1. The UNEP – UNDP Poverty and Environment Initiative (PEI) Africa Overview of Application of Economic Tools and Methodologies Angela Lusigi, PEI Africa

2. Outline: Key Achievements PEI Africa Pilot Phase: 2005 – 2008 PEI Scale Up: 2009 - 2011

3. Key Achievements: Economic assessments and valuation of contribution of ENR to growth and poverty reduction: 8 countries completed, 1 planned Public Environment Expenditure Reviews: 2 countries completed, 5 more planned Reviews of Economic Instruments/Environmental Fiscal Reform: 3 completed, 1 planned Budget Guidelines: 2 countries completed, 1 planned

4. PEI Africa Pilot Phase: 2005 - 2008 The pilot phase of PEI, included a focus on integrated ecosystem assessments (IEAs) with the objective of ensuring that the findings are used in national development processes (e.g. PRSPs, NDS, MDG strategies) to promote sustainable utilization of environment and natural resources for growth and poverty reduction. IEAs were carried out in Rwanda, Mauritania, Tanzania and Uganda. An assessment of the application of IEAs (2008) recommended:  That pilot assessment should be matched with an ongoing policy process and complemented by other economic assessments;  Results of assessment should be communicated and injected effectively into policy processes;  The capacity building component should be strengthened by combining external expertise with national experts

5. PEI Africa Pilot Phase: 2005 - 2008 Other tools applied during this pilot phase included:  Economic Assessments of the contribution of Environment and Natural Resources to Economic Growth (Kenya and Rwanda)  Review of Budget Guidelines (Uganda).  Policy briefs on Poverty and Environment to support PRSP development (Rwanda) Rwanda economic assessments (2) had significant impact & pointed way forward

6. PEI Scale Up: 2009 - 2011 In the expansion phase of PEI Africa, the focus shifted to economic tools and methodologies where results can be obtained quickly to feed into ongoing national strategy development processes. This is a complement to longer term assessments such as IEAs The use of more economic tools is in response to a comprehensive assessment of the PEI Africa (2008) that recommends PEI should:  Continue to support planning processes at national, sector and district level with a strong capacity-building component;  Move upstream, tackling systemic policy and governance issues that limit p/e achievement on the ground and engage a wider range of policy-makers and opinion leaders,  Focus more on public expenditure reviews and other economic and financial assessments (of the costs of inaction and the benefits of investment) to improve the economic case for integration, and include a future-search or scenarios orientation so that plans and budgets are not based only on current P/E information.

7. PEI Scale Up: 2009 - 2011 The main economic tool that has been used by PEI is economic assessments or valuation of key environment and natural resources in 9 countries This is followed closely by Public Environment Expenditure Reviews in 7 countries The review of budget guidelines, economic instruments and environmental fiscal reform is still limited to 3 and 4 countries respectively. However, support to budgets and environmental fiscal reform represents a key area for planned work in 2011 and will contribute to the long term sustainability of mainstreaming environmental issues in national development planning processes.

8. Overview of PEI Economic Tools Used 1. IEARwanda Tanzania Uganda MauritaniaMali 2. Economic Assessments/ Valuation of ENR contribution Kenya Rwanda (2) Mauritania Malawi Mali Botswana Burkina Faso Tanzania Mozambique 3. Public Environment Expenditure Review Rwanda Tanzania Botswana Kenya Malawi Mali Mozambique 4. Budget Guidelines UgandaMalawiBotswana 5. Economic Instruments/ Environment Fiscal Reform Uganda Tanzania RwandaMozambique Tanzania 2005-20072008200920102011

9. Overview of PEI Economic Tools

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