Rationale for investing in the drylands

IDs 2014, Rome, December 16, 2014

M

Ir. Marc Moens, Senior Livestock Officer

Investment Center DivisionFAO. TCIA

Endemic poverty - Population growth pressure• Highest incidence of poverty, Lowest life

expectancy, adult literacy, secondary school enrolment, lowest Human Development Index, lack basic social services, …

Drylands : risky investments

Perennial food insecurity• Low agricultural productivity (low rainfall, fertility, lack

inputs/services, access to knowledge, etc.)

• Frequent and unpredictable droughts (assets losses - poverty)

Increased insecurity• Prone to political and violent conflicts; raiding,

trafficking, social tensions, conflicts, fanatism, etc.

Past failures in development projects• Poor returns on investment, little achievements

Economic marginality• Weak contribution to the economy

Population pressure & pressure on land often leads to an increased farmer’s awareness to soil and water conservation, encouraging transition towards more sustainable land-use practices.

Many case studies, ample examples

Plenty evidence: o agricultural systems are resilient,o adaptive capacity of dryland

communities,o degradation is not inevitable, o economic rates of return of investment

can be favorable even in the drylands,

Investing in resilience (Cabot Venton, 2012):

o For every USD 1 spent on resilience, USD 7.2 of benefit are gained comparing to late humanitarian response (reduced losses);

o Every USD 1 spent on destocking yields USD 270 in reduced aid costs and avoided losses of animals

Private investments by small farmers and livestock producers are key to sustainable management of drylands

Investment in building secure livelihoods

Investing in sustainable practices improve carbon sequestration.

The cost of doing nothingo Lost in production; o Reduced value of natural capital; o Reduced food security,o Increased poverty;o Increased costs of emergencies o Reduced supply of productso Reduced GDP & Growth

The cost inaction - Social costso Increased instabilityo Increased violent conflictso Increased of social suffering

Role of public sector investments:

o Release the constraints of improving productivity, accessing to services (social, agriculture, animal health, credit), access to market;

o Reduce the vulnerability to assets losses: protecting the investments of the poor

o Provide the incentives to invest in resilience:

• Direct incentives to beneficiaries / social protection;

• Enabling incentives: e.g. infrastructures, land reform for secure access to natural resources, strengthened social capital and local empowerment in decision making, etc.;

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