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Delivering Sustainable Solutions : engaging with
Governments and Aid Agencies.WWF annual conference 2004
NGO and DonorsA key partnership for sustainable development
Pierre Jacquet Executive Director for Strategy & Chief Economist
French Development Agency (AFD)
Antananarivo. 6-8-2004
Outline• Why are we here :
– Who are we ? The French main operator of ODA– Development aid and Sustainable Development
• MDG : a missed opportunity for SD ?
• Is NRM pro-poor?
• NGO and donors : unlikely but critical relationship– Why should NGOs be concerned with economic development ?
– a balanced partnership between NGOs and donors
• Challenges ahead
Who are we ? (1/3)
• AFD
– Key operator of French ODA within the French ODA system
– Active in 60 countries (Africa, Asia, French overseas territories) with a network of 45 « agencies ».
– 6 « new » countries opened in 2003 to our operations (Egypt, Jordan, Syria, Turkey, Thailand and China)
• TOTAL OPERATIONS (2002) : € 1.6 billion (incl. 0.5 in French overseas territories)
• 1.200 employees
• AFD also manages the French GEF (FFEM)
TOTAL INVESTMENT (2002) € 1 652 M
PROJECT FINANCING IN FOREIGN COUNTRIES : € 777 M
URBAN EQUIPMT116,6116,6
TRANSPORT
113113
ENERGY
92,792,7
FINANCIAL SECTOR 235,6235,6
OTHERS
(Education, industries etc.)
120,3120,3
RURAL DEVELOPMENT AND ENVIRONMENT
70,370,3
Who are we (2/3)
Who are we (3/3)
• A major reform of AFD undertaken in 2002– A small, bilateral institution --> strategic focus, search
for impacts
– Key objectives : Global public goods, poverty reduction, sustainable development. View of ODA as a major public policy for globalization, at the juncture of the interests of the North and of the South
– Key commitments : quality, effectiveness• Measuring impacts, accounting for the use of public resources
• Managing for results
• Strategic thinking
Outline• Why are we here :
– Who are we ? The French main operator of ODA
– Development aid and Sustainable Development• MDG : a missed opportunity for SD ?
• Is NRM pro-poor?
• NGO and donors : unlikely but critical relationship– Why should NGOs be concerned with economic development ?
– a balanced partnership between NGOs and donors
• Challenges ahead
ODA and Environment
• Three reasons why environment is at the heart of effective ODA– Fragile natural resources are often the only assets of the
poors : conservation is crucial for development. SD as a social process and a negotiation rather than a result
– Environment is key to several Global public goods
– Evolution of donors ’ perspectives : NRM is a central ingredient for quality and accountability
ODA and NRM (2): What role for MDGs?
• MDG is a powerful rallying message for donors• It is now universally used to measure impacts and communicate
on results• SD should lead to increased focus on environment. But
environment has only a backseat (MDG 7 : environment with water, sanitation and slums).
• We should see MDGs as a scorecard, not as exclusive focus or principles for action– Our objectives are wider– Results matter; long term, perennial results imply a focus on development
and growth processes. Here is the link with SD
Is NRM pro-poor?
• Like growth, NRM is an essential part of any sustainable pro-poor policy
• But NRM is not necessarily framed as a pro-poor policy, nor is it necessarily contributing to poverty reduction.
• Donors currently think of operationalizing pro-poor growth strategies. Similarly, there is a need to operationalize pro-poor NRM strategies
Outline• Why are we here :
– Who are we ? The French main operator of ODA
– Development aid and Sustainable Development• MDG : a missed opportunity for SD ?
• Is NRM pro-poor?
• NGO and donors : unlikely but critical relationship– Why should NGOs promote economic development ?– a balanced partnership between NGOs and donors
• Challenges ahead
Why should environmental NGOs promote economic development?
• Poverty traps : activities mining environment (soil, water resources, forests, biodiversity)
• SD implies the ability to think ahead, which depends on the standard of living. The poor have very short term horizons.
• SD implies growth and poverty reduction : the environment concern alone is not sustainable. How do your programmes meet the test ?
•Forests for life•living waters•endangered seas•species …
==>from a poverty-growth-inequality triangle to a SD quadrangle involving NRM
Outline• Why are we here :
– Who are we ? The French main operator of ODA
– Development aid and Sustainable Development• MDG : a missed opportunity for SD ?
• Is NRM pro-poor?
• NGO and donors : unlikely but critical relationship– Why should NGOs be concerned with economic development ?
– A balanced partnership between NGOs and donors
• Challenges ahead
Environment for development
• Influence all stakeholders in development South and North : governments (including Ministries of finance), businesses, donors, local populations
• Mainstream environment in national strategies (PRSPs) and in national sector policies (infrastructure, energy, agriculture, urban planning, etc)
• Build local capacities : – NGOs close to populations
– Build local capacities to negotiate and operate sustainable development
• Provide scientific inputs to make the case for SD (ecoregion,
hotspots ...)
Balanced partnership
• Building on specific & complementary expertise
– Exchanging field experiences & methodologies
– Independent monitoring of our results
• A professional Alliance
– The political implications of our partnership : needs for
consistency & responsibility
– Trust and long-term relationship : on the field in the countries but
also between WWF-AFD headquarters
The role of economics
• Valuing the contribution of environmental approaches to convince all stakeholders
• Three examples to highlight the importance a common understanding, vision and objective of NGOs, Populations, Government and Donors :– Protected areas in Madagascar
– Costs of environmental degradation
– Sustainable management of central Africa forests
( -9 / +10) $Total
290 000 water user households (irrigated rice farmers, drinkable water)
+3 $(Very
conservative assumption)
Hydrological protection of watersheds
Tourism operators (90%) / PA Network managers (10%)
+4 $Eco-tourism
PA Network manager
+3 $Biodiversity conservation
50 000 farmers households
- 4 $Deforestation opportunity cost
5 $
(still discussed)
Cost of network management and development
Gainers/ Losers (for the network (1.5 million hectares)
Amount per hectare of PA and per year
Cost/benefit
Cost/Benefit Analysis
Source : WB-AFD Carret-Loyer
0,00%
0,50%
1,00%
1,50%
Algeria Egypt Syria Lebanon Tunisia Morocco
Damage costs from Land Degradation
Source :Cost of Environmental Degradation. WB Maria Sarraf Annual damage costs from land degradation as % of GDP
Congo basin forest management
• A strong scientific justification : second world forest basin with high megabiodiversity in rather good condition
• Conflictual approaches : conservation, fiscal and tax incomes, transparency, legislation, sustainable management of forest concessions, illegal logging, bushmeat…
• Result : Confusion, none of these approaches is sustainable by itself.
• PROPOSAL : a joint promotion of the sustainable management of 100% of this natural resource asset :
– 10% in Protected areas (PAs)
– 90 % in sustainable forest concessions (big, medium and villages)
– in a sectorial policy framework including World Bank
• The paradox : WWF is collaborating with AFD on that concern while others are fighting against
Outline• Why are we here :
– Who are we ? The French main operator of ODA
– Development aid and Sustainable Development• MDG : a missed opportunity for SD ?
• Is NRM pro-poor?
• NGO and donors : unlikely but critical relationship– Why should NGOs be concerned with economic development ?
– a balanced partnership between NGOs and donors
• Challenges ahead
Four challenges ahead• 1. High priority : develop our common actions on the field =
Quirimbas, tropical forest, PAs of Madagascar, marine environment ...
• 2. Invest more in institutions for NRM :– At the national level : sector approach (ex: malagasian fisheries),
national development policies or PRSP
– At the global level : the environment pillar of global governance is yet to create
• 3. ODA is set to increase over the coming years : how shall we together push environment ahead to the front seat?
Even more challenging !• 4. Consensus building through a sound economic
analysis of the environment-development nexus :– on climate : consensus on the causes and explanations; no
consensus on impacts.
– on biodiversity : promising examples of work at the global level (ecoregions, hotspots, red list …) but no consensus on causes and impacts