- able set of rights to manage, use, and market natural resources, Because of the lack of economic benefits for local residents, nature-based income will remain out of reach. In this case, most are not in favor of letting their forests be cut for charcoal, forest villagers are barred from the charcoal market. But and their rural councils feel the same way (Ribot 2008a:7). Senegal's story equally demonstrates that entrenched economic Instead, many communities would like to enter the charcoal interests and their Forest Service allies can effectively block the market on their own terms and capture more of the benefits. empowerment process, even when progressive laws are in But they are blocked by the Forest Department. In the past place. Merchants, foresters, and local chiefs with a stake in the several years a few communities have been able to enter the Senegalese charcoal industry as currently configured have an market under the protection of well-financed development incentive to work against the empowerment of elected rural projects (Larson and Ribot 2007:197). But outside of the councils and their rural constituents, whose entry into the project areas the new laws empowering rural communities are industry will bring greater competition and will challenge the ignored and business-as-usual exploitation continues. merchants' dominance of the charcoal market. Although the new forest laws technically give rural councils the Changing this state of affairs will require dismantling the power to decide whether to allow cutting for charcoal in their policies that let the Forest Department undermine local author- forests, the Forest Department has found effective ways to ity and allow urban merchants to dominate the charcoal thwart this authority and maintain central control. For example, industry. That means abandoning the system of quotas and the Forest Service has set strict rules for the mandatory forest permits that concentrate market access in the merchants' hands management plans that rural councils must submit before the and loosening the requirements for forest management plans. state will grant them authority over their forests. Local commu- But the political reality is that this will not be easy. Further, nities find it nearly impossible to develop these detailed plans, when the laws and regulations are changed, the bigger job will which are expensive and, arguably, unnecessarily complex be to change practice--especially the culture of domination by (Ribot 2008a:7). In fact, to date only four rural communities forestry agents and urban merchants. The permit and quota have managed to submit plans acceptable to the government systems were, by law, supposed to be phased out in 2001, but since the 1998 Forest Code was enacted--and those were only the deadline has long passed. In January 2008 the Minister of completed with support from foreign donors. Without an Environment signed another decree promising to eliminate the approved plan, the Forest Department retains management quota--even though it was already legally abolished (Ribot authority over a community's forest (Larson and Ribot 2008b). Will the Forest Department relinquish its sources of 2007:200). In contrast, commercial charcoal harvesters do not power? If not, is the legislature prepared to force the issue? need to submit any management plan before harvesting--they 173 W O R L D R E S O U R C E S 2 0 0 8 government-supported nurseries are helping to free small-scale ment--as has happened in some cases--lest it become an palm oil producers from one of their key competitive constraints inadvertent barrier (Molnar et al. 2007:58). by supplying them with the same high-quality seed stock that large plantations use (Vermeulen and Goad 2006:33). Technol- COST TO PRODUCERS OF INTERNATIONAL CERTIFICATION (US$) ogy interventions need not be highly sophisticated or expensive to be effective. In central and southern Africa, significant Initial Certification Ongoing Costs increases in honey yields have been realized by introducing new beehive technology, such as replacing traditional bark or clay FSC* $7,500 Yearly Audit: $2000 hives with simple wooden structures with removable slats Documentation: $2,500 (Molnar et al. 2007:25; FAO 2005a:19­21). Compliance: $10,000 Government guidance and support should not be confined to Fair Trade** $780 application fee + Yearly renewal: $1,560 - $2,500 technical and production issues. It should also extend to business $3,125 certification fee. Compliance: Varies planning and market analysis--skills that are required early in the *Average for Oaxaca, Mexico community forests of over 4,000 hectares enterprise cycle. Local NGOs and intermediary support organiza- **For small farmer organization between 50 and 100 members: tions frequently take on the task of helping local enterprises Source: Molnar 2003: 17; FLO-CERT 2008. ascertain their markets and prepare business plans, but govern- ments can sometimes work at a higher level to coordinate these services. In The Gambia, the government adopted a stepwise Overall, the guiding principle in offering state technology, method of helping communities determine the most suitable forest marketing, research, or other services should be that these enterprises for them to invest in for maximum benefit. programs are rooted in the demand from local enterprises. State The program--called market analysis and development extension services are nothing new, but there is abundant (MA&D)--is directed at communities that have established evidence that many such efforts fail to achieve their goals. legally designated Community Forests under the state's commu- In Indonesia, for example, the government funds nearly nity forestry rules, which were put in place in the early 1990s. In 130 separate programs to support small and medium-size enter- each community, the MA&D method proceeds in three phases. prises, but evaluations suggest that few meet their goals. A First, community members, with the help of a facilitator, assess stronger element of local design would undoubtedly improve the the community's financial objectives and inventory their forest effectiveness of these programs (World Bank 2006a:xii). resources. Second, they identify potential forest products, evalu- ate their market potential, and select the most promising. In the final phase, the community crafts a business plan, explores financing arrangements, and is guided through a pilot phase of Improving National Governance the enterprise (FAO 2005a:9­41). It is not enough to catalyze good governance at the commu- One of the strengths of the approach in The Gambia is the nity level if this good practice is undermined at the national melding of practical and political concerns. The government level. Rural communities are often marginalized within saw its adoption of the MA&D program as part of its overall national policymaking, leading to a lack of policy attention effort to decentralize forest management and enhance forest that can work against community enterprises. This is true livelihoods. It integrated the practical step of building local both within national legislative bodies and within government business capacity with the political reform of creating Commu- ministries where the regulatory regime governing natural nity Forests, realizing that community forestry would only work resource use is forged and enforced. The result is that rural well if it resulted in real benefits to the local economy (FAO communities face a lack of representation of their interests, 2005a:1­3, 59­60, 63). often resulting in onerous regulations that handicap their Another way in which governments can help nature-based ability to manage local resources. At the same time, govern- businesses expand their markets is in the area of product certifi- ment line agencies often perpetuate a top-down mentality cation. Many small producers of coffee, spices, tea, timber, that can runs counter to the community-driven approach that vegetables, and a number of other commodities and crafts have is known to foster scaling up of nature-based enterprises. added value to their products by certifying them as organic, Fair While we concentrate in this section on the challenges of Trade, or "sustainably harvested." However, certification can improving rural representation and the importance of reori- constitute a considerable technical and cost barrier for small enting the attitudes of line agencies, we realize that many businesses. Governments can facilitate the process by making other steps are necessary to improve national governance for sure state regulations support and encourage certification and by nature-based enterprise, such as more complete decentraliza- providing technical assistance and even financial support in some tion of natural resource governance, less tolerance for natural instances. Certification is not likely to be useful or attainable for resource­based patronage and corruption, and greater access all enterprises, however, and governments should be cautious to judicial redress for the rural poor whose resource rights about making certification a requirement for resource manage- have been violated. 174 Revitalizing Rural Representation enterprises based on nature. This will require adjustments of in National Legislatures the legislative process itself. Most nations have national legislative bodies based on the In many legislatures the bond between citizens and their principle of representation, where legislators ostensibly repre- legislators is weak. In part, this is due to the lack of transparency sent the interests of citizens and are accountable to in legislative processes and the difficulty of getting basic informa- them--usually through elections. National legislatures are tion about what legislators are doing and how they are voting. In supposed to be the "People's House." They are designed to be most African nations, for example, votes by legislators are not the central government's main venue for articulating the recorded and parliamentary sessions are not broadcast on radio popular will in national decisions--a bridge between ordinary or television. Committee meetings are often closed to the public, citizens and their government. However, they can only fulfill this and special parliamentary reports or investigations are not mission if legislators perform adequately as representatives of routinely released to the public or translated into local dialects. their constituents' concerns (Veit 2007:10). This lack of information makes it difficult to hold legislators Unfortunately, legislators face a number of disincentives accountable for their actions (Veit 2007:20). Often the only way to actually serve the interests of their rural constituents. As a local constituents can judge the performance of their represen- result, they often do not use their lawmaking and oversight tative is by the "constituent services" they deliver--the direct powers to protect rural communities from environmental help that legislators sometimes give to constituents to address a exploitation or to argue their rural constituents' case for greater particular problem (Veit 2007:20­21). resource rights (Veit 2007:14). In a recent study of nine African While legislators may have weak accountability to their rural legislatures, the dysfunctions typical of such legislative repre- constituents, they are often quite beholden to more powerful sentation were clear. Across all the countries studied, there political figures, such as party officials, cabinet ministers, the were strong incentives to support executive branch and party president, or other members of the executive branch. In fact, the interests and few to represent local matters. Researchers executive branch routinely wields control over legislators through concluded that "legislators are not downwardly accountable to a combination of special favors and intimidation. On the one their electors, do not have sufficient autonomy from political hand, the executive can offer opportunities for career advance- bosses and institutions, and lack the authority and capacity to ment, such as a cabinet seat, an ambassadorial post, a position in effectively address their constituents' concerns." The result: local government, or an appointment to a key parliamentary many local views are routinely misrepresented in the legisla- committee. Many African nations maintain large numbers of ture, and thus rural concerns--particularly concerns related to presidential appointments for just such patronage purposes. the environment--are not well represented (Veit 2007:37­38). Uganda, for example, has 21 cabinet ministers and 45 ministers Correcting the legislative incentive structure and provid- of state. On the other hand, failure to support the executive can ing more direct and accountable representation is paramount bring various kinds of harassment and withholding of access and if legislators are to become forceful advocates for small rural money for constituent services (Veit 2007:24­25). 175 W O R L D R E S O U R C E S 2 0 0 8 Political parties are a second pole of influence that demands configured within the legislative and executive branches of legislators' attention. Party leaders often play a major role in government. For example, the accountability of legislators can deciding who will run for office, what committee positions legis- be raised first by simply increasing transparency and informa- lators will occupy, and what resources they will have access to. tion flow about legislative processes. Adopting Freedom of Party officials routinely pressure their members to maintain Information legislation is often vital in this regard. In addition, party discipline and follow the party line. This discourages legis- providing citizens with the authority to recall their legislator in lators from taking individual actions such as strongly defending the event of misconduct and shortening the terms of legislators local interests or opposing their party's stand on natural resource so that they must stand for election with greater frequency will issues, including resource concessions, royalties, and subsidies also tend to increase their responsiveness to the electorate (Veit (Veit 2007:25­28). 2007:41­42). Even in this environment of weak downward accountabil- Legislators' autonomy can be increased by limiting the ity and strong incentives to serve party and executive interests, influence of political parties; permitting independent candi- some legislators do become effective advocates for their rural dates to run for office and allowing lawmakers to switch constituents. But they often pay a political price. In 1997, a parties midterm would be a step in this direction. Curbing the Cameroon legislator argued against a forest management executive's influence could be pursued by restricting the agreement that the government had signed with a local forestry number of appointments he or she can make and requiring company near the Mengame Gorilla Reserve. The legislator that all appointees be confirmed by the legislature. Restricting objected on the grounds that the volume of timber the the executive's influence over the selection of legislative company was cutting was greater than it was reporting, while leaders such as the parliamentary Speaker or committee the benefits to his constituents--who lived in that area--were chairs would also help. Empowering the legislature to impose less than their due. Under pressure from the legislator, the sanctions on government officials for poor performance agreement was revoked and an advisory board--with some would increase the vital oversight function that legislatures members representing his constituents--was set up to help must perform in a healthy democracy (Veit 2007:40­41). guide management of the reserve and development in the Such political reforms are never simple, but they are surrounding communities. For his work against the administra- certainly not without precedent. Governments in Africa and tion, the legislator was later sanctioned by his party and elsewhere have already initiated wide-ranging political dropped from its list of candidates in the next election (Veit reforms in the last two decades that, if followed through, 2007:29­30). can empower legislatures, further decentralize power, and As this example shows, the current lack of effective and make it easier to stand up for rural constituents. In contrast, responsive rural representation is not inevitable, but it is deeply failure to strengthen rural representation will perpetuate the entrenched. Addressing the breakdown of legislative represen- competitive and political disadvantage that rural enterprises tation will require significant reforms of the way power is now face with respect to their urban counterparts. 176 D R I V I N G T H E S C A L I N G P R O C E S S Reorienting Line Agencies Capacity-building within the agencies themselves is toward Participation and Service obviously a crucial step in making this cultural transition. Few In spite of the move to decentralize natural resource rights, agencies have staff equipped with the professional skills most government line agencies often persist in their top-down useful in encouraging participatory processes, and few line staff approach to interacting with communities. For at least a decade, think of themselves primarily as service providers. Of course, proponents of community-driven development and community- requirements for community participation are not entirely new, based resource management have suggested that government and training programs on participatory methods have become bureaucracies responsible for managing natural resources must more common in recent years. But these have not yet prompted reorient their approach. A greater emphasis on delivering support fundamental changes in staff competence or attitudes. Bringing services and a greater embrace of community participation in about that kind of shift will require a new incentive structure that resource management decisions is necessary if community-driven rewards staff for attitudes that foster participation, such as enterprises are to be developed (Esmail 1997:55­58; Pozzoni and openness, tolerance, and adaptability (Pozzoni and Kumar Kumar 2005:22­23; Kolavalli and Kerr 2002:227­233). 2005:22; Kolavalli and Kerr 2002:228). Unfortunately, this goes against the culture and training of Indeed, many observers suggest that line agencies, to most natural resource line agencies, which are populated with remain effective in their new role, must make greater efforts to professional resource managers trained with a mandate to become "learning organizations" that give staff more autonomy manage the resource for production, not for community develop- to make joint decisions with communities and that encourage ment purposes. Line agencies' culture of control derives from risk-taking, innovation, and an ability to record and disseminate their traditional dominance of the planning process as well as lessons. Such an organization would be in a good position to help the regulatory system of permits, quotas, and licenses that is community-based enterprises tackle the management and central to production and marketing of natural resources. Partic- marketing challenges they face (Bainbridge et al. 2000:12­13). ipation and consultation threatens this control and is often seen as outside the agency's core competence, overly complex, and ultimately inefficient. It is not surprising then that, as one researcher noted, "though top-down planning has lost much of Improving Physical Infrastructure its luster in the past decade, it remains a powerful organizational One of the most profound obstacles to market penetration and reflex" (Howard et al. 2001:7; Kolavalli and Kerr 2002:228). commercial success for rural enterprises is physical isolation. Increasing the responsiveness--or downward accountabil- Roads and communication links to the outside world are notori- ity--of line agencies to rural communities will require a number ously inadequate in most villages, restricting the ability of of interlocking strategies. First is a redefinition of the mission of community members to send their products to market, to collect these agencies, with the focus shifting from control to facilitation and share market information, or, in the case of tourism, to and from product to process. Rather than conceiving and provide access to the customer base. In the mountainous measuring success in terms of production targets, the agency province of Benguet in the Philippines, rough roads make it a must now be seen as encouraging a fruitful decision-making jarring six-hour journey to the lucrative vegetable markets of process, balancing community and industry use of ecosystem Manila. Transportation costs and broker fees hit Benguet resources, and delivering capacity-building services that eventu- farmers hard, forcing them to sell their produce for five times as ally enable community-led production through local enterprises. much in Manila as in their home villages, reducing their compet- An important part of this mission shift is the acceptance that the itiveness without giving them any extra profit (Beattie 2007:1). timeframe for a given project or intervention will be lengthened Their plight is an example of how important the improvements to allow more time for capacity development and strengthening in rural infrastructure are to bettering the prospects for nature- of the local organizations that will become the frontline resource based enterprises. managers (Pozzoni and Kumar 2005:22). Governments have long known that economic growth Greater attention to community concerns and capacity requires infrastructure investment, and studies in developing development will not happen in a day. It can be hastened by countries have particularly identified the economic benefits of developing a new slate of performance indicators that reflect this roads and telecommunication networks to rural communities change in mission and by tying promotion and compensation to (ADB et al. 2005:79­82). Better roads and telecommunications these indicators. NGOs may be able to provide a useful service open new markets and attract new business investment, in by acting as community watchdogs, grading agencies on their addition to helping rural people serve their traditional markets services and processes (Kolavalli and Kerr 2002:228, 231). There better. Inexpensive mobile phone service, for example, has is also a part to be played by the media and other influential expanded the ability of poor fishers off the southern Indian coast parties, such as members of parliament or other government to market their fish, letting them contact wholesalers in a variety departments. Such actors can often exert indirect pressure to of local ports to alert them to the quantity and timing of their change ineffective attitudes and reward new approaches (Vania catch and allowing the fishers to bargain for a fair price (Sullivan and Taneja 2004:117). 2006:1). Improved road and communication infrastructure also 177 W O R L D R E S O U R C E S 2 0 0 8 gives rural people more access to government and financial The New Paradigm: services and a greater ability to participate in the political process Community-Driven Infrastructure and advocate for their interests (Jahan and McCleery 2005:11, 17). To meet the challenges of upgrading rural infrastructure, a new Infrastructure investments are especially important to the paradigm has emerged that accepts the need to approach such poor (World Bank 2005:74­75). Studies in India, for example, infrastructure with social and environmental sustainability in show that investments in roads are nearly twice as effective as mind. This requires being more sensitive to local demand and other forms of government expenditures in reducing rural more community-focused, drawing on a process of consultation poverty (Fan et al. 1999:39­41). In Vietnam, poor households with affected communities. As much as possible, it also enlists living in communes with paved roads have a 67-percent greater communities in building and maintaining new infrastructure chance of escaping poverty than those without paved roads (Ali and demands of them a financial commitment--typically 10 or and Pernia 2003:6). The poor often define their poverty in terms 15 percent of the total cost. This kind of community-driven of access to infrastructure such as roads, schools, and health infrastructure often involves smaller-scale projects that can be centers (Fan et al. 2004:26). planned and undertaken at a local level and then integrated into In spite of its recognized benefits, infrastructure investment larger infrastructure networks (Jahan and McCleery 2005:23­45; remains difficult and controversial, particularly as it has tradi- Torero and Chowdhury 2005:5; Adato et al. 2005:67­69). tionally been practiced. Large road, dam, energy, irrigation, or Small-scale, community-based infrastructure projects have telecommunications projects are often expensive, prone to shown that they can confer a variety of local benefits and can corruption, and subject to poor maintenance, increasing the better target these to the poor. In Bangladesh, a project to build ratio of costs to benefits. In addition, many infrastructure portable steel bridges across local rivers has greatly increased projects carry high environmental and social costs. While roads mobility in the communities that chose to participate. In the increase market access, for example, they also may encourage Savar area, travel times to the nearest market, school, and encroachment and increase competition for natural resources, hospital were cut by 75 percent, and travel costs fell by two make enforcing resource management rules more difficult, or thirds. Farmers are able to move their perishable products such raise local land prices, thus increasing land insecurity for the as milk more quickly and thus realize greater income and less poor. In addition, many rural roads are built not by the govern- spoilage. Women in particular have benefited from the small, ment to serve rural communities but by extractive industries for strategically located bridges and can more easily seek wage the purpose of tapping rural resources--often the same employment now; girls' school enrollment rates have also resources local enterprises would otherwise use. All these factors climbed with the increased safety of river crossing (Jahan and can work against the success of local nature-based businesses. McCleery 2005:35­36). 178 D R I V I N G T H E S C A L I N G P R O C E S S ties contribute a portion of the budget through cost-sharing, the PORTABLE BRIDGES SAVE TIME AND REDUCE COST bulk of infrastructure financing will appropriately come from OF MOBILITY IN SAVAR AREA, BANGLADESH state coffers. In addition, government expertise is needed to TIME (minutes) COST (taka) help communities evaluate the safety of existing infrastructure Before After Before After such as bridges and roads in the face of the increasing risk of Nearest school 60 15 15 5 natural disasters associated with climate change. Government Nearest hospital 75 22 20 7 oversight and facilitation will thus continue to be required even Nearest market 60 15 15 5 if local communities are given considerable budget authority Source: Jahan and McCleery 2005:35­36 over local projects. Governments must therefore carefully balance their coordination, oversight, and funding roles without One of the strengths of a community-based approach to unduly interfering in the conduct of decentralized, small-scale, infrastructure is that it often directs resources to problems that locally driven projects if they are to discharge their mandate to large-scale infrastructure programs ignore. For example, while provide the "built capital" that rural development requires. many national road projects are focused on building or upgrad- ing primary roads that connect villages and cities, recent research makes it clear that improvements in road infrastructure should not stop there. Feeder roads as well as a variety of infor- Providing Adequate Finance mal village paths and tracks are also crucial for the day-to-day transport that supports rural businesses and gives the poor Like all businesses, small rural enterprises need financing to access to natural resources (Hettige 2007:2­3). In Uganda, state bankroll their start-up costs and expand their operations as they investments in rural feeder roads are three times more effective mature. Yet access to such financing has traditionally been in reducing poverty than expenditures on paved roads, because extremely limited. Community-based businesses--particularly they directly contribute to greater agricultural productivity when undertaken by the poor--are characterized by high (Fan et al. 2004:47). Maximizing the effect of road-building vulnerability and lack of collateral, a financial profile that has left programs on ecosystem-related businesses thus requires reori- commercial banks reluctant to extend conventional loans to this enting them to include these crucial secondary routes--routes sector. Loan sharks were often the only available source of funds. that would be appropriate targets for community-based efforts. Today the microcredit industry has begun to address this Community-driven infrastructure projects also confer the financing void. Over the last three decades, small loans-- same kind of empowerment and engagement benefits that typically between US$20 and US$500--have become other community-based efforts do. Participation of community increasingly available to a range of rural and urban enterprises. members in planning and execution of infrastructure projects Inspired by the success of Grameen Bank and other similar builds a sense of collective ownership of the roads, water initiatives, a host of NGOs, credit unions, community-based works, or other infrastructure that is built. Cost-sharing and organizations, and government funds have entered the microcre- responsibility for long-term maintenance of the facilities dit market. The Microcredit Summit Campaign, a nonprofit reinforce this feeling and make it more likely the infrastructure dedicated to tracking these services for the poorest populations, will continue to deliver benefits in the future. Working together reported that at the end of 2006 there were 3,316 microcredit on infrastructure projects builds community solidarity and institutions worldwide, serving more than 133 million credit social capital in the same way that joint resource management recipients (Daley-Harris 2007:2). This growth--and much does (Jahan and McCleery 2005:36­38; Adato et al. 2005:xi). more--is necessary to finance any substantial scaling up of In fact, the two may reinforce each other, with small-scale nature-based enterprises. At the same time, the microcredit field infrastructure programs acting as a catalyst for a variety of has morphed into the broader "microfinance" industry, expand- local enterprises, and these enterprises in turn providing a ing into other financial services targeted to the poor, such as rationale for continued infrastructure maintenance. Conceived "microinsurance." Even remittances--the funds sent home by in this way, it is not hard to imagine that infrastructure invest- family members who emigrate to urban areas or to other ments, when appropriately planned and executed in a way that nations--have become a target of the microfinance industry, as meaningfully involves the user communities, can play a critical service providers try to reduce the costs and increase the impact role in scaling up nature-based enterprises. of these transferred savings. While the community-based approach to infrastructure The microfinance world is maturing in other ways as well. development has clear advantages, it still depends on strong Urged by governments and encouraged by the success of NGO support from national government to succeed. Infrastructure and government microcredit operations, commercial banks have networks clearly require high-level planning and coordination-- increasingly entered the microcredit field, servicing over 17 traditionally a government responsibility--if they are to provide percent of all microcredit customers (Gonzalez and Rosenberg transportation, communication, power, or water in an 2006a:6). The private sector role is growing across all forms of integrated and equitable manner. And even if local communi- microfinance. Many major banks are adding microfinance 179 W O R L D R E S O U R C E S 2 0 0 8 products, and commercial insurers are seriously considering how the lender's gross loan portfolio is unrecoverable (MIX to provide life insurance, crop insurance, and even health insur- 2008:44,53). Interest rates on microloans typically range ance in a "micro" form to a historically underserved and often between 18 and 70 percent, depending on the lending institution unreachable market. In the remittance sector, too, money trans- and the circumstances of the loan (Grameen Foundation 2007). fer operations are competing to attract immigrants' business, Attracted by the high repayment rates and interest rate forcing down the cost of sending remittances. This positive potential, private sector banks have been entering the lucrative feedback loop between migration and falling remittance costs and underserved microfinance arena in increasing numbers. pushed remittances to developing countries alone to an Large financial institutions like Citigroup, Deutsche Bank, and estimated $239 billion in 2007 (World Bank 2008). American International Group now provide wholesale loans to Against this background of change and expansion, govern- microfinance institutions around the world, and hedge funds and ment's role is changing too. While financing opportunities for governments have also begun investing in microfinance (Parks enterprises have definitely expanded, they still fall far short of 2007). Such is the interest in microfinance investment that the need. In India, for example, some 70 percent of small Compartamos, a high-profile microfinance bank in Mexico, held farmers still have no access to credit (World Bank 2007a:1). a successful initial public offering (IPO) of stock in 2007 to Overall, some 3 billion people could benefit from microfinance become a publicly traded company. Since the IPO, Comparta- services, but only about 500 million currently have access to mos' net income has risen 38 percent over the previous year them (World Bank 2007b:2). Governments must therefore (Compartamos 2007; Parks 2007). continue to encourage the expansion of the commercial micro- The financial resources and management skills that credit industry by providing the basic economic conditions this commercial banks can tap have brought new dynamism to requires: a stable macroeconomic environment and a legal microfinance, where 44 percent of all borrowers are now served system that is safe for investment. At the same time, governments by profitable institutions (Gonzalez and Rosenberg 2006b:3). must take a more robust role in regulating the microfinance Commercial banks also bring advantages that complement the industry and encouraging competition and improved products. capabilities of the NGOs and community-based groups that In addition, governments will need to remain involved as pioneered microcredit. For example, regulated banks are not investors themselves to make sure that the poorest enterprises are constrained by the same rules for accepting funds and accumu- served--a market that the private sector may never be able to lating profits that NGOs typically must follow. NGOs usually serve well (Hashemi 2001:1). have a more difficult time raising money to finance their loans, since they cannot technically accept deposits like a bank and must rely heavily on grants (FAO 2005b:34­35). Likewise, Helping Microcredit Mature savings cooperatives cannot usually tap commercial credit Microcredit has proved its effectiveness and profitability since markets and can only cover their loans by expanding their Yunus and his compatriots helped pioneer the concept in the late limited depositor base (FAO 2005b:34­36). Commercial banks 1970s. In 2006, microfinance organizations reported an average thus bring greater firepower and the hope of considerably loan loss rate of just .9 percent: on average, only .9 percent of expanding the credit pool. The entry of commercial banks into microfinance is not the only transformative change under way in the industry. The FIGURE 4.1 REACHING THE POOREST WITH Internet has made information on microfinance widely accessi- MICROCREDIT WORLDWIDE, 1997 ­ 2006 ble, connecting these institutions around the world to potential donors and investors. For example, the Microfinance Informa- 140 tion Exchange Market website contains detailed information on more than 1,000 microfinance institutions and 100 funders, dehcaersre 120 citing statistics on their portfolios, financial standing, and trans- 100 parency (MIX 2007). Even individuals can now invest in motsucfosnoiliM 80 microfinance. Via the Internet, the would-be investor can view the profiles of small entrepreneurs and invest online, receiving 60 repayment at the end of the loan cycle (Kiva 2007). This 40 increased information exchange has been instrumental in microfinance's recent growth, leveraging funds from both small 20 donors and large commercial banks like CitiGroup (Daley- 0 Harris 2006:13­14). 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 At the same time, new computer and mobile phone technolo- Total number Number of customers gies are helping to make loan payments and other transactions easier of customers making less than $1 per day and less costly. For example, mobile phones--already used by 3 Source: Daley-Harris 2007:22-23 billion people worldwide and increasingly penetrating rural areas-- 180 D R I V I N G T H E S C A L I N G P R O C E S S NEW VENTURES: LINKING DEVELOPING ECONOMY ENTREPRENEURS AND INVESTORS Private equity and venture capital funds are largely inaccessible to entrepreneurs in small and medium enterprises (SMEs) in developing economies. Yet such direct investment can be critical for the growth of these businesses, particularly in new, cutting-edge sectors. The scarcity of investors willing to research and take risks on SMEs in developing states--especially in rural areas-- creates a major gap in financial systems for the increasing number of enterprises that have outgrown micro-loans or have visions for their businesses that exceed what local group banking schemes can provide. Fortunately, there is a growing field of businesses and non-profits that are helping enterprises acquire private equity and venture capital and simultaneously providing them with the business and technical skills they need to grow. One such example of a "business incubator" program is New Ventures, a project of the World Resources Institute. New Ventures works with partner organizations in the Global South to promote the growth of SMEs. The process begins when New Ventures screens enterprises through a call for business plans in each of the countries in which it operates. Selected enterprises are those companies that demonstrate a sound business model and show potential to meet social and environmental goals through innovative, sustainable goods and services. New Ventures provides professional mentoring for the selected enterprises, including business development services, business plan development, and market- ing support, and convenes investor forums in which the entrepreneurs can pitch their enterprises to potential investors (New Ventures 2008a). The New Ventures "portfolio" spans many sectors and regions. It includes Indian medicinals company Gram Mooligai (See Box 2.6), Mexican-based AdobeTerra, which produces low-cost, environmen- tally-safe adobe-based bricks, and Brazilian EnerSud Ind e Soluçőes Energéticas, a manufacturer of small-scale wind turbines (New Ventures 2008b). Since its creation nearly ten years ago, New Ventures has helped 180 businesses attract US$120 million in investment (New Ventures 2008a). For more information, visit http://www.new-ventures.org. can help rural customers make their loan payments without traveling generally go beyond only providing finance, and they are more to the city, by using the services of "rural agents" like shopkeepers. likely to adhere to broad environmental or social objectives that Brazil currently has the most advanced system of banking agents, banks may neglect in their search for profits (FAO 2005b:36). with 74 different institutions managing about 90,000 "points of sale" In some ways, scaling up the microfinance industry repre- across the country (Taylor 2007; Siedek 2007). sents a danger to this larger development mission. Microcredit NGOs have come under pressure to grow their portfolios and Continuing Role for NGOs recover more of their costs, just like commercial banks. One Despite the new technology and the entrance of commercial response to this "mission drift" has been to try to separate banks, successful finance of rural enterprises still requires many "simple" (and profitable) microfinance loans from those that of the institutional skills that gave birth to the microfinance incorporate a wider array of development services--loans that industry decades ago. For this reason, NGOs and self-help are less likely to be suitable to commercial lenders and may need cooperatives retain an important role in the industry--as do to be subsidized. For example, the Bangladesh Rural Advance- governments. They are still in many cases the only providers of ment Committee (BRAC) developed two distinct loan microfinance services in the poorest and most rural areas or to products--one a straightforward microcredit line meant to be the most marginal borrowers. Just as important, their missions self-sustaining through repayments and the other a line subsi- 181 W O R L D R E S O U R C E S 2 0 0 8 environment that both attracts new financial institutions into areas where loan availability is still restricted and spurs compe- tition among loan providers in areas where microfinance is already well established. In addition, government plays a critical role in providing information and training for lending institutions. Lack of staff training is a serious obstacle for many smaller microfinance providers. Subsidizing staff capacity-building could help microfinance institutions cut costs, maximize their investment impact, and diversify their product portfolios. With the high volume of capital flows pushed through microcredit institutions today, it is important that this educational element is not neglected. Government, with its research, technical, and outreach capacities, is the logical entity to assume this task (CGAP 2007:11; FAO 2005b: 84­85). Meeting Increasing Needs As microcredit scales up and rural enterprises begin to grow, one emerging issue is how well the industry will serve mid-size businesses. Will an industry geared to loans of less than US$1,000 be able to provide larger loans as enterprises expand? Microfi- nance institutions tend to hesitate to underwrite such larger loans dized by donors and coordinated with the government to address because, ironically, there is greater risk associated with larger more complex poverty issues in the poorest segments of the enterprises due to their high capital costs and longer payback population (BRAC 2005a, 2005b). The second type packages periods. It would seem that these mid-size businesses may face a health care and various kinds of skills training with the loan so new credit shortage as they succeed (Farrington 2002:6). that recipients gain the capacity for enterprise--and for loan Yet competition and the natural evolution of the microfi- repayment. A high percentage of those receiving these loans nance industry seems to be filling this void. Where the "graduate" to conventional microloans later (Matin 2004:7­9). microfinance market is already saturated, institutions will look to the less-crowded mid-size market to continue their growth, as Major Role for Government is already happening in Bolivia. Institutions like BRAC are also Other innovative programs explicitly target enterprise develop- beginning to include business loans, ranging from US$20,000 ment among groups. Nepal's Micro-Enterprise Development to US$300,000, in their product lines (BRAC 2005a). The Programme (MEDEP) is a government initiative that partners presence of successful medium-size businesses may even attract with the Agriculture Development Bank of Nepal to provide loans banks to rural areas in order to service this sector. An important to "microentrepreneur groups" composed of low-income individ- role for government in this period of growth will be to develop uals selected primarily for their business potential. Before receiving and manage a credit bureau that assembles and disseminates loan funding, the group receives a staged series of business consult- borrower information, so that businesses with good credit histo- ing services and entrepreneurship training that helps them assess ries at the microfinance level are more visible. Having such a their potential market, gain marketing skills, and connect to appro- system in place can provide one more incentive for microfi- priate technology. In Nepal's rural Parlat district, almost 40 nanciers to take on bigger borrowers, propelling these percent of MEDEP's loans have gone to small-scale forest enter- enterprises to the next level (Mylenko 2006:3­9). prises like beekeeping, bamboo craft making, soap making, or the processing of various medicinals and forest plants. Among these Encouraging Microinsurance businesses, the loan recovery rate stands at 99.7 percent. The high Fostering small rural enterprises requires not just greater access repayment rate is a testament to the strength of packaging loans to credit but also a reduction in the substantial risks that these and business services together. Although MEDEP's loan adminis- enterprises face from accidents, natural disasters, and the ill tration costs have been high due to the expense of its training and health of the owners. Without credit, rural entrepreneurs cannot support services, the net profit appears sufficient to sustain the build their businesses; without insurance, however, they may not program, even though the loan rate is fixed at 12 percent--a very be able to survive hard times. Insurance is another way that low rate for microfinance (FAO 2005b:51­58). businesses make themselves more resilient in the face of threats. A major role for government in spurring the continued Conventional businesses typically combine insurance into the maturation of microfinance is to provide a stable investment package of financial services they rely on to stay in business, and 182 D R I V I N G T H E S C A L I N G P R O C E S S small rural businesses deserve no less. In addition, having insur- substantially more expensive, for example, this could pose a risk ance increases security and therefore promotes investment and to ecotourism destinations like the Namibian conservancies. growth of the enterprise--a positive cycle that enhances the Microinsurance is one way for nature-based enterprises to enterprise's viability and sustainability (Arena 2006:1­3). increase their resilience in the face of these threats. Insurance is especially critical for nature-based enterprises Microinsurance is not new. NGOs and community-based that will face increased uncertainty from climate change and organizations have provided microinsurance to some low- other factors beyond their control. Increased droughts and income customers for decades, and they currently cover about floods, changing geographic distribution of vector-borne 10.5 million people, primarily with health, funeral, or life insur- diseases, and more severe weather events are just a few of the ance. More recently, the corporate sector has joined in and now threats that owners of nature-based enterprises may face. Global commands the largest share of the microinsurance portfolio, economic shifts--now evident in higher food and fuel prices with some 38 million policies. Coverage is quite uneven, with worldwide--are also a source of risk. If fuel prices make flying policies mostly in a few countries like India, where the govern- LARGE-SCALE VS. COMMUNITY-LEVEL USE OF NATURAL RESOURCES: ARE THEY COMPATIBLE? In this volume, we argue the importance of natural capital for rural develop- should not pit these two approaches against one another, but ment. We present a model that relies on community-based development of acknowledge the place of both in economic growth. The first practical ecosystem resources to generate income for poverty reduction. But not all effect of this acknowledgement should be a commitment to include natural resources are exploited at the community level. National governments local interests in the decision-making process when resource tend to encourage large-scale extraction of natural resources such as miner- concessions or other large natural resource development projects are als, oil, fish, and timber as a source of government revenue through taxes negotiated. Too often, local communities are effectively left out of and royalties. In Guinea Bissau, for example, revenue from fishery access the process of determining the size, location, and operating condi- agreements for foreign fishing vessels provided 30 percent of all government tions for such projects, and are not compensated if they suffer losses revenue between 1993 and 1999; in Mauritania, 15 percent; in Săo Tomé, to their traditional livelihoods or lost opportunities for nature-based 13 percent (OECD 2007:55). enterprises. The process of inclusion and respect for local communi- ties is embodied in the practice of "free, prior, and informed Large-scale commercial exploitation thus has the potential to contribute consent"--or FPIC. It consists of giving local people a formal role in substantially to economic growth in many developing nations. Such extrac- decisions on large development projects that materially affect the tion is generally organized and regulated at a state or national level--with local environment. FPIC is a mechanism, like strong tenure laws, to the revenues accruing there rather than at the community level. In theory, help communities secure their resource tenure, or to receive reason- this large-scale, "top-down" use of natural capital can be an important able compensation if their tenure rights are involuntarily transferred source of development capital--and poverty reduction--if governments to others. It is one means to negotiate the interface between large- use these revenues to fund education, infrastructure, social programs, scale and local extraction modes (Sohn et al. 2007:6-8). or--as we suggest--the promotion of rural enterprise (OECD 2007:7-11). 2. A portion of natural resource revenues should be used to fund local But are these different approaches to the use of natural resources development priorities, particularly local infrastructure. With foresight compatible? Both exist side-by-side today, and both are probably neces- and planning, central governments can direct at least some of their sary to drive economic growth. However, large-scale extraction--through resource-derived revenues to activities that foster rural development physically extensive forest, fishery, or mining concessions--has the and reduce poverty. Done properly, this attempt at a fairer distribution potential to work against the interests of local nature-based enterprises of resource benefits can increase the prospects for successful local by competing for ecosystem resources or degrading the ecosystems enterprises if the revenues are used as development capital for local themselves, often aided by corruption. Forest or fishery development that roads, schools, and other basic infrastructure, or to fund microfinance leaves these ecosystems less viable or less available is not a recipe for or rural enterprise programs. In some countries, government policies rural resilience. Even when industrial-scale use of natural resources already contain a distributional formula for resource revenues. In brings jobs to local people, this may not enhance their resilience if it Nigeria, for example, 13 percent of oil revenues are returned to the decreases their opportunities for self-generated enterprises or fails to jurisdictions in which the oil was extracted (Veit 2008). Unfortunately, impart marketable skills that enrich their social and business capacities. experience shows that the existence of a "fair" distribution formula is Two principles should guide efforts to make large-scale resource use compati- no guarantee that revenues will be used wisely or to benefit the poor. ble with community-level uses and a contributor to rural poverty reduction: Much depends on the capacity of both local and central governments to disperse funds for community-driven infrastructure, education, or 1. Large-scale resource extraction should not undermine the prospects for other support programs. Developing this capacity for "distributional local enterprises, but co-exist with or support them. National policies equity" is a prerequisite for making large-scale resource exploitation both pro-poor and supportive of local enterprise and initiative. 183 W O R L D R E S O U R C E S 2 0 0 8 ment requires large insurers to sell a portion of their policies to FIGURE 2 GROWTH IN GLOBAL REMITTANCE RECEIPTS, poor people (Roth et al. 2007:31). 1990­2006 The percentage of poor people around the world with any kind of insurance remains very low--an estimated 0.3 percent in 300,000 Low income Africa, 2.7 percent in Asia, and 7.8 percent in the Americas countries (Roth et al. 2007:17, 18). But commercial interest in microinsur- 250,000 Middle income ance is growing. For instance, AIG Uganda and Delta Life in 200,000 countries Bangladesh now both carry insurance products targeted at the srallod poor (Churchill 2006:13). As with microcredit, insurance compa- SU High income countries nies have realized that serving the poor--or at least the noilli 150,000 M moderately poor--can be profitable (Roth et al. 2007:21). 100,000 But designing quality microinsurance suited for the rural poor is not easy. Insurers face high costs as they distribute their 50,000 products in areas where populations are spread out and commer- 0 cial insurance is unfamiliar. Verifying claims for these distant 1990 1995 2000 2005 clients creates high transaction costs. Companies must also deal Source: World Bank 2007e with higher costs when insuring the rural poor because there is typically low risk diversity among rural clients, meaning that 2007 internal and cross-border migrants from the developing many rural businesses in a given area may face losses from the world sent US$239 billion back to their home countries (World same risk, such as a cyclone. Bank 2008). This is more than double the official development assis- One way to cut costs is to make insurance plans for the poor tance (US$103.7 billion) provided to developing countries in 2007 simpler and more flexible. This is necessary for working success- (World Bank 2007c). The International Fund for Agricultural fully with small enterprises that must pay their deductibles across Development estimates that 80­90 percent of such remittances is a longer time frame because of the episodic nature of small spent meeting basic needs such as food, shelter, health care, and enterprise income (Churchill 2006:22). Group insurance plans other necessities. The remaining 10­20 percent is saved or are another effective means of cutting down on transaction costs. invested--potentially to finance a new business (IFAD 2007:7). And all rural insurance plans are most effective when a large It is hard to assess the impact of remittances on poverty insurer partners with a small, community-level channel to reduction or economic growth, but evidence suggests that even distribute the product and verify claims (Loewe 2006:44). These when these monies are not directly invested they have a strong local "agents" might be churches, post offices, employers, or local multiplier effect on the local economy (OECD 2006:155). In retailers (Roth et al. 2007:i). The most important qualities of the Mexico, one study suggested that for every remittance dollar "on-the-ground" partner are having both the trust of the spent in the country, the Mexican gross national product community members and the competence to educate and increased by about three dollars (Ratha 2003:8). Statistics also provide appropriate insurance packages to the local clientele. indicate that remittances allow more children--especially girls-- The ideal role for governments with regard to microinsurance to go to school and are often designated for this purpose by the may be similar to their role in providing microcredit. They must sender (World Bank 2006a:126, 2007d). foster an environment hospitable to investment and competition Governments are beginning to recognize the significant between insurers in order to ensure that premiums are driven down. development opportunity that these funds represent. Some are Government must simultaneously reach out to the poorest through partnering with so-called hometown associations--groups of targeted grants tied to training and partnerships with NGOs. migrants from a particular region who provide funds and Governments also play a critical role as providers of informa- support for their communities from abroad. Local or national tion about the industry to potential clients. This is especially governments might provide information to these associations important in developing countries where there is no insurance about their communities' needs, establish grant funds to match culture and where a mistrust of insurance exists (Trommersauser remittances sent home by the associations, or provide contrac- et al. 2006:513). And while insurance is an important way to tors for projects like constructing hospitals or schools. El promote investment and provide security for small enterprises, the Salvadorian hometown associations, for example, compete with government's primary focus within rural finance should remain on each other for matching funds from the central government to securing more basic finance options like savings and credit first-- complete development projects. As of 2004, US$2 million from and then building insurance into these finance channels. hometown associations had leveraged almost US$7 million from the government to complete 45 development projects, Leveraging Remittances for Rural Investment including infrastructure works and recreational and health facil- Remittances constitute the third growing form of finance for the ities (Orozco 2007:234­235). rural poor and a potential source of investment capital for rural Yet while individual and collective remittance funds enterprises. As noted earlier, the World Bank estimates that in clearly have a significant positive development impact for poor 184 Beyond Microfinance FIGURE 3 COST OF REMITTANCES TO MEXICO While access to credit through traditional banking or microfi- FROM SELECT U.S. CITIES, 1999­2007 nance channels is a clear necessity for the growth of rural 14 enterprises, it is not the only finance source needed for scaling Chicago )$SU up. As the case studies in this report attest, project funds from 12 Los Angeles government or multilateral donors remain an important part of ni(003$SU New York 10 the total funding mix for nature-based enterprises. 8 Particularly during the demonstration phase of new resource management strategies and the growth of nontradi- dnesottsoC6 tional industries like ecotourism, these external sources of 4 enterprise funding can provide crucial seed money, acting as 2 catalysts for communities. This makes them an invaluable tool in the initial stages of scaling up. Governments therefore have the 0 important task of integrating such public grant funding with the 1999 2001 2003 2005 2007 larger pool of traditional loan-based finance so that they Source: Profeco 2008 reinforce each other, creating a dynamic environment for the growth of rural enterprise. communities, the cost of sending remittances is high, and the Encouraging a variety of finance mechanisms for rural lack of other financial services such as savings accounts in rural enterprise is crucial in the shift toward community-driven devel- communities makes long-term investment of the funds less opment. However, consistent finance for rural populations is only likely. Fortunately, competition is lowering these costs, one part of a larger development effort that includes general especially in the most heavily used channels, such as between education, health, and infrastructure investments. the United States and Mexico (World Bank 2006b:137). The Education provides a higher return on investments because cost of sending US$300 from the United States to Mexico fell it gives rural citizens a greater capacity to innovate. Where young nearly 60 percent between 1999 and 2005 (from US$26 to people in rural areas use their educations to migrate, finances US$11), largely due to the entrance of banks into the remit- cycle back to rural areas in the form of remittances. Infrastruc- tance transfer business during this time (World Bank ture promotes microfinance investment by lowering the 2006a:137­140). transaction costs associated with working in rural areas (FAO As with microcredit and microinsurance, government has 2005b:84). Basic health services and sanitation take on added an important part to play in expanding the development importance because physical labor is at the heart, at least in the benefit from remittances and increasing their ability to finance early stages, of rural enterprise. Malaria, dysentery, and rural enterprises. Promoting competition within the remit- HIV/AIDS all reduce the productivity and the growth potential tance sector is a definite priority so that transfer costs continue of such enterprises. to come down. But governments must also be more active in Thus in addition to their many roles in encouraging encouraging group remittances for development purposes by microfinance and targeting finance options toward rural enter- establishing incentives like El Salvador's matching grant prises, governments must commit to meeting these other rural programs. With guidance and incentives, remittances could needs in order to succeed in their microfinance efforts--and become a more well directed and potent source of local invest- ultimately in their goal of growing the rural economy and ment finance. reducing poverty. 185 W O R L D R E S O U R C E S 2 0 0 8 SUMMING UP: DRIVING THE SCALING PROCESS S E V E N I N S I G H T S F R O M T H E C A S E S approach, in which the national government would establish a set of I rules or standards that community members must follow in manage- Resource Tenure Need Not be Perfect to be Useful. The prospect of ment but would grant communities flexibility in how they meet this gaining new or more secure resource rights is more important to the standard. In addition, reconfiguring the tax burden away from taxes scaling up of nature-based enterprises than the form this tenure takes, levied at the point of resource extraction could benefit nature-based although the precise form does have important implications for the enterprise formation. enterprise's sustainability. I I Provide Technical, Research, and Market Assistance. Governments High-Profile Demonstrations and Communication Help Scale Up have a legitimate role to play in helping to set product quality Demand. Scaling up will not occur without good communication of standards and undertaking product research, as well as introducing success stories. new technologies, improved seed and plant varieties, and more effec- I Capacity Follows Power. Devolution of resource rights induces tive resource management methods that rural producers would have capacity development, offering incentive and opportunity to gain trouble developing on their own. entrepreneurial skills. 2. Improved National Governance Related to Rural Enterprise I Local Resource Management Institutions Require Time to Mature. I Revitalize Rural Representation in National Legislatures. Rural The development of a capable local resource management institution communities face a lack of representation of their interests, resulting requires patience as the institution gains legitimacy and becomes in onerous regulations that handicap their ability to manage local more representative and responsive. resources. Rural legislators frequently lack autonomy from political I bosses and the executive branch and are not easily held to account ISOs Provide Focus and Credibility. Intermediary support organizations by voters for their actions. As a result, they often do not use their focus community demand and help create functional institutions with lawmaking and oversight powers to protect rural communities from the necessary technical and social capacities. environmental exploitation or to argue their rural constituents' case I Accountability Remains Important. Accountability of the local resource for greater resource rights or more appropriate regulations. management institution helps maintain the will for collective action I Reorient Line Agencies toward Participation and Service. Line and enterprise. agencies are typically dominated by professional managers oriented I High-Level Government and Donor Commitment Is Necessary. Sustained toward resource production rather than community consultation scaling up cannot occur without clear government and donor commit- or the development of small enterprises. Changing this situation ment over an extended period of enterprise development. will require redefining their mission to stress facilitation of community enterprise through capacity development and participa- tory decision-making. E L E M E N T S O F A N E N A B L I N G E N V I R O N M E N T 3. Improved Physical Infrastructure 1. Fair and Expanded Markets for Rural Enterprise I Adopt a More Community-Driven Approach to Infrastructure. Inade- I Confront Elite Capture, Encourage Competition. The more valuable quate roads, communication lines, and energy infrastructure are the resource, the more prone it is to being used for political patron- persistent and profound obstacles to rural enterprise. To meet the age, resulting in distortions in how resource concessions, subsidies, challenges of upgrading rural infrastructure, a new paradigm has or access are granted. Regulatory instruments such as production emerged that accepts the need to approach such infrastructure with quotas or permits are also frequently captured by those with influ- social and environmental sustainability in mind. This requires being ence. Many developing nations still lack basic competition laws and more sensitive to local demand and more community-focused, have yet to act aggressively to police the marketplace or confront drawing on a process of consultation with and participation of resource-related corruption. affected communities. Small-scale, community-based infrastructure I projects have shown they can confer a variety of benefits particularly Adjust Regulatory and Tax Regimes. Governments have a tendency targeted to rural enterprises and the poor. toward heavy-handed regulation of community groups that manage natural resources, often manifesting as strict prescriptions for "best 4. Adequate Financing practices" that communities are required to follow or complex I Help Microcredit Mature. The microcredit industry has achieved management plans that they must formulate before being granted impressive growth in the last two decades, attracting the interest the necessary permits to harvest or carry out management activities. of the commercial banking industry. Nonetheless, the availability In many cases these prescriptions are unnecessarily complex, do not of finance is still a main obstacle in rural enterprise development. respect local institutions or capacities, and impose a severe financial A major role for government in spurring the continued maturation burden. An alternative would be to adopt a "minimum standards" of microfinance is to provide a stable investment environment that 186 D R I V I N G T H E S C A L I N G P R O C E S S SUMMING UP: DRIVING THE SCALING PROCESS (CONTINUED) both attracts new financial institutions into areas where loan avail- rural clientele, coupled with a community-level distribution channel ability is still restricted and spurs competition among loan through local institutions like post offices or local retailers. providers in areas where microfinance is already well established. ILeverage Remittances for Rural Investment. Remittances are poten- In addition, government has a critical role in providing information tially a significant source of investment capital for rural enterprises. and training for lending institutions. Some emigrants have established informal development funds in IEncourage Microinsurance. Conventional businesses typically combine which they pool remittances and send them to their home towns to insurance into the package of financial services they rely on to stay in fund development projects. In turn, some governments have estab- business, and small rural enterprises deserve no less. However, the lished matching grants to encourage this kind of community range of microinsurance products available today is still quite limited. investment. Bringing down the high cost of sending remittances will Simpler and more flexible plans are required to serve a low-income be key in making them a more potent source of investment funds. 187 When ownership, capacity and connection are present, communities enhance their ability to manage ecosystems collectively and extract a sustained stream of benefits. RECOMMENDATIONS: C H ADVANCING AP ENTERPRISE TER 5 AND RESILIENCE THIS VOLUME OF THE WORLD RESOURCES REPORT PRESENTS in strategic detail an approach to addressing rural poverty initially examined in our last report, The Wealth of the Poor. The "poverty-environment-governance" construct intro- duced in that volume informs an approach that sets the stage for a community's first steps on a path to a better economic future. We argued there that poverty and the environment are inextricably linked and that the world's rural poor could enhance their livelihoods by capturing greater value from ecosystems. Income from sustainably managed ecosystems can act as a stepping stone in the economic empowerment of the poor. But that can only happen when poor households are able to reap the benefits of their good ecosystem stewardship. Better governance, beginning with improved and predictable resource tenure, is the catalyst. World Resources 2008 explores the model further. It argues that properly designed nature- based enterprises can not only improve the livelihoods of the rural poor, they can also create resilience--economic, social, and environmental--that can cushion the impacts of climate change, keep communities rooted, and help provide needed social stability. World Resources 2008 examines what is necessary to allow such nature-based enterprises to scale up so as to have greater impact on rural poverty. It identifies three critical elements: community ownership and self-interest, the role of support organizations in providing skills and capacity, and the importance of networks--formal and informal--as support and learning structures. W O R L D R E S O U R C E S 2 0 0 8 When these elements of ownership, capacity, and connection Yet it is precisely the interplay between the persistence of rural are present, communities enhance their ability to manage poverty and the inexorable trends shaping the twenty-first century ecosystems collectively and extract a sustained stream of that makes addressing this problem so urgent and important. benefits, unlocking the wealth potential of nature. In so doing This chapter outlines specific actions that governments at they build competencies that extend beyond nature-based enter- all levels can take to encourage the creation of nature-based prises, allowing them to expand their livelihood options beyond enterprises that build rural resilience as they reduce poverty. It reliance on natural resource income alone. also looks at the important roles that can be played in this This approach to rural economic growth and resilience process by donors, NGOs, and other institutions working on takes on added importance as we look ahead. The World Bank development issues, particularly with respect to encouraging the predicts that profound poverty will remain largely rural almost development of intermediary support organizations. until the end of the century (Ravallion et al. 2007:39). The In pursuing these actions, a primary goal is to fashion an nature of that poverty, and how the world responds, will be extensive web of support that can help rural enterprises gain the shaped by the larger trends at work right now. capacities they require to thrive. One of the most persistent Climate change will, by all accounts, have the greatest barriers they face is a lack of support services that can enable impact on the rural poor. Other forces also come into play. inexperienced communities to grow their business skills and An anticipated 50 percent increase in world population by their institutional capabilities at the same time. Associations and the end of this century will add to the stress on natural intermediary support organizations (ISOs) are elements of the resources. Increased consumption by a growing global web of support that rural enterprises require, but governments, middle class will continue the erosion of ecosystems, starkly donors, international NGOs, and other international organiza- documented by the Millennium Ecosystem Assessment in tions must also participate in delivering the capacity that 2005 (MA 2005). nature-based businesses need over the long term. Such support The emergence of new economic and political power centers services are key to turning budding rural enterprises into with often divergent and competing interests and values will likely engines for rural employment and wealth creation--the kind of make international agreement to solve problems more difficult. economic growth that will directly benefit poor families. 190 R E C O M M E N D A T I O N S : A D V A N C I N G E N T E R P R I S E A N D R E S I L I E N C E Cultivating Ownership and lower-cost forms of registration that provide an inter- and Increasing Demand mediate level of formalization in a timely manner. I Recognize customary tenure. National tenure laws need to explicitly recognize--and provide a means 1. Complete the Job of Decentralization. to register--local customary land rights, including communal tenure. Conferring resource rights on rural communities and individ- uals means devolving authority over these resources to the I Provide for long-term land leasing and local level. An important part of this process is decentraliza- tenancy. Governments should not neglect the impor- tion of natural resource governance to local governments. tance of lease and tenant arrangements to the poor and While devolution of resource rights directly from central should encourage long-term leases that can provide government to local user groups can take place without adequate tenure security. empowering local government, this is not a recipe for long- I Clarify co-management responsibilities and term success. Local government needs to be part of the mix. rights. National laws need to explicitly recognize the specific domain of co-management, where the state shares In concept, decentralization was accepted long ago by resource tenure with local communities or resource user most governments as an appropriate step to encourage rural groups. Co-management arrangements need to specify development and increase equity. Reforms over the last clearly how resource rights and responsibilities are divided quarter-century have accomplished the first steps in the and for what duration in order to provide adequate security decentralization process, delivering new mandates and some for local investment in good management. In addition, the new authorities to local governments. But in too many cases rights devolved must be substantial, with a better balance decentralization reforms have not been carried through to between local and state authorities than is contained in their logical or necessary conclusion. Political decentraliza- most current arrangements. tion has not always been matched by fiscal and administrative decentralization that empowers local govern- I Provide a functional dispute resolution ments to raise and allocate funds or to regulate local resource mechanism. Such a mechanism must link the exist- management. Central governments still play an outsize role ing customary and statutory mechanisms in a common in determining how local ecosystem resources are managed framework so that conflicting land claims can be settled and who will reap the benefits. As a result, local governments continue to suffer from insufficient capacity and authority to catalyze and support nature-based enterprises. 3. Support Pilot Projects and Help Communicate Successes. Central governments can help complete the decentralization process by defining more clearly local governments' roles as Governments, NGOs, and donors can all play a positive role decision-makers and arbiters of local resource use. This may in building demand for ecosystem-based enterprises. mean ceding greater budgetary authority and regulatory I Fund pilot projects and facilitate exchange control--such as permitting authority for resource use--to visits. These are among the most effective and cost- local authorities, while establishing clear criteria for trans- efficient means of demonstrating firsthand to community parency in spending and permitting to make sure local members the benefits of community resource management. governments remain accountable to communities. I Help communities communicate their successes. This can be done by providing assistance 2. Pursue Tenure Reform with message development, websites, and the publica- That is Flexible and Inclusive. tion of articles, photographs, and other communication tools and with dissemination of these products through Many nations have begun to tackle the considerable task of state and donor networks. increasing the tenure security of rural residents. On the basis of this experience, several lessons have emerged that should inform government actions. IConsider alternatives to formal titles. Land and resource registration is important, but traditional centralized titling programs have proved costly and contentious. Governments should explore broader approaches that use local institutions to execute simpler Continues on page 195 191 BOX 5.1 CLIMATE CHANGE AND THE POOR: RESILIENCE AND ADAPTATION OF THE 2.6 BILLION PEOPLE WHO LIVE ON LESS area--and the area's capability to respond or adapt (Burton et than $2 per day, almost 2 billion live in rural areas, in countries al. 2006:3) whose economies and people are most dependent on natural resources (World Bank 2007a:63; Ravallion et al. 2007:39). The countries that are home to the majority of the world's poor Efforts to meet the Millennium Development Goal of cutting (see Box 1.3: The Rural Poverty Imperative) are also, by and poverty in half in such areas are being stymied by the already- large, countries with the least developed economies and with a evident impacts of climate change, which has been called lack of financial and technical resources to support efforts to "today's crisis, not tomorrow's risk" for developing countries mitigate climate change effects. They are the least resilient, the (Alexander 2008). most vulnerable. While climate change impacts will be uneven around the globe, The poor have limited choices: they can stay where they are and the human impact will be greatest where the poor live-- manage the future that faces them with whatever means and countries at the lower latitudes. Whether the effects relate to mechanism they might have. Or they can move. Though migration food production, human health, desertification, or flooding, may be a necessary recourse for people confronted with conflict or location does matter as far as climate change is concerned persecution, it must be viewed as the option of last resort. (World Bank 2007b). The World Bank's recent assessment of poverty states that for Some examples of the expected effects of climate change: at least the next 80 years the majority of the poor living on less than $2 per day will live in rural areas (Ravallion et al. I Water will be the defining element of climate change 2007:26). That reality defines how the development commu- impacts: too much water in the form of more severe storms nity must manage the twin and inextricable challenges of abject and resultant flooding, as experienced in 2007 in poverty and climate change. Bangladesh, or too little, as with desertification--"poten- tially the most threatening ecosystem change impacting the For the almost 2 billion people already living marginal livelihoods of the poor" (MA 2005:4). According to the existences in rural areas, large-scale interventions are not Millennium Ecosystem Assessment, desertification is practical or likely. They must be better able to confront the new projected to get worse in Africa and Central Asia, and environmental conditions brought on by climate change so as to climate change is a key cause (MA 2005:1). More than 300 maintain and perhaps improve their own circumstances. million Africans, out of a population of some 930 million, live in drought or drought-prone areas (IPCC 2007:437). Adaptation to the natural variability in climate has been part of I rural life for centuries. Anti-poverty strategies that build on the The Himalayan glaciers are receding at an unprecedented natural resource base and engage the self-interest of the poor pace. More than 500 million people in southern Asia depend have shown the potential to provide a number of important on this previously predictable glacial melt for water, primarily benefits. As the case studies in this book detail, communities for agriculture. Now that source is at risk (IPCC 2007:493). that have developed nature-based enterprises have not only I Agriculture depends on water. In southern Asia, where improved their livelihoods, they have, over time, become more population growth is expected to add at least 1 billion capable, more adaptable, and more resilient as a result. people by 2050, various climate scenarios project decreases in rice and cereal production of up to 10 percent (UNFPA That resilience has many dimensions. There is economic 2007:91; IPCC 2007:480­481). resilience, as communities realize income from sustainable I management of natural resources, including smallholder A 1-meter rise in sea level--the minimum forecast for this agriculture. There is social resilience born of community century--has the potential to displace nearly 6 million engagement in the development and operation of such enter- people across South Asia, with Bangladesh's coastal popula- prises. And there is environmental or ecosystem resilience from tion most threatened. In East Asia, the outlook is even the improved stewardship of natural resources when they come bleaker: a 1-meter rise would displace more than 37 million under community control. people, mostly in Vietnam's Mekong and Red River Delta basins (Dasgupta et al. 2007: 2, 28­35). The case studies in this book describe programs that were not A recent report on adaptation policy options argued that vulner- begun in response to the threat of climate change, yet they had ability to climate change was a function of two factors: the the effect of providing communities with the skills and the tools degree to which an area is exposed--itself a function of climate to help them adapt to that threat. For example, the work of the conditions and the extent and character of the vulnerable Watershed Organisation Trust in India has already generated a 192 PROJECTED CHANGES IN AGRICULTURE IN 2080 DUE TO CLIMATE CHANGE Projected changes in agricultural productivity in 2080 due to climate change, incorporating the effects of carbon fertilization -50% -15% 0 +15% +35% No data Source: Cline 2007 range of important benefits--social and economic--for almost CHANGE IN AGRICULTURAL OUTPUT POTENTIAL, 2000-2080 500 watershed communities. Water tables have risen, more land can be irrigated, more livestock can be raised, and there is more paid work for those who do not own land. Other benefits Africa include increased crop variety, including new cash crops; Latin America increased income; and increased social cohesion as heads of families leave less frequently to find work elsewhere during Middle East & North Africa what used to be long dry periods. (See Box 2.4: Watershed Asia Organisation Trust, India.) Developing countries World At the same time that the livelihoods of village residents have improved, restoration efforts have made the environment on Industrial countries which they depend--the watershed--more resilient to the -20 -15 -10 -5 0 5 10 expected impacts of climate change. 2080s as % of 2000 potential Source: Cline 2007 The same holds true for the farmers in Niger. It has taken more than two decades to restore their agricultural lands to increased fertility and productivity. Now almost half the cultivated land in 250,000 ha of barren land to productive agricultural use. the country has been "re-greened," densely covered with crops, (See Chapter 3: Turning Back the Desert: How Farmers Have shrubs, and trees, all of which have contributed to significant Transformed Niger's Landscapes and Livelihoods.) increases in food production and improved economic circum- stances. Soil and water conservation techniques have resulted Niger is one of a number of countries in sub-Saharan Africa in elevated water tables, richer soil, and the reclaiming of over whose agricultural productivity has been predicted to be 193 BOX 5.1 CLIMATE CHANGE AND THE POOR adversely affected by climate change. While it is impossible to IAccess to economic and natural resources predict what will ultimately happen in Niger, we know that up to IEntitlements (property rights) half of the country's farmers have adopted land management techniques that make them far more resilient in the future. ISocial networks IInstitutions and governance The model of enterprise promotion outlined in this book holds promise for addressing the persistence of rural poverty. It IHuman resources appears to deliver other important benefits as well. In the most ITechnology recent Climate Change Assessment from the Intergovernmental Panel on Climate Change (IPCC), Working Group II identified the critical determinant of "adaptive capacity": the ability There are no guarantees, but experience shows that the poor, make the changes necessary in land use, economic activity, and rural communities that have nurtured robust nature-based social organization necessary to respond to climate change. It enterprises have, in the process, become more resilient to is worth noting that many of them are the same elements challenge and more capable of dealing successfully with necessary for establishing community nature-based enterprises. change in the future. The IPCC offered this list of determinants of adaptive capacity from the literature (IPCC WG II 2007:816): 194 R E C O M M E N D A T I O N S : A D V A N C I N G E N T E R P R I S E A N D R E S I L I E N C E 4. Facilitate Community Participation. Developing the Capacity Participatory processes have well-known benefits but require of Local Organizations resources and support in order to bring maximum benefits and inclusion. In providing this support, an important goal is 1. Foster the Development to change the power dynamics of participation so that the of Intermediary Support Organizations. interests of the poor are adequately represented--an evolu- Developing the capacity of local organizations involves tion that is both challenging and bound to be gradual. connecting them with financial and organizational resources, IProvide technical support for community exposing them to new technical and business skills, and helping resource appraisals. This can include mapping and them improve their inclusiveness and accountability to local work on geographic information systems, as well as govern- people. ISOs are often the most critical actors in this capacity- ment- or donor-led training in monitoring protocols for building process and therefore are key to helping local long-term resource tracking. organizations scale up their ecosystem-focused enterprises. IEncourage representation of marginalized Supporting the formation of ISOs and helping them meet groups on management committees. Govern- the many challenges they face should thus be a top priority ment mandates for formal inclusion of groups such as for governments and donors. The main challenges they face women or the landless on resource management or execu- include obtaining a sustainable funding supply, balancing tive committees can begin the process of acceptance and their different roles and relationships, culturing leadership, true representation of these individuals. communicating and disseminating successes and lessons IEncourage the formation of self-help groups. learned, maintaining a learning culture that is flexible and Informal associations can be powerful mechanisms for adaptable, and maintaining downward accountability to empowerment through capacity development and political local citizens. In recognition of the special importance this organization, helping marginalized groups articulate their report places on ISOs, actions that donors and govern- concerns within the larger group of resource users. ments can take to promote the growth and maturation of I ISOs are broken out below, as well as some steps that ISOs Provide impartial facilitation services for themselves can take to aid in their own development. community planning processes. NGOs are often well placed to help communities engage in productive dialogue, visioning, and planning exercises that must be Donors can: based on a foundation of trust. I Provide sustained funding. This funding should IEducate agency officials to respect commu- allow ISOs the flexibility to deploy funds as opportuni- nity participation processes. Government officials ties arise, realizing that the best ISOs are innovative and themselves often require training in how to elicit commu- opportunistic. nity participation, how to incorporate input they receive I Support leadership training. Providing funding from communities in government plans, and how to deter- and opportunities for off-site training can encourage mine what support services the state can offer. Incentives leadership development. Secondments are one very effec- are also required to help officials put into action what they tive means to accomplish this. This can also include have learned and to catalyze a change in agency culture. seconding staff from a funder to the ISO. ISupport community enforcement efforts. I Require accountability for outputs. This should Resource management involves rule enforcement. This is include regular reporting not just to donors but to citizens best done by the community itself whenever possible. But to encourage downward accountability to and feedback where the area to be managed is large or contains high- from local organizations. value but widely dispersed resources like wildlife or fish, enforcement may strain the capacity of the community. I Recognize achievement with awards. Awards The state can provide a service by training local community such as the Equator Initiative prizes can raise the profile members in enforcement techniques and providing logisti- and credibility of successful ISOs in national and inter- cal support when needed. national circles. 195 W O R L D R E S O U R C E S 2 0 0 8 Governments can: I Avoid demanding control at the project level. Governments should recognize that ISOs perform functions that governments themselves cannot readily accomplish. They should therefore endeavor, to the extent practicable, to not interfere with the work of ISOs but to sponsor and share responsibility with them through partner- ship arrangements that clearly define areas of authority. I Be responsive to the lessons that ISOs can teach. Allow space in the bureaucracy for ISOs to play their role and maintain open channels of communication with them. I Facilitate communication of ISO successes and lessons. This can be done by providing training in message development and media work, as well as by provid- ing government communication networks through which ISO successes can be disseminated. I Culture leadership and capacity-building through secondments to line agencies. As with donors, government agencies are often great sources of technical knowledge, policy analysis, and contacts that can IEstablish and avidly pursue a secondment greatly aid ISOs in their work. policy. ISOs must be proactive in seeking learning oppor- I tunities. Governments and donors are often eager Create a policy environment that favors the to share their areas of expertise. And secondments provide action of civil society organizations like ISOs. an unprecedented level of access and opportunity to This includes easing restrictions on NGO formation, regis- change agency culture. tration, and funding. I IMandate term limits for leaders. Establish a Encourage third-party evaluations to improve policy of a limited term for top leadership so that the accountability. Independent evaluations of publicly organization is forced to reckon with leadership develop- funded ISO work can not only provide extremely valuable ment. This is central to remaining a "learning feedback to ISOs, it can also make it clear to both ISOs and organization" and evolving beyond the vision and their clients that accountability matters. capabilities of the founder. IKeep a hand in local project work. This allows ISOs themselves can: the organization to keep in touch with current challenges on the ground and to keep its work as an intermediary I Diversify funding sources. ISOs must negotiate in perspective. a fine line between dependence and autonomy. They ICreate opportunities for clients to evaluate the should try not to "put all their eggs in one basket." On organization's performance. Creating accountabil- the other hand, they should not be desperate in their ity mechanisms will help ISOs maintain their status of search for diversified funding; they should be able to turn trusted intermediary, will provide real-time input so that down money that they realize will compromise their flexi- they can maintain the level of the services they provide, and bility or reputation. will make it easier to justify themselves to donors. However, I Reserve some unallocated funds. Keeping some it is important to acknowledge that, by their very nature, resources unallocated allows ISOs to respond rapidly to ISOs will never be accountable in the way that elected developing opportunities. officials or government agencies are. I Charge for services. This may improve the quality IPartner with a high-profile organization. of the service and may also raise the perceived value of the Association with a respected international foundation or service to the community clients. Charges must be organization can be an effective means to improve an ISO's commensurate with what users can pay. standing and promote its efforts to a wider or more influen- tial circle. 196 2. Provide Financial Support for New Associations. Fledgling associations are notoriously in need of financial support to establish themselves and begin to provide member services. Providing start-up funds can mean the difference between survival and failure. Whether such funds are provided by governments or donors, they should be granted without political interference and with the intent of develop- ing the internal governance abilities of the association. Funds should be gradually phased out to encourage financial sustainability and independence. 3. Extend Capacity Development and Support Services. As with other aspects of rural enterprise, lack of capacity is a leading obstacle to the growth of functional rural associations. I Advertise the benefits of associations. Conduct outreach and advertising campaigns to educate rural communities about the benefits of producer associations and to inform them of the capacity-building and support programs available to new organizations from government Promoting Enterprise Networks or NGO sources. and Associations I Support training in business and organiza- tional skills. Associations provide an ideal venue 1. Create a Policy Environment for offering training courses, both to increase the Conducive to Networking. functioning of the association itself and for the benefit of association members. Governments can help unleash the power of learning networks I Encourage the formation of learning and commercial associations by rectifying their legal and networks. The connectivity of association members regulatory structures. can be increased by providing web services and IEstablish a right to free association in the other communication tools, as well as seed funds for national constitution. This establishes the fundamen- regional conferences and other face-to-face encounters tal legitimacy of all forms of voluntary associations and between associations. hinders the government's ability to discourage them. ISimplify registration procedures. Registration helps formalize rural associations such as cooperatives and business consortia and provides a contact point for govern- Creating a National Enabling Environment ment assistance. Onerous registration requirements, on the other hand, can discourage their formation. I 1. Foster Competition Through Rectify national cooperative laws. National laws Appropriate Regulation and Transparency. governing cooperatives should be brought in line with the standards put forward by the International Co-operative As overseer of the national economy and regulator of natural Alliance and promoted by the International Labour resource uses, the central government has a responsibility to Organization. Doing so will help governments steer clear of make sure small rural enterprises are not held back by attempting to interfere with the activities and governance of uncompetitive practices or regulations and tax structures that cooperatives and other associations. puts them at a disadvantage I Enact and enforce basic competition laws. Many nations have not yet embodied basic market princi- ples in law or do not zealously enforce such laws they already have on the books. While law alone is insufficient to 197 W O R L D R E S O U R C E S 2 0 0 8 create open markets, basic statutes against price fixing and IUse greater transparency when granting the formation of monopolies and cartels are an important extraction licenses and harvest quotas. Reduc- foundation for oversight and redress. ing the use of these regulatory instruments as sources of I patronage is a priority. Transparency in how these instru- Reverse the bias toward large enterprises. ments are obtained and who has obtained them is just a State subsidies and access policies are often targeted toward beginning. Creating official avenues for enterprises to industrial-scale resource users rather than small-scale enter- pursue administrative redress when these instruments are prises. One step toward eliminating this bias would be abused is a second useful step. adjusting the procedures that govern the awarding of forest and fishery concessions so that community groups can IApply a "minimum standards" approach to compete for these concessions on an equal basis or be environmental regulations. Rather than binding granted preferred access to a portion of available conces- communities with a detailed list of resource management sions. Greater transparency in the concession process in requirements, states should consider establishing a set of general would be a good place to start. In addition, greater minimum environmental standards that communities must attention to including small enterprises in established achieve but should grant latitude in how they meet these subsidy programs or creating subsidies targeted to small standards. Such flexibility can keep small enterprises from enterprise development would also help create a better becoming bogged down in bureaucratic details that create balance between large- and small-scale producers. a significant regulatory burden but do little to increase I environmental compliance. Increase access to natural resources informa- tion. Too often, rural enterprises lack basic information IReduce the burden of resource and business on the availability, ownership status, and current usage taxes. Taxes and user fees applied at the point of resource patterns of ecosystem resources. Government has a extraction are particularly hard on small enterprises. Shift- special responsibility to make available to its rural ing some of the tax burden to points higher in the value constituents data on natural resource stocks and flows, on chain may reduce the tax burden on small enterprises resource tenure, and on market conditions for typical without unduly lowering total tax receipts. natural resource commodities and services--information IIncrease the ability of small-scale enterprises that can form the basis of resource management and to market their products directly. States intervene enterprise planning. in the markets of many of the forest and agricultural 198 R E C O M M E N D A T I O N S : A D V A N C I N G E N T E R P R I S E A N D R E S I L I E N C E products that form the basis of nature-based enterprises; 3. Reorient the Government Bureaucracy often, rural producers cannot sell their products except Toward Service. through state-controlled auctions or outlets. In the right If the government line agencies that deal with natural circumstances, this regulation can help regularize prices resources are to foster community-based enterprise rather and access to commodity markets, but in many cases it than thwart it, they must jettison old attitudes and develop squelches competition and restricts the entrepreneurial new skills that emphasize service delivery and shared space that rural enterprises occupy. Creating opportunities decision-making with local institutions. for these enterprises to go outside the state-controlled system and market their wares directly can expand their I Redefine the mission of line agencies. To market reach and provide an incentive for product change their culture, line agencies must begin by redefining improvement and innovation. themselves. Rather than seeing themselves as sole managers of natural resources, with an emphasis on production 2. Provide Long-Term alone, they must shift their focus to collaborative manage- and Integrated Enterprise Support. ment, with a goal of ensuring both a good decision-making process and sustainable resource use based on these Budding rural enterprises can benefit from a variety of decisions. This entails helping communities participate in support services sponsored by governments, donors, and local resource decisions and use local resources responsibly NGOs--from business development and marketing support for their livelihoods. to microfinance programs. Experience shows that these are I Establish incentives to change agency culture. more effective if administered as an integrated package, Translating this new mission into change within line where financing follows intensive skills development and agencies will require developing performance indicators business planning and where consistent follow-up is provided that embody the agencies' new goals and tying promotions as enterprises take their first steps. and pay to these performance measures, thus rewarding IProvide market analysis, business planning, staff for acquiring participatory skills and delivering techni- and mentoring services. A realistic view of the cal and advisory services to resource-based enterprises. market and a sound business plan to reach this market are I Develop staff capacity to work collaboratively often luxuries that small producers do not have the with local resource users. Agency staff typically resources or knowledge to undertake. Filling this gap can lack training in participatory methods, necessitating a greatly enhance an enterprise's chances of success. Business dedicated effort to develop and reward such skills. The goal mentoring programs have proved highly effective at reduc- should be to transform agencies into "learning organiza- ing the failure rate of new enterprises. tions" that reward innovation and collaboration and that IRegulate, but don't over-regulate, the microfi- culture cross-cutting skills that combine technical expertise nance industry. Microfinance has become a crucial with a mastery of process and social skills. part of the enterprise generation cycle in many rural areas. Although the microfinance industry has grown rapidly, further growth is required to fuel the expansion of nature- 4. Revitalize Rural Representation. based enterprises. Governments have a vital regulatory role, To compete against larger industries and urban constituen- providing oversight as the commercial banking industry cies and to gain access to larger markets, small rural enters the microfinance market, encouraging competition to enterprises need their legislative representatives to advocate drive down loan costs, and creating product standards that for their concerns more effectively and to make sure ensure that loan and insurance products are well designed. resource policies and regulations treat them fairly. Legisla- Governments can also assume an educational role, making tive reforms are needed to realign incentives for rural training available for smaller microcredit and microinsur- representatives and increase their downward accountability ance providers. to their rural constituents. IProvide professional business services for continuing support. Once support services are estab- Not all of these reforms are of the same degree of difficulty. lished, the need for them may persist for many years. One Some, such as increasing legislative transparency through of the most frequent shortcomings of enterprise develop- enactment of Freedom of Information legislation, may be ment programs is their lack of follow-up services, often accomplished in the short term--and have been in many leaving new enterprises without access to legal, accounting, nations. However, we acknowledge that other more substan- marketing, technical, and financial services they require to tive reforms, such as reigning in the power of the executive sustain themselves and expand. branch and of political parties, are more challenging and 199 W O R L D R E S O U R C E S 2 0 0 8 daunting and may require longer-term efforts and significant the scope of impact--geographically and by sector--widens. commitment. But without such major reorientation, rural And success, even partial, is compelling. representation will remain partial, at best, with respect to the Results are seen in communities with an improved quality of interests of the poor and their nature-based enterprises. life that can be measured--communities with skills and experi- . ences that can make them more resourceful and more resilient. I Increase the transparency of the legislative Improved stewardship of the natural resource base not only process. Rural constituents often face a surprising lack of creates environmental income, so that the community is stronger information about how their representatives have voted, financially, it also improves the resilience of the environment making it difficult to hold them accountable for their itself, rendering it better able to withstand potential future actions. Adopting Freedom of Information legislation is a impacts. Nowhere is that more apparent than in Niger and in the necessary first step to increase information flow. Opening improved watersheds in Maharashtra state in India. And finally, committee meetings that are now held in closed session and the skills wielded by the community as it manages its enterprises requiring that all votes taken and testimony given are builds a confidence--a resilience to the inevitable challenges to officially recorded and made publicly available in local come. The foundation for scaling up such community enter- languages would be additional small but significant steps in prises, whether geographically, as seen in India and Niger, or opening the sometimes arcane world of legislative proceed- financially, as seen in Namibia, is set when the project is nurtured ings. At the very least, these steps would allow the media at the community level. and NGO watchdog groups to report more accurately on To establish, nurture, and grow these natural resource-based legislators' actions. enterprises takes time and patience and the right policies. That I imperative often runs counter to the natural desire of donors and Restrict the influence of the executive branch. governments to show progress and claim success. If this approach The considerable influence of the executive branch over is to go to scale, it requires a long-term commitment, one that falls legislators often trumps constituent concerns. Curbing this on everyone's shoulders: government, funders, and the communi- influence--at least somewhat--could be achieved by ties themselves. The conventional criteria that define support of restricting the number of cabinet appointments (often used poverty alleviation efforts must change. as patronage) the executive can make, requiring these Tenure rights, properly framed and put in place, are appointments be confirmed by the legislature, and restrict- catalytic; the self-interest they create is critical. But just as ing the executive's influence over key legislative posts such important is how the benefits of that tenure--the income and as the parliamentary Speaker or committee chairpersons. other benefits that result from improved stewardship of I Limit the power of political parties over legis- natural resources--are allocated. Fairness and equity in the lators. The autonomy of legislators--and thus their distribution scheme validate the integrity of an enterprise, and willingness to take controversial positions in support of their that is critical in attracting the support it requires to be constituents--can be increased by making sure that sustainable and to grow. independent candidates are permitted to run for office and Both donors and ISOs have important responsibilities by ensuring that legislators can switch parties midterm here as community "buy-in" and active participation take without losing their seats. place in the early stages. Donors must ensure that funding is available on an "as needed" basis, when the time is right in the community to move to the next stage. ISOs are critical because of their role both in bringing skills to the community and in determining when it can assume more responsibilities. Culturing Resilience and Resourcefulness This stage involves the building of social capital--a process that allows the community to assume responsibility for an There is no iron-clad recipe for building the ownership, capacity, enterprise. Skills training and capacity-building to manage an and connection that can power successful community manage- enterprise are, in turn, the processes of building the human ment of natural resources, no formula for scaling up capital that will allow the enterprise to grow as other ecosystem-based enterprises. Circumstances vary considerably by challenges are met. Again, time is required for these skills to country and by community, and any set of recommendations is take hold and mature. bound to be incomplete. Nonetheless, this chapter has identified As the discussion in Chapter 2 details, and as the case a number of fundamental principles that can guide governments, studies in Chapter 3 illustrate, the role of government at every NGOs, and donors, and it offers a discrete set of actions based on level is vital to this approach. At its highest level, there must be these principles--actions that can help create an enabling an unshakable commitment to help the very poor out of their environment for rural enterprise. subsistence conditions, recognizing that it is in a nation's long- The evidence of success using this approach is scattered term self-interest to do so. That commitment should be and uneven. But the body of evidence continues to grow and reinforced by clear, continuous, and public affirmations. 200 R E C O M M E N D A T I O N S : A D V A N C I N G E N T E R P R I S E A N D R E S I L I E N C E But that is not enough; it is just the starting point. In Facing the Future addition to the specifics outlined in previous chapters there must Governments must begin to accept that the success of their be a change in how government sees itself in the process. broader development initiatives depends on increasing We argue that, for success, communities must "own" their economic, social, and ecosystem resilience. The large-scale enterprise, in that they see its success as their own success and trends that are shaping the natural world in this century must be thus make the necessary investments of time and care, supported accommodated in development strategies. by informed government policy. Government thus becomes an Climate change, increased demand for raw materials and enabler, providing the legal and other tools that allow these foodstuffs, and growing water scarcity are trends unlikely to enterprises to take root and flourish. Government, by and large, change in the foreseeable future. They will inevitably have their is no longer the director or the only decision-maker. That doesn't greatest impact on the rural poor, those whose futures are mean government and its officials are relegated to the sidelines. inextricably tied to the ecosystems in which they live. Rural It means that they assume roles of facilitation, service provision, development strategies must address these challenges head on. and guidance--roles that become critically important to the Nurturing and scaling up nature-based enterprises ability of enterprises to scale up. using the approach suggested in this report is an effective In fact, as Crispino Lobo of the Watershed Organisation route to building the resilience and resourcefulness that Trust has found in India, government officials who accept this rural communities and ecosystems must have to withstand new role of enabler realize greater attention, credit, and respect the certain challenges of the future. than they did when they were issuing orders and directives. Similarly, Guatemala's National Council of Protected Areas has won the trust of forestry enterprises in the Maya Biosphere Reserve by operating as a facilitator rather than purely regulat- ing their activities. However, the transition from top-down management to enabling local management and enterprise is not easy. It requires attention to and reinforcement by superiors, and the change challenges the most basic public perceptions of govern- ment officials. But the payoff is well worth it. This change of role may be uncomfortable in the early stages of an enterprise, in light of the important place we argue that ISOs must play in the development of the social and business skills required of a successful community enterprise. Seeing these intermediary organizations as allies rather than interlopers is part of that shifting government role. As outlined in this report, the array of challenges that rural enterprises must meet in order to succeed and scale up can appear overwhelming, even to the most committed of govern- ments and sponsors. However, we hope we have shown the distinctions among the various challenges, both in terms of timing and complexity. What is important is that the challenges are addressed in a manner appropriate to the enterprise and its move to scale up. Not all challenges can or must be met at once, and the sequenc- ing of activities and funding is essential. For example, improved watershed management programs may ultimately require build- ing new roads in order to market the higher agricultural production that results from greater water availability. But a new road to service urban markets may not be needed immediately, as local markets may be able to absorb the increased production for a time. On the other hand, increased provision of health care and upgraded educational opportunities could be necessary sooner to ensure the continued scaling up of the enterprise. Government as an enabling partner would be in a position to respond appropriately. Data Tables II P A R T 1Population and Human Well-Being 2Food and Water 3Economics and Trade 4Institutionsand Governance WORLD RESOURCES 2008 Data Tables Each edition of World Resources includes a statistical appendix, Millennium Development Goals (MDGs), which were established a compilation of country-level data culled from a variety of in 2000 to track global progress toward eradicating poverty and sources. This section presents some of the data required to build improving human well-being. Two other indicators--life a basic picture of the state of the Earth in its human, economic, expectancy and literacy rates--are elements of the United and environmental dimensions. In an increasingly interdepend- Nations Development Programme's Human Development Index ent, globalized world, a picture of the whole is needed to (HDI), which measures achievement of development goals understand the interactions of human development, population related to quality of life. In addition, this table displays the Gini growth, economic growth, and the environment. Index, a single number that captures the level of income inequal- The four tables in World Resources 2008 were compiled to ity within a country. Recent international attention to the issue of reflect the volume's focus on managing ecosystems to reduce global poverty through the MDGs and the HDI has lead to a poverty. The main text of the book explores how the strategy of substantial improvement in the quality of these indicators in the using the environmental assets of the poor to raise household past decade. income can be scaled up to achieve a major reduction of poverty. Table 2: Food and Water attempts to show the drivers These data tables support the volume's analysis by quantifying of global food and water consumption and the consequences for the poor's assets in terms of food, water, and human capital both the environment and human well-being. The intensity of while measuring background demographic, economic, and use of agricultural inputs--in terms of land, labor, water, and governance conditions. fertilizer--can be compared across countries with a reasonable The data tables in this edition of World Resources are level of accuracy. Unfortunately, reliable data do not exist on the a subset of a much larger data collection available online actual environmental impacts of agriculture, such as land degra- through the World Resources Institute's EarthTrends website dation and nutrient pollution. Similarly, while fish capture can be (http://earthtrends.wri.org). EarthTrends is a free, online resource measured, it is impossible to quantify on a country-by-country that highlights the environmental, social, and economic trends basis the extent of fisheries depletion. Water resources indicators that shape our world. The website offers the public a compre- are particularly sparse. Nonetheless, we can show the approxi- hensive collection of vital statistics, maps, and graphics mate availability of water resources and loosely tie these issues to viewable by watershed, district, country, region, or worldwide. human well-being with the composite Water Poverty Index. Table 1: Population and Human Well-Being Table 3: Economics and Trade shows the size and contains seven core indicators on population, health, education, sectoral distribution of national economies, along with some and poverty. Three of these indicators--poverty rates, infant basic financial flows: private investment, exports, foreign aid, mortality, and HIV/AIDS prevalence--are measured under the and payments to home countries made by laborers working 204 abroad. In order to capture a country's investment in future growth and development, Adjusted Net Savings is included in this table. Adjusted Net Savings--also known as Genuine Savings or Green GDP--calculates the "true" rate of savings of a country's economy by taking into account human capital, depletion of natural resources, and the damages of pollution in addition to standard economic savings measures. Table 4: Institutions and Governance measures, at the national level, the governing conditions that need to be in place for sustainable development: personal and political freedom, functioning property markets, responsible government spending, and access to information. Many of these indicators are inherently subjective and can only be captured through an index calculation. Therefore, rigid country comparisons of indices on freedom, corruption, and digital access are discour- aged. Unfortunately, many of the enabling governance conditions for scaling up the environmental assets of the poor cannot be measured comprehensively on a national level. Specif- ically, no data exist to measure security of tenure, access to resources, or the distribution of land and other resources to individuals, communities, and the state. General Notes The World Resources 2008 data tables present information for 155 countries. These countries were selected from the 191 official member states of the United Nations based on their population levels, land area, and the availability of data. Many more countries are included in the EarthTrends online database. Country groupings are based on lists developed by the Food and Agriculture Organization of the United Nations (for developed and developing countries), the World Bank (for low-, medium-, and high-income countries), and the World Resources Institute (for regional classifications). A full listing is available online at http://earthtrends.wri.org/searchable_db/general_notes. Comprehensive technical notes are available in the pages following each data table. In addition, several general notes apply to all the data tables (except where noted otherwise): I ".." in a data column signifies that data are not available or are IThe regional totals published here use data from all 222 countries not relevant (for example, country status has changed, as with and territories in the World Resources/EarthTrends database the former Soviet republics). (some of these countries are omitted from the current tables). I Negative values are shown in parentheses. Regional summations and weighted averages calculated with only I the 155 countries listed in these data tables will therefore not 0 appearing in a table indicates a value of either zero or less than match the published totals. one half the unit of measure used in the table; (0) indicates a value less than zero and greater than negative one half. IExcept where identified with a footnote, world totals are I presented as calculated by the original data source (which may Except where identified by a footnote, regional totals are calcu- include countries not listed in WRI's database); original sources lated using regions designated by the World Resources Institute. are listed after each data table. Totals represent either a summation or a weighted average of available data. Weighted averages of ratios use the denominator IWhen available data are judged too weak to allow for any of the ratio as the weight. Regional totals are published only if meaningful comparison across countries, the data are not shown. more than 85 percent of the relevant data are available for a Please review the technical notes for further consideration of particular region. Missing values are not imputed. data reliability. 205 1 Population and Human Well-Being Sources: United Nations Population Division; United Nations Educational, Scientific, and Cultural Organization; United Nations Children's Fund; Joint United Nations Programme on HIV/AIDS; World Bank Human Health Life Infant Percent Of International Poverty and Income Equality Adult Expactancy Mortality Adults Ages Gini Total Population Literacy Rate at Birth Rate 15­49 Living Index {c} Estimates and Projections 2000­2004 2005­ (years) (per 1,000 With HIV Percent of Population (0 = (thousands of people) {a} (percent) live births) or AIDS Living on Less Than {b} perfect Survey 2007 2030 Women Men 2010 2005 2005 $1 per day $2 per day equality) Year World 6,671,226 8,317,707 77 87 67 52 1 .. .. .. .. Asia (excl. Middle East) 3,727,146 4,491,264 71 86 70 .. .. .. .. .. .. Armenia 3,002 2,838 99 100 72 26 0.1 2 31 34 2003 d Azerbaijan 8,467 9,599 98 100 68 74 0.1 4 33 37 2001 d Bangladesh 158,665 217,932 .. .. 64 54 < 0.1 41 84 33 2000 d Bhutan 658 851 .. .. 66 65 < 0.1 .. .. .. .. Cambodia 14,444 20,761 64 85 60 98 1.6 34 78 42 2004 d, e China 1,328,630 1,458,421 87 95 73 23 0.1 10 35 47 2004 d Georgia 4,395 3,807 .. .. 71 41 0.2 7 25 40 2003 d India 1,169,016 1,505,748 48 73 65 56 0.9 34 80 37 2004 d Indonesia 231,627 279,666 87 94 71 28 0.1 8 52 34 2002 d Japan 127,967 118,252 .. .. 83 3 < 0.1 .. .. 25 1993 f Kazakhstan 15,422 17,142 99 100 67 63 0.1 2 16 34 2003 d Korea, Dem People's Rep 23,790 25,434 .. .. 67 42 .. .. .. .. .. Korea, Rep 48,224 48,411 .. .. 79 5 < 0.1 2 2 32 1998 f Kyrgyzstan 5,317 6,343 98 99 66 58 0.1 2 21 30 2003 d Lao People's Dem Rep 5,859 8,142 61 77 64 62 0.1 27 74 35 2002 d Malaysia 26,572 35,270 85 92 74 10 0.5 2 9 49 1997 f Mongolia 2,629 3,204 98 98 67 39 < 0.1 11 45 33 2002 d Myanmar 48,798 56,681 86 94 62 75 1.3 .. .. .. .. Nepal 28,196 41,742 35 63 64 56 0.5 24 69 47 2004 d Pakistan 163,902 240,276 36 63 66 79 0.1 17 74 31 2002 d Philippines 87,960 122,388 93 93 72 25 < 0.1 15 43 45 2003 d Singapore 4,436 5,202 89 97 80 3 0.3 .. .. 43 1998 f Sri Lanka 19,299 20,249 89 92 72 12 < 0.1 6 42 40 2002 d Tajikistan 6,736 9,434 99 100 67 59 0.1 7 43 33 2003 d Thailand 63,884 69,218 91 95 71 18 1.4 2 25 42 2002 d Turkmenistan 4,965 6,270 98 99 63 81 < 0.1 21 59 41 1998 d Uzbekistan 27,372 35,199 .. .. 67 57 0.2 2 2 37 2003 d Viet Nam 87,375 110,429 87 94 74 16 0.5 .. .. 34 2004 d Europe 731,283 706,907 99 99 g 75 .. .. .. .. .. .. Albania 3,190 3,519 98 99 76 16 .. 2 10 31 2004 d Austria 8,361 8,643 .. .. 80 4 0.3 .. .. 29 2000 f Belarus 9,689 8,346 99 100 69 10 0.3 2 2 30 2002 d Belgium 10,457 10,780 .. .. 79 4 0.3 .. .. 33 2000 f Bosnia and Herzegovina 3,935 3,653 94 99 75 13 < 0.1 .. .. 26 2001 d Bulgaria 7,639 6,224 98 99 73 12 < 0.1 2 6 29 2003 d Croatia 4,555 4,168 97 99 76 6 < 0.1 2 2 29 2001 d Czech Rep 10,186 9,728 .. .. 77 3 0.1 2 2 25 1996 f Denmark 5,442 5,602 .. .. 78 4 0.2 .. .. 25 1997 f Estonia 1,335 1,224 100 100 71 6 1.3 2 8 36 2003 d Finland 5,277 5,469 .. .. 79 3 0.1 .. .. 27 2000 f France 61,647 66,605 .. .. 81 4 0.4 .. .. 33 1995 f Germany 82,599 79,348 .. .. 79 4 0.1 .. .. 28 2000 f Greece 11,147 11,179 94 98 80 4 0.2 .. .. 34 2000 f Hungary 10,030 9,259 .. .. 73 7 0.1 2 2 27 2002 d Iceland 301 344 .. .. 82 2 0.2 .. .. .. .. Ireland 4,301 5,475 .. .. 79 5 0.2 .. .. 34 2000 f Italy 58,877 57,519 98 99 81 4 0.5 .. .. 36 2000 f Latvia 2,277 2,012 100 100 73 9 0.8 2 5 38 2003 d Lithuania 3,390 3,023 100 100 73 7 0.2 2 8 36 2003 d Macedonia, FYR 2,038 1,966 94 98 74 15 < 0.1 2 2 39 2003 d Moldova, Rep 3,794 3,388 98 99 69 14 1.1 2 21 33 2003 d Montegro 598 613 .. .. 75 .. .. .. .. .. .. Netherlands 16,419 17,141 .. .. 80 4 0.2 .. .. 31 1999 f Norway 4,698 5,366 .. .. 80 3 0.1 .. .. 26 2000 f Poland 38,082 35,353 .. .. 76 6 0.1 2 2 35 2002 f Portugal 10,623 10,607 .. .. 78 4 0.4 .. .. 39 1997 f Romania 21,438 18,860 96 98 73 16 < 0.1 2 13 31 2003 d Russian Federation 142,499 123,915 99 100 66 14 1.1 2 12 40 2002 d Serbia {g} 10,528 10,528 94 99 .. 12 0.0 .. .. 30 2003 d Slovakia 5,390 5,217 .. .. 75 7 < 0.1 2 3 26 1996 f Slovenia 2,002 1,901 .. .. 78 3 < 0.1 2 2 28 1998 d Spain 44,279 46,682 .. .. 81 4 0.6 .. .. 35 2000 f Sweden 9,119 10,012 .. .. 81 3 0.2 .. .. 25 2000 f Switzerland 7,484 8,104 .. .. 82 4 0.4 .. .. 34 2000 f Ukraine 46,205 38,053 99 100 68 13 1.4 2 5 28 2003 d United Kingdom 60,769 66,162 .. .. 79 5 0.2 .. .. 36 1999 f Middle East & N. Africa 460,067 649,569 64 82 69 43 0.2 i 2 20 2004 Afghanistan 27,145 53,252 13 43 44 165 < 0.1 .. .. .. .. Algeria 33,858 44,726 60 80 72 34 0.1 2 15 35 1995 d Egypt 75,498 104,070 59 83 71 28 < 0.1 3 44 34 2000 d Iran, Islamic Rep 71,208 91,155 70 84 71 31 0.2 2 7 43 1998 d Iraq 28,993 47,376 64 84 60 102 .. .. .. .. .. Israel 6,928 9,160 96 99 81 5 .. .. .. 39 2001 f Jordan 5,924 8,554 85 95 73 22 .. 2 7 39 2003 d Kuwait 2,851 4,273 91 94 78 9 .. .. .. .. .. Lebanon 4,099 4,925 .. .. 72 27 0.1 .. .. .. .. Libyan Arab Jamahiriya 6,160 8,447 .. .. 74 18 .. .. .. .. .. Morocco 31,224 39,259 40 66 71 36 0.1 2 14 40 1999 d Oman 2,595 3,865 74 87 76 10 .. .. .. .. .. Saudi Arabia 24,735 37,314 69 87 73 21 .. .. .. .. .. Syrian Arab Rep 19,929 29,294 74 86 74 14 .. .. .. .. .. Tunisia 10,327 12,529 65 83 74 20 0.1 2 7 40 2000 d Turkey 74,877 92,468 80 95 72 26 .. 3 19 44 2003 d United Arab Emirates 4,380 6,753 .. .. 79 8 .. .. .. .. .. Yemen 22,389 40,768 .. .. 63 76 .. 16 45 33 1998 d 206 W O R L D R E S O U R C E S 2 0 0 8 Human Health Life Infant Percent Of International Poverty and Income Equality Adult Expactancy Mortality Adults Ages Gini Total Population Literacy Rate at Birth Rate 15­49 Living Index {c} Estimates and Projections 2000­2004 2005­ (years) (per 1,000 With HIV Percent of Population (0 = (thousands of people) {a} (percent) live births) or AIDS Living on Less Than {b} perfect Survey 2007 2030 Women Men 2010 2005 2005 $1 per day $2 per day equality) Year Sub-Saharan Africa 807,425 1,308,461 53 70 g 51 101 6.1 i 41 72 .. 2004 Angola 17,024 30,652 54 83 43 154 3.7 .. .. .. .. Benin 9,033 16,076 23 48 57 89 1.8 31 74 37 2003 d Botswana 1,882 2,358 82 80 51 87 24.1 28 56 61 1993 d Burkina Faso 14,784 26,505 15 29 52 96 2.0 27 72 40 2003 d Burundi 8,508 17,232 52 67 50 114 3.3 55 88 42 1998 d Cameroon 18,549 26,892 60 77 50 87 5.4 17 51 45 2001 d Central African Rep 4,343 6,214 34 65 45 115 10.7 67 84 61 1993 d Chad 10,781 19,799 13 41 51 124 3.5 .. .. .. .. Congo 3,768 5,824 .. .. 55 81 5.3 .. .. .. .. D Congo, Dem Rep 62,636 122,734 54 81 47 129 3.2 .. .. .. .. A Côte d'Ivoire 19,262 28,088 39 61 48 118 7.1 15 49 45 2002 d T Equatorial Guinea 507 854 81 93 52 123 3.2 .. .. .. .. A Eritrea 4,851 8,433 .. .. 58 50 2.4 .. .. .. .. T Ethiopia 83,099 137,052 .. .. 53 109 .. 23 78 30 2000 d A Gabon 1,331 1,791 .. .. 57 60 7.9 .. .. .. .. B Gambia 1,709 2,770 .. .. 60 97 2.4 59 83 50 1998 d L Ghana 23,478 34,234 50 66 60 68 2.3 45 79 41 1998 d E Guinea 9,370 16,170 18 43 56 98 1.5 .. .. 39 2003 d 1 Guinea-Bissau 1,695 3,358 .. .. 46 124 3.8 .. .. 47 1993 d : Kenya 37,538 62,762 70 78 54 79 6.1 23 58 43 1997 d P Lesotho 2,008 2,252 90 74 43 102 23.2 36 56 63 1995 d O Liberia 3,750 7,797 .. .. 46 157 .. .. .. .. .. P Madagascar 19,683 32,931 65 77 59 74 0.5 61 85 48 2001 d U Malawi 13,925 23,550 54 75 48 79 14.1 21 63 39 2004 d L Mali 12,337 23,250 12 27 55 120 1.7 36 72 40 2001 d A Mauritania 3,124 4,944 43 60 64 78 0.7 26 63 39 2000 d T Mozambique 21,397 31,117 .. .. 42 100 16.1 36 74 47 2002 d IO Namibia 2,074 2,678 84 87 53 46 19.6 35 56 74 1993 f N Niger 14,226 30,842 15 43 57 150 1.1 61 86 51 1995 d Nigeria 148,093 226,855 .. .. 47 100 3.9 71 92 44 2003 d A N Rwanda 9,725 16,646 60 71 46 118 3.1 60 88 47 2000 d D Senegal 12,379 19,554 29 51 63 77 0.9 17 56 41 2001 d Sierra Leone 5,866 9,592 24 47 43 165 1.6 57 75 63 1989 d H Somalia 8,699 15,193 .. .. 48 133 0.9 .. .. .. .. U South Africa 48,577 53,236 81 84 49 55 18.8 11 34 58 2000 d M Sudan 38,560 58,446 52 h 71 h 59 62 1.6 .. .. .. .. A Tanzania, United Rep 40,454 65,516 62 78 53 76 6.5 58 90 35 2000 d N Togo 6,585 10,856 39 69 58 78 3.2 .. .. .. .. W Uganda 30,884 61,548 58 77 52 79 6.7 .. .. 46 2002 d Zambia 11,922 17,870 60 76 42 102 17.0 64 87 51 2004 d E Zimbabwe 13,349 16,628 .. .. 44 81 20.1 56 83 50 1996 d L L North America 338,831 405,429 95 96 g 79 .. 0.8 i .. .. .. Canada 32,876 39,105 .. .. 81 5 0.3 .. .. 33 2000 f -B United States 305,826 366,187 .. .. 78 6 0.6 .. .. 41 2000 f E C. America & Caribbean 188,782 235,487 88 90 74 26 j .. .. .. .. IN Belize 288 413 .. .. 76 15 2.5 .. .. .. .. G Costa Rica 4,468 5,795 95 95 79 11 0.3 3 10 50 2003 f Cuba 11,268 11,126 100 100 78 6 0.1 .. .. .. .. Dominican Rep 9,760 12,709 87 87 72 26 1.1 3 16 52 2004 f El Salvador 6,857 8,935 .. .. 72 23 0.9 19 41 52 2002 f Guatemala 13,354 21,691 63 75 70 32 0.9 14 32 55 2002 f Haiti 9,598 12,994 .. .. 61 84 3.8 54 78 59 2001 f Honduras 7,106 10,298 80 80 70 31 1.5 15 36 54 2003 f Jamaica 2,714 2,924 86 74 73 17 1.5 2 14 46 2004 d Mexico 106,535 128,125 90 92 76 22 0.3 3 12 46 2004 d Nicaragua 5,603 7,407 77 77 73 30 0.2 45 80 43 2001 d Panama 3,343 4,488 91 93 76 19 0.9 7 18 56 2003 f Trinidad and Tobago 1,333 1,400 .. .. 70 17 2.6 12 39 39 1992 f South America 383,406 477,332 90 91 73 26 j .. .. .. .. Argentina 39,531 47,534 97 97 75 15 0.6 7 17 51 2004 f Bolivia 9,525 13,034 81 93 66 52 0.1 23 42 60 2002 f Brazil 191,791 236,480 89 88 72 31 0.5 8 21 57 2004 f Chile 16,635 19,778 96 96 79 8 0.3 2 6 55 2003 f Colombia 46,156 57,577 93 93 73 17 0.6 7 18 59 2003 f Ecuador 13,341 16,679 90 92 75 22 0.3 18 41 54 1998 f Guyana 738 660 .. .. 67 47 2.4 2 6 43 1999 f Paraguay 6,127 8,483 .. .. 72 20 0.4 14 30 58 2003 f Peru 27,903 35,564 82 94 71 23 0.6 11 31 52 2003 f Suriname 458 481 87 92 70 30 1.9 .. .. .. .. Uruguay 3,340 3,590 .. .. 76 14 0.5 2 6 45 2003 f Venezuela 27,657 37,149 93 93 74 18 0.7 19 40 48 2003 f Oceania 34,240 43,206 93 94 g 76 .. 0.3 i .. .. .. Australia 20,743 25,287 .. .. 81 5 0.1 .. .. 35 1994 f Fiji 839 918 .. .. 69 16 0.1 .. .. .. .. New Zealand 4,179 4,895 .. .. 80 5 0.1 .. .. 36 1997 f Papua New Guinea 6,331 9,183 50.9 63.4 57 55 1.8 .. .. 51 1996 d Solomon Islands 496 762 .. .. 64 24 .. .. .. .. .. Developed 1,353,287 1,411,479 99 99 g 76 5 .. .. .. .. .. Developing 5,317,004 6,903,869 70 84 67 57 .. .. .. .. .. a. Medium variant population projections; please consult the technical notes for more information. b. Measures the percent of the population living below $1.08 per day and $2.15 per day at 1993 prices. c. The Gini Index measures the equality of income distribution within the population (0=perfect equality; 100=perfect inequality). d. Based on per capita consumption or expenditure data. e. Poverty Rates for Cambodia were obtained from a 1997 survey. f. Based on per capita income data. g. Data for Serbia include the country of Montenegro (these countries were a single nation from 2003 to 2006). h. Estimates are for North Sudan only. i. Regional totals are calculated by UNAIDS. j. Regional total are calculated by UNICEF and combine South America, Central America and the Caribbean; a list of countries classified in each region is avilable at http://www.unicef.org/files/Table9.pdf. 207 1 Population and Human Well-Being: Technical Notes DEFINITIONS AND METHODOLOGY to $1 in 1985 prices when adjusted for purchasing power parity (PPP). This amount is used because it is comparable to the poverty lines used in many developing Total Population refers to the de facto population of a country, in thousands of countries, and income below this level is referred to as "extreme poverty." people, as of July 1 of the year indicated. For estimates for 2005 and earlier, the United Nations Population Division (UNPD) compiles and evaluates census and Population Living on Less Than $2 per day is the percentage of the population survey results from all countries, adjusting data when necessary. Adjustments of a country living on less than $2.15 a day at 1993 international prices, equiva- incorporate data from civil registrations (in developed countries), population lent to $2 in 1985 prices when adjusted for purchasing power parity. International surveys (in developing countries), earlier censuses, and, when necessary, popula- Poverty Line data are based on nationally representative primary household surveys tion models based on information from similar countries. The future projections conducted by national statistical offices or by private agencies under the supervi- reported here assume medium fertility (the UN "medium-fertility assumption"). All sion of government or international agencies and obtained from government future population projections are based on estimates of the 2005 base year popula- statistical offices and World Bank country departments. PPP exchange rates, tion and incorporate the three main components of population growth: fertility, produced at the World Bank, are used because they take into account local prices mortality, and migration. For more information on methodology, see World Popula- and goods and services not traded internationally. tion Prospects: The 2006 Revision, Volume III: Analytical Report. Gini Index is a measure of income inequality that describes the deviation of income Adult Literacy Rate measures the proportion of the men or women older than the or consumption distribution from perfect equality. A score of zero implies perfect age of 15 who can both read and write with understanding a short, simple state- equality while a score of 100 implies perfect inequality. If every person in a country ment on their everyday life. Most literacy data are collected intermittently during earned the same income, the Gini Index would be zero; if all income were earned by national population censuses and supplemented by household surveys, labor force one person, the Gini Index would be 100. The Gini index is calculated by compiling surveys, employment surveys, industry surveys, and agricultural surveys when they income (or expenditure) distribution data. For developing countries, the Gini index is are available. The United Nations Educational, Scientific, and Cultural Organization compiled from household survey data; for high-income countries the index is calcu- (UNESCO) uses these data to graph a logistic regression model and create the lated directly from the Luxemburg Income Study database, using an estimation estimates shown here. When census and survey data are not available, literacy method consistent with that applied for developing countries. Once compiled, income rates for a specific country are estimated based on neighboring countries with or expenditure distribution data are plotted on a Lorenz curve, which illustrates the similar characteristics. cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index is calcu- Life Expectancy at Birth is the average number of years that a newborn baby is lated as the area between the Lorenz curve and a hypothetical (45-degree) line of expected to live if the age-specific mortality rates effective at the year of birth absolute equality, expressed as a percentage of the maximum area under the line. apply throughout his or her lifetime. The United Nations Population Division prepares estimates and projections based on data from national statistical Survey Year shows the year that both the poverty rate and income inequality data sources. When needed, other sources, mainly population censuses and were collected in each country. Surveys were conducted between 1993 and 2004. demographic surveys, are consulted. In countries highly affected by the HIV/AIDS epidemic, estimates of the impact of the disease are made explicitly by projecting the yearly incidence of HIV infection. FREQUENCY OF UPDATE BY DATA PROVIDERS Infant Mortality Rate is the probability of a child dying between birth and 1 year Country-level estimates of population, life expectancy, and HIV/AIDS infection rates of age expressed per 1,000 live births. The indicator is used as a measure of are published every two years by UNPD and the Joint United Nations Programme on children's well-being and the level of effort being made to maintain child health: HIV/AIDS (UNAIDS). Literacy data are updated by UNESCO as new estimates are more than three quarters of child deaths in the developing world are caused by made available. The United Nations Children's Fund (UNICEF) publishes the most diseases that can be prevented or cured by low-cost interventions such as recent infant mortality data in their annual State of the World's Children report. immunization, oral rehydration therapy, and antibiotics. The data on mortality of Poverty rates and income equality data are updated irregularly as surveys are children in infancy are typically obtained from civil registration records on deaths conducted in individual countries; new survey results are compiled and released and births, and a ratio can be calculated directly. In many developing countries, annually in the World Bank's World Development Indicators. however, civil registration records are incomplete. In these instances, several types of surveys may be utilized to collect birth and death histories of sample populations to fill gaps in knowledge. DATA RELIABILITY AND CAUTIONARY NOTES Percent of Adults Ages 15­49 Living With HIV or AIDS is the estimated percent- Total Population and Life Expectancy: Since demographic parameters are age of people aged 15­49 living with HIV/AIDS in 2005. These estimates include all estimated on a country-by-country basis, reliability varies among countries. For people with HIV infection, whether or not they have developed symptoms of AIDS, some developing countries, estimates are derived from surveys rather than who are alive at the end of the year specified. Data for this age group capture those censuses, especially when countries lack a civil registration system or have one in their most sexually active years. Measuring infection within this age range also that does not achieve full coverage of all vital events. Also, for developing countries allows greater comparability for populations with different age structures. the availability of detailed information on fertility and mortality is limited and the Estimates for a single point in time and the starting date of the epidemic were used data on international migration flows are generally inadequate. Although estimates to plot an epidemic curve charting the spread of HIV in a particular country; these are based on incomplete data and projections cannot factor in unforeseen events curves are used to create the estimates shown here. (such as famine or wars), UN demographic models are widely accepted and use Population Living on Less Than $1 per day is the percentage of the population well-understood principles, which make these data as comparable, consistent of a country living on less than $1.08 a day at 1993 international prices, equivalent across countries, and reliable as possible. 208 Adult Literacy Rate: The availability and quality of national statistics on literacy vary widely. National census and survey data are typically collected only once every decade. In addition, many industrialized countries have stopped collecting literacy data in recent years, based on the sometimes incorrect assumption that universal primary education means universal literacy. When census and survey data are not available for a particular country, estimates are sometimes made based on neigh- boring countries. Actual definitions of adult literacy are not strictly comparable among countries. Some countries equate persons with no schooling with illiterates or change definitions between censuses. In addition, UNESCO's definition of liter- acy does not include people who, though familiar with the basics of reading and writing, do not have the skills to function at a reasonable level in their own society. Infant Mortality: These data tend to be of poorer quality than under-5 mortality data. A concerted effort has been made by UNICEF and its partners to develop a consistent and transparent methodology. However, the data used to derive these estimates come from a wide variety of sources of disparate quality: some countries have several sources of data covering the same period, allowing for data cross- referencing; other countries have many fewer sources and/or have sources of poor quality. In addition, inaccuracies in birth and death totals in civil registries (with death figures typically less complete than those of births) may result in an under- estimation of a country's infant mortality rate. Percent of Adults Living with HIV or AIDS: Data reliability varies on a country- by-country basis. The extent of uncertainty depends primarily on the type of epidemic and the quality, coverage, and consistency of a country's surveillance system. UNAIDS estimates low and high values for the total number of infections in its 2006 Report on the Global AIDS Epidemic; the values shown here fall between these two estimates. A more detailed analysis of the collection methodology and reliability of HIV/AIDS estimates is available in a series of seven articles published online in the journal Sexually Transmitted Infections in August 2004. International Poverty Rates and Gini Index: Despite recent improvements in survey methodology and consistency, indicators are still not strictly comparable across countries. Surveys can differ in the type of information requested (for example, whether income or consumption is used). Consumption is usually a much better welfare indicator, particularly in developing countries. The households that are surveyed can differ in size and in the extent of income sharing among members, and individuals within a household may differ in age and consumption needs. Differences also exist in the relative importance of consumption of nonmarket goods. Although the $1/day and $2/day poverty lines are commonly used, there is an ongoing debate as to how well they capture poverty across nations. Values should be treated as rough statistical approximations of the number of people earning or consuming at a given level rather than a certain prognosis of how many people are poor. International poverty rates do not capture other elements of poverty, including Literacy Rates: United Nations Educational, Scientific, and Cultural Organization lack of access to health care, education, safe water, or sanitation. Estimates are (UNESCO) Institute for Statistics. 2006. World Education Indicators, Literacy expected to change significantly in the next release of the World Development Statistics. Paris: UNESCO. Online at http://www.uis.unesco.org. Indicators, which will incorporate purchasing power estimates benchmarked to Infant Mortality: United Nations Children's Fund (UNICEF). 2006. The State of the 2005 rather than 1993. World's Children 2007: The Double Dividend of Gender Equality. Table 1. New York: UNICEF. Online at http://www.unicef.org/sowc07. SOURCES Percent of Adults Living with HIV or AIDS: Joint United Nations Programme on HIV/AIDS (UNAIDS). 2006. Report on the Global AIDS Epidemic. Geneva: UNAIDS. Population and Life Expectancy: Population Division of the Department of Online at http://www.unaids.org/en/HIV_data/2006GlobalReport/default.asp. Economic and Social Affairs of the United Nations Secretariat. 2007. World Popula- tion Prospects: The 2006 Revision. Dataset on CD-ROM. New York: United Nations. Gini Index and International Poverty Rates: Development Data Group, World Online at http://www.un.org/esa/population/ordering.htm. Bank. 2007. 2007 World Development Indicators. Washington, DC: World Bank. Online at http://go.worldbank.org/B53SONGPA0. 209 2 Food and Water Sources: Food and Agriculture Organization of the United Nations, Keele University, World Health Organization, United Nations Children's Fund Water Resources Intensity of Agricultural Inputs Food Security and Nutrition Fisheries Use of an Labor Calorie Supply, 2003 Percent of Production Actual Renewable Improved Water Agricultural (percent of (kcal/person/day) Population Total Percent Water Resources {b} Water Source (percent Land {a} Fertilizer Water workforce in Percent That is Under- Production Change Per Capita Poverty of population) (1,000 ha) (kg/ha) (m3/ha) agriculture) from Animal 2002­2004 nourished in 2005 Since Total (m3 per Index 2004 2003 2003 2000 2004 Total Products (metric tons) 1995 (km3) person) 2002 Urban Rural World 4,423,482 110 .. 43 2,809 17 14 157,531,214 26 54,228 8,210 .. 95 73 Asia (excl. Middle East) 770,403 221 .. 55 2,681 15 15 102,480,487 51 14,514 3,948 .. 93 76 Armenia 1,390 19 3,464 11 2,357 19 24 1,033 (47) 11 3,511 54 99 80 Azerbaijan 4,754 8 5,825 25 2,727 14 7 9,016 (18) 30 3,547 .. 95 59 Bangladesh 9,019 187 8,999 52 2,193 3 30 2,215,957 100 1,211 8,232 54 82 72 Bhutan 585 .. 2,500 94 .. .. .. 300 (12) 95 42,035 56 86 60 Cambodia 5,350 4 1,051 69 2,074 9 33 426,000 279 476 32,526 46 64 35 China 554,851 257 c 2,871 64 2,940 22 12 60,630,984 85 2,829 2,125 51 93 67 Georgia 3,006 23 2,006 18 2,646 17 9 3,072 (17) 63 14,406 60 96 67 India 180,000 95 3,289 58 2,473 8 20 6,323,557 26 1,897 1,670 53 95 83 Indonesia 47,600 79 2,250 46 2,891 5 6 6,513,133 48 2,838 12,441 65 87 69 Japan 4,736 366 11,435 3 2,768 21 < 2.5 5,433,436 (28) 430 3,351 65 100 100 Kazakhstan 207,784 6 1,321 16 2,858 25 6 31,589 (37) 110 7,405 58 97 73 Korea, Dem People's Rep 2,950 .. 1,771 27 2,178 6 33 712,995 (33) 77 3,403 .. 100 100 Korea, Rep 1,902 367 4,651 8 3,035 16 < 2.5 2,711,667 (19) 70 1,448 62 97 71 Kyrgyzstan 10,840 10 6,799 23 3,173 18 4 27 (93) 21 3,821 64 98 66 Lao People's Dem Rep 1,939 .. 2,818 76 2,338 7 19 107,800 168 334 53,859 54 79 43 Malaysia 7,870 175 736 16 2,867 18 3 1,424,097 14 580 22,104 67 100 96 Mongolia 130,500 3 196 22 2,250 39 27 366 132 35 12,837 55 87 30 Myanmar 11,293 2 3,109 69 2,912 5 2,217,466 169 1,046 20,313 54 80 77 Nepal 4,217 15 4,043 93 2,483 7 17 42,463 101 210 7,447 54 96 89 Pakistan 27,230 150 7,407 45 2,316 20 24 515,472 (5) 223 1,353 58 96 89 Philippines 12,200 88 1,981 37 2,480 15 18 4,145,044 48 479 5,577 61 87 82 Singapore 0 .. 950 0 .. .. .. 7,837 (43) 1 135 56 100 .. Sri Lanka 2,356 130 6,283 44 2,416 6 22 164,230 (30) 50 2,372 56 98 74 Tajikistan 4,255 .. 10,359 31 1,907 10 56 210 (45) 16 2,392 59 92 48 Thailand 18,487 128 4,300 53 2,425 13 22 3,743,398 4 410 6,280 64 98 100 Turkmenistan 32,966 .. 12,554 32 2,840 21 7 15,016 32 25 4,979 70 93 54 Uzbekistan 27,259 .. 11,268 25 2,312 17 25 5,425 (61) 50 1,842 61 95 75 Viet Nam 9,537 253 5,974 66 2,617 13 16 3,397,200 130 891 10,310 52 99 80 Europe 480,665 80 .. 8 3,354 28 <2.5 16,273,014 (15) 7,793 10,686 .. 100 .. Albania 1,121 70 1,517 46 2,874 28 6 5,275 207 42 13,184 .. 99 94 Austria 3,376 221 14 4 3,732 33 < 2.5 2,790 (16) 78 9,455 75 100 100 Belarus 8,885 153 134 11 2,885 27 4 5,050 (18) 58 6,014 61 100 100 Belgium 1,394 .. .. 2 3,634 31 < 2.5 25,767 (29) 18 1,751 61 100 100 Bosnia and Herzegovina 2,148 16 .. 4 2,668 13 9 9,070 505 38 9,566 .. 99 96 Bulgaria 5,326 126 521 6 2,885 24 8 8,579 (32) 21 2,797 63 100 97 Croatia 3,137 108 .. 7 2,795 20 7 48,465 139 106 23,161 68 100 100 Czech Rep 4,270 118 18 7 3,308 25 < 2.5 24,697 9 13 1,290 61 100 100 Denmark 2,658 136 236 3 3,472 36 < 2.5 949,625 (54) 6 1,099 61 100 100 Estonia 829 436 9 10 3,222 26 < 2.5 100,136 (25) 13 9,696 .. 100 99 Finland 2,246 118 30 5 3,143 37 < 2.5 146,096 (21) 110 20,857 78 100 100 France 29,690 209 200 3 3,623 37 < 2.5 909,483 (6) 204 3,343 68 100 100 Germany 17,001 226 775 2 3,484 31 < 2.5 330,353 9 154 1,862 65 100 100 Greece 8,431 115 1,622 15 3,666 23 < 2.5 198,951 8 74 6,653 66 .. .. Hungary 5,865 102 510 9 3,552 32 < 2.5 21,270 28 104 10,353 61 100 98 Iceland 2,281 .. 29 7 3,275 41 < 2.5 1,690,383 4 170 566,667 77 100 100 Ireland 4,370 452 0 9 3,717 32 < 2.5 352,082 (22) 52 12,187 73 100 .. Italy 15,074 150 1,773 4 3,675 26 < 2.5 480,921 (21) 191 3,289 61 100 .. Latvia 1,582 91 21 11 3,014 28 3 151,160 1 35 15,521 .. 100 96 Lithuania 2,541 143 7 10 3,372 27 < 2.5 141,798 140 25 7,317 .. .. .. Macedonia, FYR 1,242 22 .. 10 2,852 18 5 1,114 (26) 6 3,137 .. .. .. Moldova, Rep 2,528 7 353 20 2,729 16 11 5,001 137 12 2,783 49 97 88 Netherlands 1,923 580 2,850 3 3,495 30 < 2.5 617,383 18 91 5,539 69 100 100 Norway 1,040 186 261 4 3,511 31 < 2.5 3,203,476 7 382 81,886 77 100 100 Poland 16,169 108 94 20 3,366 26 < 2.5 192,854 (58) 62 1,601 56 100 .. Portugal 3,812 122 3,503 11 3,747 29 < 2.5 218,866 (20) 69 6,485 65 .. .. Romania 14,800 37 1,333 13 3,582 23 < 2.5 13,352 (81) 212 9,837 59 91 16 Russian Federation 216,277 10 108 9 3,118 22 3 3,356,327 (24) 4,507 31,764 63 100 88 Serbia {d} 5,595 434 .. 17 2,703 35 9 7,022 82 209 19,870 .. 99 86 Slovakia 2,236 92 .. 8 2,779 27 7 2,648 (26) 50 9,276 71 100 99 Slovenia 510 334 .. 1 2,954 31 3 2,763 (7) 32 16,219 69 .. .. Spain 29,154 119 1,324 6 3,421 28 < 2.5 1,071,178 (25) 112 2,557 64 100 100 Sweden 3,166 118 96 3 3,208 36 < 2.5 262,239 (36) 174 19,131 72 100 100 Switzerland 1,525 178 114 4 3,545 34 < 2.5 2,689 (2) 54 7,354 72 100 100 Ukraine 41,355 13 588 13 3,054 20 < 2.5 274,210 (36) 140 3,066 .. 99 91 United Kingdom 16,956 306 47 2 3,450 31 < 2.5 842,271 (17) 147 2,449 72 100 100 Middle East & N. Africa 460,345 77 .. 30 3,116 11 6 3,894,801 29 657 1,398 .. 94 79 Afghanistan 38,048 .. 2,839 66 .. .. .. 1,000 (23) 65 2,015 .. 63 31 Algeria 39,956 5 481 23 3,055 10 4 126,628 19 14 423 50 88 80 Egypt 3,409 535 17,928 31 3,356 8 4 889,302 118 58 759 58 99 97 Iran, Islamic Rep 63,012 60 4,057 25 3,096 9 4 527,912 43 138 1,931 60 99 84 Iraq 10,019 .. 6,791 8 .. .. .. 32,970 7 75 2,490 .. 97 50 Israel 552 2,329 3,019 2 3,554 21 < 2.5 26,555 26 2 240 54 100 100 Jordan 1,004 619 1,905 10 2,680 10 6 1,071 80 1 148 46 99 91 Kuwait 154 0 19,167 1 3,061 18 5 5,222 (40) 0 7 54 .. .. Lebanon 329 102 2,771 3 3,164 17 3 4,601 5 4 1,206 56 100 100 Libyan Arab Jamahiriya 15,450 28 1,648 5 3,337 11 < 2.5 46,342 34 1 99 .. .. .. Morocco 30,376 53 1,141 33 3,098 7 6 947,777 10 29 895 46 99 56 Oman 1,080 88 15,375 34 .. .. .. 150,744 8 1 369 59 .. .. Saudi Arabia 173,798 113 4,074 7 2,840 15 4 74,778 55 2 93 53 97 .. Syrian Arab Rep 13,824 62 3,537 26 3,057 14 4 16,980 46 26 1,314 55 98 87 Tunisia 9,784 21 434 23 3,247 11 < 2.5 111,818 33 5 442 51 99 82 Turkey 40,644 77 1,056 43 3,328 12 3 545,673 (17) 229 3,051 57 98 93 United Arab Emirates 559 237 6,356 4 3,238 23 < 2.5 90,570 (14) 0 31 52 100 100 Yemen 17,734 3 3,787 46 2,020 8 38 263,000 144 4 184 44 71 65 210 W O R L D R E S O U R C E S 2 0 0 8 Water Resources Intensity of Agricultural Inputs Food Security and Nutrition Fisheries Use of an Labor Calorie Supply, 2003 Percent of Production Actual Renewable Improved Water Agricultural (percent of (kcal/person/day) Population Total Percent Water Resources {b} Water Source (percent Land {a} Fertilizer Water workforce in Percent That is Under- Production Change Per Capita Poverty of population) (1,000 ha) (kg/ha) (m3/ha) agriculture) from Animal 2002­2004 nourished in 2005 Since Total (m3 per Index 2004 2003 2003 2000 2004 Total Products (metric tons) 1995 (km3) person) 2002 Urban Rural Sub-Saharan Africa 1,046,854 11 .. 61 2,272 7 30 5,925,170 31 5,463 6,957 .. 81 43 Angola 57,590 2 64 71 2,089 8 35 240,000 95 184 10,909 41 75 40 Benin 3,467 1 22 50 2,574 4 12 38,407 (13) 25 2,765 39 78 57 Botswana 25,980 .. 211 44 2,196 13 32 132 (34) 14 8,215 57 100 90 Burkina Faso 10,900 5 168 92 2,516 5 15 9,007 13 13 890 42 94 54 Burundi 2,345 0 168 90 1,647 2 66 14,200 (33) 4 442 40 92 77 Cameroon 9,160 6 102 55 2,286 6 26 142,682 51 286 16,920 54 86 44 Central African Rep 5,149 .. 1 69 1,932 12 44 15,000 7 144 34,787 44 93 61 Chad 48,630 .. 54 71 2,147 7 35 70,000 (22) 43 4,174 39 41 43 Congo 10,547 .. 7 37 2,183 7 33 58,448 27 832 196,319 57 84 27 D Congo, Dem Rep 22,800 .. 14 61 1,606 2 74 222,965 40 1,283 20,973 46 82 29 A Côte d'Ivoire 19,900 12 88 45 2,644 4 13 55,866 (21) 81 4,315 46 97 74 T A Equatorial Guinea 334 .. 4 68 .. .. .. 3,500 52 26 49,336 68 45 42 Eritrea 7,532 2 515 76 1,520 6 75 4,027 13 6 1,338 37 74 57 T Ethiopia 31,769 5 487 81 1,858 5 46 9,450 48 110 1,355 35 81 11 A Gabon 5,160 2 101 33 2,671 11 5 43,941 9 164 114,766 62 95 47 B Gambia 779 .. 69 78 2,288 6 29 32,000 35 8 5,019 48 95 77 L E Ghana 14,735 3 107 56 2,680 5 11 393,428 11 53 2,314 45 88 64 Guinea 12,450 1 850 82 2,447 4 24 96,571 42 226 23,042 52 78 35 2 Guinea-Bissau 1,630 .. 263 82 2,051 7 39 6,200 (2) 31 18,430 48 79 49 : Kenya 26,512 79 200 74 2,155 13 31 149,378 (23) 30 839 47 83 46 F Lesotho 2,334 .. 30 38 2,626 4 13 46 15 3 1,693 43 92 76 O Liberia 2,602 .. 101 66 1,930 3 50 10,000 13 232 67,207 .. 72 52 O Madagascar 27,550 2 4,089 73 2,056 8 38 144,900 19 337 17,186 48 77 35 D Malawi 4,440 20 362 81 2,125 3 35 59,595 11 17 1,285 38 98 68 A Mali 39,479 .. 1,262 79 2,237 10 29 101,098 (24) 100 6,981 41 78 36 N Mauritania 39,750 .. 3,000 52 2,786 18 10 247,577 366 11 3,511 50 59 44 D Mozambique 48,580 8 133 80 2,082 2 44 43,751 62 216 10,531 45 72 26 Namibia 38,820 1 260 38 2,290 16 24 552,812 (3) 18 8,658 60 98 81 W Niger 38,500 0 143 87 2,170 5 32 50,058 1,271 34 2,257 35 80 36 A Nigeria 72,600 7 179 30 2,714 3 9 579,537 58 286 2,085 44 67 31 T E Rwanda 1,935 .. 89 90 2,071 3 33 8,186 142 5 551 39 92 69 R Senegal 8,157 13 860 72 2,374 9 20 405,264 11 39 3,225 45 92 60 Sierra Leone 2,845 .. 636 60 1,943 4 51 145,993 125 160 27,577 42 75 46 Somalia 44,071 .. 3,074 69 .. .. .. 30,000 7 14 1,620 .. 32 27 South Africa 99,640 51 499 8 2,962 13 < 2.5 830,369 42 50 1,048 52 99 73 Sudan 134,600 4 2,166 57 2,260 20 26 63,608 41 65 1,707 49 78 64 Tanzania, United Rep 48,100 9 926 79 1,959 6 44 354,351 (4) 91 2,291 48 85 49 Togo 3,630 7 29 57 2,358 3 24 29,267 139 15 2,272 46 80 36 Uganda 12,462 1 17 78 2,360 6 19 427,575 105 66 2,133 44 87 56 Zambia 35,289 .. 250 67 1,975 5 46 70,125 (6) 105 8,726 50 90 40 Zimbabwe 20,550 33 990 60 2,004 8 47 15,452 (7) 20 1,520 53 98 72 North America 484,646 103 .. 2 3,739 28 <2.5 6,872,348 1 5,576 16,558 .. 100 100 Canada 67,505 52 104 2 3,605 26 < 2.5 1,255,821 33 2,902 88,336 78 100 99 United States 416,902 118 1,111 2 3,754 28 < 2.5 5,396,735 (6) 2,071 6,816 65 100 100 C. America & Caribbean 141,861 61 .. 22 2,902 17 11 2,040,714 5 1,259 6,653 .. 96 84 Belize 152 263 303 30 2,876 22 4 14,548 37 19 66,268 66 100 82 Costa Rica 2,865 339 2,724 18 2,813 20 5 46,378 92 112 25,157 67 100 92 Cuba 6,655 13 1,409 13 3,286 11 < 2.5 52,387 (49) 38 3,368 .. 95 78 Dominican Rep 3,696 .. 1,404 14 2,281 15 29 12,086 (40) 21 2,295 59 97 91 El Salvador 1,704 56 854 27 2,556 13 11 43,317 178 25 3,546 56 94 70 Guatemala 4,652 87 819 44 2,227 9 22 16,756 40 111 8,410 59 99 92 Haiti 1,590 .. 846 60 2,109 8 46 8,310 50 14 1,599 35 52 56 Honduras 2,936 41 484 28 2,373 14 23 48,580 61 96 12,755 60 95 81 Jamaica 513 3 704 19 2,690 15 9 18,766 (34) 9 3,520 58 98 88 Mexico 107,300 68 2,210 19 3,171 19 5 1,449,535 3 457 4,172 58 100 87 Nicaragua 6,976 30 502 17 2,291 11 27 40,897 241 197 34,416 58 90 63 Panama 2,230 39 334 18 2,287 24 23 222,756 7 148 44,266 67 99 79 Trinidad and Tobago 133 502 164 8 2,788 17 10 13,414 16 4 2,925 59 92 88 South America 579,599 109 .. 16 2,886 21 9 18,316,451 (9) 17,274 44,816 .. 96 65 Argentina 128,747 42 747 9 2,959 28 3 933,902 (21) 814 20,591 61 98 80 Bolivia 37,087 4 371 43 2,219 18 23 7,090 12 623 65,358 63 95 68 Brazil 263,600 140 562 15 3,146 21 7 1,008,066 54 8,233 43,028 61 96 57 Chile 15,242 215 3,470 15 2,872 22 4 5,453,882 (31) 922 55,425 69 100 58 Colombia 42,051 196 1,083 18 2,567 16 13 181,074 8 2,132 45,408 66 99 71 Ecuador 7,249 82 4,686 23 2,641 19 6 486,023 (20) 432 31,739 67 97 89 Guyana 1,740 20 3,137 16 2,764 16 8 53,980 12 241 320,479 76 83 83 Paraguay 24,836 69 119 33 2,524 18 15 23,100 9 336 52,133 56 99 68 Peru 21,210 73 3,832 28 2,579 13 12 9,421,130 5 1,913 66,431 64 89 65 Suriname 89 93 9,254 18 2,697 12 8 40,191 209 122 268,132 75 98 73 Uruguay 14,955 99 2,141 12 2,883 27 < 2.5 125,953 (0) 139 39,612 67 100 100 Venezuela 21,640 129 1,166 7 2,272 15 18 492,210 (3) 1,233 44,545 65 85 70 Oceania 459,109 61 .. 19 .. .. .. 1,582,359 39 1,693 52,674 .. 96 83 Australia 439,500 46 356 4 3,135 33 < 2.5 307,392 23 492 23,911 62 100 100 Fiji 460 12 175 38 2,974 17 5 41,597 39 29 33,159 62 43 51 New Zealand 17,235 280 266 9 3,199 32 < 2.5 640,845 2 327 79,893 69 100 .. Papua New Guinea 1,050 101 1 72 .. .. .. 250,582 536 801 131,011 55 88 32 Solomon Islands 117 .. .. 72 2,260 7 21 28,658 (55) 45 89,044 .. 94 65 Developed 1,827,874 86 .. 6 3,328 26 <2.5 30,234,605 (13) 14,450 10,637 .. 100 93 Developing 2,604,477 131 .. 53 2,675 14 17 127,153,044 42 39,837 7,580 .. 91 71 a. Includes arable and permanent cropland and permanent pasture. b. Although water data were obtained from FAO in 2007, they are long-term averages originating from multiple sources and years. c. Data from 2002. d. Data for Serbia include the country of Montenegro (these countries were a single nation from 2003 to 2006). 211 2 Food and Water: Technical Notes DEFINITIONS AND METHODOLOGY weight. This minimum energy requirement varies by country but typically averages between 1,750 and 2,030 kilocalories per person daily. Agricultural Land, in thousand hectares, is the total area of all arable and perma- nent cropland and permanent pasture. Arable land includes land under annual Fisheries Production data refer to both the nominal catch (capture) and the crops, temporary meadows, kitchen gardens, and land fallow for less than 5 years. harvest (aquaculture) of fish, crustaceans, mollusks, aquatic mammals, and other Abandoned land resulting from shifting cultivation is not included. Permanent aquatic animals taken for commercial, industrial, recreational, and subsistence cropland is cultivated with crops that occupy the land for long periods and need not purposes from marine, brackish, and inland waters. Statistics for aquatic plants be replanted after each harvest, including land under trees grown for wood or are excluded from country totals. Data include all quantities caught and harvested timber. Permanent pasture is the amount of land used permanently (5 years or for both food and feed purposes but exclude catch discarded at sea. Production of more) for herbaceous forage crops, either cultivated or growing wild (wild prairie or fish, crustaceans, and mollusks is expressed in live weight, the nominal weight of grazing land). Data on land use are reported by country governments, in surveys the aquatic organisms at the time of harvest. Most fisheries statistics are collected distributed by the Food and Agriculture Organization of the United Nations (FAO). by FAO from questionnaires sent to national fisheries agencies. When these data are missing or considered unreliable, FAO estimates fishery production based on Fertilizer intensity measures the mass in kilograms of the nutrients nitrogen, regional fishery organizations, project documents, industry magazines, or statisti- potash, and phosphate consumed annually per hectare of arable and permanent cal interpolations. cropland. Some countries report data based on the fertilizer year; that is, 2003 data actually encompassed July 1, 2003, to June 30, 2004. Data are collected through Actual Renewable Water Resources gives the maximum theoretical amount of the FAO fertilizer questionnaire, with support from the Ad Hoc Working Party on water annually available for each country in cubic kilometers. Per Capita Actual Fertilizer Statistics. Renewable Water Resources gives the maximum theoretical amount of water annually available, on a per person basis, in cubic meters. Actual renewable water Water intensity measures, in cubic meters, the annual volume of water used in the resources are defined as the sum of internal renewable resources (IRWR) and exter- agricultural sector per hectare of arable and permanent cropland. Water use for nal renewable resources (ERWR), taking into consideration the quantity of flow agriculture is defined as the water withdrawals that are attributed to the agricul- reserved to upstream and downstream countries through formal or informal agree- tural sector, used primarily for irrigation. WRI calculates water intensity by dividing ments or treaties and possible reduction of external flow due to upstream water water use data by the extent of agricultural land, using statistics from FAO's abstraction. IRWR are composed of the average annual flow of rivers and recharge AQUASTAT information system in the FAOSTAT database. To estimate agricultural of groundwater (aquifers) generated from endogenous (internal) precipitation. water use, an assessment has to be made both of irrigation water requirements ERWR are the portion of the country's renewable water resources that is not gener- and of water withdrawals for agriculture. AQUASTAT collects its information from a ated within the country, including inflows from upstream countries and a portion of number of sources, including national water resources and irrigation master plans; border lakes or rivers. national yearbooks, statistics, and reports; reports from FAO; international surveys; Per capita water resources data are calculated by WRI using 2000 popula- and surveys made by national or international research centers. tion estimates (or other appropriate year as indicated in footnotes) from the UN Labor intensity refers to the percentage of the total labor force economically active Population Division. Water resources data were compiled by the FAO from a number in agriculture, hunting, forestry, or fishing. The International Labor Organization of sources: national water resources and irrigation master plans; national (ILO) defines economically active as "all persons of either sex who furnish the yearbooks, statistics, and reports; reports from FAO; international surveys; and supply of labour for the production of economic goods and services." The ILO surveys made by national or international research centers. derives the labor estimates from population censuses and sample surveys. When The Water Poverty Index (WPI) measures, for a given country, the impact of country data are missing, the ILO estimates figures from similar neighboring water scarcity and water provision on human populations. The WPI is a number countries or by using special models of activity rates. FAO provided the annual between 0 and 100, where a low score indicates water poverty and a high score figures used for these calculations through interpolating and extrapolating the indicates good water provision. The WPI is the culmination of an interdiscipli- ILO's decennial series. nary approach that combines both the physical quantities relating to water Calorie Supply, Total refers to the amount of available food per person per day, availability and the socioeconomic factors relating to poverty to produce an expressed in kilocalories. Percent from Animal Products refers to the percent of indicator that addresses the diverse factors that affect water resource manage- available food that is derived from animal products, including all types of meat and ment. The index is composed of five component indices: resources, access, fish; animal fats and fish oils; edible offal; milk, butter, cheese, and cream; and capacity, use, and environment. eggs and egg products. FAO compiles statistics on apparent food consumption Use of an Improved Water Source measures the total proportion of the popula- based on supply/utilization accounts (SUAs) maintained in FAOSTAT, its on-line tion with access to an improved drinking water source. An improved water source statistical service. FAO derives caloric values by applying food composition factors includes any of the following: household connections, public standpipes, boreholes, to the quantities of the processed commodities. protected dug wells, protected springs, and rainwater collection. Improved water Percent of Population That is Undernourished refers to the proportion of the sources are more likely to provide safe drinking water than unimproved sources but population with food intake that is continuously below a minimum dietary energy are not a direct measure of "safe" drinking water. Examples of unimproved water requirement for maintaining a healthy life and carrying out light physical activity. sources include unprotected wells and springs, surface water, vendor-provided Data represent country averages over a 3-year period from 2002 to 2004. FAO water, tanker-provided water, and bottled water if it is not consistently available in estimates the number of undernourished individuals using calculations of the sufficient quantities. Both urban and rural access are shown here. Any person not amount of food available in each country and a measure of inequality in distribu- inhabiting an area classified as urban is counted in the rural population. The tion derived from household income/ expenditure surveys. The total undernourished definition of an urban area varies slightly from country to country; the smallest population is calculated as the number of people who fall below a minimum energy urban agglomerations typically have a population between 2,000 and 10,000 requirement, which is estimated by sex and age group based on a reference body people. Data are collected by the World Health Organization (WHO) and the United 212 Nations Children's Fund (UNICEF) using a variety of household survey instruments, Water Resources: While AQUASTAT represents the most complete and careful including the Demographic Health Surveys, Multiple Indicator Cluster Surveys, compilation of water resources statistics to date, freshwater data are generally of Living Standards Measurement Studies, and World Health Surveys. poor quality. Sources of information vary but are rarely complete. Access to infor- mation on water resources is still sometimes restricted for reasons related to political sensitivity at the regional level. Many instances of water scarcity are highly FREQUENCY OF UPDATE BY DATA PROVIDERS localized and are not reflected in national statistics. In addition, the accuracy and reliability of information vary greatly among regions, countries, and categories of Land, fertilizer, labor, nutrition, and fisheries data are updated annually by FAO. information, as does the year in which the information was gathered. As a result, Water resources data are updated intermittently as new values become available. no consistency can be ensured among countries on the duration and dates of the The Water Poverty Index was created by the Center for Ecology and Hydrology in 2002 period of reference. All data should be considered order-of-magnitude estimates. T and has not been updated. The Use of Improved Water Source data set is a Millen- E nium Development Indicator and is updated every 1­3 years to measure a country's Water Poverty Index: The WPI focuses public attention on the important issue of C H progress toward the Millennium Development Goals. water scarcity and allows individuals to quickly understand the degree of water N stress in a country. However, the freshwater data used to build this index are incom- IC plete and frequently incomparable across countries; users of this index should A L always treat these numbers as order-of-magnitude estimates. DATA RELIABILITY AND CAUTIONARY NOTES N O Use of an Improved Water Source: These data have become more reliable as T Agricultural Land: Data are compiled from various sources, so definitions and E WHO and UNICEF shift from provider-based information (national census S coverage do not always conform to FAO recommendations and may not always be : estimates) to consumer-based information (survey data). Nonetheless, compar- F completely consistent across countries. O isons among countries should be made with care. Definitions of urban and rural are O D Fertilizer: Data are excluded for some countries with a relatively small area of not consistent across countries. The assessment does not account for intermittent A cropland, such as Iceland and Singapore. In these cases, the calculation of fertil- or poor quality of water supplies. N izer consumed per hectare of cropland yields an unreliable number. D W Labor: Values vary widely among and within countries according to labor scarcity, A T production technologies, and costs of energy and machinery. The annual figures for E R total number of agricultural workers were obtained by interpolating and extrapolat- SOURCES ing past trends (1950­2000), taken from ILO decennial population series. As a result, fluctuations in the labor force may not be captured in annual figures. Labor Total Agricultural Land, Fertilizer, Labor, and Calorie Supply: Food and intensity may be overestimated in countries with substantial fishing or forestry Agriculture Organization of the United Nations (FAO). 2007. FAOSTAT online statis- industries, since the total agricultural labor force includes some workers engaged tical service. Rome: FAO. Online at http://faostat.fao.org. in these activities. Percent of Population that is Undernourished: Food and Agriculture Organiza- Calorie Supply: Figures shown here represent only the average calorie supply tion of the United Nations (FAO), Statistics Division. 2006. Food Security Statistics, available for the population as a whole and do not necessarily indicate what is 2006. Rome: FAO. Online at http://www.fao.org/es/ess/faostat/foodsecurity/ actually consumed by individuals. Even if data are used as approximations of per index_en.htm. capita consumption, it is important to note that there is considerable variation in Fisheries Production: Food and Agriculture Organization of the United Nations consumption among individuals. Food supply data are only as accurate as the (FAO), Fishery Information, Data and Statistics Unit. 2007. FISHSTAT Plus: Universal underlying production, trade, and utilization data. Software for Fishery Statistical Time Series, Version 2.3. Rome: FAO. Online at Percent of Population That is Undernourished: Food balance sheets provide http://www.fao.org/fi/statist/FISOFT/FISHPLUS.asp. data for the available food supply, not specific consumption, so waste and other Renewable Water Resources: Food and Agriculture Organization of the United losses are not accounted for. Also, since production statistics are typically available Nations (FAO), Water Resources, Development and Management Service. 2007. only for major food crops, non-commercial or subsistence-level production is not AQUASTAT Information System on Water and Agriculture: Review of World Water always included. Crops that are either continuously or selectively harvested, such Resources by Country. Rome: FAO. Online at http://www.fao.org/waicent/faoinfo/ as cassava and plantains, may not be accurately accounted for, and subsistence agricult/agl/aglw/aquastat/water_res/index.htm. hunting of wild game and insects is typically ignored. Data for 2002­2004 are preliminary. In all likelihood, these numbers will change in future revisions as Water Poverty Index: Lawrence, P., J. Meigh, and C. Sullivan. 2003. The Water estimates are refined. Poverty Index: an International Comparison. Staffordshire, UK: Keele University. Online at http://www.keele.ac.uk/depts/ec/wpapers/kerp0219.pdf. Total Fisheries Production: FISHSTAT provides the most extensive global time series of fishery statistics since 1950. However, country-level data are often Use of Improved Water Source: World Health Organization (WHO) and United submitted with a 1­2 year delay. Statistics from smaller artisanal and subsistence Nations Children's Fund (UNICEF). 2006. Meeting the MDG Drinking Water and fisheries are sparse. While these figures provide a good overview of regional trends, Sanitation Target: The Urban and Rural Challenge of the Decade. Geneva and New data should be used with caution and supplemented with estimates from regional York: WHO and UNICEF. Online at http://www.wssinfo.org/pdf/JMP_06.pdf. organizations, academic literature, expert consultations, and trade data. For more information, consult Fishery Statistics Reliability and Policy Implications, published by the FAO Fisheries Department. 213 3 Economics and Trade Source: World Bank Gross Domestic Product (GDP) Adjusted Net Financial Flows Workers' (constant 2000 $US) Savings {a} Export of (million curent $ US) Remittances Average as a Percent Goods and Foreign Official as a Percent Total Per Annual of Gross Services Direct Development of Gross (million Capita Growth Rate GDP Distribution by Sector National as a Percent Investment Assistance National dollars) (dollars) 1995­2005 (percent) (percent) in 2005 Income (GNI) of GDP (net inflows) and Aid {b} Income 2005 2005 Agriculture Industry Services 2005 2005 2005 2005 2005 World 36,352,130 5,647 2.9 4 28 69 c 7 .. 974,283 106,372 0.6 Asia (excl. Middle East) 9,370,570 2,665 3.0 6 34 59 c 19 30 c 174,810 16,215 2.6 Armenia 3,405 1,129 8.5 21 44 35 15 27 258 193 21.2 Azerbaijan 9,911 1,182 9.9 10 62 28 (38) 57 1,680 223 6.7 Bangladesh 61,357 433 5.3 20 27 53 17 17 803 1,321 6.4 Bhutan 639 1,003 6.9 25 37 38 .. 27 1 90 .. Cambodia 5,660 402 8.2 34 27 39 7 65 379 538 3.3 China 1,889,930 1,449 8.8 13 48 40 32 38 79,127 1,757 1.0 Georgia 4,344 971 5.7 17 27 56 11 42 450 310 5.8 India 644,098 588 6.0 18 27 54 19 21 6,598 1,724 3.0 Indonesia 207,740 942 2.2 13 46 41 (2) 34 5,260 2,524 0.7 Japan 4,992,809 39,075 1.0 2 30 68 c 15 13 c 3,214 .. 0.0 Kazakhstan 29,957 1,978 6.8 7 40 54 (38) 54 1,975 229 0.4 Korea, Dem People's Rep .. .. .. .. .. .. .. .. .. 81 .. Korea, Rep 637,945 13,210 4.5 3 40 56 22 43 4,339 .. 0.1 Kyrgyzstan 1,642 319 4.6 34 21 45 (2) 39 43 269 14.0 Lao People's Dem Rep 2,347 396 6.1 45 30 26 (8) 27 28 296 0.0 Malaysia 112,462 4,437 4.1 9 52 40 9 123 3,966 32 1.0 Mongolia 1,235 483 3.8 22 29 49 17 76 182 212 11.5 Myanmar .. .. .. .. .. .. .. .. 300 145 .. Nepal 6,347 234 3.9 38 21 41 23 16 3 428 16.5 Pakistan 92,771 596 3.7 22 25 53 1 15 2,183 1,667 4.0 Philippines 93,727 1,129 3.9 14 32 53 21 47 1,132 562 12.4 Singapore 112,215 25,845 4.6 0 34 66 .. 243 20,071 .. .. Sri Lanka 19,663 1,002 4.2 17 26 57 12 34 272 1,189 9.2 Tajikistan 1,544 237 6.3 24 32 44 (2) 54 55 241 21.4 Thailand 156,761 2,441 2.5 10 44 46 18 74 4,527 -171 0.7 Turkmenistan .. .. .. 20 41 39 c .. 65 62 28 .. Uzbekistan 17,906 684 4.5 28 29 43 (48) 40 45 172 .. Viet Nam 44,718 538 6.9 21 41 38 9 70 1,954 1,905 7.8 Europe 10,072,114 13,785 2.4 2 28 70 10 37 570,253 3,007 5.4 Albania 4,794 1,532 5.8 23 22 56 5 22 263 319 16.0 Austria 208,681 25,346 2.2 2 31 68 15 53 9,057 .. 1.0 Belarus 18,261 1,868 6.6 10 41 49 .. 61 305 54 1.4 Belgium 249,352 23,796 2.2 1 24 75 11 87 31,959 .. 1.9 Bosnia and Herzegovina 6,436 1,647 11.7 10 25 65 .. 36 299 546 17.5 Bulgaria 16,033 2,071 2.9 10 32 59 5 61 2,614 .. 8.0 Croatia 23,156 5,211 3.8 7 31 62 13 47 1,761 125 3.3 Czech Rep 67,836 6,628 2.3 3 37 60 15 72 .. .. 0.9 Denmark 171,208 31,612 1.9 2 25 74 14 49 5,238 .. 0.4 Estonia 7,890 5,862 6.3 4 29 67 11 84 2,997 .. 2.2 Finland 134,891 25,713 3.4 3 30 68 12 39 3,978 .. 0.4 France 1,430,131 23,494 2.3 2 21 77 11 26 70,686 .. 0.6 Germany 1,971,480 23,906 1.4 1 30 69 10 40 32,034 .. 0.2 Greece 142,125 12,799 4.1 5 21 74 8 21 640 .. 0.6 Hungary 57,696 5,720 4.4 4 31 65 c 7 66 6,436 .. 0.3 Iceland 10,427 35,136 4.0 7 25 68 c 8 32 2,472 .. 0.6 Ireland 124,735 29,991 7.6 3 37 60 c 21 83 c (29,730) .. 0.4 Italy 1,132,825 19,329 1.4 2 27 71 11 26 19,585 .. 0.1 Latvia 11,570 5,029 6.8 4 22 74 9 48 730 .. 2.4 Lithuania 16,547 4,846 5.6 6 34 61 11 58 1,032 .. 2.2 Macedonia, FYR 3,842 1,889 2.0 13 29 58 12 45 100 230 3.9 Moldova, Rep 1,807 430 2.4 17 25 59 14 53 199 192 29.1 Netherlands 403,042 24,696 2.3 2 24 74 14 71 40,416 .. 0.3 Norway 184,787 39,969 2.6 2 43 55 15 45 3,285 .. 0.2 Poland 198,578 5,203 3.9 5 31 65 8 37 9,602 .. 1.3 Portugal 116,287 11,023 2.4 3 25 73 1 29 3,201 .. 1.7 Romania 48,864 2,259 2.1 10 35 55 1 33 6,630 .. 5.6 Russian Federation 349,853 2,445 4.4 6 38 56 (10) 35 15,151 .. 0.5 Serbia {d} 11,047 1,370 .. 16 33 51 .. 27 1,481 1,132 17.7 Slovakia 25,651 4,762 3.9 4 29 67 2 79 1,908 .. 1.0 Slovenia 22,870 11,432 3.9 3 34 63 16 65 541 .. 0.8 Spain 678,021 15,623 3.8 3 30 67 12 25 22,789 .. 0.7 Sweden 270,308 29,954 2.8 1 28 71 19 49 10,679 .. 0.2 Switzerland 258,647 34,778 1.5 1 28 70 e .. 46 c 15,420 .. 0.5 Ukraine 45,188 960 3.8 11 34 55 4 54 7,808 410 0.8 United Kingdom 1,619,534 26,891 2.8 1 26 73 7 26 158,801 .. 0.3 Middle East & N. Africa 1,270,018 3,319 4.1 .. .. .. .. 47 .. 29,783 .. Afghanistan .. .. .. 36 25 39 .. 12 .. 2,775 .. Algeria 69,698 2,121 3.9 9 62 30 (2) 48 1,081 371 2.2 Egypt 120,216 1,624 4.4 15 36 49 (4) 31 5,376 926 5.4 Iran, Islamic Rep 132,621 1,943 4.7 10 45 45 (16) 39 30 104 0.6 Iraq 19,148 .. (2.3) c 9 70 21 e .. .. .. 21,654 .. Israel 127,167 18,367 2.8 .. .. .. .. 46 5,585 .. 0.7 Jordan 11,415 2,086 4.6 3 30 68 (1) 52 1,532 622 18.6 Kuwait 52,174 20,578 4.1 1 51 49 e .. 68 250 .. .. Lebanon 20,287 5,672 3.0 7 22 71 (13) 19 2,573 243 21.8 Libyan Arab Jamahiriya 43,998 7,517 4.8 .. .. .. .. .. .. 24 0.0 Morocco 40,910 1,356 3.6 14 30 56 24 36 1,552 652 8.7 Oman 22,706 8,961 .. c 2 56 42 c .. 57 c 715 31 .. Saudi Arabia 229,098 9,910 2.9 4 59 37 c .. 61 .. 26 .. Syrian Arab Rep 22,369 1,175 2.9 23 35 41 (39) 37 427 78 3.1 Tunisia 24,194 2,412 4.9 12 29 60 9 48 723 377 4.8 Turkey 246,224 3,417 3.2 12 24 65 8 27 9,805 464 0.2 United Arab Emirates 104,151 22,975 6.3 2 56 42 .. 94 .. .. .. Yemen 11,121 530 4.4 13 41 45 .. 46 (266) 336 10.2 214 W O R L D R E S O U R C E S 2 0 0 8 Gross Domestic Product (GDP) Adjusted Net Financial Flows Workers' (constant 2000 $US) Savings {a} Export of (million current $US) Remittances Average as a Percent Goods and Foreign Official as a Percent Total Per Annual of Gross Services Direct Development of Gross (million Capita Growth Rate GDP Distribution by Sector National as a Percent Investment Assistance National dollars) (dollars) 1995­2005 (percent) (percent) in 2005 Income (GNI) of GDP (net inflows) and Aid {b} Income 2005 2005 Agriculture Industry Services 2005 2005 2005 2005 2005 Sub-Saharan Africa 423,016 f 568 3.6 17 34 49 (6) 34 16,582 30,686 .. Angola 14,935 937 7.1 7 74 19 (39) 74 (1,304) 442 .. Benin 2,754 326 4.7 32 13 54 3 14 21 349 1.5 Botswana 8,204 4,649 7.1 2 53 44 .. 51 279 71 1.3 Burkina Faso 3,334 252 4.5 31 20 50 .. 9 20 660 1.0 Burundi 790 105 0.9 35 20 45 (6) 9 1 365 .. Cameroon 12,057 739 4.3 41 14 45 (3) 23 18 414 0.1 Central African Rep 918 227 0.9 54 21 25 7 .. 6 95 .. Chad 2,600 267 7.7 23 51 26 (58) 59 705 380 .. D Congo 3,987 997 3.1 6 46 48 (47) 82 724 1,449 0.3 A Congo, Dem Rep 5,236 91 (0.7) 46 25 29 1 32 402 1,828 .. T A Côte d'Ivoire 10,468 577 .. 23 26 51 2 50 266 119 1.0 Equatorial Guinea 2,019 4,101 20.3 c 7 89 4 e .. .. 1,860 39 .. T Eritrea 757 172 .. 23 23 55 3 9 11 355 .. A Ethiopia 10,018 141 .. 48 13 39 12 16 265 1,937 1.6 B Gabon 5,375 3,884 1.2 8 58 35 .. 59 300 54 0.1 L E Gambia 509 335 4.2 33 13 54 8 45 52 58 13.1 Ghana 6,357 287 4.5 38 23 39 13 36 107 1,120 1.0 3 Guinea 3,621 385 3.6 25 36 39 (6) 26 102 182 1.1 : Guinea-Bissau 213 135 (1.2) 60 12 28 1 38 10 79 9.9 E Kenya 15,151 442 2.5 27 19 54 8 27 21 768 2.8 C Lesotho 988 550 2.3 17 41 41 19 48 92 69 19.2 O Liberia 444 135 13.0 64 15 21 .. 37 194 236 .. N Madagascar 4,340 233 2.8 28 16 56 6 26 29 929 0.1 O Malawi 1,986 154 2.7 35 19 46 (11) 27 3 575 0.0 M Mali 3,294 244 6.1 37 24 39 5 26 159 692 3.0 IC Mauritania 1,317 429 3.1 24 29 47 (43) 36 115 190 0.1 S Mozambique 5,773 292 8.4 22 30 48 (3) 33 108 1,286 0.9 Namibia 4,231 2,083 3.9 10 32 58 34 46 .. 123 0.3 A Niger 2,184 156 3.3 40 17 43 e 1 15 12 515 1.8 N Nigeria 60,413 459 4.1 23 57 20 (31) 53 2,013 6,437 4.5 D Rwanda 2,351 260 7.2 42 21 37 12 11 8 576 1.0 T Senegal 5,521 474 4.4 18 19 63 9 27 54 689 7.8 R Sierra Leone 1,203 218 5.4 46 24 30 (3) 24 59 343 0.2 A Somalia .. .. .. .. .. .. .. .. 24 236 .. D South Africa 159,695 3,406 3.1 3 30 67 0 27 6,257 700 0.3 E Sudan 16,749 462 6.2 34 30 37 (10) 18 2,305 1,829 4.4 Tanzania, United Rep 12,646 330 .. 45 18 38 3 17 473 1,505 0.1 Togo 1,502 244 .. 42 23 35 0 34 3 87 6.9 Uganda 7,786 270 5.9 33 25 43 1 13 257 1,198 6.0 Zambia 4,090 350 3.5 19 25 56 (5) 16 259 945 .. Zimbabwe 5,547 426 (3.3) 18 23 59 (9) 43 103 368 .. North America 11,855,976 36,076 3.2 1 22 77 c 3 12 c 143,900 .. 0.0 Canada 809,546 25,064 3.5 .. .. .. 5 39 c 34,146 .. .. United States 11,046,430 37,267 3.2 1 22 77 c 3 10 c 109,754 2,923.. 0.0 C. America & Caribbean 767,298 4,698 2.2 5 26 69 4 31 25,910 5.8 Belize 1,082 3,708 6.3 14 18 68 0 55 126 13 4.4 Costa Rica 19,470 4,499 4.5 9 30 62 16 49 861 30 2.1 Cuba .. .. .. .. .. .. .. .. .. 88 .. Dominican Rep 23,396 2,630 5.3 12 26 62 8 34 1,023 77 12.4 El Salvador 14,634 2,127 2.6 10 30 60 2 27 518 199 16.9 Guatemala 21,851 1,734 3.2 23 19 58 3 16 208 254 10.0 Haiti 3,701 434 0.7 28 17 55 e .. .. 10 515 25.4 Honduras 7,098 985 3.1 14 31 55 23 41 464 681 22.3 Jamaica 8,736 3,291 0.9 6 33 61 14 41 683 36 19.8 Mexico 636,268 6,172 3.4 4 26 70 4 30 18,772 189 2.9 Nicaragua 4,577 889 3.8 19 28 53 5 28 241 740 12.3 Panama 14,245 4,408 4.0 8 16 76 2 69 1,027 20 0.8 Trinidad and Tobago 11,856 9,083 6.5 1 60 40 .. .. 1,100 -2 0.6 South America 1,434,828 3,829 1.7 9 38 54 3 24 44,660 2,440 3.1 Argentina 313,626 8,094 0.7 9 36 55 4 25 4,730 100 0.2 Bolivia 9,742 1,061 2.9 15 32 53 (20) 36 (277) 583 3.6 Brazil 670,450 3,597 2.1 8 38 54 8 17 15,193 192 0.5 Chile 93,216 5,721 3.7 6 47 48 (6) 42 6,667 152 0.0 Colombia 99,130 2,174 1.8 13 34 53 1 22 10,375 511 3.2 Ecuador 20,496 1,549 2.7 7 46 48 (14) 31 1,646 210 5.9 Guyana 736 980 1.3 31 25 45 (4) 88 77 137 26.1 Paraguay 8,030 1,361 0.8 22 19 59 10 47 64 51 4.4 Peru 65,353 2,337 2.9 7 35 58 5 25 2,519 398 1.9 Suriname 1,147 2,554 3.0 11 24 65 .. 41 .. 44 0.4 Uruguay 21,632 6,246 0.0 9 31 60 1 30 711 15 0.5 Venezuela 131,270 4,939 0.4 5 52 44 e (7) 41 2,957 49 0.1 Oceania 538,269 16,566 3.3 4 27 69 c 6 20 c (32,397) 858 0.6 Australia 468,369 23,039 3.6 3 27 70 c 4 18 c (34,420) .. 0.4 Fiji 1,863 2,198 2.3 16 25 59 39 .. (4) 64 0.9 New Zealand 62,704 15,298 3.2 .. .. .. 15 29 c 1,979 .. 0.7 Papua New Guinea 3,783 643 0.9 42 39 19 c .. .. 34 266 .. Solomon Islands 323 677 (1.9) .. .. .. .. 48 c (1) 198 0.7 High Income 28,546,090 f 28,612 2.5 2 26 72 c 8 .. 693,488 .. 1.0 Middle Income 6,681,480 f 2,196 5.2 10 39 51 11 37 258,999 43,772 16.0 Low Income 1,132,382 f 494 4.4 21 29 50 10 26 21,796 43,216 10.4 a. Adjusted net savings, formerly called genuine savings, measures the "true" rate of savings by taking into account human capital, depletion of natural resources, and damages from pollution. b. Represents inflows of development assistance and aid. c. 2004 value. d. Data for Serbia include the country of Montenegro (these countries were a single nation from 2003 to 2006). e. 2003 value. f. Regional totals calculated by the World Bank. 215 3 Economics and Trade: Technical Notes DEFINITIONS AND METHODOLOGY account investments in human capital, depletion of natural resources, and damage caused by pollution. Data are shown as a percent of gross national income (GNI). Gross Domestic Product (GDP) is the sum of the value added by all producers in an economy. Data are expressed in 2000 constant U.S. dollars. Currencies are Exports of Goods and Services represents the value of all goods and other converted to dollars using the International Monetary Fund's (IMF) average official market services provided to the rest of the world. Exports include the value of exchange rate for 2005. Gross domestic product estimates at purchaser values merchandise, freight, insurance, transport, travel, royalties, license fees, and other (market prices) include the value added in the agriculture, industry, and service services, such as communication, construction, financial, information, business, sectors, plus taxes and minus subsidies not included in the final value of the personal, and government services. They exclude labor and property income products. It is calculated without making deductions for depreciation of fabricated (formerly called factor services) as well as transfer payments. Data are presented assets or for depletion of natural resources. To obtain comparable series of in millions of current US dollars. WRI calculates Exports of Goods and Services constant price data, the World Bank rescales GDP and value added by industrial as a Percent of GDP by dividing total exports by GDP figures provided by the origin to a common reference year, currently 2000. World Bank. National accounts indicators for most developing countries are collected Foreign Direct Investment (FDI) is private investment in a foreign economy to from national statistical organizations and central banks by visiting and resident obtain a lasting management interest (10 percent or more of voting stock) in an World Bank missions. The data for high-income economies are obtained from the enterprise. The IMF defines FDI in its manual Balance of Payments as the sum of Organisation for Economic Co-operation and Development (OECD) data files (see equity investment, reinvestment of earnings, and inter-company loans between the OECD's monthly Main Economic Indicators). The United Nations Statistics parent corporations and foreign affiliates. Data are in million current US dollars. Division publishes detailed national accounts for UN member countries in National FDI became the dominant means for funds transfer from rich to poor countries after Accounts Statistics: Main Aggregates and Detailed Tables and updates in the the liberalization of global financial markets in the 1970s and accounts for more Monthly Bulletin of Statistics. than half of financial flows to developing countries. Data are based on balance of Gross Domestic Product per Capita is the total annual output of a country's payments information reported by the IMF, supplemented by data from the OECD economy divided by the mid-year population. Values are obtained directly from the and official national sources. Negative numbers mean that outflows of investment World Bank. by foreign countries into a particular country (or reinvestment of profits outside the country) exceed inflows. Average Annual Growth Rate of GDP is the average percentage growth of a country or region's economy for each year between (and including) 1995 and 2005. Official Development Assistance (ODA) and Aid measures the amount of ODA WRI assumes compound growth and uses the least-squares method to calculate received by a country. It includes concessions by governments and international average annual percent growth of GDP in 2000 US dollars. The least squares institutions to developing countries to promote economic development and welfare. method works by fitting a trend line to the natural logarithm of annual GDP values. The data shown here record the actual receipts of financial resources or of goods The slope (m) of this trend line is used to calculate the annual growth rate (r) using or services valued at the cost to the donor, less any repayments of loan principal the equation r = em ­ 1. The growth rate is an average rate that is representative during the same period. Values are reported in million current US dollars. Grants by of the available observations over the entire period. It does not necessarily match official agencies of the members of the Development Assistance Committee (DAC) the actual growth rate between any two periods. of the OECD are included, as are loans with a grant element of at least 25 percent as well as technical cooperation and assistance. The data on development assis- Distribution of GDP by Sector is the percent of total output of goods and services tance are compiled by DAC and published in its annual statistical report, that is a result of value added by a given sector. Value added is the net output of Geographical Distribution of Financial Flows to Aid Recipients, and in the DAC a sector after adding up all outputs and subtracting intermediate inputs. The annual Development Co-operation Report. industrial origin of value added is determined by the International Standard Indus- trial Classification (ISIC), a classification system for economic activity developed WRI calculates Workers' Remittances as a Percent of GNI by dividing remit- and maintained by the United Nations. Agriculture corresponds to ISIC divisions tances by gross national income. Both values are originally in current US dollars, 1­5 and includes forestry and fishing. Industry corresponds to ISIC divisions and the quotient is expressed as a percentage. Remittances measure the transfer 10­45 and includes manufacturing (ISIC divisions 15­37). It comprises value of earned wages by migrant workers to their home country. They include all trans- added in mining, manufacturing, construction, electricity, water, and gas. fers by migrants who are employed or intend to remain employed for more than a Services corresponds to ISIC divisions 50­99 and includes value added in whole- year in another economy in which they are considered residents. Transfers made by sale and retail trade (including hotels and restaurants); transport; and self-employed workers are not considered remittances, as this indicator attempts government, financial, professional, and personal services such as education, to describe money raised through labor rather than entrepreneurial activity. Since health care, and real estate services. Since this value is calculated as total GDP 1980, recorded remittance receipts to low- and middle-income countries have less the portion from agriculture and industry, any discrepancies that may occur in increased sixfold. Data are collected from the IMF's Balance of Payments Yearbook. the GDP distribution by sector calculation will appear here. The IMF data are supplemented by World Bank staff estimates for missing data for countries where workers' remittances are important. Adjusted Net Savings (previously "genuine savings") is equal to a nation's private and public net savings (gross domestic product plus net income and transfers from abroad minus consumption of fixed capital) plus education expenditure, minus FREQUENCY OF UPDATE BY DATA PROVIDERS energy depletion, mineral depletion, net forest depletion, and carbon dioxide and particulate emissions damage. Adjusted Net Savings is an indicator of sustainabil- The World Bank publishes World Development Indicators each year in April. Data for ity; persistently negative rates of savings must lead, eventually, to declining this table were taken from the 2007 online edition, which typically includes values well-being. It measures the true rate of savings in an economy after taking into through 2005. 216 DATA RELIABILITY AND CAUTIONARY NOTES Gross Domestic Product: The World Bank produces the most reliable global GDP estimates available. However, informal economic activities sometimes pose a measurement problem, especially in developing countries, where much economic activity may go unrecorded. Obtaining a complete picture of the economy requires estimating household outputs produced for local sale and home use, barter exchanges, and illicit or deliberately unreported activity. Technical improvements and growth in the services sector are both particularly difficult to measure. How consistent and complete such estimates will be depends on the skill and methods of the compiling statisticians and the resources available to them. Because values are measured in US dollars, these data do not account for differences in purchas- ing power among countries. Adjusted Net Savings: The data that were used to calculate adjusted net savings are mostly from official sources and are generally considered to be reliable. However, due to methodological or data limitations, the calculation omits several important resources including soils, fish, water resources, and water and air pollutants. Foreign Direct Investment: Because of the multiplicity of sources, definitions, and reporting methods, data may not be comparable across countries. (Data do not include capital raised locally, which has become an important source of financing in some developing countries.) In addition, data only capture cross-border invest- ment flows when equity participation is involved and thus omit non-equity cross-border transactions. For a more detailed discussion, please refer to the World Bank's World Debt Tables 1993­1994, volume 1, chapter 3. Official Development Assistance: Data are not directly comparable, since the ODA figures do not distinguish among different types of aid, which can affect individual economies in different ways. Because data are based on donor-country reports, they may not match aid receipts recorded in developing and transition economies. According to the World Bank, "the nominal values used here may overstate the real value of aid to the recipient." The purchasing power of foreign aid can decrease when price and exchange rates fluctuate, grants are tied to specific policy restrictions, or technical assistance pays for the work of firms in other countries. Worker Remittances: Data on worker remittances are reported by the countries receiving the transfers. Variations in reporting standards do exist, particularly in determining the residency status of a worker. This may lead to some differences across countries. SOURCES Development Data Group, World Bank. 2007. 2007 World Development Indicators. Washington, DC: World Bank. Online at http://go.worldbank.org/B53SONGPA0. 217 4 Institutions and Governance Sources: Freedom House, United Nations Human Settlements Programme, World Bank, Privacy International, International Telecommunications Union, Transparency International Access to Information (1­7, 1=most free) Freedom Indices Regulatory Barriers to Government Expenditures Press Digital Corruption Registering Property, 2007 (as a percent of Freedom Status of Access Perceptions Civil Political Average Average Cost gross domestic product) Freedom of (1­100, 100= Index Liberties Rights Number of to Register Public Public (0­Index 0= 100, Information (0­Index10= 10, Index Index Days to (percent of Health Education {a} Military most free) Legislation most access) least corrupt) 2006 2006 Register property value) 2004 2000-2005 2005 2006 2004 2002 2006 World .. .. .. .. 5.9 4.7 2.5 .. .. .. .. Asia (excl. Middle East) .. .. .. .. 4.3 .. 1.5 .. .. .. .. Armenia 4 5 4 0.4 1.4 3.2 2.7 64 Law Enacted 30 2.9 Azerbaijan 5 6 61 0.2 0.9 2.5 2.1 73 Pending Effort 24 2.4 Bangladesh 4 4 425 10.3 0.9 2.5 1.1 68 Pending Effort 18 2.0 Bhutan 5 6 64 0 3.0 5.6 .. 65 .. 13 6.0 Cambodia 5 6 56 4.4 1.7 1.9 1.8 61 .. 17 2.1 China 6 7 29 3.6 1.8 .. 2.0 83 .. 43 3.3 Georgia 3 3 5 0.1 1.5 2.9 3.1 57 Law Enacted 37 2.8 India 3 2 62 7.7 0.9 3.7 2.9 37 Law Enacted 32 3.3 Indonesia 3 2 42 10.5 1.0 0.9 0.9 58 Pending Effort 34 2.4 Japan 2 1 14 5 6.3 3.7 1.0 20 Law Enacted 75 7.6 Kazakhstan 5 6 52 0.9 2.3 2.3 1.1 75 .. 41 2.6 Korea, Dem People's Rep 7 7 .. .. 3.0 .. .. 97 .. .. .. Korea, Rep 2 1 11 6.3 2.9 4.6 2.6 30 Law Enacted 82 5.1 Kyrgyzstan 4 5 4 4.1 2.3 4.4 2.8 b 64 .. 32 2.2 Lao People's Dem Rep 6 7 135 4.2 0.8 2.3 .. 81 .. 15 2.6 Malaysia 4 4 144 2.4 2.2 8.0 1.9 65 .. 57 5.0 Mongolia 2 2 11 2.2 4.0 5.3 1.7 b 34 .. 35 2.8 Myanmar 7 7 .. .. 0.3 1.3 .. 96 .. 17 1.9 Nepal 4 5 5 6.4 1.5 3.4 2.0 77 Pending Effort 19 2.5 Pakistan 5 6 50 5.3 0.4 2.3 3.4 61 Law Enacted 24 2.2 Philippines 3 3 33 4.2 1.4 3.2 0.8 40 Pending Effort 43 2.5 Singapore 4 5 9 2.8 1.3 3.7 4.7 66 .. 75 9.4 Sri Lanka 4 4 83 5.1 2.0 .. 2.7 58 Pending Effort 38 3.1 Tajikistan 5 6 37 1.9 1.0 3.5 2.2 b 76 Law Enacted 21 2.2 Thailand 4 7 2 6.3 2.3 4.2 1.1 50 Law Enacted 48 3.6 Turkmenistan 7 7 .. .. 3.3 .. .. 96 .. 37 2.2 Uzbekistan 7 7 78 1.4 2.4 .. .. 90 Law Enacted 31 2.1 Viet Nam 5 7 67 1.2 1.5 .. .. 79 .. 31 2.6 Europe .. .. .. .. 7.0 5.3 1.9 .. .. .. .. Albania 3 3 47 3.5 3.0 2.9 1.4 50 Law Enacted 39 2.6 Austria 1 1 32 4.5 7.8 5.5 0.7 21 Law Enacted 75 8.6 Belarus 6 7 231 0.1 4.6 6.0 1.2 88 .. 49 2.1 Belgium 1 1 132 12.7 6.9 6.2 1.2 11 Law Enacted 74 7.3 Bosnia and Herzegovina 3 3 331 5 4.1 .. 1.8 45 Law Enacted 46 2.9 Bulgaria 2 1 19 2.3 4.6 4.2 2.4 34 Law Enacted 53 4.0 Croatia 2 2 174 5 6.2 4.7 1.6 39 Law Enacted 59 3.4 Czech Rep 1 1 123 3 6.5 4.5 1.8 20 Law Enacted 66 4.8 Denmark 1 1 42 0.6 7.1 8.4 1.4 10 Law Enacted 83 9.5 Estonia 1 1 51 0.5 4.0 5.7 1.6 16 Law Enacted 67 6.7 Finland 1 1 14 4 5.7 6.5 1.2 9 Law Enacted 79 9.6 France 1 1 123 6.1 8.2 5.9 2.5 21 Law Enacted 72 7.4 Germany 1 1 40 5.2 8.2 4.7 1.4 16 Pending Effort 74 8.0 Greece 2 1 23 4 4.2 4.0 4.5 28 Law Enacted 66 4.4 Hungary 1 1 63 11 5.7 5.9 1.3 21 Law Enacted 63 5.2 Iceland 1 1 4 2.4 8.3 8.1 0.0 9 Law Enacted 82 9.6 Ireland 1 1 38 10.2 5.7 4.5 0.6 15 Law Enacted 69 7.4 Italy 1 1 27 0.6 6.5 4.9 1.8 35 Law Enacted 72 4.9 Latvia 1 1 54 2 4.0 5.3 1.7 19 Law Enacted 54 4.7 Lithuania 1 1 3 0.7 4.9 5.2 1.8 18 Law Enacted 56 4.8 Macedonia, FYR 3 3 98 3.5 5.7 3.4 2.2 49 Pending Effort 48 2.7 Moldova, Rep 4 3 48 0.9 4.2 4.3 0.3 65 Law Enacted 37 3.2 Netherlands 1 1 5 6.2 5.7 5.3 1.6 11 Law Enacted 79 8.7 Norway 1 1 3 2.5 8.1 7.7 1.6 10 Law Enacted 79 8.8 Poland 1 1 197 0.5 4.3 5.6 1.8 21 Law Enacted 59 3.7 Portugal 1 1 42 7.4 7.0 5.9 2.1 14 Law Enacted 65 6.6 Romania 2 2 150 2.8 3.4 3.6 2.1 44 Law Enacted 48 3.1 Russian Federation 5 6 52 0.3 3.7 3.7 3.7 72 Pending Effort 50 2.5 Serbia {c} 2 3 .. .. 7.3 3.3 2.7 40 Pending Effort 45 3.0 Slovakia 1 1 17 0.1 5.3 4.4 1.8 20 Law Enacted 59 4.7 Slovenia 1 1 391 2 6.6 6.0 1.7 20 Law Enacted 72 6.4 Spain 1 1 18 7.1 5.7 4.3 1.0 21 Law Enacted 67 6.8 Sweden 1 1 2 3 7.7 7.5 1.6 10 Law Enacted 85 9.2 Switzerland 1 1 16 0.4 6.7 6.1 1.0 11 Pending Effort 76 9.1 Ukraine 2 3 93 3.3 3.7 6.4 2.4 53 Law Enacted 43 2.8 United Kingdom 1 1 21 4.1 7.0 5.5 2.6 19 Law Enacted 77 8.6 Middle East & N. Africa .. .. .. .. 3.5 .. 4.8 .. .. .. .. Afghanistan 5 5 250 7 0.7 .. .. 69 .. .. .. Algeria 5 6 51 7.5 2.6 .. 2.8 61 .. 37 3.1 Egypt 5 6 193 1 2.2 .. 2.8 61 .. 40 3.3 Iran, Islamic Rep 6 6 36 10.6 3.2 4.7 4.5 84 .. 43 2.7 Iraq 6 6 8 6.3 4.2 .. .. 71 .. .. 1.9 Israel 2 1 144 7.5 6.1 7.3 7.9 28 Law Enacted 70 5.9 Jordan 4 5 22 10 4.7 .. 7.7 61 .. 45 5.3 Kuwait 4 4 55 0.5 2.2 5.1 5.7 56 .. 51 4.8 Lebanon 4 5 25 5.9 3.2 2.6 3.8 b 60 .. 48 3.6 Libyan Arab Jamahiriya 7 7 .. .. 2.8 .. 1.9 b 96 .. 42 2.7 Morocco 4 5 47 4.9 1.7 6.7 4.3 61 .. 33 3.2 Oman 5 6 16 3 2.4 3.6 12.2 b 70 .. 43 5.4 Saudi Arabia 6 7 4 0 2.5 6.8 8.2 79 .. 44 3.3 Syrian Arab Rep 6 7 34 28.1 2.2 .. 6.2 b 84 .. 28 2.9 Tunisia 5 6 49 6.1 .. 8.1 1.5 83 .. 41 4.6 Turkey 3 3 6 3.1 5.6 4.0 3.2 48 Law Enacted 48 3.8 United Arab Emirates 5 6 6 2 2.0 1.3 1.9 65 .. 64 6.2 Yemen 5 5 21 3.9 1.9 9.6 5.6 81 .. 18 2.6 218 W O R L D R E S O U R C E S 2 0 0 8 Access to Information (1­7, 1=most free) Freedom Indices Regulatory Barriers to Government Expenditures Press Digital Corruption Registering Property, 2007 (as a percent of Freedom Status of Access Perceptions Civil Political Average Average Cost gross domestic product) Freedom of (1­100, 100= Index Liberties Rights Number of to Register Public Public (0­Index 0= 100, Information (0­Index10= 10, Index Index Days to (percent of Health Education {a} Military most free) Legislation most access) least corrupt) 2006 2006 Register property value) 2004 2000-2005 2005 2006 2004 2002 2006 Sub-Saharan Africa .. .. .. .. 2.6 .. 1.6 b .. .. .. .. Angola 5 6 334 11.1 1.5 2.6 5.0 65 Pending Effort 11 2.2 Benin 2 2 118 11.4 2.5 3.5 .. 30 .. 12 2.5 Botswana 2 2 30 5 4.0 10.7 2.5 35 Pending Effort 43 5.6 Burkina Faso 3 5 182 12.2 3.3 4.7 1.5 38 .. 8 3.2 Burundi 5 4 94 11.5 0.8 5.1 6.5 b 74 .. 10 2.4 Cameroon 6 6 93 17.8 1.5 1.8 1.3 65 .. 16 2.3 Central African Rep 4 5 69 11.7 1.5 .. 1.1 61 .. 10 2.4 Chad 6 6 44 21.2 1.5 2.1 0.9 73 .. 10 2.0 Congo 5 6 137 27.3 1.2 2.2 .. 51 .. 17 2.2 D Congo, Dem Rep 6 5 57 9.4 1.1 .. 2.1 81 .. 12 2.0 A Côte d'Ivoire 6 7 62 16.9 0.9 4.6 .. 65 .. 13 2.1 T A Equatorial Guinea 6 7 23 6.3 1.2 0.6 .. 88 .. 20 2.1 Eritrea 6 7 101 5.3 1.8 5.4 .. 91 .. 13 2.9 T Ethiopia 5 5 43 7.5 2.7 5.0 3.1 75 Pending Effort 10 2.4 A Gabon 4 6 60 10.5 3.1 3.9 1.4 67 .. 34 3.0 B L Gambia 4 5 371 7.6 1.8 2.0 0.3 73 .. 13 2.5 E Ghana 2 1 34 1.3 2.8 5.4 0.7 28 Pending Effort 16 3.3 Guinea 5 6 104 15.3 0.7 2.0 .. 67 .. 10 1.9 4 Guinea-Bissau 4 4 211 5.4 1.3 .. .. 47 .. 10 .. : Kenya 3 3 64 4.2 1.8 6.7 1.5 58 Pending Effort 19 2.2 IN Lesotho 3 2 101 8.2 5.5 13.4 2.4 42 Pending Effort 19 3.2 S Liberia 4 3 50 14.9 3.6 .. .. 64 .. .. .. T Madagascar 3 4 134 11.6 1.8 3.2 .. 49 .. 15 3.1 Malawi 3 4 88 3.3 9.6 5.8 .. 55 Pending Effort 15 2.7 IT Mali 2 2 29 21.2 3.2 4.3 1.9 24 .. 9 2.8 U T Mauritania 4 5 49 5.2 2.0 2.3 1.0 57 .. 14 3.1 Mozambique 4 3 42 8.1 2.7 3.7 1.4 43 Pending Effort 12 2.8 IO Namibia 2 2 23 9.9 4.7 6.9 3.0 30 Pending Effort 39 4.1 N Niger 3 3 32 9 2.2 2.3 1.1 b 56 .. 4 2.3 S Nigeria 4 4 82 22.2 1.4 .. 0.9 54 Pending Effort 15 2.2 A Rwanda 5 6 371 9.4 4.3 3.8 2.2 85 .. 15 2.5 N Senegal 3 2 114 19.5 2.4 5.4 1.5 44 .. 14 3.3 D Sierra Leone 3 4 235 14.9 1.9 3.8 1.1 59 .. 10 2.2 Somalia 7 7 .. .. .. .. .. 83 .. .. .. G South Africa 2 2 24 8.8 3.5 5.4 1.4 27 Law Enacted 45 4.6 O Sudan 7 7 9 3.2 1.5 .. .. 85 .. 13 2.0 V Tanzania, United Rep 3 4 119 5.3 1.7 .. 1.1 50 Pending Effort 15 2.9 E R Togo 5 6 295 13.9 1.1 2.6 1.5 78 .. 18 2.4 N Uganda 4 5 227 4.6 2.5 5.2 2.5 b 52 Pending Effort 17 2.7 A Zambia 4 3 70 9.6 3.4 2.0 .. 64 Pending Effort 17 2.6 N Zimbabwe 6 7 30 25 3.5 4.6 3.4 b 90 Law Enacted 29 2.4 C North America .. .. .. .. 6.9 5.9 3.9 .. .. .. .. E Canada 1 1 17 1.8 6.8 5.2 1.1 18 Law Enacted 78 8.5 United States 1 1 12 0.5 6.9 5.9 4.1 16 Law Enacted 78 7.3 C. America & Caribbean .. .. .. .. 3.1 5.5 0.4 .. .. .. .. Belize 2 1 60 4.7 2.7 5.4 .. 21 Law Enacted 47 3.5 Costa Rica 1 1 21 3.3 5.1 4.9 .. 18 .. 52 4.1 Cuba 7 7 .. .. 5.5 9.8 .. 96 .. 38 3.5 Dominican Rep 2 2 60 5.1 1.9 1.8 0.6 37 Pending Effort 42 2.8 El Salvador 3 2 31 3.6 3.5 2.8 0.6 43 Pending Effort 38 4.0 Guatemala 4 3 30 1 2.3 .. 0.4 58 Pending Effort 38 2.6 Haiti 5 4 405 6.5 2.9 .. .. 68 .. 15 1.8 Honduras 3 3 24 5.8 4.0 .. 0.6 52 Pending Effort 29 2.5 Jamaica 3 2 54 13.5 2.8 4.5 0.7 17 Law Enacted 53 3.7 Mexico 3 2 74 4.7 3.0 5.8 0.4 48 Law Enacted 50 3.3 Nicaragua 3 3 124 3.5 3.9 3.1 0.7 44 Pending Effort 19 2.6 Panama 2 1 44 2.4 5.2 3.8 .. 43 Law Enacted 47 3.1 Trinidad and Tobago 2 2 162 7 1.4 4.2 .. 26 Law Enacted 53 3.2 South America .. .. .. .. 4.2 4.1 1.7 .. .. .. .. Argentina 2 2 65 7.6 4.3 3.5 1.0 45 Pending Effort 53 2.9 Bolivia 3 3 92 4.9 4.1 6.4 1.9 33 Pending Effort 38 2.7 Brazil 2 2 45 2.8 4.8 4.1 1.6 39 Pending Effort 50 3.3 Chile 1 1 31 1.3 2.9 3.7 3.8 26 Pending Effort 58 7.3 Colombia 3 3 23 2.5 6.7 4.8 3.7 61 Law Enacted 45 3.9 Ecuador 3 3 17 3 2.2 .. 2.4 41 Law Enacted 41 2.3 Guyana 3 2 34 4.5 4.4 8.5 .. 27 .. 43 2.5 Paraguay 3 3 46 3.5 2.6 4.3 0.8 57 Pending Effort 39 2.6 Peru 3 2 33 3.3 1.9 2.4 1.2 39 Law Enacted 44 3.3 Suriname 2 2 193 13.7 3.6 .. .. 23 .. 46 3.0 Uruguay 1 1 66 7.1 3.6 2.2 1.4 28 Pending Effort 54 6.4 Venezuela 4 4 47 2.2 2.0 .. 1.1 72 .. 47 2.3 Oceania .. .. .. .. 6.4 5.0 1.7 .. .. .. .. Australia 1 1 5 4.9 6.5 4.8 1.8 19 Law Enacted 74 8.7 Fiji 4 6 48 12 2.9 6.4 1.2 b 28 Pending Effort 43 .. New Zealand 1 1 2 0.1 6.5 6.8 1.0 13 Law Enacted 72 9.6 Papua New Guinea 3 3 72 5.1 3.0 .. 0.5 29 Pending Effort 26 2.4 Solomon Islands 3 4 297 4.9 5.6 .. .. 30 .. 17 .. a. May include subsidies for private or religious schools. Data are for the most recent year available between 2000 and 2005. b. 2004 value. c. Data for Serbia include the country of Montenegro. Key to Indices: Press Freedom Index (Freedom House): Scaled from 1 to 100. 1­30 = Free, 31­60 = Partly Free, 61­100 = Not Free. Freedom Indices (Freedom House): Scaled from1 to 7, 1 represents a completely free nation, 7 represents a nation with virtually no freedom. Status of Freedom of Information Legislation (Privacy International): Legislation is classified as either enacted or pending. ".." indicates that either no data are available for this country, or, more likely, that FOI legislation does not exist. Digital Access Index (International Telecommunications Union): Scaled from 0 to 100, 100 represents highest access. Corruption Perceptions Index (Transparency International): Scaled from 0 (most corrupt) to 10 (least corrupt). 219 4 Institutions and Governance: Technical Notes DEFINITIONS AND METHODOLOGY (including donations from international agencies and NGOs), and social (or compulsory) health insurance funds. The estimates of health expenditure come Freedom Indices, compiled by the nonprofit organization Freedom House, range mostly from the World Health Organization's (WHO) World Health Report 2003 and from 1 to 7, with 1 representing the most free and 7 representing the least free. To its subsequent updates, and from the Organisation for Economic Co-operation and determine each rating, researchers answer a series of survey questions, making Development (OECD) for its member countries, supplemented by World Bank small adjustments for factors such as extreme violence. Freedom House notes that poverty assessments and country-sector studies. Data are also drawn from the a poor rating for a country "is not necessarily a comment on the intentions of the International Monetary Fund. government, but may indicate real restrictions on liberty caused by non-govern- mental terror." Public Education Expenditure consists of public spending on public education plus subsidies to private education at the primary, secondary, and post-secondary The Civil Liberties Index measures freedom of expression, assembly, association, levels. Foreign aid for education is excluded. Education expenditure estimates are and religion. Countries with a rating of 1 generally have an established and provided to the World Bank by the Institute for Statistics of the United Nations equitable rule of law with free economic activity. A rating of 2 indicates some Educational, Scientific, and Cultural Organization (UNESCO). UNESCO compiles its deficiencies, while a rating of 3, 4, or 5 indicates varying degrees of censorship, data from annual financial reports of central or federal governments and state or political terror, and prevention of free association. Countries with a rating of regional administrations. 6 experience severely restricted freedom of expression and association coupled with political terror (for example, political prisoners). A rating of 7 indicates virtu- Military Expenditure is defined by the Stockholm International Peace Research ally no freedom. Institute (SIPRI) as "all current and capital expenditure on: (a) the armed forces, including peacekeeping forces; (b) defense ministries and other government The Political Rights Index measures the degree of freedom in the electoral agencies engaged in defense projects; (c) paramilitary forces, when judged to be process, political pluralism and participation, and functioning of government. A trained an equipped for military operations; and (d) military space activities." rating of 1 indicates free and fair elections, political competition, and autonomy for Expenditures include the cost of procurements, personnel, research and develop- all citizens, including minority groups. A rating of 2 indicates some corruption, ment, construction, operations, maintenance, and military aid to other countries. violence, political discrimination, and military influence. These same factors play a Civil defense, veterans' benefits, demobilization, and destruction of weapons are progressively larger role in countries with a ranking of 3, 4, or 5. Countries and not included as military expenditures. The World Bank uses data collected by SIPRI territories with political rights rated 6 are ruled by military juntas, one-party dicta- for its annual World Development Indicators military expenditure dataset. torships, religious hierarchies, or autocrats. A rating of 7 indicates nonexistent political rights due to extremely oppressive regimes, civil war, extreme violence, or Press Freedom is "the degree to which each country permits the free flow of infor- warlord rule. mation," according to Freedom House, ranked on a scale of 1 to 100. Countries with a score between 1 and 30 are considered to have a "Free" media; 31 to 60, "Partly Regulatory Barriers to Registering Property, published by the World Bank's Free"; and 61 to 100, "Not Free." This survey does not measure press responsibil- Doing Business database, are compiled via survey in conjunction with academic ity; rather, it measures the degree of freedom in the flow of information. Press advisers, using a simple business case to ensure comparability across countries freedom data are collected from overseas correspondents, staff travel, interna- and over time. Surveys are administered through more than 5,000 local experts, tional visitors, the findings of human rights organizations, specialists in including lawyers, business consultants, accountants, government officials, and geographic and geopolitical areas, the reports of governments, and a variety of other professionals routinely administering or advising on legal and regulatory domestic and international news media. The final index is a sum of three separate requirements. Broadly speaking, higher values here represent regulatory environ- components that reflect the legal, political, and economic environments that press ments that stifle the formalization of property rights. in each country operate within. Average Number of Days to Register measures the time, in calendar days, Status of Freedom of Information (FOI) Legislation measures a government's necessary for a business to complete the legal and bureaucratic procedures guarantee of public access to information by placing each country in one of three required for registering property. Governments differ significantly in the require- categories: In Effect: 57 countries legally guarantee public access to government ments for this process. Data for registering property are produced assuming a records through comprehensive FOI laws; Pending: 39 additional countries are standardized case of an entrepreneur who wants to purchase land and a building considering adopting freedom of information acts; None: countries not listed have in the country's largest business city. no pending FOI legislation (represented by ".." in the data table, which could indicate that no data are available for this country). Access to information about Average Cost to Register measures the cost to a business, expressed as a government activities increases transparency and allows citizens to more effec- percent of the property value, needed to complete the legal and bureaucratic proce- tively combat corruption. Data are compiled by Privacy International by author dures required for registering property. Cost includes fees, transfer taxes, stamp David Banisar on a country-by-country basis. The specifics of each country's legis- duties, and any other payment to the property registry, notaries, public agencies, or lation and constitutional guarantees are explained in detail in the source lawyers. Other taxes, such as capital gains tax or value added tax, are excluded publications. from the cost measure. Data are produced assuming a standardized case of an entrepreneur who wants to purchase land and a building in the country's largest The Digital Access Index is a composite score, developed by the International business city. Telecommunications Union (ITU), which reflects the ability of each country's population to take advantage of internet communication technologies. It ranges Government Expenditures as a percent of gross domestic product roughly from 1 to 100, where 100 equals the most access. The Index is calculated as a indicate the economic importance of public health, public education, and military weighted average of eight variables describing infrastructure, affordability, educa- activities in national economies. tional level of the population, quality of information and communication technology Public Health Expenditure consists of recurrent and capital spending from services, and Internet usage. government (both central and local) budgets, external borrowings and grants 220 The Corruption Perceptions Index (CPI) measures the degree to which corrup- When a time series is not available or a country's definition of military expenditure tion is perceived to exist among public officials and politicians. Ratings range in differs from SIPRI's, estimates are made based on analysis of official government value from 10 (least corrupt) to 0 (most corrupt). The survey measures public sector budget statistics. Estimates are always based on empirical evidence, not assump- corruption or the abuse of public office for private gain. It measures local and tions or extrapolations. SIPRI cautions that military expenditure does not relate national governments, not domestic and foreign corporations doing business in directly to military capability or security. these countries. The CPI is compiled from 12 surveys originating from nine differ- Status of FOI Legislation: While the FOI data have been thoroughly researched, ent independent institutions. A country is included in the CPI only if there are data there are unavoidable difficulties in assigning each country to one of three available from 3 or more surveys. The surveys measure the perceptions of local categories. Some countries have laws guaranteeing access, but the laws are not residents, expatriates, business people, academics, and risk analysts. Survey enforced. Still others guarantee access to government documents in specific results are combined in three-year periods to reduce abrupt variations that could categories, excluding access in other categories. T potentially be caused by errors. Thus, figures for 2006 are based on surveys taken E C not only in 2006, but in 2004 and 2005 as well. Digital Access Index: The variables selected to build this indicator are from a H N number of reputable sources including ITU's quarterly survey of information and IC communication technologies around the world. However, as with any complex global A FREQUENCY OF UPDATE BY DATA PROVIDERS L dataset, complete accuracy is difficult to ensure. N O All of the data sets in this table are updated annually by the original providers, with Corruption Perceptions Index: Overall, the data are considered to be reliable. T E the exception of the Digital Access Index, Public Education Expenditures, and the Survey responses from residents in each country correlate well with responses from S : Status of FOI Legislation, which are updated intermittently. experts abroad. The data are reproducible and the index components are clear. Nonetheless, while the CPI can illustrate rough comparisons, rigid international IN S score comparisons are discouraged. While year-to-year variation in scores is T DATA RELIABILITY AND CAUTIONARY NOTES affected by changes in survey samples and methodology, findings indicate that in IT U general, trends in the data over time are reasonably accurate. Confidence intervals T Freedom Indices: Data and methodologies are subject to rigorous internal and are published in tabular format by Transparency International. IO N external reviews, the data are reproducible, the index components are clear, and S ratings are assigned by a centralized team of researchers. Thus, the data are A N considered to be reliable. Nonetheless, this index is measuring ideas and behaviors SOURCES D and not a discrete physical quantity, and, as such, rigid score comparisons and G rankings are discouraged. To ensure comparability of the ratings from year to year, Freedom Indices: Freedom House. 2007. Freedom in the World 2007: The Annual O V any changes to the methodology are introduced incrementally. Survey of Political Rights and Civil Liberties. New York: Freedom House. Online at E R http://www.freedomhouse.org/uploads/press_release/fiw07_charts.pdf. N Regulatory Barriers to Registering Property: Data are very reliable, but the A N limited definition of this indicator may restrict its applicability. For example, Urban Population Living in Slums: United Nations Human Settlements C collected data refer to only businesses in the country's most populous city. In Programme (UN-HABITAT). 2003. Slums of the World: The Face of Urban Poverty in E addition, data often focus on a specific business form--a limited liability company the New Millennium? Nairobi: UN-HABITAT. Online at http://www.unhabitat.org/ of a specified size--and may not be representative of the regulation on other publication/slumreport.pdf. businesses. The methodology also assumes that a business has full information on Regulatory Barriers to Registering Property: World Bank Group. 2007. what is required and does not waste time when completing procedures. In practice, Doing Business Custom Datasets. Washington, DC: World Bank. Online at completing a procedure may take longer if the business lacks information or is http://www.doingbusiness.org/CustomQuery. unable to follow up promptly. Government Expenditures: Development Data Group, World Bank. 2007. 2007 Public Health Expenditure: The values reported here represent the product of an World Development Indicators. Washington, DC: World Bank. Online at extensive effort by WHO, OECD, and the World Bank to produce a comprehensive http://go.worldbank.org/B53SONGPA0. data set on national health accounts. Nonetheless, few developing countries have health accounts that are methodologically consistent with national accounting Status of FOI Legislation: Banisar, D. 2004. Freedom of Information and Access procedures. Data on public spending at the sub-national level are not aggregated to Government Records Around the World. Washington, DC: Privacy International. in all countries, making total public expenditure on health care difficult to measure. Online at http://www.privacyinternational.org/issues/foia/foia-survey.html. WHO cautions that these data should only be used for an "order of magnitude" estimate and that specific cross-country comparisons should be avoided. Digital Access Index: International Telecommunications Union (ITU), 2003. World Telecommunication Development Report. Geneva: ITU. Online at http://www.itu.int/ Public Education Expenditure: In some cases data refer only to a ministry of newsarchive/press_releases/2003/30.html. education's expenditures, excluding other ministries and local authorities that spend a part of their budget on educational activities. Spending on religious schools, which Corruption Perceptions Index: Transparency International. 2006. 2006 Corruption constitutes a large portion of educational spending in some developing countries, Perceptions Index. Berlin: Transparency International. Online at http://www.transparency.org/ may be included. The World Bank cautions that these data do not measure the effec- policy_and_research/surveys_indices/cpi. tiveness or levels of attainment in a particular educational system. Military Expenditure: The entire data set has been carefully compiled with exten- sive analysis by a single provider, SIPRI, which makes these data fairly reliable. 221 Acknowledgments World Resources 2008 is the 12th volume in a series that dates We have been equally fortunate with reviewers and advisors who from 1986. It has evolved from its initial objective as the compre- have fielded innumerable requests coupled with demanding hensive assessment of environment and development trends to a schedules without complaint. In particular, we would like to book that provides serious policy analysis of the critical issues thank Bill Aalbersberg, José Roman Carerra, Darrell Deppert, arising from human dependence and impact on the environment. Elspeth Halverson, David Hughell, Erin Hughes, Brian Jones, Azharul Mazumder, Steve McCarthy, Greg Minnick, Chris Reij, The World Resources Report is the work of a unique and continuing Tony Rinaudo, Rony Rozario, Gretchen Ruethling, Claudio partnership between the United Nations Development Programme Saito, Sean Southey, Paul Steele, Bhishma Subedi, Alifereti (UNDP), the United Nations Environment Programme (UNEP), Tawake, Paul Thompson, Gaby Tobler, Henry Tschinkel, Mark The World Bank, and the World Resources Institute. Wentling, and Bob Winterbottom. For this 12th edition in the World Resources series, we would like The staff at World Resources Institute has been equally gener- to express our gratitude to the Netherlands Ministry of Foreign ous of their time and expertise in helping bring this report to Affairs, the Swedish International Development Cooperation conclusion, under somewhat difficult circumstances. To them we Agency (SIDA), the Office of International Development Assis- are so grateful: Steve Barker, Hyacinth Billings, Amy Cassara, tance of the Ministry of Foreign Affairs of Denmark (Danida), Emily Cooper, Crystal Davis, Norbert Henninger, Georgia and the United States Agency for International Development Moyka, Robin Murphy, Jesse Ribot, Jon Talbot, Dan Tunstall, (USAID). They have been constant, concerned and engaged Peter Veit, and Elsie Vélez-Whited. Lauren Withey has worn supporters of the World Resources Report and of efforts to meet more than one hat on our staff and Stephanie Hanson, likewise, the challenges of profound poverty. has taken on a number of duties. We continue to be thankful for our colleagues in Norway at We would be remiss if we did not acknowledge those who started UNEP/GRID-Arendal for their ongoing involvement in this with this volume but had to move on: Alex Acs and Ethan Arpi work, both through their direct contributions of materials, and for did early research and writing and Jen Lesar gave us organiza- their support of outreach efforts to ensure that the findings of the tion and discipline. Dena Leibman laid the early groundwork for report reach broad and appropriate audiences. this report. Though we expressed our gratitude in the previous edition of In addition to Greg Mock, our principal writer, we have been World Resources, we wish to acknowledge again the intellectual fortunate to be able to draw on a small team committed to the contribution of Jon Anderson, formerly at USAID, and his project, adaptable to the unpredictability of our schedule, and colleagues and their publication Nature, Wealth and Power, possessed of good editorial judgment: we owe much to Polly and the members of the Poverty Environment Partnership and Ghazi and Karen Holmes. their publication Linking Poverty Reduction and Environmental Management. Their thinking about poverty remains relevant This report began with modest goals and anticipated a length and important. shorter than previous volumes. Thanks to the informed and unstinting engagement of Manish Bapna, with the dedication of In particular, we want to acknowledge the contribution of Dan Tunstall, Emily Cooper, and Greg Mock, we have produced Crispino Lobo, Executive Director of the Watershed Organisation a much expanded report whose length, we hope, is justified by Trust of India, to our work. His wisdom, practical experience, and its value. documented successes in community-led watershed regeneration have inspired us and informed our theory and writing. That has made the task of our reviewers that much more demanding--more to read under an unconscionably tight time- frame. Their generosity of time and their detailed and thoughtful Individual Contributions comments and advice have greatly improved this work. We acknowledge their valuable contributions in the following section, The development of World Resources 2008 had more fits and listing each of them by chapter. starts than normal. The patience, goodwill, and understanding of our partners is appreciated well beyond what mere thanks can Despite all the good advice, careful reviews, and valuable contri- convey. Peter Gilruth of UNEP, Kirk Hamilton of the World butions of others, at the end, the WRR staff has to accept final Bank, Charles McNeill of UNDP and Marianne Fernagut of responsibility for the content of this report...and we do. GRID-Arendal have all brought a new dimension to the word partnership, and we do thank them. 222 A C K N O W L E D G E M E N T S World Resources 2008 Reviewers WRI gratefully acknowledges the following individuals for their Jesse Ribot, WRI thoughtful reviews of World Resources 2008. Sara Scherr, Ecoagriculture Partners Virginia Seitz, Millennium Challenge Corporation Sean Southey, RARE Conservation Chapter 1 Paul Steele, UNDP Bill Aalbersberg, University of the South Pacific Frank Turyatunga, UNEP/GRID-Arendal Arun Agarwal, University of Michigan Jon Anderson, Millennium Challenge Corporation Anna Balance, DFID Chapter 3 Robert Chase, World Bank Fisheries for the Future Munyaradzi Chenji, UNEP Azhural Mazumder, USAID Michael Colby, USAID Paul Thompson, Winrock International Emily Cooper, WRI Green Livelihoods Marianne Fernagut, UNEP/GRID-Arendal José Roman Carrera, Rainforest Alliance Norbert Henninger, WRI David Hughell, Rainforest Alliance Fran Irwin, Independent Consultant Gregory Minnick, Rainforest Alliance Brian Jones, Independent Consultant John Nittler, Chemonics International Crispino Lobo, Watershed Organisation Trust Claudio Saito, Chemonics International Robin Mearns, World Bank Henry Tschinkel, consultant Ruth Meinzen-Dick, IFPRI Heather McGray, WRI Turning Back the Desert Marcos Neto, CARE Christopher Burns, Peace Corps Jesse Ribot, WRI Chris Reij, Centre for International Cooperation, Vrije Universiteit Sara Scherr, Ecoagriculture Partners Tony Rinaudo, WorldVision international Virginia Seitz, Millennium Challenge Corporation Mark Wentling, USAID Sean Southey, RARE Conservation Mike McGahuey, USAID Paul Steele, UNDP Robert Winterbottom, International Resources Group Alifereti Tawake, University of the South Pacific Frank Turyatunga, UNEP/GRID-Arendal Chris Weaver, WWF Chapter 4 Robert Winterbottom, International Resources Group Arun Agarwal, University of Michigan Virginia Barriero, WRI Robert Chase, World Bank Chapter 2 Munyaradzi Chenji, UNEP Arun Agarwal, University of Michigan Florence Daviet, WRI Jon Anderson, Millenium Challenge Corporation Christina Deconcini, WRI Anna Balance, DFID Marianne Fernagut, UNEP/GRID-Arendal Ruth Campbell, ACDI/VOCA Heather McGray, WRI Robert Chase, World Bank Bruce McKenney, TNC Munyaradzi Chenji, UNEP Jonathan Pershing, WRI Michael Colby, USAID Jesse Ribot, WRI Emily Cooper, WRI Sara Scherr, Ecoagriculture Partners Elisabeth Farmer, ACDI/VOCA-Ethiopia Paul Steele, UNDP Marianne Fernagut, UNEP/GRID-Arendal Fred Stolle, WRI Norbert Henninger, WRI Peter Veit, WRI Fran Irwin, Independent Consultant Crispino Lobo, Watershed Organisation Trust Data Tables Robin Mearns, World Bank Alan Brewster, Yale University Ruth Meinzen-Dick, IFPRI Norbert Henninger, WRI Steve McCarthy, ACDI/VOCA Christian Layke, WRI Heather McGray, WRI Daniel Tunstall, WRI Marcos Neto, CARE Jaap van Woerden, UNEP/GRID-Geneva 223 References Chapter 1 Kasperson, N. 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Online at http://go.worldbank.org/U2WZTF7MC0. 243 Photo Credits (vii) Joan Grossman Rainforest Alliance; (137) Robert Goodier, Rainforest Alliance; (138) Claudio Saito, Chemonics International; (141) Brian Flores from Flickr**; (142) Chris CHAPTER 1 Reij; (144) Jeremy Barnicle/Mercy Corps; (145) Chris Reij; (147) Chris Reij; (148) (1)Chris Reij; (5) David Turnbull, WRI, 2006; (11) Joan Grossman; (16) Joan Chris Reij; (149) IFAD/J.P. Audinet: The Republic of Niger-- Aguié Rural Develop- Grossman; (17) Winrock International; (24) Dan Tunstall, WRI, 2006; (26) Joan ment Project--'Demi-lune' applied to the Silvo pastoral-development method. Grossman; (27) Winrock International; (31) Rui Ornelas**; (37) Kevin Pluck**; The 'demi-lune' can retain water up to several days after rainfall.; (149)IFAD/A. (41) Nigel Pepper**; (43) Yuko Hara**; (44) RodBland**; (45) Gemma Meschinelli: The Republic of Niger--Special Country Programme-- Improved Longman**/www.flickr.com/photos/g-hat/ tassa structure. The earth is very dry in this area and the tassa helps maintain soil moisture.; (151) IFAD/L. Rosa: The Republic of Niger--Second Maradi Rural CHAPTER 2 Development Project-- Farmers storing millet at a "cereal bank" in the district of (46) Joan Grossman; (49) Joan Grossman; (53)?; (55) Dan Tunstall, WRI, 2006 Aguié. During bad seasons, farmers can borrow from this "bank" and return the (57) Honey Care Africa; (60) The Equilibrium Fund; (63) IFAD/L. Salimei: El "loan" after the next harvest.; (152) Chris Reij; (154-155) Jeremy Barnicle/Mercy Salvador--Rehabilitation and Development Project for War-torn Areas in the Corps; (156) Jeremy Barnicle/Mercy Corps Department of Chalatenango--Local farmers meet with project staff at a workshop in Chalatenango. The project is assisting war afflicted areas in El CHAPTER 4 Salvador to redevelop its agricultural sector.; (64) IFAD/F. Zanettini: Nepal-- (158) IFAD/G. Bizzarri: The Republic of Ecuador--Upper Basin of the Cańar River Second Small Farmer Development Project Conference of the agricultural Rural Development Project-- Extension worker, Belisario Chimborazo Pallchisaca, development bank in Katmandu--The rural poor depend primarily on agricul- addresses members of the local community at project headquarters in Zhud.; ture and related activities for their livelihood.; (68) Crispino Lobo, WOTR; (69) (161) ANSAB; (166) Joan Grossman; (170) IFAD/N. McGirr: Guatemala--Zacapa- Dan Tunstall, WRI, 2006; (72-73) Dan Tunstall, WRI, 2006;(74) IFAD/H. Wagner Chiquimula Smallholders' Rural Development Project--Coffee farmer Manuel Mauritania--Agricultural Rehabilitation Programme II--A women's group in Jesus Garcia receiving a loan from Banrural manager Luis Roberto Guzman in Dieuk, gathering in the women's house to chat about their latest project dyeing Comatan. With the coffee harvested from his 0.70 ha plot, Manuel can afford to cloth.; (75) IFAD/G. Bizzarri: Ecuador--Upper Basin of the Cańar River Rural buy corn and beans for a year.; (173) Jesse Ribot, WRI; (175) AKRSP/Gul Hamaad Development Project--The Pailapata women's group receives the technical Farooqi from Flickr*; (176) Linda Shaffer, WRI, 2004; (181) IFAD/R. Chalasani: assistance necessary to grow lettuce in a greenhouse near El Tambo.; (83) Uganda--Hoima Kibaale Districts Integrated Community Development Project-- IFAD/H. Wagner: Thailand--Agricultural Diversification and People's Irrigation A member of the Busiisi SIDA women's group in Hoima receives credit. Members Project in the North--Meeting of the People's Irrigation Association in the must demonstrate that they have a working business before they can apply for a village of Huaikee Nok in Mae Phrik, Lampang Province. At the front table: chair- loan.; (182) Linda Shaffer, WRI, 2007; (187) IFAD/C. Nesbitt: Ivory Coast--Market- man of PIA, the mayor of the village and the secretary.; (84) AKRSP/Gul Hamaad ing and Local Initiatives Support Project--Catherine Traoré, accountant at the Farooqi from Flickr*; (87) IFAD/F. Mattioli: Brazil--Ceara Second Rural Develop- "Caisse Mutuelle d 'Epargne et de Crédit", a money saving co-operative receiving ment Project-- Farmer Paixao explains to a group of farmers the positive a deposit from one of its members. More than 260 artisans, small businesses and results obtained through the use of improved maize seeds. Osmar is one of the farmers belong to this co-operative.; (190) IFAD/G. Bizzarri: Lesotho--Local Initia- contact farmers selected by the project to receive technical assistance on his tives Support Project--Villagers from Tosing working at water pipes laying as part farm which will then serve as a model for other farmers.; (89) Robin Murphy, of the water supply component.; (194) Andrew Katona; (201) Jonathan Talbot, WRI; WRI, 2007; (92) IFAD/F. Mattioli: Panama--Agricultural Credit Project-- The (202) Jonathan Talbot, WRI; (218-221) Linda Shaffer, WRI. Agricultural Development Bank (BDA) provides a mobile bank service to farmers which tours the area. It consists of 3 clerks, a truck, a typewriter, 3 desks, cash REFERENCES and the records necessary to complete paper work.; (97) Joan Grossman; (100) (227) Winrock International; (229) Claudio Saito, Chemonics International; ACDI/VOCA Ethiopia; (101) ACDI/VOCA Ethiopia; (102) ACDI/VOCA Ethiopia; (232) Joan Grossman; (234) Winrock International (105) IFAD/A. Hossain: Bangladesh--Grameen Bank Project--Six borrower groups with 30 women in all, come together to discuss loan issues at the INDEX Bahaddarpara centre meeting.;(107) Linda Shaffer, WRI, 2007; (109) IFAD/G. (257)IFAD/R. Grossman: Rwanda--Rwanda-Intensified Land Use Management Bizzarri: El Salvador--Smallholders' Agricultural Development Project in the Project--Technicians from regional communities receive training and support Paracentral Region Farmers receive credit at the Banco de Fomento services in micro-credit and financing in Ruhengeri, northern Rwanda. The Agropecuario in Sensuntepeque city. training is organised at the Ministry of Agriculture and sponsored by IFAD; (262) IFAD/H. Wagner: Mauritania--Agricultural Rehabilitation Programme II-- CHAPTER 3 Members of the women's co-operative 'Arafat' in Gučrou, planting 'Prosopis (110) National Geographic; (112) Winrock International; (115) Winrock Interna- filensis' for reforestation after the moving dune has been stabilized and fixed by tional; (116) Winrock International; (117) Winrock International; (118) Winrock windbreaks made of dead plant material. International; (119) Winrock International; (120) Winrock International; (122) Winrock International; (123) Winrock International; (125) Winrock International; * From Flickr.com, licensed under creative commons attribution-noncommercial license http://creativecommons.org/licenses/by-nc/2.0/deed.en (126) Claudio Saito, Chemonics International; (131) Robert Goodier, Rainforest ** From Flickr.com, licensed under creative commons attribution license Alliance; (132) Claudio Saito, Chemonics International; (136) Robert Goodier, http://creativecommons.org/licenses/by/3.0/ 244 Index Italic page numbers refer to figures, tables, and boxes. local crop processing, 96 marketing activities, 11, 16, 28, 171, 198­199 in Namibia, 30­36 A in Niger. See Niger's re-greening movement Aalbersberg, Bill, 41 organic farming, 104, 106 Access, 10 product standards and market research, 103­104 to financial services, 6, 17, 179­185 resilience and, 28, 36, 192 to natural resource information, 198, 200 smallholders, 5, 28, 47, 89, 107, 168 need for, 16­17, 190 social capital investment and, 25 Accountability. See also Transparency sustainable. See Sustainable agriculture demand for, 32, 167 in watersheds, 13, 19, 201 downward accountability, 26 in Zambia, 103 lack of, 76 Agroforestry, 17, 28, 47, 82, 105, 164, 165 of legislatures, 175­176 Aguié District Rural Development project (Niger), 152 of line agencies, 177, 199 AIDER. See Asociación para la Investigación y third-party evaluations for, 196 Desarrollo Integral (Peru) ACOFOP. See Asociación de Comunidades Forestales del Petén AIDS. See HIV/AIDS (Guatemala) AIG Uganda, 184 Action plans, preparation of, 66 AKRSP. See Aga Khan Rural Support Programme (Pakistan) Adaptability, 28­29. See also Resilience Alimentos Nutri-Naturales (Guatemala), 56­57, 59, 60 Adjusted Net Savings, 205 Alter Eco, 93 AdobeTerra, 181 AmazonLife (Brazil), 59 Advocacy, 72, 176 American International Group, 180 Africa. See also individual countries and regions ANAI Association (Costa Rica), 82, 89, 90, 106 Equator Prize finalists from, 58­59 ANAP. See National Association of Small Farmers (Cuba) honey bees in. See Beekeeping Andavadoaka Fisherman's Cooperative (Madagascar), 18 insurance industry in, 184 ANSAB. See Asian Network for Sustainable Agriculture and legislatures in, 175 Bioresources (Nepal) political reform in, 176 Apkindo (Indonesia plywood trade association), 169 poverty reduction in, 20 APRAINORES (El Salvador), 96 secure tenure systems in, 53 Arbol Verde (Mexico and Caribbean), 129, 130, 135 small-scale producers in, 168 Asia. See also individual countries and regions technological assistance in, 174 Equator Prize finalists from, 58 titled property rights in, 51 insurance industry in, 184 Aga Khan Rural Support Programme (AKRSP, Pakistan), 27, secure tenure systems in, 53 84­85, 86, 89, 90 Asian Development Bank, 107 Agriculture. See also specific crops (e.g., coffee) Asian Network for Sustainable Agriculture and Bioresources in Bangladesh, 113, 123 (ANSAB, Nepal), 81, 85, 90, 99, 107 in Burkina Faso, 107 Asociación de Comunidades Forestales del Petén (ACOFOP, CBNRM and. See Community-based natural resource Guatemala), 90, 129, 139 management Asociación para la Investigación y Desarrollo Integral climate change and, 12, 192, 193 (AIDER, Peru), 90 definition of agricultural land, 212 Association of Palqui Producers (APROPALQUI, Bolivia), 104 enterprise and, 14 Associations. See Networks and associations farmers' unions and cooperatives, 31, 33, 73, 97, 100­102, Awards and prizes, role of, 55, 162, 195. See also Equator Prize 107, 108. See also specific organizations by name Ax, Floridalma, 135 food consumption and, 204, 210­213 forestry management and, 35, 127, 134, 138, 139, 164 horizontal evaluations and, 87 B as income source crucial to the poor, 9 Bangladesh ISOs and, 81, 90­92. See also Intermediary support climate change and, 192 organizations community investment requirement in, 62 learning networks and, 105­106 infrastructure investment in, 178, 179 245 W O R L D R E S O U R C E S 2 0 0 8 inland fisheries, 112­125. See also Bangladesh inland fisheries BRAC. See Bangladesh Rural Advancement Committee insurance industry in, 184 Brazil Bangladesh Center for Advanced Studies, 113, 121, 123 banking agents in, 181 Bangladesh Coastal and Wetland Biodiversity Management community investment requirement in, 61 Project, 121 Equator Prize finalist from, 59 Bangladesh inland fisheries, 12­13, 24, 112­125 producer association in, 103­104, 107 background, 113­114 Bridges, portable, 179 benefits of, 118, 118­119, 119 Bureaucracy. See Government challenges for, 123 Burkina Faso community involvement in management, 116, 116­118, 162, 166 associations in, 97, 107 Federations of Resource User Groups (FRUGs), 116 conservation and regeneration projects in, 156 government role in, 167 Inland Capture Fisheries Strategy, 112­113, 121, 124­125 institutional framework for management of, 115­116 C lessons from, 122­123, 124, 125 Cacao production, 60 Local Government Committees or Upazila Fisheries Calico Printers Cooperative Society (India), 105 Committees, 115­116, 118, 163, 166 Cameroon Management of Aquatic Ecosystems through Community Forestry Law, 170 Husbandry (MACH), 112, 113, 114, 114­116, 115, 120, legislators and rural advocacy in, 176 121, 123­124, 124, 160 medicinals market in, 98­99 map of, 113 CANACACAO (National Cacao Chamber, Costa Rica), 60 migratory waterfowl and, 120, 122 Canadian International Development Agency, 145 new livelihoods and, 118­119, 122 Capacity, 6, 71­94. See also Resilience ownership and equity, promotion of, 62, 117­118, 163 accountability, lack of, 76 Participatory Action Plans, 114 agricultural training, 100 quantitative scale-up of, 123­124 CBNRM role. See Community-based natural reports to promote as scaling up example, 162 resource management Resource Management Organizations (RMOs) in, 24­25, 113, community-driven development and, 27 114, 115, 116­118, 123, 163, 166, 167 in conservancies, 33 resource rights and program success, 160, 161 devolution of resource authority and, 162­163 Resource User Groups (RUGs), 116, 123 ecosystem management and, 190 sustainability of, 123­125 element of scaling up, 5, 6, 7, 15, 27, 195­196 tree planting and, 122, 123 Fiji LMMA Network, development of, 41­42 women's role and, 119­120 inclusiveness, lack of, 76­77 Bangladesh Rural Advancement Committee (BRAC), 91, 181, 182 intermediary support organizations, role of, 77­93. Baren Commercial, 140 See also Intermediary support organizations Beekeeping, 57, 60, 174 in line agencies, 177 Honey Care Africa, Ltd. (Kenya), 56, 57, 58, 60 local organizations, role of, 72, 74­75. See also Local institutions North Western Bee Products, Ltd. (Zambia), 18 need for capacity development, 25, 26, 77, 196, 197 Begum, Sofia, 120 staff exchanges with government, 86 Benin Borgou Pilot Project, 26, 27 technical. See Technical assistance BOCOBONET. See Botswana Community-Based upward capacity building, 83, 86 Organization Network Watershed Organisation Trust (WOTR, India), 78­79 The Body Shop, 93 Women on the Move (women's savings groups in Niger), 74 Bolivia Carbon credits, 140 associations in, 104 Carbon emissions. See Climate change bureaucratic regulation as obstacle to community forest Carchi Consortium (Ecuador), 88­89, 105­106 management, 170 CARE International, 74, 131, 145, 148, 154, 155 microfinance in, 182 Caritas (Bangladesh NGO), 113, 116, 117, 121, 166 Botswana, vertical networking in, 89 Carrera, José Roman, 138­139, 140 Botswana Community-Based Organization Network Cartels, formation of, 169 (BOCOBONET), 89, 92 Case studies illustrating resilience, 111­157 Bottom-up approaches, 26. Bangladesh inland fisheries, 112­125. See also Community-driven development (CDD) See also Bangladesh inland fisheries 246 I N D E X cross-cutting lessons from, 160­167 China Guatemala forestry enterprises, 126­141. inland fisheries in, 13 See also Guatemala forestry enterprises poverty as rural phenomenon in, 22 Niger's re-greening movement, 142­157. poverty reduction in, 20, 23 See also Niger's re-greening movement Church membership, 72, 73 Cashew industry, 96 Cinnamon trade in Vietnam, 171 CBNRM. See Community-based natural resource management Citigroup, 180 Center for Empowerment and Resource Development Civil liberties, 221 (CERD, Philippines), 59 Claveria Landcare Association (CLCA, Philippines), 91 Center for Natural Resource Studies (CNRS, Bangladesh), Clean water 113, 117, 121, 166 local demand and projects for, 54 Central America. See Latin America Senegal's National Rural Infrastructures Program, 26 Central American Sea Turtle Conservation Network, 60 use of improved water source, 212 Centro Agrónomico Tropical de Investigación y Eseńanza, 131 Climate change Centro Mayo, 131 Niger's re-greening movement and, 157, 193­194 CERD (Center for Empowerment and Resource Development, Reducing Emissions from Deforestation in Developing Philippines), 59 Countries (REDD), 164­165 Certification of products as Fair Trade. See Fair Trade resilience and, 28, 157 CFM (Community forestry management), 51 rural poor and, 190, 192­194 Changing the development paradigm, 26­27 Club du Sahel, 156 Charcoal trade in Senegal, 169, 172­173 CNRS. See Center for Natural Resource Studies (Bangladesh) Chaubas Wood Processing Enterprise (Nepal), 96 Co-financing arrangements, 61 Chemonics International, 132­133, 135, 138 Co-management arrangements, 191 Child mortality, 21 Coffee producers. See also Fair Trade 247 W O R L D R E S O U R C E S 2 0 0 8 cooperatives, 28, 100­102 element of scaling up, 5, 6, 7, 15­16 in Ethiopia, 100­102, 171 financial support from, 105 Finca Esperanza Verde (FEV, Nicaragua), 19 government involvement in, 108 in Latin America, 97 informal sectors and, 107­108 in Rwanda, 28 learning networks, 105­106, 197 Collective action, 62, 63. market influence and, 97, 103 See also Connection; Networks and associations membership organizations, 107 Colombia power of association, 95­107, 109 Equator Prize finalist from, 59 product standards and market research, 103­105 medicinals market in, 59, 104 resilience and resourcefulness and, 200 COMACO. See Community Markets for Conservation (Zambia) Conservancies. See Namibia's Communal Conservancy Program Commercial banks and microfinance, 180, 199 Conservation and Management Organization (Guatemala), 135 Common-pool resources, 5, 9, 10, 26, 51, 62, 65, 160 Conservation International, 131 Communal property rights, 51 Consorcio Local para el Desarrollo de la Cuenca del Rio Communication and media, 17, 177­179, 196 Tascalapa (Honduras), 105 Community-based enterprises, 56 Cooperatives, 18, 28, 97, 100­102, 107, 108 successful ecosystem-based enterprises, list of, 58­59 national laws on, 197 Community-based natural resource management (CBNRM), Coordination Framework for Rural Producer Organization 5, 6, 8, 9, 10, 12 (Burkina Faso), 107 authority and access for the poor in, 16, 17, 162­163 CORDES (El Salvador), 96 demand as reason to create, 14 Corruption. See also Governance; Transparency effect on poverty levels, 23, 111 Corruption Perceptions Index (CPI), 221 government collaboration and, 86 Guatemala forestry enterprises and, 138 linkages and networks and, 86 of legislatures, 175 local organizations and, 71 Cost-sharing, 6, 65, 179 market access and, 89 Costa Rica ownership and, 49 ANAI Association in, 89, 90, 106 participatory decision-making and, 67, 160 Talamanca Initiative in, 60 private sector and, 93 Costa Rican Organic Agricultural Movement (MAOCO), 106 relation to ecosystem-based enterprises, 14 Costa Rican Sea Turtle Conservation Network, 60 vertical networking and, 89 Costs Community-driven development (CDD), 16, 26­27 participatory decision-making and, 67 building resilience, 28 of REDD programs, 165 infrastructure development and, 178­179 of remittances, 185, 185 Community Forest User Groups (Nepal), 28, 64, 72, 81, 85, 96, Crasborn, Carlos, 135 105, 106­107 Credit associations, 72­73 Community forestry enterprises, 13 Cuba, learning networks in, 105 Community forestry management (CFM), 51 Customary tenure systems. See Ownership Community Markets for Conservation (COMACO, Zambia), 92, 103 Community Organizations Development Institute D (CODI, Thailand), 91 Damaraland (Namibia), 36 Compartamos (Mexico), 180 Daugherty, P.J., 50 Competition, fostering of, 169, 197­199 Deans' Beans, 92, 93 Comunidád de Agua Blanca (Ecuador), 19 Deccan Development Society (India), 53 CONAP. See National Council of Protected Areas (Guatemala) Decentralization, 26, 49­50, 162­163, 191 Concession model, 127, 128, 129­130, 130, 135 Decision-making. See Participatory decision-making Congo, Equator Prize finalist from, 58 Deforestation Connection, 95­109. See also Networks and associations in Bangladesh, 123 CBNRM and. See Community-based natural resource Reducing Emissions from Deforestation in Developing management Countries (REDD), 164­165 challenges of association, 107­108 Delta Life (Bangladesh), 184 ecosystem management and, 190 248 I N D E X Demand Ecuador conservancies as demand-driven institutions, 31 Comunidád de Agua Blanca, 19 defined, 14 Dean's Beans in, 93 Fiji LMMA Network and, 39 land registration in, 53 local demand and commitment, 54­55, 61, 67 learning network in, 105 scaling up and, 6 vertical networking in, 88­89 Democratic Republic of the Congo. See Congo Education expenditure, 221 Demonstration phase, 55, 161­162, 185, 191 El Salvador Deppert, Darrell, 116 leveraging remittances for rural investment in, 184, 185 Desert Community Initiative (Niger), 152 local production and processing in, 96 Deutsche Bank, 180 Elders councils, 24 Development paradigm, changing of, 26­27 Elections and political rights, 221 Dhikuri (Nepal), 72­73 Elite capture, 24, 27, 53, 169 Direct marketing by small-scale enterprises, 198­199 Empowerment, 6, 10, 26 Diseases, effect of, 185. See also HIV/AIDS Enabling environment, 4, 5, 17, 126, 168, 197­200 Dispute resolution. See Land disputes, resolution of for scaling up enterprise, 6, 7, 16, 17, 24, 160, 168 Diversification of funding sources, 196 EnerSud Ind e Soluçőes Energéticas (Brazil), 181 Donor commitment, 167, 195, 200. See also Government; Enforcement efforts at community level, 7, 40­41, 45, 195 Nongovernmental organizations (NGOs) Enterprises, 4 Downward accountability, 26 best practices for, 56­60 Drinking water. See Clean water; Water issues building rural communities and, 4 commercial aspects of, 14, 117 defined, 14, 47 E ecosystem or ecosystem-based enterprises, 3­45 E-Cafe Gold Cooperative Coffee Competition (Ethiopia), 102 environmental income realized from, 10 East Asia. See also individual countries Equator Prize finalists, list of (by region), 58­59 climate change and, 192 examples of successful enterprises, 18­19 poverty in, 22 Fiji LMMA Network, development of, 41­42, 45 East Coast Fisher People Forum (India), 87 governance and, 16­17, 169­171 EcoHamaca (Nicaragua), 97, 103 integration of enterprise support initiatives, 199 Ecological resilience, 27­28 nature-based enterprises, 3, 16, 17, 24­25, 49, 61, 67, 71, Economic capital 81, 89, 90, 94, 162­163, 174, 186 in Bangladesh, 114 preconditions for success of, 56 in Guatemala, 128 relation to CBNRM, 14 in Niger, 143 scaling up, 6, 10 Economic resilience, 28 success stories of, value of, 7, 161­162 Namibia's conservancy program and, 36 successful ecosystem-based enterprises, list of, 58­59 Economics and trade, 204­205, 214­217 Environmental capital Ecosystem or ecosystem-based enterprises. See Enterprises in Bangladesh, 114 Ecosystem resilience, 192, 201 in Guatemala, 128 Ecosystems in Niger, 143 access to resources of, 10 Environmental income decline in, 8, 8, 9 benefits of, 3­4, 9 goods and services, 9, 181, 208, 212, 216 forms of, 10 as renewable source of income for the poor, 25 importance of, 9 Ecotourism scaling up, 10 ANAI Association (Costa Rica), 82, 90 smallholder agriculture and, 5 Arbol Verde (Mexico and Caribbean), 130, 135 Equator Initiative (case study), 56­60, 86, 162 Comunidád de Agua Blanca (Ecuador), 19 Equator Prize, 55, 56­60, 88, 97, 162, 195 Finca Esperanza Verde (FEV, Nicaragua), 19 Equity in Madagascar, 57 in Bangladesh inland fisheries program, 117­118 Ngata Toro Community (Indonesia), 58 favoring large-scale producers over rural small-scale in Zambia, 103 producers, 168, 198 249 W O R L D R E S O U R C E S 2 0 0 8 in tax regimes and regulation, 6, 7, 17, 169­171 Finca Esperanza Verde (FEV, Nicaragua), 19 in tenure rights. See Land and resource tenure FIRMED (Fishery Integrated Management for Economic Ethiopia Development, Philippines), 59 coffee producers in, 100­102, 171 Fisheries Department (Bangladesh), 121, 123 Dean's Beans in, 93 Fishing government and associations in, 108 Andavadoaka Fisherman's Cooperative (Madagascar), 18 local institutions in, 72 in Bangladesh's wetlands. See Bangladesh inland fisheries medicinals market in, 99 Center for Empowerment and Resource Development Executive branch influence, 175, 200 (CERD, Philippines), 59 Exports of goods and services, 216 in China, 13 in Fiji. See Fiji Locally Managed Marine Area (FLMMA) fisheries production, defined, 212 F in Mozambique, 62 Fair Trade FLMMA. See Fiji Locally Managed Marine Area certification, 101, 105, 174, 174 FMNR. See Farmer-Managed Natural Regeneration coffee and cocoa, 92, 93, 97 Food Farmer Field Schools, 14, 104 Niger's re-greening movement and food security, 142, 143, Farmer-Managed Natural Regeneration (FMNR), 143, 146­148, 151­152, 155 150­157. See also Niger's re-greening movement security, 57, 103, 204, 210­213 Farmer-to-Farmer Movement (Cuba), 105 undernourished, definition of, 212 Farming. See Agriculture Foreign direct investment (FDI), 216 Federation of Community Forest Users Nepal (FECOFUN), FORESCOM (Guatemala), 90, 127, 128, 133, 134, 136, 106­107 139­140. See also Guatemala forestry enterprises Ferro Cooperative (Ethiopia), 101 Forest Department (Senegal), 172­173 Fertilizer, 212 Forest Stewardship Council, 81, 134 Fiji Locally Managed Marine Area (FLMMA), 38­45 Forests background, 38­39 in Bangladesh, 112 benefits of, 42­44 in Brazil, 59 capacity, development of, 41­42 bureaucratic regulation as obstacle to local communities, 170 challenges to, 44­45 in Cameroon, 170 compliance and enforcement, 40­41, 45 community forestry enterprises, 13, 165 enterprise development, 41­42, 45 community forestry management, 50, 51 as ISO, 91 in Congo, 58 local ownership, creation of, 39­40 decline in area of, 8 networks and, 42 in El Salvador, 96 participatory decision-making in, 39­40 in The Gambia, 174 representation issues for, 44­45 in Guatemala, 29, 56­57, 59, 60 resource tenure and program success, 160, 161 in Honduras, 16­17 sustainability of, 44 in Indonesia, 58 Financial services. See also Microfinance; Remittances in Namibia, 35 access to, 6, 17, 179­185 ownership, 50, 51, 53­54, 54 in India, 105 secure tenure and, 50, 51 rotating credit associations, 72­73 in Senegal, 170, 172­173 Financial support and commitment, 6. See also Microfinance; small forestry enterprises (SFEs), 168, 168 Nongovernmental organizations (NGOs); Remittances; in Thailand, 18 Seed money in Uganda, 164­165 availability of, 6, 7 Fourth Fisheries Project (Bangladesh), 123 cost-sharing, 6, 65, 179 Fragile states, 20 government as partner and source of funds, 80, 108, 167, France, 154 174, 183, 185, 200 Free, prior, and informed consent (FPIC), 183 ISOs as distribution nodes, 89, 92, 126, 195, 196 Free association, right to, 197 labor contribution, 6, 15, 61­62, 79 Freedom of Information legislation, 176, 199, 200, 221 local organizations securing, 73, 75, 77 Functional scaling up, 11 official development assistance (ODA), 216 250 I N D E X G The Gambia community forest enterprises in, 174 conservation and regeneration projects in, 156 Garcia, Benedin, 134 Genetic Resource, Energy, Ecology and Nutrition (GREEN) Foundation (India), 58 Germany Guatemala and, 127 Niger and, 148, 154 Ghana community investment requirement in, 61 Community Water and Sanitation Project (World Bank), 61 land ownership in, 52 land registration in, 53 Global Environment Facility, 121 Gokulpura-Goverdhanpura Integrated Watershed Management (India), 19 Governance. See also Government; Local government; Representation issues in conservancies, 33, 163 as enabling environment for scaling up, 5, 7, 9, 17 enterprise and, 16­17 measurement of, 205, 218­221 need to improve on national level, 174 poor governance of Guatemala forestry enterprises, 138 poverty-environment-governance approach, 9 Government. See also Decentralization; Governance; Local government bureaucratic regulation as obstacle to community management, 17, 170, 172­173, 177, 197, 199, 221 development role of, 168­185, 196. See also Marketing; Research assistance; Technical assistance as enabling environment for scaling up, 24 expenditures as percent of GDP, 221 fairness in regulation and, 169­171. See also Equity favoring large-scale producers over rural small-scale producers, 168, 198 involvement in associations, 108 line agencies' approach to rural communities, 7, 177, 195, 199 microfinance role of, 182 GTZ (German Agency for Technical Cooperation), 145, 153, 154 "minimum standards" approach to, 170, 198 Guatemala. See also Guatemala forestry enterprises national governments and extraction of natural resources, Equator Prize finalist from, 56­57, 59, 60 183, 198 ISO in, 90 as partner and source of funds, 17, 167, 171, 174, 200. National Council of Protected Areas, 201 See also Financial support and commitment reports to promote as scaling up example, 162 Gram Mooligai Co. Ltd. (India), 99 Guatemala forestry enterprises, 29, 126­141 Grameen Bank, 179 authority over resources, 162, 163 GREEN (Genetic Resource, Energy, Ecology and Nutrition) bureaucratic regulation as obstacle to community Foundation (India), 58 management, 170 Grootberg Farmers' Union, 31 carbon credits, 140 Gross domestic product (GDP), 216 challenges for, 132­133, 163 Group heterogeneity, effect of, 65 community dividends and, 134­135 251 W O R L D R E S O U R C E S 2 0 0 8 concession model and, 129­130, 130, 135 India conservation dividend and, 133­134, 134 accountability of local government in, 93 creation of, 127 associations in, 105, 107 failure of local NGOs to work with communities, 167 bureaucratic regulation as obstacle to community forest future planning for, 137­139, 140 management, 170 initial efforts of, 127­128 cooperatives in, 97, 108 intermediaries, skill building with, 131­133 Equator Prize finalist from, 58 key achievements of, 128 forest tenure program in, 53 lessons from, 139 Gokulpura-Goverdhanpura Integrated Watershed Maya Biosphere Reserve, 126, 127, 129, 130, 131, 134, 137, Management, 19 139, 163, 164, 201 gram sabha (village assembly) and forest association in, 73 non-timber forest products and, 126, 133, 136­137 infrastructure investment in, 178 organizational scaling up, 139­140 insurance industry in, 183 participatory decision-making and, 163 land leasing arrangements in, 53 paternalism trap and, 133 local institutions in, 72 political scaling up, 140 medicinals market in, 99 processing and wood products and, 136 microfinance in, 180 quality life, improving, 135 networking in, 87 resentment of local government toward, 163 NGOs, role in, 73 resource tenure and program success, 160 research assistance in, 171 scaling up, 139­141 resilience and, 200 tax collection and distribution and, 163 Self-Employed Women's Organization (SEWA), 88, 89 women and, 133 small forestry enterprises in, 168 Guinea, conservation and regeneration projects in, 156­157 Tank User Groups in, 24 Guinea-Bissau, fishery access agreements in, 183 telecommunications in, 177 Gujarat Cooperative Milk Marketing Federation (India), 108 watershed management practices in, 13, 55, 61, 82, 85, 167 Gum trees, research on, 171 Watershed Organisation Trust. See Watershed Organisation Trust (WOTR, India) Haiti, watershed management in, 62 Indigenous peoples in Honduras, 16­17 Hassan, Bob, 169 Indo-German Watershed Development Program, 78 Health services Indonesia public health expenditure, 221 Equator Prize finalist from, 58 in Senegal, 26 forest tenure program in, 53­54 HIV/AIDS, 33, 102, 185, 208, 209 locally managed marine area (LMMA) in, 38, 39, 41 Honduras palm oil business in, 168, 171, 174 associations in, 105 plywood export market in, 169 concession model in, 127, 141 state assistance programs, effectiveness of, 174 resources management and the poor in, 16­17 Infant mortality rate, 208, 209 Honey Care Africa, Ltd. (Kenya), 56, 57, 58, 60 Informal sectors and connection, 107­108 Horizontal networking, 7, 15, 57, 86­88 Information, access to, 55, 198, 200 Human rights, 221 Infrastructure community-driven infrastructure, 178­179 financing from natural resource revenues, 183 I improvement of physical infrastructure, 177­179 IFAD. See International Fund for Agricultural Development Senegal's National Rural Infrastructures Program, 26 Illiassou, Fatima, 153 Institutional choice, 24, 163 ILO. See International Labour Organization Institutional scaling up, 11 Inclusiveness Insurance industry, 182­184 capacity and lack of, 76­77 Intangible capital, 25, 25 large-scale resource extraction and, 183 Integrated Rural Development and Nature Conservation participatory decision-making and, 65­66 (Namibia), 33 Income. See Environmental income Integration of enterprise support initiatives, 199 Income equality, 23 Interagency coordination, 7, 73, 166. See also Intermediary support organizations (ISOs) 252 I N D E X InterAmerican Development Bank, 140 K Intergovernmental Panel on Climate Change (IPCC), 194 Kalinga Mission for Indigenous Communities and Intermediary support organizations (ISOs), 6, 7, 80­93, 94 Youth development (Philippines), 81 ability to facilitate partnerships with government Karaya gum, 171 and NGOs, 86­89 Kenya access to markets, 89 Honey Care Africa, Ltd., 56, 57, 58, 60 equity and transparency, 80, 92­93 networks in, 104 financial sources, 89, 92 poverty gap in, 23 focus and credibility of, 166­167 Khoadi Hoas Conservancy (Namibia), 31, 32, 33, 36 horizontal networking, 7, 15, 57, 86­88 Kim, Y., 50 list of (by region), 90­92 Klongnarai Women's Group (Thailand), 104 private sector, 93 Kolloma Baba Women's Association (Niger), 153 role of, 15, 77­80, 174, 190, 195­196, 200 social capacity building, 81­83 staff exchanges and partnerships and, 86 L success stories of, value of, 161­162 Labor activity, defined, 212 technical capacity building, 80­81 Labor contribution, 6, 15, 61­62, 79 training and dialogue and, 85­86 Lagos State Fish Farmers' Association (Nigeria), 104 "upward" capacity building and, 83, 84­85, 85­86 Land and resource tenure, 6, 13, 50­54, 51, 67, 191. vertical networking, 15, 88­89 See also Ownership Watershed Organisation Trust. See Watershed Organisation in Bangladesh, 115, 123 Trust (WOTR, India) useful even when not perfect, 160­161, 200 International Co-operative Alliance, 108, 197 Land disputes, resolution of, 7, 53, 191 International Development Research Centre, 56 Land leasing arrangements, 53, 191 International Fund for Agricultural Development (IFAD), 145, Landless, rights of, 53 148, 149, 152, 154, 155, 184 Lao People's Democratic Republic, 104 International Institute for Environment and Development, 52 Latin America. See also individual countries International Labour Organization (ILO), 108, 197 cooperatives in, 97 International Potato Center, 87 Equator Prize finalists from, 56­57, 59, 60 Investments. See also Infrastructure insurance industry in, 184 community investment, 7, 49, 117, 187. networking in, 87 See also Cost-sharing; Labor contribution poverty in, 22 microfinance and, 182 secure tenure systems in, 53 property rights and, 50 small forest enterprises in, 168 IPCC (Intergovernmental Panel on Climate Change), 194 sustainable forest management and, 141 Iqoliqoli Management Support Teams (QMSTs, Fiji), 42 Leadership Iqoliqolis (controlling groups of Fiji fishing grounds), 38, 40, 43, 45 Equator Initiative and, 57, 60 Islam, Toyobul, 120 local demand and commitment and, 55 ISOs. See Intermediary support organizations training for, 195 Italian Cooperation, 145 Learning networks, 105­106, 197 Leasing arrangements for land, 53, 191 Legislatures. See Governance J Life expectancy, 208 Jethua Resource Management Organization (Bangladesh), 117 Line agencies. See Government Jiwa, Farouk, 57 Literacy Joint action. See Networks and associations adult literacy rate, 208, 209 Joint ecosystem management. See Community-based natural in Bangladesh, 116, 123, 124 resource management (CBNRM) in Benin, 26 JuWa Farmers Union, 31 Women on the Move (women's savings groups in Niger) and, 74 Livelihood security, 6 Living in Finite Environment (LIFE) program (Namibia), 37 Lobo, Crispino, 68, 68­70, 201 Local commitment, 7, 15, 61­62 253 W O R L D R E S O U R C E S 2 0 0 8 Local government, 6, 11, 72 challenges and limitations of, 73, 76­77, 163 accountability and, 93 definition of, 71­72, 72 in Bangladesh, 124 example of, 74­75 importance of, 24­25 inclusiveness, lack of, 76­77 reconciling with role of resource management organizations, 163 maturation period for, 163 resource management organizations working with, 163 resources and connections, lack of, 75 Local institutions, 24, 53, 71­77, 72, 94. strengths of, 72­73 See also Local government Locally managed marine areas (LMMAs) accountability, lack of, 76 in Fiji, 38­45. See also Fiji Locally Managed Marine Area assessment of, 77 (FLMMA) capacity development, need for, 75, 77, 162­163 in other Asia-Pacific countries, 38, 39 M MA. See Millennium Ecosystem Assessment MACH (Management of Aquatic Ecosystems through Community Husbandry). See Bangladesh inland fisheries Macro level challenges, 168 Madagascar Andavadoaka Fisherman's Cooperative, 18 Equator Prize in, 57 Majjia Valley Project (Niger), 145, 146 Malaria, 185 Malaysia, palm oil business in, 168 Mali, conservation and regeneration projects in, 156­157 Management of Aquatic Ecosystems through Community Husbandry (MACH). See Bangladesh inland fisheries MAOCO. See Costa Rican Organic Agricultural Movement Maradi Integrated Development project (MIDP, Niger), 146­147, 154, 155 Market analysis and development (MA&D), 174, 199 Marketing of agricultural products, 11, 16, 28, 171, 198­199 assistance, 7, 171, 174 association benefits, 109 capacity and, 72, 76 cooperatives and, 100­101, 102, 103 credit and finance for, 105 ecosystem-based enterprises and, 104 entrepreneurship and, 56­57 federation and, 108 of forest products, 28, 132, 136, 137, 139, 157 intermediaries and, 131 ISOs and, 81, 82, 89, 93 of natural resources and, 177 political aspects of, 106 research and, 171 rural enterprises and, 95, 97, 160 scalability and, 60 scaling up and, 5, 6, 7, 10­11 support and, 181, 199 women and, 133, 135 Mauritania, fishery access agreements in, 183 254 I N D E X Maya Biosphere Carbon Project (Guatemala), 140 N Mayuni Conservancy (Namibia), 35­36 NACSO. See Namibian Association of CBNRM Support Mazumder, Azharul, 125 Organizations McGahuey, Mike, 150, 154 Nam Ha Ecoguide Service (Lao PDR), 104 MDGs. See Millennium Development Goals Namibia Media and communication Communal Conservancy Program. See Namibia's Communal in monitoring government accountability, 177 Conservancy Program pilot programs' success stories via, 7, 162, 191, 196 community forests in, 35 press freedom, 221 customary land systems in, 53 Medicinals market, 59, 85, 98­99, 104, 181 Namibian Association of CBNRM Support Organizations Melons, 103­104 (NACSO), 32, 33­34, 34, 37, 86, 91, 96, 166 Mengame Gorilla Reserve (Cameroon), 176 Namibian Community-Based Tourism Association MET. See Ministry of Environment and Tourism (Namibia) (NACOBTA), 33, 34 Mexico Namibia's Communal Conservancy Program, 5, 30­37 remittances and, 184, 185 background, 30 wood exported to, 135 benefits of, 35­36 Micro-Enterprise Development Programme (MEDEP, Nepal), capacity development in, 33, 75, 162 182 challenges to, 37, 163 Microcredit Summit Campaign, 179 demand-driven nature of, 31 Microfinance governance of, 33, 163 in Bangladesh, 124 growth of conservancies (1998-2005), 34 government role in, 182, 199 income sources, 35 maturing of, 179­181 local decision-making in, 31, 162 meeting needs of larger businesses, 182 local ownership, creation of, 31­32 NGOs' role in, 181­182 Ministry of Environment and Tourism role. Microfinance Information Exchange (MIX) Market, 180 See Ministry of Environment and Tourism (MET, Namibia) Microinsurance, 182­184 networks and, 33­34 MIDP. See Maradi Integrated Development project (Niger) participation of residents in, 31­32 Military expenditure, 221 partnerships in, 86 Millennium Challenge Corporation, 37 reports to promote as scaling up example, 162 Millennium Development Goals (MDGs), 9, 204 resilience of ecosystems and rural communities due to, 36, 200 child mortality, 21 resource rights and program success, 160 Equator Initiative and, 56, 60 National Adaptation Programmes for Action (NAPAs), 157 poverty reduction, 20, 21, 23 National Advocacy Council for Development of Indigenous Millennium Ecosystem Assessment (MA), 8, 12, 190, 192 People (India), 87 Ministry of Environment and Tourism (MET, Namibia), 33, 37, National Association of Small Farmers (ANAP, Cuba), 105 86, 166, 167 National Cacao Chamber (CANACACAO, Costa Rica), 60 Ministry of Land (Bangladesh), 113, 114, 115, 120, 121 National Council of Protected Areas (CONAP, Guatemala), Minnick, Greg, 140 127­130, 132­134, 137, 139­140. See also Guatemala MIX (Microfinance Information Exchange) Market, 180 forestry enterprises MMD (Mata Masu Dubara, Women on the Move), 74 National Dairy Development Board (India), 108 Monopolies created by state over nature-based products, 171 National Forest Institute (Guatemala), 140 "Mother NGOs." See Intermediary support organizations Natural resources management. See Community-based natural Mozambique resource management (CBNRM) community groups in, 73 Nature-based enterprises. See Enterprises customary land systems in, 53 Nature Conservancy, 131 fishing co-arrangement in, 62 Nature Conservation Act (Namibia), 34 Mutual Credit Guarantee Scheme (India), 105 Nature Conservation Act (Niger), 55 Nature for Life, 131 Nepal Asian Network for Sustainable Agriculture and Bioresources (ANSAB), 81, 85, 90, 99, 107 bureaucratic regulation as obstacle to community forest management, 170 255 W O R L D R E S O U R C E S 2 0 0 8 Community Forest User Groups, 28, 64, 72, 81, 85, 96, 105, benefits of, 149­150 106­107 climate change and, 157, 193­194 irrigation policy in, 107 crop income from, 150­151 medicinals market in, 99 famine, protection against, 151­152 Micro-Enterprise Development Programme (MEDEP), 182 farmers' involvement in, 148, 148 rotating credit associations in, 72­73 food production and, 155­156 Nepal Non-Timber Forest Products Network, 81 food security and, 142, 143, 151­152, 155 Netherlands, 136 fuelwood and fodder income from, 150 Dutch nonprofit and Uganda reforestation project, 164 government, role of, 154 Networks and associations, 95­109. See also Cooperatives income from, 150, 150­151 benefits of, 197 intermediaries, role of, 143, 154­155 challenges of association, 107­108 key achievements in, 143 in conservancies, 33­34 key people in, 146­147 credit and finance, 105 lessons from, 155­157 ecosystem-based enterprise associations, list of, 104 non-timber tree products and, 151 element of scaling up, 5, 7, 15­16, 190, 197 partnerships in, 153­155 exclusivity of, 107 resilience and, 200 Fiji LMMA Network, development of, 42 resource rights and program success, 161 financial support for new associations, 197 revegetation of Niger and, 144­148 financial support from, 105 Serving in Mission (SIM) role in, 161 government involvement in, 108 timeline of, 144 informality, problem of, 107­108 tree regeneration, 146 ISOs and, 80, 86­89. water and land reclamation and, 149 See also Intermediary support organizations women and, 152­153 learning networks, 105­106, 197 Nondiscriminatory tax and regulatory regimes. See Equity local demand and commitment, 61­63 Nongovernmental organizations (NGOs). local organizations as, 71­73, 72 See also Intermediary support organizations (ISOs); local production and processing, 95­101 specific organizations market influence, 97, 103 associations and, 96 membership organizations, 107 in Bangladesh wetlands conservation program, 113, 118, 121, 166 political process and, 106­107 funding for programs from, 167 power of association, 95­107, 109 intermediary support organizations. product standards and market research, 103­105 See Intermediary support organizations (ISOs) social capital and, 25 land leasing arrangements and, 53 Watershed Organisation Trust (WOTR, India) and, 79 local demand and, 68 New Ventures (World Resources Institute), 181 local organizations and, 75 Ngata Toro Community (Indonesia), 58 in Madagascar, 57 NGOs. See Nongovernmental organizations medicinals market and, 99 Nicaragua microfinance and, 181­182 associations in, 97, 103, 105 microinsurance and, 183, 184 Finca Esperanza Verde (FEV), 19 participatory decision-making, 65, 66 land registration in, 53 role of, 73, 174, 177, 181­182, 190, 195 sustainable forest management in, 127, 141 rural development support by, 73 Niger North Western Bee Products, Ltd. (Zambia), 18 conservancies in, 55 Nyae Nyae Conservancy (Namibia), 31 customary land systems in, 53 land registration in, 53 re-greening movement, 142­157. O See also Niger's re-greening movement Official development assistance (ODA), 216 soil and water conservation practices in, 55 Operation Flood (India), 108 Women on the Move (women's savings groups), 74 Organic Cashew Agroindustrial System (SAMO), 96 Nigeria, associations in, 104 Organic farming, 104, 106 Niger's re-greening movement, 142­157 product certification, 101, 105, 174 256 I N D E X Organizational scaling up, 11 P in Bangladesh, 124 Pagdee, A., 50 Oromia Coffee Farmers' Cooperative Union (Ethiopia), 100 Pakistan's Aga Khan Rural Support Programme, 27, 84­85, 86, Ownership, 49­70 89, 90 in Bangladesh inland fisheries program, 117­118 Palau and Pohnpei, locally managed marine area (LMMA) in, 38, 39 challenges to secure tenure, 50­51, 221 Palm oil business, 168, 174 collective action, 62, 62­63, 67 Panama, sustainable forest management in, 127, 141 communities as investors, 61­62 Papa Andina, 87, 90 customary tenure systems, 51, 52, 53 Papua New Guinea defined for purposes of ecosystem resources, 14 Dean's Beans in, 93 demand. See Demand Equator Prize finalist from, 59 ecosystem management and, 190 locally managed marine area (LMMA) in, 38, 39, 41 element of scaling up, 5, 6, 7, 13­15, 191, 195 Participatory decision-making, 7, 63­67 Equator Initiative (case study), 56­60 affinity groups and empowerment, 65­66, 67 Fiji Locally Managed Marine Area (FLMMA) and, 39­40 benefits of, 16, 63­64, 160, 195 forests, 50, 51, 53­54, 54 in conservancy programs, 31­32 informal customary systems, 51 exclusion of the poor, 27, 64­65 information, 55 fact-finding, 65 innovations in tenure, 52­54, 191 Fiji LMMA Network and, 39­40 land and resource tenure, 13, 50­54, 51, 67, 191 free, prior, and informed consent (FPIC), 183 landless, rights of, 53 inclusion of the poor, 65­66 leadership, 55 inequality in, 65 local commitment, 15, 61­62 initial goal identification, 65, 67 local demand, 54­55, 56­59, 61­63, 67, 68­70 institutional design, 66 local institutions and, 53 Namibia's Communal Conservancy Program and, 31­32, 162 Namibia's Communal Conservancy Program and, 31­32 social capacities and technical skills, 66 participatory decision-making, 63­67 weaknesses of, 27, 64­65 resource access, 13, 55, 61 Patronage, 175, 200 resource degradation, 55 Payment for ecosystems services (PES), 164, 165 resource tenure useful even when not perfect, 160­161 Peace Corps, 145 rural enterprise, 54­55, 61 Peer reviews, 87 state claims to land, 51­52 People's Rural Education Movement (India), 87 tenure security, 6, 50­51, 51, 52, 53, 128, 161, 163, 191 Permanent Interstate Committee for Drought Control in tenure systems, 50­51, 52­53 the Sahel, 156 watershed organizations, 68, 68 Permanent Rural Code Secretariat (Niger), 154, 155 257 W O R L D R E S O U R C E S 2 0 0 8 Peru Representation issues, 7, 24, 195, 199­200 associations in, 97 in Bangladesh Resource Management Organizations, 123 Dean's Beans in, 93 in Fiji LMMA Network, 44­45 ISO in, 90 in national legislatures, 175­176, 199­200 sustainable forest management in, 127, 141 Research assistance, 7, 171, 174 PES. See Payment for ecosystems services Resilience Philippines building of, 28­29, 200­201 bureaucratic regulation as obstacle to community forest capacity and, 76 management, 170 case studies illustrating, 111­157 Equator Prize finalist from, 59 climate change and, 157, 192­194 ISO in, 81, 91 definition of, 27­28 locally managed marine area (LMMA) in, 38, 39, 41 ecological, 27­28, 76, 106 tax rates on forest activities in, 171 economic, 28, 76, 106 Pilot projects. See Demonstration phase Namibia's Communal Conservancy Program and, 36 Plywood export market in Indonesia, 169 networks and, 106 Pole Pole Foundation (Congo), 58 scaling up and, 5, 6, 10, 12, 27­29, 200­201 Political parties, 176, 200 social, 28, 76, 106 Political rights index, 221 Resistance to change, 168 Political scaling up, 11 Resource degradation, 55 in Bangladesh, 124­125 Resource rights, 49­50 Population Resource user groups (RUGs), 6, 73. definition of total population, 208 See also Bangladesh inland fisheries growth, 190, 192 Resourcefulness. See Resilience human well-being and, 204, 206­209 Rinaudo, Tony, 146­147, 155 Poverty. See Rural poverty imperative Rio Platano Biosphere Reserve (Honduras), 141 Poverty gap, 22­23 Road construction, 177­179 Poverty Reduction Strategy Paper (Bangladesh), 121, 125 Rotating credit associations, 72­73 Pred Nai Community Forest (Thailand), 18 Rules, natural resource management, 62, 63, 112 PREM. See People's Rural Education Movement (India) Rural Code (Niger), 154, 155, 157 Price-fixing, 169 Rural markets, policies to enhance, 168 Prizes and awards, role of, 55, 162, 195. See also Equator Prize Rural poverty imperative, 20­23 Producer associations, 103­105 climate change and, 192 PRONACOM (National Competitiveness Program, depth of poverty, 22­23 Guatemala), 140 ecosystem decline and, 8, 9 Property rights, benefits of, 50. See also Ownership global average income of rural poor, 23 ProPetén (Guatemala), 131 growth and increased equity, 23 Public Institution Resource Management Group, 72 population living on less than $1/day, 20, 21, 22, 208 population living on less than $2/day, 20, 21, 22, 208 poverty is predominantly rural, 22 Q purchasing power parity used for comparison purposes, 23 Quantitative scaling up, 10 recent poverty trends, 20­21 in Bangladesh, 123­124 scaling up and, 6, 8, 10 Quibdo Women's Network of Medicinal Plant Producers well-being, dimensions and elements of, 20 and Marketers (Colombia), 59 Rwanda, coffee cooperatives in, 28 R S Rainforest Alliance, 81, 135, 136, 137, 138, 140, 141, 162 Sahel, 157. See also specific countries Reducing Emissions from Deforestation in Developing Countries Sahel Re-Greening Initiative, 157 (REDD), 164­165 Sakhokuhle Association (South Africa), 108 Registration of business, 221 Sao Tome, fishery access agreements in, 183 Registration of land, 53, 221. See also Ownership Savings groups, 72, 73 Remittances, 179­180, 184, 184­185, 216 258 I N D E X Scaling up, 3­45, 189­201 organizational, 11, 124, 139­140 capacity and, 5, 7, 15, 27. See also Capacity ownership and, 5, 7, 13­15, 191, 195. See also Ownership changing development paradigm and, 26­27 pilot projects' or demonstrations' success as catalyst for, 7, of community-based natural resource management, 5, 8, 9, 10, 12 161­162, 191 of community-driven ecosystem enterprise, 5, 6, 7 political, 11, 124­125, 140 connection and, 5, 6, 7, 15­16. See also Connection potential for, 12­13 defined, 10 quantitative, 10, 123­124 elements of, 6­7, 10 reconciling local governments with role of resource manage- enabling environment for, 6, 7, 16, 17, 24 ment organizations, 163 Equator Prize finalists and, 60 resilience and, 5, 27­29 Fiji as example of local management of coastal fisheries, 38­45 social capital and, 5, 25­26 functional, 11 successfully driving scaling up process, 159­187 future trends and, 201 tenure change and, 160­161 governance and. See Governance thesis on, 5­7 institutional, 11 types of, 10­11 Namibia as example of community conservancies, 30­37 Sea turtle protection, 60, 82 need for, 8­13 Secondments, 196 networks and, 5, 7, 15­16, 197. Security See also Networks and associations financial, 6. See also Financial support and commitment food. See Food insurance and, 183, 184 as part of well-being, 20 social security, 88 tenure. See Ownership Seed banks, 56, 59, 197 Seed money, 56, 82, 185, 197 Self-Employed Women's Organization (SEWA, India), 88, 89 Self-help groups, 72, 73, 87, 195 Self-interest, 200 community investment and, 70, 79, 115, 127 impact of, 134 legal security and, 154 natural resources and, 9 necessity of, 15 REDD and, 164, 165 resilience and, 111, 192 spontaneous self-scaling and, 148 sustainability and, 112, 129 Senegal bureaucratic regulation as obstacle to community forest management, 170, 172­173 charcoal trade in, 169, 172­173 conservation and regeneration projects in, 156­157 National Rural Infrastructures Program, 26 Sepik Wetlands Management Initiative (Papua New Guinea), 59 Service delivery groups, 72 Serving in Mission (SIM, Niger), 146, 150, 155, 166 Sesfontein Conservancy (Namibia), 33 SEWA. See Self-Employed Women's Organization (India) Sewers, 54 Shompole Community Trust (Kenya), 57, 58, 60 Shompole Lodge (Kenya), 57 Sidman Union (Ethiopia), 101 259 W O R L D R E S O U R C E S 2 0 0 8 SIM. See Serving in Mission (Niger) Technical Training and Productivity Institute (Guatemala), 140 Skill development. See Capacity Telecommunications, 177­179 Small and medium enterprises (SMEs), 181 Digital Access Index, 221 Small forestry enterprises (SFEs), 168, 168 microfinance and, 180 Small Industries Development bank of India, 105 Tenure rights. See Land and resource tenure; Ownership SmartWood, 138 Thailand Social capital, 5, 16, 25­26, 28, 62 associations in, 104 in Bangladesh, 114 ISO in, 91 ISOs and, 80 land registration in, 53 in Niger, 143 Pred Nai Community Forest, 18 Social Forestry System (Honduras), 17 Timber markets. See Forests Social resilience, 28 Titling of land, 53, 191. See also Ownership Namibia's conservancy program and, 36 Torra Conservancy (Namibia), 32, 36 Social security, 88 Tourism. See also Ecotourism Solomon Islands, locally managed marine area (LMMA) in, 38, 39 in Costa Rica, 60 Songtaab-Yalgré Association (Burkina Faso), 97 in Namibia, 34, 35, 37 South Africa, associations in, 108 Shomple Community Trust (Kenya), 57, 58, 60 South America. See Latin America; individual countries Tourism Shompole Community Trust (Kenya), 60 South Asia. See also individual countries Trade unions, 108 poverty reduction in, 20 Traditional organizations, 72 water needs in, 192 Training. See Capacity Sri Lanka, medicinals market in, 99 Transparency Starbucks, Ethiopian cooperative coffee and, 101 in Bangladesh inland fisheries program, 117, 167 State claims to land, 51­52 ISOs and, 80, 92­93 State policies. See Governance in regulation of markets, 169, 197­200 Stewardship, 12 Tribal authorities, 24 Sub-Saharan Africa. See also individual countries Trust, 163, 167, 195, 201. See also Accountability poverty gap in, 23 Tschinkel, Henry, 128, 129 poverty reduction in, 20 Tseiseb Conservancy (Namibia), 36 Sustainable agriculture, 53, 81, 82, 90­91, 99, 105, 107, 140 certification of, 105 Sustainable environment practices, 12 U Bangladesh wetland resources and, 124 Uganda Fiji LMMA Network and, 44 customary land systems in, 53 income from, 9, 25 infrastructure investment in, 179 Namibia conservancy program and, 36 insurance industry in, 184 networks in, 104 patronage system in, 175 T reforestation program in, 164­165 Tahoua Rural development Project (Niger), 153 UN Development Fund for Women, 97 Talamanca Initiative (Costa Rica), 60 UN Development Programme (UNDP) Tank User Groups in India, 24 community-driven development and, 26 Tanzania Equator Prize of, 55, 56­60, 88, 97, 162 accountability in, 76 Equator Project of, 56­59, 86 bureaucratic regulation as obstacle to community forest UN Framework Convention on Climate Change, 164 management, 170 Undernourished, definition of, 212 customary land systems in, 53 UNIDO. See United Nations Industrial Development Organization networks in, 104 Union Association of Exporters (Guatemala), 140 Taxes Unión Maya Itzá (Guatemala), 135 adjustment for equity in, 7, 170­171, 198 Unions. See Agriculture; specific union by name in Guatemala, 163 United Kingdom Department for International Development in Vietnam, 171, 171 Bangladesh fisheries project funded by, 123 Technical assistance, 7, 15, 171, 174, 195, 197 funding for programs from, 167 Guatemala forestry enterprises, 131 260 I N D E X United Nations Development Programme (UNDP) Watershed Organisation Trust (WOTR, India), 66, 68, 77, Bangladesh Coastal and Wetland Biodiversity Management 78­79, 78­79, 80, 81, 82­83, 85, 162, 163, 192 Project and, 121 finance, facilitation by, 89 Human Development Index, 204 horizontal networking and, 87 United Nations Environment Programme (UNEP), 13 as ISO, 91 United Nations Framework Convention on Climate Change, 157 Wealth, distribution of, 25. See also Elite capture United Nations Industrial Development Organization (UNIDO), poverty gap, 22­23 97, 105, 108 Websites to show pilot programs' success stories, 162, 191 United States Agency for International Development (USAID) Wentling, Mark, 151 Bangladesh programs supported by, 112, 113, 117, 120, 121, 124 West Africa. See also individual countries Ethiopian coffee cooperatives and, 100, 102 government and associations in, 108 funding for programs from, 162, 167 palm oil business in, 168 Guatemala forestry enterprises and, 127­133, 137, 138­139 titled property rights in, 51 Living in Finite Environment (LIFE) program, 37 Wetlands Namibia conservancy program and, 34 livelihoods in Bangladesh in. See Bangladesh inland fisheries Nepal's medicinal market and, 99 in Papua New Guinea, 59 Niger's re-greening movement and, 145, 146, 150, 151, 154­155 Where is the Wealth of Nations? (World Bank), 25 West Africa and, 156­157 WIDECAST, 82 University of Manitoba, 56 Wilderness Safaris Namibia, 36 University of Namibia, 33 Wildlife conservancies. See Namibia's Communal Conservancy University of South Pacific (USP), 39, 41 Program in Papua New Guinea, 59 Upazila Fisheries Committees, 115­116, 118, 163, 166 Wildlife Conservation Society, 131, 135 Utkal Mahila Sanchaya Bikas (women's self-help groups), 87 Winrock International, 113, 121, 124, 162, 166 Winterbottom, Bob, 157 Women V in Bangladesh, 119­120, 124 Valexport producer association (Brazil), 103­104, 107 in Fiji, 41, 45 Venezuela, land registration in, 53 in Guatemala, 133 Vertical networking, 7, 15, 57, 88­89 in Mexico, 184 Vietnam in Namibia, 35 climate change and, 192 in Nepal, 64, 107 infrastructure investment in, 178 in Niger, 74, 152­153 State Forest Enterprise, 171 Self-Employed Women's Organization (India), 88, 89 taxes on forest products in, 171, 171 UN Development Fund for Women, 97 Village Land Commissions (Niger), 53 Women on the Move (women's savings groups in Niger), 74 Village organizations (VOs), 84 Women's Network of Medicinal and Aromatic Plant Producers Vitukawalu, Rata Aca, 41 and Retailers (RMPCPMA, Colombia), 104 Women's organizations (WOs), 84 World Bank W Bangladesh fisheries project funded by, 123 Wasundhara approach (India), 70, 82­83 community-driven development and, 26­27 Water issues. See also Clean water in Ghana, 61 availability of resources, 204, 212 on income equality, 23 in Bangladesh, 123 local institutions and, 77 Water Poverty Indexing (WPI), 212 on long-term commitment by donors, 124 Watershed management medicinals market and, 99 in Bangladesh, 13, 13, 68 in Niger, 145, 148, 154 community involvement, 55, 63 on poverty levels, 23, 190, 192 in Haiti, 62 on remittances, 184, 184 in India, 13, 19, 61, 82, 85, 167. See also Watershed Where is the Wealth of Nations?, 25 Organisation Trust (WOTR, India) World Conservation Union on Bangladesh fish species, 113 rehabilitation program, 11, 13, 17 World Resources Institute's New Ventures, 181 261 W O R L D R E S O U R C E S 2 0 0 8 World Resources 2005: The Wealth of the Poor (WRI, World Z Bank, UNDP, UNEP), 78 Zambia World Wildlife Fund (WWF) community investment requirement in, 61 funding for programs from, 167 ISO in, 93 Living in Finite Environment (LIFE) program, 37 network in, 103 Namibia conservancy program and, 34 North Western Bee Products, Ltd., 18 WOTR. See Watershed Organisation Trust (India) 262 UNITED NATIONS DEVELOPMENT PROGRAMME UNITED NATIONS ENVIRONMENT PROGRAMME UNDP is the UN's global development network, an organization advocating for change UNEP, established in 1972, is the voice for the environment within the United Nations and connecting countries to knowledge, experience and resources to help people build system. UNEP acts as a catalyst, advocate, educator and facilitator to promote the a better life. We are on the ground in 166 countries, working with them on their own wise use and sustainable development of the global environment. To accomplish solutions to global and national development challenges. As they develop local this, UNEP works with a wide range of partners, including United Nations entities, capacity, they draw on the people of UNDP and our wide range of partners. international organizations, national governments, non-governmental organiza- tions, the private sector and civil society. World leaders have pledged to achieve the Millennium Development Goals, includ- ing the overarching goal of cutting poverty in half by 2015. UNDP's network links and UNEP work encompasses: coordinates global and national efforts to reach these Goals. Our focus is helping I Assessing global, regional and national environmental conditions and trends countries build and share solutions to the challenges of: I I Developing international and national environmental instruments Democratic Governance I I Strengthening institutions for the wise management of the environment Poverty Reduction I I Facilitating the transfer of knowledge and technology for sustainable development Crisis Prevention and Recovery I I Encouraging new partnerships and mind-sets within civil society and the Environment and Energy private sector I HIV/AIDS Visit the UNEP website at http://www.unep.org UNDP helps developing countries attract and use aid effectively. In all our activities, we encourage the protection of human rights and the empowerment of women. Visit the UNDP Web site at http://www.undp.org WORLD BANK GROUP WORLD RESOURCES INSTITUTE Founded in 1944, the World Bank Group consists of five closely associated insti- The World Resources Institute (WRI) is an environmental think tank that goes beyond tutions: the International Bank for Reconstruction and Development (IBRD); research to find practical ways to protect the earth and improve people's lives. International Development Association (IDA); International Finance Corporation Our mission is to move human society to live in ways that protect Earth's environ- (IFC); Multilateral Investment Guarantee Agency (MIGA); and the International ment and its capacity to provide for the needs and aspirations of current and Centre for Settlement of Investment Disputes (ICSID). The World Bank is the future generations. world's largest source of development assistance, providing nearly $30 billion in loans annually to its client countries. The Bank uses its financial resources, its Because people are inspired by ideas, empowered by knowledge, and moved to highly trained staff, and its extensive knowledge base to individually help each change by greater understanding, WRI provides--and helps other institutions developing country onto a path of stable, sustainable, and equitable growth. The provide--objective information and practical proposals for policy and institutional main focus is on helping the poorest people and the poorest countries, but for all change that will foster environmentally sound, socially equitable development. its clients the Bank emphasizes the need for: WRI organizes its work around four key goals: I Investing in people, particularly through basic health and education I People & Ecosystems: Reverse rapid degradation of ecosystems and assure their I Protecting the environment capacity to provide humans with needed goods and services. I Supporting and encouraging private business development I Access: Guarantee public access to information and decisions regarding I natural resources and the environment. Strengthening the ability of the governments to deliver quality services, efficiently and transparently I Climate Protection: Protect the global climate system from further harm due to I emissions of greenhouse gases and help humanity and the natural world adapt Promoting reforms to create a stable macroeconomic environment, conducive to to unavoidable climate change. investment and long-term planning I I Markets & Enterprise: Harness markets and enterprise to expand economic Focusing on social development, inclusion, governance, and institution building opportunity and protect the environment. as key elements of poverty reduction. Visit WRI online at http://www.wri.org Visit the World Bank website at http://www.worldbank.org WORL D RESOURCES 2008 United Nations N AT U R E I S A N E S S E N T I A L Y E T E L U S I V E A S S E T F O R T H E W O R L D ' S P O O R . It routinely provides Development Programme subsistence livelihoods for poor rural households but little prospect for creating opportunity, wealth, and security-- the foundations of well-being. This need not be so. The reality of poverty today is that almost half the world's population lives on less than $2 per day and that some 75 percent of them, almost 2 billion, live in rural areas largely dependent on natural resources for their livelihoods. World Resources 2008 argues that properly designed enterprises can improve those livelihoods and, in the process, United Nations create resilience--economic, social, environmental--that can cushion the impacts of climate change, can keep Environment Programme communities rooted, and can help provide needed social stability. The report builds on World Resources 2005: The Wealth of the Poor, which showed that ecosystems can become the focus of a powerful model for nature-based enterprise that delivers continuing economic and social benefits to the poor, even as it sustains the natural resource base. Evidence shows that poor rural families empowered with secure resource rights can increase their income stream from nature significantly with prudent ecosystem management. World Bank World Resources 2008 explores what is necessary to allow such nature-based enterprises to scale up so as to have greater impact--geographically, economically, politically. It identifies three critical elements: community ownership and self-interest; the role of intermediate organizations in providing skills and capacity; and the importance of networks--formal and informal--as support and learning structures. It outlines specific actions that governments at all levels can take to encourage and support such change. World Resources When these three elements are present, communities can begin to unlock the wealth potential of ecosystems in ways Institute that actually reach the poor. In so doing they build a base of competencies that extends beyond nature-based enterprises and supports rural economic growth in general, including the gradual transition beyond reliance on natural resource income alone. They also acquire greater resilience. It is the new capacities that community members gain--how to conduct a successful business, how to undertake community-based projects, and how to build functional and inclusive institutions--that give rise to greater social and economic resilience. It is the insight that ecosystems are valuable assets that can be owned and managed for sustained benefits that builds the foundation of ecological resilience. Together, these three dimensions of resilience support the kind of rural development whose benefits persist in the face of a wide variety of challenges, environmental and otherwise, that poor communities are sure to face in the future. ISBN 978-1-56973-600-5 World Resources 2008 is the twelfth volume in the series. In conjunction with EarthTrends, it presents a full range of statistics on environmental and development trends. To order, please visit the WRI web site at http://www.wri.org. ISBN 978-1-56973-600-5 200 RESOURCES W WORLD O R RESOURCES LD 2008 Roots of Resilience THE WORLD B Roots of Resilience WRI Growing the Wealth of the Poor WORLD RESOURCE INSTITUT O W N E R S H I PIC A P A C I T YIC O N N E C T I O N