DPG Environment and Natural Resources Presentation to DPG meeting 76

1
DPG Environment and Natural Resources
Presentation to DPG meeting 7/6

• Overview of presentation
• Background for presentation
• Nature of Natural Resources sectors
• Important issues in Natural Resources sectors
• Lost opportunities for poverty reduction, growth
  and revenue generation
• Analysis and underlying causes for current
  situation
• Action already taken
• Solutions
• Recommendations to DPG
• Discussion today

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Background (1)

• DPG-E Terms of Reference
• Not new ToR, from when DPG DAC, but still
  relevant
• To increase the effectiveness of DPs efforts to
  support a concerted environment and Natural
  Resources agenda and provide coordinated
  contributions and inputs
• Reference to (still existing) Informal Discussion
  Group on Environment (IDGE) with wide range of
  stakeholders e.g. NGOs, researchers etc.
• New members contact merped_at_um.dk

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Background (2)

• Retreat held in DPG-E in January 2005
• Objective
• To take stock of current situation in the sector
• Identify opportunities for further harmonisation
  alignment in support to Governments MKUKUTA
  and new Environmental Management Act
• Result
• Common features identified, such as wide gap
  between policies and planning and action on
  ground, unhealthy links between unsustainable
  private sector and parts of government and the
  need to empower communities and civil society
• Briefly presented for DPG in March, and agreement
  on more comprehensive presentation of issues in
  Forestry, Fisheries Wildlife today
• NB! Draft briefs - compromises, snapshots,
  comments welcome
• NB! Data scarce and estimates prevailing

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Nature of Natural Resources Sectors

• State assets, common property, user rights and
  ownership
• Extraction and utilisation versus conservation
  sustainable balance
• Management tools (or mainly for revenue
  collection?) Licenses, concessions, trophy fees
  etc.
• Retention partly financing government
  institutions and/or semi public institutions

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Issues in the Natural Resources Sectors (1)

• Contributions from Natural Resources to
  Tanzania's development important, but
  unacknowledged
• Livelihoods - food, employment, income e.g.
  wildlife most important protein to 2/3 of
  Tanzanians
• Foreign exchange e.g. forestry 10 and fisheries
  12
• Revenue collection e.g. fisheries 9,7 billion Tsh
  in 2004, tourism revenue rates, based primarily
  on wildlife, app. 30 growth rate annually
• Tanzanias economy natural resource based Top
  3 growth and export sectors are Mining, Tourism
  and Fisheries importance for livelihoods
  (subsistense)

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Issues in the Natural Resources Sectors (2)

• Potential contributions larger, if resources were
  managed building on principles of good governance
  
• Policy and legal framework largely in place,
  except for fisheries, but not implemented
• Irregularities and sub-optimal management
  prevail
• log scam, de facto investor hostile
  environment, delay in establishment of WMAs,
  inadequate regulation of fisheries/no quotas in
  fisheries

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Lost opportunities for poverty reduction, growth
and revenue generation (1)

• Poverty - poor communities depending on
• Own consumption e.g. firewood for cooking, fish
  and bush meat for protein intake etc.
• Income from sale of processed/un-processed
  resources, e.g. honey, dried fish, charcoal etc.
• Employment (and income) in resource utilisation,
  e.g. jobs in tourism, fish industry etc.
• BUT
• Development not pro-poor, e.g. not sufficient
  number of jobs created in Tanzania, benefits not
  always shared
• Provision exist for community-based management in
  legal frameworks, but not implemented, or too
  costly

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Lost opportunities for poverty reduction, growth
and revenue generation (2)

• Growth
• Knowledge about abundance and exploitation
  limited sustainable growth difficult to predict
• BUT POTENTIAL EXIST
• Transforming poorly managed state owned forest
  plantation (135-230,000 ha) into private
  enterprises
• Growth in Marine fisheries, but probably not in
  Lake Victoria
• Wildlife (game viewing) tourism expansion in
  south, but not north
• NB! Natural Resources can limit growth in other
  sectors, e.g. forest produce energy and 95 of
  energy supplied by forests

9
Lost opportunities for poverty reduction, growth
and revenue generation (3)

• Revenue Generation
• Limited information about value of resources,
  lack of transparency and corrupt practices - loss
  of revenue e.g. annual license for foreign
  fisheries vessel equals earnings from 1 day
  catch!
• Revenue collection not used as a management tool
  to guide/direct resource exploitation to specific
  resources/species and geographical areas, to
  ensure sustainability and no erosion of wealth
  base

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Analysis and underlying causes

• Lack of knowledge about resources and utilisation
• Lack of full understanding about legal framework
• Lack of capacity and willingness to implement
• (not same for individual sectors)
• Creation of a poor governance environment
• Unhealthy links between unscrupulous private
  sector and parts of government
• Log scam leading to suspensions but no charges
• Hunting concessions awarded by few government
  officials without transparency
• Illegal ivory trade

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Action already taken

• MKUKUTA acknowledge natural resources new act
  emphasise importance of environment
• DPs support strengthening and capacity building
  for implementation of existing legal framework
  (incl. support a common regulatory framework for
  fisheries in mainland and Zanzibar), address
  specific cases of irregularities
• DPs committed to harmonisation, and broad sector
  perspective including private sector and civil
  society (e.g. forestry SWAp initiated)
• Harmonisation a challenge for government, but
  relatively new Environmental Working Group is
  step in right direction

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Solutions

• Implementation of existing legal framework,
  besides adjustments of it (e.g. fisheries
  regulation, and ammendments to Forest Act)
• This will create correct incentives for
  sustainable management for the benefit of
  Tanzania
• Healthy private sector involvement e.g.
  removing de facto hostile investor barriers and
  creating effective market based competition
• Securing rights to resources of communities, and
  strengthen their capacity for management
• Government officers willing and able to implement
  legal framework

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Recommendations to DPG

• Recommendations in line with existing
  international commitments of DPs, e.g. MDG
• Raise awareness on importance of natural
  resources for sustainable development of Tanzania
• Promote good governance in natural resources
  sectors to address sub-optimal management
• Continue support to natural resources sectors,
  and encourage matching Government investments in
  the sectors
• Continue progress in harmonisation and allignment
  in the natural resources sectors

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Discussion today

• How can we best assist government in improving
  the management of its national assets, the
  natural resources?