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SOLUTION for
DESERTIFICATION
Resolving Desertification in the Chaco Province, Argentina
Innovative Finance for the Chaco Province, Argentina
Background
 Desertification in the Chaco Province was created by the transformation of
forests into land to grow soy.
 Both the province and the country, Argentina, are bankrupt.
 The companies dedicated to Soy and cattle have no incentives to change their
main business and practices.
The Missing Link in Protecting Forests is
financing
 http://forest-trends.org/blog/2016/08/15/missing-link-protecting-forests-
private-sector/
 Link the case study with other practitioners around the globe to be able to
share practices through the World Bank Global Delivery Initiative Platform to
include the knowledge of the MDBs and International Organisations.
PROPOSAL
 Creation of financial flows to be oriented to the reforestation of the desertified area.
 Development of community agroforestry projects, balancing agriculture production and
ecosystems preservation, for better product quality, and resilience of the productive
ecosystem. Community-led projects with full empowerment of farmers and communities,
multiple benefits for the production, the ecosystem, families and society.
 Upload the case study in ”The Global Delivery Library” where one can network to
connect with other practitioners and use it as one stop shop to escalate it and link other
Multilateral organisations as well as International Organisations in providing evidence to
their policies.
http://globaldeliveryinitiative.org
 Create a certification that will bring in new privately funded resources that can be
promoted to develop the area as it was done in Colombia:
https://www.minagricultura.gov.co/tramites-servicios/apoyos-
incentivos/Paginas/Certificado-de-Incentivo-Forestal-CIF-2013-v2.aspx
IDEA
Bring the PUR project into effect in the Chaco Region
Follow the guidelines of the case studies of the World Bank
Initiatives of the world bank group
PLAN
 Escalate and reproduce the PUR project by insetting business and supply
chains and co/financing strategies to involve final consumers or other
partners.
 Work with policy makers on the local supply chains (traders, processors,
exporters, roaster, retailers) and make sure that a part of the production
remains in the country.
 Work with Government to offset the carbon footprint which will benefit
companies by reimbursing 100% of their investment in reforestation with tax
reduction
Model that is already
working…
 PUR PROJET
http://www.purprojet.com//
LINK WITH OTHER AGROFORESTRY PROJECTS IN THE REGION
 Alto Huayabamba - Agroforestry project in Peru (Eng)
https://youtu.be/Ce4FPo3cOUI
 Ecosia: Superheroes of the web
https://www.youtube.com/watch?v=I58hDYu5oKQ
Develop local capacity to issue ideas as the ECOSIA founder for their own
development
 10 Questions and Answers about Ecosia
https://www.youtube.com/watch?v=NEL6lq4itTk
Scale
 The target audience is to start from the grassroot to influence the community, the municipality, the
government, the constituents and policy makers.
 The local farmers will start to join the cooperatives (COOPs) that will implement the PUR model and
influence their own development to unlock investment opportunities
 The COOPs could mitigate the credit risk amongst investors by creating new levels of procedures and
controls to manage price risk and make the experts analyse the former correlations in prices between inputs
and outputs to face volatile supply and demand pricing rather than one grounded in production costs to face
the uncertain supply.
 The catalyse effect across countries and sectors can be done either at a regional or international level could
be done with the help of multilateral organizations and development banks through a Private Public
Partnership (PPP).
 It is important to work on the knowledge base of the farmers and the entrepreneurial skills of the COOPs
boards or leaders. In addition to finance/credit, e,g business development and other non-financial services
for cooperatives, it is important to work on the knowledge base of the farmers and the entrepreneurial
skills of the COOPs boards or leaders. Communication efforts through their mobile networks and creation of
APPs to have immediate access to any need that may arise will be essential to evidence the transparency of
the process.
 The government could minimize the competition with elite farmers through taxes. A cooperative is taxed on
income at corporate rates, but patronage refunds are tax deductible to the Cooperative if specified rules
are met.
 Through a very transparent process where stakeholders take responsibility not only for their rights but also
of their duties, a planned PPP strategy with clear outputs and results as well as specific return deadlines
will be key to finance the reforestation of Chaco.
Insetting business Model

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Financing for Development

  • 1. SOLUTION for DESERTIFICATION Resolving Desertification in the Chaco Province, Argentina Innovative Finance for the Chaco Province, Argentina
  • 2. Background  Desertification in the Chaco Province was created by the transformation of forests into land to grow soy.  Both the province and the country, Argentina, are bankrupt.  The companies dedicated to Soy and cattle have no incentives to change their main business and practices.
  • 3. The Missing Link in Protecting Forests is financing  http://forest-trends.org/blog/2016/08/15/missing-link-protecting-forests- private-sector/  Link the case study with other practitioners around the globe to be able to share practices through the World Bank Global Delivery Initiative Platform to include the knowledge of the MDBs and International Organisations.
  • 4. PROPOSAL  Creation of financial flows to be oriented to the reforestation of the desertified area.  Development of community agroforestry projects, balancing agriculture production and ecosystems preservation, for better product quality, and resilience of the productive ecosystem. Community-led projects with full empowerment of farmers and communities, multiple benefits for the production, the ecosystem, families and society.  Upload the case study in ”The Global Delivery Library” where one can network to connect with other practitioners and use it as one stop shop to escalate it and link other Multilateral organisations as well as International Organisations in providing evidence to their policies. http://globaldeliveryinitiative.org  Create a certification that will bring in new privately funded resources that can be promoted to develop the area as it was done in Colombia: https://www.minagricultura.gov.co/tramites-servicios/apoyos- incentivos/Paginas/Certificado-de-Incentivo-Forestal-CIF-2013-v2.aspx
  • 5. IDEA Bring the PUR project into effect in the Chaco Region Follow the guidelines of the case studies of the World Bank Initiatives of the world bank group
  • 6. PLAN  Escalate and reproduce the PUR project by insetting business and supply chains and co/financing strategies to involve final consumers or other partners.  Work with policy makers on the local supply chains (traders, processors, exporters, roaster, retailers) and make sure that a part of the production remains in the country.  Work with Government to offset the carbon footprint which will benefit companies by reimbursing 100% of their investment in reforestation with tax reduction
  • 7. Model that is already working…  PUR PROJET http://www.purprojet.com// LINK WITH OTHER AGROFORESTRY PROJECTS IN THE REGION  Alto Huayabamba - Agroforestry project in Peru (Eng) https://youtu.be/Ce4FPo3cOUI  Ecosia: Superheroes of the web https://www.youtube.com/watch?v=I58hDYu5oKQ Develop local capacity to issue ideas as the ECOSIA founder for their own development  10 Questions and Answers about Ecosia https://www.youtube.com/watch?v=NEL6lq4itTk
  • 8. Scale  The target audience is to start from the grassroot to influence the community, the municipality, the government, the constituents and policy makers.  The local farmers will start to join the cooperatives (COOPs) that will implement the PUR model and influence their own development to unlock investment opportunities  The COOPs could mitigate the credit risk amongst investors by creating new levels of procedures and controls to manage price risk and make the experts analyse the former correlations in prices between inputs and outputs to face volatile supply and demand pricing rather than one grounded in production costs to face the uncertain supply.  The catalyse effect across countries and sectors can be done either at a regional or international level could be done with the help of multilateral organizations and development banks through a Private Public Partnership (PPP).  It is important to work on the knowledge base of the farmers and the entrepreneurial skills of the COOPs boards or leaders. In addition to finance/credit, e,g business development and other non-financial services for cooperatives, it is important to work on the knowledge base of the farmers and the entrepreneurial skills of the COOPs boards or leaders. Communication efforts through their mobile networks and creation of APPs to have immediate access to any need that may arise will be essential to evidence the transparency of the process.  The government could minimize the competition with elite farmers through taxes. A cooperative is taxed on income at corporate rates, but patronage refunds are tax deductible to the Cooperative if specified rules are met.  Through a very transparent process where stakeholders take responsibility not only for their rights but also of their duties, a planned PPP strategy with clear outputs and results as well as specific return deadlines will be key to finance the reforestation of Chaco.