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

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

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OPCS. 2004. “Good Practice Notes Relating to the Development Policy Lending OP/BP 8.60: Designing Development Policy Operations.” World Bank, Washington, DC. REFERENCES CITED Topa, G., and L. Debroux. 2006. “The Use of DPLs to Support Natural Resources Management in Gabon and Cameroon.” Note for internal circulation, World Bank, Washington, DC. World Bank. 2005. “Review of World Bank Conditionality: Issues Note.” Operations Policy and Country Services, World Bank, Washington, DC. ———. 2006. “Good Practice Principles for the Application of Conditionality: A Progress Report.” Operations Policy and Country Services, World Bank, Washington, DC. ———. 2007a. Program Document for Ghana—Fifth Poverty Reduction Support Credit Project (P099287). Poverty Reduction and Economic Management, Africa Region. Report No. 39657-GH. World Bank, Washington, DC. ———. 2007b. Program Information Document for Armenia—Third Poverty Reduction Strategy Credit Project (P093460). Report No. 38358-AM. World Bank, Washington, DC. CROSS-REFERENCED CHAPTERS AND NOTES Chapter 5: Improving Forest Governance, and associated notes 228 CHAPTER 6: MAINSTREAMING FORESTS INTO DEVELOPMENT POLICY AND PLANNING

NOTE 6.3 Identifying the Need for Analysis on Forests in Development Policy Reforms The combined impacts on forests of economic activities that originate outside the forest sector are, in most cases, significantly greater than those produced by economic activity within the sector itself. Macroeconomic change will almost always be a major component of these external forces. Therefore, if forests are a significant part of the economic and social resource base of a country, it will be necessary to consider such impacts when DPL, broadly based poverty alleviation programs, and related programmatic activities are being designed. Assessing causality is complicated. The impacts on forests and other natural resources of large-scale economic policy changes and reforms will manifest themselves through a complex web of second- and third-round activities and responses that will be triggered as illustrated in figure 6.1 (World Bank 2005). Identifying the nature of their eventual impacts on forests—or even whether there will be significant impacts—will not be straightforward: Prior economic, environmental, and social conditions will have a major role in outcomes, and no general relationships or models to predict impact outcomes are, or are likely to become, available. 1 Where forests are sufficiently important economically, or directly support the livelihoods of a large number of poor people, the impacts of broadly based growth could significantly compromise the broad goals of economic growth, poverty alleviation, and environmental sustainability of macro policy loans. Due diligence requires identification of cases where this is a potential risk to the overall implementation of the policy loan and making the necessary adjustments to program design. A dearth of data. There are currently relatively few comprehensive data sets on cross-sectoral impacts or impacts of macroeconomic reform; this imposes a significant operational constraint on development of good practice for managing the World Bank’s engagement in this area. Good practice will, therefore, initially largely be a matter of developing guidelines and approximation methodologies for identifying cases where there is significant potential for important impacts to occur, and then applying economic and sector work in a timely and focused manner to those situations. Linked to the latter, there is a need to develop acceptable approaches and for the World Bank to adequately invest in assessing the potential impacts of particular economic changes in which it is involved in specific countries. Figure 6.1 Indirect Impact of Fiscal Reform on Forests Economic reform Anticipated response Institutional linkages Environmental impact Fiscal reform Reduction in resources for environmental goods and services Reduction in • Coverage of environmental issues • Enforcement capacity • Monitoring ability Deforestation Soil contamination Biodiversity loss 229

OPCS. 2004. “Good Practice Notes Relating to the Development<br />

Policy Lending OP/BP 8.60: Designing Development<br />

Policy Operations.” World Bank, Washington, DC.<br />

REFERENCES CITED<br />

Topa, G., and L. Debroux. 2006. “The Use of DPLs to Support<br />

Natural <strong>Resource</strong>s Management in Gabon and<br />

Cameroon.” Note for internal circulation, World Bank,<br />

Washington, DC.<br />

World Bank. 2005. “Review of World Bank Conditionality:<br />

Issues Note.” Operations Policy and Country Services,<br />

World Bank, Washington, DC.<br />

———. 2006. “Good Practice Principles for the Application<br />

of Conditionality: A Progress Report.” Operations Policy<br />

and Country Services, World Bank, Washington, DC.<br />

———. 2007a. Program Document for Ghana—Fifth Poverty<br />

Reduction Support Credit Project (P099287). Poverty<br />

Reduction and Economic Management, Africa Region.<br />

Report No. 39657-GH. World Bank, Washington, DC.<br />

———. 2007b. Program Information Document for Armenia—Third<br />

Poverty Reduction Strategy Credit Project<br />

(P093460). Report No. 38358-AM. World Bank, Washington,<br />

DC.<br />

CROSS-REFERENCED CHAPTERS AND NOTES<br />

Chapter 5: Improving Forest Governance, and associated notes<br />

228 CHAPTER 6: MAINSTREAMING FORESTS INTO DEVELOPMENT POLICY AND PLANNING

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