In developing countries and in parts of the developed world, population density and population increase (this latter due to high growth rates and declining infant mortality) have outstripped improvements in agricultural and industrial productivity, resulting in general impoverishment. Hundreds of millions of human beings are caught up in the poverty trap today. In this connection, the Council on Environmental Quality's "Global 200011 report to the President of the United States of America on the state of the world in the year 2000 contains some disturbing projections (Council on Environmental Quality, US Department of State, 1980):
- If current trends continue, by the year 2000 the world will be even more overcrowded and polluted, less ecologically stable and more prone to disturbances.
- Unless there are some revolutionary technological advances, access to food and the other necessities of life is unlikely to improve for hundreds of millions of desperately poor people (Harrison, 1983).
- The population will grow by more than 100 million a year, 90 percent of this in the developing countries.
- Per caput gross national product will remain low and the gulf between rich and poor countries will widen.
- During the eighties up to 1990, world oil production will reach the limits of estimated geological capacity. Since prices are likely to rise further, many developing countries will have increasing difficulty in meeting their energy requirements.
- The shortage of fuel wood in many parts of the Third World is becoming critical. (Montalambert and Clement, 1983).
- Water is likely to grow even more scarce in many regions. Almost everywhere in the world exploitation of new water supplies will become more expensive.
- The world's forests will continue to shrink over the next twenty years as demand for fuel wood and forest products increases.
- The quality of arable land will deteriorate, due to erosion, organic matter loss, desertification, salinity, alkalinity and waterlogging.
The picture painted by the report of the Council on Environmental Quality and by the Department of State has been confirmed by a number of FAO studies; it is clear that past and present approaches are little more than palliatives and provide no real solution to the crisis. Humanity confronts two closely intertwined problems: hunger, and the destruction of renewable natural resources (Hidalgo, 1981). We are caught in an increasingly vicious circle: food is urgently needed by a growing population which is forced into overtaxing the earth and exhausting its forest, soil and water resources in order to satisfy its need for food.
The overexploitation of natural resources is a problem of a different kind. Whilst it may be a consequence of seeking profits or pursuing large scale production, it is often caused by the population trying to satisfy its minimum requirements (FAO/WFP, 1984).
Where this is the case, solutions will depend on a combination of technical and economic, social, political and other factors (FAO/WFP, 1984):
- The peasant is unable (e.g. for institutional or structural reasons) to farm less fragile land.
- Yields per hectare are extremely poor and can fall even lower in bad years (e.g. drought).
- Little or no investment is possible; access to credit is not.
- The peasant knows his environment and the traditional techniques appropriate to a less pressured situation, but he lacks incentive to adopt new and unfamiliar technologies.
- Rural producers are attached to traditions, habits, and group rules which can stand in the way of change.
These are all aspects which have to be faced and resolved in a determined, not to say "radical" manner, if it is wished to avoid serious difficulties for all mankind,and especially the developing countries and the poorest countries in particular.
Forestry legislation in developing countries has developed in line with the renewable natural resources situation.
Table 1.1 is an attempt to show how plans and laws have developed. One stage is not necessarily an advance on another - it is simply what has occurred to a greater or lesser extent in many developing countries.
According to du Saussay's analysis (1983), which corresponds to that shown in the table, forestry legislation, like mining, is initially oriented towards logging and export (especially in the tropics). Sooner or later this results in impoverishment of the forest, so the law is amended to regulate logging in accordance with sustained yield forest management plans. Some countries tried coercive legislation, but this was not successful and led to even greater problems (Botero, 1984) (Republic of Venezuela, 1976) (Yachkashi, 1976) (Diaz, 1976).
Du Saussay's analysis goes on to show that the income generated by forest exploitation is sucked into the overall budget without being used to provide a solid base for forest development: special forest funds, therefore, have been set up to ensure that income is reinvested in forest plantations, protection and management. Finally, mounting concern over natural resources and rural communities has been met by allocating funds to integrated rural development programmes.
Nonetheless, forest legislation and plans drawn up in response to the seriousness and urgency of the renewable natural resources situation have often ended up as "dead letters" - these are described in Table 1.1 as "pure intent". However, concern does not necessarily lead to substantial cash injections (Bochet, 1983) whilst satisfactory results may not materialize due to inadequate funds, technical problems and public apathy (Diaz, 1976). Furthermore, the legal texts are on occasions nothing more than statements of intent (Bombin, 1975). In African countries, forestry services have in the past done much good work on behalf of national communities and large towns, but little for local communities living in the heart or at the edge of the forest (Hamza, 1978).
During the 1960's and the first half of the 1970's, many countries passed legislation to encourage large scale reforestation for industrial purposes (Sanger et al, 1977) (Chile Forestal, 1982). These large scale plantations succeeded as expected, although from the mid-1970's onwards both national and international organizations have been putting more emphasis on the production of forest goods and services by and for the use of poor rural communities (Sanger, et al, 1971) (Spears, 1978). The idea is spreading that more direct benefits should accrue to rural development by encouraging small scale plantations of versatile trees at community level, and employing systems which allow multiple use of scarce land (Burley, 1982).
| SITUATION | TYPE OF LEGISLATION OR PLAN | USE TO WHICH RESOURCES PUT |
| 1. Relative abundance of forests, forest land and agricultural land | 1. Extractive and permissive forest legislation, geared to encouraging export and/or domestic market where significant | Financing the national budget. |
| 2. Deterioration of natural forests, decreasing volume and value of species | 1. Coercive forest legislation with extensive controls over
the extraction of forest products and the use of resources. a) intentional b) effective |
The limited income generated goes to finance the national budget. |
| 2. Forest legislation regulating logging and laying down
management norms for ensuring sustained yields. a) intentional b) effective |
Financing the national budget. |
|
| 3. Deterioration of natural forests, soil degradation through destructive farming practices and deforestation, forest industry supply problems and water shortages | 1. Forest legislation and/or plans for promoting
reforestation for industrial purposes on deforested and degraded land, establishment
of special funds, and incentives. a) intentional b) effective |
Special funds for channeling the resources generated back into the sector and reallocation from other sectors. |
| 4. Deterioration of natural forests, soil degradation, food and fuelwood supply problems in the countryside, forest industry supply problems, and water shortages | 1. Legislation and/or plans - for developing soil, water,
forest conservation and integrated rural development programmes with community involvement
a) intentional b) effective - locally c) effective - nationally |
Special funds channelizing resources back into - the sector and reallocation of external or internal funds to support community development. |
Laws and other methods of promoting the development of fast-growing plantations have also been adapted or backstopped to enhance natural forest protection and management or to develop rural communities. In Chile, for example, Decree 701 on the development of forest plantations was accompanied by a regulation laying down management norms for natural forests. It has been used to identify solutions to the specific problems posed by small communities: for example, by helping a highland community to reclaim land through planting fodder species, or by seeking a silvo-pastoral solution to the rehabilitation of small holdings - despite the fact that the Decree itself is basically concerned with the promotion of industrial plantations (Chile Forestal, 1982) (Republic of Chile, 1980).
That rural communities are now deriving more benefit from legislation, plans and projects is largely due to the various analyses made by international agencies and individual countries on the outlook for the world's natural resources.
The future of renewable natural resources and of poor people in developing countries can only be assured by working in and with rural communities.
The FAO programme on the contribution of forestry to community development is a response to the natural resource problem and the slow reactions of countries to it; its object is to encourage and support forestry activities aiding the rural population to meet basic needs (food, fuel, fodder and building materials), thus contributing to raising their income and improving their welfare and the quality of their environment (FAO/SIDA, 1980). Since the mid-1970's, financial institutions such as the World Bank and the Inter-American Development Bank have understood that industrial forestry projects have tended to conflict with both development policies and countries' own priorities, and have accordingly retargeted their activities towards projects with a component of rural community involvement (Spears, 1978). The new strategy involves addressing the problems posed by the conservation of renewable natural resources as an integrated whole, considering the rural community not simply as a source of labour, but as active participants in planning, deciding on and implementing action in their interest and in that of the community (FAO, 1978) (Spears, 1978) (Botero, 1984) (Bochet, 1983) (Castanos, 1978).
This new strategy allows man an important role in the rational exploitation of renewable natural resources and its adoption has meant that planners and specialists will require guidelines if they are to tackle the problems posed by harmonious rural development with any degree of success. In mountain watersheds for example, development is out of the question without the effective participation of the population directly concerned (Bochet, 1983).
Community involvement is not the only important component in this new strategy;
an integrated approach is also needed from the multiple land use angle. Generally
speaking, erosion and conservation problems (with the exception of flat arid
areas such as the Sahel) are typically found in hills and mountains where man
cultivates the land, rears livestock and logs trees; consequently, both the
cause of degradation and its solution are to be found in cropping, animal production
and forestry. Natural environmental factors and the social context of soil conservation
must also be taken into account (FAO/WFP, 1984). Sectors cannot be considered
in isolation in arid areas either, and shifting cultivation, animal husbandry,
local traditions and social aspects should all figure in development projects
(Von Maydell, 1976). Rural forestry plans should as far as possible be integrated
into agricultural or rural development plans and infrastructural plans such
as those for road building, water supply, health centres, seed improvement,
fertilizer use, access to credit and agricultural extension services. Greater
priority should be given to plans and projects of this type than to longer term
reforestation or soil conservation plans. In other words, forestry projects
are more likely to be successful where an integrated approach is taken to rural
development, where attempts are made to satisfy requirements, and where forestry
activities are seen as part of an overall development project (Spears, 1978).
This,
in essence, is the new strategy for natural resources.
What is actually happening is that the world is returning to older models of economic development according to which progress was impossible without developing the agricultural sector and natural resources generally. Models such as that proposed by Lewis (1954), with their belief that since developing countries have an unlimited supply of manpower it should, as a form of capital, be employed or invested in development, are now returning to favour. There are quite a number of watersheds where peasant families have unemployed time on their hands which could be used for productive purposes (Flinta, 1983). The new strategy calls for new initiatives, energy and determination to be deployed worldwide to meet the requirements of rural communities, putting the available manpower to use in restoring the earth's capacity to sustain life. (Council on Environmental Quality and US Department of State, 1980).
Applying this new rural community-centred strategy for the development of renewable natural resources does, however, call for some kind of initial stimulus proportionate to the magnitude of the problem to make a start in overcoming difficulties and ensure a lasting solution. This "big push" according to the Rosentein Rodan theory (1961), should be sufficient to halt the inertia of underdevelopment in a community.
Rural communities have a number of problems which have to be faced if peasants are to become involved in the conservation and rehabilitation of natural resources, and individually and collectively undertake rationally productive activities for the benefit of both. (Botero, 1979) (Larrobla, 1983) (FAO/WFP, 1984) (FAO/SIDA, 1980) (Michaelsen, 1983) (Fernandez, 1983) (Gregerson, 1978) :
- Peasants lack the capital to develop their holdings along natural resource conservation lines.
- Peasants lack the capital to tide them over temporary drops in income. For example, the time they spend on a conservation action may prevent them obtaining paid work - after all, bench terracing can take up to 570 days/hectare (de Camino, 1978). Alternatively, the drop in income may be due to the time it takes an investment, such as a forest plantation, to mature.
- Peasants may be asked, or they may offer on their own initiative, to help in jobs that will benefit the community, such as school- or road building, although their time should not be monopolised to the extent that they are unable to undertake other productive or paid work - a luxury they could not afford.
- Peasants cannot be asked to provide unpaid labour on works such as a sediment storage dyke across a channel, which will not benefit them directly. Such works benefit the inhabitants further down the watershed.
- Peasants normally act on their own and lack organization, thus hindering the introduction of community-centred actions.
- Peasants may not realize the benefits to be derived from a conservation and rural development project.
- Peasants, due to social, cultural or economic factors, may simply not wish to carry out a particular task - this has occurred in some communities in the Peruvian and Bolivian highlands who see terrace construction as an outmoded solution and have turned their backs on it.
In order to overcome these and other problems, an adequate incentive scheme must be
established if programmes for land rehabilitation, watershed management, and the rational
exploitation of forest soils are to be carried out (FAO, 1980). This is
a logical prerequisite in communities where financing is normally the critical element in
forest projects, in the silvicultural components of rural development projects and in
agricultural and livestock projects with infrastructural components geared to
production/conservation (Fernandez, 1983).
Generally speaking, where society attaches a greater value to a particular activity than private individuals do, the government, which theoretically represents the interests of this society, has to try and encourage individuals to undertake the desired actions (Gregersen, 1978).
A number of fairly definite conclusions emerge from the above:
- Renewable natural resources are exposed to increasing pressures which threaten to prevent millions of human beings from leading a decent life, whilst the outlook for the future can only be described as critical.
- National planning and legislation and the approaches of the international bodies have not brought about rural community development on anything like the scale which world problems require.
- A new strategy for the rehabilitation and conservation of natural resources clearly needs to be adopted with the active involvement of rural communities in planning and the periodic evaluation of results.
- In order to encourage the involvement of rural communities in rural development projects, a certain number of obstacles have to be overcome. Applying incentives, the main theme of this Guide, is one way to do this.
The Guide's objectives are as follows:
- Describe current and potential problems affecting renewable natural resources and the need for a new strategy geared to community involvement.
- Define a series of basic concepts compatible with the need to work with multi-disciplinary teams in rural development projects. Special emphasis needs to be given to defining what an incentive is.
- Describe and discuss the reasons for and the consequences of degradation in mountain watersheds and other areas where natural resources are being destroyed by local communities.
- Describe and analyse the impact of land rehabilitation, conservation and silvicultural efforts in fostering individual, family, community and social development.
- Classify and define existing incentives designed to encourage individual and community involvement in plans and projects for the development, conservation and rehabilitation of natural resources.
- Define the basic elements for planning an incentive scheme to stimulate community involvement and serve as a guide for policy makers and planners.
- Provide practical examples of incentives at work in conservation plans and projects.
It may also be helpful to say what this Guide is not. There are all sorts of manuals and technical and legal texts providing detailed treatment of basic aspects which this Guide does not attempt to address:
- No advice is given on drawing up conservation plans or projects for mountain areas, or for the protection of watersheds. Specific texts already exist on these subjects, such as FAO Conservation Guide No. 8 (Bochet, 1983) whilst another guide on economic analysis in watershed management is in preparation.
- Nor is any attempt made to identify the best community-related use for upland natural resources.
- No attempt is made to list legal uses of incentives to promote rural development activities.
- This Guide is not a manual for the economic and financial analysis of integrated rural development projects. The theory and techniques for such analysis are contained in FAO Forestry Paper No. 17. (Gregersen, Contreras, 1979).
This Guide will approach subjects by way of examples, backed up by explanations where this will clarify its main theme - "incentives".
The Guide consists of five Chapters, accompanied by a Bibliography and Appendices on important aspects.
Chapter 1 describes the Guide's scope and contents, with reference to the need to promote watershed conservation plans and projects in the light of the alarming trends shown by world population and natural resources, and to stimulate community involvement in these plans and projects by means of incentives. A brief outline is also given of the contents of each chapter.
Chapter 2 seeks to formulate a set of definitions on resource conservation, natural resource planning and economics so as to avoid confusion and provide a common language for multi-disciplinary teams engaged in mountain watershed conservation projects and plans.
Chapter 3 analyses the problems affecting mountain watersheds and other critical areas and shows how the benefits to be derived from the proper land and water use and management justify the use of incentives.
Chapter 4 describes the various types of incentives and discusses the most important variables with a bearing on their impact. Direct incentives are classified as being in cash, in kind, or mixed and indirect ones as fiscal or social.
Chapter 5 analyses some of the elements involved in planning incentives at the country and individual project level and sets out a strategy for establishing incentive programmes.
The Appendices contain three case studies of conservation and reforestation plans and projects, two national and one local. Examples of the effects of incentives and a table showing their application in various circumstances is also provided.
