Overview of the IDB - Inter-American Development Bank

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Environment and Development;
Trends in Latin America and The
Caribbean

February 2004

Inter
-
American Development Bank



2

Environmental Underpinnings

of Sustainable Development

Latin America and the Caribbean depends
on the environmental services such as
those provided by:


Forests


Coastal and marine ecosystems


Terrestrial biodiversity


Surface and ground water


Soils




3

Environmental Progress


Environmental institutions


Laws



Conservation programs, establishment of
protected areas


Focus on urban environmental concerns,
air quality, sanitation, solid waste
management



4

Challenges

Despite significant investments from
countries, multilateral banks, bilateral
agencies to specific environmental programs
the trend indicators point to:


greater environmental degradation and

depreciation of natural capital; and


Poorer health, declines in productivity and

income, physical vulnerability and

diminished quality of life





5


The problem areas in natural resource and
environmental management



Water

resources



Forest resources and biodiversity


Marine
-
coastal

resources



Energy


Urban

pollution


Vulnerability

to

natural

disasters



Climate

change







6

Trends


Forests, soils and biodiversity

In ten years, region has lost 4.7 million hectares of
forest per year, resulting in extensive loss of:


Soil


Biodiversity and genetic resources


Water

Development Impact:

reduction in agricultural
productivity, vulnerability to flooding and
droughts, loss of tourism




7

Trends (cont.)

Urban Environments

Transportation patterns in urban areas are


causing acute deterioration of air quality:


Increases in particulate matter, carbon dioxide,
nitrogen oxides,
sulphur
dioxides, and volatile
organic compounds.


More than 100 million people are exposed to
pollutants at levels that exceed WHO air quality
standards

Development Impact:
respiratory illnesses resulting
in 100,00 deaths each year



8

Trends (cont.)

Water Resources


76 million people lack access to safe water
15% of total population


Less than half of the population is
connected to sewage treatment services.

Development Impacts
: gastrointestinal
infections, premature infant mortality



9

Trends (cont.)

Coastal
-
Marine Resources

Coastal ecosystems and estuaries are being
degraded


Destruction of mangroves


Loss of coral reefs due to pollution


Oversfishing

Development Impact:

loss of livelihood in
fishing, tourism, and aquaculture





10

Trends (cont.)

Climate Change

At present relatively small contribution to overall
GHG emissions. Region vulnerable to climate
change:


extreme weather events



flooding, loss of coastline


drought, fires


Development Impacts:
loss of infrastructure,
productivity, livelihood, and lives




11

Trends (cont.)

Natural Disasters

Region vulnerable to earthquakes, floods, fires,
tropical storms, hurricanes, droughts and
landslides:


Average of 40.7 disasters per year (1990
-
1998)


Poor most affected

Development Impacts:
Loss of life, economic
losses ($20 billion 1990
-
1998), infectious
diseases, homelessness




12

Gross and net savings


(% of GDP)

0%

5%

10%

15%

20%

25%

30%

35%

Middle East and North Africa

Rest of Africa

Eastern Europe and Central Asia

Latin America and Caribbean

South Asia

Developed

Southeast Asia and Pacific

Net savings

Environmental

Degradation


Genuine savings in LAC



13

-
20%

-
15%

-
10%

-
5%

0%

5%

10%

15%

20%

25%

30%

Nicaragua

Haití

El Salvador

Guatemala

Colombia

Venezuela

Guyana

Bolivia

Paraguay

Trinidad y Tobago

Uruguay

Antigua y Barbuda

Ecuador

Argentina

Belice

Barbados

Jamaica

Perú

México

Rep. Dominicana

Chile

Brasil

Honduras

Costa Rica

Panamá

Gross and net savings

(% of GDP
)

Net savings

Environmental


Degradation


Genuine Savings in LAC, by Country



14

Weak Environmental

Institutions



Lack of technical and financial resources


Poor public participation processes


Ineffective policies and programs




15

Lack 1

Policy Coherence


Environment is a significant factor in
health, agriculture, energy, transportation ,
trade, etc.


Policies often work at cross purposes,
eroding environmental gains or impeding
them



16


New Approaches

1.

Strengthening Environmental Governance


technical and financial sustainability of
environmental institutions


Regulatory frameworks with emphasis on
monitoring,and enforcement


Environmental management instruments:
environmental information, market
-
based
measures, economic valuation of natural resources
and environmental services



17

New Approaches


2.


Mainstreaming environmental considerations
into social and economic policies



Capacity building for developing economic and
social policies that shape the behavior of
individuals, institutions and companies.



Developing tools that help quantify the
environmental benefits and costs of policies


Integrating environmental considerations with
other strategic priorities such as modernization of
the state, enhancing competitiveness, social
development and regional economic integration





18

Implications

Environmental sustainability as a core element of
development effectiveness


Address the interface between environment and:



modernization of the state,


competitiveness,


economic integration, and


social development




19

Priority areas of action



1.
Modernization of the state and the
environment


Strengthen environmental governance


Improve financial sustainability


Support decentralization processes


Support a wide range of management

instruments



20

Priority areas of action

(cont.)

2.
Competitiveness and the environment


Preserve the productive value of natural

resources and ecosystems


Promote public and private investment


Promote clean production mechanisms


Establish systems of certification and

accreditation


Promote green goods and services



21

Priority areas of action


(cont.)

3.
Social development and the environment


Address health
-
environment linkages


Support rural communities and

indigenous groups


Reduce environmental risk



22

Priority areas of action


(cont.)

4.
Regional Integration and the environment


Strengthen environmental institutions,

policies and programs


Identify potential environmental stresses and

opportunities


Promote effective regional management of

shared public goods (watersheds, corridors, etc.)


Apply adequate environmental analysis and

monitoring in regional infrastructure

initiatives