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IVESTOCK AND THE PUBLIC GOOD NEXUS
            immy W. Smith

              orld Bank
ays to think about the Public Good nexus

he status quo

ncreasing the Public Good contributions
Thinking about Public Goods –Based on
Economic Principles

Pure Public Goods share two qualities:

Nonexcludability --which means that when
provided to one party, the public good is
provided to all.

Nonrivalary --which means that the
consumption of the Public Good by one
party does not reduce the amount available
to others.
High
                                Rivalry

Common Pool Goods
Communal rangelands                         Private Goods
Water (volume and quality)                  On-farm production, processing,
Air quality (including                      and distribution (quality standards)
protection against climate                  Most clinical veterinary and
change)                                     breeding services
Animal genetic resources and                Most input supplies (feed, seed,
other sources of biodiversity               etc.)


                                           High excludability


   Pure Public Goods
   Poverty reduction                      Club Goods
   Border quarantine                      Standards and certification
   Food safety inspection                 systems
   Protection against                     Face-to-face advisory services
   contagious diseases                    Collective action in disease (tick
   Animal health intelligence             dips) control
   Disease data systems
SOME EXAMPLES -- PUBLIC GOOD, ROLE & RESPONSIBILITY

                               Funding        Responsibility                    Oversight
                                                For Imp.
    Pure Public Goods
    Veterinary health
    •   Border quarantine   Public sector    Public sector             Mainly national Veterinary
                                                                       Services (VS)
    •   Surveillance of     Public sector    Preferably in             Mainly district service, with
        main contagious                      subcontract with          clear lines to national VS, with
        diseases                             private operators         international support in
                                                                       developing countries and
                                                                       international coordination
                                                                       among all countries
    •   Early alert and     Public sector    Preferably in             Mainly national VS with
        response for main                    subcontract with          international support
        contagious                           private operators
        diseases
    •   Vaccination       Public/private     Mostly private sector     Mainly national VS with
                          partnership                                  international support
    • Vaccine             Public/private     Mostly private sector     National or regional public
        development       partnership                                  institutions
    • Disease data        Public/private     Mainly public sector      Mainly national VS with
        systems           partnership                                  international support
    Food safety and human Public/private     Preferably in             Mainly local, within overall
    public health         partnership        subcontract with          guidelines of national and,
                                             private operators         eventually, international buyers
    Research and            Public/private   Preferably private with   Public/private at corresponding
    education               partnership      subcontracts              levels
radicate extreme poverty and
hunger

t least 50 % of income, food and
arable farming inputs for 700 million
poor, even in middle income
countries:
      Indonesia: Only 3 percent
       poultry meat from large farms
      India: 5.5 percent of national
       workforce in dairy sector

chieve universal education

ritical cash to pay school fees

romote gender equality
educe Child Mortality

ritical cash to pay health expenses

ssential mineral and vitamin source to
supplement poor basal diets

mprove maternal health

ilk to supplement breast feeding and
enhance overall maternal health

ombat HIV/AIDS, malaria and other
diseases

raction to reduce drudgery of labor of
weakened farming population
nsure environmental
sustainability

rganic Fertilizer for about half total
nutrient needs

raction for about one-third of the
world’s total arable land

ncome to buy inputs for crops

evelop a global partnership

esponding to critical research
needs
Early 1980s
Official development assistance
(ODA): 17%
World Bank lending: 30%                                 World Bank lending
                Early 1990s
                                                        is recovering …..
               Official development assistance
               (ODA): 12%
               World Bank lending: 15%

                                  Early 2000s
                                  Official development assistance
                                  (ODA): 4%
                                  World Bank lending: <10%
                                                                    …but overall
                                                                    ODA has not
                                                                    recovered
Challenges
                 AGRICULTURE       OFFICIAL

WORLD POOR
                    4%           DEVELOPMENT
                                  ASSISTANCE




                  AGRICULTURE   PUBLIC SPENDING
                                (Sub-Saharan Africa)
      RURAL
                     4%
      75%
nvestment at the national level is limited:
 Only 3 countries had PRSPs with detailed strategy and budget for livestock
  and poverty reduction

 None had specified investments under Poverty Reduction Strategy Credits;
  and

 Low investment from national budgets (estimated 15-20 percent of
  Agricultural budget)
     For example, Mali: Livestock about 35 percent of Ag. GDP but MinAg. budget: 91.6
      % arable farming, 3.6 % livestock and 1% for fisheries



                                                                                 14
ncreasing the Public Good
      Contributions
Poverty Reduction

    Global extreme poverty 2002, $1.08 a day
    Global extreme poverty 2002, $1.08 a day

                                                   – 2.5 billion people
                                                    depend directly on
                                                    agriculture
                     Global
                   Urban poor
                    287 mill.         South        – 800 m smallholders
                                     Asia rural
                                       407 mill.   – 75% of poor are rural
MENA rural
   5 mill.                                          and the majority will
                                                    be rural to about 2040
ECA rural           East Asia
  5 mill.             rural     Sub-Saharan
                    218 mill.    Africa rural
    LAC rural
      27 mill.                    229 mill.
Important user of natural resources:           Mitigating the effects of livestock
                                                   Mitigating the effects of livestock
    70-75% of fresh water resources                        on the environment
                                                            on the environment
    40% of land area
    25-30% of greenhouse gas emissions            Mitigating the effects of climate
                                                   Mitigating the effects of climate
                                                           change on livestock
                                                           change on livestock
         Contributions to Greenhouse
                Gas Emissions
                                    Developing
                                      country
                                   agriculture &
                                   deforestation
                                       21%


                                   Developing
Industrialized                      country
  countries                          other
    64%                             sources
                                      15%


    18
Three Worlds of Agriculture
Agriculture’s share in growth 1990-2005




                                          80%



                                                                                         Agriculture based countries
                                                                                              Mainly SS-Africa
                                                                                          417 million rural people


                                          20%

                                                       Urbanized countries                  Transforming countries
                                                       Mainly Latin America                   Mainly Asia, MENA
                                            0         255 million rural people              2.2 billion rural people

                                                0                                  50%                                 100%

                                                                       Rural poor/total poor, 2002
20
peration Flood in India
   Cooperative movement now with about 130,000 member
    coops, serving 14 million farmers, including 3.7 million women
    processing about 20 million ton milk annually



astoral development in East Africa
   Ethiopian and Kenyan pastoral development projects working
    for the poorest group of society rated moderately satisfactory
    or better for outcomes
upport research for “technologies for the poor”
   Develop remedies to “livestock diseases of the poor”

   Develop alternative feeds resources



upport better integration of smallholders in the value
chain


romote, where needed, exits from the sector
ublic health:
   Six major zoonotic disease scares over last decade with economic
    losses over US $ 200 billion (direct and indirect) over the last decade

   Of 1415 known pathogens, 62 percent of animal origin
   1.6 million annual TB fatalities of which 2-15 percent of bovine
    origin
   Food borne pathogens important contributor to diarrheal diseases
   Contribution to obesity and other food related health risks



                                                                       23
uilding on the HPAI efforts to promote the “One
Health” concept:

At the international

evel seek to promote:
     Permanent global
    Coordination mechanisms
     Sustainable funding
    Mechanisms

t the national level

eek to promote:
revent and control the ‘lingering’ zoonotic diseases
whih mostly affect the poor


urther strengthen veterinary public health
services/mechanisms.
Livestock sector is major contributor to greenhouse gas emission, important
eroder of bio-diversity; cause of land degradation and water pollution

 Use one quarter of total terrestrial land and one third of total crop
  land
 Contribute to 20 percent rangeland degradation
 Emit 18 percent of anthropogenic Greenhouse Gasses
 Use 15 percent of global agriculture water
 Pose a threat to bio-diversity in 306 of the 825 eco-regions
 Changing climatic effects on feed & water resources, pathogens and
  disease dynamics


                                                                       26
ontinue to work on payment for environmental services:
   Use PES to reduce deforestation of hunid tropical forest;
   Shift pastoralists in arid areas from livestock herders to stewards of
    the landscape


xpand work on environmental mitigation of intensive
livestock production systems;
   Promote innovation in livestock waste management


ncrease attention to livestock and Global Climate Change
   Reducing GHG emission
   Adapting livestock systems to GCC
HANK YOU

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REPOSITIONING LIVESTOCK ON THE GLOBAL DEVELOPMENT AGENDA

  • 1. IVESTOCK AND THE PUBLIC GOOD NEXUS immy W. Smith orld Bank
  • 2. ays to think about the Public Good nexus he status quo ncreasing the Public Good contributions
  • 3.
  • 4. Thinking about Public Goods –Based on Economic Principles Pure Public Goods share two qualities: Nonexcludability --which means that when provided to one party, the public good is provided to all. Nonrivalary --which means that the consumption of the Public Good by one party does not reduce the amount available to others.
  • 5. High Rivalry Common Pool Goods Communal rangelands Private Goods Water (volume and quality) On-farm production, processing, Air quality (including and distribution (quality standards) protection against climate Most clinical veterinary and change) breeding services Animal genetic resources and Most input supplies (feed, seed, other sources of biodiversity etc.) High excludability Pure Public Goods Poverty reduction Club Goods Border quarantine Standards and certification Food safety inspection systems Protection against Face-to-face advisory services contagious diseases Collective action in disease (tick Animal health intelligence dips) control Disease data systems
  • 6. SOME EXAMPLES -- PUBLIC GOOD, ROLE & RESPONSIBILITY Funding Responsibility Oversight For Imp. Pure Public Goods Veterinary health • Border quarantine Public sector Public sector Mainly national Veterinary Services (VS) • Surveillance of Public sector Preferably in Mainly district service, with main contagious subcontract with clear lines to national VS, with diseases private operators international support in developing countries and international coordination among all countries • Early alert and Public sector Preferably in Mainly national VS with response for main subcontract with international support contagious private operators diseases • Vaccination Public/private Mostly private sector Mainly national VS with partnership international support • Vaccine Public/private Mostly private sector National or regional public development partnership institutions • Disease data Public/private Mainly public sector Mainly national VS with systems partnership international support Food safety and human Public/private Preferably in Mainly local, within overall public health partnership subcontract with guidelines of national and, private operators eventually, international buyers Research and Public/private Preferably private with Public/private at corresponding education partnership subcontracts levels
  • 7.
  • 8. radicate extreme poverty and hunger t least 50 % of income, food and arable farming inputs for 700 million poor, even in middle income countries:  Indonesia: Only 3 percent poultry meat from large farms  India: 5.5 percent of national workforce in dairy sector chieve universal education ritical cash to pay school fees romote gender equality
  • 9. educe Child Mortality ritical cash to pay health expenses ssential mineral and vitamin source to supplement poor basal diets mprove maternal health ilk to supplement breast feeding and enhance overall maternal health ombat HIV/AIDS, malaria and other diseases raction to reduce drudgery of labor of weakened farming population
  • 10. nsure environmental sustainability rganic Fertilizer for about half total nutrient needs raction for about one-third of the world’s total arable land ncome to buy inputs for crops evelop a global partnership esponding to critical research needs
  • 11.
  • 12. Early 1980s Official development assistance (ODA): 17% World Bank lending: 30% World Bank lending Early 1990s is recovering ….. Official development assistance (ODA): 12% World Bank lending: 15% Early 2000s Official development assistance (ODA): 4% World Bank lending: <10% …but overall ODA has not recovered
  • 13. Challenges AGRICULTURE OFFICIAL WORLD POOR 4% DEVELOPMENT ASSISTANCE AGRICULTURE PUBLIC SPENDING (Sub-Saharan Africa) RURAL 4% 75%
  • 14. nvestment at the national level is limited:  Only 3 countries had PRSPs with detailed strategy and budget for livestock and poverty reduction  None had specified investments under Poverty Reduction Strategy Credits; and  Low investment from national budgets (estimated 15-20 percent of Agricultural budget)  For example, Mali: Livestock about 35 percent of Ag. GDP but MinAg. budget: 91.6 % arable farming, 3.6 % livestock and 1% for fisheries 14
  • 15. ncreasing the Public Good Contributions
  • 16. Poverty Reduction Global extreme poverty 2002, $1.08 a day Global extreme poverty 2002, $1.08 a day – 2.5 billion people depend directly on agriculture Global Urban poor 287 mill. South – 800 m smallholders Asia rural 407 mill. – 75% of poor are rural MENA rural 5 mill. and the majority will be rural to about 2040 ECA rural East Asia 5 mill. rural Sub-Saharan 218 mill. Africa rural LAC rural 27 mill. 229 mill.
  • 17.
  • 18. Important user of natural resources: Mitigating the effects of livestock Mitigating the effects of livestock 70-75% of fresh water resources on the environment on the environment 40% of land area 25-30% of greenhouse gas emissions Mitigating the effects of climate Mitigating the effects of climate change on livestock change on livestock Contributions to Greenhouse Gas Emissions Developing country agriculture & deforestation 21% Developing Industrialized country countries other 64% sources 15% 18
  • 19. Three Worlds of Agriculture Agriculture’s share in growth 1990-2005 80% Agriculture based countries Mainly SS-Africa 417 million rural people 20% Urbanized countries Transforming countries Mainly Latin America Mainly Asia, MENA 0 255 million rural people 2.2 billion rural people 0 50% 100% Rural poor/total poor, 2002
  • 20. 20
  • 21. peration Flood in India  Cooperative movement now with about 130,000 member coops, serving 14 million farmers, including 3.7 million women processing about 20 million ton milk annually astoral development in East Africa  Ethiopian and Kenyan pastoral development projects working for the poorest group of society rated moderately satisfactory or better for outcomes
  • 22. upport research for “technologies for the poor”  Develop remedies to “livestock diseases of the poor”  Develop alternative feeds resources upport better integration of smallholders in the value chain romote, where needed, exits from the sector
  • 23. ublic health:  Six major zoonotic disease scares over last decade with economic losses over US $ 200 billion (direct and indirect) over the last decade  Of 1415 known pathogens, 62 percent of animal origin  1.6 million annual TB fatalities of which 2-15 percent of bovine origin  Food borne pathogens important contributor to diarrheal diseases  Contribution to obesity and other food related health risks 23
  • 24. uilding on the HPAI efforts to promote the “One Health” concept: At the international evel seek to promote:  Permanent global Coordination mechanisms  Sustainable funding Mechanisms t the national level eek to promote:
  • 25. revent and control the ‘lingering’ zoonotic diseases whih mostly affect the poor urther strengthen veterinary public health services/mechanisms.
  • 26. Livestock sector is major contributor to greenhouse gas emission, important eroder of bio-diversity; cause of land degradation and water pollution  Use one quarter of total terrestrial land and one third of total crop land  Contribute to 20 percent rangeland degradation  Emit 18 percent of anthropogenic Greenhouse Gasses  Use 15 percent of global agriculture water  Pose a threat to bio-diversity in 306 of the 825 eco-regions  Changing climatic effects on feed & water resources, pathogens and disease dynamics 26
  • 27. ontinue to work on payment for environmental services:  Use PES to reduce deforestation of hunid tropical forest;  Shift pastoralists in arid areas from livestock herders to stewards of the landscape xpand work on environmental mitigation of intensive livestock production systems;  Promote innovation in livestock waste management ncrease attention to livestock and Global Climate Change  Reducing GHG emission  Adapting livestock systems to GCC

Editor's Notes

  1. Cannot ignore threats to human health from emerging and reemerging zoonotic disease, One new disease has emerged every year over the last two decades, and about 75 percent of these have been zoonotic. Policy choices, and careful investment interventions are required to address issues ranging from the intensification of production systems, improving market efficiencies, food safety along value chains and ensuring sustainable natural resources.