LIVESTOCK AND THE PUBLIC GOOD NEXUS
Jimmy W. Smith
World Bank
IADG Annual Meeting
IFAD, Rome, Italy
May 4-5, 2010
Ways to think about the Public Good nexus
The status quo
Increasing the Public Good contributions
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.
High excludability
HighRivalry
Pure Public GoodsPoverty reductionBorder quarantine Food safety inspectionProtection against contagious diseasesAnimal health intelligence Disease data systems
Common Pool GoodsCommunal rangelandsWater (volume and quality)Air quality (including protection against climate change)Animal genetic resources and other sources of biodiversity
Club GoodsStandards and certification systemsFace-to-face advisory servicesCollective action in disease (tick dips) control
Private GoodsOn-farm production, processing, and distribution (quality standards)Most clinical veterinary and breeding servicesMost input supplies (feed, seed, etc.)
Funding ResponsibilityFor Imp.
Oversight
Pure Public GoodsVeterinary health
• Border quarantine Public sector Public sector Mainly national Veterinary Services (VS)
• Surveillance of main contagious diseases
Public sector Preferably in subcontract with private operators
Mainly district service, with clear lines to national VS, with international support in developing countries and international coordination among all countries
• Early alert and response for main contagious diseases
Public sector Preferably in subcontract with private operators
Mainly national VS with international support
• Vaccination Public/private partnership
Mostly private sector Mainly national VS with international support
• Vaccine development
Public/private partnership
Mostly private sector National or regional public institutions
• Disease data systems
Public/private partnership
Mainly public sector Mainly national VS with international support
Food safety and human public health
Public/private partnership
Preferably in subcontract with private operators
Mainly local, within overall guidelines of national and, eventually, international buyers
Research and education
Public/private partnership
Preferably private with subcontracts
Public/private at corresponding levels
SOME EXAMPLES -- PUBLIC GOOD, ROLE & RESPONSIBILITY
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
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
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
Early 1980s
Early 1990s
Early 2000s
Official development assistance (ODA): 17%
World Bank lending: 30%
Official development assistance (ODA): 12%
World Bank lending: 15%
Official development assistance (ODA): 4%
World Bank lending: <10%…but overall ODA has not recovered
World Bank lending is recovering …..
OFFICIAL DEVELOPMENT
ASSISTANCE
PUBLIC SPENDING(Sub-Saharan Africa)
AGRICULTURE
4%
RURAL
75%
AGRICULTURE
4%
Challenges
WORLD POOR
Investment at the national level is limited:
Only 3 countries had PRSPs with detailed strategy and budget for livestock and poverty reduction
None had specified investments under Poverty Reduction Strategy Credits; and
Low investment 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
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Increasing the Public Good
Contributions
– 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 extreme poverty 2002, $1.08 a dayGlobal extreme poverty 2002, $1.08 a day
GlobalUrban poor
287 mill. South Asia rural
407 mill.
Sub-SaharanAfrica rural
229 mill.
East Asia rural
218 mill.LAC rural27 mill.
ECA rural5 mill.
MENA rural5 mill.
Poverty Reduction
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Mitigating the effects of livestock on the environment
Mitigating the effects of climate change on livestock
Mitigating the effects of livestock on the environment
Mitigating the effects of climate change on livestock
Important user of natural resources: 70-75% of fresh water resources40% of land area25-30% of greenhouse gas emissions
Contributions to Greenhouse Gas Emissions
Developing country
agriculture & deforestation
21%
Developing country
other sources
15%
Industrialized countries
64%
Agriculture based countriesMainly SS-Africa
417 million rural people
Transforming countriesMainly Asia, MENA
2.2 billion rural people
Urbanized countriesMainly Latin America
255 million rural people
Agr
icul
ture
’s s
hare
in g
row
th 1
990-
2005
Rural poor/total poor, 2002
Three Worlds of Agriculture
0 100%
80%
0
50%
20%
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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
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
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
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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
Prevent and control the ‘lingering’ zoonotic diseases whih mostly affect the poor
Further strengthen veterinary public health services/mechanisms.
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
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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
THANK YOU