1. Summary National Consultation Workshop on Poverty – Environment Nexus in Vientiane Capital on 1-2/08/2005 The Result of Research Linkages between Environment and Poverty Eradication By: Mr. Khampadith KHAMMOUNHEUANG Director of Environmental Training Center Environment research institute, PEN2 Coordinator Environment research institute, PEN2 Coordinator

2. Outline I. Summary of the five case study results 1.1 The interaction between environment and poverty found in the case studies 1.2 The foundation contribution of the environment to the poverty eradication in six target districts 1.3 The environment & social problems, causes, and task forces faced with the poverty eradication process in six target districts. II.Conclusion, Recommendation, Suggestions

3. Case study on Non-timber forest Product & poverty Case study on Roads & poverty Case study on UXO & poverty Case study on Water supply, Sanitation & Poverty Output 1: Guided policies on sustainable and efficient use of natural resources to the NGPES process Output 2: Guided policies on the NGPES process to be harmonized to the environment management and cultural development Big picture of research

4. I. Summary of five Cases Study Results 1.1 The Basic Interaction between Environment and Poverty found from five case studies Environment is living needs, living sustention of local people and other organism. Environment is living needs, living sustention of local people and other organism.

5. Five basic living needs Food Land for Habitat & Agriculture Agriculture Energy Air Quality DrinkingWater Living Need for local people from Environment

6. Environment represents natural products, which contribute a substantial share of a household’s food consumption, cash income and other basic needs of local people: Material, construction equipment, goods (NTFPs),Material, construction equipment, goods (NTFPs), “foundation of direct and indirect income resource of local people"

7. Subsistence Subsistence needs needs Constructionequipment Energysources Medicinalplants Material Goods Incomesources Subsistence needs for local people from Environment

8. future generations Environment represents future generations and robust natural ecology for the local people: Ecological balance: to ensure a sustainable food chain (food web), energy chain, hydrology cycle (water quality, quantity), soil quality;Ecological balance: to ensure a sustainable food chain (food web), energy chain, hydrology cycle (water quality, quantity), soil quality; Welfare services ;Welfare services ; Basic science-technology knowledge resource;Basic science-technology knowledge resource; Basic social evolution:culture, tradition, traditional -local knowledge.Basic social evolution: culture, tradition, traditional -local knowledge.

9. Environment ensure the balance of natural ecology

10. The study concluded that there are both positive and negative interactions between the environment & poverty. They are interrelated and should be addressed jointly. People depend on the services of the environment (food, drinking water, O 2, land and etc..), for their basic living needs, and are negatively impacted by pollution and contamination from chemical, hazardous waste etc...

11. In an ideal state of natural balance, especially balance between the activities of mankind and nature’s carrying capacity, nature can supply the basic subsistence needs of all local people and can ensure the well-being of future generations and the surrounding ecology. In an ideal state of natural balance, especially balance between the activities of mankind and nature’s carrying capacity, nature can supply the basic subsistence needs of all local people and can ensure the well-being of future generations and the surrounding ecology. “Nature always changes, adapts, evolves, but always reaches a sustainable balance”

12. 2.2 The foundation contribution of the Environment to the Poverty Eradication in six target districts (1) Direct benefit: provision of the living, sustention, subsistenceneedsto the surrounding poor people such as : food, drinking water, O 2, energy sources (esp. fire wood), medicine, construction material, natural product: NTFPs, biodiversities for foods securities and public goods selling in the local markets. (1) Direct benefit: provision of the living, sustention, subsistence needs to the surrounding poor people such as : food, drinking water, O 2, energy sources (esp. fire wood), medicine, construction material, natural product: NTFPs, biodiversities for foods securities and public goods selling in the local markets. (2) Indirect benefit: well being, local (agricultural activities) production sustention (soil quality, water quality,)

13. Information resource: national strategy, biology 2004 from Foppes and Ketphanh 2000a. Family income from non-timber forest products (NTFPs) (3). Basic income from non-timber forest products: wildlife, fish, cardomom, rattan, bamboo sent to local market (3). Basic income from non-timber forest products: wildlife, fish, cardomom, rattan, bamboo sent to local market Family income

14. Living needs Living needs Family income Family income Products from the natural environment Agriculture-livestock products. Direct contribution : timber, non-timber forest product, construction, medicine, food, and other. Indirect contribution: Water resources, quality of land, air, natural resources, disaster mitigation, and other. Environment contribute in poverty eradication

15. The results of five case studies shown that the poor people tend to have: Insufficient drinking water supplied from a clean and reliable water supply system, e.g. in Phongsaly district the water supply in the dry season is insufficient, but in the rainy season is high sediment loads impair the water qualityInsufficient drinking water supplied from a clean and reliable water supply system, e.g. in Phongsaly district the water supply in the dry season is insufficient, but in the rainy season is high sediment loads impair the water quality Poor sanitation: most people have toilets, but because of insufficient water supply for sanitation, most people do not use these facilities.Poor sanitation: most people have toilets, but because of insufficient water supply for sanitation, most people do not use these facilities. 1.3 The environment & social issues, causes and task forces faced in the poverty eradication process in six target districts.

16. Higher risk of disease (lack of water and sanitation, more frequent exposure to harmful smoke from solid fuel burning); Poor health (less access to medical services and having to hire out labor); Income losses from illness (informal sector; self-employed; etc);Higher risk of disease (lack of water and sanitation, more frequent exposure to harmful smoke from solid fuel burning); Poor health (less access to medical services and having to hire out labor); Income losses from illness (informal sector; self-employed; etc); Forest degradation in some areas, loss of natural potential for direct contribution (food, drinking water, NTFPs, biodiversity, etc.) and indirect contribution(well being service, water quality, soil quality for agriculture, etc.),Forest degradation in some areas, loss of natural potential for direct contribution (food, drinking water, NTFPs, biodiversity, etc.) and indirect contribution (well being service, water quality, soil quality for agriculture, etc.),

17. The poor people: are more dependent on natural resources;are more dependent on natural resources; have less arable land (paddy field & swidden)have less arable land (paddy field & swidden) have fewer assets (savings) to cope with difficult times;have fewer assets (savings) to cope with difficult times; have less education and skills for alternative income generation, and are often more economically isolated (e.g. less road access);have less education and skills for alternative income generation, and are often more economically isolated (e.g. less road access); lack technical knowledge.lack technical knowledge.

18. The poor people: are more affected by natural resource losses (agricultural land degradation, forest degradation and NTFP losses) and are more vulnerable to shocks (drought, flooding etc); are more affected by natural resource losses (agricultural land degradation, forest degradation and NTFP losses) and are more vulnerable to shocks (drought, flooding etc); women work harder than men; women work harder than men; have less financial resources to pay for quality health services; have less financial resources to pay for quality health services; have less resources for averting behavior; have less resources for averting behavior; have fewer livestock associated with livestock disease; have fewer livestock associated with livestock disease;

19. The main causes to the Environment -Poverty problem Most of the population in the six target districts lives in rural areas, in very small communities and in remote areas far from each other.Most of the population in the six target districts lives in rural areas, in very small communities and in remote areas far from each other. They practice slash and burn agriculture, traditional agriculture and livestock husbandry, fishing and harvest NTFPs for daily subsistence needs.They practice slash and burn agriculture, traditional agriculture and livestock husbandry, fishing and harvest NTFPs for daily subsistence needs. Infrastructure development such as : roads, access to markets, education facilities, health care, and production promotion are difficult, limited and expensive.Infrastructure development such as : roads, access to markets, education facilities, health care, and production promotion are difficult, limited and expensive. UXO problem, particularly in the Kaleum and Phouvong district.UXO problem, particularly in the Kaleum and Phouvong district.

20. Lack of appropriate technical support from relevant sectors to transform natural, semi-natural production to agriculture-livestock or market oriented production. Lack of technical knowledge and market information;Lack of appropriate technical support from relevant sectors to transform natural, semi-natural production to agriculture-livestock or market oriented production. Lack of technical knowledge and market information; Lack of appropriate mechanism for NTFP and biodiversity use management: Lack of processing to add value, so NTFPs are sold at a very low price to the sub-regional markets; hence, NTFP traders have incentives to overexploit the resources beyond the maximum sustainable yields.Lack of appropriate mechanism for NTFP and biodiversity use management: Lack of processing to add value, so NTFPs are sold at a very low price to the sub-regional markets; hence, NTFP traders have incentives to overexploit the resources beyond the maximum sustainable yields. Pressure from sub-regional markets.Pressure from sub-regional markets.

21. The main task forces of environment and social problems The poverty without other appropriate alternatives for their livelihoodsThe poverty without other appropriate alternatives for their livelihoods Poor management and subvention of relevant sectorsPoor management and subvention of relevant sectors

22. Target districts Environment IndicatorsSocial indicatorsPoverty indicators Target districts Total Land area (ha.) Forest Cover (%) Paddy field (ha) Deforestation rate (%) (average annualha change 1990-2000) Total villages Total population Total households Poverty rank Total poor household (%) Total poor villages (%) Household with no paddy field (%) Total villages with no electricity (%) Total villages with no school (%) Total villages with no health care (%) Total Villages with no roads access(%) Market access Total villages with no safe watersupply (% ) Villages with no an improvedsanitation facilities (%) Kaleum 369,750901820.036210,73218102961003210040.511536.5limited93.197 Phouvong 351,600831,5040.02528,322186939210023100608096limited92100 Namor 397,000234,9730.148529,67350823855861894.131.353.447.5good8577 Nhot Ou 331,800702,1910.078626,841432839551001477.816.13665.5 less good100 Lamam 191,500822,9520.124426,861404535 36.472731.9good5773 Phongsaly 2314008129730.0696244874518601273.9161350good3977

23. Linkages between forest (NTFPs) and poverty

24. Deforestation

25. Linkages between road supply and poverty

26. Linkages between water supply and poverty

27. Linkages between sanitation and poverty

28. Linkages between Environment, Social and Poverty indicators Target districts Forest Cover (%) Total poor household (%) Total villages with school (%) Household with paddy field (%) Total villages with electricity (%) Total villages with health care (%) Total Villages with roads access (%) Total villages with safe water supply (% ) Villages with an improved sanitation facilities (%) Market access Kaleum9096.450.5681565.56.93 limited Phouvong8392.14077120481 Limited Namor235568.782646.652.51523 good Nhot Ou7054.983.98636434.561 less good Lamam8234.5936563.67372.14327 good Phongsaly816084882787506123 good

29. Environment, Social and Poverty indicators

30. result Forest and NTFPs potential Total poor household Education paddy field Electricity health problems Roads network Safe water supply Deforestation rates UXO problem Improved sanitation facilities Market access Local people livelihood Group AHighhighpoor highpoorpoor - fairlesshighPoorlimitedpoor Group BLesslessfair p o or fair highlessFairgoodless poor Linkages between Environment, facilities and poverty

31. Linkage between poverty and environment

32. NTFP Case StudyRoads Case StudyUXO Case StudyRWSS Case StudyUrWSS Case Study NTFPs case study had studied about the natural/NTFPs potential existing in their rounding environment associates with poverty, concerning other four case studies had contributed to study about the facilities and socio-economic incentives of income generation for the poor people existing in their environment and together all five case studies identified the appropriate alternatives for NTFPs sustainable use, income generation and poverty eradication, stop shifting cultivation and stop opium production. NTFP basic need to income eneration Look at roads networksLook at UXO problem Look at water & sanitation problem in rural areas Look at water & sanitation problem in urban areas Poverty eradication Stop shifting cultivation Stop opium production NTFP Loss Facility need and socio-economic incentives for sustainable income generation Roads AccessLook at roads access Access to MarketLook at market access Health problemsLook at Health problemsLook at health problem associated with water quality, quantity and available in rural areas Look at health problem associated with water quality, quantity and available in urban areas Alternative for NTFP Sustainable Use and Poverty Eradication (production and legislation) One District One Product – livelihood alternative : identified the most economic value NTFP oriented to the market (local tea, coffee,.. ), medicinal plan, ecotourism, Ethnic Knowledge, Need policy support:  Increase paddy field Increase livestock holdings  Solve livestock disease problems  Provide funding mechanism to increase livestock holdings  Re-do Land Allocation  Make cash cropping reliable (e.g. price guarantees for promoted crops)  Provide roads/access to markets  Provide better schools  Improve village medical care (train village medic, provide medical kit, etc.)  Provide clean water supply  Provide electricity  Policy price  Technical training & education for children Linkages between five case studies

33. Summary of problems associated with poverty Poverty indicators Problems Associated with Poverty Primary Causes of Poverty Secondary Causes of Poverty Perceived Solutions to Poverty 1.lack of food, (inability to provide 2,100 calories per person per day), 2.insufficient rice, 3.few livestock, 4.lack of clothing, 5.lack of permanent accommodation, 6.inability to afford fees for medical treatment in case of illness, 7.inability to afford payment for education of family members, 8.lack of condition for convenient communication and 9.problem market access.  Be more dependent on natural resources;  Have less arable land (paddy field & swidden)  Have less assets (savings) to cope with difficult times;  Have less education and skills for alternative income generation, and are often more economically isolated (e.g. less road access);  Therefore more affected by natural resource losses (agricultural land degradation, forest degradation and NTFP losses) and are more vulnerable to shocks (drought, flooding etc);  Higher risk of disease (lack of water and sanitation, more frequently exposed to harmful smoke from solid fuel burning);  Poor health (less access to medical services and having to hire out labour, income losses from illness (informal sector; self-employed; etc));  Women work harder than men;  Less financial resources to pay for quality health services;  Less resources for averting behavior;  Few livestock associated with Livestock disease;  Lack of technical knowledge  Land problems (insufficiency, poor quality, low returns to labor, soil depletion)  Lack of investment money to pay for rice while improvements are being made  Livestock disease  Pests and natural disasters  Environmental degradation  Lack of village leadership & initiative  Relocation  Insufficient health services  Too many children  Lack of commercial skills  Insufficient education  Lack of government assistance  Low prices  Poverty is inherited from parents  Lack of roads, no access to markets  Ill-health & low labour capacity  Opium addiction  Income cannot keep pace with rising costs (inflation)  UXOs Theft  NTFPs management & development as  Increase land availability & resolve rice cultivation issues  Increase livestock holdings  Solve livestock disease problems  Provide funding mechanism to increase livestock holdings  Develop paddies that function  Re-do Land Allocation  Make cash cropping reliable (e.g. price guarantees for promoted crops)  Provide roads/access to markets  Provide better schools  Improve village medical care (train village medic, provide medical kit, etc.)  Provide clean water supply  Provide electricity

34. II. Conclusions Natural resources as forest and NTFP are key components for food security and income generation for rural poor people, especially for those, who are currently engaged in shifting cultivation practices and opium production. In addition, NTFPs are being recognized as having the potential to be an important livelihood alternative in the NGPES. Given their substantial share of people’s livelihooda, NTFP also have high potential to contribute to NGPES, shifting cultivation stabilization, stopping opium production, and promoting the government policy on “One District One Product” while also providing incentives for forest conservation. Forest, NTFPs, and poverty issues are all interconnected. To solve one, one must understand all. However, under NGPES, stopping shifting cultivation and opium production will also require different appropriate socio-economic incentives and facilities such as roads access, good markets, education (technical training, information providing), health care, safe water system, agro-forest promotions, government financial intervention and others.

35. The Lao Government has recognized the socio-economic development potential of natural resources, especially NTFPs, and, therefore, the Government has developed an appropriate policy framework, but it has not developed the relevant legal framework. The lack of important elements, such as clear legal practical guidelines and its enforcement, an appropriate sustainable development system, support services, and insufficient institutional capacity and resources, have been the main constraints. If these constraints and the increase demand on natural NTFP are not addressed, there is no doubt that NTFP will continue to decline and potentially diminish in the near future. As a result, more risk for the poor is foreseen.

36. RECOMMENDATIONS In addition to a number of challenges and constraints, there are many opportunities for sustainable management of NTFPs: 1.To enable the promotion sustainable NTFP management and utilization, it is essential to enhance the relevant legal framework by development and dissemination of missing practical guidelines, and consolidation of the existing scattered and inconsistent regulations; 2.Within the enhanced legal framework, sustainable NTFP management systems should be developed and tested in coordination with land use planning and village consolidation, and using community-based approaches. Implementation of appropriate systems should then be expanded by the recently restructured DAFEO as part of district agriculture and forestry development plans and village development plans, practiced collectively or individually in the allocated village forests, with a close supervision and technical assistance by DAFOE staff. NTFP harvest should be based on a community based sustainable harvesting plan, which is based on the results of NTFP assessment.

37. 3.In addition, NTFP cultivation should be strongly promoted in conjunction to market demand by integrating NTFP species as elements of integrated upland farming systems and by planting suitable NTFP species to enrich fallows and degraded forests. Focus should be given to forest species. 4.In connection to the above, market development and promotion for NTFP should also be given high attention. This can be done by establishing NTFP marketing and information network; controlling illegal trade and unsustainable practices, and processing NTFP for the benefit of the value added. All these should go in conjunction with community organizing (marketing group) and local capacity building. To support all these objectives, NTFP research and extension enhancement are essential. 5.Through the accomplishment of these objectives, NTFP will certainly contribute a substantial part in solving problems related to poverty eradication, especially helping relieve tension and solve problems for people in the transitional phase of village relocation and shifting cultivation stabilization, while other livelihood alternatives are on the way. 6.NTFPs management and development as one key component of: rural family economy and also national economy, where they are especially undervalued but contain great potential for industrial development; vital provider of food security, other basic needs for fodder, medicines, construction materials, and other items;

38. they are potential source of income for poor households; NTFPs contribute to sustainable livelihood by their diversity ; NTFPs make conservation more acceptable to local government with multiple goals; NTFPs provide strong economic incentives for participatory forest conservation ; NTFPs are future possibilities 7.To promote “One District One Product” – livelihood alternative : identified the most economic value NTFP oriented to the market (local tea, coffee,.. ), medicinal plan, ecotourism, Ethnic Knowledge; 8.Need policy support and intervention from Government: Increase paddy field; Increase livestock holdings; Solve livestock disease problems; Provide funding mechanism to increase livestock holdings; Re-do land allocation; Make cash cropping reliable (e.g. price guarantees for promoted crops); Provide roads/access to markets and transportation; Provide clean water supply systems; Improve village medical care (train village medic, provide medical kit, etc.); Provide electricity; Technical training & fertilizers provision; Education facilities for children; Specific legal framework.

39. The implementation process of the National Growth and Poverty Eradication Strategy (NGPES) should place emphasis on the promotion of sustainable growth, coupled with continuous social progress and equity, and should highlight four key sectors: agriculture, roads, health and education. It also has to take into consideration environment management, especially natural resources management (timber products, NTFPs, biodiversity, etc…) to ensure food security, living needs, family subsistence needs, and economically optimal and sustainable use. Suggestions

40. Have to conduct NTFPs assessment, control illegal trade, unsustainable practices, elimination of shifting cultivation with an appropriate promotion of: Highlighting NTFPs in rural development alternatives (village development plan); Highlighting NTFPs in rural development alternatives (village development plan); NTFP cultivation, processing for value added, cost benefit analyses and appropriate technology transformation; NTFP cultivation, processing for value added, cost benefit analyses and appropriate technology transformation; Strengthening policy, institutional and legal framework for sustainable NTFP management, utilization and marketing by community organizing (marketing group) for NTFPs management, and development of missing practical guidelines, and consolidation of the existing scattered and inconsistent regulations; establishing NTFP coordinating body; Strengthening policy, institutional and legal framework for sustainable NTFP management, utilization and marketing by community organizing (marketing group) for NTFPs management, and development of missing practical guidelines, and consolidation of the existing scattered and inconsistent regulations; establishing NTFP coordinating body; Providing local capacity building through setting up the NTFP marketing and information, research network and extension. Providing local capacity building through setting up the NTFP marketing and information, research network and extension.

41. Thank you