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Economic Analysis for Targeting
      SLM Intervention


                                      By

                             Mahmud Yesuf

(Based on a Proposal for a Cost-Benefit Framework to Support Pro-SLM Decision-
    Making in Ethiopia, by M. Yesuf, G.Zeleke, G. Köhlin and G. Björklund)

                          UN expert group meeting on
       “Sustainable land management and agricultural practices in Africa:
                Bridging the gap between research and farmers”
             April 16 – 17, 2009, University of Gothenburg, Sweden
Contents of Presentation
•   Objectives
•   Working definitions of LD, SE and SLM
•   Immediate Causes of LD
•   Major Costs of LD
     – On-site Costs
     – Off-site Costs
•   Economic Approaches
     – Change of Productivity Approach (CPA)
     – Replacement Cost Approach (RCA)
•   Applications of Economic Approaches to ETH
•   Economic Criteria for SLM Intervention
•   Targeting SLM Intervention in ETH and Implications
Objectives

i.   Outline economic approaches to assess the cost
     of land degradation or benefit of SLM
     intervention.

ii. Outline how these economic approaches (CBF)
    could be used to prioritize SLM intervention
    using available data in Ethiopia
Working Definition of Land
• Land encompasses:
   –   Soil
   –   Plant
                                     Living
                                                        Soil
   –   Water
                                    organisms
   –   Living organisms
• Land: “the terrestrial bio-
                                                Human
  productive system that
                                                Being
  comprises soil, vegetation,
  other biota, and the ecological
  and hydrological processes                            Plant
                                     Water
  that operate within the
  system”
Land Degradation cont…
• Land degradation is, therefore,
  the destruction/negative
  disturbance of all or one of these
  components and their                    Living
  interrelationships                                         Soil
                                         organisms
• Land degradation: “reduction or
  loss . . . of the biological or
  economic productivity and
  complexity of rain-fed cropland,                   Human
  irrigated cropland, or range,
                                                     Being
  pasture, forest and woodlands
  resulting from . . . processes . . .
  such as (i) soil erosion caused by
  wind and/or water; (ii)
                                                             Plant
                                          Water
  deterioration of the physical,
  biological or economic
  properties of the soil; and (iii)
  long-term loss of natural
  vegetation” (UN Convention to
  Combat desertification)
LD and SLM
– Soil erosion: a particular physical process that causes land and soil degradation, and refers
  to the wearing away of the land surface by water and/or wind as well as to the reduction in
  soil productivity due to physical loss of topsoil, reduction in rooting depth, removal of plant
  nutrients, and loss of water
– The problem is:
– Most cost estimates of land degradation do not distinguish between soil erosion, soil
  degradation and land degradation in their analyses.
– The fact that different studies estimate different components of land degradation makes
  comparison of cost estimates across studies a difficult task.
–   SLM is defined as the use of renewable land resources, for agricultural and other purposes to meet
    community needs, while simultaneously ensuring the long-term productive potential of these resources
    and the maintenance of their environmental functions
Immediate Causes of Land
     Degradation
1. Exploitative farming practices
• Steep land cultivation without protection
• Soil fertility mining
        – Removal of soil organic matter (open nutrient
          cycle)
• Shortened fallow periods
Common
Practices
2. Deforestation

   Conversion of forest and wood land to crop land
   Harvesting of forest for fuelwood
       95% (Urban + Rural) and 99.9% (Rural) of HH energy
        demand is generated from biomass energy!
           81 % from fuel wood, 10% cow dung, 9% crop residue and the rest other
            sources
       This kind of removal of biomass resulted in:
         Deterioration in soil chemical and physical properties
         High soil loss by runoff
         Reduction in soil productivity
– Encroachment of virgin
  forest areas for
  cultivation without
  protection (South and
  South west)
Remnant forests in sacks: result of lack of alternate
energy sources and uncontrolled deforestation
3. Poor Livestock Management

•    Free grazing
     Deteriorates soil physical
      properties
     Destroy soil conservation
      measures
     Remove crop residue
      from the soil
     Detach soil particles
•    Very weak
     grassland/rangeland           • 30 million heads of cattle
     management                    (1st in Africa)!
• Free grazing with unbalanced Carrying Capacity
The vicious circle of resource degradation and poverty!




                  Famine and Poverty
                        Trap!

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Part1 Yesuf

  • 1. Economic Analysis for Targeting SLM Intervention By Mahmud Yesuf (Based on a Proposal for a Cost-Benefit Framework to Support Pro-SLM Decision- Making in Ethiopia, by M. Yesuf, G.Zeleke, G. Köhlin and G. Björklund) UN expert group meeting on “Sustainable land management and agricultural practices in Africa: Bridging the gap between research and farmers” April 16 – 17, 2009, University of Gothenburg, Sweden
  • 2. Contents of Presentation • Objectives • Working definitions of LD, SE and SLM • Immediate Causes of LD • Major Costs of LD – On-site Costs – Off-site Costs • Economic Approaches – Change of Productivity Approach (CPA) – Replacement Cost Approach (RCA) • Applications of Economic Approaches to ETH • Economic Criteria for SLM Intervention • Targeting SLM Intervention in ETH and Implications
  • 3. Objectives i. Outline economic approaches to assess the cost of land degradation or benefit of SLM intervention. ii. Outline how these economic approaches (CBF) could be used to prioritize SLM intervention using available data in Ethiopia
  • 4. Working Definition of Land • Land encompasses: – Soil – Plant Living Soil – Water organisms – Living organisms • Land: “the terrestrial bio- Human productive system that Being comprises soil, vegetation, other biota, and the ecological and hydrological processes Plant Water that operate within the system”
  • 5. Land Degradation cont… • Land degradation is, therefore, the destruction/negative disturbance of all or one of these components and their Living interrelationships Soil organisms • Land degradation: “reduction or loss . . . of the biological or economic productivity and complexity of rain-fed cropland, Human irrigated cropland, or range, Being pasture, forest and woodlands resulting from . . . processes . . . such as (i) soil erosion caused by wind and/or water; (ii) Plant Water deterioration of the physical, biological or economic properties of the soil; and (iii) long-term loss of natural vegetation” (UN Convention to Combat desertification)
  • 6. LD and SLM – Soil erosion: a particular physical process that causes land and soil degradation, and refers to the wearing away of the land surface by water and/or wind as well as to the reduction in soil productivity due to physical loss of topsoil, reduction in rooting depth, removal of plant nutrients, and loss of water – The problem is: – Most cost estimates of land degradation do not distinguish between soil erosion, soil degradation and land degradation in their analyses. – The fact that different studies estimate different components of land degradation makes comparison of cost estimates across studies a difficult task. – SLM is defined as the use of renewable land resources, for agricultural and other purposes to meet community needs, while simultaneously ensuring the long-term productive potential of these resources and the maintenance of their environmental functions
  • 7. Immediate Causes of Land Degradation
  • 8. 1. Exploitative farming practices • Steep land cultivation without protection • Soil fertility mining – Removal of soil organic matter (open nutrient cycle) • Shortened fallow periods
  • 10. 2. Deforestation  Conversion of forest and wood land to crop land  Harvesting of forest for fuelwood  95% (Urban + Rural) and 99.9% (Rural) of HH energy demand is generated from biomass energy!  81 % from fuel wood, 10% cow dung, 9% crop residue and the rest other sources  This kind of removal of biomass resulted in:  Deterioration in soil chemical and physical properties  High soil loss by runoff  Reduction in soil productivity
  • 11. – Encroachment of virgin forest areas for cultivation without protection (South and South west)
  • 12. Remnant forests in sacks: result of lack of alternate energy sources and uncontrolled deforestation
  • 13. 3. Poor Livestock Management • Free grazing  Deteriorates soil physical properties  Destroy soil conservation measures  Remove crop residue from the soil  Detach soil particles • Very weak grassland/rangeland • 30 million heads of cattle management (1st in Africa)!
  • 14. • Free grazing with unbalanced Carrying Capacity
  • 15. The vicious circle of resource degradation and poverty! Famine and Poverty Trap!