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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 23.05.2017 Seite 1 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) 2 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 3 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 4 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 23.05.2017 5 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 23.05.2017 6 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 23.05.2017 7 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 23.05.2017 8 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 23.05.2017 9 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 23.05.2017 10 www.eld-initiative.org 23.05.2017 23.05.2017 11 www.eld-initiative.org THANK YOU FOR YOUR ATTENTION ! 23.05.2017 12 Thank you for your attention! ELD Secretariat Hannes Etter www.eld-initiative.org 23.05.2017 Seite 13 The ELD Initiatives contribution to land management 23.05.2017 14 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 23.05.2017 15 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 23.05.2017 16