Building Coalitions for Change to Implement Pro-Poor

Environmental Fiscal Reforms: Lessons Learned from Pakistan

Dr Usman MustafaPakistan Institute of Development

Economics (PIDE)Mahmood Akhtar Cheema

IUCN- Pakistan

Format

Pro EFR and its benefits Brief project profile - components Key Achievements of EFR Project Lesson learned Way forward

Strengthening envir. management can support econ. growth, while improving health and productivity.

Pro-poor EFR, can assist the govt. in broadening the revenue base, while achieving both poverty reduction and envir. goals.

The envir. benefits of EFR includes; pollution prevention and improved natural resources management; mobilization of funds for investment in pollution control and safe disposal of waste; and mobilization of funds for enforcement activities.

Environmental Fiscal Reforms

Environmental Fiscal Reforms

Benefits of EFRPoverty Reduction•Improving environmental quality e.g. better natural resource management or provision of environmental infrastructure:

–poor depend on environment for health, livelihoods and vulnerability

•Fiscal revenues: revenues for pro-poor expenditure on health, education etc•Protection or compensation to protect poor from price rises

Environmental Benefits

•Incentives for sustainable natural resource management•Incentives for curbing pollution (air, water, soil)•Funds for environment agencies and investments

Fiscal Benefits•Revenue mobilization•Reduced distortions•Reduced drains on •public finances

Brief Project Profile

Financial support: Swiss Development Cooperation (SDC)

Budget: Pak. Rupees 53.450 millions (US $0.63 mil.)

Duration: May 2006 to April 2009 - Extended to June 2010

Research Partners: Pakistan Institute for Development Economics & Sustainable Development Policy Institute

Pilot District: Abbottabad Aim: Poverty reduction and environmental improvement

through undertaking a set of environmental fiscal reforms initiatives.

Project Components

1. Action Research and Awareness Raising

2. Enabling Institutional, Legal and Policy Framework

3. Capacity Building

4. Piloting Select EFR Options

5. Wider Dissemination for Replications

Key Achievements of EFR Project

1. Overall Project Management

Project Advisory Committee (PAC)Meant to further develop increased ownership and linkages of EFR project with the Federal Government, The PAC is also meant to provide vision to and act as think tank and resource pool for the project (2 meetings held)

Project Steering Committee (PSC) Serves to guide, advise and facilitate the implementation of the project and ensure linkages and information sharing to create an enabling framework for implementation of EFR. (3 meetings held)

Round Table on Water and Sanitation Serve as a platform for consultation and establishment of linkages among stakeholders, initiating ideas for planning and practical implementation of measures for effective implementation of the project in water and sanitation sector(3 meetings held)

2. Completion of action research

- Research reports on solid waste, drinking water, and quarrying and

mining, fiscal decentralization completed - Five (05) fact sheets completed (for easy understanding) - Sector wise recommendations translated into Urdu - Situation analysis of solid waste management in Nawanshehr

town – (study completed by COMSATS) - Water analysis of natural water resources (survey by PCRWR)

3. Advocacy, partnerships and capacity building

- Liaison with City District Government of Abbottabad

- Research partnerships with PIDE, SDPI and COMSATS Institute for Information Technology

- Extensive awareness, community organization/ mobilization for

development participatory solid waste management system in

Nawanshehr (pilot)

- Trainings (Community) waste segregation, reduction, disposal, composting)

(Local administration) solid waste management, efficient collection, waste segregation, safe disposal, route planning/ mapping

4. Piloting select EFR options

(drinking water) - Improvements in existing

water supply system in Nawanshehr~ pressure distribution system installed,

2700 feet new supply pipes

- Provision of basic tools/ implements for repair of water supply system/ solid waste management

Watershed rehabilitation and improvement (drinking water supply)(4000 sapplings planted on 14 August 2009)

5. Piloting select EFR options

(solid waste)- Development and operationalization of a participatory solid waste management system in Nawanshehr

- Social Mobilization~

community groups, youth associations, school children and women folks

dialogue conducted (70 shopkeepers)

door to door campaign (725 houses)

Citizens seminar, youth forum operationalized

- Social Organization~ sixty two (62) community activists

School Environmental Clubs (09 established)

Mohellah Environmental Committees (06)

- Capacity building

• training of staff of Town Committee on participatory SWM, segregation, recycling, and coordination with line agencies (district govt.) - 16 staff members trained.

• training community groups on participatory SWM system, developing and sustaining primary collection system, organizational management, financial record keeping, coordination and liaison development (62 activists trained)

Other ~ training of communities (& women) on kitchen gardening and compositing (90 trainees)

- Improved measures for primary collection of waste~

model system nine (09) ‘beads’ were developed in the area (each comprising of around 120 households)- at source segregation of organic and recyclables have also been introduced in 09 beads

(08) mohellahs where communities have hired their own waste collectors through nominal contribution (pro- poor initiative)

- Development of secondary waste collection system

- Proper designed secondary collection points have been developed in eleven (11) mohellahs,

- Route planning for waste collectors (map developed)

- Repair of tractor and improvisation of existing trolley

the change…

6. Pro-poor fiscal measures in water supply

Existing system: 4300 water meters ~ flat rate payment

Proposed: Progressive block tariff

- beneficiaries of ‘Zakat’ and ‘Bait ul Maal’ to be exempted (pro- poor measure)

- Separate terrif for commercial users (poultry/ cattle farms, car service stations)

7. Pro- poor fiscal measures in SWM- Five (05) mohellahs have hired waste

collectors (paid from revenue)

- Revenue from selling recyclables by School Environment clubs

- Nineteen (19 kitchen gardens from organic compost)

- (17) garbage merchants have been registered in lieu of payment

of tax to the Town Committee

- A frame- work for scavengers is also

being devised to regulate their working

Research Achievements

Research work received high appreciation

Technical paper of EFR (Pakistan Engineering Congress 2010)

Three papers on EFR presented in Special Technical Session on EFR at the 23th Agm of “Pakistan Society of Development Economics”

Paper on “Consumer Perceptions, Practices, Willingness to Pay and Analysis of Existing Law for Safe Drinking water in Pakistan” published in Oxford University Press, UK (2009)

Panel discussion were held on “Pro-poor Environmental Fiscal Reforms” during Conference on “Peace and Sustainable Development in South Asia: Issues and Challenges of Globalization” held at SDPI

‘EFR’ introduced as subject at PIDE (M. Phil/ M. Sc. Env. Economics Programme

Five students from COMSATS Abbottabad completed their research thesis on EFR instruments (solid waste management)

Wider replication of EFR in IUCN’s on- going programmes (BPSD)

Strong urge from beneficiaries (community in Nawanshehr) to continue support

Lessons Learnt

Pilot testing has proved that EFR is applicable in Pakistan and has successfully demonstrated improvement of municipal services (drinking water, solid waste management)

EFR helped in generating revenue for local Govt. and can address issues like poverty (jobs, savings on access)

Research work actually takes longer than expected Sufficient time is required to produce authentic, comprehensive and factual results

EFR being a new concept~ implementation and promotion of EFR options at local level has been a huge challenge (complex socio- political situation)

Consultations with local level are extremely important to develop consensus among stakeholders to select and adopt EFR options, that are effective and applicable

Improved coordination mechanisms are essential to obtain long term results for reforms

To obtain long term impact from EFR mechanism, buy-in from policy-makers is essential to institutionalise EFR.

The findings of action-research must be tailored to create real understanding and integration into policy and decision making process.

Capacity building at all level needs continuation as an essential and core component of the project, since expertise at local level are not available anywhere in Pakistan for implementing EFR options.

Any further EFR work must be done in close consultation not only with the Project Advisory Committee, but also the Provincial government bodies.

The EFR needs to be tested at a larger canvas (district / provincial level) and tested for efficacy in other potential sectors (eco- tourism, quarrying and mining etc.)

Proposed Way

Forward…

Long term interest ~IUCN’s being pioneer

Strong justification of research findings ~ efficacy of EFR instruments as a mean for environmental conservation, reducing fiscal deficit and poverty

Pilot testing of EFR instruments have proven to be the most effective tool and very successful in achieving the desired results

To obtain long term impact from EFR mechanism, further dedicated support to EFR work is essential, so as the EFR options is effectively tested and completely adopted

Activities completed provide a platform for legislative changes (institutionalization)

More resources and time required~ Institutionalization of EFR concept would is must that needs buy- in from policy makers

As a sustainability mean, district govt needs to be supported to integrate EFR concept in up- coming public sector schemes (‘gravity flow scheme’ and ‘district solid waste management system’)

Proposed~ up scaling of EFR work at district level/ explore other districts (Chitral). Other sectors (eco- tourism and quarrying/ mining, NTFPs extraction have huge potential)

Possible replication of EFR work in other select U. Cs of Abbottabad to spread the benefits

Explore resources for continued support to EFR initiative

Thanks