OPERATIONALIZING GEF S NEW GEF OP 15 SUSTAINABLE LAND MANAGEMENT WITHIN WORLD BANK INSTRUMENTS LATIN AMERICA THE CARIBBEAN

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1 OPERATIONALIZING GEF S NEW GEF OP 15 ON SUSTAINABLE LAND MANAGEMENT WITHIN WORLD BANK INSTRUMENTS LATIN AMERICA & THE CARIBBEAN L. Berry T. Andersen May 2004

2 Table of Contents Acronyms... ii Introduction: The Importance of Sustainable Land Management in Latin America and the Caribbean; the Scope of the Problem World Bank s Forestry, Water, Rural Development and Poverty Reduction Strategies in the Region; How Do They Relate to Sustainable Land Management in the Latin America and Caribbean Region?... 2 Potential Links Between South Asia s World Bank Strategies and Latin America and the Caribbean Regional Needs with the Global Environment Facility s Operational Program (OP 15)...3 GEF Funding Priorities... 4 Discussion of Local and Global Benefits to the Environment... 7 Possible World Bank Approaches/Strategies for Integrating and Achieving Sustainable Land Management Objectives within the World Bank s Programmatic Lending Program 8 Project Experience in Sustainable Land Management in Latin America and the Caribbean... 9 Opportunities and Challenges to the World Bank in Supporting OP 15 Objectives of Sustainable Land Management in Latin America and the Caribbean Private Sector Involvement: Potential Private Sector Initiatives in Sustainable Land Management in the Latin America and the Caribbean Region Summary Annex 1. Major OP 15 Parameters Annex 2. Some Priority Project Types for Latin America and the Caribbean...16 References Page i

3 Acronyms CAS CDF ENR GDP GEF IBRD IDA IMF LAC LC1 MDG NGO OP PRSP SLM UN UNDP UNEP WB Country Assistance Strategy Comprehensive Development Framework Environment and Natural Resource Gross domestic product Global Environment Facility International Bank for Reconstruction and Development International Development Association International Monetary Fund Latin America and the Caribbean Colombia, Mexico, Venezuela, Country Management Unit Millennium Development Goals Non-governmental organization Operational Program Poverty Reduction Strategy Paper Sustainable Land Management United Nations United Nations Development Programme United Nations Environment Programme World Bank Page ii

4 OPERATIONALIZING GEF S NEW GEF OP 15 ON SUSTAINABLE LAND MANAGEMENT WITHIN WORLD BANK INSTRUMENTS LATIN AMERICA AND THE CARIBBEAN Introduction: The Importance of Sustainable Land Management in Latin America and the Caribbean; the Scope of the Problem. Latin America and the Caribbean is, in general statistical terms, the wealthiest of the developing country regions but, it is also the region with the greatest inequality. It is also a greatly varied region of over five hundred million inhabitants, with 75 percent residing in urban areas which are best described as huge country-dominating megalopolises. While large numbers of these underprivileged individuals reside within the fringes of these larger cities, much poverty within this region is in rural areas. Land degradation and deforestation are important components of rural area poverty with Central America and the Caribbean possessing the highest percentage of severely degraded land in all of the world s regions higher even than Africa, where the problem is generally acknowledged as severe. Twenty-five percent of the land area in this sub-region is regarded as severely damaged, while in South America, fifteen percent falls into this category. Degraded areas are strongly correlated with rural poverty and ironically, with the greatest dependence on the natural resource base. Forty percent of the world s natural forest loss in the past 30 years has been in Latin America and the Caribbean totaling 167 million hectares. The twin process of land degradation and deforestation has especially impacted two major regions in the whole Latin America and Caribbean region: the arid and semi-arid areas, including the high Andean Plateau, and the deforested areas of humid regions. Land degradation is then especially important in the northeast Brazil, Peru and Columbia, and in almost all countries of the Caribbean and Central America. The Environment and Natural Resource Portfolio (Box 1) shows the current pattern of allocation between different problem areas. While the total portfolio declined in value from 2002 to 2003, land management increased in percentage and modestly in total investment. Page 1

5 Box 1. Latin America and the Caribbean Environment and Natural Resource Portfolio Pollution Management Environmental Health 30% 32% Water Resources Management 19% 21% Land Management 14% 18% Environmental Policy & Institutions 17% 19% Climate Change 8% 2% Biodiversity 9% 4% TOTAL $2.2 billion $1.8 billion World Bank s Forestry, Water, Rural Development and Poverty Reduction Strategies in the Region; How Do They Relate to Sustainable Land Management in the Latin America and Caribbean Region? Over the past few years, the World Bank has reviewed and updated its strategies on both a global and regional basis, by taking into account changing priorities, the recommendations of the Sustainable Development Conference (Johannesburg), and particularly the Millennium Development goals. These revised strategy statements, although still oriented to a sector approach, reflect these new priorities, and are still in the process of being integrated into loan and IDA programs. The Forest Policy emphasizes: The potential of forestry programs to reduce rural poverty with the management and sustainable use of forests. Sustainable forest management is a very important component of programs in Mexico, Central America and Brazil. The role of forests in protecting important local and global environmental parameters The possibilities of integrating forest and woodland management into sustainable rural economic development The World Bank s Environment and Natural Resource strategy includes the following goals: Improve livelihood systems through the better management of natural resources Institutional reform, especially impacting natural resource management Reduction of vulnerability to natural and environmental disasters The global water strategy emphasizes: Investment in infrastructure at all levels. A strategic tailored approach to individual countries and situations Page 2

6 In Latin America and the Caribbean, the World Bank emphasized the political economics of water reform, especially in Brazil, and the use of innovative technical and institutional models to deal with water and soil management on small watersheds. The poverty reduction strategy (2002) states: Rural investment is under-represented in World Bank lending Agriculture and the rural sector will remain important in the Latin America and the Caribbean Region The need to manage natural resources in sustainable way The FAO analysis of the regions farming systems, commissioned by the World Bank, concludes in its assessment of strategic priorities for the next 30 years. Many farming systems in LAC are experiencing increasing levels of natural resource degradation, the challenge is to achieve: sustainable management of natural resources and the reversal of resource degradation, both in established farming systems with high population densities, and in frontier areas where significant growth is anticipated improved access to, and control over, land by poorer rural populations increased capacity of farming systems, and their smaller producers, to respond adequately to globalization and market development While each of these sector strategies refers to the importance of sustainable land management, there is no coherent integrated approach to this topic. However, the approval of the new Global Environmental Operational Program (OP 15) within the Global Environment Facility provides some new opportunities and incentives to act more aggressively in this area. Potential Links Between South Asia s World Bank Strategies and Latin America and the Caribbean Regional Needs with the Global Environment Facility s Operational Program (OP 15) These strategy documents and assessments have a clear linkage with many of the provisions of OP#15. The preamble to OP#15 states that Sustainable Land Management (is) a primary focus of GEF assistance to achieve global environmental benefits within the context of sustainable development GEF Operational Program on Sustainable Land Management Operationalizes the designation of land degradation as a focal area. It provides a framework for the development of activities eligible for GEF incremental financing to address the root causes and negative impacts of land degradation on ecosystem stability, functions, and services as well as on people s livelihoods and economic well-being through sustainable land management practices. Page 3

7 The operational program expressly makes links with poverty and the global environment. Since land degradation has both poverty and global environment dimensions, sustainable solutions require packages of finance to support interventions that address both dimensions. Therefore, countries should seek to integrate sustainable land management practices into their priority national sustainable development frameworks such as national sustainable development plans, poverty reduction strategy papers (PRSPs), and comprehensive development framework (CDF). Such integration can facilitate coordinated mobilization of funding for successful implementation of costeffective and sustainable programs. Annex 1 outlines some of the major OP 15 parameters. GEF Funding Priorities GEF funding priorities include the following (Box 2): Box 2. Eligible Activities for GEF Support Mainstreaming Land Use Planning Institutions & Capacity Links with Drought Policy Setting Information Management Dissemination Transboundary On-the-ground Investments Targeted Research Mainstreaming Mainstreaming sustainable land management into national development priorities. Baseline actions would include activities related to the formulation of a national development plan(s), poverty reduction strategy paper (PRSP s), or Comprehensive Development Frameworks (CDF s). GEF incremental assistance may specifically focus on providing coordination support for the following baseline actions to facilitate the implementation of country-driven priorities. Such mainstreaming will need discussion and partnership with the front-line country ministries, Finance Agriculture and Planning, as well as involving ministries of Environment and Natural Resources. In large nations, such as Brazil and Mexico, strong participation and involvement from states will be important. Land Use Planning Page 4

8 Integration of land use planning systems. Baseline activities may include the establishment of development planning systems and the development of systems for drought preparedness and for other extreme climatic events at the national and local levels. Land use planning may be generalized at the national level, but for SLM needs, it must deal with local and regional scales to be practical and effective. Land use plans linking forest management, rain fed agriculture and irrigation cropping for example need detailed local planning and implementation. Institutions and Capacity Strengthening of participatory institutional mechanisms and capacity for integrated land use planning and implementation, including land suitability analysis, at the national and local levels and across sectors as a contribution to improving livelihoods and protecting ecosystem stability, functions, and services. Capacity building may need to be addressed at all levels and project development planned in relation to the evolution of local capacity. Capacity building also involves strong local institutional development. While in many countries in the region capacity is adequate at central levels at state and local levels capacity building becomes important. Links with Drought Incorporation of sustainable land management practices into systems developed for drought preparedness and for other extreme climatic events. Despite the general well-watered nature of the region, drought is a recurrent phenomenon in the arid and semi-arid regions of Chile, Northeast Brazil and Mexico in particular. Policy Setting Development of policies, regulations, and incentive structures such as improved land tenure systems and pricing systems to appropriately value renewable natural resources, including water, to encourage efficient and sustainable use and management. Many SLM challenges relate to policy, both formal government policy and traditional issues of property rights and differential gender responsibility. Land tenure issues are an important component in many countries. Information Management Strengthening of information management systems to support decision-making at the national and local levels on integrated land use planning and management. Page 5

9 It is particularly important that relevant information is available at state and local levels. Dissemination Dissemination and replication of good management practices, technologies, and lessons learned. This is both within country and across country borders. Information management tends to be on a sectoral basis, but effective sustainable land management information needs to be integrated and focused down to the local level. Transboundary Agreements and mechanisms for management of transboundary resources. Building on appropriate national policies (baseline actions) to develop agreements and modalities for management of transboundary natural resources through sustainable land management (GEF incremental actions). For example, countries may collaborate at the sub-regional level to protect transboundary-forestry resources on an international river basin level. They also collaborate to jointly adopt sustainable land use management programs to reduce sedimentation in shared water bodies. In South America, cross boundary cooperation on the use of ground water is also important. GEF international waters program has already initiated much ground work on surface and sub-surface international waters. On-the-ground Investments On-the-ground interventions to address land degradation would comprise packages of interventions to improve both livelihoods and economic well being of local people (baseline actions) and to preserve or restore ecosystem stability, functions, and services through sustainable land management (GEF incremental actions). Examples may include the following activities: Sustainable agriculture Sustainable rangeland/pasture management Sustainable forest and woodland management While these on-the-ground actions are possible using GEF resources on a pilot basis, the core investment for these activities will need to come from governments and major donors usually in partnerships or framework arrangements. Targeted Research GEF-supported targeted research is aimed at providing information, knowledge, and tools to improve the quality and effectiveness of GEF projects and programs. The specific Page 6

10 objectives of targeted research under OP#15 are to: (a) better understand the policy and institutional failures that drive land degradation; and (b) facilitate the refinement and adoption of innovative sustainable land management practices and technologies, including early warning and monitoring systems such as criteria and indicators for sustainable forest management, to improve and sustain the preservation/restoration of ecosystem stability, functions and services, as well as the economic well-being of individuals within varying socioeconomic conditions. Targeted research is often important in applying general principles to the specifics of local situations. Discussion of Local and Global Benefits to the Environment GEF as a global environmental organization has been mandated to fund the incremental costs of activities that bring local benefits when the additional costs will bring added global benefits. Clearly, local environmental benefits originate from sustainable land management. These include: Better ground cover and reduced soil and nutrient loss Reduced flow of sediment in streams, more retention of ground water and more even stream flows Improvement and/or retention of biodiversity and agrobiodiversity as cropping systems are maintained and improved Reduction in salinity on irrigated land Reduction in sand and dust movement locally, improving health conditions At the local level, sustainable land management can be attained via good management of soil, water nutrients and/or ground cover. SLM is good environment and natural resource management a win-win with improved production on the farm and in grazing and improved local environment management. Global Benefits, Incremental Costs and Co-Funding In OP#15 the GEF proposes to fund additional incremental costs for eligible activities for GEF support, including mainstreaming, land use planning, institutions and capacity, links with drought, policy setting, information management, dissemination, transboundary, on-the-ground investments, and targeted research where these provide global benefits. However, OP#15 also states that in practice the incremental cost accounting may be achieved through co-financing of projects, where the GEF co-financing may result in long-term sustainable improvement in the environment. Given the newness of OP#15, it is not clear how this will be implemented in practice. Incremental global benefits can readily be identified in a number of cases where investments in sustainable land management are needed. Sustainable land management that reduces forest depletion and increases biomass will have an impact on carbon sequestration and hence on global Page 7

11 climate. Watershed management in transboundary watersheds will reduce sedimentation downstream and provide global benefits, while reduction in sediment flow to the Caribbean and Central American waters will reduce the current impact of such flows on coral reef growth. In summary, Global benefits from sustainable land management projects in Latin America and the Caribbean include: Improvement in carbon sequestration in humid and semi-arid areas Amelioration of the loss of coral reef biodiversity Reduction in transboundary transfer of sediments and nutrients both across national borders and into vulnerable shore and ocean habitats Better international management of land and water Reduction in atmospheric pollution Maintainance of biodiversity and agro biodiversity It is clear that there are many possibilities of linkage between regional sustainable land management needs and GEF OP 15 objectives. Alternatively, there appear to be emerging opportunities to develop a framework approach in which GEF in partnership with the country, the WB and other donors, develop the needed comprehensive approach to SLM in a region, with GEF providing co-financing for capacity building and its other areas of interest. Given this range of options and the synergies between the rural, water, forest and poverty reduction strategies of the bank and the GEF OP#15, there should be numerous opportunities to work cooperatively on a number of sustainably productive, environmentally enhancing, set of projects. However, it is clear from the magnitude of the issues involved in achieving SLM that the GEF role will be that of a catalyzer and sometimes initiator. The core part of the activity will necessarily come from the country and multiple partner donor support. Possible World Bank Approaches/Strategies for Integrating and Achieving Sustainable Land Management Objectives within the World Bank s Programmatic Lending Program Given the World Banks support and commitment to the Millennium goals and given the emphasis on rural poverty in the regions, and the dependence of rural people on the natural resource base, it follows that a rational approach for the World Bank is to increase the focus on sustainable land management in the region. While each of the sector approaches addresses sustainable land management to some degree, these approaches have not yet been incorporated into a comprehensive approach. A review of the PRSP s, CAS s and other documents for the region provide some insights into the World Bank s current approach to sustainable land management in Latin America and the Caribbean. PRSP s have been completed for Honduras, Nicaragua, Bolivia, Peru and Guyana. With each demonstrating an awareness of environmental issues and Bojo (2003) ranks the first three Page 8

12 countries quite highly on this awareness. However, there is a lack of integration into nearly all country appraisals. Bolivia has developed a comprehensive PRSP, but it requires 131 pages before the issue of land degradation is raised in a somewhat dramatic way by stating: Forty-one percent of the surface area is under the process of desertification and Poverty, economic activity and environment are closely connected. However, this is the first time the issue is raised and the theme is not really integrated nor addressed inthe further analysis and response. The PRSP for Honduras points out that forest resources are being depleted at a rate of 80,000 hectares a year and provides an impressive regional breakdown and analysis of poverty issues and problems. As expected, rural poverty and environmental deterioration are closely linked in Honduras. The response strategy directs attention to poorer regions and to their environmental vulnerability. Risk management in relation to disasters is also a strong component. In Nicaragua, environmental vulnerability is one of three crosscutting themes and is a significant part of the five-year plan. Again, poverty is analyzed in detail by region and urban areawith rural poverty and environmental vulnerability being closely linked. A strong environmental education program is part of the planned response and emphasis is given to an integrated and community-oriented approach toward resolution. Sustainable land and resource management is a high priority in this context. The Peruvian CAS (2002) also documents a renewed focus on environmental issues, especially those linked to or impacting health, the sustainable use of natural resources as well as improved management of biodiversity. There is already a comprehensive GEF investment strategy including participatory management of protected areas. The World Bank lending program includes the Sierra Rural Development project and Agricultural Research and Extension support with possible future links to sustainable land management. Within the analytical and planning documents from these and other countries, there appears to be a strong potential base from which to develop an expanded sustainable land management portfolio. Project Experience in Sustainable Land Management in Latin America and the Caribbean Fortunately, there is already a substantial base of sustainable land management projects executed or underway in the region (Box 3). Page 9

13 Box 3 SLM in LAC Key Projects Project ID P Project Rural Poverty Alleviation & Natural Resource Management Project Country Approval Date Closing Date Lending Project Cost Brazil Jun Sep P Land Management (01) Parana Brazil Jan Mar P Land Management (02) Brazil Jan Jun P Eastern Lowlands Natural Resource Management and Agricultural Production Project Bolivia Mar Dec P Regional Integrated Silvo-Pastoral Approaches to Ecosystem Management Project Latin America P Sustainable Fisheries Management Project Argentina P Conservation and Sustainable use of the Mesoamerican Barrier Reef System Project (GEF) Central America May 2 02 Jan Sep May Jun Jun P Sierra Nevada Sustainable Development Project Colombia May 2 00 Dec P Community Forestry (02) Project Mexico Dec 9 03 Jun P Sustainable Forestry Investment Promotion Project Nicaragua Jan 7 99 Jun The range of topics is considerable, ranging from sustainable fisheries in Argentina, the Sierra Nevada Sustainable Development Project in Columbia and forestry projects in Mexico and Nicaragua. There is also an important Global Environmental Facility project on the Mesoamerican Barrier reef system. However, it is the land management projects in Brazil that have gained the most positive evaluations and which have provided some critical guidelines (Box 4). Page 10

14 Box 4. BRAZIL STA. CATARINA NATURAL RESOURCE MANAGEMENT AND RURAL POVERTY REDUCTION PROJECT (Approved FY02 Rural Loan: $62.8 million The Sta. Catarina Natural Resource Management and Rural Poverty Reduction Project aims to link rural poverty reduction with sustainable natural resource management. The project employs lessons learned from other Bank projects, such as the Brazil Land Management II project, which emphasize stakeholder participation to facilitate the introduction of more sustainable land use practices and efficient management of project resources. To achieve stakeholder involvement, the Sta. Catarina project employs a number of participatory tools such as: participatory monitoring and evaluation, municipal and micro-catchment participatory diagnostics (participatory rapid appraisal), demand-driven technical training courses, environmental education and a rural investment fund. These tools aim to facilitate the development of participatory management plans and the effective utilization of investment opportunities. To enhance the successful integration of stakeholders the Sta. Catarina project includes provisions for training, extension and awareness building. In addition, the projects ensure the participation of marginalized stakeholders through careful beneficiary targeting and are Indigenous People s Strategy. This project also addresses management plans at a micro-watershed level to help: Develop stronger social cohesion Work on capacity building and awareness in specific communities It has been rated as highly satisfactory by OED. The Latin America and the Caribbean Regional Integrated Silvo- Pastoral GEF project provides some good lessons based on incentive project contracts with farms. The Nicaraguan Land Administration project includes a participatory indigenous development strategy, which seems to be working well and the Sao Paulo Land Management project is also providing some productive lessons learned. Finally, the Colombian Productive Park Support project is piloting a demanddriven Production Partnership program between rural communities and the private sector. In this considerable portfolio, there is a strong basis for an expanded sustainable land management approach in these regions. Opportunities and Challenges to the World Bank in Supporting OP 15 Objectives of Sustainable Land Management in Latin America and the Caribbean Opportunities for the World Bank include the following: Page 11

15 By focusing on SLM approaches in partnership with GEF and host countries, the World Bank will be directly addressing MDG s as well as dealing with pervasive environmental degradation problems. As outlined above, there is a good basis of project experience, especially in Brazil, which can be further expanded upon within that country and elsewhere in the region OP 15 allows for incremental funding, which provides for grant money attached to World Bank loans to produce additional product/benefits A focus on SLM will help country partners to address a number of policy issues, which have often negatively influenced rural areas. The PRSP process has directed country attention to rural poverty. Sustainable land management is one way to address rural poverty directly and for the long run. This is especially the case in the Caribbean and Central America GEF support for information sharing and transfer of lessons learned, if harnessed appropriately can contribute to project effectiveness region wide Challenges SLM management addresses a complex set of problems, and successful projects are often long-term and need a sustained involvement by the World Bank and country partners alike. Political commitment to policy change and decentralization is an important prerequisite in many cases Cross-sectoral cooperation is needed within the applicable country and in the World Bank. This needs to be encouraged at senior levels and rewarded at the operational level While there is abundant local expertise, the World Bank may not have enough experienced resources in this area to meet the region s widespread needs. Therefore, a successful SLM initiative will need to be developed in strong partnerships with the host countries, with other agencies and with NGO s Successful SLM needs a combination of actions at national and local levels and different actors may be more effective at one or more of these levels. To be most effective, a diverse group ranging from World Bank staff, NGO s, local community leaders to participant farmers will need to have distinctive roles. The Parana watershed project in Brazil and the Regional Integrated Silvo-Pastoral Ecosystem Management projects provide good examples of ways to meet this challenge SLM activities will need to be tailored to meet the particular local and national situations so project development will need special attention. An important component of GEF support is the Block B resource, which allows strong participation of host countries and communities in project preparation.) Page 12

16 Private Sector Involvement: Potential Private Sector Initiatives in Sustainable Land Management in the Latin America and the Caribbean Region There has been a substantial level of private sector involvement in sustainable land management in the Latin America and the Caribbean region and there is potential for a further expansion of this investment at several different scales. No SLM project in the LAC region should be designed without a substantial private sector involvement including and especially SME s.. In Mexico the WB has supported the development of community forestry primarily by making private sector technical assistance available to indigenous communities that own valuable forest land In Brazil and in Argentina there are strong private sector initiatives in agriculture some involving global companies. Private-Public sector partnerships in sustainable land management are feasible approaches towards maximizing loan investment in these and other countries. In Mexico the 2004 CAS includes a component to more fully integrate SME s and the rural sector into the global economy through a Rural Saving and Credit (2) program in FY 04 and supporting access to Financial Services Program in FY 07. In the highly productive biosystems of the region, there is experience and greater potential for carbon credit investments in sustainable land management. Already there are a number of working, efficient conservation trust funds in the region with additional potential for ecotourism development Combined private sector production and sustainable land management partnerships are possible on a state or regional basis Incentives for direct private sector involvement in sustainable land management can include export and marketing priorities The following SME activities can be associated with sustainable land management projects: Project loans for water control technologies marketing infrastructure and land reclamation activities Micro loans to build local enterprises linked to sustainable land management, forestry products, shrimp processing, etc. Private sector investment in land, water quality and waste disposal technologies as well as marketing and infrastructure development Page 13

17 Summary There is now an opportunity through OP #15 to address the focus on SLM in a people oriented approach to poverty reduction and SLM Implementing a combination of the findings of the World Bank s Water, Forestry and Poverty Strategies with a coordinated SLM approach linking World Bank and GEF funding is now timely It is important that the SLM approach be more centrally incorporated in PRSP s and be a component of CAS documents and projects Expertise on rural development and SLM should be included in the PRSP and CAS process Consistent with the Millennium Development Goals, a new level of investment to alleviate rural poverty through a focus on sustainable land management, complementary rural market initiatives and sound policy adjustments is appropriate In the Latin America and the Caribbean region there is high potential for the involvement of the private sector in SLM, in agriculture, in forestry and in aquaculture. Page 14

18 Annex 1. Major OP 15 Parameters Emphasizes the need for integration: NEW GEF OP 15 ON SUSTAINABLE LAND MANAGEMENT Many land degradation prevention and control programs were largely based on a sector-by-sector approach and this had the unintended effect of fragmenting policies, institutions, and on-the-ground measures. Successful land degradation prevention and control, therefore, require scientifically sound and cross-sectoral approaches to land management that integrate the ecological, economic, and social dimensions of land degradation issues in program design. Defines the necessary conditions: Development and implementation of programs and projects to address land degradation are most successful when effective participation of stakeholders, including women, occurs at all stages. An appropriate enabling environment, including policies, regulations, and economic incentives to support sustainable land management is necessary for effective local, national, and international response. Capacity building at the community and national levels is necessary for the successful implementation of on-the-ground activities. On-the-ground activities most effectively facilitate innovation, demonstration, and replication of good sustainable land management practices, including indigenous management systems. And identifies an overall goal of working in partnership with country and other partners: The overall operational goal of the GEF focal area on land degradation (i.e. desertification and deforestation) is to catalyze partnerships with other organizations working on land management issues, land users, and other stakeholders at the local, national, regional, and global levels to provide coordinated financial and technical support to address land degradation in a way that achieves long-term global environment benefits within the context of sustainable development Potentials for GEF support is identified in the following sections: Programs and projects to address land degradation would comprise packages of interventions to address both livelihoods and economic well-being (baseline actions) and global environment (incremental actions) issues. GEF assistance would focus on funding the agreed incremental costs of accelerating country-driven actions on sustainable land management, including sustainable forest management, to achieve global environment benefits within the context of sustainable development. The GEF would specifically provide catalytic or incremental funding for the implementation of activities, complementary to development and poverty alleviation related activities, aimed at helping countries to alter or adapt existing or planned land use practices to ensure the preservation, conservation or restoration of stability, functions, and services. To a large extent, incremental GEF funding for sustainable land management activities will be based operationally on cost sharing (see the Section VII for examples of baseline and incremental actions). Page 15

19 Annex 2. Some Priority Project Types for Latin America and the Caribbean NEW GEF OP 15 ON SUSTAINABLE LAND MANAGEMENT PROJECT IMPORTANT COMPONENTS EXAMPLES LINKS WITH OP 15 Both in the Caribbean & in Latin America SLM needs to be Developed with an Integrated Approach to Land Use & Land Management Including: Community Based Watershed Management Including Watershed Protection, Increased agricultural Productivity & Improved Water Management Hilltop & Hillsope Protection with Forestry or Agro-forestry Including Sustainable Production of Products Downslope Management of Water to Reduce Flooding & Allow Dry Season Irrigation & Field Watering (Aquaculture in some cases) Improved Varieties of Agricultural Crops. Parana Watershed Project Brazil Watershed & Environment Management Project St. Lucia Irrigated Land & Watershed Management Project Dominican Republic Land Use Planning Carbon Sequestration Capacity Building Information Dissemination Policy Setting Modest Support Loans for SME s Capacity Building Institutional Strengthening Land Use Management Community Based Sustainable Forest Management Sustainable Management of Forest Products Marketing Support Targeted Research on Sustainability Technical Support from SME Development of New Income Sources Biodiversity Resource Development Costa Rica Community Forestry II - Mexico Policy Change Land Use Planning Carbon Sequestration Information Exchange Targeted Research Land Tenure Rationalization Page 16

20 Annex 2. Some Priority Project Types for Latin America and the Caribbean - (continued) PROJECT IMPORTANT COMPONENTS EXAMPLES LINKS WITH OP 15 Dryland Rehabilitation & Sustainable Land & Water Management for Crops & Livestock Water Retention & Management Land Tenure Rationalization Agriculture Research Land Use Planning including Small Scale Irrigation Crop & Livestock Marketing Support Alternative Livelihood Generation Community Participation SME Water Management & Marketing Ceara Integrated Water Resource Management Project Brazil Ceara Rural Poverty Reduction Project Brazil Secano Rural Poverty Alleviation & NRM Project Chile Rural Development in Marginal Areas Project - Mexico Drought Planning Land Use Planning Policy Change Information Exchange Targeted Research Sustainable Land Management Based on Community Involvement in Soil & Water Conservation Slope Revegetation Local Watershed Mangement Soil Conservation Technologies New Crop Types Marketing Support Parana State Soil & Water Conservation Brazil Santa Catarina Natural Resource Management & Poverty Reduction Project Brazil Land Use Planning Policy Change Information Management Dissemination Land use Management Water Quality Improvement Agricultural Research & Extension - Peru Page 17

21 Annex 2. Some Priority Project Types for Latin America and the Caribbean - (continued) PROJECT IMPORTANT COMPONENTS EXAMPLES LINKS WITH OP 15 Land Use Planning to Alleviate Natural Disasters & Reduce Rural Poverty Land Use Assessment to Determine Vulnerable Areas Slope Revegetation with Sustainable Forestry and/or Agro-forestry Small Basin Water Management Capacity Building Marketing Support through SME s Information Exchange Natural Disaster Management Project Mexico Natural Disaster Vulnerability Reduction Project - Nicaragua Natural Disaster Mitigation Land Use Planning Policy Change Carbon Sequestration More Regular Stream Flow & Reduced Landslides & Sediment Loss Training Identification of Opportunities for Private/Public Partnerships in Individual Countries. Private Sector Support for SLM in Latin America and the Caribbean Loans for Private Sector Support of Community Based Small Farms. Farmer Management Training Marketing Links with Commercial Sector Cooperative Formation Mexico Regional Private Sector Development Policy Change Information Exchange Land Use Planning Institution & Capacity Building Private Sector Infrastructure Support for SLM Micro Financing Support Page 18

22 References Bojo, J., R. and C. Reddy Status and Evolution of Environmental Priorities in the Poverty Reduction Strategies. World Bank. Nov Paper 93. Env. Econ. Series. Dixon, J., A. Gulliver and D. Gibbon. Global Farming Systems Study: Challenges and Priorities to 2030 Synthesis and Global Overview. FAO (2001). FAO. Rome Prevention of Land Degradation, Enhancement of Carbon Sequestration and Conservation of Biodiversity through Land Use Change and Sustainable Land Management with a Focus on Latin America and the Caribbean. Proceedings of the IFAD/FAO Expert Consultation. IFAD. Rome, Italy. 15 April Gulliver, A., J.C. de Grandi, C. Spehar and G. Majella. Global Farming Systems Study: Challenges and Priorities to Regional Analysis Latin America and the Caribbean. FAO (2001). International Monetary Fund and World Bank (IDA). Honduras - Poverty Reduction Strategy Paper. Joint Staff Assessment Washington DC (September 17, 2001). International Monetary Fund and World Bank (IDA). Nicaragua: A Strengthened Growth and Poverty Reduction Strategy. Washington DC (July 2001). International Monetary Fund and World Bank (IDA). Nicaragua - Poverty Reduction Strategy Paper Annual Progress Report. Joint Staff Assessment Washington DC (November 19, 2002). International Monetary Fund and World Bank (IDA). Nicaragua - Poverty Reduction Strategy Paper. Joint Staff Assessment Washington DC (August 27, 2001). International Monetary Fund and World Bank (IDA). Poverty Reduction Strategy Papers Detailed Analysis of Progress in Implementation. Washington DC (September 15, 2003). International Monetary Fund and World Bank (IDA). Review of the Poverty Reduction Strategy Paper (PRSP) Approach: Main Findings. Washington DC (March 15, 2002). Okidegbe, N. Rural Poverty Trends and Measurement. Rural Development Strategy Background Paper #3. The World Bank. Washington DC (2001). Oygard, R., T. Vedeld and J. Aune. Good Practices in Drylands Management. The World Bank. Washington, DC (1999). Pieri, C., G. Evers, J. Landers, P. O'Connell and E. Terry. No-Till Farming for Sustainable Rural Development. June World Bank. Country Assistance Strategy of The World Bank Group for The Eastern Caribbean Sub-Region. Washington DC (June 4, 2001). Page 19

23 World Bank. Country Assistance Strategy of The World Bank Group for The Republic of Honduras. Washington DC (January 27, 2000). World Bank. Honduras - Poverty Reduction Strategy Paper. Washington DC (August 2001). World Bank. Making Sustainable Commitments. An Environment Strategy for the World Bank. Washington DC. (2001). World Bank. Reaching the Rural Poor. A Renewed Strategy for Rural Development A Summary. Washington DC (2002). World Bank. Reaching the Rural Poor. A Rural Development Strategy for the Latin America and Caribbean Region. Washington DC. (July 2002). World Bank. Republic of Bolivia - Poverty Reduction Strategy Paper. Washington DC (March 2001). World Bank. Sustaining Forests. A World Bank Strategy. Washington DC (2002). World Bank. The World Bank Forest Strategy. Striking the Right Balance. Washington DC (2000). World Bank. The World Bank in Action. Stories of Development. Washington DC (2003). World Bank. Water Resources Management: A World Bank Policy Paper. Washington DC (1993). World Bank. Water Resources Sector Strategy. Strategic Directions for World Bank Engagement. Washington DC (February 2003). World Bank. World Development Report 2004: Making Services Work for Poor People. Washington, DC (2003). World Bank Project Database (Projects and Programs ) Page 20