Improving Management of Natural Resource Revenues in Mongolia
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‘Build back better’ is often easier said than done after a disaster, but one example from the People’s Republic of China shows that it can be done well.
Build back better refers to largely aspirational plans to achieve recovery from disasters that is not only complete but leads to improvements above and beyond the pre-disaster status quo. Build back better is often so vaguely defined that policymakers and analysts can declare their aspiration to build back better as fulfilled, even if the long-term outcome is less than successful. Indeed, the positive evidence for build back better is quite thin, but one notable success story is the Wenchuan earthquake recovery. As documented in our 2009 study, the key to the successful recovery was the massively generous and exceptionally speedy assistance of the People’s Republic of China central government and its unaffected provincial governments.
On May 12, 2008, a massive earthquake measuring 8.0 on the Richter scale struck the southwest area of the People’s Republic of China, followed by a large number of aftershocks. The epicenter was in Wenchuan County, 92 kilometers northwest of the Sichuan provincial capital of Chengdu. The disaster affected 10 provinces and cities, with Sichuan suffering by far most of the damage, including 99% of mortality and morbidity. The most severely affected areas in Sichuan were mountainous, mostly at 3,000 meters above sea level, and economically less-developed and impoverished. But some more developed urban regions such as Chengdu, Deyang and Mianyang were also hit. The earthquake left more than 87,000 people dead or missing, nearly 375,000 injured, and many more displaced.
The earthquake badly damaged or destroyed houses, property, rail transport, power supply, water and sanitation facilities, hospitals and clinics, roads, buildings, and communication networks throughout the affected region. The total reconstruction cost was estimated at RMB 1 trillion, nearly equal to the gross domestic product of Sichuan Province or 3.9% of the national GDP in 2007. The vast majority of households and businesses were not covered by insurance, as is typical for disasters in low- and middle-income countries.
In the People’s Republic of China, the central government took a lead role in rehabilitating Wenchuan after the 2008 earthquake.
In 2009, in response to the global economic crisis and the Wenchuan earthquake, the government passed a massive 4 trillion RMB stimulus package, of which 25% went to earthquake reconstruction. In addition, richer provinces were paired with disaster-affected counties under a fiscal solidarity scheme and were required to put aside 1% of provincial government revenues to assist in the reconstruction work in partner counties. Altogether, those funds far exceeded the ordinary budgets of the earthquake-damaged counties. In addition, by the end of September 2009, 79.7 billion RMB in social contributions had been mobilized from individuals and NGOs inside and outside of the People’s Republic of China.
As a result of massive reconstruction spending, per capita GDP in Sichuan province did not change noticeably during and after the 2008 earthquake except for a marginal reduction of growth in 2008, the year of the earthquake and also of the global financial crisis. A major driver of the quick macroeconomic rebound was the construction sector, which increased rapidly since 2008 and remains strong even years after the reconstruction boom of the immediate post-earthquake period.
Further analysis, using data from a survey conducted among 3,000 rural households ten months after the earthquake, finds that asset and income losses of households were substantial, especially in the hardest hit areas. However, government subsidies for affected households in 2008 were so large that mean income per capita was 17.5% higher in 2008 than in 2007, and the poverty rate actually plummeted from 34% to 19%! Analyzing detailed information on household income from various sources, the survey indeed concluded that households on average were better off after the earthquake.
The four basic criteria for assessing the effectiveness of any build back better effort are safety, speed, inclusiveness, and long-term economic potential. Evidence suggest that the Wenchuan earthquake recovery scores especially high on speed and inclusiveness, and most likely safeguarded the long-term economic potential of the earthquake area. Above all, Wenchuan highlights the indispensable role of a concerted and decisive government recovery effort backed by massive resources for successful build back better. Such generous resourcing, which is the exception rather than the norm, can empower communities to cope with and bounce back from even the most catastrophic disasters.
This article is based on the findings of the ADB report ‘Asian Development Outlook 2019: Strengthening Disaster Resilience.’
Professor of Economics, Victoria University of Wellington, New Zealand
Principal Economist, Economic Research and Regional Cooperation Department, ADB
Principal Economist, Economic Research and Regional Cooperation Department, ADB
This blog is reproduced from Asian Development Blog.
Scaling up ecotourism in Mongolia requires a multi-sector approach that carefully balances conservation and development.
Mongolia’s stunning landscapes and nomadic culture form the basis for a small but rapidly growing tourism industry. Ecotourism—defined by the International Ecotourism Society as “responsible travel to natural areas that conserves the environment, sustains the well-being of local people, and involves interpretation and education”—can provide income for remote communities and revenue for protected areas.
These potential benefits are especially significant for Mongolia. Over 17% (27 million hectares) of the country is designated as parks and reserves – a vast and wild expanse of deserts, steppe, and snow-capped mountains across which herding traditions remain largely unchanged for thousands of years.
Mongolia’s development policies identify tourism as a new and important source of economic diversification and emphasize the need to support ecotourism within and around protected areas. Furthermore, Mongolia is a member of the Central Asia Regional Economic Cooperation (CAREC) Program, which has also prioritized tourism as a key tool for economic benefits.
Yet without planning, tourism can result in environmental and cultural impacts and yield few benefits for local communities. To achieve sustainable tourism development in Mongolia will require a focus on at least four key areas.
First, institutional policies and planning for development and conservation need to be integrated. Similar to many countries, Mongolia’s parks support people as well as nature.
To be effective, park management plans and local development plans must have complementary objectives and targets developed through stakeholder consensus, projections of population and tourism growth, urban and rural planning, and conservation science.
In addition to biodiversity conservation, park regulations and zoning should consider existing settlements, traditional herding lands, and other livelihoods. Facilitating such dialogue is complex but necessary and requires the participation of government, civil society, and the private sector.
At the level of individual parks and reserves, establishing tourism councils can give civil society a voice in tourism and park management. Such councils include village representatives, civil society groups and local government, and aim to foster information exchange and trust between stakeholders.
With time and training, tourism councils can evolve to become “destination management organizations” responsible for managing a park’s tourism, and free up park administrations to focus on conservation.
Tourism concession manuals are another important institutional tool. They establish procedures and environmental and social standards that tour operators are required to abide by, such as minimum standards for waste management, and prioritizing local value chains and employment of residents (e.g. for food supply or guiding).
Improved clarity in the conditions for license application and renewal also provides operators a more stable business framework in which to invest and plan responsibly. UNDP offers detailed guidelines for tourism concession management in Mongolia’s protected areas.
Mongolia sustainable tourism development must focus on 4 key areas
Second, public infrastructure for park management and tourism needs to be established or upgraded. Once clear management objectives for conservation, livelihoods, and tourism are embedded in park and development plans, carefully planned works may include:
Collectively, such infrastructure supports park managers and improves the visitor experience through improved management of visitor access, traffic flows, and protection of core zones. Visitor centers provide tourists a sense of “arrival” and the opportunity to inform tourists of park regulations and local goods and services.
Third, waste management needs to be improved. Most parks in Mongolia lack organized systems for waste collection and disposal. As visitor numbers increase, litter and untreated sewage pollute soil and water resources, impact wilderness values, and reduce visitor satisfaction.
Solutions tailored to Mongolia’s arid landscape and the remoteness of many parks require a combination of approaches, such as:
Finally, park management needs more support. Protected area managers are often faced with limited funds, equipment, and incomplete management plans, yet are tasked with patrolling huge areas (on average, a single ranger in Mongolia is responsible for over 86,000 hectares) and addressing tourism, waste, and dialogue with multiple stakeholders.
These tasks require resources and diverse skillsets ranging from conservation science to stakeholder consultation. Measures include:
Developing tourism while conserving Mongolia’s beautiful wild places and timeless traditions will clearly be challenging. The issues introduced here illustrate the need for a multi-sector approach, in which diverse fields are brought together to balance conservation and development.
Many of these tools are being implemented with support from ADB under the Integrated Livelihoods Improvement and Sustainable Tourism in Khuvsgul Lake National Park project, a 4-year grant funded by the Japan Fund for Poverty Reduction, and new proposed Sustainable Tourism Development project for the country. As Mongolia moves forward with developing ecotourism, there will also be opportunities to learn from and contribute to regional experiences for tourism planning tailored to the cold yet fragile environments of the CAREC region.
Senior Environment Specialist, East Asia Regional Department, ADB
This blog is reproduced from Asian Development Blog.
ADB Vice President Stephen Groff highlighted the long-term partnership with the National Development and Reform Commission on developing the PRC’s eco-compensation agenda in a recorded welcome message shown at the 5th International Conference on Eco-compensation and Payments for Ecosystem Services on 24 November in Kunming.
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Source: Asian Development Bank.
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