Payments for environmental services (PES) are increasingly discussed as appropriate mechanisms for matching the de mand for environmental services with the incentives of land users whose actions m odify the supply of those environmental services. While there has been considerable discussion of the institutional mechanisms for PES, relatively little attention has been given to the inter-relat ionships between PES institutions and other rural institutions. This paper presents and builds upon the proposition that both the function and welfare effects of PES institutions depend crucially on the co-institutions of collective action (CA) and property rights (PR).
The project reviews Payments for Environmental Services (PES) schemes and other instruments to remunerate positive externalities in agriculture with the purpose of establishing the basis for informed decision-making on ecosystem services and food security, as a contribution to sustainable agriculture and rural development.
These guidelines are aimed primarily at all those involved in making policies at national and regional levels, such as decision-makers, civil servants and key policy advisors. Their function is to support increased recognition of agroforestry benefits, facilitate the development of policies promoting agroforestry systems and educate those that constrain agroforestry at the national level.
The guidelines present a set of principles rather than prescribed methods. They advise how to integrate agroforestry into policies, particularly helping countries to formulate policies for their specific conditions. They provide examples of good practices and success stories, as well as lessons learned from challenges and failures.
They are designed as an entry point for policy creation or change. In cases where agroforestry policy is completely absent, they can assist in creating awareness of agroforestry systems and show how, through innovative policy design taking trees, crops and animal production into account, policy issues can be addressed. In other cases, where agroforestry is recognized in policy frameworks, the guidelines can assist in improving the economic, social and policy context, so that incentives for practising agroforestry are strengthened.
Pakistan has great potential in agriculture. About 27 percent of the total 79.6 million hectares of the country is under cultivation. Agriculture contributes about 24 percent of the GDP and employs 47 percent of the labour force. Most subsectors of agriculture have either remained static or have declined during the last three decades, with the exception of livestock. Therefore, there is considerable scope for improvement in production and in the processing of primary output. The World Bank, working in partnership with local and international collaborators, including the Investment Centre of FAO, has identified key areas that require priority interventions if the agricultural sector is to address the challenges of rural poverty, and maximize its contribution to export growth and national development. These areas are:
• Agricultural research and extension
• The seed sector
• Water resources
• Rural finance
This document outlines in detail the rationale for an intervention as well as the possible investment areas to support the Government of Pakistan in each subsector. Potential interventions that the Bank could champion are summarized below for each of these areas. The Bank appreciates that it is important that it work closely with all relevant stakeholders, and in particular, the National Agriculture Forum, in addressing the bottlenecks that are impairing the growth prospects of Pakistan’s agricultural sector.