The World Bank Experience
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Environmentally Sustainable Development Division Public Disclosure Authorized AFTES Technical Note No.2 20364 Wildlife Projects: Public Disclosure Authorized The World Bank Experience by Chieko Umetsu Public Disclosure Authorized June 1993 Environmentally Sustainable Development Division Public Disclosure Authorized Technical Department Africa Region The World Bank AFTES Technical Note No. 2 Wildlife Projects: the World Bank Experience by Chieko Umetsu Environmentally Sustainable Development Division Technical Department Africa Region The World Bank June 1993 The author wishes to thank Jan Bojd and Leif Christoffersen for providing the opportunity to write this paper. She is also grateful to Agnes Kiss for many helpful comments and to Lawrence Mastri for editorial help. Contents WILDLIFE PROJECTS: THE WORLD BANK EXPERIENCE Foreword..........v 1. Introduction..........1 2. Limitations..........1 3. The Bank's Involvement in Wildlife..........2 3.1 Wildlife Projects: The Bank's Experience..........2 3.2 Three Categories of the Bank's Concern towards Wildlife..........3 i) Wildlife-based tourism development..........4 ii) Wildlife conservation/protection in protected areas..........5 iii) Wildlife management and conservation for increasing benefits for local people..........6 4. The Nature of Projects..........9 4.1 Separate Projects..........9 4.2 Integrated Projects..........9 5. Economic Analysis of Wildlife Projects..........11 5.1 Benefits of Wildlife as Increased Revenue from Tourism..........11 C8te d'lvoire: Second Tourism Development Project (FY79).......... 1 Kenya: Wildlife and Tourism Project (FY77)..........14 Kenya: Protected Areas and Wildlife Services Project (FY92) .......... 16 5.2 Benefits of Wildlife as Increased Cattle Production .......... 18 Kenya: Second Livestock Development Project (FY74)..........18 5.3 Benefits of Wildlife as NTPs.........19 Ghana: Forest Resource Management Project (FY89).........19 5.4 Other Benefits Valuation of Wildlife: Non-Consumptive Value, Option Value, Existence Value..........20 6. Conclusions for Future Bank Work..........20 References..........23 Foreword In this informal series of publications, which we call AFTES Technical Notes, the Environmentally Sustainable Development Division of the Africa Technical Department will occasionally release draft reports written by our staff or consultants as contributions to larger tasks in our work program. These reports may be of wider interest in the Bank in their original form, without intensive editing or revision. We will release papers under this series whenever we think a document merits such wider distribution. Ms. Chieko Umetsu, who is presently pursuing doctoral studies at the University of Hawaii and the East-West Center, Hawaii, worked as an intern with the former Environment Division (AFTEN) during the summer of 1992. This report was carried out under the guidance of Jan Boji, environmental economist, AFTES. and is a contribution to the Regional Study on the Economics of Living with Wildlife. The work is based on an extensive compilation of written documents and therefore may not fully reflect recent experience with project implementation. Frangois Falloux Senior Environmental Advisor AFTES 4 Wildlife Projects: The World Bank Experience 1. Introduction Rich in diversity, Africa's natural resources attract many foreign visitors to the continent. Yet, resources for agricultural production remain scarce. Increasing population pressure forces people to use marginal lands just to survive, leading to the deterioration of productive resources. Wildlife in Africa has been an important source of foreign exchange for governments, as well as an important source of food and raw material for local people. The traditional approach to wildlife preservation in parks and reserves has failed to prevent the depletion of wildlife species. An alternative approach is to recognize that wildlife is an asset which can be integrated into existing economic activities. A World Bank study, Living with Wildlife: Wildlife Resource Management with Local Participation in Africa (Kiss, 1990) envisaged the importance of local participation for wildlife resource management in Africa. Written as part of a World Bank regional study, THE ECONOMICS OF LIVING WITH WILDLIFE, this paper tries to provide an overview of World Bank experience. The study first reviews the Bank's general involvement in wildlife, through the Bank's lending operations in this field, then explains the nature of specific wildlife projects. The paper also examines the economic analysis of wildlife, with examples of the Bank's project appraisal of wildlife projects, and offers some conclusions about future Bank work. 2. Limitations Although this paper tries to make a comprehensive review of the Bank's wildlife experience, the extent of the study has been limited by the data bases used-the Internal Documents Management System (IDMS) and the Africa Lending Operation Database (LOD). Both have been searched using the keyword "wildlife." The IDMS covers all World Bank projects since 1945, whereas the LOD includes only those in the Africa Region approved after fiscal 1988. By this procedure, 29 projects were selected, including reports outside the Africa Region, such as Malaysia, India, Nepal and Latin America. Of 29 projects selected on the basis of this keyword, 18 projects have a wildlife component in their project appraisals, while the remaining projects have negligible or no wildlife components. The paper is therefore based on the observations derived from 18 projects in the Africa Region, including three under preparation for fiscal 1993. Since most of the documents used are internal World Bank reports, direct citations have been omitted.* * A full list of references is available to World Bank staff upon request. 1 AFTES Technical Note No.2 - 3. The Bank's Involvement in Wildlife 3. 1 Wildlife projects: The Bank's experience Between 1970 and 1992, the Bank invested in 15 wildlife-related projects in Africa. The total lending volume, including loans and credits, was US$367.9 million. Of the total lending volume during this period-US$40,583.3 million-wildlife-related projects comprised only 1 percent. The amount of lending for wildlife-related projects during the 1970s, 1980s, and 1990s was, respectively, U.S.$76.2 million, U.S.$160.8 million, and U.S.$130.9 million (table 1 and figure 1). If the lending under preparation for fiscal 1993 is included, the total lending for 1990-93 would be U.S.$179.5 million. The lending for wildlife-related projects has been particularly active in recent years, and 76.4 percent of the total lending for wildlife from 1970 is concentrated in the years since 1989. Of 321 operations between 1989 and 1992, nine operations were wildlife-related, accounting for 1.87 percent of lending volume. Table 1. Total Lending Volume and Wildlife-related Projects In Africa Region(FY1970-1992) [Million U.S. dollars)] 1970-74 1975-79 1980-84 1985-89 1990-92 1970-92 Total 2,359.3 5,207.3 9,322.8 12,5948 11,099.1 40,583.3 lending in Africa Region Lending for 32.0 44.2 0 160.8 130.9 367.9 Wildlife-re- *(179.5) *(416.5) lated Projects Percentage 1.36 0.85 0 1.28 1.18 0.91 of Total Lending * includes projects under preparationfor fiscal 1993 (31 July 1992) Geographical distribution of wildlife-related projects are concentrated in East Africa and especially in five projects (fiscal 1974, 1977, 1979, 1989, 1992) in Kenya, including two tourism projects. The total lending volume for wildlife-related projects in Kenya was U.S.$132.8 million, accounting for 36 percent of total wildlife-related lending in Africa. Other projects include: two projects in Somalia, one project each in Malawi Botswana, Zimbabwe, C6te d'lvoire, Ghana, Central African Republic, Burkina Faso, and Mali. In fiscal 1993, three projects in Gabon, Zimbabwe, and Ghana are under preparation (see Table 2 ). 2 Wildlife Projects: The World Bank Experience 3.2 Three Categories of the Bank's Concern Towards Wildlife The Bank's concern for wildlife in Africa is evident in three categories of project objectives: (1) wildlife-based tourism development; (2) wildlife protection/conservation in protected areas; and, most recently, (3) wildlife management and conservation for the benefit of local people. Wildlife related projects cannot always be placed under one category; sometimes one project includes more than one category in the project objectives. However, it may be useful to define the types of issues the Bank has raised in its project appraisals. Table 3 provides a summary of wildlife-components for each project. Table 2. WildlIfe-related Projects In Africa Reglon(FY1973-FY1 993) FY Country Wildlife-related Project Lending1 Wildlife ERR Project (U.S.$ component2 (%) Life3 (year) million) _ 73 Malawi Second Shire Valley Agricultural 10.5 I 22 20 Development Project 74 Kenya Second Livestock 21.5 I 25 40 Development Project 77 Kenya Wildlife and Tourism Project 17.0 S 16 25 79 C6te d'lvoire Second tourism 14.2 S over 20 development project 144 79 Kenya Narok Agricultural 13.0 1 13 20 Development Project (1st phase) 85 Botswana National Land Management & Livestock 10.7 I 16 30 Project 89 Kenya Rural Services Design Project 20.8 l(SP) n.a.b n.a. 89 Somalia Second Agricultural Sector Adjustment Project 70.0 I n.a. n.a. 89 Ghana Forest Resource Management Project 39.4 I 21 15 89 Somalia Central Rangelands 19.9 I 10 25 Research and Development Project 90 Zimbabwe Forest Resources Management 14.5 I 30 20 and Development Project 90 CAR Natural Resource Management Project 19.0 I n.a. n.a. 91 Burkina Faso Environmental Management Project 16.5 I n.a. n.a. 92 Mali Natural Resource Management Project 20.4 I n.a. n.a. 92 Kenya Protected Areas and Wildlife Services Project 60.5 S 36 20 93 Gabon Forestry and Environment Project 22.5 I 18,13 40 6 93 Zimbabwe Southern Zimbabwe National Parks 8.0 S Rehabilitation and Environmental7 Management in Surrounding Communities 93 Ghana Environmental Resource Management Project 18.1 I n.a.