Forests Sourcebook - HCV Resource Network

Forests Sourcebook - HCV Resource Network Forests Sourcebook - HCV Resource Network

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Box 6.4 Use of the Rapid CEA Approach in Bosnia and Herzegovina A World Bank workshop on CEA and SEA in January 2005 recognized that a rapid form of CEA should be examined as one option for meeting the new provisions of Operational Policy 8.60 in Bosnia and Herzegovina. The core of the rapid CEA (RCEA) would be (i) prioritization of policies and sectors to be supported by the Programmatic Development Policy Credits regarding environmental implications and risks; (ii) an assessment of state, government entity, and local capabilities to mitigate negative effects; (iii) recommendations to fill key gaps; and (iv) a small set of recommended key indicators to track progress. The RCEA would be carried out in parallel with the final stages of fiscal 2005 Programmatic Policy Structural Adjustment Credit preparation, and would be amenable to updating as needed in subsequent fiscal years. Background information: According to the National Environmental Action Plan, freshwater and air quality in rural areas are in fairly good condition, but because wastewater management, waste disposal, and industrial controls are generally below international norms, environmental risks are increasing. Bosnia and Herzegovina’s goal of meeting the requirements of the environmental acquis communautaire of the European Union means that considerable investment in both the technology for pollution control and institutions for monitoring and compliance will be required. The United Nations Economic Commission for Europe (UNECE) performed an Environmental Performance Review for Bosnia and Herzegovina (UNECE 2004), which outlined deficiencies and needs for improvements in the policy, legal, and institutional framework; public participation and access to information; water resources management (including drinking water quality); land use; agriculture and biodiversity; management of waste sites; and environmental aspects of tourism and energy development. The RCEA will first “look back” to frame how past adjustment operations examined environmental implications. It will then “look forward” by building on the National Environment Action Plan, the Environmental Performance Review, and other studies to quickly identify which policies and sectors supported by the Programmatic Development Policy Credits pose the more significant risks to the environment, forests, and natural resources. New data will be collected by Bank staff and consultants on specific privatizations, new government permit programs, and the like. Source: World Bank 2005. ment Policy Reforms. This will provide an initial “watch list” of countries for which further exploration of the potential impacts of programmatic lending on forests is necessary. This list should be updated using information and methodologies outlined in note 6.4, Assessing Cross- Sectoral Impacts, as these become available; for example, better information on the numbers of poor people living in or near forests, and their level of dependency on those forests, will be highly relevant. 2. As countries and situations are identified as being of interest in this regard, country teams and managers, in cooperation with the Sustainable Development Network and the Development Research Group, should examine the scheduling and content of forthcoming Country Assistance Strategy (CAS), CEA, and SEA activities to determine whether these can and should be rationalized to allow focused forest impact analysis to be carried out under their auspices. 3. Even if this adaptation of policy instruments is not immediately possible, in countries and situations identified in step 1, DPL task managers should work with the networks on an initial assessment of whether the specific macroeconomic or broad cross-sectoral reforms intended under the DPL are likely to have flow-through impacts on forests, and, if so, the likely scale and nature of these impacts. Initially, it may be necessary to use qualitative and approximation approaches, as discussed in note 6.2, Prospects for Using Policy Lending to Proactively Enable Forest Sector Reforms, until more precise means of estimating impacts are available. NOTES 1. Environment includes policies on environmental protection, soil conservation, water resources management, nature and landscape protection, and protected areas and national parks 2. The line between these two broad groups of impact sources can sometimes blur in project cases, creating the phenomenon labeled “Dutch Disease,” in which exploitation 210 CHAPTER 6: MAINSTREAMING FORESTS INTO DEVELOPMENT POLICY AND PLANNING

of or reforms in one sector provides the government with “easy money” and causes the government to lose control of fiscal expenditure. Elements of the safeguard and analytical approaches for World Bank investment lending projects may apply to aspects of these cases. These situations, however, will also have large secondary and tertiary impacts throughout the economy that parallel those associated with macroeconomic policy reforms. 3. Local Agenda 21 is a local-government-led, communitywide, and participatory effort to establish a comprehensive action strategy for environmental protection, economic prosperity and community well-being in the local jurisdiction or area. This requires the integration of planning and action across economic, social, and environmental spheres. Key elements are full community participation, assessment of current conditions, target setting for achieving specific goals, monitoring, and reporting. Source: http://www.gdrc .org/uem/la21/la21.html. SELECTED READINGS Schmithüsen, F., K. Bisang, and W. Zimmermann. 2001. “Cross-Sector Linkages in Forestry: Review of Available Information and Consideration on Future Research.” Forest Policy and Forest Economics, Department of Forest Sciences—ETH, Zurich. http://www.fao.org/docrep/ 003/AA002E/Aa002e03.htm#6018. World Bank. 2004. “Good Practice Note on Environmental and Natural Resource Aspects of Development Policy Lending.” World Bank, Washington, DC. ———. 2005a. “Azerbaijan: Issues and Options Associated with Energy Sector Reform.” Report No. 32371-AZ, World Bank, Washington, DC. ———. 2005b. “Development Policy Lending and Forest Outcomes: Influences, Interactions, and Due Diligence.” Report No. 32724-GLB, Agriculture and Rural Development Department, World Bank, Washington, DC. REFERENCES CITED Angelsen, A., and D. Kaimowitz. 1999. “Rethinking the Causes of Deforestation: Lessons from Economic Models.” World Bank Research Observer 14(1): 73–98. Bray, D. B., L. Merino-Perez, and D. Barry, eds. 2005. The Community Forests of Mexico: Managing for Sustainable Landscapes. Austin, TX: University of Texas Press. Douglas, J., and D. Chandrasekharan Behr. 2006. “Note #1: Prioritizing Where Cross Sector Impacts Matter.” Note submitted to World Bank as input to Forests Sourcebook. Unpublished. World Bank. Washington, DC. Gueorguieva, A., and K. Bolt. 2003. “A CriticalReview of the Literature on Structural Adjustment and the Environment.” Environment Department Papers No. 90. World Bank, Washington, DC. Humphreys, D. 1996. “The Global Politics of Forest Conservation Since the UNCED.” Environmental Politics 5(2): 231–57 Kaimowitz, D., C. Vallejos, P. Pacheco and R. Lopez. 1998. “Municipal Governments and Forest Management in Lowland Bolivia.” Journal of Environment and Development 7(1). Lampietti, J. 2004. “Power’s Promise: Electricity Reforms in Eastern Europe and Central Asia.” Working Paper No. 40. World Bank, Washington, DC. Mani, M. 2004. “An Overview of Environmental and Natural Resource Aspects of IBRD Financed Development Policy Lending Operations in FY05.” ENV-ESSD, internal note. World Bank, Washington, DC. Munasinghe, M. 2001. “Special Topic I: Structural Adjustment Policies and the Environment.” Environment and Development Economics 4(1): 9–18. OPCS (Operations Policy and Country Services). 2004. “Good Practice Notes Relating to the Development Policy Lending OP/BP 8.60: Environmental and Natural Resource Aspects.” World Bank, Washington, DC. Pandey, K., and D. Wheeler. 2001. “Structural Adjustment and Forest Resources: The Impact of World Bank Operations.” Policy Research Working Paper 2584. World Bank, Washington, DC. Sedjo, R. A. 2005. “Macroeconomics and Forest Sustainability in the Developing World: Resources for the Future.” Discussion Paper DP 05-47. World Bank, Washington, DC. Sunderlin, W.D., O. Ndoye, H. Bikié, N. Laporte, B. Mertens, and J. Pokam. 2000. “Economic Crisis, Small- Scale Agriculture, and Forest Cover Change in Southern Cameroon.” Environmental Conservation 27(3): 284–90. UN-CSD (United Nations Commission on Sustainable Development). 1997. Report of the Ad Hoc Intergovernmental Panel on Forests. E/CN.17/1997/12. United Nations, New York. UNECE (Economic Commission for Europe) 2004. Environmental Performance Reviews, Bosnia and Herzegovina. New York and Geneva: United Nations. http://www.unece. org/env/epr/epr_studies/bosnia_and_herzegovina.pdf World Bank. 2004a. Sustaining Forests: A Development Strategy. Washington, DC: World Bank. ———. 2004b. “Azerbaijan Raising Rates: Short-Term Implications of Residential Electricity Tariff Rebalancing.” Report No. 30749-AZ. Europe and Central Asia Region. Environmentally and Socially Sustainable Development. World Bank, Washington DC. CHAPTER 6: MAINSTREAMING FORESTS INTO DEVELOPMENT POLICY AND PLANNING 211

of or reforms in one sector provides the government with<br />

“easy money” and causes the government to lose control of<br />

fiscal expenditure. Elements of the safeguard and analytical<br />

approaches for World Bank investment lending projects<br />

may apply to aspects of these cases. These situations, however,<br />

will also have large secondary and tertiary impacts<br />

throughout the economy that parallel those associated with<br />

macroeconomic policy reforms.<br />

3. Local Agenda 21 is a local-government-led, communitywide,<br />

and participatory effort to establish a comprehensive<br />

action strategy for environmental protection, economic<br />

prosperity and community well-being in the local jurisdiction<br />

or area. This requires the integration of planning and<br />

action across economic, social, and environmental spheres.<br />

Key elements are full community participation, assessment<br />

of current conditions, target setting for achieving specific<br />

goals, monitoring, and reporting. Source: http://www.gdrc<br />

.org/uem/la21/la21.html.<br />

SELECTED READINGS<br />

Schmithüsen, F., K. Bisang, and W. Zimmermann. 2001.<br />

“Cross-Sector Linkages in Forestry: Review of Available<br />

Information and Consideration on Future Research.”<br />

Forest Policy and Forest Economics, Department of Forest<br />

Sciences—ETH, Zurich. http://www.fao.org/docrep/<br />

003/AA002E/Aa002e03.htm#6018.<br />

World Bank. 2004. “Good Practice Note on Environmental<br />

and Natural <strong>Resource</strong> Aspects of Development Policy<br />

Lending.” World Bank, Washington, DC.<br />

———. 2005a. “Azerbaijan: Issues and Options Associated<br />

with Energy Sector Reform.” Report No. 32371-AZ,<br />

World Bank, Washington, DC.<br />

———. 2005b. “Development Policy Lending and Forest<br />

Outcomes: Influences, Interactions, and Due Diligence.”<br />

Report No. 32724-GLB, Agriculture and Rural Development<br />

Department, World Bank, Washington, DC.<br />

REFERENCES CITED<br />

Angelsen, A., and D. Kaimowitz. 1999. “Rethinking the<br />

Causes of Deforestation: Lessons from Economic Models.”<br />

World Bank Research Observer 14(1): 73–98.<br />

Bray, D. B., L. Merino-Perez, and D. Barry, eds. 2005. The<br />

Community <strong>Forests</strong> of Mexico: Managing for Sustainable<br />

Landscapes. Austin, TX: University of Texas Press.<br />

Douglas, J., and D. Chandrasekharan Behr. 2006. “Note #1:<br />

Prioritizing Where Cross Sector Impacts Matter.” Note<br />

submitted to World Bank as input to <strong>Forests</strong> <strong>Sourcebook</strong>.<br />

Unpublished. World Bank. Washington, DC.<br />

Gueorguieva, A., and K. Bolt. 2003. “A CriticalReview of the<br />

Literature on Structural Adjustment and the Environment.”<br />

Environment Department Papers No. 90. World<br />

Bank, Washington, DC.<br />

Humphreys, D. 1996. “The Global Politics of Forest Conservation<br />

Since the UNCED.” Environmental Politics 5(2):<br />

231–57<br />

Kaimowitz, D., C. Vallejos, P. Pacheco and R. Lopez. 1998.<br />

“Municipal Governments and Forest Management in<br />

Lowland Bolivia.” Journal of Environment and Development<br />

7(1).<br />

Lampietti, J. 2004. “Power’s Promise: Electricity Reforms in<br />

Eastern Europe and Central Asia.” Working Paper No. 40.<br />

World Bank, Washington, DC.<br />

Mani, M. 2004. “An Overview of Environmental and Natural<br />

<strong>Resource</strong> Aspects of IBRD Financed Development<br />

Policy Lending Operations in FY05.” ENV-ESSD, internal<br />

note. World Bank, Washington, DC.<br />

Munasinghe, M. 2001. “Special Topic I: Structural Adjustment<br />

Policies and the Environment.” Environment and<br />

Development Economics 4(1): 9–18.<br />

OPCS (Operations Policy and Country Services). 2004.<br />

“Good Practice Notes Relating to the Development Policy<br />

Lending OP/BP 8.60: Environmental and Natural<br />

<strong>Resource</strong> Aspects.” World Bank, Washington, DC.<br />

Pandey, K., and D. Wheeler. 2001. “Structural Adjustment<br />

and Forest <strong>Resource</strong>s: The Impact of World Bank Operations.”<br />

Policy Research Working Paper 2584. World<br />

Bank, Washington, DC.<br />

Sedjo, R. A. 2005. “Macroeconomics and Forest Sustainability<br />

in the Developing World: <strong>Resource</strong>s for the Future.” Discussion<br />

Paper DP 05-47. World Bank, Washington, DC.<br />

Sunderlin, W.D., O. Ndoye, H. Bikié, N. Laporte, B.<br />

Mertens, and J. Pokam. 2000. “Economic Crisis, Small-<br />

Scale Agriculture, and Forest Cover Change in Southern<br />

Cameroon.” Environmental Conservation 27(3): 284–90.<br />

UN-CSD (United Nations Commission on Sustainable<br />

Development). 1997. Report of the Ad Hoc Intergovernmental<br />

Panel on <strong>Forests</strong>. E/CN.17/1997/12. United<br />

Nations, New York.<br />

UNECE (Economic Commission for Europe) 2004. Environmental<br />

Performance Reviews, Bosnia and Herzegovina.<br />

New York and Geneva: United Nations. http://www.unece.<br />

org/env/epr/epr_studies/bosnia_and_herzegovina.pdf<br />

World Bank. 2004a. Sustaining <strong>Forests</strong>: A Development Strategy.<br />

Washington, DC: World Bank.<br />

———. 2004b. “Azerbaijan Raising Rates: Short-Term<br />

Implications of Residential Electricity Tariff Rebalancing.”<br />

Report No. 30749-AZ. Europe and Central Asia<br />

Region. Environmentally and Socially Sustainable Development.<br />

World Bank, Washington DC.<br />

CHAPTER 6: MAINSTREAMING FORESTS INTO DEVELOPMENT POLICY AND PLANNING 211

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