Environment and Development; Trends in Latin America and The

Caribbean

February 2004February 2004

Inter-American Development Bank Inter-American Development Bank

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Environmental Underpinnings of Sustainable DevelopmentLatin America and the Caribbean depends on the environmental services such as those provided by:ForestsCoastal and marine ecosystemsTerrestrial biodiversitySurface and ground waterSoils

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Environmental Progress

Environmental institutions Laws Conservation programs, establishment of

protected areas Focus on urban environmental concerns,

air quality, sanitation, solid waste management

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Challenges

Despite significant investments from countries, multilateral banks, bilateral agencies to specific environmental programs the trend indicators point to:greater environmental degradation and depreciation of natural capital; and Poorer health, declines in productivity and income, physical vulnerability and diminished quality of life

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The problem areas in natural resource and environmental management

Water resources Forest resources and biodiversity Marine-coastal resources Energy Urban pollution Vulnerability to natural disasters Climate change

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Trends

Forests, soils and biodiversity

In ten years, region has lost 4.7 million hectares of forest per year, resulting in extensive loss of:

Soil Biodiversity and genetic resources Water

Development Impact: reduction in agricultural productivity, vulnerability to flooding and droughts, loss of tourism

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Trends (cont.)

Urban EnvironmentsTransportation patterns in urban areas are causing acute deterioration of air quality: Increases in particulate matter, carbon dioxide,

nitrogen oxides, sulphur dioxides, and volatile organic compounds.

More than 100 million people are exposed to pollutants at levels that exceed WHO air quality standards

Development Impact: respiratory illnesses resulting in 100,00 deaths each year

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Trends (cont.)

Water Resources 76 million people lack access to safe water

15% of total population Less than half of the population is

connected to sewage treatment services.

Development Impacts: gastrointestinal infections, premature infant mortality

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Trends (cont.)

Coastal-Marine ResourcesCoastal ecosystems and estuaries are being

degraded Destruction of mangroves Loss of coral reefs due to pollution Oversfishing Development Impact: loss of livelihood in

fishing, tourism, and aquaculture

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Trends (cont.)

Climate ChangeAt present relatively small contribution to overall

GHG emissions. Region vulnerable to climate change:

extreme weather events flooding, loss of coastline drought, fires Development Impacts: loss of infrastructure,

productivity, livelihood, and lives

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Trends (cont.)

Natural DisastersRegion vulnerable to earthquakes, floods, fires,

tropical storms, hurricanes, droughts and landslides:

Average of 40.7 disasters per year (1990-1998) Poor most affected Development Impacts: Loss of life, economic

losses ($20 billion 1990-1998), infectious diseases, homelessness

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Gross and net savings

(% of GDP)

0% 5% 10% 15% 20% 25% 30% 35%

Middle East and North Africa

Rest of Africa

Eastern Europe and Central Asia

Latin America and Caribbean

South Asia

Developed

Southeast Asia and PacificNet savings Environmental

Degradation EnvironmentalDegradation

Genuine savings in LAC

13-20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30%

NicaraguaHaití

El SalvadorGuatemalaColombiaVenezuela

GuyanaBolivia

ParaguayTrinidad y Tobago

UruguayAntigua y Barbuda

EcuadorArgentina

BeliceBarbadosJamaica

PerúMéxico

Rep. DominicanaChileBrasil

HondurasCosta Rica

Panamá

Gross and net savings

(% of GDP) Net savings

Environmental

Degradation

Genuine Savings in LAC, by Country

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Weak Environmental Institutions

Lack of technical and financial resources Poor public participation processes Ineffective policies and programs

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Lack 1

Policy Coherence Environment is a significant factor in

health, agriculture, energy, transportation , trade, etc.

Policies often work at cross purposes, eroding environmental gains or impeding them

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New Approaches1. Strengthening Environmental Governance technical and financial sustainability of

environmental institutions Regulatory frameworks with emphasis on

monitoring,and enforcement Environmental management instruments:

environmental information, market-based measures, economic valuation of natural resources and environmental services

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New Approaches

2. Mainstreaming environmental considerations into social and economic policies

Capacity building for developing economic and social policies that shape the behavior of individuals, institutions and companies.

Developing tools that help quantify the environmental benefits and costs of policies

Integrating environmental considerations with other strategic priorities such as modernization of the state, enhancing competitiveness, social development and regional economic integration

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Implications

Environmental sustainability as a core element of development effectiveness

Address the interface between environment and: modernization of the state, competitiveness, economic integration, and social development

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Priority areas of action

1. Modernization of the state and the environment

Strengthen environmental governanceImprove financial sustainabilitySupport decentralization processesSupport a wide range of management

instruments

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Priority areas of action (cont.)

2. Competitiveness and the environmentPreserve the productive value of natural

resources and ecosystemsPromote public and private investmentPromote clean production mechanismsEstablish systems of certification and

accreditationPromote green goods and services

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Priority areas of action (cont.)

3. Social development and the environmentAddress health-environment linkagesSupport rural communities and indigenous

groupsReduce environmental risk

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Priority areas of action (cont.)

4. Regional Integration and the environmentStrengthen environmental institutions, policies

and programs Identify potential environmental stresses and

opportunitiesPromote effective regional management of

shared public goods (watersheds, corridors, etc.) Apply adequate environmental analysis and

monitoring in regional infrastructure initiatives