Helsinki benefit sharing

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  • SMEs comprise 80-90% of all forestry enterprises in many developing countries. They employ 20 million people, are a major source of off-farm employment, and add US 130 billion in gross added value to the world economy
  • Climate initiatives require long-term partnerships
  • Contracts serve a number of important functions in collaborative arrangements,
  • The definition of “legitimate” sellers and beneficiaries will be critical. It must reflect the legal position regarding ownership and other rights in the resource, but it must also be informed by a realistic understanding of the need to balance enforcement and incentives. If the enforcement capacity of the responsible institution is weak, as will often be the case, heavy reliance will need to be placed on incentives.
  • Helsinki benefit sharing

    1. 1. Delivering Development Gains Through Partnerships. <br />Insights for REDD+<br />Findings from ongoing research supported by <br />TF-ESSD & PROFOR <br />DijiChandrasekharan Behr<br />Natural Resource Economist, <br />SDN Forests Team, World Bank<br />
    2. 2. Setting the Stage for Partnerships<br /><ul><li>500 millionpeopledirectlydependonforestresourcesfortheirlivelihoods
    3. 3. 50 millionpeoplelivewithinforestmassifs
    4. 4. Decrease in area of forest owned by governments and increase in area of forest owned by or designated for the use of local communities & indigenous peoples</li></li></ul><li>Investment Opportunities to Link Local Partners and External Parties<br />
    5. 5. Climate Change, Partnerships and Benefit Sharing Arrangements<br />More opportunities in the context of REDD+, afforestation/reforestation, and forest landscape restoration<br />Link climate change objectives to poverty alleviation and broader sustainable development agenda<br />Local partner: community, an association, individuals or a group of landholders<br />Outside partner: private entity, government agency, NGO or CSO. <br />Greater Prominence For Partnership<br />
    6. 6. Focus of the research<br />What factors influence stable and lasting partnerships<br />When rights are unclear how do we identify legitimate beneficiaries<br />What are ways for transferring benefits to these beneficiaries <br />
    7. 7. General Findings<br /><ul><li>The process of reaching agreement with a local partner is as important to the success of a partnership as the content or legal form of the agreement itself
    8. 8. Effective and lasting collaborative arrangements tend to be characterized by a number of factors</li></li></ul><li>Important Factors<br /><ul><li>Common Expectations
    9. 9. Communication
    10. 10. Fully bargained
    11. 11. Incentives
    12. 12. Legally recognized
    13. 13. Mutual respect
    14. 14. Mutual understanding
    15. 15. Past history of conflict is thoroughly addressed
    16. 16. Practical
    17. 17. Self determination
    18. 18. Trust
    19. 19. Verifiable obligations</li></li></ul><li>“Universal” Factors<br /><ul><li>Common Expectations
    20. 20. Communication
    21. 21. Fully bargained
    22. 22. Incentives
    23. 23. Legally recognized
    24. 24. Mutual respect
    25. 25. Mutual understanding
    26. 26. Past history of conflict is thoroughly addressed
    27. 27. Practical
    28. 28. Self determination
    29. 29. Trust
    30. 30. Verifiable obligations</li></li></ul><li>Context Matters<br />Where community relies heavily on the natural resource<br />bargaining <br />clear understanding of each other’s interests and motives—an understanding not only of what the other side wants, but of why they want it <br />Where communities did not rely directly on natural resources<br />level of disclosure and mutual understanding proved relatively less significant<br /> Where community livelihoods are less dependent on forests<br />incentives tend to become more important<br />
    31. 31.
    32. 32. Structure and content should be adapted to suit the purpose of the arrangement. <br />In benefit-sharing arrangements - emphasis communication and dispute resolution, <br />Profit-sharing contracts - contingencies, loss prevention, and how risks are divided between the partners. <br />Establish formal communication, resolving grievances, sharing risks, structuring of milestones, transparency, and other issues of general interest<br />Where standardized agreements are necessary, contract template should be developed based on consultation and discussions with potential partners and key technical advisors. <br />Good Contracts<br />
    33. 33. Good forest partnership contracts had a number of distinguishing attributes:<br />clear,<br />understandable, <br />complete, <br />address issues such as practicality, verifiability, and incentives,<br />legally valid and provide means to resolve disputes that do not require those involved to go to court,<br />where there is a history of disagreements or disputes, the issues involved are fully taken into account by the contract. <br />Good Contracts<br />
    34. 34. Benefit sharing should be <br />open & verifiable <br />serve legitimate beneficiaries <br />look beyond compensation, towards promoting broader social and economic development.<br />Benefit sharing arrangements could include:<br />Cash payments<br />Combinations of cash payments with technical assistance or services<br />Provision of alternative benefits (market vouchers productive goods, access to new land, extension services, credit, employment, clarification/ acknowledgement of local partners’ ownership rights<br />Benefit Sharing Arrangements<br />
    35. 35. Legitimate beneficiaries<br />Who could participate<br />What can we learn from CBNRM experiences<br />Mechanisms for transferring benefits<br />What systems are in place<br />How are they working<br />What are transaction costs, capacity requirements, and needed institutional arrangements<br />Case studies<br />Remaining Activities<br />
    36. 36. THANK YOU<br />

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