1) Land degradation affects a quarter of global land area and droughts are increasing in extent and severity due to climate change, impacting the poorest the most. 2) A framework called the Economics of Land Degradation (ELD) was developed to assess the economic impacts of land degradation and drought through case studies and identify evidence-based policy solutions. 3) Case studies show that investment in preventing land degradation through sustainable land management provides greater economic returns than allowing degradation to continue.

1. Economic and Social Impacts
of Land Degradation and Drought
Framework, Assessment and Policy Implications
Joachim von Braun
Center for Development Research (ZEF),
University of Bonn
09 April, 2013
UNCCD 2nd Scientific Conference

2. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Basic Facts about Land Degradation and Drought
It is estimated that about a quarter of global land area is
degraded (Lal et al. 2012).
Droughts are one of the largest determinants of human
misery. The extent, frequency and intensity of droughts are
expected to increase due to climate change.
Land degradation and drought affect the poorest the most
and are huge development constraints.
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3. Problem Definition Conceptual Framework ELD Assessment Policy Implications
World Food and Agriculture:
The Changing Equation
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4. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Need for NEXUS Perspective: Water–Food–Energy
Land and SLM should be an integral part and action agenda for the NEXUS.
Source: Bonn2011 Conference: The Water, Energy and Food Security Nexus. 16-18 Nov. 2011
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5. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Total Arable Land is Limited
Climate change, urbanization and degradation affect arable land.
Protection of forests imposes further environmental limits.
Source: FAOSTAT 5

6. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Farmland Price Dynamics
Even as such, market prices are capturing only marketed values, ignoring
numerous essential ecosystem services of land.
Source: von Braun et al (2012)
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7. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Problem Definition
Markets are sending clear signals that land and soil
degradation, and also droughts, are globally critical problems
that require urgent action to address.
However, the efforts to address them have so far been
insufficient.
What is lacking: policy action, based on evidence-based policy
framework to address the two interlinked slow onset-disasters:
land degradation and drought.
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8. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Framework: Economics of Land Degradation (ELD)
UNCCD and BMZ-commissioned global
study assessing the
state-of-the-knowledge on the economics
of land degradation and drought,
conducted by IFPRI and ZEF
(2010–2011).
Reviewed the state-of-the-art
Developed a conceptual framework
for economic assessment
Identified gaps in the science,
partnerships and institutional setups
required for ELD
click to read
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9. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Investment for Sustainable Wellbeing
Wellbeing Function:
Output for Income and Wellbeing = f(Labor, Fertilizers, Land
quantity and Land quality, Water, Climate, Others)
Natural capital – including land and soil resources, water – is an
essential building block of the economy.
Land degradation and drought have differing characteristics
(gradual change vs recurrent shocks), their economic valuation
should be conceptualized in terms of their association with the
change in productivity and with changes in the provision of
ecosystem services and the human benefits derived from them.
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10. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Innovation Feeds the World:
Sources of Productivity Growth in World Agriculture
Source: IFPRI 2012; Global Policy Report 2013
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11. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Economics of Land Degradation (ELD)
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12. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Comparing Action vs Inaction:
Some Case Study Results
Source: Nkonya et al (2011) 12

13. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Strategy in ELD Assessment
1. Building and informing the policy debate and dialogue on land
degradation at regional and global levels guided by
evidence-based and policy-oriented research.
2. Forming an inclusive and open collaboration of all stakeholders
for addressing land degradation.
3. Communication to increase awareness and commitment to take
action against land degradation.
4. Conducting the global ELD assessment, based on carefully
selected case studies acting as stepping stones and templates for
future research and action. Highlight successful experiences of
countries and locations that created incentives and program
actions for sustainable land use (returns to farmers and to
society).
5. Independent peer-review of the results.
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14. Problem Definition Conceptual Framework ELD Assessment Policy Implications
ELD Research Principles
Ground-proofing is a must!
Market and non-market valuation of land and its degradation
with strong emphasis on valuing non-market ecosystem
services!
Global and national/local, with integrating across scales by
modelling!
Science-driven and practitioner-oriented, with strong
involvement by local partners and farming communities!
Focus on rehabilitation and prevention of degradation in a
sustainable land use framework, but prevention is better than
cure!
Focus on land degradation or on people affected by it? Link
both from the beginning.
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15. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Prevention and Management of the Great Risks:
Bringing action for prevention of Land and Soil Degradation and action
on Drought together
1. Risk prevention: sustainable intensification in agriculture;
productivity across value chains; R&D.
2. Risk management: Facilitation of reduced market volatility
with appropriate stocks, appropriate regulation, and
international cooperation.
3. Social protection: productive safety nets, expanded action
for nutrition security of children.
4. Insurance systems: insurance of crops, peoples’ health,
public insurance mechanisms for catastrophic events in low
income countries (e.g. regional droughts, climate shocks)
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16. Problem Definition Conceptual Framework ELD Assessment Policy Implications
Toward Appropriate Action
a. Land degradation is a consequence of market failures and partly
consequence of poverty. There is a need for policy action to
appropriately address land degradation externalities, including
the non-market values of land.
b. Remedies for the different forms of land degradation, drought
management strategies and technologies need to be incentivized.
c. Land users must receive direct benefits for adopting sustainable
land management (SLM) practices.
d. Access to rural services, access to markets are important to
increasing the benefits from investments in SLM.
In Sum: ELD initiative is to foster a sound combination of
transparent and enforceable rules and market-oriented incentives
for sustainable land and soil use practices. Countries are in the
lead, as optimal solution are mostly local.
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