REPOSITIONING LIVESTOCK ON THE GLOBAL DEVELOPMENT AGENDA

1. REPOSITIONING LIVESTOCK ON THE GLOBAL DEVELOPMENT AGENDA LIVESTOCK AND THE PUBLIC GOOD NEXUS Jimmy W. Smith World Bank IADG Annual Meeting IFAD, Rome, Italy May 4-5, 2010

2. OUTLINE • Ways to think about the Public Good nexus • The status quo • Increasing the Public Good contributions

3. Ways to think about the Public Good Nexus

4. Thinking about Public Goods –Based on Economic Principles • Pure Public Goods share two qualities: • Nonexcludability --which means that when provided to one party, the public good is provided to all. • Nonrivalary --which means that the consumption of the Public Good by one party does not reduce the amount available to others.

5. High Rivalry Common Pool Goods Communal rangelands Water (volume and quality) Air quality (including protection against climate change) Animal genetic resources and other sources of biodiversity Private Goods On-farm production, processing, and distribution (quality standards) Most clinical veterinary and breeding services Most input supplies (feed, seed, etc.) High excludability Pure Public Goods Poverty reduction Border quarantine Food safety inspection Protection against contagious diseases Animal health intelligence Disease data systems Club Goods Standards and certification systems Face-to-face advisory services Collective action in disease (tick dips) control

6. SOME EXAMPLES -- PUBLIC GOOD, ROLE & RESPONSIBILITY

7. GLOBAL PUBLIC GOODS“Issues that are broadly conceived as important to the international community, that for the most part cannot or will not be adequately addressed by individual countries acting alone and that are defined through a broad international consensus or a legitimate process of decision-making.”

8. Contribution to the MDG Eradicate extreme poverty and hunger • At least 50 % of income, food and arable farming inputs for 700 million poor, even in middle income countries: • Indonesia: Only 3 percent poultry meat from large farms • India: 5.5 percent of national workforce in dairy sector Achieve universal education • Critical cash to pay school fees Promote gender equality • Sole source of income and inheritance transfers for women

9. Contribution to the MDG Reduce Child Mortality • Critical cash to pay health expenses • Essential mineral and vitamin source to supplement poor basal diets Improve maternal health • Milk to supplement breast feeding and enhance overall maternal health Combat HIV/AIDS, malaria and other diseases • Traction to reduce drudgery of labor of weakened farming population • Opportunities to combine health services

10. Contribution to the MDG Ensure environmental sustainability Organic Fertilizer for about half total nutrient needs Traction for about one-third of the world’s total arable land Income to buy inputs for crops Develop a global partnership Responding to critical research needs Opportunity for global action on emerging zoonotic diseases Opportunities to act collectively to control GHG from livestock

11. The status quo

12. Donor Support to Agriculture1980-2007 Early 1980s Official development assistance (ODA): 17% World Bank lending is recovering ….. World Bank lending: 30% Early 1990s Official development assistance (ODA): 12% World Bank lending: 15% Early 2000s Official development assistance (ODA): 4% World Bank lending: <10% …but overall ODA has not recovered

13. Challenges AGRICULTURE 4% OFFICIAL DEVELOPMENT ASSISTANCE WORLD POOR PUBLIC SPENDING (Sub-Saharan Africa) AGRICULTURE 4% RURAL 75%

14. Public Good Generation Requires Public Investments • Investment at the national level is limited: • Only 3 countries had PRSPs with detailed strategy and budget for livestock and poverty reduction • Nonehad specified investments under Poverty Reduction Strategy Credits; and • Lowinvestment from national budgets (estimated 15-20 percent of Agricultural budget) • For example, Mali: Livestock about 35 percent of Ag. GDP but MinAg. budget: 91.6 % arable farming, 3.6 % livestock and 1% for fisheries

15. Increasing the Public Good Contributions

16. Poverty Reduction Global extreme poverty 2002, $1.08 a day • 2.5 billion people depend directly on agriculture • 800 m smallholders • 75% of poor are rural and the majority will be rural to about 2040 Global Urban poor 287 mill. South Asia rural 407 mill. MENA rural 5 mill. ECA rural 5 mill. East Asia rural 218 mill. Sub-Saharan Africa rural 229 mill. LAC rural 27 mill.

17. The Global Zoonotic Disease Challenge - beyond Avian Influenza

18. Important user of natural resources: • 70-75% of fresh water resources • 40% of land area • 25-30% of greenhouse gas emissions Mitigating the effects of livestock on the environment Mitigating the effects of climate change on livestock Contributions to Greenhouse Gas Emissions Developing country agriculture & deforestation 21% Developing country other sources 15% Industrialized countries 64% Environmental Sustainability

19. 80% 20% 0 0 50% 100% Three Worlds of Agriculture Agriculture based countries Mainly SS-Africa 417 million rural people Agriculture’s share in growth 1990-2005 Transforming countries Mainly Asia, MENA 2.2 billion rural people Urbanized countries Mainly Latin America 255 million rural people Rural poor/total poor, 2002

20. Negative equity effects were mostly neglected

21. Examples of proven good practice of livestock led, socially equitable development • Operation Flood in India • Cooperative movement now with about 130,000 member coops, serving 14 million farmers, including 3.7 million women processing about 20 million ton milk annually • Pastoral development in East Africa • Ethiopian and Kenyan pastoral development projects working for the poorest group of society rated moderately satisfactory or better for outcomes

22. Poverty --proposed actions • Support research for “technologies for the poor” • Develop remedies to “livestock diseases of the poor” • Develop alternative feeds resources • Support better integration of smallholders in the value chain • Promote, where needed, exits from the sector

23. Neglect of emerging health issues(until recently) • Public health: • Six major zoonotic disease scares over last decade with economic losses over US $ 200 billion (direct and indirect) over the last decade • Of 1415 known pathogens, 62 percent of animal origin • 1.6 million annual TB fatalities of which 2-15 percent of bovine origin • Food borne pathogens important contributor to diarrheal diseases • Contribution to obesity and other food related health risks

24. Animal-Health --proposed actions Building on the HPAI efforts to promote the “One Health” concept: At the international level seek to promote: • Permanent global Coordination mechanisms • Sustainable funding Mechanisms At the national level seek to promote: • Permanent coordination mechanisms • Horizontal communication • Facility and skill sharing

25. Animal-Health --proposed actions • Prevent and control the ‘lingering’ zoonotic diseases whih mostly affect the poor • Further strengthen veterinary public health services/mechanisms.

26. Neglect of Negative Environmental Issues • Livestock sector is major contributor to greenhouse gas emission, important eroder of bio-diversity; cause of land degradation and water pollution • Use one quarter of total terrestrial land and one third of total crop land • Contribute to 20 percent rangeland degradation • Emit 18 percent of anthropogenic Greenhouse Gasses • Use 15 percent of global agriculture water • Pose a threat to bio-diversity in 306 of the 825 eco-regions • Changing climatic effects on feed & water resources, pathogens and disease dynamics

27. The Environment --Proposed Actions • Continue to work on payment for environmental services: • Use PES to reduce deforestation of hunid tropical forest; • Shift pastoralists in arid areas from livestock herders to stewards of the landscape • Expand work on environmental mitigation of intensive livestock production systems; • Promote innovation in livestock waste management • Increase attention to livestock and Global Climate Change • Reducing GHG emission • Adapting livestock systems to GCC

28. THANK YOU