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