Lessons Learnt from Brazil's Bolsa Verde, China, C
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ESS – Extension of Social Security Protecting people and the environment: Lessons learnt from Brazil’s Bolsa Verde, China, Costa Rica, Ecuador, Mexico, South Africa and 56 other experiences Helmut Schwarzer Clara van Panhuys Katharina Diekmann ESS – Working Paper No. 54 Social Protection Department INTERNATIONAL LABOUR OFFICE, GENEVA Copyright © International Labour Organization 2016 First published 2016 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. 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ILO Cataloguing in Publication Data Schwarzer, Helmut; Van Panhuys, Clara; Diekmann, Katharina Protecting people and the environment : lessons learnt from Brazil's Bolsa Verde, China, Costa Rica, Ecuador, Mexico, South Africa and 56 other experiences / Helmut Schwarzer, Clara van Panhuys, Katharina Diekmann ; International Labour Office, Social Protection Department (SOCPRO). - Geneva: ILO, 2016 (Extension of Social Security series ; No. 54) International Labour Office Social Protection Dept. social protection / sustainable development / environmental management / community development / poverty alleviation / case study / Brazil / China / Costa Rica / Ecuador / Mexico / South Africa 02.03.1 ILO Cataloguing in Publication Data The editor of the series is the Director of the Social Protection Department, ILO. For more information on the series, or to submit a paper, please contact: Isabel Ortiz, Director Social Protection Department International Labour Organization 4, route des Morillons CH-1211 Geneva 22 (Switzerland) Tel.: +41.22.799.62.26 Fax:+41.22.799.79.62 email: [email protected] The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. 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Abstract This working paper: (i) provides an overview of 56 Payments for Environmental Services (PES) experiences in 19 countries from the global south that combine social protection and environmental objectives within one programme (ii) analyses the Brazilian Bolsa Verde programme and four PES schemes from China, Costa Rica, Ecuador, Mexico and one public work programme in South Africa from a social protection point of view by building upon the guidance provided by the Social Protection Floors Recommendation, 2012 (No. 202); (iii) extracts some lessons learnt from existing PES schemes that may be useful when designing, implementing and monitoring social protection programmes such as the Brazilian ‘Bolsa Verde’ programme; (iv) proposes some concrete and innovative ideas on how to combine existing social protection programmes with PES schemes with a view to protecting both people and environment and ultimately supporting the achievement of sustainable development for everyone everywhere. JEL Classification: H23, H55, I38, Q56, Q57, Q58 Keywords: social protection, cash transfers, social assistance, environmental services, climate change, rural livelihoods, indigenous and tribal peoples, economic incentives, public employment programme, Brazil, China, Costa Rica, Ecuador, Mexico, South Africa Protecting people and the environment: Lessons learnt from Brazil’s Bolsa Verde, China, Costa Rica, Ecuador, Mexico, South Africa and 56 other experiences iii Contents Page Abstract ............................................................................................................................................. iii Acknowledgements ........................................................................................................................... vii Executive summary ........................................................................................................................... ix Abbreviations .................................................................................................................................... xi 1. Introduction ............................................................................................................................. 1 2. Social protection and the environment .................................................................................... 2 2.1. Linkages between social protection and the environment ........................................... 3 2.2. What are social protection floors? ................................................................................ 4 2.3. What are payments for environmental services? .......................................................... 6 3. The Brazilian experience – Bolsa Verde ................................................................................. 9 3.1. Social protection floors and payments for environmental services in Brazil ................ 9 3.1.1. Social protection floors and the Bolsa Família ................................................ 9 3.1.2. Payments for environmental services and Bolsa Floresta ............................... 11 3.2. Bolsa Verde .................................................................................................................. 15 4. Pro-poor PES programmes in the Global South..................................................................... 18 4.1. Overview of selected PES programmes in the Global South....................................... 18 4.1.1. Overview of the 56 PES programmes reviewed .............................................. 19 4.2. Costa Rica’s Pago por Servicios Ambientales .............................................................. 23 4.3. Mexico’s Pago por Servicios Ambientales Hidrológicos ............................................ 25 4.4. Ecuador’s Socio Bosque Programme ............................................................................ 27 4.5. China’s Sloping Lands Conversion Programme ........................................................... 30 4.6. Special topic: Public employment programmes and South Africa’s Working for Water 32 4.6.1. Public employment programmes ..................................................................... 32 4.6.2. South Africa’s Working for Water Programme ............................................... 34 4.7 Comparison of case studies and Bolsa Verde.................................................................... 35 5. Lessons learned from literature and case studies ................................................................... 37 5.1 Participants of the PES scheme ......................................................................................... 37 5.1.1. Are poor people excluded as providers due to targeting criteria? .................... 37 5.1.2. Are poor people excluded due to application/transaction process or costs? .... 40 5.1.3. Are poor people excluded due to “too strict” enforcement of rules? ............... 42 5.1.4. Who pays for the environmental service? ........................................................ 43 5.2. Social impacts of the PES ............................................................................................. 43 5.2.1. Financial impact on participants (short term) .................................................. 43 5.2.2. Exit strategy for participants (long term) ......................................................... 44 5.2.3. Impacts on the community ............................................................................... 46 Protecting people and the environment: Lessons learnt from Brazil’s Bolsa Verde, China, Costa Rica, Ecuador, Mexico, South Africa and 56 other experiences v 5.2.4. Impacts on non-participating poor ................................................................... 46 5.3. Dynamic development of the PES ................................................................................ 47 5.3.1. Participation of stakeholders ............................................................................ 47 5.3.2. Flexibility ......................................................................................................... 48 6. Recommendations