DPG – Environment and Natural Resources Presentation to DPG meeting 7/6

1. DPG – Environment and Natural ResourcesPresentation to DPG meeting 7/6 Overview of presentation • Background for presentation • Nature of Natural Resources sectors • Important issues in Natural Resources sectors • Lost opportunities for poverty reduction, growth and revenue generation • Analysis and underlying causes for current situation • Action already taken • Solutions • Recommendations to DPG • Discussion today

2. Background (1) • DPG-E Terms of Reference: • Not new ToR, from when DPG = DAC, but still relevant • ”To increase the effectiveness of DPs efforts to support a concerted environment and Natural Resources agenda and provide coordinated contributions and inputs” • Reference to (still existing) Informal Discussion Group on Environment (IDGE) with wide range of stakeholders e.g. NGOs, researchers etc. • New members contact merped@um.dk

3. Background (2) Retreat held in DPG-E in January 2005 • Objective: • To take stock of current situation in the sector • Identify opportunities for further harmonisation & alignment in support to Government’s MKUKUTA and new Environmental Management Act • Result: • Common features identified, such as wide gap between policies and planning and action on ground, ”unhealthy” links between unsustainable private sector and parts of government and the need to empower communities and civil society • Briefly presented for DPG in March, and agreement on more comprehensive presentation of issues in Forestry, Fisheries & Wildlife today NB! Draft briefs - compromises, snapshots, comments welcome NB! Data scarce and estimates prevailing

4. Nature of Natural Resources Sectors • State assets, common property, user rights and ownership • Extraction and utilisation versus conservation – sustainable balance • Management tools (or mainly for revenue collection?): Licenses, concessions, trophy fees etc. • Retention partly financing government institutions and/or semi public institutions

5. Issues in the Natural Resources Sectors (1) • Contributions from Natural Resources to Tanzania's development important, but unacknowledged: • Livelihoods - food, employment, income e.g. wildlife most important protein to 2/3 of Tanzanians • Foreign exchange e.g. forestry 10% and fisheries 12% • Revenue collection e.g. fisheries 9,7 billion Tsh in 2004, tourism revenue rates, based primarily on wildlife, app. 30% growth rate annually Tanzania’s economy natural resource based – Top 3 growth and export sectors are Mining, Tourism and Fisheries & importance for livelihoods (subsistense)

6. Issues in the Natural Resources Sectors (2) • Potential contributions larger, if resources were managed building on principles of good governance • Policy and legal framework largely in place, except for fisheries, but not implemented • Irregularities and sub-optimal management prevail: • ”log scam”, de facto investor hostile environment, delay in establishment of WMAs, inadequate regulation of fisheries/no quotas in fisheries

7. Lost opportunities for poverty reduction, growth and revenue generation (1) • Poverty - poor communities depending on: • Own consumption e.g. firewood for cooking, fish and bush meat for protein intake etc. • Income from sale of processed/un-processed resources, e.g. honey, dried fish, charcoal etc. • Employment (and income) in resource utilisation, e.g. jobs in tourism, fish industry etc. BUT: • Development not pro-poor, e.g. not sufficient number of jobs created in Tanzania, benefits not always shared • Provision exist for community-based management in legal frameworks, but not implemented, or too costly

8. Lost opportunities for poverty reduction, growth and revenue generation (2) • Growth • Knowledge about abundance and exploitation limited – sustainable growth difficult to predict BUT POTENTIAL EXIST: • Transforming poorly managed state owned forest plantation (135-230,000 ha) into private enterprises • Growth in Marine fisheries, but probably not in Lake Victoria • Wildlife (game viewing) tourism expansion in south, but not north NB! Natural Resources can limit growth in other sectors, e.g. forest produce energy and 95% of energy supplied by forests

9. Lost opportunities for poverty reduction, growth and revenue generation (3) • Revenue Generation • Limited information about value of resources, lack of transparency and corrupt practices - loss of revenue e.g. annual license for foreign fisheries vessel equals earnings from 1 day catch! • Revenue collection not used as a management tool to guide/direct resource exploitation to specific resources/species and geographical areas, to ensure sustainability and no erosion of wealth base

10. Analysis and underlying causes • Lack of knowledge about resources and utilisation • Lack of full understanding about legal framework • Lack of capacity and willingness to implement (not same for individual sectors) Creation of a poor governance environment: • ”Unhealthy” links between unscrupulous private sector and parts of government: • Log scam leading to suspensions but no charges • Hunting concessions awarded by few government officials without transparency • Illegal ivory trade

11. Action already taken • MKUKUTA acknowledge natural resources & new act emphasise importance of environment • DPs support strengthening and capacity building for implementation of existing legal framework (incl. support a common regulatory framework for fisheries in mainland and Zanzibar), & address specific cases of irregularities • DPs committed to harmonisation, and broad sector perspective – including private sector and civil society (e.g. forestry SWAp initiated) • Harmonisation a challenge for government, but relatively new Environmental Working Group is step in right direction

12. Solutions • Implementation of existing legal framework, besides adjustments of it (e.g. fisheries regulation, and ammendments to Forest Act) • This will create ”correct” incentives for sustainable management for the benefit of Tanzania: • ”Healthy” private sector involvement e.g. removing de facto hostile investor barriers and creating effective market based competition • Securing rights to resources of communities, and strengthen their capacity for management • Government officers willing and able to implement legal framework

13. Recommendations to DPG Recommendations in line with existing international commitments of DPs, e.g. MDG • Raise awareness on importance of natural resources for sustainable development of Tanzania • Promote good governance in natural resources sectors to address sub-optimal management • Continue support to natural resources sectors, and encourage matching Government investments in the sectors • Continue progress in harmonisation and allignment in the natural resources sectors

14. Discussion today How can we best assist government in improving the management of its national assets, the natural resources?