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The Economics of Land Degradation
Initiative:
Economics as a tool for prosperous, shared,
and sustainable land management
2015 Annual World Bank Conference on
Land and Poverty
March, 9th
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Land degradation & poverty
Distribution of rural population of developing countries on degrading land in 2000
Degrading agricultural land consists of agricultural land
with a negative change in Net Primary Productivity (NPP)
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from 1981–2000 (Barbier & Hochard 2014).
Land degradation & poverty
Distribution of rural population of developing countries on improving land in 2000
Improving agricultural land consists of agricultural land
with a non-negative change in Net Primary Productivity (NP
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from 1981–2000 (Barbier & Hochard 2014)
Land degradation & poverty
Conclusion:
 1/3 of world population lives on low productivity land
 The concentration of rural populations on unfavorable and/or degrading
agricultural lands is predominantly a problem in developing countries
 Most vulnerable rural population groups are located on unfavorable
and/or degrading agricultural lands that are also remote from markets
 Need to:
 Create market access and infrastructure to increase land value
 Create incentives and economic capacity to improve and diversify
livelihoods
 Support existing livelihoods and political environments with robust
economics
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Economics as an intermediary between land users
and policy
 Strong economic impetus to create enabling environments on all scales
 Global level: 75 billion tons of soil loss costs ~US$400 billion/year
 National and regional examples:
Niger: 8% of national GDP lost to degradation (Nkonya et al. 211)
Piura, Peru: Land degradation losses: 12-15% of agricultural GDP
(Morales 214)
 Land tenure is a core tool to facilitate uptake of sustainable land
management practices:
 Case study by Favretto et al. (2014)
 Total economic value must be considered in designing land
management and framing policies
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Economics as an intermediary between land users
and policy
 Strong economic impetus to create enabling environments on all scales
 Global level: 75 billion tons of soil loss costs ~US$400 billion/year
 National and regional examples:
Niger: 8% of national GDP lost to degradation (Nkonya et al. 211)
Piura, Peru: Land degradation losses: 12-15% of agricultural GDP
(Morales 214)
 Land tenure is a core tool to facilitate uptake of sustainable land
management practices:
 Case study by Favretto et al. (2014)
 Total economic value must be considered in designing land
management and framing policies
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Economics as an intermediary between land users
and policy
The Economics of Land Degradation Initiative
 A harmonized assessment of the economic value of land
and land-based ecosystems
 Provide solutions to three target groups
1. Political decision makers
2. Private Sector
3. Scientific community
 Outputs:
 Target group specific reports
 Capacity building activities
 Communication on the value of land
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 Contributions of the ELD Initiative to shared land
prosperity

State land:
 Definition: State is full owner of land and and tenure is transferable
through voluntary trade
 Tools and approaches to integrate the economics in decision making:
 Methodology for the assessment of the value of land
 Stakeholder needs assessments
 Scientifically supported recommendations for changing land
management policies
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Contributions of the ELD Initiative to shared land
prosperity
Common property:
 Definition: Ownership is fully defined and allocated to a group of
individuals, with exclusion potential and right to penalisation.
 Tools and approaches:
 Economic assessments justify requests from common land owners
for support/compensation from external beneficiaries
 Stakeholder needs assessments
 Capacity building: Practitioner‘s Guide
 ELD Report to political decision-makers
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Contributions of the ELD Initiative to shared land
prosperity
Private property:
 Definition: fully defined ownership, which is transferable to others with
exclusion potential and the option of penalising tenure violations
 Tools and approaches:
 Capacity building: MOOC
 Land Materiality Screening Tool
 ELD Report for Private Sector
 Alliance of the Willing
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www.eld-initiative.org
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www.eld-initiative.org
THANK YOU FOR YOUR ATTENTION !
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Thank you for your attention!
ELD Secretariat
Hannes Etter
www.eld-initiative.org
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The ELD Initiatives contribution to land
management
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The ELD Practicioner‘s Guide
 Step-by-step guide through ELD‘s 6+1 steps
 Supports the implementation of cost-benefit
analysis based on scenario development
 Builds upon real-life examples
 Showcase for knowledge generation by a
broader audience
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Upcoming capacity building activities
 Cooperation Water and Food Awards
Contribution to economic assessments of awardees’ projects
 ELD MOOC 2.0
Approaches to identify options & pathways for action, methods
to identify stakeholders, and how to establish a basis for
initiating engagement and discussion
 Curricula development
Increasing the academic outreach of the ELD Initiative through
virtual and real university and academic institutions
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