Distributional Equity Objective

1
Distributional Equity Objective

• Internal Review Board
• World Resources Institute
• 7 June 2005

2
Source World Bank, 2005
3
(No Transcript)
4
Why Worry About Poverty and Inequity?

• Constitutions and international agreements
  guarantee right to life/development
• Inequity retards econ growth and can cause
  poverty equity promotes econ growth
• Inequity breeds resentment, especially when basic
  needs not met, and can lead to conflict,
  violence, separatist movements

5
Civil Wars Linked to Resource Wealth Africa,
1990-2002

• STATE YEAR NATURAL RESOURCE
• Angola 1975-2002 Oil, diamonds
• Angola (Cabinda) 1975 Oil
• Congo, Rep. of 1997 Oil
• Congo, Dem. Rep. of 1996- Copper, gold, cobalt,
  diamonds, coltan
• Liberia 1989-96 Timber, iron, rubber, gold,
  diamonds, rubber
• Morocco 1975- Oil, phosphates
• Sierra Leone 1991-2000 Diamonds
• Sudan 1983-2005? Oil

6
Why Should Environmentalists Care?

• Poverty limits investments in sound env mngt
  inequity-based conflicts lead to env sabotage and
  env corruption
• Poverty reduction is driving development it is
  important to ensure that pro-poor initiatives
  also promote sound env mngt
• Env goods are increasingly being marketed, it is
  important to ensure that they also create
  incentives for sound env mngt
• The commercialization of large env endowments
  offers significant opportunities for generating
  incentives for sound env mngt
• Distribution policy is common instrument used by
  govts, it is important to identify uses that
  contradict env mngt, understand trade-offs, and
  promote win-win solutions

7
What Do We Know About Poverty Reduction,
Inequity, and the Environment?

• Econ growth is necessary, but insufficient
  condition unregulated market econ can create
  poverty/inequity
• Poor lack access to env and other assets cannot
  participate in new econ opportunities
• As env gains value, elites often with critical
  govt support - take control and capture benefits
  pass costs on to the poor

8
Distribution as a Poverty Reduction Instrument

• Powerful instrument for creating incentives
  commonly used to meet national objectives
• Can be more effective than econ growth alone
  small distribution changes can have large effects
• Distribution of assets, coupled with pro-poor
  growth can speed up their participation in new
  econ opportunities
• Has been used on a limited basis for promoting
  env management huge potential to contribute more

9
Why Focus on Distribution of Env Assets?

• Env-dependent national and household economies
  rural poor most dependent (lever for reform)
• The poorer the country, the more significant is
  natural capital in determining overall
  distribution of wealth
• Large, underutilized endowments will drive econ
  for yrs
• Not evenly distributed in space not accessible
  to all
• Easier to distribute than other forms of capital

10
Obstacles

• Underestimated Value Env distributions rarely
  recognized in poverty plans. Lack of info on
  values, effectiveness, outcomes
• Vested Interests Beneficiaries close to
  political power losers are marginalized. Lack
  of transparency, accountability, democracy
• Distribution Contradictions Principles often in
  conflict with one another. Lack of info on
  trade-offs, reconciling competing interests,
  win-win policies

11
Oil Producing States
12
Political Opportunities for Influence

• International donor community under pressure
• PEP, Poverty Offices, WDR 2006, MDG review
• Governments and politicians under pressure
• Poverty is a campaign issue - 6-7 LAC countries
  have elected left-leaning presidents ( Mexico?)
• Poverty plans are principal vehicles for policy
  reform and investments

13
Charcoal Profits, Senegal
1994 2002/3
12 22 - - 53 10 3
? ? - - ?
14
Mechanisms of Benefit Concentration

• Management plans
• RC right to say no
• RC labor allocation
• Access to RC

• Villagers ? Forest access control
• Threats of violence
• Village access (wells housing)
• Woodcutters ? Access to merchants
• Social ties ? Social identity
• Technical skills
• Merchants ? Control of labor opportunities
• Permits
• Credit
• Control of market access
• ? Control of access to markets
• Quotas, licenses
• Cooperative membership
• Social ties with government
• ? Leverage over prices
• Collusive price fixing
• Inter-locking credit-labor arrangements
• Misinformation
• Wholesalers ? Control of distribution

15
Central Government Public Servicesand the Poor
Madagascar
district poverty incidence
p.c. health to districts
p.c. edu to districts
Source E Galasso, The World Bank, 2002
16
(No Transcript)
17
(No Transcript)
18
Sources World Bank, 2005World Resources
Institute, 2002-2004
19
Objective Statement

• Within the next five years, the international
  discourse on development will recognize
  environmental distribution as a poverty reduction
  instrument AND governments in three countries
  will adopt and implement distribution policies
  that reduce poverty by promoting more equitable
  access to environmental benefits while providing
  incentives for sound resource management.

20
International Objectives

• Env distribution recognized in international
  discourse on poverty reduction
• Env distribution incorporated into preparation
  and implementation guidelines for major poverty
  reduction instruments (PRSPs, MDGs)
• Target Audience WB/IMF (PRSP), UN (MDGs),
  bilaterals (PEP)

21
National Objectives Govt Policies

• Repeal distribution policies that contradict
  poverty reduction and env management
• Adopt distribution policies that provide equity
  of opportunities/access and incentives for sound
  env management
• When possible, develop env distribution policies
  that target the poor

22
National Objectives - Continued

• Target Audience
• Env distribution policy decision makers and
  decision-making processes
• Distributional equity champions NGOs,
  legislators, elected local leaders, corporate
  executives

23
DEO Influence Strategy
WRI
International Institutions
NGOs
Champions
24
Strategy 4 Pronged Approach

• Policy Research. Value costs/benefits, identify
  winners/losers, outcomes, effectiveness
• Outreach. Inform distribution policymakers,
  decision-making processes, champions
• Tools. Develop interactive tools to assess
  policy options and monitor implementation/outcomes
  
• Mobilization. Strengthen champions (organization
  development, outreach/advocacy, enabling env)

25
Countries and Natural Resources - Criteria

• Poverty rate - WRI Board interest
• Level of inequity - Opportunities for reform
• Potential for scaling up - Availability of data
• Env dependency - Separate accounting system
• WRI partners - Funding opportunities
• WRI experience

26
WRI Projects and Staff

• Projects. Distributional Equity project,
  Environmental Accountability in Africa, Global
  Forest Watch, World Resources Report, Poverty
  Mapping, Lauretta/Suzies valuation work
• Objectives. Access Objective, Forestry
  Objective, and possibly Ag and Trade Objective
• New Hires. Economist, LAC expert, PRSP expert

27
Indicators of Success

• Discourse on poverty reduction recognizes env
  distribution
• WB/IMF PRSP guidelines and national PRSPs reflect
  the importance of env distribution
• Govts adopt distribution policies that provide
  equity of access and opportunities
• Govts use WRI-developed tool to inform
  decision-making
• NGOs use WRI-developed tool to monitor govt
  decisions
• Communities capture a fair share of env
  costs/benefits, reducing poverty and promoting
  sound env mngt

28
NAME THAT AUTHOR

• The test of our progress is not whether we add
  more to the abundance of those who have much it
  is whether we provide enough for those who have
  too little.