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 High Rivalry Pure Public Goods Poverty reduction Border quarantine Food safety inspection Protection against contagious diseases Animal health intelligence Disease data systems Common Pool Goods Communal rangelands Water (volume and quality) Air quality (including protection against climate change) Animal genetic resources and other sources of biodiversity Club Goods Standards and certification systems Face-to-face advisory services Collective action in disease (tick dips) control Private Goods On-farm production, processing, and distribution (quality standards) Most clinical veterinary and breeding services Most input supplies (feed, seed, etc.)

FundingResponsibility For Imp. Oversight Pure Public Goods Veterinary health  Border quarantine Public sector Mainly national Veterinary Services (VS)  Surveillance of main contagious diseases Public sectorPreferably 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 sectorPreferably in subcontract with private operators Mainly national VS with international support  Vaccination Public/private partnership Mostly private sectorMainly national VS with international support  Vaccine development Public/private partnership Mostly private sectorNational or regional public institutions  Disease data systems Public/private partnership Mainly public sectorMainly 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 Contribution to the MDG

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 ….. Donor Support to Agriculture

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 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 14

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 day Global Urban poor 287 mill. South Asia rural 407 mill. Sub-Saharan Africa rural 229 mill. East Asia rural 218 mill. LAC rural 27 mill. ECA rural 5 mill. MENA rural 5 mill. Poverty Reduction

18 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 resources  40% of land area  25-30% of greenhouse gas emissions Contributions to Greenhouse Gas Emissions Developing country agriculture & deforestation 21% Developing country other sources 15% Industrialized countries 64%

Agriculture based countries Mainly SS-Africa 417 million rural people Transforming countries Mainly Asia, MENA 2.2 billion rural people Urbanized countries Mainly Latin America 255 million rural people Agriculture’s share in growth Rural poor/total poor, 2002 Three Worlds of Agriculture 0100% 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 23

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 26

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

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