This document discusses strategies for sustainable development in agriculture and rural development. It addresses why agriculture is important for poverty reduction and sustainable rural development, as agriculture employs many rural poor. It outlines general principles for sustainable development, including economic sustainability through growth and poverty reduction, and environmental sustainability to protect resources for future generations. The document also discusses principles for effective public interventions and five dimensions of sustainable natural resource management for rural development: reducing land degradation, improving water management, sustainable forestry, sustainable fisheries, and incorporating global warming into development planning.

1. Sustainable DevelopmentSustainable Development
Strategies in Agriculture andStrategies in Agriculture and
Rural DevelopmentRural Development
WTO Symposium on Trade and SustainableWTO Symposium on Trade and Sustainable
DevelopmentDevelopment
10- 11 October, 200510- 11 October, 2005
John NashJohn Nash
Agriculture & Rural Development Dept / Trade DeptAgriculture & Rural Development Dept / Trade Dept
The World BankThe World Bank

2. Outline of this PresentationOutline of this Presentation
 Why is Agriculture so Important for Poverty Reduction and SustainableWhy is Agriculture so Important for Poverty Reduction and Sustainable
Rural Development?Rural Development?
 General Principles for Sustainable DevelopmentGeneral Principles for Sustainable Development
 What are objectives?What are objectives?
 How to best accomplish them?How to best accomplish them?
 Principles for effective public interventionsPrinciples for effective public interventions
 Five Dimensions of Sustainable NRM & DevelopmentFive Dimensions of Sustainable NRM & Development
 Reducing land degradation
 Improving water management
 Sustainable forestry
 Sustainable fisheries
 Incorporating global warming into development planning
 The Role of Trade in Agriculture and Rural DevelopmentThe Role of Trade in Agriculture and Rural Development

3. Agriculture, Poverty and RuralAgriculture, Poverty and Rural
DevelopmentDevelopment

4. Why is sustainable agriculture so importantWhy is sustainable agriculture so important
forfor
developing countries and the rural poor?developing countries and the rural poor?
 63 percent63 percent of population liveof population live
in rural areasin rural areas
 73 percent73 percent of poor live inof poor live in
rural areasrural areas
 Agriculture and agro-Agriculture and agro-
processing account forprocessing account for 30-6030-60
percentpercent of GDP inof GDP in
developing countries, and andeveloping countries, and an
even larger share ofeven larger share of
employmentemployment
 Even with rapidEven with rapid
urbanization,urbanization, more than 50%more than 50%
of the poor will be in ruralof the poor will be in rural
areas by 2035, and dependareas by 2035, and depend
significantly on agriculturesignificantly on agriculture

5. Poverty is disproportionatelyPoverty is disproportionately
ruralrural
Burkina
Uganda
Mauritani
Tanzania
Mozambiq
Niger
Zambia
Gambia
Ethiopia
Ghana
Malawi
Cambodia
Vietnam
Mongolia
Kygyz
Georgia
Honduras
Nicaragu
Yemen
Nepal
SriLanka
Rural 51 46 68 50 71 66 80 61 47 34 67 40 57 33 70 10 51 69 45 44 27
Urban 17 16 25 24 62 52 56 48 37 27 55 21 26 39 49 12 57 31 31 23 15
Difference 34 30 43 26 9 14 24 13 10 7 12 19 31 -6 21 -2 -6 38 14 21 12
Poverty Rates
Poverty Rates from PRSPs

6. Sustainable DevelopmentSustainable Development
Principles (What?)Principles (What?)
 Economic sustainability: sustainableEconomic sustainability: sustainable livelihoods andlivelihoods and
improved well-being through growth andimproved well-being through growth and povertypoverty reductionreduction
 Environmental sustainability: Target agricultural land,Environmental sustainability: Target agricultural land,
forests, water resources, protected areas, and biodiversity,forests, water resources, protected areas, and biodiversity,
so that opportunities and options of future generations areso that opportunities and options of future generations are
not degradednot degraded
 Fiscal and institutional sustainability: must be realisticFiscal and institutional sustainability: must be realistic
about cost and institutional requirements of instrumentsabout cost and institutional requirements of instruments
 May require tradeoffsMay require tradeoffs

7.  Correct the over-exploitation or inappropriate use ofCorrect the over-exploitation or inappropriate use of
resources by ensuring that all environmental services areresources by ensuring that all environmental services are
correctly valued (internalize the externalities)correctly valued (internalize the externalities)
 Establish projects and policies on appropriate levels --Establish projects and policies on appropriate levels --
community, watershed, national, regional, global – generallycommunity, watershed, national, regional, global – generally
with corresponding implementation/ financingwith corresponding implementation/ financing
mechanismsmechanisms
 Incorporate institutional development and new technologiesIncorporate institutional development and new technologies
 Reduce risks and vulnerabilities of farming communitiesReduce risks and vulnerabilities of farming communities
 Diversify cropping systems for economic and environmental resilienceDiversify cropping systems for economic and environmental resilience
 Weather forecasting to aid planting date and management decisions.Weather forecasting to aid planting date and management decisions.
 Weather and price crop insurance.Weather and price crop insurance.
Sustainable DevelopmentSustainable Development
Principles (How?)Principles (How?)

8. Principles for EffectivePrinciples for Effective
Public InterventionsPublic Interventions
 Socially profitable and non-distortionary withSocially profitable and non-distortionary with
respect to underlying long run pricesrespect to underlying long run prices
 Pro-poor targeting mechanismsPro-poor targeting mechanisms
 Demand-driven: maximize privateDemand-driven: maximize private
sector/community involvement in prioritysector/community involvement in priority
setting and implementationsetting and implementation
 Co-financing by beneficiariesCo-financing by beneficiaries
 Exit strategy where appropriateExit strategy where appropriate

9. Five NRM Elements of SustainabilityFive NRM Elements of Sustainability
for Rural Developmentfor Rural Development
 Reducing land degradation
 Improving water management
 Sustainable forestry
 Sustainable fisheries
 Incorporating global warming into development
planning

10. Reducing land degradation
 Increase productivity on the “best” landIncrease productivity on the “best” land
 Diversify agroecosystems to protectDiversify agroecosystems to protect
food systems, improve diets, minimizefood systems, improve diets, minimize
risks, diversify incomes, and conserverisks, diversify incomes, and conserve
agrobiodiversityagrobiodiversity
 Rehabilitate productivity and ecosystemRehabilitate productivity and ecosystem
functions of degraded lands to enhancefunctions of degraded lands to enhance
environmental roles e.g. C sequestrationenvironmental roles e.g. C sequestration
– BioCarbon fund.– BioCarbon fund.
 Technologies include integratedTechnologies include integrated
soil fertility management,soil fertility management, adaptedadapted
varieties,varieties, crop rotationcrop rotations,s,
conservationconservation tillage, buffer stripstillage, buffer strips,,
and organic farmingand organic farming
 Strengthen local institutions andStrengthen local institutions and
facilitate community-driven land andfacilitate community-driven land and
water resource management forwater resource management for
managing shocks, stresses, and globalmanaging shocks, stresses, and global
trade barrierstrade barriers

11. Example of Successful NRM Project:Example of Successful NRM Project:
Eastern Anatolia Watershed (I)Eastern Anatolia Watershed (I)
 Control soil erosion andControl soil erosion and
stabilize slopes to protectstabilize slopes to protect
local communities, towns,local communities, towns,
rivers, dams.rivers, dams.
 Reintroduce native speciesReintroduce native species
(oaks, pines, walnut, wild(oaks, pines, walnut, wild
cherry & almond, rose) alongcherry & almond, rose) along
contour ridges and terracescontour ridges and terraces
for soil and nativefor soil and native
biodiversity conservation andbiodiversity conservation and
income generation.income generation.

12. Improving water management

13. Elements of Water ResourcesElements of Water Resources
Management: Multiple objectives,Management: Multiple objectives,
multiple levelsmultiple levels
Water Resources Management
Water
supply &
sanitation
Irrigation
& drainage
Energy
Environ-
mental
services
Infrastructure forInfrastructure for
management of floodsmanagement of floods
and droughts,and droughts,
multipurpose storage,multipurpose storage,
water quality andwater quality and
source protectionsource protection
InstitutionalInstitutional
frameworkframework
ManagementManagement
instrumentsinstruments
Political economy ofPolitical economy of
water managementwater management
Other uses
including
industry and
navigation

14. The poor generally settle on the most
fragile land with meager and/or highly
variable water resources

15. Irrigation has been successful in lifting manyIrrigation has been successful in lifting many
rural poor out of poverty…trick is to do it in arural poor out of poverty…trick is to do it in a
sustainable mannersustainable manner
Average income levels & irrigation
intensity in India

16. Managing Water Sustainably: the DublinManaging Water Sustainably: the Dublin
Principles in operationPrinciples in operation
 The “ecological” principleThe “ecological” principle::
 Strategies should be holistic (includingStrategies should be holistic (including
environment), comprehensive, inter-environment), comprehensive, inter-
sectoralsectoral......
 The “institutional” principle:
 stakeholder participation
 subsidiarity (federal, state,
municipality, users…)
 greater role for private sector,
NGOs and women
 The “instrument” principle:
 greater attention to economic
value of alternative uses
 greater use of economic instruments
(water rights, user charges…)

17. Challenges in water managementChallenges in water management
 Small stocks of water infrastructure in developingSmall stocks of water infrastructure in developing
countries compared to those in climatically similarcountries compared to those in climatically similar
industrial countriesindustrial countries
 Simultaneous need for institutional solutions/ reformsSimultaneous need for institutional solutions/ reforms
 Pricing for fiscal sustainability and to encouragePricing for fiscal sustainability and to encourage
conservation (agriculture uses about 70% of water,conservation (agriculture uses about 70% of water,
and is very wasteful)and is very wasteful)
 Ownership and devolution of managementOwnership and devolution of management
responsibilityresponsibility
 Urgency in developing an integrated package ofUrgency in developing an integrated package of
structural and non-structural tools which respond tostructural and non-structural tools which respond to
the imbalances by human demand and hydrologicthe imbalances by human demand and hydrologic
patterns accentuated by global changespatterns accentuated by global changes

18. Making Forestry more SustainableMaking Forestry more Sustainable

19. Forests are especially important toForests are especially important to
the poor…the poor…
 1.6 billion rural people are dependent upon forests to some extent.1.6 billion rural people are dependent upon forests to some extent.
 1 billion out of 1.2 billion extremely poor depend on forest resources for part1 billion out of 1.2 billion extremely poor depend on forest resources for part
of their livelihoodsof their livelihoods
 350 million people are highly dependent on forests.350 million people are highly dependent on forests.
 60 million indigenous people are almost wholly dependent on forests.60 million indigenous people are almost wholly dependent on forests.
Source: World Bank Forests Strategy and Policy, 2002.Source: World Bank Forests Strategy and Policy, 2002.
CountryCountry Forest Dependent PopulationForest Dependent Population
IndiaIndia 275 million275 million
CongoCongo 62.6 million62.6 million
IndonesiaIndonesia 40-70 million40-70 million
MyanmarMyanmar 25 million25 million
VietnamVietnam 20 million20 million
TurkeyTurkey 8 million8 million
Source: APFSOS, WP/27Source: APFSOS, WP/27

20. …… and to the global economy…and to the global economy…
Production of wood and manufactured forest products contribute moreProduction of wood and manufactured forest products contribute more
than US$450 billion to the world market economy.than US$450 billion to the world market economy.
The annual value of internationally traded forest products totalsThe annual value of internationally traded forest products totals
US$150-200 billion.US$150-200 billion.
Globally, forest based industries provide about 47 million full time jobsGlobally, forest based industries provide about 47 million full time jobs..

21. …… and the environmentand the environment
Forest destruction is responsible for globalForest destruction is responsible for global
biodiversity losses of 2-5% per decade;biodiversity losses of 2-5% per decade;
Forest destruction (especially though burning) isForest destruction (especially though burning) is
estimated to contribute between 10 and 30% ofestimated to contribute between 10 and 30% of
all carbon gas emissions into the atmosphere;all carbon gas emissions into the atmosphere;
slowing deforestation and restoring forests areslowing deforestation and restoring forests are
important elements of a strategy for slowingimportant elements of a strategy for slowing
global carbon emissions.global carbon emissions.

22. 3 Pillars of Sustainable Forestry3 Pillars of Sustainable Forestry
 Harnessing the potential ofHarnessing the potential of
forests to reduce povertyforests to reduce poverty
 Integrating forests intoIntegrating forests into
sustainable economicsustainable economic
developmentdevelopment
 Protecting local andProtecting local and
global forest valuesglobal forest values

23. Fighting PovertyFighting Poverty
 Supporting policy, institutional and legal frameworksSupporting policy, institutional and legal frameworks
for forest development and to ensure rights offor forest development and to ensure rights of
forest-dependent peoples;forest-dependent peoples;
 Promoting the scaling up of collaborative forestPromoting the scaling up of collaborative forest
management;management;
 Integrating forest, agro-forestry, and smallIntegrating forest, agro-forestry, and small
enterprises into rural development strategies.enterprises into rural development strategies.

24. Making forestry sustainableMaking forestry sustainable
 Supporting the development of policies andSupporting the development of policies and
projects for sustainable forest management andprojects for sustainable forest management and
conservation;conservation;
 Building capacity for improved governance;Building capacity for improved governance;
 Supporting the containment of illegal activities;Supporting the containment of illegal activities;
 Addressing fiscal and trade issues related to forestAddressing fiscal and trade issues related to forest
sector and products;sector and products;
 Proactively promoting catalytic investments in forestProactively promoting catalytic investments in forest
management and conservationmanagement and conservation..

25. Improving governance requiresImproving governance requires
 Institutional reforms/buildingInstitutional reforms/building
 Political accountabilityPolitical accountability
 Competitive private sectorCompetitive private sector
 Public sector reform (including judiciary andPublic sector reform (including judiciary and
police)police)
 Civil society participationCivil society participation

26. Institutional reformsInstitutional reforms
 Establish clear property rightsEstablish clear property rights
 Establish well-defined permanent forest estatesEstablish well-defined permanent forest estates
 Reduce distortions to trade in forest productsReduce distortions to trade in forest products
 Set the “right” level of forest taxation and rentSet the “right” level of forest taxation and rent
capturecapture
 Simplify forestry legislation and strengthenSimplify forestry legislation and strengthen
implementationimplementation

27. Examples of institutional reformsExamples of institutional reforms
 PhilippinesPhilippines: Multisectoral Forest Protection Committees: Multisectoral Forest Protection Committees
 CambodiaCambodia: Forest Crime Monitoring Unit: Forest Crime Monitoring Unit
 BrazilBrazil: Geo-referenced licensing system and identification: Geo-referenced licensing system and identification
of illegal logging from land-use monitoring via satelliteof illegal logging from land-use monitoring via satellite
imageryimagery
 IndiaIndia: Village Forest Protection Committee (Joint Forest: Village Forest Protection Committee (Joint Forest
Management)Management)
 BoliviaBolivia: Legislative reforms conferring greater: Legislative reforms conferring greater
responsibility to individuals and local communitiesresponsibility to individuals and local communities
 EcuadorEcuador: Independent certifiers and outsourcing of: Independent certifiers and outsourcing of
supervisory functions of the forest departmentsupervisory functions of the forest department
 GhanaGhana: Timber Utilization Contracts: Timber Utilization Contracts

28. Protecting local and global valuesProtecting local and global values
 Build markets for international public goods such asBuild markets for international public goods such as
carbon;carbon;
 Build national markets for environmental services;Build national markets for environmental services;
 Strengthen policies and investments inStrengthen policies and investments in
conservation and protected areas;conservation and protected areas;
 Assure that investments and programs do no directAssure that investments and programs do no direct
or indirect harm to the permanent forest estate.or indirect harm to the permanent forest estate.

29. Effective certification requiresEffective certification requires
 compliance with relevant laws;compliance with relevant laws;
 recognition of and respect for any legally documented orrecognition of and respect for any legally documented or
customary land tenure and use rights as well as the rights ofcustomary land tenure and use rights as well as the rights of
indigenous peoples and workers;indigenous peoples and workers;
 measures to maintain or enhance sound and effective communitymeasures to maintain or enhance sound and effective community
relations;relations;
 conservation of biological diversity and ecological functions;conservation of biological diversity and ecological functions;
 measures to maintain or enhance environmentally sound multiplemeasures to maintain or enhance environmentally sound multiple
benefits accruing from the forest;benefits accruing from the forest;
 prevention or minimization of the adverse environmental impactsprevention or minimization of the adverse environmental impacts
from forest use;from forest use;
 effective forest management planning;effective forest management planning;
 active monitoring and assessment of relevant forest managementactive monitoring and assessment of relevant forest management
areas; andareas; and
 the maintenance of critical forest areas and other critical naturalthe maintenance of critical forest areas and other critical natural
habitats affected by the operation.habitats affected by the operation.

30. Sustainable FisheriesSustainable Fisheries

31. Why are fisheries so important toWhy are fisheries so important to
developing countries?developing countries?
Trade and incomeTrade and income
generation on national andgeneration on national and
global levels :global levels :
 Global trade of US$ 55-66 billionGlobal trade of US$ 55-66 billion
annually, with 50 per cent of tradeannually, with 50 per cent of trade
from developing countriesfrom developing countries
 A Major Source of Income and
Export for developing countries: at
least 13 developing countries where
fisheries is more than 5 percent of
GDP, e.g. Ghana; Senegal;
Namibia;
 License fee income.License fee income.

32. And important for poverty reductionAnd important for poverty reduction
 A Source of Livelihoods &
Income for 30 million poor
fishers and their families,
employing an additional 150
million people in developing
countries in associated sectors,
e.g. marketing, boat-building,
etc.;
 A Critical Source of Food
Security for 400 million poor
people;
 Potential source of
alternative employment for
rural poor through aquaculture.

33. Key elements in sustainable fisheriesKey elements in sustainable fisheries
strategy: (1) Governancestrategy: (1) Governance
 Adoption of the Ecosystem Approach to
Fishing;
 Introduction of Institutional, Regulatory
and Judicial framework;
 Specific institutions for fisheries
management (including Sector Councils,
independent agencies for MCS), with
transparent decision making mechanisms
and agreed trade offs
 Introduction of Property and Use Rights;
The allocation of fishing rights to interested
fishers: geographical, or quota systems
 Introduction of Co-Management Systems
Establishing shared governance responsibility
for the fisheries between government and
local users

34. Key elements in sustainable fisheriesKey elements in sustainable fisheries
strategy: (2) Fisheries managementstrategy: (2) Fisheries management
 Fishing Capacity Reduction;Fishing Capacity Reduction;
 Decommissioning fishing vessels or buying
back licenses is the most direct way of tackling
overcapacity
 Fully Protected Marine Reserves andFully Protected Marine Reserves and
Marine Protected areas;Marine Protected areas;
- Longer term closure to allow recovery of
stocks
 Promotion of alternative livelihoods;
 Creation of economic alternatives to fishing for
small scale fishers and fishing communities
 Aquaculture;
 Expected to help meet world demand for fish
and seafood
 Food safety and eco-labeling programs
 To enhance added value and fishers income

35. Global WarmingGlobal Warming

36. Prototype Carbon Fund (PCF)Prototype Carbon Fund (PCF)
Recognizing that global warming will have the greatestRecognizing that global warming will have the greatest
impact on its client countries, on July 20th, 1999 theimpact on its client countries, on July 20th, 1999 the
Executive Directors of the World Bank approved theExecutive Directors of the World Bank approved the
establishment of the PCF, with the operationalestablishment of the PCF, with the operational
objective of mitigating climate change. This aspires toobjective of mitigating climate change. This aspires to
promote the Bank's tenet of sustainable development,promote the Bank's tenet of sustainable development,
to demonstrate the possibilities of public-privateto demonstrate the possibilities of public-private
partnerships, and to offer a 'learning-by-doing'partnerships, and to offer a 'learning-by-doing'
opportunity to its stakeholders.opportunity to its stakeholders.

37. Bank’s BioCarbon Fund ($53 million worth of projects in FY05)Bank’s BioCarbon Fund ($53 million worth of projects in FY05)
Caribbean
7%
South Asia
4%
Subsaharan Africa
29%
Eastern Europe
12%
East Asia
5%
Latin America
43%
Commercial
plantations
11% Avoided
deforestation
7%
Environmental
plantings
38%
Sustainable
agriculture
1%
Agroforestry
21%
Silvopastoral
3%
Community
reforestation
19%

38. The Role of Trade in AgricultureThe Role of Trade in Agriculture
and Rural Developmentand Rural Development

39. The Role of TradeThe Role of Trade
 Agriculture (including fisheries and forestryAgriculture (including fisheries and forestry
products) is a highly tradable sectorproducts) is a highly tradable sector
 Trade is the best lever for agricultural growthTrade is the best lever for agricultural growth
 Raising incomes mitigates pressure on theRaising incomes mitigates pressure on the
environmentenvironment
 Not all increases in trade are environmentallyNot all increases in trade are environmentally
benign, but….benign, but….
 The best solution is generally to target theThe best solution is generally to target the
problem directly by adopting appropriateproblem directly by adopting appropriate
environmental policies, not to restrict trade,environmental policies, not to restrict trade,
and…and…
 Trade gives consumers a powerful lever toTrade gives consumers a powerful lever to
effectuate change in the supplying country (faireffectuate change in the supplying country (fair
trade, certification)trade, certification)

40. But developing countries’ share of agriculturalBut developing countries’ share of agricultural
exports to rich countries have stagnated, while South-exports to rich countries have stagnated, while South-
South trade has grown, suggesting that trade barriersSouth trade has grown, suggesting that trade barriers
need to be lowered….need to be lowered….
1980/81 1990/91 2000/01
Agriculture
Total 35.4 32.2 36.3
To Developing 9.5 8.9 13.4
To Industrialized 25.8 23.3 22.9
Manufacturing
Total 19.3 22.7 33.4
To Developing 6.6 7.5 12.3
To Industrialized 12.7 15.2 21.1
Source: COMTRADE

41. But that’s anotherBut that’s another
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storystory
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