BRAZIL – THE SOYBEAN SECTOR IN THE BR-163 ROAD INFLUENCE AREA Integrated Assessment and Planning for Sustainable Development Integrated Assessment and Planning for Sustainable Development Second Review Meeting Geneva, September 21-22, 2005

Background (1) Soybean sector in the context of Amazon Sustainable Development Plan (PAS). –New investment policy for the Amazon region, by the new federal government; –Soybean export investment interests, major economic changes in the region. Original focus

Background (2) Original Focus - Objectives Objectives: –Addressing sustainable agriculture, environmental management, poverty alleviation, and sustainable trade promotion. –Assessing the planning procedural and substantive aspects of the plan that take into account social, economic and environmental linkages and causalities. –Introducing legitimate participatory methods in the planning process and decision-making that involve all relevant stakeholders.

Background (3) New Focus Soybean sector in the BR-163 influence area –Creation of GTI-BR163 -Interministerial Group to formulate sustainable development plan –Clear political interest (government and private sector -PPP) –Urgency

Background (4) New Focus - Objectives Objectives: –Assess the economic, social and environmental impacts of the pavement of the BR163 highway in its influence area –Assess the soybean sector as the driving force of the economy in the region –Draw relevant policy recommendations Why? –More Focused –Feasible

Background (5) Key policy scenarios Competitive globalisation scenario –Foster competitive integration in the globalised market –Strong governance Distributivist scenario –Regulatory and incentive policies addressing social inequalities –Strong governance Critical scenario –No policies to address reduction of negative impacts –Weak governance

Background (6) Productive sector Soybean sector for the scenario 1 - competitive globalisation –Main beneficiary of the pavement and other infrastructure investments in the region; –High international commodity demand; – Increasing competitiveness - technical capability of occupying degraded pastureland.

Background (7) Key Methods Review of existing aproaches and methods to address social, economic and environmental impacts - substantive aspects –New geography theoretical approach to examine territorial dynamics in the Amazon region (Becker) –Linkages of land grabbing, BR163 and agribusiness (Oliveira, Castro) –Linkages between deforestation and the BR3 highway (Nepstad, Fearnside) Stakeholders mapping - planning process aspects.

Background (8) Implementation Process First National Workshop to launch the project and discuss key issues with stakeholders Install the Steering Committee - MoE, MoNI, CDS, UNEP/Brazil February’s Mid Term Review inputs Methodological discussion - review priority areas, tools. Terms of Reference and Consultant selection Implementation

Assessment framework Scenario 1 - Competitive Globalisation Scenario 2 - Distributivist / strong govern. Scenario 3 - Critical / weak governance Transf. Vector 1 - Soybean, livestock Production expansion New potential market Reduction illegal logging New land settlements Local productive arrangements APL Secondary roads Intensify land grabbing Threats to social programmes Transf. Vector 2 - Urbanise conditions of life Bettering urban services Technology and professional development Strengthen services to smallholders: transport,credit, information Adaptive technologies Appropriation of local power by business interests Increase migration, poverty and crime. Transf. Vector 3 - Effective environmental restrictions IBAMA/INCRA reforms Env. Norms/effective surveillance, monitoring New conservation units created IBAMA/INCRA reforms Norms for expansion - buffer zone, environ. Projects Create extractivist / conservation units Abortion of IBAMA/INCRA reforms No regulation of expansion Degradation of Conservation Units

Economic, Social, and Environmental effects Competitive Globalisation Scenario Distributive Scenario Critical Scenario Private sector Local government Winner Temporary Winner Rural, traditional populations Winner Loser Environment, Federal, State government Winner Loser

Recommendations (1) - Policy making process Gain IAP Project recognition as a valid exercise to help the improvement of the Sustainable BR163 planning process Call attention to the institutional reforms needed for the success of the plan Practical measures from the Sustainable BR163 planners to adopt the IAP Project recommendations Establish transparent decision-making process

Recommendations (2) - Policy making process Improve indigenous peoples and local communities participation in public consultations Improve coordination of the implementation and monitoring process, introducing IA as a regular method of assessment and monitoring tool

Enabling conditions 2nd National Workshop - call all key stakeholders to discuss and validate the recommendations (general guidelines) - National Project High level talks to include the recommendation in the actual process of GTI members planning. Initiate complementary study to select key social, economic and environmental indicators and elaborate a monitoring system, using the assessment framework proposed - Project + When - this year

Lessons learned (1) A. Selection of the planning process - not too many and complex issues, with too many interministerial partnerships. Problem of focus B. Good understanding of the IAP methodology, especially by the implementing institution, is crucial: previous exercise in the choice of tools, detailed procedures and approaches are key aspect to be observed before the implementation. C. Selection of implementing institutions - clear compromise

Lessons learned (2) D. Academic excelency of the consultants can be innovative in tools and approaches, and produce good results E. F