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Smallholders role in green economy: challenges and opportunities

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Presentation by Sonya Dewi at a side event hosted by the Indonesia Government at the UNFCCC Paris COP21

Publicado en: Medio ambiente
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Smallholders role in green economy: challenges and opportunities

  1. 1. Smallholders' Roles in Green Economy: Challenges and Opportuni;es Sonya Dewi, Andree Ekadinata, Mohammad Sofiyuddin, Feri Johana and Meine van Noordwijk Making Green Economy Work: Exploring Potential Mitigation Actions in Indonesia, Indonesia Pavilion, Paris, December 1, 2015
  2. 2. Green Economy land-based Land-use decision makings Land-use policies Land-use planning Land mngmnt Land govrnc Land economics Ecosyst. Services MulF- actors
  3. 3. •  Developed by Johann Heinrich von Thunen in the early 1800’s (19th century) •  Based on the layout of Rostock, Germany
  4. 4. INDONESIA CONTEXT
  5. 5. ICRAF Unpublished data
  6. 6. ICRAF Unpublished data
  7. 7. Spatial continuum
  8. 8. UF LOF AF Estate Cropland 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Urban Peri-urban Rural Forest margin 1990 UF LOF AF Timber_Plt Estate Shrub Cropland Grass Bareland SeZlement UF LOF AF 0 10 20 30 40 50 60 70 80 90 Urban Peri-urban Rural Forest margin Millions 1990 UF LOF AF Timber_Plt Estate Shrub Cropland Grass Bareland SeZlement UF LOF AF Estate Cropland SeZlement 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Urban Peri-urban Rural Forest margin 2010 UF LOF AF Timber_Plt Estate Shrub Cropland Grass Bareland SeZlement UF LOF AF Estate 0 10 20 30 40 50 60 70 80 90 Urban Peri-urban Rural Forest margin Millions 2010 UF LOF AF Timber_Plt Estate Shrub Cropland Grass Bareland SeZlement
  9. 9. •  As distance from city center increases, cost of land goes down •  Decision to grow certain crops in certain places is based on profit •  Profit= Market Price – ProducFon Costs •  ProducFon costs include cost of labor, equipment, and transportaFon Land rent and land use decision making
  10. 10. Hypotheses of land use decision making •  The further from city centers, the less intensively managed lands are, i.e., returns to land is less important, since land rent is lower •  The further from city centers, as the populaFon density is lower, the scarcer labor is, i.e., returns to labor is more important BUT …
  11. 11. Three other factors •  Land-based economic actors that might hinder social equiFes –  Large scale companies: concessions over large conFguous areas close to forests. Management needs high capitals to start with –  Intermediate investors: investors from nearby oben to use smallholders to grab lands –  Smallholders: local and migrant farmers •  Urgent societal needs for Ecosystem services close to city centers where populaFon is concentrated, e.g., watershed buffering capaciFes •  FluctuaFons in yields and prices, therefore profitability creates uncertainty and might lead to vulnerability of smallholders
  12. 12. LAND-USE OPTIONS
  13. 13. Spa;al variability: Returns to Land and Returns to Labor?
  14. 14. Smallholder Agroforestry Systems in Indonesia Woodlots on karst landscape Intercropped teak hedgerows Timber alley farming Fruit-based multistrata (Homegarden) SabasFan & Roshetko, 2015
  15. 15. Rubber Agroforests (RAF) Rubber monoculture Complex RAF Simple RAF From: Tata, Joshi, van Noordwijk, 2009
  16. 16. Biodiversity: Similarity between RAF and forest Similarity Index Species Genus Family Jaccard 0.44 0.68 0.84 Morishita-Horn 0.19 0.34 0.84 Source: Rasnovi (2006) [RAF is almost similar to forest at family level, but not at species level] From: Tata, Joshi, van Noordwijk, 2009
  17. 17. Rarity of species - the IUCN Red List (Tata et al., 2008) IUCN status Forest RAF Uses Critically Endangered (ER) 6 species 3 species Timber Endangered (EN) 6 species 1 species Timber Vulnerable (VU) 5 species 2 species Timber, resin, food Lower Risk (LR) 14 species 13 species Timber, food, latex, resin, dye, oil seed, [Farmers maintain species diversity in RAF, as long as they provide valuable products for livelihoods and cultural purposes] From: Tata, Joshi, van Noordwijk, 2009
  18. 18. Category Species no. iden;fied in Forest Species no. iden;fied in RAF Source Mammal diversity 10 species (4 in forest only) 37 species; 9 endangered species Calestreme, 2004 (unpublished) Bat diversity 4 species (3 species in forest only) 10 species Prasetyo, 2007; Joshi, et al., 2008 (unpublished) Primate diversity 2 species (1 species in forest only) 6 species Calestreme, 2004; Hariyanto, 2007a (unpublished report) Bird diversity 67 species (33 species in forest only) 167 species; 28 species protected 10 species listed in the CITES Beukema et al., 2007 (Agroforestry System) Dung Beetle diversity 37 species (6 species in forest only) 33 species Hariyanto , 2007b (unpublished) Studies on fauna diversity in RAF in Jambi: From: Tata, Joshi, van Noordwijk, 2009
  19. 19. Es;ma;on of annual family cash-flow of rubber farmer (Wibawa, 1998) No. Descrip;on Total (Thousand of IDR) Propor;on (%) A. Income: Rubber 4,819 (69) Other farm 1,424 (20) Off-farm 768 (11) Sub Total 7,011 (100) B. Expenses: ConsumpFon (mainly food) 4,344 (68) EducaFon 46 (1.0) Others (cloth, social, etc.) 2,028 (31) Sub total 6,418 (100) C. Investment 512 D. Saving 171
  20. 20. Stabilizing or maximizing? -150% -100% -50% 0% 50% 100% 150% 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 Differences between annual profit with fluctuating price and yield and with constant price and yield Monoculture rubber Rubber agroforest -  Mean annual profit in Monoculture rubber is higher than that Rubber AF -  The lowest annual profit of Monoculture Rubber is much lower than that of Rubber agroforest ICRAF Unpublished data
  21. 21. SMALLHOLDERS’ ROLES AND AGROFORESTRY
  22. 22. Agroforestry as a win-win-win solu;on •  Space for smallholders to play roles and get benefits •  Ecosystem services: CC miFgaFon, watershed protecFon, biodiversity, soil ferFlity, etc •  Stabilizing income in fluctuaFng prices and yields to reduce vulnerability BUT: diminishing in extent, non-existent in development policies, not recognized as ES providers
  23. 23. Smallholders’ roles towards Green Economy Peri-urban Rural Forest Margin Forest Margin with LO w/o LO S t r a t e g i e s E n a b l i n g c o n d • Maximizing returns to land to meet demands for goods • Maximizing returns to land to meet demands for ES •  Sustaining high returns to land •  Avoiding risks from uncertainFes in yields and prices •  Maximizing returns to labor inspite of land compeFFon •  Retaining ES in pivotal areas through restoraFon and conservaFon •  Maximizing returns to labor •  Conserving and protecFon • Best pracFces in land management • BeZer value chain for products • OperaFonal PES/RES in pivotal areas to keep the low intensity land use opFon aZracFve •  Inclusive, integraFve and informed land- use planning •  Agric. Policies to reduce social costs •  DiversificaFon at plot and household levels •  BeZer value chain •  CapaciFes to conduct best pracFces •  Land-use planning and zoning •  Land allocaFon policies that allow smallholders to have access to land •  Partnerships with private sectors •  EffecFve govt restoraFon programs •  BeZer capaciFes •  Permit issuance that is transparent and fair •  Partnerships with govt for stewardships •  CBFM, Village forests Agroforestry as a common land use option across continuum
  24. 24. Opportuni;es •  Smallholders’ roles leads to equity •  Land resource allocaFon policy •  Payment or Rewards for Ecosystem services schemes are exisFng •  RestoraFon in peat and mineral, aber fire and prevenFon •  BeZer technology are widely available •  Partnerships with private sectors •  CC miFgaFon and adaptaFon funds
  25. 25. Economic grwoth 11% CommuniFes' wellbeing 18% Local Wisdoms 5% Sustainable Environment 17% Social Equity 7% CommuniFes' roles in Managing Land Resources 22% Good Land governance 20% ICRAF Unpublished data What cons;tute Green Economy? A perspec;ve from Papua
  26. 26. Mul;ple SDGs addressed
  27. 27. THANK YOU Photo: Gerhard SabasFan

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