9~~~~~35 - 12 .JA ;00 :, , i p f ... . .~~~~~~~~* D 1e . . 1!_~~~- MAKING SUSTAINABLE COMMITMENTS An Environment Strategy for the World Bank -- - n manv developing countries, the costs of fn.ir',ni-Il dl ,-leradcation have been estimated at 4 to 8 percent of CDP annually. N,jliral rosources degradation- Idepleted soils, insutficient water, rapidly l.ipJiI forests, collapsed fisher- ies-threaten the quality of life of r-,,lli.r,, p -.ipl. Environment problems also * .~" =~ -' . s threaten the healih of millions; an ei-nrle.I i. n,illi,tw people die annually, and many more get sick, in developing countries from water-related diseases, indoor air pollution, Lirban air pollution, and exosure to toxic chemicals. Environmental - degradation also increases the vulnerability of people to natural disasters The impact of environmental degradation rIheateri. the basis for growth and livelihoods today and in the tuture. Environmental d( r.gidii:ii also reaches across borders, affecting the quality of the regional and gl6bal commons. The Environment Strategy Making Sustainable Commitments is responding to these challenges. An Environment Strategy for the World Bank This Environment Strategy outlines how i,. -\\-rldl B,&i. will work with client countries to address their environmental challenges and ensure that Bank projects and programs integrate principles of environrnental sustainability. The Strategy sets a visioon, objectives, and a course of action for the longer term and suggests specific - actions, targets, and institutional measures for the next five years, as described in The World Bank T-ables 1 and 2 of the Executive Summary. The Strategy is the product of a multi-year effort, including an extensive evaluation of the Bank's past performance, and numerous workshops and consultations with client 2' *i riIi. civI society, academia, multilateral and bilateral development agencies, and representatives of the private sector. Environmental Priorities for a New Millennium CHINA- QO ver the last two decades, the Chinese government has made *i ..ii i inroads in battling a range of environmental problems-including air AIR LANt) pollution, water pollution, and deforestation Yet environmental challenges are likely to be far greater and more complex over the next 10 years, which will ANC) W ATER require a significant change in development strategy This is the main finding of a new World Bank report entitled China. Air, Land, and Water - Environmental Priorities for a New tslillennwum, which was released in August 2001 C The report was prepared by a World Bank team and assistedl by technical specialists i:HINA from 10 Chinese research institutes, universities, and NGOs It reviews the state of China's environment, assesses the effectiveness of the government's environmental protection work over the last 10 years, and makes recommendations on how to address the new challenges that will face the country over the next decade. The report points to three areas of success broad-based and absolute reduction in industrial air and water pollutant emissions during the second half of the 1 990s; the reversal of deforestation through massive investments in relorestation and afforesta- tion; and the reversal of secondary salinization in irrigation areas through major programs of both control and prevention. 4ti Overall, the report urges that China's environmental strategy needs to become more proactive. The current approach focuses mainly on remedying the adverse environ- mental effects of previous development decisions. In the future, more emphasis should be placed on .i, :Inx or minimizing the adverse environmental effects of development policy in the first place. Written for a broad audience, this book will be of interest to all those concerned about environmental quality in Asia. A CD-ROM, which is included in the book, provides background research and additional technical detail. To obtain these publkations, please visit or contact the World Bank Info Shop at 701 18th Streetl N.W., Washtngton, D.C. Phone 202-458-5454, fax 522-1500, website http.//www.worldbank.org/infoshopl, e-marI: pic@worldbank.org. letter from the TAT Environmentally and Socially Sustainable Development elcome to the 2001 edition of Environiiient Matters, which reviews the World Bank's cur- rent environmental activities and describes the challenges ahead. We have a very real chance of reducing world poverty, and doing so in a manner consistent with a clear social and environmental conscience. But it takes actions across all communities of the world- from a small farmers' organization to a large private multinational corporation to the western governments of the world. The international development community is now reaching a consensus on the critical development goals facing the world on several fronts, and in every case environmental issues are a large part of the agenda. Particularly significant is an effort by the international development agencies to draft a common set of development goals; and important for the Bank is the new World Bank Environment Strategy. In both of these initiatives, there is a redoubled effort to strengthen the linkages between environment and poverty reduction goals. The leaders of the major international development institutions-including the United Nations, Organisation for Economic Co-operation and Development, International Monetary Fund, and the Bank-are working to develop a common set of international development goals. The discussions in progress focus on integrating the international development goals agreed to by these four institutions with the UN's Millennium Development Goals. Ensuring environmental sustainability is one of the seven agreed goals. The challenge ahead is to convert these goals into real progress on the ground. Environmental health risks still cause nearly 20 percent of the burden of disease in developing countries; natural resources are under great pressure; and natural and man-induced disasters continue to cost billions of dollars and countless personal tragedies around the world. To help make these goals a reality, the World Bank's Environment Department has completed Making Sutstaiale Commiiiiit- me)mts, the Bank's new Environment Strategy. For the first time, the Bank has consolidated its approach to environmental protection into a single document. The strategy will ensure economic growth does not come at the expense of people's health and future opportunities because of pollution and degraded natural resources and ecosystems. We have strived to integrate environment into the development agenda of the Bank because sustainability is at the heart of development. The Environment Strategy, which is the primary focus of this issue of E1nvironmiiienit Matters, builds upon ongoing efforts and programs. It considers lessons from the past, responds to a changing Bank and a changing global context, and deepens our commitment to sustainable development. The new elements of the Strategy include a strengthened emphasis on poverty- environment linkages and local environmental concerns; an increased focus on tools that help integrate environment into sectoral programs and policies; and efforts to improve institutional incentives to mainstream sustainability in projects. The Strategy poses many new challenges for the way the Bank conducts its business. It stresses the need to strengthen accountability and incentives; coordinate across sectors; improve the skills mix; adjust budgets to reflect corporate priori- ties; realign partnerships to effectively leverage scarce Bank resources; and monitor progress to track the implementation of the Strategy and the Bank's performance. In short, the international development community has set a clear direction for the future. Collective community action is needed, and the World Bank will play its part. In the coming decades, we must find better ways to bring together govern- ments, the private sector, NGOs, local communities, and civil society to end poverty and build a sustainable world for our children and grandchildren. a±& 2&lLL%- Ian Johnson Environment Matters is a magazine of the World Bank Group. Also visit the magazine at the Bank's website - WVelcom e to http:l/www.worldbank.orgJ Environmentally and Socially Sustainable m atters . . . Development Network Managers Cnair Founded in 1944, the WdVorld Bank Group consists of five closely associated institutions. Our Ian Johnson mission is to fight poverty for lasting results and to help people help themselves and their environ- Ernviron menat Kristalina 1. Georgieva ment by providing resources, sharing knowledge, building capacity, and forging partnerships in Rura the public and private sectors. Robert L. Thompson Soc a The WNorld Bank Group is owned by 183 member countries who are represented by a Board of Steen Lau Jorgensen Governors and a Washington-based Board of Directors. Mlember countries are shiareholders who carry ultimate decisionmaking power in the W,Vorld Bank. Environment Matters is produced by the Headquartered in Washington, D.C., the Batik operatesiln 100 courhrx ofes atid has approxi- World Bank's Environment staff with mately 10,600 emplovees. James D. Wolfensohn is president of the five institutions. contributions from the Bank's Regions. The NVorld Bank Group is the world's largest source of development assistance. In fiscal 2000, the Editorial & Production Team institution provided more than $15 billion in loans to its client countries. It works in more than for the Annual Review 100 developing economies, with the primary fcus of helping the poorest people and the poorest Technica Editors countries. For all its clients, the Bank eniphasizes the need for: Kirk Hamilton and Stefano Pagiota * Investing in people, particularly through basic health and education Story Ed Tor * Focusing on social development, inclusion, governance, and institution-building as kev elements Robert T. Livernash of poverty reduction Maraging and Pl-oto Ed Uo * Strengthening the ability of governments to deliver quality services efficiently and transparently Jim Cantrell U Protecting the environment Ea 'or al Asyoniaip U Supporting and encouraging private business development Jason Steele U Promoting reforms to create a stable macroeconomic environment that is conducive to investment and long-term planning. The Bank is organized in regions as follows: Special Contributors AFR-Sub-Saharan Africa LCR-Latin America and the Caribbean nrijslyn Ebro EAP-East Asia and the Pacific NINA-Nliddle East and North Africa Anita Gordon ECA-Europe and Central Asia SAR-South Asia The World Bank Group i. Notes: The World Bank A 5 = B5S do ars IBRD IDA IFC MIGA ICSID lnage on pane 6 frm Bnhu-an Innernatconal Bank Iniernanonaal International Muicilateral Internacional for Reconstruction Development Finance Investment Cencre for A rmacne contained ir the b Odiversity and Development Associarion Corporation Guarantee Agency Setlermer.t of bar orr pages 23-23 were taken by Investment J C K MacK gnon Disputes IBRD riaas nrir bered 31552 tnirough ETt i145 E: rL 141t" E:I t' liSc E:a t iQ66 Et;t1t Cc. 31565 contained ir the Recona 00; t, c . . 'ci rerrar , 4 cn.,tr..' IS 4 r I f sect on o the inagaZ le Vocre * . -e; f produced by the Map Desagn Unit of the War d Bank The bOa.ndosres i.m,'r. r.1.r . ; nr. l ib } ir S- 4 .r:.:: r.. i. l : r l .. 1:. colcrs aenom nat ons and any otmer I r' '..g . . , ...-ic. ta .. ri i'm r: 3' irformaton anosown an tese maps da' I:.-uJ.- l fi .; .:..'i *.i.i ;.. o. :W.;).gf :r I: I.iC.ie' '; t.'r;r.:.'. Ii:s. nrct mply ans he pat ot the VWord . ; ri *s,.. d , r,.,;. I i, br i:...- . x r. r.;, Bask Groua any .jdgment on the legal : . . . status ot any tery"torr or any I. i.l, i, endcrsenrent : ancceptance of sunh i ocuncar es _ About the Cover: Pub catiana Info 202-473-1155 Generaltl Iu es 202-473-3641 _ Tie crested wood partridge Rollulus roulroulis a common resident of lowland rain forests Decartrment Fex 202-477-0565 in Sumatra and Borneo. These are now some of the most threatened forests on Earth-it WVeb addreas rttp www wworldbanK oro . a 1s been estimated that at present rates of clearance for agriculture and logging, all - .4 Itlowland forests in Sumatra will be cleared by 2005 and those in Kalimantan (Indonesian F'r ntid a tr soy ink on recyc ed. chlor ne- V _ - Borneo) will have vanished by 2010. The undisturbed rainforests have been vanishing at free paper Please recyc e , - Ihe rate of 1.5 million hectares a year over the last 12 years. The partridge occurs within a the Kerincl national park and adjacent forests, the site of a Bank/GEF integrated conservation and development project, which is strengthening park management and working with local communities and forest concessions to maintain a permanent forest aast1 Tne Wo' d Bank Gioup estate across a range of habitats from lowland forests to the peak of Sumatra's highest 's i t8 8 r Street N WV mountain, Gunung Kerinci. Warhinron GD C a0433 . -- ---- This year the crested wood partridge was chosen as the symbol for the June Er.-,rzmnent Events at the World Bank to symbolize the linkages between healthy ecosystems, biodiversity conservation, and sustainable development. Photo: J. & K. MacKinnon Con ILts 2001 MAKING i - - ^ w_e SUSTAINABLE COMMITMENTS The World Bank's new - ^ Environment Strategy :___-________________ is an integral part of a __ \ _ - 8;; : comprehensive approach to development. Letter from the Vice President, ESSD I REGIONAL REVIEWS VIEWPOINT, by Mohammed Valli Moosa 4 Onec size docs not fit all. Working in collaboration with our clients anid partners to identify thc critical esiroamental issLoes that should South Afric a's T\ I initcr of Ens ironment lo, ks forward to thec WVorld bhe addressed in specifi c circumstances is a central thecme of thc Suns mit for SuIstain flle D Iseloptnent. Strategy. This section summarizes the main elements of the regional Making Sustainable Commitments 6 crnvironroent strategies. (se" nsta 'dv ) Sub-Saharan Africa 24 The World Bank's Environment 10 East Asia & the Pacific 28 Strategy Consultations P'reparing the EIvxironmsent Strategy required extensive consulta- Europe & Central Asia 32 tions, both iniside and outside thc Bank. Latin America & the Caribbean 36 From Strategy Preparation to Implementation 12 Middle East & North Africa 40 With the Bank's Fnv-ironment Strategy nose completed, efforts hase to focu, on implemnctation. South Asia 44 Focusing on Poverty and Environmental Links 14 hroad linkages hetween ~Building a Sustainable Development Roadmap 48 The Environment Strategt highlighits thrce broad linkagcs betweeii IFC 's Strategy to enisure environmental anid social responshihitN poverty arid the environmciit: health, livelihoods, aid vulnerability to narural d1isasrers News Updates 52 Include, updates on Environment NVeek at the Balk, the Kioto Protecting the Global Commons 18 Protocol-limplcationis from Bonn, the Nile Basin Initiative, CEPE; Pocnt-btairgnloio a c pe ofRio+il (Io preparations, aznd Greening the Bank. Protectig tho gloBal ank d regional coairone s is a kes conipo.erit tit the Vs brld B siak, kin. lironirslent 'Strategs The Bank's Environment Portfolio 56 0s er thc last decadc the \\orld Banik's actiities in the eln ironineiatal The Safeguard Policies at the Core of the 22 area hace evoolved frnni prini:irily staid-alorne projects toward a Environment Strategy hroader portfolio. The World Bank's safeguard policies help integrate environmcntal Environment by the Numbers 60 arid social conccrns into design anid iniplemenitation cg Bank- supported activities. Sclected indicators sunimarize the maini erivironrnental trends in countries throughiout the iwnrld. BACK OF THE BOOK Environmental Publications 64 Mailing List (inside back cover) Johannesburg 20O r-- MUST BE ABOUT PEOPLE, PLANET, D PROSPERITY VIEWPOINT by Mohammed Valli Moosa, Minister of Environmental Affairs and Tourism, South Africa Where do we come from The vision for Johannesburg 2002 Next year in Johannesburg, world leaders will re-visit the his- In September 2002, we shall gather in Johannesburg for a ten- toric issues raised at the 1992 Rio Earth Summit: sustainable year review of the historic 1992 meeting. The 2002 United Na- development and the protection of the environment as one el- tions World Summit on Sustainable Development (WSSD) ement of sustainable development. should focus on the identification of accomplishments and ar- eas where further efforts are needed to implement Agenda 21 In the preamble to the 1992 Earth Summit, the context of the and other outcomes from Rio. This summit must focus on ac- world's development constraints was embodied in the interac- tion-oriented decisions to implement Agenda 21. The tion among the economy, social structures, and the environ- Johannesburg meeting is an opportunity to find renewed po- ment. This context has not changed. We still live in a world litical commitment and support for sustainable development. where the disparity between rich and poor constantly increases. As custodians for future generations, we must ensure a safer, Apcentral ss eiopensr anc etween econom de moreproperos ftur in hic we ealwit envronent opment, social development, and environmental protection as ande develospmen isure in ahich baanedealwith manner. ironindependent and mutually reinforcing components of sustain- and development issues in a balanced manner. abedvlpet able development. In 1992, Heads of State and senior government officials of 178 This Summit should be based on a constructive partnership countries got together between the developed to chart the road ahead and the developing foraglobalpartnership How sustainable is a world that promotes world, which recog- that would ensure that nizes our common but all nations would have strident and unabated development in some differentiated responsi- a safer and more pros- bilities for working perous future. This parts ofthe world, yetperpetuates and even toward sustainable de- partnership included velopment. It must the development of exacerbates, underdevelopment, poverty, clearly address the in- Agenda 21; a statement an n"rs teternational challenges on the management, and disease in other parts of the world? to the creation of an en- conservation, and sus- abling environment. tainable development of all forests; and formulation of the United Nations Frame- It should deepen the global commitment to sustainable devel- work Convention on Climate Change and the Convention on opment through a new "global compact," and bring a new spirit Biological Diversity. into the environmental debate. Fortunately there is an emerg- ing consensus that the primary focus of the Summit should be The world departed from Rio with Agenda 21 as a mandate for on "poverty, development, and the environment." sustainable development. The underlying message of that man- date was simple-without better care of the environment, de- Some of the themes that are already emerging include the velopment will be undermined; and without accelerated interlinkages among poverty, environment, and development; economic and social development of poor countries, environ- financing mechanisms; technology transfer; trade and the en- mental policies will fail. vironment; water; energy; environmental health; and land 4 ENVIRONMENT MATTERS * 2001 degradation. These issues are key to the /is61 \VI / ILN. I n The impact of the loss of biodiversity developing world and paramount for \N I t j'¶9II' X on the poor, particutarly as it relates the strengthening of the broad state- W to the invasion of exotic species and ments declared in 1992. destruction of sources of food in the lakes of Africa, must be addressed. What Africa expects We are talking about the intersection between environment, poverty, and from Johannesburg f' 0 '' development. This intersection con- At Johannesburg, the world consensus stitutes the core subject matter of the on the real and practical meaning of sus- Summit. tainable development must take a quan- tum leap forward. Shall we dare to ask There has been much discussion over the question: How sustainable is a world the past years on the question of en- that promotes strident and unabated de- vironmental governance. We will be velopment in some parts of the world, i cowards if our discourse on this mat- yet perpetuates, and even exacerbates, ter is half measured and fails to ad- underdevelopment, poverty, and disease in other parts of the world? dress the real issues. The noble decisions of Rio, and those that emerge from Johannesburg, will be unfulfilled without work- At the recent session of the Governing Council of the United able and democratic institutional arrangements to effect imple- Nations Environment Programme in Nairobi, elements mentation. emerged that could guide discussions on governance and in- stitutional arrangements, including defining workable institu- We need to develop a new system that can empower small and tional arrangements; addressing finances, including looking developing countries to participate meaningfully in matters of into the decisionmaking of international financial institutions; environmental governance. The present proliferation of struc- and instituting a system that empowers small and developing tures, agreements, programs, and conferences simply results countries to participate meaningfully. in an inadequate participation on the part of developing coun- tries. The dispersed and fragmented nature of the system makes The Johannesburg Summit must not shirk the responsibility of it fundamentally undemocratic. To succeed in implementing critically assessing our successes and failures in implementing the agenda for global change, environmental governance pro- the Rio decisions. There is still time to complete unfulfilled cesses need to be transparent. There is a very small body of tasks. The time between now and the 2002 Earth Summit is people in this world who really and truly understand all of valuable time. Johannesburg must be more than just about look- these processes and the large variety of acronyms that go along ing back. with it. The WSSD and Africa There is no point in having wonderful arrangements without adequate finances and resources, and we need to get that right. The people of Africa, and indeed the world, will look upon this Hopefully, we will tackle these issues before we get to great gathering of world leaders and want them to chart a path Johannesburg. The journey to Johannesburg is as important as forward with courage and determination. Such a path must the Summit itself. Let us commit ourselves here to complete all provide hope: that needs to be done in our own national preparatory pro- * To the millions who suffer from waterbome diseases cesses, including popular mobilization for sustainable devel- * To the children who suffer as a result of underdevelopment opment. Without popular mobilization, we will not have * To the women whose emancipation will continue to elude sustainable development. us as long as they carry the burden of daily scavenging for sources of energy and clean water. Mohammed Valli Moosa The Summit must have prominently on its agenda questions of health, water, energy, and a better life for children and the emancipation of women. South African Government's Department of Environmental Affairs and Tourismi, Private Bag X447, Pretoria 0001, South Africa. 012-310-3611. JULY 2000-JUNE 2001 X (FY2001) (fax) 012-322-0082. Aebsite - lati :/ 5 An Environment Strategy for the World Bank by Kristalina 1. Georgieva, Director, Environment Department A live live in a time tributed. A large part of the world's lion more people on the planet over the of both aston- population remains desperately poor, next quarter of a century; nearly two ishing progress and we are often witness to devastation thirds of the world's population living and appalling caused by man and nature. in water-scarce or water-stressed areas W V destruction. by 2025; the need to double food pro- Economic development and the abil- Challen girig times duction over the next 40 vears at a time when almost 23 percent of the world's ity to connect around the globe have We continue to struggle with environ- agricultural land has been degraded; the led to dramatic improvements in mental threats. Despite significant loss of more than 9 million hectares of people's quality of life. New growth progress, many damaging environmen- forest a year, putting at risk more than tal trends have not been fully arrested 1.6 billion people who depend on or reversed, thus jeopardizing the live- forests for their livelihoods; the over- unparalleled in human history. But lihoods and development prospects of exploitation and decline of more than 60 these gains have been unevenly dis- billions. The statistics are familiar: 2 bil- percent of the world's marine fisheries- 6 ENVIRONNIENT MATTERS * 2001 threatening the livelihoods of fishermen, A strategy for the The Bank is profoundly grateful to all 95 percent of whom live in the develop- 1 those who took the time and trouble to ing world; and the possible disappear- tuture contribute to the process. ance of small island nations because of Development organizations like the rising sea levels due to climate change. World Bank are facing these challenges oping country priorities, spelling out with a renewed commitment to support three ob ectives: Environmental degradation is of in- the efforts of developing countries to ee obI creasing concern to both citizens and address them. Our experience has * Impirovinig the quiality of life-people's governments in many of the World taught us that environment is also a pov- health, livelihood, and vulnerabil- Bank's client countries. In some coun- erty and a development issue, and in- ity-affected by environmental con- tries, annual losses of productivity and herently relevant to poor people's hopes ditions natural capital run as high as 4-8 per- for a better life. Two things are indisput- * ImprovinZg the quality of growthl-by cent of GDP. That is without the antici- able in today's world: The reduction of supporting policy, regulatory, and pated impacts of climate change, which poverty is critical to the quest for a sus- institutional frameworks for sustain- threaten to undermine long-term devel- tainable future, and environmental able environmental management and opment and the ability of hundreds of sustainability is intrinsic to poverty by promoting sustainable private millions of people in the developing reduction. development world to escape poverty. The Intergov- * Protectinig tl' quality of the regiotal and ernmental Panel on Climate Change es- Earlier this year, the Bank introduced a global comilmonis-by dealing with cli- timates that the steady warming of the new Environment Strategy as an inte- mate change, forests, water resources, Earth's surface temperature will lead to gral part of a comprehensive approach and biodiversity. falling agricultural production in tropi- to development. Central to the Strategy cal and sub-tropical countries, especially is the understanding that if we want These three elements make up the ho- in Sub-Saharan Africa. development to succeed, environment listic approach the World Bank is pur- cannot be an afterthought-it must be suing in order to link environment and The combination of resource depletion considered early and often in develop- development, on both the local and and population growth places the ment planning. global levels. Let me use two examples sustainability of development at risk in to demonstrate what this means in a large number of the poorest countries. The new Environment Strategy outlines practice. The "genuine" savings rate-the change how the World Bank will work together in the total wealth of a country, factor- with its client countries to address their The first is about one of the regional and ing in natural, human, and produced environmental challenges and ensure sub-regional initiatives supported by the capital-is negative in nearly 30 coun- that Bank projects and programs inte- World Bank. For countless generations, tries, while wealth per capita is declin- grate principles of environmental sus- the Nile River has sustained the hopes ing in another 20. This implies that the tainability. The Strategy sets a vision, and dreams and lives of millions of asset base underpinning development is objectives, and a course of action for the people living along its banks. Now, being eroded in these countries, with longer term and suggests specific ac- many of the Nile Basin countries are consequences for social welfare now and tions, targets, and institutional measures sharing a common vision of harnessing in the future. for the next five years. It is the product the full potential of regional cooperation of a multiyear effort, including an ex- through the Nile Basin Initiative (see Poor people are particularly under tensive evaluation of the Bank's past NewvsUpdates, page 53). threat. One-and-a-half billion of them performance, and numerous workshops still do not have access to safe drinking and consultations with client govern- The riverine states-Ethiopia, Sudan, water, nor to adequate sanitary facilities. ments, civil society, academia, multilat- Eritrea, Egypt, Burundi, Rwanda, Tan- This, along with air pollution and vec- eral and bilateral development agencies, zania, Democratic Republic of the tor-borne diseases, is causing nearly 20 and representatives of the private sec- Congo, Uganda, and Kenya-are seek- percent of the mortality and morbidity tor. The consultations played an impor- ing to develop the water resources of the in the developing world. tant role in shaping the final document. Nile Basin in a sustainable and equitable JULY 2000-JUNE 2001 * (FY2OOl) 7 sions-one of the highest in the world per capita and per unit of GDP. To address this problem, the World Bank used a grant from the Global Environ- ment Facility to develop, with the help M4 ] jL of local and international experts, a small project to produce low-cost "kits" for insertion into the normal stoves. The kits improve the stove's efficiency, re- .1.Z . ! r;='=--r-'-S; - . - - .. -----.. duce indoor and outdoor air pollution, -_ - .and also cut down CO, emissions by 54 - _ *, w _ _ _percent. Many low-income consumers, i;- - =s | about two thirds of the population in the -w~ ~ _^_ ^ ^ gei- area, will benefit from these im- provements in terms of fuel cost and health impacts (see Photo, below). The Mongolia story is just one of count- ,- _ l N S$i'K less such activities all over the world, For countless generations, the Nile River has sustained the hopes, dreams, and lives of millions of people where the World Bank is working with living along its banks. Cairo, Egypt. client countries to link local and global way. The range of development projects child deaths and a major part of child environmental concerns and to make the will vary according to country needs, and adult morbidity. It also contributes connections between environment and but will include water supply and sani- to Mongolia's greenhouse gas emis- development. tation, fisheries development, and sus- tainable management of wetlands and biodiversity conservation. Further, they will include joint health and environ- ment activities, such as the control of malaria and other endemic diseases; protection of wildlife; environmental management; and disaster forecasting and management. The second example comes from the coldest capital of the world, the city of Ulaanbaatar in Mongolia, where resi- dents mainly use traditional coal stoves for cooking and to heat their felt tents (gers) and homes. More than 70,000 in- efficient coal stoves produce high levels of air pollution-both indoors and out- doors-especially during the bitterly To help address Mongolia's greenhouse gas emissions the World Bank used a grant from the Global cold and long winter months when the Environment Facility to develop, with the help of local and international experts, a small project to produce smoke hovers over towns. This pollu- low-cost "kits" for insertion into traditional coal stoves. The kits improve the stove's efficiency, reduce indoor tion accounts for half of the country's and outdoor air pollution, and also cut dowr CO emissions by 54 percent. 8 ENVIRONMENT NMATTERS * 2001 ducing the ecological footprint of its _ : Sense of Community Worldwide - physical facilities; setting benchmarks Bank Partnerships_on the Environment 3 for its social and environmental perfor- * As an implementing agency with the United Nations Development Program mance, and reporting on progress with and United Nations Environment Program of the Global Environment independent verification; and greening Facility (GEF), the Bank is supporting projects in four key areas: its procurement practices. biodiversity conservation; addressing climate change; the phaseout of ozone-depleting substances; and the protection of international waters. Working together to • As an implementing agency for the Montreal Protocol's Multilateral Fund, the Bank supports programs in 20 countries and has committed $445 make a di erence million since 1991 for over 558 projects to help enterprises convert to ozone friendly technologies. Now, more than ever, it is imperative that the World Bank help forge a sense * The World Bank/WI7WF Alliance for Forest Conservation and Sustainable of communitv and common interest Use, in which the Bank has invested close to $2 million, calls for 50 million hectares (124 million acres) of highly threatened forest area around the both withi the Bank and with partners world to be protected by 2005 (www-esd.worldbank.org/wwf). and potential partners in client coun- tries, other multilateral organizations, • The CEO Forum on Forests-chaired by President Wolfensohn and the donor countries, nongovernmental or- World Bank/WWF Alliance-is a private sector/civil society dialogue ganizations, and the private sector. Nei- process for improved forest management and forest conservation. ther the Bank nor any other institution * The World Bank, Conservation International, the GEF, and the MacArthur or even country can by itself reach the Foundation are partners in the Critical Ecosystem Partnership Fund (CEPF) development goals needed to reduce to better safeguard developing countries' biodiversity hotspots-highly poverty. Some partnerships already ex- threatened regions where some 60 percent of all terrestrial species diversity ist (see Box). Others are yet to be forged. are found on only 1.4 percent of the planet's total surface area (www.cepf.net). The World Summit on Sustainable De- * The World Bank partners with governments and private companies for the velopment to be held in Johannesburg Prototype Carbon Fund (PCF)-a $145 million fund created by the Bank to in September 2002 will be an opportu- develop real-world experience on how carbon markets and trading could nity, not just for the World Bank but for operate in developing countries and in countries with economies in transi- the whole world, to demonstrate that the tion (www.PrototypeCarbonFund.org). power of partnership is alive and well, and working for the common good. I echo the words of South Africa's Envi- Sustainable management of environ- cause they do not enter into markets. To ronme wordster Soh a's Vi ronment Minister Mohammed Valli ment and natural resources require ef- help alleviate this problem, the World Moosa, "Tlhis Swinutiiit slholild be based otl fective government policies, regulations, Bank is working with several clients to a constructive partner shlip between the de- and institutional frameworks. The new develop systems of payments for envi- Veloped and the developing iworld, whiicha strategy calls for support to strengthen ronmental services that would help sub- iecogiiizes oUr coin m11on but differentiated the regulatory and enforcement capac- stitute for these missing markets. A iesponisibilitiesfor working towvard suistaini- ity of client governments, and also for system is already in place in Costa Rica, able developnment.' markets that work for the environment, and work is under way in several other not against it. New solutions must be countries. Such partnerships and sense of commu- found to address complex problems. nity at all levels dre critical if we are to The World Bank is also answering the help build an equitable, sustainable, One of the innovations the strategy pro- challenge to put social and "green" re- and peaceful world. Now, more than motes is about correcting the failure of sponsibility on the corporate agenda. ever, it's important for all of us-both the market to recognize valuable ecosys- Part of the strategy for the future is to individually and collectively-to be- tem services. For example, many of the transform the World Bank into a global liex'e that we can be a force for good. ecosystem services that forests pro- leader on social and environmental re- vide-from timber to climate regulation sponsibility. The Bank will focus on - Kristaliiti Geor$ieva to water supply to recreation- are not being a good citizen for the local envi- accounted for in decisionmaking be- ronment and community we live in; re- JULY 20100-JUNF 2001 * (FY200t) 9 I ' April 1999, the World B.dnks clienitregions>, avwellas -S I ank Group embarked on in Japan, North America, and comprehensive effort to Western Europe (see map). In develop an environment strat- addition, a dedicated Environ- egv to enhance the Bank's ef- ment Strategy Consultation fectiveness in addressing link on the World Bank Web- 5i S | ~~~~~~~~~~~~~environmental challenges inists site provided access to the - w * h e client countries. As part of this progress report, background a - effort, the World Bank sought papers, schedules, updates, o r I d B a n k's to learn more about our part- links to open discussion fo- ners' views about how best to rums, e-mail contacts, and a link environmental protection questionnaire. Between Au- Environ m ent with development assistance; gust 2000 and the end of Janu- Strat gy how they view their environ- ary 2001, this website received S rategy mental partnerships with the nearly 35,000 download re- Bank; and how they view the quests for papers, and more C onsultations '~~Banik's overall effec'tiveness in tban 2,000 people from 98 providing environntental as- countries registered and com- sistance. mented through the site. e - The consu tatio)n The reports of the consultation meetings and outcomes in the process six client regions, North Amer- 7 i In early May 2000, the World ica, Japan, and Western Europe Bank initiated a broad-based can be found on the Environ- consultation on the emerging -nent Departnient ss7ebsite, Environment Strategy, using a along with background pa- progress report and six draft pers, and the text of the Envi- regional environmeint strate- ronrentStrategv, which was gies as thebasis for discussion. submitted to the World Bank The consultation conlsisted of Board of Executive Directors in workshops with clierit and do- July 2001. nor countries, including repre- sentatives of government, civil The impact of the society, the private sector, and IConsultations on the ,rV t academia; a dialogue with sev- eral of our multilateral and bi- strategy lateral partners; meetings with -7 international nongovernmen- The value of the consultations tal organizations (NGOs); and was inestimable. They provid- a broad-based information dis- ed a forum for face-to-face dis- semination and feedback pro- cussions, promoted greater cess through e-mail and the dissemination of information Internet. about the issues, and have led to a better understanding Between May 2000 and June among the participants of our 2001, over 30 formal and infor- mutual concerns. There was a mal meetings or working ses- consensus across the regions sions took place in each of the that the environmental issues 8' j FENVIRONMFNT MAJ 'FRS * '2lH we are confronting worldwide U Support Strategic Environ- Formal and informal consultations on the Environ- are urgent and that this urgen- mental Assessments and ment Strategy were conducted worldwide cy must visibly inform the other in-depth, cross- Eastern work of the Bank and the text sectoral environmental Western Europe' North America_.uoe CnrlAi of its Environment Strategy. analyses early in country- r Aurope Central Asia policy dialogues, so that - In general, most of the consul- the complex, positive and ' * * I tation participants agreed that negative synergies among Middle v environmental objectives development goals andI EastfNorth I East Africa ~~~~~~~~~Acific should be systematically activities may be captured P ' _ Astci linked with development or mitigated. L r th n goals, particularly poverty re- t aribbcanS South Asia_ 1 duction, as the sustainable use U Support increased trans- Saharan of natural resources is funda- parency and accounta- Africa mental to the long-term suc- bility on the part of both applied systematically to disseminating environ- cess of those goals. Participants borrowers and the World help integrate longer-term mental and sustainability requested that the Bank ac- Bank by instituting regu- knowledge and strengthen its lar reporting to external spatial, ecological, and indicators for client coun- social concerns, tries, and by establishing leading position as a global stakeholders, using clear an estalishing an Environmental Perfor- rolemodel,facilitator,andcat- benchmarks or perfor- The World Bank w ill mance Reporting unit alyst, and recognize its respon- mance indicators. sibilit to set high international untry w thmn the Environment capacitv building while Department for the pur- benchmarks for good environ- In direct response to the con- mental practice. In addition, cerns the World Bank team carrying out project-level pose of reporting perfor- some urged the Bank to lobby heard expressed during the environmental assess- mance basc industrial countries to improve consultations, the Environ- ments, strategic enviro- s their own environmental per- ment Strategy emphasizes that nmental assessments,an The Environment Strategy formance and to make larger our environmental challenges in the participatory pro- Consultation-and the Strate- financial commitments to aid must be tackled within the sus- ch as Countiahves gy, itself-is a developing nations in their ef- tainable development frame- such as Country Assis- cess In particular, it does not forts to build up sound envi- work. Development goals and tance Strategies and Po- intend to cut short the global ronmental management. There key areas of assistance are char- verty Reduction Strategy debate under wav on develop- was a general call in the con- acterized by three major objec- Papers. ment directions. The dialogue sultations for the WVorld Bank tives: quality of life, quality of with all of our development to make changes within its growth, and quality of the re- | As part of their analytical own operations in several crit- gional and global commons. work, World Bank staff Strategy will berevisited, eval- ical areas. For example, the The Strategy's action plan has will support the linkages uated, and adjusted. Bank should: committed the Bank to the fol- among local and regional/ lowing implementation activ- global concerns by iden- * Mandate a longer time- ities: tifying the overlaps be- frame for policy analysis, tween environmental planning, and assistance U Environmental analysis goals at the local, regional, programs, so that the long- will occur earlier in the and global levels. term impacts of develop- policy dialogue; cross- ment decisions on the sectoral analysis will be * The World Bank will social and physical en- strengthened; and stra- support greater trans- vironment can be better tegic environmental assess- parency regarding its Moorc of thze Eniroutnteuit Dcpart- reflected in the design of ments and country en- environmental perfor- |imeait, (202) 453-9301, fav ('02) 522- its actions. vironment profiles will be mance by developing and 1735. JULY 2000-JUNE 2001 * (FY200]) 11 I .r IJ t L ;- % ' 0I , I*,I L IIt ! I 11 LIL I LI I1 1t, I IJ. I,) .11 1,1 I !t" LI It1 h 1 I I Ll!. 1 . ! t I . t, 1 ! P I 1! \~~~~~~~~~~~~~~~~~~~~~~~~~~~ t '11, .1tC!' tv1-;,l[ v:ItIIt ' !ti . 1' _11 , J C\ 'I ''t I rr\rtInt,:i:,.ti !t !Strengthening our 'I* 11 '!-CII tlI -LI-'a I,,-l-;,LI, 1 I I.1dinternal incentives ^ ~ ~~~ ~~~~~~~~~~~~~~~~~~~~ r 1 -_ t] ht D- . l I I)J kl t.,., LI ,,". r .I. 1)|l!. I 1, IJ I ^~~ ~ ~ ~~~~~~~~~~~~~~~~ ~ ~~~~~ Js+;1 1 . I I' 1 -X[ t! tLI It I!1 I J1 -t I ,. . I, It I IL I ........................... .|IIL l- < X r~~ ~ ~~~om JStrateg |, LI, "Il i -ot AiIt 11) ,.1 !- tl-, ! I !_ I It5 I-Lt 1 2! [e p a ion to~~~~~~~~~~~~~~"n" ilflhtiid i0L1 LJLI not just the concern ot a small, 2 Preparation to consultations brought togeth- sclizd but ful- | er diverse stakehoiders, in- lv internalized into all Bank I m pIe m en t at Ion formed them about the Bank's activities. The Strategy calls for agenda and objectives, and a client-centered accountabili- strengthened partnerships ty framework, emphasizing around common objectives, that our core responsibilitv is This process does not end with to support sustainable devel- publishing the Strategy paper. opment in our client countries. INTEGRATING ENVIRONMENT INTO Now we have to focuis our en- POVERTY REDUCTION STRATEGY ergy on implementation. Within the Bank, we need to PAPERS (PRSPs) A shift maintain clear lines of respon- A gradual shift Isibility and a consistent set of As ot Septeniber 1999 all low-income coun- incentives that support the Irit,e use pariicipatory processes lo prepare There is no clear dividing line implementation of the Strate- PRSPs to ooiain debt relief or concessiont31 between preparation and im- incueincenthe for lending from the International Developmenit plementation. Even before the gy. This includes incentives for Association. Building on the anilytical base Strategy was completed, the workingacrosssectorsanddis- developed during Strategy preparation, the itleta eaeadeeg ciplines. As an example of ef- Bank has ILinrched a pilot program to assist ntellectual debate and emerg- forts to recognize good zlient couniries in integrating environmental ing strategic priorities started s-ues inmo Iheir PRSPs. to influence project design and performance in this area, the led to new programs. Follow- tirst green awards" were The prograrn takes a three pronged ap- ing the strengthened focus on launched inJune 2001 (see Box, proach: poverty-environment linkag- top of next page). 1. Analytical work in pilot studies defines the es, for example, we initiated a ooverty-en0ironment linkages pilot program to integrate en- "Green awards" are only part 2.Training on er..ironment-poverty issues viromnentintoPoverlyReduc- of a larger set of incentives and cross-sectoral linkages in pilot oijn- tries equip'; decisionmakers itlh the tion Strategy Papers (PRSPs) underpinned by management knoletge ancd analytical sKills to design (see Box, at left). commitment to improve our ellecfvE. ,inierventions environmental performance. 3. Sy-lemriic reviews assess the environ- We also have to recognize that Other elements include sys- mr,enial aspecis and sustainability ol implementing the Strategy will tematic reviews and feedback k PRSPs. be a gradual process. We need to senior management on the The lirst reviewsc indicale considerable van- to align our incentives, skills environmental aspects of ation across countries in the degree of envi- mix, resources, and partner- countrv assistance strategies ronnienlal mainslreamrlng. They identify ships to accelerate the shift (CASs), projects, and pro- M I ~several good practices. and suggest areas, seleral goode Ipractices, and suggest aras from viewing the environment grams; and staff performance for _ u_ure_improvemeni_ as a separate, freestanding con- evaluations linked to key ob- cern to considering it as an in- jectives of the Strategy. v ~~~~~~~~~~~~~~~~~~~~~~~~ENVIRONMENT MATTERS * 2001 tional resources. This was rec- grams. Our Strategy puts spe- GREEN AWARDS REWARD ognizedbytheBank'smanage- cial emphasis on enhancing ENVIRONMENTAL EXCELLENCE ment when it approved budget our performance monitoring increases in two key areas: (1) and reporting framework (see In June 2001, the World Bank awarded the first annual "Green improving the safeguard and Box, below). We will use the In- Awards" to project directors and project teams across the Bank compliance system; and (2) ternet and other means of com- who have been promoting the mainstreaming of environment supporting the mainstreaming munication with key stake- into their operations, of environmental issues into holders to make available re- Awards were given in two categories: country director and task Bank operations, with special ports and information about team. In the country director category, awards were given to focus on CASs, PRSPs, cross- the Bank's environmental per- James W. Adams (Tanzania and Uganda), Olivier Lafourcade sectoral and cross-institution- formance, discuss issues, and (Mexico). Arndrew N. Vorkink (South Central Europe Country al programs, and regional and receive feedback. Unit), and Mark Baird (Indonesia). sub-regional environmental In the task team category, the winners were the Bolivia/Brazil activities. BENCHMARKS FOR Gas Pipeline Project, the MNSID Water Team, the India Ener- gy Team, the Panama Land Administration Project, and the No single public agency has MONITORING BANK Poland Coal Restructuring Project. the legitimacy, credibility, and PERFORMANCE IN financial and organizational Adjusting our skills mental diagnostics. Particular capacitv to influence decisive- STRATEGY J g o s effort will go to safeguards ly all major development is- IMPLEMENTATION Environmental issues are in- training to familiarize Bank sues alone. Partnerships with herentlv cross-sectoral. The staff and managers with the other development institu- a Country diagnostic stud- need to integrate work on en- objectives and rationale of safe- _ ons, civil societ}, and the pri- environmental priorities vironment with otlher sectors is guard policies in order to im- vate sector can be important and management capac- a kev theme of the Strategy. prove compliance and de- contributorstocommonobjec- ity to inform CASs and The increasing focus on cross- velopment impact. tives. We will continue our PRSPs in 5-15 priority seinctreasingworkan th shift in lopmentimpact constructive partnerships in countries annually. Level sectoral work and the snirt in emphasis from project-level Integrating environmental as- the framework of the Global of environmental main- pe,s ito outrvandsecorEnvironment Facility (GEF), streaming in CASs in- safegUards toward integrated pects into country and sector proved. portfolio-level risk assessment programs and projects, and the Multilateral Fund for the * Targeted environmental and quality enhancement re- I shifting accountability for en- Montreal Protocol (MFMP), input (analytical work and quires a gradlual shift in Staff { vironmental performance be- the Prototvpe Carbon Fund training) in 5-15 priority skills. We also need to prepare yond the environment sector, (PCF), and others to help im- PRSP countries annually. to adjust to a changing global require a cultural and institu- plement major international * Structured learning on SEAs based on 1 0-20 context, new development is- tional change. We will support conventions and facilitate fi- SEAs carried out annual- sues, and to the Bank's chalng-, this shift by joint appointments nancial transfers to client coun- y to inform sector ing lending profile, : and work programs with oth- tries. We are engaged in projects and programs. i er sectors, staff rotation, sec- numerous other partnerships Level of mainstreaming in Training will be an important ondments with other sectors in a range of areas. During the key sectors improved. part of adjusting ourr skills. A partner institutions, and coming years, we will system- * Systematic client training comPrehensive learning pro- strategic human resource man- atically review and align our delivering 20,000-25,000 comprehensive learning pro- agement. partnerships to support the ef- 'participant training days" gram is being developed that gm. p annually. will focus on the prioritv areas fective implementation of the * Improved safeguard com- identified by the Strategy: pov- Realigning our Strategy. pliance indicators. erty-environment linkages, * Ninely percent of all op- vulnerbiitytoenvromenalresources and erational Bank staff and vulnerbility toenvironmental rsJcCa Monitoring progress managers trained in en- change, environmental policy partnerships vironmental safeguards and compliance, environmen- Our ultimate goals are long by 2006. tal health, and natural resoturce We are realigning budget allo- term. To ensure that we are on management. New learning cations in response to chang- the right track, we need to set Thi a.c was prepared by Magda activities will focus on strate- ing work program priorities. benchmarks, monitor pro- ELozei of tlhC Eni-ironneoit Depart- gic environmental assessment . But achieving the Strategy's gress, learn from successes and menit, (202) 473-3986,fiax (202) 522- (SEA) and country environ- objectives also requires addi- failures, and adjust our pro- 1735. TU'LX 200 IL(NE 2w0 * (0V2001) 13 P f.- overty is not just a mat- base affects livelihoods, partic- -X - - - - L ter of low income. It is ularly in rural areas. The health also a question of the of poor households is heavily poor having few economic op- influenced by access to water portunities, of insecurity in the and sanitation, as well as ex- face of financial arnd other posure to indoor and outdoor risks, and of lack of voice or air pollution. Poor households empowerment. The World are often the most exposed to .,* _ - Z - 0 Bank Environment Strategy natural disaster risks, partly lEG cflsing ................. on employs this broader concept linked to the fragility of near- U -UWOC -- *J :. ~ EU of poverty in order to high- by ecological systems. Lack of P r ty and light, in addition to the ques- property rights and access to overt - - . ation of empowerment, three information limits the ability of E i ron m en.tal - broad linkages between pover- the poor to participate in deci- E71 ronrn Vm ntal ty and the environment: sions affecting their welfare. * - - - health, livelihoods, and vul- i. i n ks nerability to natural disasters. This broader notion of pover- ty and of poverty-environment Environment and poverty are links is beginning to be em- linked by a multiplicity of po- ployed by World Bank clients tential pathways (see Figure, in the preparation of Poverty below). While these linkages Reduction Strategy Papers are in reality multi-dimension- (PRSPs). Initially required as a al and involve feedback mech- condition for debt relief, the anisms, the main tendencies PRSP will become a key docu- can be seen in this Figure. The ment in determining Bank as- quality of the natural resource sistance to all low-income Environmental dimensions of poverty Examples of environmental determinants Natural resource of poverty Elements of . _"'F_Rural and urban well-being Access to water r ivelihoods and sanitation Opportunity -Air quality Health Ecological fragility _f _ _-- \^ Vulnerability to | ( Security ) Likelihood of - __ anve - _ natural disasters Property rights - Participation in d I- -- - - - -\ /- de.isiona.ing i Empowerment Access to environ- mental information w 1 4 w j ENVIRONMENT MATTERS * 2001 SOURCEBOOK FOR POVERTY REDUCTION and other exposure to agro-in- STRATEGY PAPERS (PRSPs) dustrial chemicals and waste. Poverty Reduction Strategy Papers provide the basis for assistance from the Bank and the IMF Worldwide, an estimated 3 and for debt relief under the Highly Indebted Poor Country (HIPC) initiative. PRSPs are intended million people in developing to be country-driven, comprehensive in scope, partnership-oriented, and participatory. countries die every year from The PRSP Sourcebook was designed to assist countries to develop and strengthen their poverty water-related diseases caused reduction strategies. It is meant to be used selectively as a resource to provide information about bv exposure to microbiological possible approaches. The book covers core techniques, including poverty measurement and analysis, cross-cutting issues such as gender and environment, and a full range of macroeco- pathogens resulting from inad- nomic and sectoral issues. equate sanitation and waste The Environment chapter begins with an overview of the ways in which environmental conditions disposal, inadequate water can contribute to different aspects of poverty. It then outlines an approach to analyzing these links supply for personal hygiene, in order to define priorities both between sectors and within the environmental domain-this is exposure to unsafe drinking broken down into understanding the links, choosing targets for improvement, choosing the most e re to uafe drnk effective public action, and monitoring and evaluation of the actions implemented. Next, the chapter water, and bacteriological con- summarizes an approach to "mainstreaming" of environment in PRSPs that has been developed tamination through a variety within the World Bank. It also provides summary lessons from a systematic review of 25 interim of other water uses, such as and full PRSPs. To field test many of the ideas in the environment chapter, two workshops on "Mainstreaming Environment in PRSPs" were held in Nairobi and Johannesburg in February and cooking and bathing. The ma- March 2001. These workshops, organized in partnership with DFID, aimed to contribute to inte- jority of fatalities are children grating environmental issues and opportunities in PRSPs and their underlying processes. At the under age 5. Water-related dis- Johannesburg meeting, participants came from Lesotho, Malawi, Mozambique. and Zambia; at eases impose an especially the Nairobi meeting, participants came from Ethiopia, Kenya, Tanzania, and Uganda. Donors from the EU and the Netherlands were also represented. Similar workshops are planned for West large health burden in the Af- Africa. rica, Asia, and Pacific regions. In Europe and Central Asia, support for the PRSP process was provided to the governments of In India alone, nearly 1 million Albania, Azerbaijan, and Georgia, with work upcoming in Bosnia and Herzogovina, Tajikistan, people die annually as a result and the Kyrgyz Republic. Two successful workshops were held in Albania and Azerbaijan to of water-related diseases. discuss the macroeconomic and sectoral linkages between the main components of the PRSP strategy and the environment. As a result, the environment is being mainstreamed in the PRSP process, with working groups taking more account of the important linkages. This work was sup- More than half of the world's ported by grants from DFID. In Georgia, the regional environment unit is working closely with the households use unprocessed government on PRSP preparation, with the assistance of Austrian trust funds. solid fuels, particularly biom- ass (wood, crop residues, and (IDA) countries as of July 2002 risks to the total burden of dis- include urban (outdoor) air dung) for cooking and heating, (see Box, above). ease is 10 times larger in poor pollution and occupational often in inefficient Stoves with- countries than it is in rich coun- Environmental tries (see Figutre, at right). The environmental contribution to the burden of disease is highest in developing countries health and poverty Environmental health risks fall O- 300 Recent estimates suggest that into two broad categories. Tra- r ditional hazards, related to .g n 200- premature death and illness , 7 povertv and lack of develop- E 00 due to major environmental ,- Or ioo,> ment, include lack of safe wa- health risks account for one . ter, inadeqluate sanitation and * _ fifth of the total burden of dis- t,< 0i waste disposal, indoor air pol- 0 Developing Developed lution, and vector-borne dis- countries countries comparable to malnutrition eases such as malaria. These and larger than any other pre- risks affect developing coun- * Other causes 13 Environmental factors ventable risk factors and tries the most. Modern hazards Note: Disability-Adjusted Life Years (DALYs) are a measure of the burden of dis- ease. They reflect the total amount of healthy life lost, to all causes, whether groups of disease causes. The caused by development with- from premature mortality or from some degree of disability during a period of contribution of environmental out environmental safeguards time. JULY 20OO-IUNE 2i)C1 * (FY2001 15 responsible for about 800,000 marily involved in the collec- wood appears to harm many deaths annually. tion of fuel, fodder, and water women's health. Depending on the availability Natural resources of biomass resources, collec- Poverty and natural . . . | ~~tion of fuel and fodder may. and the livelihoods take anywhere from 2 to 9 disasters of poor households hours. In Lombok, Indonesia, Poor people are also dispropor- and in some areas of Kenya, for tionately vulnerable to natural Research shows that links be- example, women spend 7 disasters, because they tend to tween the natural environment hours each day on cooking and lack access to secure housing and thle livelihoods of the poor on collecting dead wood or ag- and to live on marginal land can be very strong, although ricultural residues as fuel. Be- more prone to the effects of the precise nature and direc- cause of deforestation, they droughts, floods, or landslides. tion of the links can vary sub- may have to walk longer dis- With few savings, the poor also TR -.stantially from case to case. tances and spend more time are much more vulnerable to .^ .&3 Poor rural households often and energy to collect fuel- consumption shortfalls in .. derive a significant share of wood. This reduces time spent times of crisis. -'D WL>';n tr. . their incomes from natural re- on income-generating activi- sources. A study of 29 villages ties, crop production, and The vulnerability of the poor -i in southern Zimbabwe shows household and child-rearing to natural disasters is com- that environmental resources responsibilities. In addition, pounded by the generally - account for more than 30 per- carrying heavy loads of fuel- weak capacity of government cent of average total household ' Bhutan income, and the poorer the Zimbabwe - Poorer households obtain a household, the greater the greater share of their income from environ- out proper ventilation. The share of income from environ- mental resources outcome is that people-main- mental resources (see Figure, at l-_ ly poor women and children in right). However, even though 90 rural areas and urban slums- the poor are more resource de- are exposed to high levels of pendent, they generally use 80 indoor air pollution. It is esti- less of these resources than the 70 mated that nearlv 2 million better-off. The poorest house- 60n children and women die every holds use three to four times 6 - - -- year in developing countries as less in quantity terms than the 50 s _ a result. About half of these richest. This illustrates two key X- deaths occur in India and Chi- points: first, that the poorest i 40 na. are most vulnerable to re- 30 source degradation in relative - - Vector-borne diseases are af- terms; but second, that pres- fected by a range of environ- sure on nattural resources will 10 mental conditions and factors, not automatically be alleviat- 0_K E including inadequate drainage ed when income rises. Ql Q2 Q3 Q4 Q5 from drinking water and from Income quintile irrigation; polluted and stand- Poor rural women in develop- *Total environmental income Total net gifts/transfers aTotal own produced goods *Total cash income ing water; clogged storm ing countries tend to be dispro- (excluding environmental cash income) drains; floods; and open sew- |portionately affected by theI drainsfloos;andopenew-prtionately affecteSource: Cavendish, W. 1998. "The Complexity of the Commons: Environmental ers and certain types of sanita- degradation of natural resourc-| Resource Demands in Rural Zimbabwe." WPS/99-8, May 1998. Oxford Univer- tion. In Africa alone, malaria is es because they tend to be pri- sity: Centre for the Study of African Economies (processed). 16 ENVIRONMENT MATTERS * 2000 U - Enhancing livelihoods by ., protecting the long-run productivity of natural resources and ecosystems. This will involve reform- ing property rights; in- - ~~~~~~~~creasing the scope of community-driven development programs and community forest management; assisting farmers to invest in the ti - ~quality of their land; piloting new mechanisms such as payments for ecological services; and reducing the level of distortions in prices and incentives affecting re- source management deci- sions. U Reducing the risks of natural disasters by in- r f creasing analytical work; identifying natural re- source investments (such as upland forest planting) that can reduce the inci- dence and sevTerity of I) 1natural disasters; improving 'E~~~~~~~~~~~~~~~~ weather forecasting; and providing information to poor households and com- agencies to predict and re- and use them come under and equipping our clients to munities on the risks they spond to disasters and by the threat. This can lead to con- deal with poverty-environ- face. lack of social safety nets that flicts, particularly over envi- ment links as they prepare would protect the incomes and ronmental resources such as PRSPs. Operational responses consumption of the poor dur- water and fisheries. at the level of projects and non- ing and after disasters. In the lending services will include: Philippines, for example, the Looking forward This article wcas prepared by Kirk extreme weather associatedT extreme weather associated U~~~~~~~ Identifying cost-effective H-aw iilto i of Mlet En ciroin went Be- with El Niho caused a greater The Environment Strategy out- par/wtent, (202) 473-2053 itar (20) overall increase in poverty linesabroadapproachtodeal- measures to reduce envi- 522-1735. Julia Butckiill of Europ)e than the financial crisis. The El ing with the challenges of ronmental health risks an7d Socintill Aitsttia's ble Dccoto- Nino shock was regressive, in poverty and environment. Part through a range of sector tcit Sector Unit, (202) 473-5323. that it increased inequality. of the response entails empha- investments, including fax (202) 522-1164, anld Jani Bojo of sizing poverty-environment water and sanitation, thte Africa Techlinical Families: Eoci- -oninienit andit Sociail Development When ecosystems collapse, the links in analytical work and in energy, transport, agri- Unitit (202) 473-4429.fax (202) 473- social systems built to manage I Country Assistance Strategies, culture, and health. 8185. JULY 1999-JUNE 200) * (FY2000) 17 0 _ _ l~~~~~~~~~~~~~~~~~~~~ ,-~~~~~~~1lll 0 tlll - t!llv l .-II! F. .1 J11 _ pg1t !pp[lt 1 . , the World Bank's Environment arid and semi-arid areas, espe- jF Strategy. Developing countries ciallv in Sub-Saharan Africa. are likely to be most t]hreatened Rising sea levels could displace _1.= *_ by global environmental im- millions of people from small- pacts since a larger sh are of the - , _ . . ~~~~~~~~~~~~~~~~~island states such as the population is dependent on _laiS pOpUlatlOn 1S depe:ndent on ~~~~~~~Maldives and from low-lying natural resources for their live- lihoods, and because they are delta areas of Bangladesh, Chi- ,^^ */ * less able to afford mitigation na, and Egypt, while increas- P rotecting and adaptation mea-sures. Cli- ing temperatures could * ~ * * I mate change is projected to increase the incidence of vec- - a t hi e G lob I 0 al cause significant increases in tor-borne diseases such as ma- * C o m m o n s famine and hunger in many of laria and dengue fever. THREATS TO THE GLOBAL ENVIRONMENT While the task n,iay seem monumental, protecting the global commons-climale, ecosystems, the diversity of life, shared water resources-must be at the forefront of sustainable de- _velopmenl. Water is essential for the sustenance and health of Li,, _ riumankind and indeed all species. Coastal and marine eco- systems include some of the most diverse and productive hab- itals on Earth wr,ite marine fisheries are an important part of Ihe world s food supply. Agriculture, forestry, water resource mnanagement, and human settlement patterns depend on a sta- ble climate Ecological processes maintain soil productivity, re- cycle nutrients. cleanse air and water, and regulate climate cycles. Al the genetic level, diversity found in natural life forms supports Ihe treeding programs necessary to protect and im- prove culiivated plants and domesticated animals, and thus help. safeguard lood security. Yet, the global commons are being degraded at an alarming rate: * Eleven percerit of the Earth's vegetated surface (1.2 billion hectares) has been significantly degraded by human activi- ty over the past 45 years, affecting more than 900 million people in 100 countries. U M iore than one fifth of the world's tropical forests have been cleared since 1960. Globally. 12 million to 15 million hect- ares of forest are lost every year, in addition to substantial areas of grasslands and wetlands. . The Earth is losing species at a rate higher than at any time in its history. * The world's oceans are threatened by nutrient and heavy metal polluiion, severe overfishing, and disease. Coral reefs are being degraded at an unprecedented rate-as much as 40 percent of the world's reefs will be lost in the next 10 to 20 years at current rates. * Accordinoa to the Intergovernmental Panel on Climate - Change. ite Earth's average surface temperature is expect- ed to rise by between 1.4 and 5.8 degrees C during the next 1 00 years, compared with just over 0.6 degrees during the last 100 years. Sea levels, which have risen by 10 to 20 centlmeters since 1900, could rise by between 8 and 88 centimeters during the next 100 years. ENVIRONMENT MATTERS * 2001 Genetic varieties, species, and tives through international on overlaps vitl regionail and mechanisms to compen- plant and animal communities conventions and their associat- global beniefits. There are sate countries for the have critical uses as food, ed protocols, including the many areas of potential incremental costs they sources of new crop varieties, J conventions on climate overlap between local and incur to protect the global commodities, medicines, polli- change, stratospheric ozone global environmental commons. In this regard, nators, soil formers, and mod- protection, and biodiversity. In benefits. For example, assistance with the phase- erators of climate and theearlvl990s,theWorldBank replacing low-quality out of persistent organic hydrology. Biodiversity loss beganasystematicprogramto biomass fuels with pollutants (POPs) will be can thus undermine agricul- assist client countries meet re- modern and renewable an important new area in tural productivitv both now gionalandglobalenvironmen- energy sources in rural which we can put the and in the future. Further, eco- tal objectives. The initial role and peri-urban house- lessons learned under the svstems provide important was as an implementing agen- holds reduces indoor air MFMP program to work benefits such as water storage cy for two global financing pollution, mitigates res- (see Box, top of page 20). and purification, flood and mechanisms: the Multilateral piratory diseases, and storm protection, and nutrient Fund for the Montreal Proto- reduces greenhouse gas 5. Stinulate markets for global storm proe n acol (MFMP) and the Global em.issions enirmtentapbcgo retention. In addition, many Environment Facility (GEE). Wenwlrolntal poic goods people consider biodiversity We will help our client Since then, the Bank has mul- and ecosystems as having in- tiplied and di ifid its ni- 3. Addrcss thlc vulnerability countries develop and trinsic value for moral, reli- a. .a.erhps nrod eal aptationi niceds of benefit from trade in gious,~~ ~ orclua esn.tatives, partnerships, projects, gious, or cultural reasons. and funding sources in an ef- developing conntitries. Poor environmentally credible These various values have fort to better help client coun- countries suffer dispro- goods and services, such been recognized in the Con- tries meet the objectives of the portionately from the as greenhouse gas emis- vention on Biological Diversi- global conventions. degradation of the global sion reductions, and sus- ty, as well as the more targeted commons and from its tainably harvested and Ramsar Convention on Wet- UndertheBank'sEnvironment consequences, such as independently verified lands. Strategy, the Bank's global en- climate change. The Bank natural resources. vironmental interventions will will help assess the long- The Bank's role build on five principles: term impacts of climate Projects and change on the vulner- There has been a slow but 1. Focuis oni the positive ability of people in client programs growing realization that global linkages betcweeni povZerty countries. These assess- environmental concerns, such reduction anid environncntol ments will contribute to O t as long-term climate change protectiotn. Manv interven- broader povertv reduction has developed a sizable port- and biodiversity loss, should tions designed to reduce strategies. folio that directly addresses be addressed as an extension poverty by improving global environmental con- of the local, national, and re- local environmental quali- 4. Facilitate transfer of finona- cerns. Since 1991, the Bank has gional environmental issues tvand sustainable natural cinl resouirces to clientf committed more than 51.5 bil- that underpin sustainable de- I resource management also cont; tries to lkelp then; mleet lion dollars in combined GEF velopment. In that light, the provide regional and glo- the costs of generating global and MFMP funding, with as- Bank has found that global en- bal benefits. For example, environmewntal beniefits not sociated funding of $5 billion vironmental interventions can community-based forest tiatclich byl intional beiefits. for climate change mitigation, only be effective if such pro- management projects can In cases where actions biodiversity conservation, the grams take into account the support sustainable liveli- designed to address re- phaseout of ozone-depleting development needs, local pri- hoods while reducing gional and globalconcerns substances (see Box, bottom of orities, and constraints of com- forest loss and preserving are not in the short- and page 2 see and botton of munities and countries. biodiversity and carbon medium-term interests of page 20), and protection of in- sinks. developing countries, the ternational waters. In the cli- The Bank is committed to as- Bank will seek to engage mate change area, the World sistingclientcountriesaddress 2. Focuts first onl local enlvi- the GEF, the MFMP, or Bank/GEF portfolio today in- global environmental objec- ron1mnenltal benefits, and build other special financing cludes 62 projects, for which JULY 2000-JUNE 201( * (FX2001) 19 - ~ ~ ~ ~~~~~~~~~~~~~~~~ ~~~ ~~~~~~~~~~~~~ . ,-.. C. -.. ,' . .- -- - J ' - - GLOBAL ACTION UNDER THE STOCKHOLM The GEF and MFMP programs CONVENTIO ON PERSISTENTORGANCPOLLUTANTScomplement a significantly CONVENTION ON PERSISTENT ORGANIC POLLUTANTS I larger share of Bank lending Persistent Organic Pollutants (POPs) are considered to be among the most dangerous pollutants targeted toward the conserva- released into the environment by human activity. They are highly toxic, and can cause death, tion and sustainable use of disease, and birth defects, among both humans and wildlife. Once released into the environment, biodiversity, the sustainable they remain intact for exceptionally long periods of time and are transported by air and water, use of forests, the management resulting in widespread distribution across the globe. They bioaccumulate in the food chain, and of fresh and marine water re- can lead to high concentrations in fish, predatory birds, mammals, and humans. sources, and the halting of land An international treaty to control POPs was concluded in Stockholm in May 2001. Its goal is to degradation. The broader proteci human healtl and the environment from the generation, use, and release of POPs. The countrv and sector dialogue Stockholm Convention includes comprehensive provisions to address the risks posed by an ii- and consequent lendin ndi- tial group of 12 POPs (aldrin, chlordane, chlorinated dioxins and furans, DDT, dieldrin, endrin q g heptachlor. hexachlorobenzene, mirex, polychlorinated biphenyls (PCBs), and toxaphene) usedc rectly support such concerns. in agriculture, disease vector control, industrial processes and created as unintentional byprod- For example, lending for ener- ucts through some combustion processes. Other chemicals may be added to the list as scientific gy pricing reform creates in- knowledge develops. centives for adoption of All parties to tne Convention commit to developing alternatives to the use of POPs and to devel- climate-friendly technologies. oping action plans to reduce or eliminate the release of POPs to the environment. The World Assistance for agricultural in- Bank is assisting client countries to prepare for the implementation of the the Stockholm Conven- tensification or rural nonfarm tion through its Montreal Protocol/POPs Unit. Countries are presently in the early stages of devel- employment often serves to oping capacity to meet their future obligations under the Convention. Under a Canadian POPs reduce pressures on natural Trust Fund of CDN$ 20 million established at the World Bank and in its role as an implementing agency of the GEF (named as the interim financial mechanism under the convention), the Bank is habitats and biodiversity. Ca- working with countries in all regions to help them better understand the Convention's obligations pacity building for manage- and the present status of POPs within their countries. The Bank is also assisting countries in ment of local environmental identifying initial capacity-building and enabling activities to help address identified issues. issues will help overcome bar- riers to addressing global con- I .... ~~~~~~~~~~~~~~cerns. These impacts need to be $6.2 billion has been mobi- agree and act on regional en- sins, shared lakes, regional better understood and evalu- lized, including $730 million vironmental priorities, thus seas, and shared groundwater ated. from the GEF and the balance supporting the development aquifers. GEF resources have from the World Bank Group, and implementation of region- also been successful in cata- Mainstreaming donors, private investors, and al conventions or agreements lyzing private sector financing government counterparts. for the management of a num- for environmental improve- While many GEF operations ber of international river ba- ments. were largely independent from The GEF program has cata- l lyzed funding for local action A DECADE OF OZONE PROTECTION AT THE WORLD BANK in support of global environ- Signed in 1987. the Monireal Protocol tor the Proteclion of the Ozone Layer clitereniiaies rre- mental objectives, effectively tween large consuming countries oi ozone-depleting substances 'ODSi and developing coun engaged NGOs and other ele- tries with consumption under 0.3 kg per capiTa. The latter group ol countries iArilcle 5 countriPe,z ments of civil society in the are allowed more time to phase out ODS. In addition. Arlicle S counri,es have received lranic3i assistance to meet the incremental costs ot converting lo ozone-friendly technologies ir,rougr, country dialogue on environ- the Multilateral Fund IMLFI for the Implemenlation of the Montreal Protocol mental management, and P1- In its t0 years working undier the MLF mechanism,. he Bank has channeled $291 million in orant toted innovative approaches to funding through 350 MLF-approved projects in over 20 Article 5 countries. The Bank was ire first financing biodiversity conser- agency to tackle the supply side ot ODS. Since introclucing these types of projects the Bank ha, vation and renewable energy signed agreements with the two largest Article 5 CFC producers and the Russian Federatliro- constituting 70 percent of gloDal production by Article 5 countries and Russia Russia ha3 a-s ol development. With access to December 2000, ended all CFC production. an,: China and Inaia are decreasing produc lion an- GEF resources, the Bank has nually with final closure by 2009. CompleTed projects have resulted in the phaseoul of over til O r0j also been able to help riparian tons of ozone-depleting potential-74 percent of the total ozone-depletirig polential has been phased out under ihe MLF to date. countries and stakeholders 20 ENVIRONMENT MATTERS * 2000) GEF and MFMP commitments, fiscal 1992-2000 - $1I,400 ._ .- 4- GEF commitments $1,200 C $100 MFMPcommitments E$1,000 * E2 $800 u $600 - e $400 - $200 - $0 _,,._ 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fiscal year Note: Commitment amounts are based on World Bank management approvals. _ World Bank operations during With a few notable exceptions, -i the "pilot" phase of the GEF, CASs did not acknowledge a _~, f _. there has been a steady in- role for the Bank in helping - ; -: t ,,,, , . crease in the integration of GEF countries address their respon- - and Bank operations. The pro- sibilities under global environ- portion of Bank-GEF projects mental conventions. with directly associated IDA or IBRD funding increased Partnerships steadily from 23 percent in fis- cal 1995 to 65 percent in fiscal The Bank has entered into nu- Poison dart frogs are native to the tropical rainforests of Nicaragua, Costa Rica, 2000. In the energy sector, en- merous formal and informal and Panama. ergy efficiency and renewable partnerships to address issues energy operations today com- of regional and global impor- sponsored World Commission worldwide and the effect of prise a huge share of the Bank's tance that cannot be addressed on Dams (WCD), government, this depletion on many of the portfolio in many client coun- at the country level. These NGO, and industry represen- world's poorest people. Its goal tries. partnerships have provided an tatives have laid out key con- is to significantly reduce the important adjunct to the tradi- siderations governing the rate of loss and degradation of Continued progress in incor- tional Bank-government rela- development of dams. We forests of all types. Other part- porating global environmental tionship by building on the have also helped catalyze new nerships have engaged civil objectives at the project level emergence of a vocal civil so- market mechanisms, as in the society in implementing depends on mainstreaming the ciety and the increasing impor- case of the Prototype Carbon projects with significant global environment and its global di- tance of private sector invest- Fund (PCF), which demon- environmental benefits. The mension in the country dia- ments. strates the feasibility of trading Critical EcosystemPartnership logue. Progress on this front greenhouse gas emission re- Fund, for example, provides has been mixed. The analysis Through the CEO Forum on ductions under the emerging of CASs completed in fiscal Forests,theBankhassoughtto regulatory framework of the age ecosystem hotspots 1999 showed that a limited apply the process of indepen- Kyoto Protocol's Clean Devel- around the world. number addressed local envi- dent, transparent multistake- opment Mechanism (CDM). ronmental issues of global con- holder verification of compli- The World Bank/ WWF Forest cern and that GEF activities, ance with forestry manage- Alliance was formed in 1998 as This; article wtas prepar-ed by Toddt although mostly identified, ment standards that protect a result of both organizations' JoliisOIl of the Eivirue llt Depart- were only in part linked stra- the livelihoods of the poor. deep concern about the con- miecalt, (202) 458-2435, fax (202) 522- tegically to the CAS objectives. | Under the IUCN/World Bank- tinuing depletion of forests 2130. JULY 1999-JUNE 2000 * (FY2000) 21 If. T he World Bank's envi- Resettlement and Inldigetotus ronmental agenda has Peoples, were among the first evolved gradually, to be established, in the earlv ,.- n . - - moving from a "do no harm" 1980s. Together erwith the 1989 focus in the 1980s to a more EiionmentalAssessient (EA) l __- ~~~~~~~~~~~~~~~comprehensive, proactive Policy, they have helped the T he Safeguard agenda aimed at "promoting good" today. The Bank has Bank and its clients incorpo- he Saf eguar designated 10 key environ- rate environmental and social P0 I i c i es-. at mental and social "safeguard aspects of proposed invest- policies," and the entire project ments into the decisionmaking * the C ore of the pipeline is subject to systemat- process. Since 1989, policies ._~ ic screening as a standard re- have been added to further E n v i ro n mn en t quirement of project prepara- protect specific aspects of the Environ m ent =.- . -tion and approval. Safeguard environment and physical cul- Strategy policies and procedures pro- tural property. This reflects a Strategy Pvide guidelines for staff in continual broadening of the identifying and preparing pro- safeguard approach, from an A REGIONAL PERSPECTIVE grams and projects. Ihey help evaluation of potential im- _ _ ~~~~~~~~~~~~~~~integrate environmental and ON SAFEGUARDS- i e a pacts using EA, to inclusion of social concerns into design and _THE AFRICA REGION implementation of Bank-sup- complementary instruments > 2 _ A few countries in Sub-Saharanl Africa have ported activities and promote such as resettlement plans, sirong capacities In environnienial assessmenl sustainable developmnent ob- m enous peoples' develop- Mlost, howvever, do not, especially in lerms ot jectives in client countries. ment plans, and pest man- eniorcenent and compliance This provides us agement plans. a challenge and opportunity io eniphasize ca- pacity building and lo spend more time work- Thesafeguardpoliciescomple- ing with task teams and borrowers. Even with ment international and region- The coverage and quality of some degree of technical and human capaci- al environmental agreements application of Bank safeguard ty, environmental units in African countries have to convince heavyweight public decisionmak- signedby client countries, rel- policies at aproject levelhave . * >^ 3 ers such as Ministries of Finance or Planning, evant national and local laws gradually improved over the a situation which has its parallels inside the and procedures, and national past two decades. Our clients, Bank. requirements for environmen- staff, and partners have be- In spite of these challenges, noticeable tal assessment. Although not come better at identifving, progress has been made recently in areas like written as an integrated set of early on investments with po- privatization where environmental audits are documents, the Ban:k's safe- more and more frequent. The Africa Region is *. particularly proud of the praise it received for gur poice shr ope entvl i gomnificant scadverse P good safeguard practice on the Regional Trae mentaryoc a n environmental and social im- oProject, an innovative field. lying principles. They have pacts. The experience of work- .become internationally recog- ing on Bank projects often has More efforts are needed to strengthen EA ca- nized references contributed to strengthening pacity and create, in most cases, social safe- local capacity to carry out EAs guard capacity. Above and beyond the recurrent al implemet carroutAl k- issue of getting the right resources to work more Evolution and and implement environmental effectively, what is most important is to move management plans. Public from a compliance mentality to a pro-active coverage of consultation and disclosure mode by focusing on the safeguards' purpose, - cn such as protecting vulnerable groups and the safeguard policiaes mechanisms have fostered de- environment from unintended impacts of Bank- bate about alternative devel- funded projects in Africa and ideally making our The Bank's social safeguard opment options and impacts _- s X | ~projects more sustainable for the long run.eBa s oalafgrd pmnotisadipcs projects more sustainable for the long run. policies, namely Inzvolntariry from proposed programs, and Up:,9 -- IF ,. i ENVIRONMENT MATTERS * 2001 - r , i--, Bank will continue to assist Coming up many countries in introducing environmental policies and Preparation of the Bank's En- , i; procedures. vironment Strategy provided an opportunity to examine ._ icreaiscd einliasis oii supervi- wavs to increase safeguard sion. Bank reviews indicate policy effectiveness. Efforts are that w\;hereas environmental focusing on: and social safeguard policies * Mainstreaming the inte- are often successfully used grated safeguard policy during project design and approach, notably through - Indonesia preparation, problems can oc- use of an Integrated Safe- cur in implementation of guard Data Sheet helped communities to better ed and effectivelv used in these agreed mitigation, monitoring, * Reaching out to bor- helped and institutional strengthening rowers, other financiers, benefit from development ac- settings. The principles of con- actions. This requires careful consultants, and civil tivities. sultation and disclosure of in- evaluation of client countries' society through infor- formation must be applied commitment, access to re- mation and training halalenges for routinelv. sources, and skills needed to programs in association improvement fttd undertake agreed actions. with the World Bank Decvelopmient otSintcgrated snfe- Institute Early evaluation. A 1996 reviewAT gyuard systemll. Treatment and Greater cast ....'i. lncreas- * Strengthening borrowers' by the Bank's Operations Eval- implementation of safeguard ing costs of compliance with policies and institutional uation Department (OED) policies as an integrated safeguard policies have be- capacity found that EAs in many "suite" is now accomplished come a concern for the Bank * Expanding the use of projects subject to full environ- through a "parliament" of and its clients. The most effec- Strategic Environmental mental assessment (category practitioners in the Bank: the tive way to reduce costs is to Assessment (SEA) as a tool A) did not adequately consid- Safeguard Management and identify issues at the earliest for "upstreaming" envi- er alternative designs, or start- Review Team (SMART), which phase of program or project ronmental and social ed too late to adequately includes all regional safeguard development and fully inte- safeguards issues into influence decisionmaking. policies coordinators and poli- grate safeguard studies into development policy, plan- Similar problems throughoutdelomnpliypa- t cv specialists. Its secretariat is the planning, review, and de- ning, and investment provided by the Qualitv Assur- g P processes use of EAs at the strategic I H e level. ance and Compliance Unit * Harmonizing environ- (QACU), which reports to the E sxpand ,7ed coordination eith part- mental assessment princi- Vice-Presidency for Environ- uiers. Use of EA and other in- ples among international Creased .ilempasisng poicy mentally and Socially Sustain- struments can be improved by development financiers. creased emphasis on policy v ' expanding cooperation with and programmatic lending, able Development (ESSD). other international financial use of innovative instruments institutions, donors, export such as Adaptable Program Strengilicn nig institutiolnal credit agencies, and the priate Loans (APLs) and Learning framnewuorks. Implementing sector. Coordinated approach- This article 'ins pre)pared byl Jean1 and Innovation Loans (LILs), safeguard policies in projects es to safeguard policies at the F.i . 1 Merrier, (202) 473-5565, of the and expansion of Community depends on the regulatorv and institutional andD/aor projQect Enirn oniet parmn' Quality and expansion of Community ~ ~ ~ ~ ~ nsituioalan/o pojctAssurianice andt Comiipliantce Unit,fiax Driven Development (CDD), incentive framework estab- level helps to avoid conflicts (202)4770565 pose challenges for safeguard lished by client country envi- and improves project develop- Safegltardis ebs8iteo- policies, xvhich must be adopt- ronmental legislation. The ment. stitlutioual/mlanrl Wls/o01elnalnltal.Isf JULY 2000-JUNE 2001 * (FY2001) 23 w~ ~~~______ - rF - Africa Region = . Mauritatt- Cpe Verde ~"~ Soma ; >~~~~~~~~Smai Guinea-Bissau X TeGambia Cote d'lvoire I I Te Ghan-1 ~enya/ Equatorial Guinea- C 5oo Tome and- i ? .';. - - --: --Seychelles f Prncipe -Comoros Gaban - Cmao Mauritius Nan id 5MiW4a6, MiAodagascar 5:4-h' \ Mozambique Afr4u s, ,-Swaziland IBRD 3-567 OCTOBER 2sO1 -Lesotho -- 1. ,,. * ~ ~ ~ ~ ~ ~~ _ n **v ,-_,. I n Africa, perhaps more than in any other terized by high rates of soil erosion and deforestation, as well as declining rangelands, wetlands, and fish and wildlife popu- region, the World Bank's mission to lations. Climate variations, already a serious threat to liveli- fight poverty is inescapably linked with hoods and economic development in much of the region, are likely to be further aggravated by climate change within the environmental protection and improved management of re- netfwdcesEviom tadgrainislng ih next few decades. ]Environmental degradation is-along with newable natural resources. In both rural and urban settings, population growth, political conflicts, and the HIV-AIDS cri- the poor are the most affected by the loss of natural resources sis-one of the major factors threatening the fragile progress in and the deterioration of environmental services. They are also economic, social, and political development that many African at the greatest risk from natural disasters, particularly countries have achieved over the past few decades. droughts and floods, whose impacts are aggravated by envi- ronmental degradation. The national economies of African The Africa Region Environment countries rely mainly on agriculture and on extraction of min- eral and biological resources. In Africa, better environmental Strategy management is not just a matter of preserving nature; it is a The Africa Region E nvironment Strategy (ARES) aims to help matter of survival. World Bank clients achieve sustainable poverty reduction through better environmental management. Approaching Yet this natural resource base on which so much depends is environment through a "poverty lens," the strategy targets steadily deteriorating. Many parts of the region are charac- four main objectives: 24 ENVIRONMENT MATTERS * 2001 * Enisurinig sustainiablc livelihioods. The local government and community critical to meeting human needs and en- strategy highlights the over- levels, and to take into account the hancing economic production on a sus- whelming importance of land changing roles of government, civil tainable basis. For example, the Bank is degradation and desertification; the society, and the private sector actively supporting integrated coastal deterioration in quality and growing U The need to move the Environmental zone management through regional, sub- scarcity of surface water and Assessment (EA) process both regional, and country-specific initiatives, groundwater; and the loss of "upstream" into sectoral and area- including coastal and marinebiodiversity productive natural ecosystems. based planning processes and management projects in Mozambique, * Jimprovinzg enivironmienital hlealth. "downstream" into the project theGambia,Senegal,GuineaandGuinea Africans suffer a higher total burden implementation phase Blissau, as well as a Western Indian Ocean of disease than their counterparts in othdierse rons Manyr cofntherptst Un The need to develop long-term and Fisheries project (see Box, page 26). widespread and debilitating sustainable financing mechanisms, Adopting an ecosystem-based approach diseases, particularly those that and to ensure that institutional has important strategic and operational disproportionately affect the poor, development is based on a realistic implications, such as planning and man- stem from environmental conditions assessment of resources available aging land use over large (often cross- such as water and air pollution. now and in the future. border) areas; developing consensus and * Reducing zs vulnierability to niatural coordination among many different disasters antd extreeiic climiate events. Priorities for action stakeholders; making compromises and Africa is characterized bv a high trade-offs among different environmen- degree of climate variability, Following the structure of the Bank-wide tal and development objectives; and de- resulting in chronic and severe Environment Strategy, the Africa Strategy veloping up-to-date information on impacts on economic development organizes priorities for action within the ecosystem conditions and the processes and livelihoods, particularly of the three broad categories of improving the that sustain them. poor. Droughts, floods, landslides, quality of life, improving the quality of and wildfires are all naturally ua growth, and maintaining the quality of The Africa Strategy places a high prior- occurring events whose frequencv the global commons. itv on creating an enabling environment and impacts can be Increased bv enxvironmental degradation. The ..that motivates and enables large numbers * Mairontienl global ecTshesteitis a ld strategy identifies specific priorities of people and diverse institutions to man- valuMes. Africa's vast and unique for action in six sub-regions: the Sudano- age and protect the environment. The es- biodiversity endowment is rapidly Sahelian belt, humid West Africa, the sential elements include a broad being lost as natural ecosystems are Congo Basin, East Africa, Southern Africa, consensus on environmental and sustain- depleted or converted to other uses. and the Indian Ocean Islands. Some is- able development objectives; policy, The region is also highly vulnerable sues, such as land degradation, are regulatory/legal, and institutional frame- to climate change, which is expected equally significant across the continent, works to support these objectives; and to increase average temperatures and while others, such as coastal zone man- mechanisms to monitor results and use make rainfall even more erratic, agement and water scarcity, are more lo- ' ' ~~~~~~~~~them in decisionmaking. To improve the particularlv in the alreadv hard- calized. The strategy also identifies I ~~~~~~~~~~~~~effectiveness of our support for environ- pressed Sudan-Sahelian and priorities relating to key sectors. Sectors eftivenesso tu suppor t fo - southern regions. targeted for their strong significance to mg environmental management include ag- cus on reversing the incentives that Lessons learned riculture and rural development, natural currently drive people, individually and resource management, energy, urban de- collectively, to destroy or degrade the en- The Africa Environment Strategy summa- velopment, water resource management, vironment, and on providing the essen- rizes Bank experience and lessons transport health, and private sector de- tial technical and institutional tools for learned, including: velopment. environmental stewardship. For example, * The importance of longer time frames government policies often encourage the to support institutional development The strategy calls for a "people-focused destruction of natural habitats by award- and environmental action ecosystem management" approach to de- ing land rights to people who "improve" * The need for institutional capacity velopment. Maintaining well-functioning these areas by converting them to agri- building to go beyond national to ecosystems and ecological processes is culture and other uses. In the Burkina JULY 2000-JU\E 2011 * (FY2001) 25 Faso PRONAGEN project, local commu- vironmental services; and supporting the nities will become the managers and cus- development of long-term financing todians of key wildlife areas and will mechanisms such as trust funds. A num- receive both assistance and direct incen- ber of recent projects include components tives for good stewardship. to establish trust funds or revenue gen- eration mechanisms to ensure the Lack of adequate resources to promote, sustainability of biodiversity conserva- 2. _ implement, and monitor the impacts of s o b conserva tion and other environmental objectives environmental action is a perennial con- straint to improving environmental man- (for example, the Malawi Mulanje Moun- agement. Bilateral and multilateral tain Conservation Trust). Several initia- assistance for environmental manage- tives are also under development to ment and protection will continue to be mobilize investments for carbon seques- -- important in Africa, particularly in rela- tration through forest management, tion to global environmental objectives, reforestation, and improved land man- but it must be complemented by other agement-for example, under the Inte- _ - mechanisms, including revenue genera- grated Land and Water Management . tion and greater private sector invest- Action Program in Africa (see Box, page ment. Key objectives include generating 27). sustainable funding for environmental management through supporting policy Implementing the Strategy other environmental and social reforms that create an enabling envTiron- While environmental management is a safeguards, particularly by increas- ment for environmentally sound invest- long-term undertaking, urgent action is ing attention to implementation and ment; introducing and refining user fees, needed to stem ongoing environmental monitoring and by moving assess- taxes, penalties, and other economic and degradation and to prevent further deg- ments "upstream" into planning market-based instruments; targeting Glo- radation resulting from poorly conceived processes through Strategic Environ- bal Environment Facility funding for ac- or implemented activities. Such actions mental Assessments tivities that address both national/local include: a Moving toward longer-term pro- and global priorities; enhancing African * Improving the application of grammatic operations that combine countries'accesstomarketsforglobalen- Environmental Assessments and concrete, substantive goals for improving environmental quality with a flexible approach to imple- IMPLEMENTING INTEGRATED COASTAL MANAGEMENT IN SUB-SAHARAN AFRICA mentation. The Africa Region has developed a process to identify promising opportunities for integrated coastal zone management projects. The process involves screening of In-country capacity building will con- countries based on "first order criteria' such as political stability; a high level of de- tinue to be a main focus. Specific activi- pendence on coastal resources; use or potential use of coastal and marine resources and a substantial threat to these resources. Candidate countries are then ranked ties at the regional and country levels will based on "second order" criteria such as country commitment, availability of partners, include building in-country capacity for and external assistance through existing World Bank or other donor-financed pro- grams. Identifying and designing specific interventions calls for an evaluation of "third environmental management, including order" criteria such as clarity of property rights regimes, existence of incentives for strengthening of EA legislation, applica- and against sustainable use of coastal and marine resources, and the level of local tion, and monitoring; training and capacity. Global criteria-that is, the global significance of certain marine and fresh- water coastal areas-are also significant, in part because of the opportunity to mobi- strengthening employment opportunities lize GEF co-financing. Another important consideration is the opportunity to enhance for local environmental professionals; sub-regional integration through collaborative management and development of shared a coastal resources. and environmental support programs that focus on strengthening environmen- Countries with priority integrated coastal management initiatives include the Seychelles, South Africa, Mozambique, Mauritius, Madagascar, and Ghana. Countries where inte- tal planning and action within sectoral grated coastal management needs are urgent and complex, but where the "institu- agencies and at the community level. tional core" is not as strong, include Senegal, the Gambia, Tanzania, Nigeria, Kenya, Examples include the Uganda Environ- Namibia, Cote d'lvoire, Guinea, Benin, and Guinea Bissau. mental Management Capacity Building 26 ENVIRONMENT MATTERS * 2001 Project, the Malawi Environment Man- Country Teams, and substantial Bank in- agement Project, the Burkina Faso volvement. GEF IN AFRICA - INTEGRATION, Community Support Program, the Mada- DIVERSIFICATION, AND QUALITY gascar Environment Program, the Nige- Key activities will include developing The Global Environment Facility (GEF) ria Micro-Watershed and Environmental and piloting tools and models for coun- portfolio in Africa has grown over the Management Program, and many others. try-specific analysis of environmental past few years and become more di- conditions, issues, and opportunities; versified. Land degradation, the high- Over the long term, effective environ- enhancing environmental sustainability est priority environmental issue for most in key sectors by improving incentive African countries, provides an important mental management requires building entry point. The newly launched GEF- environmental objectives, actions, and structures; and developing meaningful financed Africa Integrated Land and and practical indicators tor assessing en- Water Management initiative will sup- vironmental conditions and trends, envi- port strategy development, capacity gies and operational programs. This re- ronmentally related poverty impacts, and building, and pilot operations in at least quires providing the information needed the extent to which enx'ironment is inte- six countries. Programs that can link i rm ad a global and local issues, such as com- tohifo andrpersue decvisnmentaker grated into development planning and munity-driven development, are under that addressing environmental and operations. For example, a major study preparation in countries such as related social concerns is essential to de- in Nigeria will analyze environmental Burkina Faso and Niger. velopment; identifying realistic develop- degradation, impacts on poverty, and ment options and spelling out the costs, options for harmonizing sectoral priori- The Africa Global Environmental Coor- ment options ~~~~~~~~~~~~~~~~~dination Team is responsible for moni- benefits, and trade-offs involved; and pro- ties. A similar analysis in the Democratic toring and evaluation of the Region's viding the tools to support implementa- Republic of Congo will focus particularlv portfolio. During the past year, the Co- tion of environmentally favorable on environment/health linkages. ordination Team has piloted video de- options. Prioritv will be given to coun- briefing sessions as a means of capturing experiences, lessons, and tries where there are strong and clear link- Strategic partnerships will be vital to the good practice from project preparation ages between environmental improve- implementation of the Strategy. In addi- and implementation. ments and poverty alleviation, demon- tion to traditional partners such as bilat- strated interest on the part of clients and eral donors and international NGOs, the Bank will continue to explore the poten- tial for collaboration with the private sec- tor in areas such as technology development and transfer, specialized -t w t training and information exchange, and ; - .4r! ^ environmental cleanup. Tlhis articlc was preparcd t,I/ Agi Kiss of the Africa Tecli ictal Fantilies: Etniironimenit and Social Devclopinecnt Ltinit, (202) 458-7180,fax Collecting water in Senegal. Lack of access to clean water supplies and sanitation is an environmental (202) 473-8185. AFR zvebsite- health risk affecting millions of the region's poor. t l '*. ' ! .. '.f .'tg/ah/far. ISf JULY 2000-JUNE 2001 * (FY2001) 27 l , , , < t , u ,,~~~~~~- =:~~~~~~~~~~~~~~~~ Mongolia 1' . }China Rep. of Korea Lao P.D.R. ~9wc~.~ Myanmar _____ 7Vietnam - ~Cambodia Thailand -2 Philippines Mslandsh Malaysia Polau Fed. States of Micronesia Kiribati- Indonesia - New Solomon _ Guinea Is. . ~~~~~~~~~East Timor Samoal,.,~.@I Vanuatu Fiji r t i5 v - S IBRD 3156? OCTOBER 20uI Tong g 11111ow-' - _ -- -L - Indonesia ountries in the East Asia and Pacific ment by introducing cleaner technologies and generating new sources of revenue for addressing environmental externalities. Region have two distinguishing fea- However, rapid industrialization and an expanding urban tures with important environmen- population have so far outpaced the ability of new technolo- tal implications: high population densities and relatively rapid gies and pollution control investments to reduce overall pol- < g r ~~~~~~~~~lution loads, resulting in deteriorating air, water, and solid rates of economic growth. The region, now home to 1.8 billion waste pollution in many countries in the region. people, is expected to reach 3.1 billion by the year 2015. Nearly two thirds of the region's people live in rural areas, with farm- Air and water pollution stand out as the region's most serious ing or other resource-dependent occupations as their primary and economicallv costly environmental issues. More than means of livelihood. But the share of the population living in 500,000 infants die each year as a result of waterborne diseases urban areas is rapidly increasing. Between 1980 and 1998, the linked to polluted water. About 60 percent of these deaths are urban population nearly doubled from 310 to over 600 million attributable to deficient rural water supplies, while another 30 people, placing additional strains on the environment. percent are caused by the lack of sanitation in urban areas. These impacts are equivalent to shortening the average life Notwithstanding the economic crisis that occurred during the expectancy of everyone in the region by nearly two years. In 1990s, the region experienced the fastest rate of economic addition, damages from air pollution are serious in many large growth in the world over the past 25 years. In some respects, cities in the region-including Jakarta, Manila, and Bangkok- this growth created the potential for benefiting the environ- and are extremely costly in China, where air pollution is esti- 28 ENVIRONMENT MATTERS * 2001 3 . L I Ii;. 0 i i - .S_ mated to cause over 200,000 premature ment field. Examples include the Yangtze (CASs) have not been effective in high- deaths annually. In some cities in the re- Basin Water Resources Development lighting the macroeconomic, policy, and gion, it is estimated that total health dam- Project and Huai River Development institutional factors that affect a country's ages are equivalent to 20 percent of Project in China, and the Java Water Irri- environmentally sustainable develop- annual income. gation and Water Resources Management ment. Over the past 10 years, the Region Project in Indonesia. To be effective over has prepared strategy studies on forestry, In many parts of the region, natural re- the long term, the Bank's support for en- watershed management, and biodi- sources are deteriorating and are under vironmental capacity must emphasize versity. Some studies, including those for growing pressure. Though more difficult strengthening local environmental sys- the Philippines, Indonesia, and Vietnam, to measure than pollution costs, the tems, community participation, environ- have been instrumental in shaping natu- stakes are high, since they involve the mental education, and the importance of ral resource management programs in sustainabilitv of key natural resource- institutions other than environmental those countries. While many agricultural based activities-such as agriculture, fish- agencies to promote policy reform and development projects have been success- ing, and forestry-and of human follow-through on implementation. Insti- ful in raising farm-level incomes, they settlement patterns. In the early 1990s, tutional capacity building is a necessary have not generally been effective in pro- deforestation rates in East Asia were the component of overall environmental im- moting sustainable NRM. The challenge highest of any region. Indonesia alone lost provement and must be done in tandem is to redirect rural development initiatives about 20 million hectares of forest cover with environment and policy develop- away from individual agricultural pro- between 1985 and 1997. Since the 1960s, ment, environmental infrastructure in- duction projects toward sustainable the Philippines has lost nearly 90 percent vestments, and awareness raising. NRM. of its productive old-growth forests. In the Pacific Island nations, marine ecosys- Urban Enivironiinnciit Polluitioni Conttrol The Strategic priorities and tems are being progressively destroyed. Bank has been an important source of fi- Climate change could exacerbate many nance for environmental infrastructure in actions of these problems and is a major threat to the region. In the sanitation sector in In three areas-the quality of life, quality small islands, coastal areas, and dryland countries such as China and the Philip- of growth, and quality of the regional and and non-irrigated agricultural systems. pines, the Bank has promoted the creation global commons-the Bank can simulta- of autonomous vater and wastewater neously promote povertv reduction and The banks record and companies and the establishment of wa- environmentally sustainable develop- future chank's reord ater and pollution charges, both to help ment in the region. future challenges reduce pollution and to finance operation In the EAP Region, the Bank has been and maintenance to guarantee long-term Quialitl of Life. Nearly all client countries active in three main areas: (1) environ- sustainabilitv. Water pollution invest- are experiencing severe water pollution- mental institutional development; (2) ur- ments have predominantly been for the related health problems. New and in- ban environment and industrial pollution provision of clean drinking water sup- creased support for urban sanitation and control; and (3) natural resource manage- plies, sanitation, and drainage. Future drainage investments and for rural and ment. public investments for water and air pol- peri-urban water supply and sanitation lution management will depend on solv- activities is envisaged in most countries Environmenrtal Inistituitioinal Developmient. ing recurrent financing issues, which in in the region. Fine particulates, produced The Bank has provided technical assis- turn requires political commitment to the primarily from fuel combustion, are a tance to strengthen national environmen- adoption and reform of environmental growing concern in nations such as tal agencies in the region. Through their and resource policies. China, Indonesia, the Philippines, Thai- role as implementing agencies for Bank- land, and Vietnam. The Bank is support- supported environmental projects, many Natur7al Resautrce MauMagemiieut (NRM). De- ing a number of cost-effective solutions provincial and municipal agencies-in spite more than a decade of attention, to address this issue within the East Asia the areas of transport, construction, and policymakers in the region are just begin- Clean Air Initiative (see Box, page 30). In utilities, as well as environment-have ning to recognize the importance of NRM the transport area, interventions include improved their technical, financial, and issues to sustainable economic develop- switching to unleaded gasoline; improv- assessment capabilities in the environ- ment. Most Country Assistance Strategies ing fuel quality; introducing cleaner ve- JULY 2000-JUNE 2001 * (FY2001) 29 ENVIRONMENTAL PARTNERSHIPS policy and management to non-forest projects, the Bank can also promote envi- agencies, and delegating management ronmentally sound policies within the To help countries in the region to ad- authority over degraded forests to par- context of sectoral adjustment loans. dress major environmental concerns, ties outside the forestry bureaucracy, such the Bank is developing a number of for- mal and informal partnerships. Several as local communities, NGOs, the private In nations such as China, the Philippines, forestry activities are under way as part sector, and other natural resource agen- and Thailand, the Bank continues to pro- of the World Bank/WWF Forest Alli- cies. vide support for environmental assess- ance, while the World Bank-Nature ment, strengthening local environmental Council-Birdlife International partner- Reducing vulnerability to natural disas- planning and regulatory capacities, and ship focuses on major biodiversity con- cerns. Under the Clean Air Initiative, the ters iS a critical issue in the region. The improving environmental financing. In Bank will collaborate with multilateral Bank has provided support for relief and addition, the Bank is actively promoting and bilateral donors, the private sector, reconstruction following floods, volcanic new approaches in environmental regu- and regional governments to share ef- eruptions, and earthquakes in nations lationthrough bothlendingandnon-lend- fective air quality lessons. The World such as Cambodia, China, andMongolia. ing activities. Public disclosure of Bank-Korea Knowledge Partnership is designed to share Korea's environmen- Moving from curative to preventive ac- environmental information is a promising tal experience with other countries in the tions, the Bank plans to become more in- way to encourage pollution prevention region. Currently focusing on industrial volved in addressing long-term risk and abatement and publicize the environ- pollution abatement and environmental reduction and mitigation measures as mental performance of industrial enter- management, this partnership could ex- part of its advisory assistance and invest- prises (see Box, page 31). Furthermore, pand to cover other issues of impor- ment operations, recent reviews of the Bank's safeguards tance in the region. record indicate that increased attention Quiality of Groztlh. In the macroeconomic needs to be paid to building up local hicle technologies and improved mainte- and sector policy arena, the Bank will environmental management and en- nance and inspection; and promoting ur- promote policy reforms that improve vironmental assessment capacity, improv- ban planning that is less traffic-intensive. natural resource use and reduce pollution ing public consultation, and integrating externalities. In addition to investment environmental and social assessments. Better management of natural resources is essential for safeguarding rural liveli- hoods in the region. Effectively address- ing these issues requires a long-term and ' concerted effort, including integrating l r natural resource policy within macroeco- nomic policy and agricultural develop- ment agendas of national governments. | A priority for the Bank is to identify criti- 12 cal NRM issues in countries of the region, ItI and ensure that policies that support sus- tainable resource management are incor- I porated within the CAS/CDF/PRSP processes, as in the case of Indonesia, Mongolia, Thailand, and Vietnam. Aside from the "5 million hectare" afforestation program in Vietnam, the Bank will pri- marily support smaller-scale community forestry programs, with an emphasis on * conservation and sustainable forestry de- I velopment. A resumption of Bank sup- port to the forestry sector in Indonesia is - dependent on progress on two issues: '' broadening the dialogue on forestry A two-stroke engine, three-wheel motor vehicle. China. 30 ENVIRONMENT MATTERS * 2001 Quality of thC Re- gional anid Global Environment. As a multilateral insti- tution, the Bank - can play an im- - portant role in helping address regional environ- ment issues, such as river basin -, management and acid rain. Some of these issues have -- - - , already gained - the attention of . policymakers in .-... .. - the region. GEF F 4 recently approved support for the A coastal village in Indonesia damaged by both an earthquake and a tsunami. Mekong River gram and operations like the Thailand production landscape. The Kerinci-Seblat Commission to establish mechanisms to Chiller Replacement Project. New opera- National Park Integrated Conservation promote and improve coordinated and tions are planned for Cambodia, China, and Development Project is a sound ex- sustainable water management, includ- Mongolia, the Philippines, Thailand, and ample of this approach, and similar ini- ing reasonable and equitable water utili- Vietnam. tiatives are underway in Vietnam, and the zation by the countries of the Basin; and Philippines. to protect the environment, aquatic life, In the face of serious threats to ecosys- and the ecological balance of the Basin. tems and biodiversity in the region, the Supporting the phaseout of ozone- Bank has developed an extensive portfo- depleting substances is a continuing pri- In the climate change area, the Bank will lio of biodiversity projects, most of which oritv. Currently, there are phase-out support energy efficiency and fuel switch- take an ecosystem approach to conserva- projects for ozone-depleting substances ing through GEF and other concessional tion and are focusing on biodiversity (ODS) in China, Indonesia, Malaysia, resources that build on lessons learned management, both within protected ar- Thailand, and the Philippines. The re- through the Asia Alternative Energy Pro- eas and beyond their boundaries into the gional program, particularly the one in China, has moved from a project-level to MONITORING ENVIRONMENTAL TRENDS a programmatic approach, allowing a IN EAST ASIAN COUNTRIES more systematic and comprehensive phaseout from all the key contributing Making information on environmental trends accessible sectors. Furthermore, given the region's to decisionmakers and to civil society is essential to in- intensive industrialization and wide- formed public debate on environmental issues. The En- Envelizaw vironment Monitor series, initiated in 1999, aims to MoiurOR2000 spread use of agricultural chemicals, present available information on key environmental there are plans to develop a major pro- trends in East Asian countries. The Monitors use charts, graphs, and explanatory text to follow trends in various gram to address persistent organic pol- environmental indicators such as air and water quality, lutants (POPs). deforestation, and waste management. As far as pos- t sible, the Monitors describe both current conditions and T r trends over time. T17is article zvas prepared b/ Giomizua Dore of the Etist Asia anid Pacific Regionz, (202) 473- Environment Monitors have been prepared for the Phil- .. 2934, fax (202) 522-1666; anzd Todd Johnisonz of ippines and Thailand. Similar efforts will be undertaken the Enzvironaiiicoit Departmcnit, (202) 458-2435, in Cambodia, China, Papua New Guinea, and Vietnam. fax (202) 522-2130. EAP ivebsite - I,!t . ' ! .ziorldank.ortg/eap/eap.nsf JULY 2000-JUNE 2001 * (FY2001) 31 -f .. .~ .-.1 . ; t:ri ~~~~~~~~~~~~~~~~~~~~~~~~~ - . 1 r - I 94- r-alovak Re Ir-Crech Rep Russian Federation Kazakhstan - Turkey rt Cyprus FYR Macedonia -Albania I W -.FR. of Yugoslavia ----Bosnia and Hlerzegovina -Croatia --.... Slovenia IBRD 31563 OCTOBER MOI Regio nal an d e nvi ro n me ntal co ntext rochernicals, and metallurgy. Water supply and water resource management are the over-riding priorities in Central Asian 9 he 27 countries in the Europe and countries and Azerbaijan, in part due to the collapse of the Soviet-era system of canals and dikes. Severe soil salinization Central Asia Region are all invan- is also a legacy from this system and requires improved irri- ous stages of transition from cen- gation and drainiage management. Reducing agricultural and tra,y paeeomewttexeiindustrial pollution, restoring wetlands, and improving waste- trally planned economies, with the exception of Tuirkev. The t U' water management are priorities throughout the region. pacae of thendifferental naurovemenviralsonm talrises,n facg bBiodiversitv is also tinder pressure from infrastructure deve]- cause of the different nature of environmental issues facing these couLintries and in part because poverty rates are widely opment and illegal logging and poaching. Forest resources divergent, from below 10 percent in countries in Central Eu I- and their management are also critical. Russia, for example, diergpent, frombelw81 percent inTaikist l counfctres inantural Es- has 22 percent of the world's forests and 18 percent of OECD's rope to 68 percent in Tajikistan. Civil conflicts, natural disas- genos a msin.Tecs fmeigErpa / ~~~~greenhouse gas emissions. The cost of meeting Euiropean ters, refugees, and ethnic problems are major complicating Union (EU) environmental requirements is an issue for the factors in Central Asia, the Balkans, and the Caucasus. EU accession countries. Regional Divergence. Environmental challenges varyv within the Rcformiis ore Critical. The ability to address environmental is- region. Environmental challenges from past liabilities remain sues is closely linked with progress in implementing impor- an issue in highly polluting industries such as chemicals, pet- tant structural reforms, such as: 32 FNVIRONMENI MATTERS * 2001 * Privatizing the consumer and Enicrgy Availability. Lack of domestic en- ficials do not always agree on the impor- industrial sectors, promoting free ergy supplies is driving a rush for new tance and urgency of environmental is- trade, and other measures that strategic alliances, and generating pro- sues. On the positive side, increasing establish fiscal and macroeconomic posals for new oil and gas pipelines that freedoms have led to an increasingly vo- stability and help promote the raise environmental concerns associated cal and influential civil society, including efficient use of resources with construction and potential oil spills. NGOs and independent journalists, who * Assessing the real costs of water In energy-rich countries, such as Russia are pressing for these laws to be followed. supply and tradeoffs between energy or Kazakhstan, the desire to maximize and agriculture; introducing better export earnings of oil and gas places re- The water management and irrigation nexped pressure on domestic users t regional practices; rehabilitating irrigation burn dirtier fossil fuels particularl coal environment strategy schemest and making e ater users For energy-poor countries, the increasing The Bank has developed a regional Envi- py Rformaingtmunicipal water and prices of energy inputs, together with the ronment Strategy for Europe and absence of reforms at the distribution Central Asia, based on extensive consul- sewerage and solid waste utilities, level, has led to the collapse of district tations with stakeholders in client coun- including eliminating subsidies and raiscling tariffs ating subsidies and heating plants, the burning of alternative tries, other international organizations, * Inroducing tarincentivesfforseffici dirtier fuels, and the installation of less- and the donor community. The consulta- eInergyduse, ieltiminati f ur efficielt efficient small boilers. tions helped achieve consensus on envi- energy use, eliminating fuel subsidies, making the energy sector ronmental priorities, including the need competitive, promoting lead-free Governincnt Connnitncwnt. Although most to link environmental issues to povertv countries in the region have a relativelv and health and to the general reform fuel, introducing metering, and otherwise reforming district heating good legal and regulatory framework for agenda. Individual country strategies are companies environmental management, institu- tied to localized environmental issues as * Introducing more cost-effective and tional capacity to implement and enforce well as broader macro and reform sustainable natural resource man- regulations is weak, and government of- agendas. agement practices * Establishing basic environmental protection and management systems, and ensuring public participation in IAM environmental issues. The political dynamics in the region fre- quently impede such reforms. For ex- -= ample, municipalities are often reluctant i to eliminate energy and water subsidies F a I or raise tariffs, despite deteriorating in- frastructure and evidence of tremendous fl7T - . _ f _ - waste that threaten access to clean water ,; 1,i in many urban areas. Politicians fear their X constituents cannot afford rate increases, even though evidence suggests that much of the population could do so. Wage ar- rears, barter payments, lack of metering, and the relative insolvency of many mu- nicipalities also complicate utility re- forms. As a result, privatization with effective regulation is proving more suc- cessful than attempts to reform munici- Paticipatory studies to understand the perspectives of users of natural resources including, in this case, pal enterprises. irrigation water. Kyrgyz Republic. JULY 2000-JUNE T1hU1 * (FY2001) 33 To improve the quality of life, the regional newly approved Urban Transport Project and the Baltic Sea. We have ongoing environment strategy will work to im- will address traffic management and re- projects in each of them. The Bulgaria prove access to safe drinking water and habilitate bridges, which should contrib- Wetland Restoration and Pollution Re- sanitation; mitigate health threats from ute to the reduction of transport duction Project, for example, aims to help industrial accidents and toxic substances; emissions. A project to assist Turkey to re- reduce transboundary nutrient loads and support conversion to less polluting heat- cover from the Marmara Earthquake in- conserve biodiversity in the Danube and ing fuels, more efficient heating, improv- cludes support to help Turkey better plan Black Sea Basins through improved man- ed traffic management, and reduced for earthquakes, mitigate their conse- agement and sustainable use of water re- power emissions; improve livelihoods quences, and recover more quickly after- sources and restoration of wetlands, some through support for sustainable forests, wards. of which were former floodplains (see watershed management and energy con- Box, bottom of next page). In Latvia, the servation; and improve security by plan- To ensure the quality of growth, the strat- Liepaja Region's Solid Waste Manage- ning for and mitigating natural disasters. egy will focus on integrating environ- ment Project includes measures to utilize For example, the Kosovo Pilot Water Sup- ment into macro and sector policies; landfill gas for electricity generation. The ply Project and the Russia Municipal building local capacity to assess the en- resulting reductions in greenhouse gas Water and Wastewater Project are aimed vironmental impact of policies; strength- emissions will be partly sold to the Pro- at ensuring the availability of water and ening legal and regulatory frameworks totype Carbon Fund (PCF), making this wastewater services to urban populations and environmental review capacity; and the first project financed with PCF assis- while implementing institutional and improving the framework for private in- tance. commercial reforms to improve their vestment through helping governments longer term sustainability. In Moscow, a address environmental liability in the The regional environment strategy is be- context of privatization. For example, the ing stupported through a number of stud- Bank is supporting environmental re- / ,T, forms and assisting the Government of SPECIAL INITIATIVE FOR OZONE / - Bulgaria to help newly privatized com- DEPLETING SUBSTANCES / _, panies comply with environmental laws PRODUCTION CLOSURE I 9 and clean up environmental liabilities cre- Russia has traditionally been one of the ated prior to their privatization. world's largest producers of ozone- depleting substances (ODS). In 1998, To improve the quality of the regional and its production capacity represented al- most 50 percent of global capacity still global commons, the strategy will help active. The World Bank's Special Initia- reduce greenhouse gas emissions; sup- tive for Ozone Depleting Substances port biodiversity conservation with the Production Closure brings together 10 participation of local communities; im. donors and Ihe GEF to help close all participation of local communities; im- ODS production in the Russian Federa- prove management of international wa- tion. Under the project, the Bank pro- ters; complete the phaseout of ozone- vided a grant to the Russian Federation, depleting substances; and begin to ad- which in turn provided payments to the depleting substnces;and b genterprises as partial compensation for dress broader resource degradation and costs associated with closing ODS pro- desertification issues. Projects to end the duction, based on clearly defined and verifiable outcomes. All ODS production use of ozone-depleting substances are in Russia was terminated by Decem- under way in Poland, Belarus, and Rus- ber 20. 2000. As of June 2001, closure sia (see Box, at right). Several forestry activities at all enterprises are substan- projects address desertification, among tially complete. such that they no longer .. projes, have Ihe capacity to produce ODS. Clo- a j otherproblems(seeBox,topofnextpage). ~sure Verification Reports are under The region has four important seas where preparation and final compensation improved transboundary cooperation payments. subject to the Bank and Do- nor expert panel verification, are antici- Croatia and improved management are needed: ed pn pael vf aentc pated in the fall of 2001. the Aral Sea, the Caspian, the Black Sea, 34 ENVIRONMENT MATTERS * 2001 ies, including efforts to understand the THE STRATEGIC PARTNERSHIP ON THE BLACK SEA AND DANUBE BASIN links between environmental problems The environment of the Black Sea/Danube Basin has degraded drastically over the and health and poverty; evaluate the links past four decades, due to untreated wastewater discharges from industry and towns, between energy and environment; adopt excessive use of pesticides and fertilizers, land use changes, inadequate manage- cleaner fuels, improve traffic flows, and ment of animal waste, oil spills, introduction of alien species, and overfishing. Envi- promote more fuel-efficient vehicles; ronmental contamination has caused significant losses to riparian countries through quantify the fiscal and environmental reduced revenues from tourism and fisheries, loss of biodiversity, and increased water- impacts from better natural resource borne diseases. Over-fertilization ("eutrophication") of water bodies by nitrogen and mpactsefro betterlarl resource phosphorus discharges from municipal, industrial, and agricultural sources was the management, particularly forests; and most significant cause ot this ecological near-disaster. link agricultural productivity and rural livelihoods to better agricultural practices The GEF Strategic Partnership on the Black Sea and Danube Basin was established and irrigation restructuring. by the Global Environment Facility (GEF), the World Bank, the United Nations Devel- opment Programme (UNDP) and the United Nations Environment Programme (UNEP). Throughout the region support for ca- The goal of the Partnership is to return the Black Sea environment to its 1960s level. Throughout th rego so rti fornca Clearly, reaching this goal requires cooperation by all stakeholders, including govern- pacity building is also continuing. ments, national and international NGOs, international organizations, private sector organizations, and citizens of the region. The backbone of the partnership is the World Implementation Bank GEF Investment Fund for Nutrient Reduction in the Black Sea/Danube Basin, to help finance investment projects in industrial and domestic wastewater treatment, arrangements wetland restoration, and environmentally friendly agriculture. A GEF grant of $29 mil- lion for the project will be invested during the first two years of a six-year, multi-tranche Given the many linkages between envi- program. ronmental issues and other sectors, implementing this strategy requires strong cross-sectoral alliances with col- leagues working on energy infrastruc- ALBANIA: COMMUNITY-BASED FOREST MANAGEMENT IN A TRANSITION ECONOMY ture, particularly urban water and district Forests cover 38 percent of Albania's land area, with broad-leaved forests-mainly heating, as well as agriculture, rural de- oak and beech-predominating. Fuelwood accounts for over 40 percent of recorded velopment, and forestry. Social assess- timber production. Pasture land covers 15 percent of land area, and 60 percent of the ments will be integrated into efforts to population is dependent or partially dependent on pastoralism. Forest and pasture develop rural community-based im- land are owned by the state. Since 1990, Albania has moved rapidly with market- based reforms, but there have been increasing problems of governance and law and provement projects in water supply, irri- order, including illegal timber harvesting. gation, and agricultural practices. Close collaboration with our colleagues in the The Community-based Forest Management Project aims to restore degraded state- poverty reduction and human develop- owned forest and pasture areas and promote their sustainable use; promote conser- ment groups will also be required, par- vation of natural forest ecosystems; and initiate a transition of the forestry/pasture ticularly to better assess linkages between sector to a market economy, separating commercial from regulatory functions and establishing mechanisms for self-financing of the commercial activities. In addition to poverty, health, economic growth, struc- assisting with improving forest management at the local level and reorganizing the tural reforms, and environment; to assess forest sector institutions, the project is improving trade, marketing, and pricing poli- the environmental impacts of proposed cies to enhance revenue; implementing an action plan to reduce illegal harvesting, in structural and policy reforms; and to in- collaboration with local governments and the Ministry of Finance Tax Inspection; and corporate environmental agendas and supporting community forestry by providing local communities with legal user rights priorities into Country Assistance Strate- for communal and forest pastures, assistance to improve their management, and mechanisms to reinvest users fees into improved management and into training for- gies (CAS). We will also icrease our ef- est specialists in the public and private sector. forts to be selective and leverage limited resources through partnerships. Because of broader poverty, law and order, and governance issues, controlling illegal harvesting and improving forest management on publicly managed land has been difficult. The transfer of user rights and management to local communities has worked well; user rights have been transferred for 10 years. Local communities have been This article wcas prepared by JaneI- Holt of the assisted with development of management plans, and have invested user fees in Enivironmiitentally & Sociallil Sustainable improving the resource. This component is being expanded, and may form the basis Dezvelopmizenit Sector Uniit, (202) 458-8929, fax for a follow-on natural resources and environment project. (202) 614-1528. ECA ,ebsite - 'I'!' | . . l'l'! ..,,0.ll, . r,g/eca/eca.nisf JULY 2000-TUNE 2t001 - (FY2001T 35 - ->- . ____i___, ______ The Bahamnai Has Jamaica Dominican Rep. Mexico 'S. K.rt' and Nevis Ant;gua and Ba'buda -Belize -- Domin a Guatemalaoz/ -Honduras B. rbudi_ &rVncntand reGrndie El Salvador-'' R.B de ' i icn n h-Geaee Nicaragua-' ' Veneweia ~~Grenada ElicSar ,g,a, Venetuel = Tr,nidad and Tobago Costa Rica-- Panama- o Colombia- G uya Ecuaclor- Suriname Peru Brazil pet. Bolivia _ Paraguay Chile- Uruguay Argentina IBRD 3'50% OCTOBER 20l. .~~~~~~~~~~~~~~~~~~~- '7)t he Latin America and Caribbean Re- heterogeneity in social and economic conditions within the region, both within and across countries, seeks to support gion countries are characterized by short-term poverty alleviation without compromising long- economies that are increasingly in- term sustainability. Its key development objectives are (a) enhancing livelihoods and reducing vulnerability through tegrated into the world economy; the formation of regional susainablelnatural redmangement; itb imrovg ¢ ' sustainable natural resource management; (b) improving trading blocks such as Mercosur; a high degree of urbaniza- health conditions affected by environmental factors; (c) de- tion; and a deepening of democracy, coupled with a trend to- veloping appropriate enabling frameworks for sound envi- ward increasing decentralization and improved governance. ronmental management; and (d) facilitating eqcuitable The key environmental issues in the region include (a) urban- solutions to regional and global challenges. industrial pollution; (b) mismanagement of natural resources in areas of both existing and new settlement, and the conse- -E quent loss of both terrestrial and marine biodiversity; and (c) Enhancing ivelihoods high vulnerability of urban and rural populations to natural To enhance livelihoods through the sustainable management disasters. of natural resources, the strategy supports efforts to identify and analyze the causes, impacts, and costs of environmental The World Bank prepared an environment strategy for the degradation and natural resource depletion. It promotes the region during 2000-2001 with inputs from a wide variety of adoption of sustainable environmental managementpractices stakeholders. The strategy, which reflects the considerable to address environmental degradation and natural resource 36 ENVIRONMENT MATTERS * 2001 depletion-particularly win-win activi- THE PANAMA CAS Reducing vulnerability ties that both improve poor people's live- AND BIODIVERSITY- lihoods and reduce environmental TOWARD BEST PRACTICE The region has experienced several natu- degradation. ral disasters in recent years. The impact The fiscal 1999 Country Assistance of these disasters has been aggravated by Strategy (CAS) for Panama focuses on environmental degradation. In many One focus will be on developing a better poverty alleviation and recognizes that understanding of environment-poverty- this issue is particularly severe in rural cases, it is the poor who are most vulner- areas. Consequently, one of the pillars able to natural disasters. One approach economic growth linkages and trade-offs, of the strategy is environmentally sus- to addressing these problems is to assist including long-term versus short-term tainable development in rural areas. clients to better prepare for and respond implications of natural resource use. The The proposed activities recognize that Panama Country Assistance Strategy pro- Panama is home to a very rich and to natural and human-iduced disasters unique biodiversity, and that its conser- by developing early warning systems and vides an example of this approach (see vation and sustainable use are neces- risk management services such as insur- Box, at right). As another example, the sary elements for such development. ance schemes. Recent projects that have Mexico Decentralization Loan seeks to In the past, Panama has used Bank as- taken this approach include the Disaster link objectives of overall accountability sistance and GEF resources to en- Management Project in Mexico and the and transparency of fiscal transfers to hance its participation in the Project in Mesoamerican Biological Corridor Natural Disaster Vulnerability rjeti improved service delivery in the health through strengthening its capacity to Nicaragua. The Trinidad and Tobago and environment sectors through decen- manage a large protected area system, Water Resources Management Strategy tralization. to increase rural incomes and curtail deals both with vulnerabilitv to floods as environmental degradation, and to de- velop a National Biodiversity Strategy well as with quantity and quality of wa- Sustainable integrated natural resource and Action Plan. The CAS emphasizes ter (see Box, below). management of land, freshwater, and the need to take these goals further and marine ecosystems will be another area to address land tenure issues and policy TRINIDAD AND TOBAGO distortions that provide incentives for WATER RESOURCES of emphasis. Efforts in this area will fo- unsustainable use of natural resources. MANAGEMENT STRATEGY cus on highly degraded or threatened In addition, it identifies the need to pro- ecosvstems and disaster-prone areas. In tect the Panama Canal watershed, in- The Water Resources Management cluding the establishment of ecological Strategy has integrated several cross- the Mesoamerican Biological Corridor, reserves. sectoral issues, including the develop- the Bank is working with a number of ment of a water resources policy and other donors to promote a pattern of sus- institutional framework for the regula- tamable land use that provides income reduce emissions in the Mexico City Met- tion of water resources; a water re- opportunitiese from envronmental ropolimen Area.Thestudyfoundsignifi sources development planning opportunities from environmentally ropolitan Area. The study found signifi- framework, which will use surface wa- friendlv options such as ecotourism, or- cant economic benefits to meeting air ter, groundwater, and desalinated wa- ganic farming, and shade coffee. quality standards, including as much as ter for municipal, industrial, and agricultural supply; a flood control strat- $6.8 billion per year for compliance with egy; and a pollution control and water Improving ozone standards and $6.5 billion per year quality management strategy. environmental health for compliance with PM,, (particulate Recommendations include: matter) standards. * Implementing the concept of To guide interventions in the environ- integrated water resources management mental health area, the linkages between To address environmental health prob- * Establishing an effective and environment and health need to be iden- lems, the regional environment strategy financially autonomous institutional tified and analvzed. Important research emphasizes the need to increase the effi- framework that facilitates efficient water resources management priorities in the region include develop- ciency, effectiveness, and sustainability of Acting to meet growing demand for ment of health-environment project indi- municipal services targeted to the poor. water cators, as well as studies of the economic In addition, it promotes clean industrial * Protecting environmental quality benefits of reducing pollution. For ex- production, including environmental and ecological systems ample, a recent Bank-funded study ana- management systems in small- and me- tools lyzed the economic benefits of efforts to dium-sized enterprises. JULY 2000-JUNE 2001 * (FY2001) 37 largest GEF medium-sized project pro- gram in the Bank. This program has en- couraged greater innovation in project design and active engagement with a wide variety of nongovernmental partners. i/ ~~~~~~~~~~~~~~~44 40 V -- Given the prevalence of worldwide - " .\ | biodiversity hotspots in Latin America, biodiversitv remains one of the region's highest global environment priorities. 4. ; . . XInterventions aimed at preserving global biodiversity are more diverse than in the , 4 * , past, and generally will become more in- tegrated into projects with wider sustain- able development objectives. The variety of biodiversity projects include protected areas management; sustainable use of biodiversity outside protected areas; con- servation of biodiversity through indig- enous peoples groups and NGOs; *, piloting of new economic instruments for financing and promoting biodiversity preservation; and sustainable use of natu- Every year, tens of millions of Monarch butterflies migrate to Mexico for the winter. However, deforestation is ral resources in production landscapes. threatening this vital part of the Monarch's life cycle. Anticipated changes in sea level will have a particularly serious impact on the sus- -. tainable development of low-lying coastal states of the Caribbean. A project financed by the Global Environment Fa- . - cilitv (GEF) is designed to support Car- ibbean countries in preparing to cope with the adverse effects of climate change. Addressing global issues The Bank continues to place a high prior- ity on addressing the global environmen- tal priorities of client countries by mainstreaming global financing instru- ments like the GEF and the Montreal Pro- tocol; utilizing programs supported by bilateral donors such as the Climate Change Strategy Studies and Global Overlays programs; and by actively par- ticipating in targeted partnerships like the Pilot Program to Conserve the Brazilian Rain Forest and the Critical Ecosystem Population pressure and scarcity of agricultural land often force farmers to cultivate steep hillsides, as in this Partnership Fund. The region has the watershed in Colombia's Cauca Valley. 38 ENVIRONMENT MATTERS * 2001 The Bank as a multilateral institution plays an important role in helping ad- dress regional environmental issues such ¶- as transboundarv water management, re- source protection, and knowledge j transfer for common environmental man- agement challenges. Examples of regional initiatives include projects focused on cruise ship waste management in the . x !- Caribbean; coral reef protection and -. ._ r transboundary corridor biodiversity pro- i tection in Central America; and ground- k water aquifer protection and large marine fisheries management in South America, - , such as the Biodiversity Overlays Pro- gram in Argentina (see Box, below). The Clean Air Initiative program was estab- lished to bring together municipal stake- liholde to share togexpermunincepa stand- vulnerable areas to impacts, has created reform measures to provide a better en- knowledge on improeing urban air pol- strong demand within the region for ac- abling environment for these invest- lution. In concert with the urban air pro- tions to address climate change and car- ments, and in many cases are being gram, some interventions on the bon emission reduction objectives, targeted at under-served poorer popula- transport side of the urbain air pollution Programs are tnder way to promote con- tions (for example, off-grid rural electri- challenge are being tested with projects versions to low- or no-carbon renewable fication projects). The largest growth in focused on land use pattern changes; energy technologies; encourage energy global programs is likely to occur in the modal and consumer behavior shifts; and efficiency investments; and promote car- climate change area over the next decade. technology upgrades. bon sequestration in wetlands, forests, and soils of both preserved and actively Actions stemming from new interna- Greater awareness of the impacts of cli- managed lands. Most climate change in- tional conventions on persistent organic mate change, and the need to adapt more vestments are being coupled with policy pollutants (POPs) and biological safety in food will also begin to be mainstreamed THE BIODIVERSITY OVERLAYS PROGRAM-FISHERIES MANAGEMENT into the Bank's agricultural and urban PLANNING AND BIODIVERSITY CONSERVATION IN ARGENTINA pollution work as global funding mecha- Argentina's coastal zone represents one of the richest and most productive temper- nisms are more fully defined. The ate marine ecosystems in the world. Recent studies indicate that overfishing has not Montreal Protocol Program, which has only depleted local hake (Merluccius hubbsi) resources almost to the point of extinc- been largel successful on the consumer tion, but may have also adversely affected the marine mammals and birds that feed b y on these fish stocks, as well as the larger marine ecosystem on which they rely. This side in supporting technology change and biological diversity supports an important tourism industry along the Argentine coast. institutional strengthening, will begin to Unless the incentives that drive the fishing industry are changed, efforts to conserve shift its focus to target residual produc- this globally important marine biodiversity area are likely to fail, and the basis for a sustainable tourism industry will be undermined. tion sites, in line with similar initiatives At the request of the Government of Argentina, the Bank has assisted with a study across the world. that would help evaluate the design and implementation of a fisheries management plan (Individual Transferable Quotas) to limit the fishing effort in the hake and other fisheries. An ecosystems/biodiversity overlay was added to this study to provide in- sights into the consequences of alternative strategies for fisheries management. Thlis airticle wvas preparetd by Teresa Serra, (202) 473-5754, fax (202) 676-9373, and Tom07 Lovejoy The expected major contribution of the overlay is to sensitize fishery policymakers to (202) 458-7837, of tile Latin Amnerican and the need for a comprehensive ecosystems approach to fisheries management and to Caribbean Regionial C';-.. Enzvironment Famiiily. help identify priority research needs to effectively support such an approach. LCR 7vebsite - JU t 1 . 1 .l l . l2,. ." . /e2Xte7r Fl23/l7c/l7e nsf JUIY 20tlO-J! TUhiflit * IFY20011I 39 -nj~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~F - > ;-d----o o :X;a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~----i Syrian - -- Lebanon A.R. _ 2 ,---Malta .'½ 9 ' 2.A, - Morocco iLVeir E as k and corth Iraq AfRc i t worricet r of Iran i t o g, b twl pr Jordan a Algeria Arab Kuwait" ab ped u t b e Libya Rep.of Bahroin- ero- Egjypt Qatar ,.-Y ~~~~~~~~~~~U.A.E./ Saudi C , * Rep. of Djibouti-_ IRD15f OCrOBER, 2001 he Middle East and North Africa in- The Middle East and North Africa is the world's richest re- giont in terms of oil and gas reserves, but the world's poorest cludes 20 'World Bank client coun- in renewable water- and arable land. It continues to rely ex- tries with a combined population of cessively on natural resources as a development strategy. dec0mlioned from 199.2 the 2sp ntiannually; inve nts mortadesine Water and oil are being tapped at unsustainable levels. The 290pmillifon in t 4 e 1999.)Th sbtnilinvestmenths; made sipctnce ocr o oenet.Inpreas fefrst region's couintries have the tollowing longstanding environ- the 1 960s on health, edutcation, basic infrastructure services, mna sus and more recently on family planning have beguin to show -:Water~ SeaCitil andit qtahitvl. Annual internal renewable water positive results. Between 1980 andi 1999, population growth resources per capita are declining in most countries (see declinied from 3.2 to 2 percent annually; infant miortality C/tart, top of niext page). Water allocation is a major droppedi from 95 to 44 per 1,000 live births; life expectancy concern for governments. In part because of efforts to increased from 59 to 68 years; ant secondary school enroll- increase food self-sufficiency, 88 percent of the region's ment increased from 42 to 64 percent. Froml1987 tol1998, the water resources are allocated to agricultural use, ment inrae frn 42 to6fecn.Fo 97t 98 h compared to 7 pDercent for domestic use. 0The degradation proportion of the population living below $2 per dav fell from of water quality is also J '1;L the water scarcity 30 to 20 percent. However, the region still faces large income problem. gaps. On average, the richest 20 percent account for more than 7 Lnd degradatian nd deser ifi eat/an. Less than 6 percent of 45 percent of total income, while the poorest 20 percent ac- total land area is suitable for agricultural use, and serious count for less than 7 percent. land degradation and recurrent droughts are shrinking 40 EN VI RONMIENT MATTERS * 21I Available internal renewable water resources are declining throughout the region STRENGTHENING EA CAPACITIES- 2,000 _ I THE METAP EXPERIENCE . ----- X - 01998 To improve the business climate while v 1,500 1992 achieving sustainable economic devel- 0 A opment, dear and transparent environ- Ug ,000 ooo-l I , _ _mental regulations and legal liabilities XA 1,0I S are needed. Esooi PIP E : * | : : In 1998, METAP initiated a program to .2 i assist Mediterranean basin countries r a'ra arei ~~~A rA*,,LP.acquire the technical and policy tools 0-O - i I I>s I I> ,^ix 7 necessary to establish Environmental 'N ~#' feip \ o .$- J Assessment (EA)systems. EA systems c,1& in Albania, Croatia, Egypt, Jordan, Tu- Source. World Resources 1994-95 and I198 99. nisia, Turkey, and the West Bank and Gaza were assessed, and the results were used to define actions to improve this area. Unsustainable agricultural and public institutions are generally national EA systems and to increase practices on rainfed lands have weak. The role of civil society in their coherence with international norms. A second phase, initiated in combined wvith natural factors-such environmental management remains 20}00, established an EA Center in Tu- as wind and floods-to cause a limited. nisia; extended the assessment of EA substantial loss of productive land systems to Algeria, Morocco, Lebanon, and desertification. More recently, the region's countries have Syria, and Yemen; undertook collabo- U Coastal dcgrad.ationt. Major coastal also had to face the environmental dimen- rative workshops; and established a cities are growing rapidly, and sions of their own economic liberalization network of EA directors. construction and pollution are efforts, of their free trade agreements with A third phase is now envisaged to test placing severe stresses on fragile the European Union, and of globalization. the feasibility of establishing full com- coastal ecosystems, a problem AsCOuntries move forward with trade lib. pliance with World Bank EA procedures so that responsibility for overseeing the exacerbated by a lack of integrated eralization and private sector develop- EA process can be shared with national coastal zone management. ment, the challenge is to assist them in governments in selected countries. * Urban an}zd iniduistrial polliutionl. Urban these transitions while ensuring a sustain- and industrial pollution causes able use of their natural resources. significant public health problems in Egypt, and initiatives to reduce urban the region. The transport, industrial, Regional environment pollution are being implemented in Leba- and energy sectors contribute to the non, Tunisia, and Yemen. In Algeria, degradation of air quality in major strategy Egypt, and Morocco, projects are under urban cities. Proper solid waste way that would strengthen environmen- disposal is largely lacking, and The Bank first prepared a regional envi- tal institutions and encourage greater industrial hazardous waste is rarely ronment strategy for the Middle East and public participation. The Mediterranean treated adequately. North Africa in 1995. This strategy was a Environmental Technical Assistance Pro- * Weak instituttional an1 d legalfira;nezvorks. milestone in guiding countries, the do- gram (METAP), sponsored bythe World Environmental problems are nor community, and the Bank toward ' ' ' e P Y ' ~~~~~~jor role in evaluating national environ- aggravated by weak regulatory and promoting sustainable development in mental strategies and helped establish enforcement mechanisms. Although the region. During the first five years of environmental impact assessment units the region has made progress by the strategy's implementation, invest- in various countries (see Box). Regional establishing ministries of the... ments in environment-related projects training helped strengthen the capacity environment and preparina environ- metleisaio n Nationa totaled $3.4 billion, including $2.3 billion of environmental institttions. mental legislation and National alctdt ae-eae rjcs hr Environmental Action Plans a t w Over the past year, the strategy has been (NEAPs), these institutions are was notable progress in protecting natu- updated for 2001-05, based on experience under-staffed, under-funded, and ral resources in Algeria, Egypt, Morocco, gained since 1995, internal consultations, generally lack political power. Cross- and Tunisia. Efforts to control industrial and external consultations with regional sectoral linkages between ministries pollution are ongoing in Algeria and stakeholders. JU-LY 2000-JUNE 2001 * (FY2001) 41 The Bank's strategic priorities and actions * v focus on three interrelated aspects of de- N N velopment-improving the quality of life, the quality of growth, and the quality of - the regional and global environment. Quality of life To help improve the quality of life, the strategy focuses on improving water re- source management, controlling land and ; coastal zone degradation, and reducing urban air pollution. Improving water resouirce managenmenit. Wa- ter scarcity and water quality stand out as particularly challenging issues in this mainly arid region. The Bank will: * Support integrated water resource management, with an emphasis on _ -e water-use efficiency * Finance cost-effective sanitation Red icing urban pollution. In order to im- Quality of growth measures and wastewater treatment w th plants, and develop guidelines for Phe ql o e n un s The Bank will support environmentally water re-use as well as hygiene e Bank will con ate on reducig air sustainable growth in the region through education activities pollution and improving waste manage- capacity building and strengthening the * Integrate a water quality monitoring ment. In the air pollution area, the Bank's private sector. It will focus on strength- and enforcement component into all strategy is to mainstream the environ- ening national legal frameworks to in- water and wastewater-related ment into the energy and transport cludeenvironmentandsocialsafeguards; projects, and strengthen the in- sectors. It will do so by conducting en- improving self-monitoring and enforce- volvement of local communities in ergy-environment reviews; developing ment mechanisms; harmonizing national this monitoring process. environmental guidelines; and encourag- EA regulations with international norms ing the development of legal and insti- (see Box, at right); working with the pub- Controlling land and coastal zone degrada- tutional frameworks to address market lic and private sectors to promote clean tion. The Bank will establish reliable failures in the energy sector In the trans- technologies; increasing public consulta- baseline data for water and soil contami- port sector, the Bank will encourage the tion and information dissemination; nation from agricultural runoff and de- phaseout of leaded gasoline, the imple- strengthening the role of governance in velop effective methods to control mentation of public awareness cam appropriate projects; involving NGOs, agricultural pollution; improve land andtheintroducfionofinspection civil society, women, and community management, and work with Bank-wide paigns, leaders in the design and implementation ' ~~~~~~and maintenance programs for vehicles. natural resources management networks of projects; and building the capacity of to pursue a unified program on land man- In the waste management area, the Bank institutions to develop early warning sys- agement; and provide a framework for will help develop the institutional and tems and preparedness plans for floods the participation of local communities in legal frameworks necessary to support in- and droughts. Activities to improve the the management of the natural resource tegrated waste management; introduce environmental capacity of the private sec- base. Further, the Bank will support affordable financing mechanisms for the tor would be designed through METAP coastal zone management strategies and collection, treatment, and disposal of or the Development Grant Facility (DGF). programs that emphasize coordinated waste; and increased awareness and the Such activities would include assisting measures and a preventive approach to participation of communities in all as- domestic banks in managing the new degradation. pects of solid waste management. risks and exposures to environmental 42 ENVIRONMENT MATTERS * 2001 Sr i. :1 I 0 * l MS 0 regulations; providing reasonable and into lending and nonlending activities ronment and trade, environment and transparent environmental regulations and assist countries in meeting their com- health, and environment and poverty that support both environmental objec- mitments under international treaties and reduction. tives and private sector development; and conventions. An analysis of the lending 3. Integrating environmental compo- continuing the work on environment and program matched with country priorities nents into targeted sectoral projects, trade already started under METAP. should be conducted to estimate the po- and integrating global environment tential for GEF projects, establish priori- issues into the Bank's operations. ties in everv country, and develop an 4. Developing Monitoring and Evalu- Qualty of the regional and global action plan. ation (M&E) systems and indicators environment to measure progress at the project, Im leme ntation program, and policv levels. In order To promote the quality of the regional and IlllIILaLIV to support the M&E systems, envi- global environment, the Bank will con- arrangements ronmental profiles will be developed tinue to support its regional initiatives for each country in the Region. and will integrate global environmental Given the region's diversity, actions to issues into its operations. implement this strategy update must be Partnierships. Partnerships will become an specified at a country level. Bilateral grant important cornerstone for the Bank's en- The Bank's involvement in three regional financing will be instrumental in acceler- vironmental assistance in the Region and programs-METAP, the Desertification ating the implementation of these actions. for the implementation of the proposed Initiative, and the Regional Water Initia- strategy. At the country level, the Bank is tive-will continue. METAP will remain Mainstrcamtiug the environment. The prepared to participate or convene a do- the major instrument for providing tech- following four tools will be used to main- nor-country coordination group on envi- nical assistance to strengthen the Bank's stream environment into the develop- ronment to achieve a greater integration environmental interventions. The Bank ment agenda: of efforts and reduce overlaps. At the re- will also contiue to strengthen partner- 1. Enhancing the quality and effec- gional level, the Bank will seek collabo- tiveness of countries' environmental ration between METAP activities and agencles in desiging and implemenng and social assessments by strength- other regional organizations and NGO ening national project approval networks. In the global environmental area, six systems; introducing strategic lei h k ll f projects that address greenhouse gas re- 1 d t of itsactivitiesbygraduallyshiftingfrom duction, three on biodiversity conserva- micro economic policies and sector stand-alone environment technical assis- tion, and two on coastal zone environmental assessments (see Box, tance (TA) projects to integrating environ- management are under preparation. New below); and training client countries mental TA components into sector GEF Operational Programs in transport to use these assessments. operations with well-defined outputs; and Integrated Ecosystem Management 22 Demonstrating the economic impor- discontinuing the preparation of addi- offer new opportunities to use GEF re- tance of a clean environment by tionalenvironmenthsectornotesor NEAP sources in transport, urban planning, and undertaking studies to assess the cost updates; and refocusing the functions and integrated rural development projects. A of environmental degradation (see responsibilities of the Regionfs environ- more systematic approach is needed to Box, below), and analytical work to ment staff towlstard providing upstream mainstream global environmental issues identify linkages between envi- technical and policy support; ensuring compliance with the Bank's environment THE COST OF ENVIRONMENTAL DEGRADATION IN and social safeguard policies; and im- THE MIDDLE EAST AND NORTH AFRICA proving the implementation of environ- mental components in v'arious projects. Under the METAP program, a project to assess the cost of environmental degrada- tion in the Region's countries is currently under preparation. Employing the most re- cently available tools and methodologies from environmental economics, the project has two aims. The first is to assess the damage costs associated with environmental degradation. These damage costs could be regarded as benefits lost due to environ- mental inaction. The second is to estimate the replacement costs necessary to re- This article was prepared by Maria Sarraf of the store the degraded environment. These two estimates will help policymakers to ,' East & NrtepAfricyrla giona'sR tral prioritize environmental interventions. Dlmi t, VVatcr Ai Envionmen Gro, . ~~~~~~~~~~~~~~Developiiiciit, Water & Enlviroinlenlt Groiip, This analytical work has already started in Algeria, Egypt, and Tunisia, and is planned (202) 473-0726, fax (202) 477-1374. to expand to include Lebanon, Jordan, and West Bank/Gaza. MANA 7t'ebsite - JULY 200O JUNE 2001 * (FY2001) 43 Afghanistan Pakistan Nepal Bhutan n Bangladesh indpa F ". 4 r~~~~~~~~~~~~ Sri Lanka Maldives 'BRO ]'S66 OCTOBER 20'01 -India or the past decade, South Asia has of compliance with environmental regulation. In this context, reform agendas, including deregulation and fiscal eif it- been the second fastest growing re- often conflict with political institutions and interests. gion in the world, after East Asia. Yet gion i the wrld, fter Est Asi. Yet The region faces eniormous environmental problems, includ- the region continues to face fundamental constraints on sus- ing resource enornu environmention, includ ing resource depletion and ecological degradation, indoor and tainable development. About 40 percent of the world's poor urban air pollution; lack of access to clean water supplies and live in South Asia, mostly in rural areas. In spite of reforms sanitation; toxic and hazardous agro-industrial waste genera- dating to the early 1990s, countries in the region are still fac- o d d a a tion and disposal; and vulnerablitv to natural disasters. These ing fiscal imbalances; limited progress on trade liberalization; poor enabling and judicial environments for the private sec- people. Estimates suggest that premature deaths and illness tor; and lack of accountability of public institutions. Poor eco- linked to major er.vironmental health risks account for one nomic management is also reflected in the large subsidies and fifth of the total burden of disease in the region, a toll compa- the lack of economic pricing of natural resources, including rable to that of malnutrition (15 percent) and larger than that water, energy, and agricultural land. In addition, many state- from anv other preventable risk factor. In India, inadequate owned industries-for example, steel, fertilizer, and petro- water supplv and sanitation are estimated to account for 9 chemicals, as well as private manufacturing industries such percent, and indoor air pollution for 6 percent, of the envi- as leather, textiles, sugar, and pulp and paper-have prospered ronmental health burden. Air pollution causes approximately as a result of strong government protection policies and lack 750,000 premature deaths annually in India, 160,000 in Paki- 44 ENVIRONMENT MATTERS * 20(11 stan, and 130,000 in Bangladesh, of which strategies across the region. Second, on- salinization, waterlogging, and ground- about 60 percent are from indoor air pol- going work on urban air pollution is seek- water depletion. Watershed management lution. ing the most cost-effective ways to reduce and land reclamation projects are impor- pollution levels that are not only among tant parts of the Bank-financed rural port- Significant natLral resource concerns in the highest in the world, but are worsen- folio in Pakistan (along the Indus basin, South Asia include water quality degra- ing (see Box, below). Third, the extensive and in Baluchistan) and India (see Box, dation and local and regional water scar- groundwater arsenic contamination in top of page 46). Community forestry and citv; dwindling forests, coastal wetlands, Bangladesh is eliciting a strong govern- forest rehabilitation activities have suc- freshwater bodies, and fisheries; soil deg- ment and Bank-supported response, in- ceeded in improving access of the rural radation resulting from nutrient deple- cluding mitigation, medical treatment, poor to forest resources in India, particu- tion and salinization; and poorlv and community education. larly in Madhya Pradesh, and in Nepal. managed water resources. Observers note Fisheries and coastal area management that while many rural villages look simi- In terms of livelihoods, our strategy are important issues in Bangladesh, lar to how they looked decades ago, the places the highest priority in the areas of where several projects address the liveli- surrounding land degradation is often water resources and watershed manage- hoods and biodiversity aspects of water pervasive and severe. ment. In the absence of improved irriga- resources management, as well as pro- tion management, water conservation, mote greater coastal mangrove protection South Asia stands out as the one region and water harvesting in many arid and to reduce the disastrous impacts of ma- of the world most vulnerable to natural degraded parts of South Asia, small- jor cyclones. disasters such as floods, cyclones, and holder farmer livelihoods will fall to un- earthquakes. Such disasters affect the re- acceptable levels. Irrigation practices are Strategies for reducing vulnerability to gion regularly. From 1990 to 1998, the re- financially unsustainable due to subsi- natural and environmental disasters in- gion accounted for over 60 percent of dies. Further, thev are often also environ- clude support for changes in land-use disaster-related deaths worldwide, and in mentallv unsustainable due to land planning, disaster preparedness, commu- the past two years, the Orissa cyclone and Gujarat earthquake have claimed thou- sands of lives. REDUCING EMISSIONS By Two-STROKE ENGINES IN SOUTH ASIA Urban air pollution is a leading cause of premature deaths in South Asian cities. Ve- lmpiroving the quality hicles with two-stroke engines, which are half of all vehicles, contribute significantly to the problem. Two- and three-wheelers with two-stroke engines are popular be- of Deople! S lives cause they are cheaper than their four-stroke engine equivalents. However, they are l I also a significant source of fine particulate emissions, the most damaging type of Because South Asia is among the most airborne pollutants-responsible for about 200,000 premature deaths per year in South populated and impoverished regions in Asian cities. Some steps have already been taken to address the problem by ban- ning certain older vehicles, introducing cleaner engine types, and introducing some the world, our environment strategy fo- cleaner lubricants and fuels. For example, compressed natural gas (CNG) has been cuses foremost on improving the quality introduced in New Delhi. Still, it is important to understand the cost-effectiveness and of life of the poor bv improving their feasibility of introducing different types of measures to reduce fine particulate emis- health and livelihood systems and reduc- sions. ing their vulnerability to changes in en- A recent World Bank report, Improving Urban Air Quality in South Asia by Reducing vironmental conditions. Emissions from Two-Stroke Engine Vehicles, analyzes different technical and policy options for reducing emissions from two-stroke engines. Two immediate simple solu- tions-using the correct type and concentration of lubricant and carrying out regular Our environmental health focus can be maintenance-would significantly reduce emissions from two-stroke engines while seen in three major areas. First, the Bank saving drivers money. As for new vehicles, introducing price and trade policies to is supporting innovative analytical work encourage a switch to four-stroke engine vehicles, as well as installing catalytic con- verters, would greatly reduce tailpipe emissions. Finally, a strong public awareness on the role of environmental health fac- campaign-involving industry, government, unions, and others-to promote these mea- tors such as water supply and sanitation sures is needed. The newly approved Air Quality Management Project in Bangladesh and reduced air pollution in achieving is actively engaged in the implementation of these strategies in Dhaka, as are several improved household health. The research activities in India (including the air quality management component of the Environ- findings from work in Andhra Pradesh mental Management Capacity-Building Project and the Mumbai Urban Transport are guiding health and infrastructure Project) and a region-wide air quality initiative funded by ESMAP. JULY 2000-JUNE 2001 * (FY2001) 45 SUSTAINABLE WATERSHED MANAGEMENT IN INDIA Focus STATES IN INDIA The South Asia Region is implementing a new generation of Natural Resource Man- The Bank's recent Country Assistance agement (NRM) projects focusing on the needs of the poor living on marginal lands Strategy for India continues its "focus- and degraded watersheds. These projects integrate community-led development with stale approach," begun about three innovative social, technical, scientific, and Geographic Information System (GIS)-based years ago. Under this program, focus monitoring and evaluation approaches. states enter into a targeted program of The Integrated Watershed Development Project (Hills 11) in India uses participatory structural adjustment operations that approaches to increase productive potential and promote sustainable watershed man- address fiscal and governance reforms. agement in five Indian states (Haryana, Himachal Pradesh, Jammu and Kashmir, Under a successful reform scenario, Punjab, and Uttar Pradesh) in the fragile and highly degraded Shivaliks Hills. The reforming states also receive substan- project covers 2,000 villages in a 200,000-hectare area. Village development com- tial assistance through sector invest- mittees (VDCs) have been formed and given the responsibility for identifying and menl loans The three current focus implementing priority watershed interventions in their villages. Project activities in- men ane thr crrenthou clude micro-watershed treatments such as vegetative barriers, improved cropping states are Uttar Pradesh, Andhra systems, horticulture, and silvipasture; fodder and livestock development (artificial Pradesh, and Karnataka. insemination for genetic improvement; veterinary health improvement; and fodder production); and rural infrastructure. The incorporation of environmental con- cerns into the focus-state approach is The medium-to-long-term aim of these investments is to improve rural livelihoods based on three main operational strat- through stronger community management of natural resources on a sustainable ba- sis. Some villages are already experiencing increased water availability, reduced soil egies: erosion, improved vegetative and forest cover, higher crop and horticulture yields, * Strengthening the environment and increased milk production. Project activities also help reduce risks from natural agencies to address both (a) the and environmental disasters. For example, improved water management reduces vul- specific environment-related issues nerability to droughts. arising out of the Bank's focus state program, such as power sector reform or watershed management nity involvement and education, water panded the Bank's role in achieving bet- issues, and (b) other priority en- conservation and management, building ter environmental information, monitor- vironmental issues that directly codes, and emergency-phase interven- ing, and enforcement, through both impede poverty reduction, such as tions. Through activities related to cy- projects and policy dialogue (see Box, at weak enforcement of pollution clones, coastal flooding, and earthquakes right). In addition, adequate safeguards regulations. in Bangladesh and India (Orissa, Andhra are essential to ensuring quality of * Mainstreaming the environment by Pradesh, and Gujarat), we are also inten- growth, in addition to the promotion of agreeing with task teams on areas , ~~~~~~~~~where environment-related inputs sifying our work on social protection strategic sectoral and regional environ- w help focsent-rat pr ts measures to protect people who are vul- mental assessments. Examples include on poverty outcomes, such as nerable to natural disasters. sectoral assessments for energy reform health, livelihoods, and vulnerability. projects in India and regional assessments The environment-related discus- mproVin Jthe quality for watershed and social fund projects in sions may well be cross-sectoral, r ii Pakistan, India, and Bangladesh. In ad- such as in the example of rural of gro dition, more attention is being given to health, which brings together issues 1 ~~~not only in the health sector, but in integrating social and environmental as- Since equitable and sustainable economic s u infrastructure, education, and sessments because of the intertwined na- growth remains essential for substantially of the issues involved. Combined energy. ture of the of live of * Achieving efficiencies across the impsroviatheg qualrty poflifies ofd thvesp environmental and social sectoral assess- World Bank program-and poten- our strategy supports policies and invest- ments for transport, urban, and rural de- tially across other investment ments that support quality growth At- velopment projects are now routinely activities being undertaken by the tention to environmental and social being conducted in South Asia. Further- state government in applying impacts play a strong role in ensuring the more, there is increasing emphasis on the Bank's safeguard policies-by sustainability not only of World Bank-fi- environmental monitoring and evalua- for example using sectoral and regional environment assessment nanced projects, but of all investment ac- tion, taking advantage of improved infor- methodologies that look more tivities in a country. The shift in Bank mation management tools and human broadly aT Issues than would be The lending operations toward a greater em- resources. Finally, the Bank is placing a case for single prolect asz.essmenTs. phasis on programmatic lending has ex- strong emphasis on local ownership and 46 ENVIRONMENT MATTERS * 2001 capacity building among its clients in South Asia to help them strengthen their environmental safeguard systems and practices. Enhancing the quality of the global and regional commons The degradation of the region's global commons can constrain economic devel- opment because of its huge opportunity cost and threat to political security. The region's water resource systems, for ex- e ample, are highly interdependent. Our focus is on achieving global environmen- tal objectives as a byproduct of promot- ing local development benefits. W-. * The management of shared river ' . basins and seas poses an important challenge for South Asia. The Bank has been involved in the past in helping to facilitate a robust agreement between India and W;_ Pakistan on the Indus River basin. The region would derive substantial rural and urban communities and (a) finding effective mechanisms to benefits from greater cooperation industrial users. Small-scale channel available global resources to among riparians on other renewable energy supplies may be local communities in order to internationally shared river basins, the most cost-effective solution to provide adequate incentives to primarily the Ganges-Brahmaputra- providing reliable electricity in rural change patterns of resource use, and Meghna basin. areas not connected to the grid. The (b) broadening the scope of the GEF U South Asia is poised to become a regionisalsoparticularlyvulnerable portfolio to promote biodiversity major contributor to greenhouse gas to the impacts of climate change conservation over whole land- (GHG) emissions. Although per because of its extensive low-lying scapes. capita emissions in the region are coastal areas. A recently completed U The ongoing Montreal Protocol currently very low, with total study on climate change adaptation Program in South Asia has continued production of carbon dioxide in Bangladesh found that the to expand. In India, approximately representing only about 5 percent of financial cost of adaptation is 3,000 tons of ODS chemicals have global emissions, they are increasing relatively low given that many of the been phased out. In addition, a major about 7 percent per year-twice the planning and investment priorities initiative to phase out production of world average. To reduce the growth are consistent with development all CFCs in India (one of the world's in GHG emissions, continued power practices and priorities that have largest remaining producers of these sector reform-with widespread already been identified. chemicals) began implementation in efficiency gains in transmission, * The custodians of South Asia's 2000. distribution, and end-use-and biodiversity are largely the rural continued sector reform is required. poor, who often depend directly on This article zras prepared biy Carter Brardizlii of the Southl Asia FE7virotiioezet Sector Uniit, (202) In addition, opportunities exist for these resources for their livelihood 458-2752, fax (202) 522-71664 S66 oR ubsite - further renewable energy use by and sustenance. Our efforts focus on .u. i. 'lorldbaizk.or'/sar/sa.ozsf JULY 2000-JUNE 20111 * rFY2001i 47 A s the World Bank's U Recognizing, in every private investment investment, the value of armandtheworld's sound corporate gover- largest multilateral source of nance structures ,loan and equity financing for Seeking to be transparent, private investments in devel- accountable, and equitable in the development pro- oping countries, the Interna- cess. tional Finance Corporation (IFC) is determined to play a IFC's management uildiur, lead role in the drive for sus- o 13 lead role in the drive for ul i a tainable private sector invest- system for Sustainable ment. Founded in 1956 and environmental and owned collectively by its 175 member countries, IFC is a glo- social issues in D)evelopm enI1t bal investor and advisor that inyestments promotes sustainable projects Roadm ap that are economically viable, fi- IFC's approach to environmen- nancially and commercially tal and social issues in project I FC's Strategy to sound, and environmentally financing is evolving from en- and socially responsible. IFC suring compliance to the de- Ensure Envronmental and believes that economic growth velopment of a sustainable Social Responsibility is crucial to poverty reduction; development strategy To en- that such growth is grounded sure compliance and account- in the development of entre- ability, IFC has developed a preneurship and successful number of integral manage- private investment; and that a ment components for its in- conducive business environ- vestments and activities. ment is needed for private I strongly believe that businesses to thrive and con- IFC has a well-developed pol- tribute to improving people's icy and procedural framework. private sector investment lives in developing countries. Its environmental and social and sustainable growth in the How does IFC do this? IFC safeguard policies are closely harmonized with those of the developing wol is fudaena leads by example by: developing world is fundamental * Taking educated risks- World Bank, with minor ad- to achieving greater equity in IFC's investments in justments to adapt them to to achieving greater equity in frontier sectors and coun- IFC's private sector context. the development process." tries have long had both a IFC also adheres to a policy tedeo.sron d sti raond against Harmful Child Labor strong demonstration Peter L. Woicke, effect and Forced Labor. IFC applies Executive Vice President, IFC m Adding value through a the World Bank Group's Pollu- core commitment to tio1l Prevention and Abatement promoting high environ- Handbook (1998) to its invest- mental and social stan- dards in all of our projects ments, with high-level man- and by listening actively agement clearance required for to stakeholders and their any variation. To provide guid- concerns ance for sectors for which no 48 ENVIRONMENT MATTERS * 2001 guideline is available in the vestments,localpublicconsul- ly important, that they are which commit IFC's cli- Handbook, IFC has developed tation and disclosure require- mutually supportive, and that ents to comply with IFC's its own guidelines, including ments, and the improved they benefit from joint man- safeguard policies and worker health and safety integration of social analysis agement oversight. A direct guidelines and, where guidelines. into the environmental assess- reporting line continues from appropriate, to follow a ment process. These require- the director of the Environ- specific action program to IFC's Environmental and So- ments are integrated fully into ment and Social Development ensure compliance; and cial Review Procedure (ESRP) IFC's business processes and Department to the executive monitoring of environ- guides IFC staff in the applica- project cycle. vice president of IFC. This re- mental and social perfor- tion of the policy and guideline porting framework ensures in- mance of projects as part framework to environmental IFC management continues to dependence from operational of IFC's overall portfolio and social analysis of IFC support building significant line management, as does a supervision. projects. The ESRP, adopted in environmental and social man- single clearance function. 1998, contains important de- agement and review capacity. velopments in IFC's approach IFC believes that environmen- With the addition of more en- to financial intermediarv in- tal and social issues are equal- vironmental and social review ( A W staff, IFC has developed and implemented a Quality Project COMPLIANCE ADVSR7A UOSMAN Management system, which.. Management system,.which IFC's status as a public insti- ensures that specialists have :.~ ~ ~ ~ ~ ~ ~~~ ~~~~~~~acs toteaprpiaemn tution requires that it establish s | .7 .- ~~~~~~~~~~~access to the appropriate man- agement tools to make in- a significant mechanism for ac- |^ -as formed decisions and to countability to its member promote consistency in projet . countries and civil society, par- processing. An internal audit ticularly with respect to its en- prcesig.Anineralaui vironmental and social per- program regularly reviews the performance of both the sys- formance. Perhaps the most in- serformance ~ ~ ~ ~ sec of IFCth thevsys _. - t 1 tem and the individual project novative aspect of IFC's envi- s managers. IFC also applies a ronmental and social accounta- risk rating to apportion super- bility is the establishment of a vision resources to the highest Compliance Advisor/Om- priority areas. budsman (CAO)-an account- I ||; -_ability office designed to . ;1 1 IFC works closely with its cli- provide non-judicial, practical, ents to ensure compliance with problem-solving approaches to safeguard policies and pollu- contentious aspects of projects. tion standards. This is done This office is fullv independent through a number of manage- of the managements of IFC and 9A, | _ ~ | .N: , ment tools, including: the Multilateral Investment * Managementand/oraction Guarantee Agency (MIGA) a>, =. plans (for example, for and reports directly to the pres- . ... ,, _...| w x = . environmental manage- ident of the World Bank ment, resettlement, or i_ . . corrective action)Group. The current CAO is _ _ ~~~~~~~~corrective action) To ensure compliance with IFC and World Bank environmental guidelines, * Environmental and social Meg Taylor of Papua New Tashkent-based Elma Cheese-an Uzbek-Dutch joint venture-trains its The CAO has thr workers in occupational health and safety standards and has built its own conditionalities in project Guinea. a ee wastewater treatment plant investment agreements, roles: JULY 2Coo-TUNE 20111 * (FY2001) 49 G Responding to complaints t __ by persons affected by projects and attempting to - l resolve the issues, using a flexible, problem-solving SO T _b CA - l approach ~.-_6;s""" a * Providing independent L L-t # tJ advice to the president __ ^ and senior management of IFC and MIGA * Overseeing audits of IFC's and MIGA's environmen- tal and social perfor- mance, both on svstemic issues and in relation to IFC's investment in South Africa's Spier Estate-a refurbished combination of winery, hotel, and conference center- demonstrates its commitment to sustainable development. Local communities share in Spier's vision. An organic farming sensitive projects. project is underway that aims at helping previously landless black farmers run their own operation. The CAO Office receives input CAO investigations and ad- Department, which finances the group draws on IFC's own and feedback through its Ref- vice. IFC also welcomes and water, wastewater, and solid investment resources and, erence Group comprising receives feedback from exter- waste management projects; where appropriate, conces- NGOs and civil society, busi- nally interested parties, includ- and IFC's Renewable Energy sional funding from sources ness and industry, and IFC/ ing civil society and NGOs. and Energy Efficiency Team, such as the Global Environ- MIGA management. which is housed in IFC's Pow- ment Facility. The Environ- IF F and er Department. mental Markets Group also IFC recognizes the importance undertakes special initiatives of maximum transparency and environmental In 1996, IFC created the Envi- such as identifying projects to solicits feedback to improve on ronmental Projects Unit to act reduce greenhouse gas emis- its performance. IFC relies on Projecs Jas a catalyst and incubator for sions under the Kyoto Proto- its disclosure policy and pub- In addition to seeking to miti- projects with specific environ- col. lic consultation standards to gate and manage the impacts mental benefits and goals. In Loki ah d ensure that interested parties of its traditional projects, IFC developing projects for IFC's 00kng ea have an opportunity to be has established units within own account, this unit-now The transition to heard and to exert influence several investment depart- renamed the Environmental with respect to specific projects ments to focus on identifying, Markets Group-operates as a sustainability and policies. IFC receives on- structuring, and financing en- cost center that provides tech- IFC is launching a sustainabil- going feedback and evaluation vironmental projects. Exam- nical analysis and financial ity initiative that has the poten- internally from its Operations ples include the Utilities Group structuring services to prepare tial to significantly increase the Evaluation Group and through within IFC 's Infrastructure projects for funding by the rel- development impact of its pri- evant investment depart- vate sector investment activi- FOR ADDITIONAL INFORMATION ments. More recently, the ties. Sustainability for IFC Environmental Markets Group means incorporating a more A full list of IFC's environmental and social policies, guidelines, has begun to encourage the opportunistic, added-value, ESRP and publications is available at http://www.ifc.org/enviro/ identification and implementa- market incentive-oriented ap- Information on the IFCIMIGA Compliance Advisor/Ombudsman tion of eco-efficiencv improve- proach to complementing the (CAO): http://www.ifc.orglcaof ments in mainstream IFC existing regulatory-based ap- Environmental Projects Unit (EPU) activities: http://www.ifc.org/ projects. In supporting projects proaches embedded in our epu/ with environmental benefits, safeguard policies. 50 ENVIRONMENT MATTERS * 2001 As it moves beyond compli- responsibility as a lead invest- IFC tact, inln,s;ttePryato Saea,aaal ance, IFC will not compromise ment organization in the de- its minimum standards. Rath- veloping world and in er, it recognizes that achieving identifying the key impacts of an appropriate balance among its physical operations or lnvestin8 in People: the financial, economic, social, "footprint." iustttintinti (.nimunittes thrc.. and environmental dimeon- Improved Business Practice sions of sustainability will de- A primary focus will be on pend on the circumstances and howv actions that create envi- locality of the particular invest- ronmental or social value or IFC provides valued advice and ment. This is not a one-size- improve corporate governance guidance-such as rne recently fits-all philosophy, but an can also create financial value published Community Development Guide-to its clients and the private intention to operationalize sus- for IFC's clients. This financial sector generally. tainable development in a way value can take the form of: that maximizes IFC's overall U Tangible cost reductions, development impact and role. through eco-efficiency or cleaner technology The sustainability initiative I * Improvedrevenues,through will encompass all the major better access to global components of IFC's opera- markets, securing supply tions. In its core investment chains, or market differen- business, work is underway to tiation and "branding" This is an area in which IFC has many benefits to IFC's clients. identify the significance of en- U Reduced risks, throuLgh, emerged as an important Furthermore, we believe that it vironmental, social, and gov- for example, strengthened change agent among the pri- will also benefit IFC by: ernance factors in sector and positive interactions vate sector investment institu- U Differentiating IFC from investment strategies. At the with local communities tions operating in the other financial institutions transaction level, we are ex- U Better access to financing developing world. Our advice in our ability to add value ploring ways to equip invest- U Access to intellectual capi- is sought by other internation- U Motivating our staff ment teams to bring added tat and innovation through al financial institutions, com- * Allowing us to operate in value to our clients in these staff attraction and reten- mercial banks, and the high-risk areas with re- areas, while also ensuring that tion. business community at large. newed confidence in our they reap maximum business IFC guidance documents on role and ability to achieve benefit. This requires a sophis- We believe that sustainable the value of public consulta- sustainable outcomes ticated understanding of the business practices converge tion and community develop- * Contributing positively to cause and effect of these factors with good management and ment are publications that are IFC's mission to reduce on business performance in that, as a result, sustainable widelyreferredtobypractitio- poverty and improve emerging markets, and an abil- businesses will he the long- ners and businesses. people's lives. ity to transfer emerging private term winners. As investors, sector sustainable practices maximizing long-term share- The building blocks of this into the developing country holder value is one of our transition are currently being context of its operations-a goals. It simply makes com- put in place through internal logical and evolutionary exten- mercial sense: any business discussions, and substantive This article was prepared by Shawzv sion of JFC's traditional role in that puts its supply chain at consultations with all stake- Miller of lCEs Corporate Rclationzs ensuring financial and eco- risk or ignores reputational is- holders are expected to com- Un8it (202) 473-1404.fax (202) 974- enurn 4384, andt Gleni Armnstrong of lEC's nomic sustainabilitv. sues is not acting in the inter- mence in late 2001. Environment and Soc ital Develop- ests of its shareholders or n..'tit Departmenc'1t (902) 473-7038, Workisalsounderwaytocare- bottom line, let alone other Webelievethatthe journeyto- faC's con0tri l7387io to thieb Wsdorl fully identify IFC's role and stakeholders. ward sustainability will bring Bank's Environment - JULY 2001-)UNE 2001 * (F}2001) 51 N%ewpsU ates * Environment The World Bank's Environment Week annually sponsors training sessions, debates, and open meetings for its staff and interested groups. This year, events were spread throughout the Week month of June, vastly increasing outreach to internal and external audiences. The event was launched with a keynote address by eminent scientist, environmentalist, and broadcaster David Suzuki on "Economics and Ecology: Setting the Real Bottom Line." Workshops, many of which were open to the public, focused on specific topics, including lessons from the environmental performance review conducted by the Bank's Operations Evaluation Department; the World Bank's Environment Strategy; work in the regions; persis- tent organic pollutants (POPs); and strategies to combat air pollution. There were several panel discussions. A panel on biodiversity conservation in the 21st Cen- tury was chaired by Peter Seligmann, CEO of Conservation International, and included Bank World Bankstaff member, Maria Sarraf, President James D. Wolfensohn; Tom Lovejoy, chief biodiversity advisor at the Bank; Orin helps to clean up Anacostia River's Smith, CEO of Starbuck,; and Edward 0. Wilson of Harvard University. Another panel, Kingman Island. which was chaired by Environment Department Director Kristalina Georgieva, focused on the implications of climate change for sustainable development-globally and in the Bank's ^ client countries. It included Bob Watson, World Bank chief scientist; Svend Auken, Denmark's Minister of Environment and Energy; Robert 0. Mendelsohn, Yale University; David Victor, - > s Council on Foreign Relations, New York; Michael Grubb, Royal Institute of International Affairs, UK; Atiq Rahman, Bangladesh Centre for Advanced Studies; and Benito Mueller, Oxford University. This year's events also included a significant community outreach component. On June 25, 2001, over 200 World Bank volunteers spent the day removing trash and debris from two neglected islands in the Anacostia River in Washington, D.C. Joined by Bank President James On hand to lend help and give moral D. Wolfensohn, D.C. Mayor Anthony Williams, representatives from the Mayor's office, and support were Kristalina Georgieva, local NGOs, the volunteers endured heat, humidity, and persistent mosquitoes to clean up Director, Environment Department, Kingman and Heritage Islands. They managed to haul away more than 8 tons of garbage. The World Bank; Robert Boone, President, cleanup was another step in D.C.'s plan to restore the islands as part of the larger Anacostia Anacostia Watershed Society; James Waterfront Initiative. The Anacostia Watershed Society applied for a grant through the Bank's Wolfensohn, President, World Bank and Washington D.C.'s Mayor,Anthony Community Outreach Grants Program in April, and was awarded $15,000 to aid in its resto- Williams. ration efforts. The August 2001 meeting of the parties to the Framework Convention on Climate Change and * Kyoto the Kyoto Protocol in Bonn had significant implications for the World Bank and its clients. Protocol With the exception of the United States, all parties approved a number of core elements at the Bonn meeting. There was agreement on flexibility mechanisms; land use, land use change, Impications and forestry activities; funding for developing countries; and compliance. of Bonn Flexibility mechanisms can be used to augment a country's "significant" domestic actions to reduce greenhouse gas emissions. Since 1999, the World Bank's Prototype Carbon Fund (PCF) has explored how such mechanisms might work. Companies and governments have contrib- uted financially to the PCF, which then uses Fund resources to support projects designed to 52 ENVIRONMENT MATTERS * 2001 produce emissions reductions that are consistent with the emerging framework for Joint Imple- mentation (Jl) and the Kyoto Protocol's Clean Development Mechanism (CDM). Participants in the PCF receive a share of the emission reductions, which are verified and certified in accordance with carbon purchase agreements reached with the respective countries "hosting" the projects, and used toward their Protocol obligations. It was agreed that industrialized countries could adopt afforestation, reforestation, forest, grassland, and agricultural land management activities as part of their domestic actions to meet their commitments. Within this framework, caps were negotiated for the amount of credit that a country can claim from forest management activities. The amounts of the coun- try-specific caps continue to be a point of friction in the negotiations. For the first commit- ment period from 2008 to 2012, only afforestation and reforestation activities will be eligible for CDM projects in developing countries. The total credit that an industrialized country can claim from such activities has been limited to 1 percent of its GHG emissions in 1990. In the funding area, three new funds have been established to help developing countries. The _ Special Climate Change Fund will be available to developing countries to address adaptation, technology transfer, emissions reductions, and economic diversification. The Least Devel- oped Country Fund will help the poorest countries establish national adaptation programs. The Kyoto Protocol Adaptation Fund will support "concrete" adaptation projects and pro- grams. All three funds are to be managed by the Global Environment Facility (GEF). The European Union, Canada, Iceland, New Zealand, Norway, and Switzerland already have committed to providing $410 million per year by 2005, which includes their GEF replenish- ment contributions, for climate change activities. In the compliance area, it was agreed that there will be no financial penalty for noncompli- ance. However, a penalty of 1.3 times the shortfall in achieving the reduction goal of the first commitment period will be added to the redluction that has to be a(hieved in the subsequent commitment period. The legally binding nature of this pendlty for noncompliance is still under discussion. Destruction of tropical forests in Pet6n, Guatemala. * Nile Basin Through the Nile Basin Initiative (NBI), the World Bank is taking an active role in facilitating regional cooperation in the management of a major transboundary resource. The Nile Basin Initiative covers 10 countries and is characterized by extreme poverty, instability, rapid population growth, and environmental degradation. Urgent environmental issues include aquatic weed infestations, soil erosion, ancI sedimentation. Established in 1999, the NBI represents the first time in history that all 10 nations have come together to discuss common goals on how best to fight poverty in the region and achieve sustainable development through the equitable utilization of the Nile Basin's water resources. In June 2001 in Geneva, international donors, development agencies, and representatives from the Nile's 10 riparian countries met to pledge financial and political support to the NBI. - -v -_ q: The meeting in Geneva was the first working session for the International Consortium for Cooperation on the Nile (ICCON) and also marked the launch of the newly formed ICCON S >-:- ~^- * - Consultative Group, which is chaired by the World Bank's Vice President for Africa, Callisto Thlid R,;'tl Madavo, and Vice President for the Middle East and North Africa, Jean-Louis Sarbib. The JULY 20.1-IUNE 2001 * (FY2001) 53 program for the Nile includes implementation of a basin-wide program of research, capacity building, and technical assistance, as well as the detailed preparation of cooperative sub- basin investment programs in the Eastern Nile and the Equatorial Lakes regions. The first phase of this investment program is anticipated to amount to about $3 billion. The develop- ment partners expressed initial financial support of at least $140 million to finance the full program. For more information: http://www.worldbank.org/afr/nilebasin * $25 million The Critical Ecosystem Partnership Fund (CEPF) took another major step forward in June 2001 when the John D. and Catherine T. MacArthur Foundation awarded the Fund a grant of $25 grant for critical million. ecosystems Launched in August 2000, the CEPF focuses on biodiversity hotspots, highly threatened re- gions where an estimated 60 percent of all terrestrial species are found within only 1.4 percent of the planet's land surface. In addition to the MacArthur Foundation, the members of i t the Fund are Conservation International, the Global Environment Facility, and the World Bank. The new grant brings the assets of the Fund to $100 million. The Fund's goal is $150 million. The grant from MacArthur was made to Conservation International, the managing partner of the CEPF. The CEPF provides financial support, technical expertise, field knowledge, and information to r mostly nonprofit organizations working to conserve biodiversity in developing countries. The CEPF Donor Council thus far has approved the spending of more than $11 million in grant E iLr ~~~~~resources, divided among priority areas in West Africa, Madagascar, and the Vilcabamba- Ambor6 corridor straddling Peru and Bolivia. Sifaka lemur, Madagascar. More than a dozen species of lemur, most of which are endemic to Madagascar, are considered vulnerable, endangered, or critically threatened. In September 2002, the 10-year follow-up to the 1992 Rio Summit will take place in U Preparations for Johannesburg, South Africa. The overall goal of the Rio+ 10 Summit will be to review achieve- ments since 1992 and attempt to regenerate the global commitment to sustainable develop- Rio+ 10 ment and action on Agenda 21. The Bank is expected to play a significant role, both in the preparatory process and at the Summit itself. The Bank's contributions to the upcoming Summit include several key ele- ments: e The 2002/3 World Development Report-Sustainable Development with a Dynamic < , Economy-will explore how poverty and marginality are closely associated with fragile ; / ecosystems and stressed social structures. 9w - * Technical background papers on the Bank's strategic directions for the future, such as measuring and financing sustainable development, poverty and environment, food se- -. curity and natural resource management. e WBI activities include (a) a new Global Dialogue on Sustainable Development series, 1. which will focus on topics high on the Johannesburg agenda; (b) a collaboration with * GLOBE, in a series of workshops for parliamentarians that will enable participants to take an active role in the preparatory process; and (c) special training programs, courses, and policy services on Summit-related topics. 54 ENVIRONMENT MATTFRS * 2001 m Additionally, Bank senior management and technical staff will participate in five re- gional preparatory meetings and three global programs and contribute technical exper- tise in various roundtable discussions. And finally, the Bank will prepare toolkits to help guide work at the project implementation level, provide advice on how to pro- mote sustainable development, on payments for environmental services, on strategic en- vironmental assessment, and on indicators. U Greening the In addition to helping its clients improve their environmental performance, the World Bank Group has examined its own activities and is working to reduce its environmental "footprint." Bank "Greening the Bank Group" was the subject of a letter to all staff from Bank President James Wolfensohn in September 1996. The letter called for specific steps to be taken, including an annual independent environmental audit of the World Bank Group to monitor progress and compare the Bank's efforts to other similar organizations. The first such audit, conducted in Waste generated 1998, was co-funded by the World Bank Staff Association. The audit's results have guided by the World Bank conservation efforts, which have also benefited from active staff involvement and suggestions Group at Headquarters through the Staff Association's Environmental Working Group (EWG). Efforts have covered a has diminished substantially... range of physical plant and other workplace environmental issues. Notable achievements include: 2,5 00 -1 * Substantially increasing the proportion of the Bank's waste that is recycled. 2,000 2,000 1 * Reducing paper use by increased use of electronic communication and record-keeping. ' 1,500_ and by procuring printers with double-sided printing capability. O l ooo' - * Promoting a transition from incandescent light bulbs to fluorescents, and then to com- aI ,000- I o.0 ' pact fluorescent (CF) lighting, thus significantly reducing energy use. Use of light-sensi- 500- C tive dimmable CFs that provide the required number of foot-candles of light on the work surface using less electricity in daytime are being piloted in one of the Bank's building. FY96 FY0I * Providing more parking, lockers, and shower facilities for staff bicycling to work. * Making fair-trade coffee available in Bank cafeterias. . .. and recycling There have also been numerous individual initiatives. For example, in the spring of 2001 the of paper has increased Styrofoam packing materials from 10,000 new computers the Bank had ordered were destined 1,200 ' for a landfill. Bank staffers found a Pennsylvania company that was willing to pick up the .> - - - ~material in Washington. The company grinds up the material and uses it in repaving state roads. The transportation costs were about $900 more than the payment to the Bank for the 800' Styrofoam. The Bank's Information Solutions Group agreed to pay for the transportation of the 600 - _ - Styrofoam. The Bank's General Services Department then quickly mobilized to find enough 2 600 storage space to handle a large truckload of foam. GSD staff also removed any tape or other o400 -- extraneous materials, so that the recycler would accept the foam. In the end, three large ,... ,OO~ _ trailer truckloads of foam were recycled. 200t - Greening topics addressed are enormously broad, from reusable chopsticks and labeling OT - FY96 F I hydrogenated oils in the cafeteria; to planting trees around the Bank's main complex; to FY96 FY0I relaxing the dress code to reduce cooling and heating costs. Numerous additional measures are under study, including participation in Metrochek, the Washington area's transit incen- tive program, which provides a monthly financial rebate to area employees to use mass transit; implementing Energy Star features on personal computers throughout the Bank; and further improving waste separation. Efforts on green procurement are also ongoing (see Environment Matters 2000). JULY 2001 JUNLE 2001 * (FY2001) 55 The Bank's Environment Portfolio ver the last decade, the World Core Environment Portfolio: Bank's activities in the environ- Net Bank commitment, by Region mental area have evolved from LatnAmerica& tthe Caribbean primarily stand-alone projects to- 36% ward a broader portfolio that in- cludes other sector projects with primarily / Middle East Europe and orhArr environmental objectives, as well as projects with CEnt Nralh Arii minor environmental components. This "green- 7% j ing" of the Bank's portfolio has required a change South Asia in the methodology for measuring the true ex- 12% tent of environmental lending. W East A sia Sub-Saharan Th7e "core" portfolio. &eicAfrica Understanding environmental lenIding Sadloenv-36% 6% mg emnmed ng ~Stand-alone envi- &-aiicArc -Insurc-udo -n-ally- -defin-iw- - I -C.,- ronment projects "B land focus on natural Core Environment Portfolio: ib~ tal resource manage- Net Bank commitment, by subsector SectowrProjects with ! ! vr eoremaae 51blin ~ . I . w fti ment ("green pro- Environment jects"), pollution/ Resetdement adjustment Sector projects with waste manage- tio.ai ment ("brown pro- envir jects"), and institu- Naural% tional development. At the end of the 2001 fiscal Environmental year, this "core" environment portfolio consisted _ stitutional of 95 active projects amounting to $5.1 billion in Bank lending. Pollution/waste management 26% Almost three quarters of active projects, by lend- ing volume, are in two regions: East Asia and the Active projects onWy. Pacific (EAP) and Latin America and the Carib- bean (LCR). Nearly half (46 percent) are natural Bank financing in GEF projects resource management projects. Pollution/waste International projects comprise 26 percent of the core portfo- waters Biodiversity lio, while 6 percent of projects address institu- 6% conservation tional development. 22% The global portfolio. The World Bank is an imple- menting agency for the Global Environment Fa- cility (GEF). GEF projects focus on biodiversity conservation, climate change, international wa- ters, and ozone depletion. As of March 2001, there were 134 full-size (more than $1 million each) Climate GEF projects, amounting to a total of $7.3 billion change in total project costs, of which $1.5 billion is Bank 72% 56 ENVIRONMENT MATTERS . 200l financing. Nearly three quarters (72 per- cent) of Bank financing in GEF projects GREENING SECTORAL PROJECTS is for climate change issues. In addition, there are 46 medium-sized GEF projects Environmental components (major and minor) in sectoral projects were identified based (loans under $1 million), which are con- on criteria established with the assistance of experts in each sector. The value of each centrated in Latin America and the Car- environmental component was then estimated based on the breakdown of project costs. ibbean and in Sub-Saharan Africa. These Agriculture. Environmental components were estimated based on the funds allocated projects amount to nearly $145 million, to environmentally sustainable activities in forestry. watersheds, and biodiversity; agri- including $37 million in Bank commit- culture and livestock; irrigation and drainage; fisheries, coastal zones, and aquaculture; ments. and environmental policies and institutional capacity. Electric Power and Energy. Environmental components promote clean transport fu- The core portfolio, however, captures els; fuel switching; technology transfer; strengthening environmental management ca- only part of Bank lending for the envi- pacity in the energy sector; removing market barriers to renewable and energy efficiency investments; reducing gas flaring and other GHG-intensive activities; facilitating carbon ronment. The core portfolio of institu- trading and joint investments to reduce emissions; and facilitating environmentally sus- tionally defined "environment" projects tainable extraction, production, processing, transport, and distribution of oil, gas, and is easily measurable, but capturing other coal. sector projects with environmental ob- Urban Development. Environmental activities in urban projects include the provision of jectives or environmental components basic environmental services, including access to water supply and sanitation, drain- requires a detailed investigation of the age, solid waste collection, health education, and reduced indoor air pollution. Bank's overall portfolio. Water Supply and Sanitation. Environmental activities in this sector include water quality improvement and monitoring; water pollution abatement; wastewater and sewage man- Toward this end, the Environment De- agement; standards setting, regulation, and enforcement; environmental policy interven- partment recently reviewed the entire tions; and institutional strengthening and public awareness. portfolios of four key sectors-agricul- ture, electric power and energy, urban development, and water supply and panded to examine projects in other sec- dence that projects are increasingly in- sanitation (see Box, above right). These tors such as health, education, and trans- corporating environmental objectives sectors were chosen based on their rel- portation. This will also help identify and components, there are currently few evance to environmental issues. The ex- potential for future incorporation of en- monitorable indicators to measure the ercise covered almost 800 projects, both vironmental issues into sectoral project success of this mainstreaming. The de- active and closed, between 1990 and design. velopment of monitorable indicators for 2000. The results show an unequivocal different sectors would serve as a trend toward increased environmental A system for monitoring environmental sectoral scorecard for both quantifying- lending in sector projects. mainstreaming in the Bank's portfolio is and qualifying-environmental main- being developed. While there is evi- streaming in World Bank projects. The cumulative value of both core envi- ronmental operations and environmen- Environmental 20,000 -- tal investments in other sectors (both Endirng ta 800 _ active and closed projects) since 1990 World Bank 16,000 amounts to almost $18 billion (see Chnrt, 2 14,000 - at right). 1990-2000 'E 1 2,000 _ _ 10,000 - - : 10,000 - - - Environent components 8,00)1 in other sector projects Looking ahead 6,00.1 To date, the review of environmental 4,00: components in sectoral projects has 2,00:1 looked at onlv four key sectors. To bet- ter assess existing environmental N Indides both 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 attdve and ciosod peojeets. Fiscal year mainstreaming, the review wvill be ex- _a_____and_____d_poi______Fiscal_year JULY 2001-JUNE 2001 * (FS 2001) 57 Regional environment portfolios The region's active environmental portfolios consist of core environment projects as well as other sector projects with primarily environmental objectives. GEF and Montreal Protocol projects are also included. Sub-Saharan East Asia Europe and Africa and Pacific Central Asia Region Region Region $0.97 billion* $6.37 billion* $2.57 billion* Institutional Institutional Institutional 9% ~ ron2% 4% 25%X Green Green BrownBrw Gulenvirobal 57nviob p" 10% 9% Active projects only. A Active pojeccts only. Acnve p"ojects only. Sub-Saharan Africa (AFR). In this re- East Asia and Pacific (EAP). Pollution/ Europe and Central Asia (ECA). Like gion, more than half (55 percent) of waste management-related projects East Asia, projects in this region also the projects are "green"-focused on constitute 57 percent of the region's focus primarily on pollution and natural resource or rural environ- environmental portfolio. "Green" waste management (59 percent). Re- mental management. Ethiopia's Con- projects account for almost another cent "brown" projects include the servation of Medicinal Plants project, third of the portfolio. In fiscal 2001, Liepaja Solid Waste Management for example, seeks to initiate support four "brown" projects were ap- project in Poland, and municipal for conservation, management, and proved. Two projects in China-Liao wastewater projects in the Russian sustainable utilization of medici- River Basin and Huai River Pollution Federation and Hungary. Recent nal plants for human and livestock Control-are designed to enhance "green" projects include Kazakh- healthcare. A quarter of the region's water quality management in river stan's Syr Darya Control and North- projects are "brown," addressing pol- basins. Vietnam's Ho Chi Minh City emn Aral Sea project, which seeks to lution/waste managemnent issues. Environmental Sanitation project will sustain and increase agriculture and Africa also has a number of global lead to sustainable improvements in fish production in the Syr Darya ba- projects. Recent examples of GEF public health through improvements sin and improve ecological and en- projects include Benin's National in drainage and wastewater services. vironmental conditions in the delta Parks Conservation andManagement Indonesia's Western Java Environ- area. and Malawi's Mulanje Mountain ment Management project deals with projects-both of which deal with formulating provincial environmen- biodiversity conservation. tal strategies and improvements in solid waste management. 58 ENVIRONMENT MATTERS * 2001 The Bank's Environment Portfolio This article atas prepared by An/iaui Acliarnja and Alethea Maricl T. Al',,........ of the Environmient Departmenlct, (202) 458-5298, fax (202) 477-0565. Latin America Middle East South and Caribbean and North Africa Asia Region Region Region $3.74 billion* $1.04 billion' $2.30 billion* Institutional 8% Institutional Institutional _ _ 19% _-- 17%o Brown Brown 32% I t\3 6 Green 1 4 7 4 36% Green ~ ~ ~ ~ ~ ~~Gre Greent>_G Glba Global Brown 48% 3%65% Gree Gobal Global 41% 10% 8% Active projects only. v Active projects only. ' Active projects only. Latin America anid Caribbeant (LCR). Al- Middle East and Nortlh Africa (MNA). Solth Asia (SAR). "Green" projects most half of all environment projects Solid waste, sewerage, and water account for 41 percent of the South in this region are focused on natural supply and sanitation projects pre- Asia Region's environmental portfo- resource and rural environmental dominate in this region, accounting lio. For example, the Karnataka Wa- management. Recent examples in- for about two thirds of the active en- tershed Development project aims at clude the Panama Land Administra- vironmental portfolio. In fiscal 2001, improving the productive potential tion project, which aims to enhance the Yemen Rural Water Supply and of selected watersheds. On the natural resources conservation Sanitation project aims to expand sus- "brown" side, which comprises about through the consolidation of the na- tainable rural water supply and sani- 32 percent of the portfolio, the Air tional system of protected areas and tation service coverage to mostly Quality Management project in indigenous people's territories. The poor rural dwellers in 10 governor- Bangladesh is intended to reduce ve- Ecuador Rural Water Supply and ates. The Solid Waste and Environ- hicular emissions in metropolitan ar- Sanitation project is focused on help- ment Management project in the West eas. The project will support setting ing the poorest populations in rural Bank and Gaza will implement sound standards, enforcing pilot programs communities through investments in solid waste management systems. that demonstrate cleaner technolo- sustainable water and sanitation ser- gies, and implementing air quality vices. On the global front, two monitoring. In the global area, Paki- projects in Mexico-the Mesoameri- stan's Protected Area Management can Biological Corridor project and project is seeking to conserve glo- the Indigenous and Community Con- bally important habitats and species servation of Biodiversity project in three protected areas. (COINBIO)-both aim to conserve areas of high biodiversity. JULY 2001-JUNE 2001 e (FY2001) 59 ince 1998, the World Bank World Development Indicators. Environ- make it impossible to capture environ- has been publishing a mental indicators are also published in mental trends worldwide with a small comprehensive set of en- thLileGenDaBok number of indicators. The indicators vironmental indicators in The diversity of conditions across coun- shown here illustrate some of the main its annual publication tries and limitations in data availability environmental themes. Share of Annual Nationally Access to Genuine GDP per unit co, electricity Population deforest- protected Freshwater improved Access to Population GNI per savings of energy use emissions per generated by density. rural ation areas resource per water source sanitatian millions capita % GDP PPP$tKg oil capita coal peopelesq km % chonge, % of land caita % % total - _Countriy name (1999) $. (1999) (1999)equ tl~(998) Mt (1997) -% arable land 1990-2000 area m~3 _totclbp~_____po.. Albania 3.4 930 -8.3 10.3 0.5 -. 345 0.8 3.1 12,621 _____ Algeria __ __30.0 j9540 6.0 5.4 - 3.4_ . 159 -1.3 _ 2.5 477 94 73 An~gola__-_ 12.4 220 .. 3.8 0.5 .. 268 0.2 ~ 6.6 14,8 90 38 44 - Argentina __ __ 36.6 7,550 8.2 7.3 3.9 1.9 IS 0. 8 . 8 9 84 1 ~ 79 85 - Armenia 3.8 490 -15.9 4.3 0.8 - 234 -1.3 7.6 2,783 ____ Australia 19.0 ~ 20,940 1 1.4 4.1 17.2 80.0 5 0.0 7._1 18.559 10 0 100 Austria 8.1 25,420 16.1 6.7 7.8 9.1 205 -0.2 29.6 10,381 100 100 Azerbaijian ~ 8.0 560 - -24.4 I .5 4.1 . 205 -1.3 5.5 3,796 ___________ Bangladeshi_ ___ 127.7 370 9.6 8.9 0.2 .. 1,204 -1.3 08 94297 53 Belarus 10.0 2 50 15.5 2.5 6.1 ..49 -3.2 6.3 5,781 100 Beliu 10.2 ~ 24650 1 8.1 4.3 10.5 20.6 35 0.2 Benin __ 6.1 380 3.2 2.4 0.2 _ _ .. 27.3.0 42063 23 Bolivia - __ 8.1 990 3.4 4.0 1.4 . 5 . 44 3,3 96 Bosnia and Heir7egovina 3.9 . 21. ._ 1.2 33.7 436 0.0 0.~5 9,~662 _ ____ Botswana __ __ 1.6 _ 3,040 ~ 6.2 .. 2.2.231 0.9 . _18.5 ~925~6 Brazil __168.0 - ~ 38 12.2 6.5 1.9 2.2 62 0.4 44 32687 77 _Bulgara 82 I30 .0 2.0 6.1 44.8 60 ---0.6 4.5 2 193 100 too Burkina Faso I11.0 240 0.3 .. 0.1 -. 260 0.2 10.4 1,592 ..29 Burundi 6.7 120 -7.2 .. 0.0 .. 779 9.0 5.7 539 Cambodia 11.8 260 ... 0.0 .. 23 06 1. 05530 18 Cameroon __14.7 600 8.0 3.5 0.2 .. .17 09 45 123 62 . 92 Canada ___30.5 . 20 140 1_M4.0 3.~2 16.6 19.1 IS5 0.0 9. 157 100 100 Central African Rpublic 3 5 290 1.8 .. 01. 0.1 0- . 93 60 3 1 Chad 7.5 . 210 -7.4 .. 0.0 .. 159 0.6 9._1 5744 _ 27 29 Chile 15.0 . 4,600 11.3 5.4 4.1 32.9 II I 0.1 18.~9 61 ~793 954 97 China 1 5 780 29.4 4.0 2.9 75.9 689 -1.2 6.4 2,257 75 38 H~g~ongKo .._iina 6 7 - 24 710 21.0 8.5 3.7 65. 1 . . Colombia __ 41.5 2, 170 -0.9 7.9 1.8 88 59 04 .0 139 9 1 85 Congo, Oem. Re9~.. 49.8 . .. 2.8 0.1 .. 506 0.4 4.5 20,472 45 20 Con0goRep-___ 2.9 520 0.7 1.8 0.1 . 630 0.1 4.5 ~291 000 51I Costa Rica ___36 30 70 9.5 1.6 .. 824 0.8 142 338 98 96 Cot dIlvoie __ _ _ 5. 670 18.5 .. 0.9 .. 281 3.1 6.2 4-998 77 Croatia ___ __4.5 4,1 . 39 444.9 133 -0. 1 7.5 15,995 95 100 Cuba I__ ___11.2 .. . . 2.3 ..77 -1.3 74 30095 95 z ehRpublic _ _ 10 3 500 19.5 3.2 12.2 71.6 84 0.0 1. 5 Denmark _____ 5.3 ~32050 17.4 6.4 io1.9 57.6 33 -0.2 32.5 Il 127 100 Dominican_Repkublc ____ 8.4 1,_920 11.8 7.5 1.7 4.5 280 0.0 ~31.5 ~24 99 79 71 Ecuador __ ___ 12.4 1,380 7.2 4.3 1.8 .. 284 1.2 43.6 ~35611 I 71 - 59 Egypt, Arab Re.p....___ 62.7 __ 380 _ 7.0 _ 4.7 2.0.. 197 -4 0.8 930 95 94 El Salvador___ __ 6.2 1,910 -4.7 6.5 1.0 . 582 4.6 0.3 U 2876 74 _83 Eritrea __ ______ 4.0 200 -25.8 .. . . 68 03 50 225 46 13 Estonia ___ ___ .4 _ 3350 12.9 _ 2.5 13.1 93.5 40 -0.6 1 1.8 ~ 8874 _ Ethiopia _ _ ___ 62.8 _ 100 -1H. 2.1 0A1. 1 . . 5 24 - IS Finlanid 5.2 2470 1. . 1.0 19.3 81 0.0 6.1 21,~293 100 100 France ___58.6 ~ 241 70 14.6 5.0 6.0 7.4 79 -04 135 3-5 Gabon 1.2 3 28 0 11.I1 ~ 4.5 3.0 ..76 0.0 2.8 135,716 70 21 Gambxia, The .1.3 330 -4.8 .. 0.2 .. 430 - 1.0 2.3 6,395 62 37 Georgma __-__5.5 62.0 . 4.7 - 0.8 . 27 00 28 ,60 76 99 Gerany82. ____256_30 _ 14.9 _ 5.5 10.4 54.2 89 .0- 216 60 ENVIRONMENT MATTERS * 2001 tw R'4 Share of Annual Nationalty Access to Genuine GDP per unit co, electricity Population deforest- protected Freshwater improved Access to Popu(cition GNI per savings ofenergy use emissions per generated by density, rur(it ation areas resource per water source sanitation millions capita % GDP PPP$1Kg oil capita coal peopie/sq km % change, % of land capita % % total Country name (1999) (1999) (1999) equi (998) mt (1997)--- % arable land 1990-2000 area M3 botal-pop POP Ghana 18.8 400 -1.2 4.6 --- 03 - 3 19 - 1.7 _ 4.9 2 8_32 64 63 Greece 10.5 12,110 1 1.2 5.7 - 8.3 70.3 149 -0.9 3.6 6 5 4-8 - Guatemala 11.1 -1,680 --1.0 &I 0.8 - 482 - 1.7 -16.8 12,121 92 85 Gu'inea 7.3 490 3.6 -0.2 550 0.5 _ 0-7 31.170 48 58 - Guinea-Bissau 1.2 170 -6.4 -- 0.2 298- 0.9 - - 22,791 49 47- Ham 7.8 460 -9-3 5-3 0.2 895 5.7 0.4 1,551 46 28 Honduras- -- 6.3 770 16.5- 4.5 0.8 179 1.0 - 6.0 1 5,21 1 90 - 77 -- Hungary-- 10.1 4,640 19.4 4.3 5.9 26.0 76 -0.4 TO 1 1,919 -99 99 India - - -997.5 440 9.0 4.3 [A 75.4 438 -0.1 4.8 - 1,913 88 31 Indonesia -- - 207.0 580 15.8 4.6 1.3 28.8_ 695 1.2 10.6 13,709 -- 76 66 Iran, Islamic Rep. 63.0 1,600 -5.5 3.3 4.9 - 145 0.0 S. 1 2.040 95 81 1 raq__ 22 8 4.2 104 0.0 0.0 _1,544 85 -79 Ireland 3.8 21,450 32.2 6.4 --10.2 40.4- 114 -3.0 - - 0.9 - 13,859 Israel &I 1 63 10 - 3.2 5.7 10.4 69.8 153 -4.9 I 5.8 180 Itay__ 57.6 20,170 14.5 7.4 7.4 I I -0_ _ 231 -0.3 7.5 2 906 Jamaica 2.6 2,400 10.9 2.2 4.3 664 1.5 0.1 3,618 71 84 Japan 126.6 32,030 16.3 6.0 9.6 19.1 599 0.0 6.8 3,397 _ -- --- Lordan 4.7 1,630 -3.0 3.6 3.5 - 485 0.0 3.4 148 96 99 Kazakhstan -14.9 - 1,290 -8,2 1.8 --&O 710 22 -12 2.7 -T,-342 - 9 1 99 Kenya 29.4 - 360 0.6 2.0 0.3 - 494 0.5 6-2 1,027 -49 86- Korea, Dem Rep_ 23.4 - - 11.4 - 548 0.0 2.6 __3,293 - - Korea, Rep. 46.9 8,480 4.0 -- " 42.8 532 0.1 6.9 -,490 92 63 Kuwait 1.9 28.2 821 -5.2 1.5 Kyrgyz Republic 4 9 300 1.5 4.0 1.4 235- -2.6 3.6 11559 77 100 Lao PDR S. I 290 - - 0.1 483 0-4 - 55.251 90 46 Latvia 2.4 2,500 11.2----- 3.4 3.3 1.7 41 -0.4 13.0 V4,561 Lebanon 4.3 ---3 ,730 3.7 4-3 262 0.3 0.5 1,124 100 99 Lesotho 2.1 - 570 466- 0.0 0.2 2,470 91 _ 92 Ubya. . 5 4 8.4 39- -1.4 0.1 148 72 97 Lithuania 3.7 2,640 7.2 2.7 4.1 40 -0.2 10.0 6,732 Macedonia,-FYR 2.0 1,660 - 5.5 133 0.0 7.1 3,464 99 99 Madagascar 15.1 250 0.0 0.1- 408 0.9 1.9 -22,39I 47 42 Malawi 10.8 200 -9.0 - 0.1 - 437 2.4 11.3 1,724 57 77 Malaysia 22.7 3,370 34.2 3.9 6.3 3.2 537 1.2 4.6 25,539 Mali 10.6 240 5.6 0.0 160 0.7 3.7 9,449 65 69 Mauritania 2.6 390 -16.3 1.2 233 2.7 1 7 387 37 33 Mauritius 1.2 3,540 15.6 - I-S 684 0.6 7.7 -1,873 100 99 Mexico 96.6 4,440 113 51 4.0 9.8 98 1.1 3.5 4,742 86 73 Moldova 4.3 410 4.6 2.2 2.4 10.9 129 -0.2 1.4 -2 ,733 1 00 Mon&ol,a 2.4 390 3.3 67 0.5 1 1-5 14,632 60 30 Morocco. . 28.2 1,190 14.8 10.2 1.3 55.3 140 0.0 - 0.7 -1 ,062 82 7S Moarnbique 17.3 220 1 3 2-0 OA 339 0-2 6.1 -12,486 60 43 Myannnar 45.0 - 0.2 340 1.4 D 3 22,404 68 46 Namibia 1.7- 2,100 3.3 - 143 0.9 12.9 744 77 41 Nepal 23.4 220 0.8 3.5 0.1 - 700 1.8 7.8 8,989 81 27 Netherlands 15.8 25 140 1 9.2 4.9 I 0.5 29.9 186 -0.3 6.8 5,758 100 100 New Zealand 3. 8 1 4 OO 0 4.0 8.4 3.9 35 - -0.5 23.6 85,811 - - Nicaragua 4.9 400 -18.3 4.0 0.7 87 3.0 7.5 38,668 79 84 Niger 5 190 -4.1 0 1 163 3.7 7 7 3097 59 20 Ni3Zeria 1 23.9 250 -18.3 -1.2 0.7 248 2.6 3.3 2,260 -57 6 3 Norway 4.5 33,470 19.2 4.8 15.6 0.2 -123 -0.4 6.8 88,117 100 - Oman 23 8.2 2,785 0.0 16.1 426 39 92 Pakistan 134.8 460 0.6 4.0 0.8 0.7 394 1.1 48 892 88 61 Panama 2.8 3,060 21.2 6.5 2.9 244 1.6 19.1 52,437 87 94 Papua New Guinea 4.7 810 - 0.5 6,379 04 0.0 170,258 42 82 Paraguay SA l 570 3.7 5.4___ 0.8 108 0.5 3.5 17,541 - 79 95- Peru 11.3 7.8 1.2 189 0.4 2.7 69,203 77 76 Philippines 74.3 1-060 12.3 7.0 IJ 22.9 573 1.4 4.9 6,450 87 83 P.I.rd 1 2.9 3.2 9.2 96.3------ 97 -0. 1 9.6 1,630 7.0 5.4 31.0 206 -1-7 6.6 7,208 JULY 2001-JUNE 2001 (FY2001) 6 1 Share of Annual Nationally Access to Genuine GDP per unit CO2 electricity Population deforest- protected Freshwater imnproved Access to Population GNI per savings of energy use emissions per generated by density, rural ation areas resource per water source sanitation millions capita % GDP PPP$/K.g oil capita coal people/sq km % change, % of land capita % % total CountTrviapme (I1999) $.(1999) (1999) equic (1 998) mt (1 997) % aml ln 19-20 ae m O -fppp opp Puerto Rico 3.9 .. . . 4.5 .. 2,990 0.2 2.1 Romania 22.5 I1 5 1 0 6.I 3.5 4.9 28.0 107 -0.2 4 .7 1.648 58 53 Russian Federation 146.2 1,750 2.2 1.7 9.8 1427 00.1 3 6799 Rwanda 8.3 - 240 -7.7 .. 0.1 . - 929 3.9- 14.7 758 41 8 Saudi Arabia 20.2 6,900 -13.3 2.1 _14.3 ..82 -0.0 - 2.3- 1 19 95 100 Senegal 9.3 500 7.6 4.4 0.4 . 219 07 11.~3 4,243 78 70 Sierra Leone 4.9 - 130 -14.6 . - 0. I .. 649 2.9 I. I 32.328 28 28 Singapore 4.0 24,190 41.2 3.2 - 21 6 . 5,700 0.0 4 .8 .. 100 1 00 Slovakeuib,ic 5.4 3.770 19.6 3.2. 7.1 2.3.5 157 -0.3 22.6 15,382 100 100 Slovenia 2.0 9.980 1 1.1 4.4 7.8 35.5 - 427 -0.2 6.0 9 318 100 South Africa 42.1 3,160 10.5 3.3 7.9 92.6 - 140 -0. 1 5.4 1,187 86 86 Spam _~~~~39.4 14,800 15.9 5.9 6.6 32.6 - 63 -0.6 - 8.5 2,844 Sri Lanka 19.0 830 15.5 8.0 0.4 .. 1,664 1.6 13.5 2,626 83- 83 Sudan 29.0 3 10 -. . 0.1 ..112 1.4 3.6 _532 757 62. Sweden 8.9 26,750 - 17.1 3.6 5.5 2.0 _ 53 0.0 8.9 20,096 100 100 Switzerland 7.1 38,230 18.9 7.0 6.0 -. - 553 -0.4 26.9 7,427 100 100 Syr n Arab Republic- 15.7 1,020 --3.9 3.3 3.3 . 151 0 .0 - 2 _845 80 90 Tatikistan 6.2 1 70 8.1 -. 0.9 .. 583 -0.5 4.2 l2,763 Tanzania 32.9 260 -1.5 1.1 0.1 .. 595 0.2 15.6 2,703 54 90 Thailand 60.2 2,0 58 5. I 3.8 18.3 281 0.7 13.9 6.804 80 96 Togo ~4.6 3 10 -0.7 .. 0.2 . 13 3. . 6854 34 Trinidad and Tobago I1.3 4,750 4.8 I .1 I 7.4 .. 460 0.8 6.0 ..86 88 Tunisia 9.5 2,090 18.1 6.9 2.0 1.I16 -0.2 0.3 434 Turkey_ ~~~64.4 2,880 15.4 5.8 3.5 32.1 70 -0.2 (.3 _3 162 - 83 91 T-rkmen,st.n - 4.8 690 .. 1.2 6.7 .. 160 0.0 4.2 9 ,520 _ 58 100 Uganda _ _ ~21.5 320 . -2.0 -. 0. I-. 357 _ 2.0 9.6 3,073 _ 50 75 Ukraine - 50.0 770 7.5 1.2 7.3 26.5 49 -0.3 - 1.6 2,795 United Arab Emirates 2.8 . .. 1.8 32.0 .. 1 0l -2.8 - 71 United Kingdom 59.5 23,590 7.7 5.4 8.9 34.5 _ 100 -0.8 20.7 2,471 I100 100 United States ____ 278.2 31,92 8.3 3.8 20.1 52.7 36 -0.2 13.4 8,906 100 100 Urugua)t 3 ~~33 6,240 5. I 9.9 1.8 ..24 -5.0 - 0.3 I 7,809 98 95 - Uzbekistan 24.4 640 -4.6 1.1 4.4 - 4.1I 336 -0.2 2.0 6 68 85 100- Venezuela 23.7 9, 730 1.7 2.4 8.4 1.20 0.4 36.6 35686 84 74 Vietnam 77.5 _ 370 11.4 4.0 0.6 16. I _I 080 -0.5 3.1 II 497 - 56 73 West Bank and Gaza 2.8 1,800 -.. . ____. .. . ___________ Yemen, Rep. 1 7.0 360 -19.4 3.7 10 .. 838 1.8 - 241 69 45 Yuaoslavia, FR(SerbialMontenearol 10.6 .. .. .. ~~~~~ ~ ~~~~~4.7 ... 0.0 3.3 1 770-9 Zambia 9.9 320 -8.7 1.2 0.3 0.5 III 2.4 - 8.6 1I,739 64 78 Zimbabwe 11.9 530 5.1 3.3 - 1.6 71.5 240 1.5 7.9 _ ,6_80 - 85 68 Low Incom 2 412.3 410 IS.7 3.4 L I .. 508 0.8 5.7 6,196 76 -45 Middle Income 2 6~ _6.7 _I910 22.7 3.9 3.8 .. 583 0.1 5.2 9~,540 81 59 Lower Middle Income 2,029.9 I .09 0 26.6 3.6 3.4 . 637 -0. 1 4.9 7,688 80 52 Upper Midl Inoe688 450 19.7 4.3 5.2 ..187 0.5 5.8 15,462 87 81 Low and Middle Income _5 08_.0 1,200 21.6 3.7 2.5 .. 542 0.3 5.4 _Z,949 79 52 East Asia& Pacific 1,836.6 1,010 28.0 4.2 2.8 .. 691 0.2 7.0 .. 75 _47 Europe & Central Asia 474.4 J-990 23.9 2.3 6.9- 32.5 25 -0.1 I 3.3 _12,797 9 0 Latin America & Carib. 508.0 3.640 IS. I 5.7 2.8 .. 251 0.5 7.4 _ 27.934- 85 78 Middl as&NAfia 200 2,000 38.1 3.5 4.0 .. 534 -0. 1 2.2 1,147 89 _83 South Asia ,393 440 10.5 4.S 0.9 .. 537 0.1 4.5 ~ 2 854 87 36 Sub-Saharan Africa 642.8 490 2. 24 08.. 369 0.8 6.2 _ _P,248 55 55 - HijghIncome 897.1 26,430 .. 4.6 12.8 1___.78 -0. I 10.2_- Europe EMU 292.8 22,250 15.7 5.6 8.2 _ -27.4 141 -0.3 8.l 31,769 62 ENVIRONMENT MATTERS * 2011 About the data that previously reported. Due to space limi- Definitions and data sources tations, the subtotals for natural and plan- tation forest do not appear here; the Population includes all residents who are present regardless Genuine savings is an indicator of eco- of legal status or citizenship-except for refugees not perm(a- nomic and environmetal sustainability aggregate numbers may underestimate the nentJy settled in the country of asylum, who are generally derived frm the natinal accouns. it mea- rate at which natural forest is disappear- considered part of the population of their country of origin. derived from the national accouiits. It mea- ~~~~~~~~The values shown are midyear estimates. (The World Bank, ing in some countries. ~~~~~United Nations; the data are for 1999). sures the change in value of the total in nsm onre.GNI per capita is gross national income (fiormerly called gross wealth-produced, natural, and human national product or GNP) divided by midyear population. GNI capital-upon which development de- Conservation efforts have traditionally fo- is the sum of gross value added by all resident producers plus pends. ~~~~~~~~~~~~~~~cused on protected areas, xvhich have any taxes (less subsidies) that are not included in the valuation ped.The link to sustainable development of output plus net receipts of primary income (employee cm is direc, in tha a declie in totl wealth grown substantially in recent decades. Des- pensation and property income) from nonresident sources. implirest anta eln nttlwat ignating land as a protected area does not GNI per capita is in current US dollars, converted using the ipisadecline in future welfare-this is World Bank Atlas Method; see the statistical methods in Wanld the standard economic definition of necessarily mean that protection is in force, Development Indicators 200 1. (The World Bank, OECD, United unsustainability. however. Many protected areas are only Genuine domestic savings are equal to net domestic say- "paper parks." The dlata reported here are legs, plus education expenditures and minus energy depletion, for protected areas of at least 1,000 hect- mineral depletion, net forest depletion, and carbon dioxide GDP per unit of energy use provides a damage. (The World Bank; the data are for 1999.) measure of energy efficiency Differences in ares. For small Countries that may only have GDP per unit of energy use is the purchasing power parity this ratio ovr time and acoss countries protected areas less than 1,000 hectares, (PPP) GDP per kilogram of oil equivalenteof commercial energy this ratio over time and across countries ~~~~~~~~~~~~use. PPP GDP is gross domestic product converted to interna- reflect in part structural changes in the this definition will result in an underesti- tional dollars using purchasing power parity rates. An interna- mate of he exten and nu ber of potected tional dollar has the same purthasing power over GDP as a U.S. economy, changes in energy efficiencyv f mt fteetn n u of ofpoetd dollar in the United States. (The International Energy Agency. areas. the World Bank; the data are for 1998) particular sectors, and differences in fuel Carbon dioxide emissions per tapita include emissions from mixes. the burning of fossil fuels and the manufacture of tement. Almost one third of the world's population tThey include carbon dioxide produced during consumption of Carbon dioxid emissions acount for the faces water scarcity or water stress, espe- solid, liquid, and gas fuels and gas flaring. (Carbon Dioxide Carbon dioxide emissions account for the ~~~~~~~~~~~~~I nformation Analysis Center; the data are for 1997). largest share of greenhouse gases, which cially in Africa, the Middle East, Latin Share ofelectricity generated bycoal refersstothe contri- America and the Caribbean, and large bution of coal, as an input. in the generation of electricity. (The are associated with global warming. An- pamrica andSo the Csaribbedan, and lrsharg International Energy Agency; the data are for 1998) thropgeni CO,emissions result primarily Rural population density is the rural population divided by ter resources are based on run-off into riv- the arable land area. Rural population is estimated as the differ- from fossil fuel combustion and cement er n ehreof groundwater. These ence between the total population and urban population manufacturing. In combustion, different er n ehre(World Bank estimates; the data are for 1998). f ossil f uels release dif ferent amounts of CO, estimates are based on different sources and Annual deforestation refers to the permanent conversion of refer to different years, so cross-country natural forest area to other uses, including shifting culoivasion, for the same level of energy use. Burning ~~~~~~~~~~~~permanent agriculture, ranching, settlements, and infrastruc- oil releass about 50percent moe CO, than comparisons should be made with caution, cure development. Deforested areas do not include areas logged oil elesesabou 50perent oreCO,tha Because data are collected intermittently, but intended for regeneration, or areas degraded by fuelwood burning natural gas, and burning coal re- thygathering, acid precip tation, or forest fires. Negative numbers thvmay hide significant variations in to- indi cate an increase in forest areas. (Food and Agriculture Or- leases about twice as much. Cement manu-gaiaonthdtarefrhepid 90200 facturing releases about half a metrsc ton tlrnwbe aeresucsfo oeyar Nationally protected areas are totally or partially protected to the next. The data also fail to distinguish areas of at least I.000 heccares that are designated as national of CO, for each ton of cement produced. between seasonal and geographic varia- parks, natural monuments, nature reserves or wildlife sanctu- aries, protected landscapes and seascapes, or scientific reserves. Use of nergy i generl, and ccess t elec- tions in water availability within countries. (The World Conservation Monitoring Center; the data are for Use of energy in general, and access to elec- ~~~~~~~~~~~~~~I 999) tricity in particular, are important in im- Freshwater resources refer to total renewable resources, proving people's standard of living. But Access to safe water sources and to sani- which include flows of rivers and groundwater- from rainfall in tation are important indicators of progress the country, and river flows from other countries. Freshwater electricity generation can also damage the resources per capita are calculated using the World Bank's environment. Whether such damage oc- in implementing national health strategies. population estimates. (The World Resources Institute; the es- envionmet. W ethe suc damge o-, Diseases transmitted by feces are common timates are for 1 999) curs largely depends on how electricity is ideeopn cutrs,lglybca eof Access to an improved water source refers to the per- generated. For example, burninge opi g coalres,lar elv becure-of centage of the population with reasonable access to an ad- leases twice as muh carbon dioxide-a the lack of cleani water anid basic sanita- equate amount of water from an improved source, such as a leases tvvice as much carbon dioxide-a ~~~~~~~~~~~~~household connection, public standpipe, borehole, protected tion, Drinking water contaminated by fe- well or spring, or rainwater collection. Unimproved sources major contributor to both global warming cs dp itd na ho e ad an include vendors, tanker trucks, and unprotected wells and and local air pollution-as does burning an csdp itd na ho e ad an springs. Reasonable access to an adequate amount is defined inadequate water supply cause diseases as the availability of at least 20 liters a person a day from a eqiaetamount of natural gas. source within one kilometer of the dwelling. (World Health equivalent ~~~~~~~~~~~~accounting for 10 percent of the disease Organization; the data are for 2000) Rural popuation denity provies an in- burden in developing countries. Access to Access to sanitation is the share of the population with Ruralpopultion ensit provdes a in- drinking water from an improved source accessto atleast adequate excreta disposal facilities)(private or dicator of pressure on natural ecosystems shared, but not public) that can effectively prevent human, -does not ensure that it is adequate or safe. animal, and insect contact with extreta, Improved facilities and resources such as soil and forests. range from simple ban protected pit latrines no flush toilets Information on access to an improved wa- with a sewerage connection. To be effective, facilities must be ter souce is etremel subjecive, an terms correctly conscrucced and properly maintained. (World Health Deforestationi is a major cause of trsource is saextimremelysbetd , and aeuterms Organization; the data are for 2000) biodiversitv loss, and habitat conservation suha ae mrvd n dqaemy is vital for stemming this loss. According to havtresver desiffern meandeingstionsdifErent Tis article ti's5 preparecd by Stefaiso Pagiofla, the latest FAQ assessment, the global rate inhg-ncountries, despi tedWOdfntos Evten (202) 458-2997, fax (202) 522-1735, tald Kir-k of net deforestation has slowed to 9 million i hihicm conre,taedw er HtIas,(0)4-25.fiax (202) 522-1735, hectares a year, a rate 20 percent lower than may not be safe to drink, of t/se Ewvirostnseist Departmienit. JULY 20111-)1.."E 2001 * IFY 20011 63 P u b I I a t I on s A Selection of World Bank Group Environmental Publications The following publications may be obtained by sending an email message to eadvisor@worldbank.org, or by phoning the ESSD Advisory Service at (202) 522-3773. General Lisa Segnestamn in collaboration wvith NIanuel NVinograd and Making Sustainable Commitments - An Environment Strategy Anoember 200F for the 1borld Bank WNTorld BanLk A Decade of Environmental Management in Chile September 2001 (ISBN 0-8213-4935-X) Environment Department Paper No. 82 China -Air. Land, and litter: Environmental Priorities for a Ina-Mlarlene Rutaibeberg New Millennium ~~~~~~~~~~July 20101 (Also available in Spanish) AVew llillennium WVorld Bank Country Assistance Strategies and the Environment August2)001 (ISBN 0-8213-4937-6) Environment Department IPaper No. 81 Priva Shyamsundar, Kirk Hamilton, Lisa Segnestam, N\Iaria Wzorld Bank IVIF Alliance - For Fobrest Conservation '- Sarraf, and Samuel 1ankhauser Sustainable Use: Annual Report 2000 Jul2 7001 NW)rld Bank/AVWI ')1)1 Tourism and the Environment in the Caribbean Blodiversity Series - Impact Studies Environment Department Paper No. 80 Hunting of Wildlife in Tropical Forests - Implications for John Dixon, Kirk Hamilton, Stefano Pagiola, and Lisa Biodiversity and Forest Peoples Segnestam Elizabeth L. Bennett and John G. Robinson Mlarch 2001 March 2001 Genuine Saving as a Sustainability Indicator Biodiversity Conservation in the Context of Tropical Fbrest Environment Department P'aper No. 77 Mlanagemcit Kirk Hamilton Francis E. I'utz, Kent H. Redford, John G. Robinson, Robert October 2000 Fimbel, and Geoffrev NI. Blate September 20010 Pollution Management Urban Air Quality AManagement - Coordinating Transport, Climate Change Environment, and Energy Policies Climate Information and Forecasting ftr Development - Wborld Bank Technical Paper No. 508, Pollution Management Lessons trom the 1997198 El Niiio Series. Environment Department Paper No. 79 N\lasami Kojima and Magda Lovei Maarten K. van Aalst, Samuel Fankhauser, Sally NI. Kane, September 2001 (ISB3N 0-8213-4948-1) and Kelly Sponberg December 200(0 Environmental Costs of Fossil Fuels - A Rapid Assessment Miethod with Application to Six Cities Environment Department Paper No. 78 Environmental Economics Kseniya Lvovskv, Gordon Hughes, David Maddison, Developing Indicators - Lessons Learned from Central Bart Ostro, and David Pearce America October 2000 64 ENVIRONMENT MATTERS * 2001 Improving Urban Air Quality in South Asia by Reducing What Has Changed Regarding Rural Poverty Since Vision to Emissions from Two-Stroke Engine Vehicles Action? Mlasami Kojima, Carter Brandon, and jitendra Shah Rural Strategy Background Paper No. 4 Decenmber 2000 Harold Alderman AIvailable on the online World Bank Rural publications catalog Cleaner Transport Fuels for Cleaner Air in Central Asia at http://xv,bln0018.wortdbank.org/essd/essd.nsf/ and the Caucasus RuralDevelopment/Pubs Masami Kojima, Robert Wv' Bacon, Martin Fodor, and Magda Lovei Social Development August 2000 Social Exclusion and Poverty Reduction in Latin America and the Caribbean Rural Development Estanislao Gacit6a, Carlos Sojo with Shelton Davis Agricultural Trade Liberalization in a New Trade Round - August 2001. (Also available in Spanish.) Perspectives of Developing Countries and Transition Economlies World Banik Techinical Paper No. 41 8 Interest Groups and Organizations as Stakeholders Merlinda Ingco and L. Alan Wvinters, eds. Robert Bianchi, Sherrie A. Kossoudji, SDV 35, Juine 2001. September 2001. (ISBN 0-8213-4986-4) Available for purchiase in tihe World Bank Bookstore and Social Analysis, Selected Tools and Techniques online at http://pubiications.xvorldbank.org Richard A. Krueger, Mary Anne Casey; Jonathan Donner, Stuart Kirsch, and Jonathan MVaack, SDP36 Rural NVon-Farm Activ~ities and Rural Development - From June 2001 Experience Towards Strategy Rural Strategy Background Paper No. 5 Inclusion and Local Elected Governmnents - The Panchayat Peter Lanj'ouw, and Gershon Feder Rai System in India Available on the online WVorld Bank Rural publications catalog Ruth J. Aslop, Anirudh Krishna, and Disa Sjoblom, SDP 37 at http://xvbln0018.worldbank.org/essd/essd.nsf/ May 2001 RuralDevelopment./Pubs To be added to the Environment Matters mailing list, complete coupon and mail to address belowl Name '$ JA444* % & GJfA. I TitleI I Office telephone Fax numberI I OrganizationI AddressI City/State/Postal Code I CountryI E-mail address I To order other Environment Department publications, refer to our publications list and write those you would like I I to receive below. To order more than 4, please contact the Environment Department publications office directly. I Title Series No. Author Date L ------------------------------------------ ---I Making Sustainable , - - Urban Air Quality Commitments - Management - An Environment b Coordinating Strategy for the | Transport, Environ- World Bank ment, and Energy September 2001. - Policies in Develop- 276 pages. -- ing Countries (ISBN 0-8213-4935-X) by Masami Kojima V A. ftaMW 5ta_tVh MrE d wf am* $22.0 0 and Magda Lovei, September 2001. 68 pages. (ISBN 0-8213-4948-1) Improving Urban Air Social Exclusion and Quality in South Asia n Poverty Reduction in by Reducing Emis- Latin America sions from Two- - . and the Caribbean Stroke Engine by Estanislao Gacitua, Vehicles ., and Carlos Sojo, by Masami Kojima, with Shelton Davis, _~ .-' i Carter Brandon, and August 2001. 304 pages. M # Jitendra Shah, (Available in Spanish.) e December 2000. 60 pages. AgriculturalTrade Developing Liberalization in a Indicators - NewTrade Round - Lessons Leamed Perspectives of from Central America DEVELOPlhQINGC N-cATo Developing Countries by Lisa Segnestam in andTransition collaboration with Economies ' Manuel Winograd and World Bank Technical Andrew Farrow, Paper No. 418 by November 2000. 1 * Merlinda Ingco and L. 56 pages. (Available Alan Winters, eds. in Spanish.) September 2001. 172 pages. (ISBN 0-8213- 4986-4). $22.00 Biodiversity World Bank/WWF Conservation in the Alliance for Forest PAPI RS _ ofikoContext of Tropical Conservation & Forest Management Sustainable Use - by Francis E. Putz, Annual Report 2000 Cornseralin the Kent H. Redford, John 40 pages. ContextofTnpical G. Robinson, Robert Visit the Alliance website Fimbel, and Geoffrey at: http://www-esd.world- M. Blate, September bank.org/wwf. 2000. Environment Department Paper No. 75. 88 pages. For information on how to obtain these publications, please call the World Bank Environment Department at (202) 473-3641, or e-mail eadvisor@worldbank.org.