Delivering Sustainable Solutions : engaging with Governments and Aid Agencies. WWF annual conference 2004 NGO and Donors A key partnership for sustainable development

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Delivering Sustainable Solutions engaging with
Governments and Aid Agencies.WWF annual
conference 2004NGO and DonorsA key partnership
for sustainable development

• Pierre Jacquet
• Executive Director for Strategy Chief Economist
  
• French Development Agency (AFD)

Antananarivo. 6-8-2004
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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

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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)

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Who are we (2/3)
TOTAL INVESTMENT (2002) 1 652 M PROJECT
FINANCING IN FOREIGN COUNTRIES 777 M
OTHERS (Education, industries etc.)
RURAL DEVELOPMENT AND ENVIRONMENT
URBAN EQUIPMT
70,3
120,3
116,6
FINANCIAL SECTOR
235,6
113
92,7
TRANSPORT
ENERGY
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Who are we (3/3)

• A major reform of AFD undertaken in 2002
• A small, bilateral institution --gt 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

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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

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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

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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

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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

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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

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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

gtfrom a poverty-growth-inequality triangle to a
SD quadrangle involving NRM
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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

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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 ...)

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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

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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

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Cost/Benefit Analysis
Source WB-AFD Carret-Loyer
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Damage costs from Land DegradationSource Cost
of Environmental Degradation. WB Maria Sarraf
Annual damage costs from land degradation as of
GDP
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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

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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

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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?

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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

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Thank you
Pierre Jacquet Director for Strategy Chief
Economist Agence Française de Développement AFD
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The French Global Environment Fund (FFEM)

• 106 projects, total amount of 116 M
• 17 M annual investment