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Environment

Natural resource booms are a mixed blessing for local communities, too*

Punam Chuhan-Pole's picture

The impact of natural resource wealth on macroeconomic outcomes is well researched, with the debate centered on whether resources are bad for development (i.e., the phenomenon of the resource curse). However, relatively little attention has been given to examining the effect on communities where those resources are located. 

But interest in the local impact of resource abundance is growing, underpinning a nascent literature.  The focus of this research is on exploring whether extractive activities improve or harm welfare in adjoining regions, and how the benefits or costs are transmitted to the local population.  The answers to these questions can inform policy, leading to better outcomes, and may also help us understand the sources of regional and social tensions associated with extractive industries. 

Human wellbeing depends on a functioning planet—the Pope’s call

Paula Caballero's picture
Children in Bhutan look out on terraced fields. (Photo by Curt Carnemark / World Bank)The papal encyclical “on care for our common home” reflects the kind of insightful and decisive leadership that will be needed to reverse trends that will affect humanity’s capacity to feed itself and provide for collective well-being. The encyclical is not only a sobering call to address climate change, but also a manifesto for environmental stewardship and action. It touches on topics that we, as earth’s dominant species, need to urgently care about if we are to keep millions out of poverty today and tomorrow, and deliver on the rising expectations of a global middle class.

At the core of the encyclical is both a concern for the health of the planet and for the earth’s poor, reflected in a commitment to social values and integrity, environmental resilience, and economic inclusion.

The stock-taking begins, aptly, with pollution: “Some forms of pollution are part of people’s daily experience. Exposure to atmospheric pollutants produces a broad spectrum of health hazards, especially for the poor, and causes millions of premature deaths.” The World Bank’s latest edition of the Little Green Data Book finds indeed that in low and middle-income countries, 86% of the residents are exposed to air pollution levels (measured in exposure particulate matter less than 2.5 microns in diameter) that exceed World Health Organization (WHO) guidelines. The WHO last year made headlines when it calculated that 7 million people had died prematurely from indoor and outdoor air pollution in 2012. From safer cookstoves in rural areas, to better air quality management in fast growing cities, this is an area where solutions are known and must be urgently applied.

​Environmental conservation, tourism and economic development: an avant-garde Brazilian solution through PPPs

Maria Emília Barbosa Bitar's picture
Note: This blog entry was adapted from an original submission for the PPIAF Short Story Contest. It is part of a series highlighting the role of Public-Private Partnerships (PPPs) in projects and other transformative work around the world.

For the most part, protected areas in Brazil are managed by the public sector. As a result, like other countries, these areas face conservation difficulties, including a lack of resources for maintenance and other initiatives.
 
Gruta de Maquiné, part of the Peter Lund 
Cave Route. Photo: Francisco Martins/flickr

Because of this lack of public-sector financial and human resources, the private sector has provided a significant portion of funding for managing protected areas. One of these cases is in Brazil’s Minas Gerais State. The Secretary of State for Environment and Sustainable Development (SEMAD), Forest State Institute (IEF) and Public-Private Partnership Central Unit collaborated to develop a PPP model focused on management, conservation and operation of three protected areas, located in the State’s the karst region: PPP Peter Lund Cave Route.

The PPP Peter Lund Cave Route aims to structure a single, singular national and international tourist track, aligning the unique natural and cultural elements of the karst region. This new management model is demonstrating results for conservation and sustainable development, including the mobilization of public policies that value one of Brazil’s greatest characteristics: biodiversity.

Climate change, health and opportunities for sustainable development

James Close's picture
Mosquito nets in Nigeria. Arne Hoel/World Bank


In a joint post, World Bank Director for Climate Change James Close teams up with Environment and Natural Resources Global Practice Senior Director Paula Caballero and Health, Nutrition and Population Global Practice Senior Director Tim Evans to comment on a new report released by The Lancet, which touches upon aspects of each of their portfolios and underscores the value in working collaboratively toward development solutions. 

 
In a new report released today, the Lancet Commission on Health and Climate Change tells us that “tackling climate change could be the greatest global health opportunity of the 21st century.”  
 
Among its recommendations, it calls on governments to invest in climate change and public health research and monitoring and surveillance, and to scale-up financing for climate-resilient health systems worldwide.
 
At the World Bank, we couldn’t agree more.

On Pope Francis’ encyclical letter, the environment and health

Patricio V. Marquez's picture



Let me begin with a disclaimer.  I attended Jesuit schools as a boy and adolescent.  Belief in the sanctity of human life and the principles of social justice, which were at the core of the teaching imparted there, shaped me.  The vision and language spoken by Pope Francis, himself a Jesuit, with an emphasis on the “preferential option for the poor and vulnerable”, profoundly resonate with me.

Shades of grey in the global green movement

Leszek J. Sibilski's picture

Portrait of elderly man in Bhutan"Each new generation is reared by its predecessor; the latter must therefore improve in order to improve its successor. The movement is circular." - Emile Durkheim
 
How are Ban Ki-moon, Secretary-General of the United Nations, Jim Yong Kim, President of the World Bank Group, Christiana Figueres, Executive Secretary of the UN Framework Convention on Climate Change, Bill Mckibben, Pope Francis, and Al Gore alike? The answer is very simple: they are part of a 60+ cohort, which includes baby boomers and their predecessors. And they are all very effective and passionate about how to tackle the biggest threat of our times: climate change.
 
I vividly remember that the first person who drew my attention as a child to the environment was my grandfather who was a small farmer in my native Poland. Around twenty-five years ago, during my first visit to Siberia, tribal seniors raised the issue of the melting of the “eternal ice” as well. Neither my grandfather nor the seniors were highly educated, but they were able to observe the rapid changes in their own environment. Despite this, we did not heed their concerns as they did not possess academic credentials. Now that over five thousand researchers have agreed that climate change is occurring, we are suddenly starting to pay attention.
 
Older adults constantly address the issues involved in global warming to Millennials, youth or even children, fully aware that their generation’s irresponsible behavior contributed immensely to the current state of the Earth. But why exclude the culprits? What happened to resocialization and second chances? Even James Madison was aware of generational responsibilities when he stated: “Each generation should be made to bear the burden of its own wars, instead of carrying them on, at the expense of other generations.”
 
The baby boomers and the silent generation are reaping the benefits of the “longevity dividend”. Why don’t we start working together towards the survival of our kind not only as preachers, but also in the trenches of the global climate change movement?  Members of the grey generations are often bold, skilled, experienced, financially independent, and in most cases, are very active and sensitive to social inequity. As the old saying goes: the funeral shroud has no pockets. It is in their best interest to be part of this movement.

To fight desertification, let's manage our land better

Ademola Braimoh's picture


Every year, we lose 24 billion tons of fertile soil to erosion and 12 million hectares of land to desertification and drought.  This threatens the lives and livelihoods of 1.5 billion people now.

In the future, desertification could displace up to 135 million people by 2045. Land degradation could also reduce global food production by up to 12% and push world food prices up by 30%. In Egypt, Ghana, Central African Republic, Pakistan, Tajikistan and Paraguay, land degradation could cause an annual GDP loss of up to 7%.

Pressure on land resources is expected to increase as populations grow, socio-economic development happens and the climate changes. A growing population will demand more food, which means that unsuitable or especially biodiverse land will be claimed for farming and be more vulnerable to degradation. Increased fertilizer and pesticide use related to agriculture will increase nutrient loading in soils, causing eutrophication and declines in fertility over time. Climate change will also aggravate land degradation—especially in drylands, which occupy 40% of global land area, and are inhabited by some 2 billion people. Urban areas, which are located in the world’s highly fertile areas, could grow to account for more than 5% of global land by mid-century.

 Unless we manage our land better, every person will rely on just .11 hectares of land for their food; down from .45 hectares in 1960. 

Financing community-based tourism: 9 ways to get taken seriously

Hermione Nevill's picture



Reducing risk is the only way for community joint-ventures to get serious with commercial banks. Without commercial finance, this niche tourism sector might never deliver on its potential. Photo: World Wildlife Fund
 
Over the last 20 years, joint-ventures between local communities and the private sector have grown up as a feature of the sustainable tourism development agenda. Typically, the community provides the land, the heritage or the wildlife asset base while the private sector brings the capital, management know-how and business networks. When they work well, these partnerships contribute substantially to local economic and social development, as well as providing professional, unique and authentic tourism experiences for visitors.
 
Lena Florry is an Area Manager for Wilderness Safaris, the private-sector partner in a community joint venture (CJV) lodge in Namibia. ”What we have here at Damaraland really changes our lives,” she says. “Previously, in our village, I was herding goats. Now we have good jobs and a much better life.” Crucially, Lena is also a member of the local community and takes personal pleasure in sharing the model’s success story with the camp’s US$500-a-night paying guests.
 
Typical benefits include income for communities through lease or contract agreements, employment and supply-chain opportunities, skills and knowledge transfer from the private sector, and usually a kind of joint “tourism asset protection” like wildlife preservation or heritage protection. In Namibia, for example, community conservation generated about US$7 million in returns for local communities in 2013, and the elephant population doubled in 20 years.
 
While much emphasis has been placed on the development impacts of this model, the actual health of the businesses has often been overlooked. As long as the ventures continue to deliver a development dividend – such as contributions to a community fund, or increased biodiversity – all is believed well. For the venture’s supporters, it may then come as a surprise when applications for commercial finance are rejected.
 
“We would like to finance the sector,” says Christo Viljoen at First National Bank (FNB) Namibia. “But our biggest challenge is to determine the financial viability of the community joint-ventures. We find the risks involved are not properly addressed in the business plans.”
 
Banks report that risks typically have to do with corporate governance, low-quality financial data, collateral, the level of experience of the sponsor, and a host of structural problems in the CJV business – not least, the balance between the development dividend versus the profitability of the business. All these factors help to undermine a firm’s viability. A business that cannot demonstrate financial viability – and, thus, show how it will pay back a loan – cannot be financed.
 
This presents a very real problem.  Without the means to make necessary investments in the business (such as refurbishment or expansion), the quality of the tourism product deteriorates, occupancies and rates decline, and funds for the community and for wildlife protection drop.
 
In an effort to help the various stakeholders increase the financial viability of CJVs, reduce risk and increase loans, the World Bank Group and the World Wildlife Fund released “nine tips” at the recent tourism trade show ITB Berlin 2015. Dr. Hannah Messerli of the World Bank’s Trade and Competitiveness Global Practice said, “We believe that destinations that address these issues are more likely to provide comfort to the banks in lending.”

'Fish Queens' in Africa

Jingjie Chu's picture
A woman cleans a fish while carrying her child on her back in Ghana. © Andrea Borgarello/World Bank
​​Intriguing, I thought when I first heard the phrase. In Ghana’s small-scale fisheries, the 'Fish Mommy' or 'Fish Queen' is the matriarch of the fish landings. She also doubles as the local authority on all post-harvest operations, exercising a great deal of control over the local market by setting the prevailing price of that day’s fresh catch every morning on the docks of coastal communities in Ghana.

Actions speak louder than words: Opportunities abound for forests in combating climate change

Ellysar Baroudy's picture
Franka Braun/World Bank


Over the past several weeks, we have made headway in our efforts to reduce deforestation and promote sustainable land use as part of a broader World Bank Group approach to combat climate change. Partnering with the Forest Carbon Partnership Facility (FCPF), the Democratic Republic of Congo has taken a major step by assessing its readiness for a large-scale initiative in which developing forested countries keep their forests standing and developed countries pay for the carbon that is not released into the atmosphere. Likewise, other countries in the 47-country FCPF partnership are making strides in their efforts to prepare for programs that mitigate greenhouse gas emission and support sustainable forest landscapes.

This approach is also known as REDD+, or reducing emissions from deforestation and forest degradation. Active REDD+ programs can help reduce the 20 percent of carbon emissions that come from forest loss and simultaneously provide support to the 60 million people, including indigenous communities, who are wholly dependent on forests.


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