Inclusive Green Growth: Lessons from UNDP-UNEP PEI

1. SIDA SEMINAR - AFTER RIO+20: NEXT STEPS TOWARDS INCLUSIVE GREEN GROWTHTHE UNDP-UNEP POVERTY & ENVIRONMENT INITIATIVE (PEI): LESSONS FOR MOVING FORWARD ON GREEN ECONOMYDavid H SmithManager-AfricaUNDP-UNEP PEI

2. BACKGROUND • UNDP & UNEP COMBINED SEPARATE PEI PROGRAMMES TO FORM THE JOINT UNDP-UNEP PEI IN AFRICA – SEPTEMBER 2005 • LESSONS LEARNT IN AFRICA KEY TO DEVELOPING PEI SCALE-UP – LAUNCHED FEB 2007, COMMENCED 2008 • SCALE-UP TO OTHER REGIONS – ASIA, LAC, ECIS • JOINT MANAGEMENT, PROGRAMMING, BUDGETING & STAFF HIRING • JOINT TEAMS AT GLOBAL & REGIONAL LEVELS, GOVT-UNDP COUNTRY OFFICE TEAMS AT COUNTRY LEVEL • EXCELLENT EXAMPLE OF INTER-AGENCY CO-OPERATION & UN REFORM – ONE UN IN ACTION

3. UNDP-UNEP POVERTY & ENVIRONMENT INITIATIVE (PEI): WHAT WE DO THE UNDP-UNEP PEI SUPPORTS GOVERNMENTS TO: INCLUDE PRO-POOR ENVIRONMENTALLY SUSTAINABLE NATURAL RESOURCE USE AS A CORE OBJECTIVE IN DEVELOPMENT PLANNING & IMPLEMENTATION BUILD CAPACITY SO THAT DECISION-MAKERS KNOW : HOW PRO-POOR ENVIRONMENTAL SUSTAINABILITY CONTRIBUTES TO DEVELOPMENT & HOW TO INCLUDE PRO-POOR ENVIRONMENTAL SUSTAINABILITY IN DEVELOPMENT PLANNING & IMPLEMENTATION.

4. UNDP-UNEP POVERTY & ENVIRONMENT INITIATIVE (PEI): WHY WE DO IT • UNSUSTAINABLE USE OF THE ENVIRONMENT REDUCES THE SOCIAL & ECONOMIC BENEFITS PRODUCED FROM NATURAL RESOURCES • THUS, DEVELOPMENT IS HINDERED BY ENVIRONMENTAL UNSUSTAINABILITY • HOWEVER, THE CONTRIBUTION OF ENVIRONMENTAL SUSTAINABILITY TO SOCIAL & ECONOMIC DEVELOPMENT IS OFTEN POORLY UNDERSTOOD • ENVIRONMENTAL SUSTAINABILITY NOT OPERATIONALLY INTEGRATED INTO NATIONAL DEVELOPMENT PROCESSES (E.G. PRSPS; SECTOR PLANS): WORDS BUT NOT ACTION.

5. Sun Tzu: “Always Start With the End in Mind” -THE RESULTS WE WANT TO ACHIEVE • Pro-poor environmentally sustainable natural resource use is included as objective/outcome etc in national & sector development plans • There are indicators attached to these objectives/outcomes • These indicators are included in the Monitoring & Evaluation plan • Sector Plans are developed & budgets are allocated to achieve the pro-poor sustainability objectives • Budgets in sectors – not just environment ministries – are allocated to achieve pro-poor sustainable natural resource use • Increased donors support for poverty-environment investments • Longer term capacity building programme for the environment & natural resources (ENR) sector is put in place

6. WHAT HAS PEI ACHIEVED? – 1 • SUCCESSFULLY CLARIFIED A NORMATIVE CONCEPT & DEVELOPED IT INTO A OPERATIONAL MODEL • OPERATIONALLY PROVEN MODEL: TECHNICALLY ROBUST & POLITICALLY ACCEPTABLE • MOST COMPREHENSIVE EXAMPLE OF JOINT PROGRAMMING BETWEEN UNDP & UNEP – UN REFORM IN ACTION • SIGNIFICANTLY IMPROVED UNDERSTANDING OF HOW SUSTAINABILITY CAN HELP ACHIEVE DEVELOPMENT GOALS • ENVIRONMENTAL SUSTAINABILITY INCLUDED AS AN OBJECTIVE IN NATIONAL DEVELOPMENT PLANS

7. WHAT HAS PEI ACHIEVED? – 2 PARTIAL OPERATIONALISATION OF SUSTAINABILITY OBJECTIVES – E.G. Increased budgetary allocations for environmental sustainability BUT RESULTS VARY BY COUNTRY – FAILURE IN SOME COUNTRIES NEED TO FOCUS MORE ON POVERTY SIDE OF P-E MAINSTREAMING NEED TO FOCUS MORE ON SUSTAINING IMPACT - SUSTAINED INCREASES IN INVESTMENT IN P-E - LONGER TERM CAPACITY BUILDING PROGRAMMES - INSTITUTIONAL REFORMS – e.g. Cross government co- ordination mechanisms

8. PEI GENERAL PROGRAMMING APPROACH

9. RECOGNISE SUBSTANTIVE EFFORT REQUIRED - 1 • P-E MAINSTREAMING IS A 10-20 YEAR PROCESS OF INSTITUTIONAL CHANGE (NORWEGIAN PEI AFRICA EVALUATION) • P-E MAINSTREAMING NOT OPERATIONALLY SUCCESSFUL PREVIOUSLY – WORDS BUT NOT SUFFICIENT ACTION • SECURING DEPTH & WIDTH OF NATIONAL OWNERSHIP = CROSS –GOVERNMENT, CROSS SECTOR PARTICIPATORY APPROACH • SIGNIFICANT CAPACITY GAPS IN COUNTRIES FOR P-E MAINSTREAMING • SUPPORTING CHANGE IN GOVERNMENT DEVELOPMENT PRIORITIES & BUDGETS

10. RECOGNISE SUBSTANTIVE EFFORT REQUIRED - 2 WORKING IN MULTI-MINISTERIAL CONTEXT NEED TO FOLLOW COUNTRY DEVELOPMENT PROCESSES - 4-5 YEAR CYCLE HIGH LEVEL OF SUSTAINED ENGAGEMENT IN COUNTRY PROCESSES REQUIRED SUBSTANTIVE ONGOING TECHNICAL ASSISTANCE REQUIRED ‘STUBBORN PERSISTENCE & ATTENTION TO DETAIL’ PROACTIVE, ENERGETIC FOCUS ON RESULTS

11. LESSONS - 1 • ENSURE NATIONAL COMMITMENT AT DIFFERENT LEVELS BEFORE DECIDING TO GO AHEAD • PARTICIPATORY APPROACH CRITICAL • ADOPT A JOINT GOVERNMENT-UN PROGRAMMATIC APPROACH BASED ON EXISTING COUNTRY PROCESSES. (E.G. PRSP) • MINISTRY OF PLANNING/FINANCE SHOULD LEAD • WORK WITH OTHER DONORS FROM THE BEGINNING • INSTITUTIONAL ANALYSIS TO UNDERSTAND • DEVELOPMENT PLANNING PROCESS, ENVIRONMENTAL & NATURAL RESOURCE PLANNING & MANAGEMENT. • ISSUES THAT ARE OUTSIDE CONTROL OF P-E COUNTRY PROGRAMME BUT HAVE MAJOR IMPACT – E.G. LAND TENURE, POLITICAL-ECONOMY ISSUES

12. LESSONS - 2 • CARRY OUT ECONOMIC ANALYSES TO SHOW HOW ENVIRONMENTALLY SUSTAINABLE NATURAL RESOURCE USE CAN IMPROVE ECONOMIC & SOCIAL DEVELOPMENT. • USE VERY SPECIFIC EXAMPLES – • E.G. HYDRO ELECTRICITY PRODUCTION LOST FROM UNSUSTAINABLE WATER USE & SEDIMENTATION. • USE NON-MARKET VALUES ALSO – CONVENTIONAL ECONOMICS CAN MISS IMPORTANT VALUES – • E.G. FAMILY FISHING OR FUEL WOOD COLLECTION • USE ECONOMIC EVIDENCE TACTICALLY • BRIEFING NOTES • PRESENT EVIDENCE REPEATEDLY IN DIFFERENT MEETINGS & WORKING GROUPS

13. LESSONS - 3 • INTENSIVE INVOLVEMENT IN DEVELOPMENT PLANNING PROCESS – DAILY, WEEKLY IN WORKING GROUPS, DONOR-GOVERNMENT MECHANISMS, MACRO & SECTOR LEVEL ETC • CARRY OUT PUBLIC EXPENDITURE REVIEWS (PER) IN THE ENVIRONMENT NATURAL RESOURCE (ENR) SECTORS • DEVELOP BUDGET GUIDELINES FOR PLANNING/FINANCE ON HOW THEY CAN BETTER INCLUDE ENVIRONMENTAL SUSTAINABILITY IN BUDGETS • SUPPORT KEY SECTOR POLICY & BUDGETARY DEVELOPMENT PROCESSES TO ENSURE SUSTAINABILITY OBJECTIVES OPERATIONALISED

14. LESSONS - 4 • DESIGN MECHANISMS FOR LONG-TERM INCREASE IN BUDGETS FOR PRO-POOR ENVIRONMENTAL SUSTAINABILITY E.G. • PREPARE ENVIRONMENT- NATURAL RESOURCE SECTOR SUPPORT PROGRAMMES FOR FUNDING BY MAJOR DONORS BASED IN COUNTRY • FOCUS ON MEDIUM TERM EXPENDITURE FRAMEWORK (MTEF) & INVESTMENT STRATEGY PROCESSES • IMPROVEMENTS TO GOVERNMENT COST-BENEFIT ANALYSIS & FINANCIAL APPRAISAL METHODOLOGIES SO POVERTY & SUSTAINABILITY IMPLICATIONS BETTER INCLUDED • MINIMISE FINANCING OF PILOT PROJECTS

15. PEI LESSONS FOR THE WAY FORWARD FOR GE IN A DEVELOPING COUNTRY CONTEXT: SUMMARY • CLARIFY • WHAT DOES GE MEAN IN NORMATIVE TERMS? • WHAT DOES IT MEAN IN OPERATIONAL TERMS? • HOW WILL GE HELP ACHIEVE POVERTY REDUCTION & OTHER DEVELOPMENT GOALS? • COMMUNICATE • ENSURE COUNTRIES KNOW WHAT GE MEANS & HOW GE WILL HELP ACHIEVE DEVELOPMENT GOALS • ENSURE COUNTRIES KNOW HOW GE CAN BE APPLIED IN PRACTICAL TERMS • CAPACITATE • COUNTRIES TO APPLY GE IN A SUSTAINED MANNER