gisindia

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Green Accounting for Indian States and Union Territories Project ( “GAISP” ) IUCN Donors’ Meeting Gland, Switzerland 6th September 2005 Pavan Sukhdev Director, GAISP Eco-Systems, Markets and Poverty Breaking the Vicious Cycle : A Case Study from India

The ‘Vicious Cycle’ of Poverty and Environmental Degradation : 

The ‘Vicious Cycle’ of Poverty and Environmental Degradation Low assets ? low income ? no surpluses ? consuming natural capital in which they are stake-holders ? even lower assets The Backdrop : lack of markets in public goods / externalities pricing … eco-system conservation benefits all, but hits the resident poor with disproportional opportunity costs of conservation .. The Challenge : finding alternative, sustainable, local, income models such that residents can earn a return on conservation .. The Goal : converting the accidental custodianship of forest-dwelling poor into purposeful stewardship … the ‘win-win’ solution

A Case Study from India : 

A Case Study from India Nilgiris Biosphere Reserve in the Western Ghats global biodiversity hot-spot , and home to the ancient Toda tribe and later Badaga tribals …

The Vicious Cycle : An Example from the Nilgiri Biosphere Reserve : 

The Vicious Cycle : An Example from the Nilgiri Biosphere Reserve ‘Shola’ (Reserve Forest Land) Tea Estate ( Revenue Land ) land ‘patta’ allocated by local corporator from ‘Revenue Land’ clear felling by Tribals lease to local farmer (INR 4,000- p.a. per acre) cash crops or grain seasonal employment to Tribals (INR 50 p.d.) land goes fallow… next ‘patta’ allocated .. Tribal Family earns ~ INR 25 K p.ha.… & Natural Capital Lost = ?

The Capital Cost of this ‘Vicious Cycle’ is Staggering : 

The Capital Cost of this ‘Vicious Cycle’ is Staggering Sources : * from GAISP, Monograph 1, Jan 05 ¬ from GAISP, work in progress ‘Shola’ remnant ‘Shola’ cleared last year ‘Shola’ cleared two years ago

Four Components of the Problem … Nilgiris example : 

Four Components of the Problem … Nilgiris example unclear ownership rights no pricing transfer mechanism ? regulation ? Access Rights or Property Ownership ? Gov’t Ministry : MoEF or MoTA ? Original Todas only ? or Todas & Badagas ? And Tamil immigrants ? “GAISP” (2004) is the first effort to provide workable State-level accounting prices in India … Terminating subsidized alernatives (Tea .. zero holding cost) ? MoEF-driven afforestation, or “EGS” tranche ? Eligibility criteria ? (both existing and future solutions) ? Migration arbitrage control ? Enforcement agency : FD, Police, GP ?

Lessons from PEP …. Seeing the Poor as Part of the Solution : 

Lessons from PEP …. Seeing the Poor as Part of the Solution “PEP’s work since 2001 has identified three broad lessons : The environmental quality of growth matters to poor people. The poor depend more immediately on clean water, fertile soils, etc, than other groups. Ignoring the environmental sustainability of growth – even if it reaps short-run gains – can undermine growth itself and its effectiveness in reducing poverty. Environmental management cannot be treated separately from other development concerns. Improving environmental management in ways that benefit poor people requires policy and institutional changes that cut across sectors. These lie mostly outside the control of environmental institutions. Poor people must be seen as part of the solution rather than part of the problem. If environmental management is to contribute to sustainable growth and poverty reduction, it should reflect the priorities of the poor.” "Certain environmental services, e.g. watershed protection, management of landscape beauty, and carbon sequestration, can be supplied competitively by poor groups and rural communities – given the labour- and land-intensive nature of such services."

Sustainable Income Models for Poverty Alleviation in Nilgiri Biosphere Reserve : 

Sustainable Income Models for Poverty Alleviation in Nilgiri Biosphere Reserve degraded local land employable local labour access to capital : Govt of India (carved out of “EGS” scheme INR 240 Bio, 100 days @ Min Wage) Institutional & Philanthropic Microfinance Local income models … Eco-restoration Eco-tourism … earn a tribal family 5%-8% on conserved natural capital

Eco-Restoration is a viable income model : 

Eco-Restoration is a viable income model Rental of land @ INR 5,000 per acre OR… purchase @ INR 100 K per acre Removal of unharvestable Tea @ INR 10,000 per acre OR… De-weeding ( + +) Pitting, Planting, Watering, Weeding @ INR 65 per day (Tea Garden Rates ) Resident watchman wages @ INR 50 - 75 per day ( 1 x through the year ) Nursery Maintenance & Sapling preparation ( 1 x through the year) Tribal harvesting of medicinal plants & herbs, floriculture, and nursery sales 1 Hectare afforested with endemics @ low cost , and 3 tribals employed

Cultural / Eco-Tourism is a another sustainable income opportunity .. : 

Cultural / Eco-Tourism is a another sustainable income opportunity .. The Todas have a unique & complex ancient culture, a separate pantheon, an evolved mythology … a fascinating anthropological subject Their unique, eco-friendly huts are a tourist experience Their land (elevation 6,000-7,000 ft) is among India’s most beautiful spots Income Model : Five Huts “for tourists” maintained by one Toda village “Fair Trade” share of Tourist booking Incomes to the Toda Tribals

The Key Point…. : 

The Key Point….

The Key Point…. : 

The Key Point…. … is to understand their aspirations !

Green Accounting Project for India - GAISP : 

Green Accounting Project for India - GAISP GAISP Objectives (‘Phase 1’) Design a framework for Green Accounting in India which reflects the latest research and is comprehensive, unbiased, top-down, practical and policy-relevant enough to answer to the question : “Is this State growing in a sustainable manner ?” Calculate one full set of adjustments to GSDP for all states across all key unaccounted wealth components, and thus kick-start an annual process of producing Adjusted GSDP Accounts Prepare the ground for ‘Phase 2’ …. GAISP Mission provide a sustainability framework for State Governments in India so they can “measure what they manage” and make informed trade-offs while evaluating policy choices

Green Accounting Project for India - GAISP : 

Green Accounting Project for India - GAISP Interim Reports (‘Phase 1’) Eight monographs reflecting the Values of :- Timber, Carbon, Fuelwood, & Non-Timber Forest Products (Jan ’05) Agricultural Cropland and Pasture Land (Sep ’05) Sub-Soil Assets Eco-Tourism & Biodiversity (Oct ’05) Educational Capital Formation Investments in Health and Pollution Control Ecological Services of India’s Forests : water augmentation, soil retention, flood prevention (Dec ’05) Freshwater Resources Final Report : Green Accounting for Indian States and Union Territories