Carsten Smith-Hall

Environmental Income and Rural Livelihoods: A Global-Comparative Analysis

Summary This paper presents results from a comparative analysis of environmental income from approximately 8000 households in 24 developing countries collected by research partners in CIFOR’s Poverty Environment Network (PEN). Environmental income accounts for 28% of total household income, 77% of which comes from natural forests. Environmental income shares are higher for low-income households, but differences across income quintiles are less pronounced than previously thought. The poor rely more heavily on subsistence products such as wood fuels and wild foods, and on products harvested from natural areas other than forests. In absolute terms environmental income is approximately five times higher in the highest income quintile, compared to the two lowest quintiles.

People, plants and health: a conceptual framework for assessing changes in medicinal plant consumption

BackgroundA large number of people in both developing and developed countries rely on medicinal plant products to maintain their health or treat illnesses. Available evidence suggests that medicinal plant consumption will remain stable or increase in the short to medium term. Knowledge on what factors determine medicinal plant consumption is, however, scattered across many disciplines, impeding, for example, systematic consideration of plant-based traditional medicine in national health care systems. The aim of the paper is to develop a conceptual framework for understanding medicinal plant consumption dynamics. Consumption is employed in the economic sense: use of medicinal plants by consumers or in the production of other goods.MethodsPubMed and Web of Knowledge (formerly Web of Science) were searched using a set of medicinal plant key terms (folk/peasant/rural/traditional/ethno/indigenous/CAM/herbal/botanical/phytotherapy); each search terms was combined with terms related to medicinal plant consumption dynamics (medicinal plants/health care/preference/trade/treatment seeking behavior/domestication/sustainability/conservation/urban/migration/climate change/policy/production systems). To eliminate studies not directly focused on medicinal plant consumption, searches were limited by a number of terms (chemistry/clinical/in vitro/antibacterial/dose/molecular/trial/efficacy/antimicrobial/alkaloid/bioactive/inhibit/antibody/purification/antioxidant/DNA/rat/aqueous). A total of 1940 references were identified; manual screening for relevance reduced this to 645 relevant documents. As the conceptual framework emerged inductively, additional targeted literature searches were undertaken on specific factors and link, bringing the final number of references to 737.ResultsThe paper first defines the four main groups of medicinal plant users (1. Hunter-gatherers, 2. Farmers and pastoralists, 3. Urban and peri-urban people, 4. Entrepreneurs) and the three main types of benefits (consumer, producer, society-wide) derived from medicinal plants usage. Then a single unified conceptual framework for understanding the factors influencing medicinal plant consumption in the economic sense is proposed; the framework distinguishes four spatial levels of analysis (international, national, local, household) and identifies and describes 15 factors and their relationships.ConclusionsThe framework provides a basis for increasing our conceptual understanding of medicinal plant consumption dynamics, allows a positioning of existing studies, and can serve to guide future research in the area. This would inform the formation of future health and natural resource management policies.

Combining Household Income and Asset Data to Identify Livelihood Strategies and Their Dynamics

ABSTRACT Current approaches to identifying and describing rural livelihood strategies, and household movements between strategies over time, in developing countries are imprecise. Here we: (i) present a new statistical quantitative approach combining income and asset data to identify household activity choice variables, characterise livelihood strategy clusters, and analyse movements between strategies, and (ii) apply the approach using an environmentally-augmented three-wave household (n = 427) level panel dataset from Nepal. Combining income and asset data provides a better understanding of livelihood strategies and household movements between strategies over time than using only income or asset data. Most households changed livelihood strategy at least once over the two three-year periods. A common pathway out of poverty included an intermediate step during which households accumulate assets through farming, petty trading, and migratory work.

Impact of infrastructure on rural household income and inequality in Nepal

Weak public infrastructure may contribute to poverty and inequality. Studies have found that roads are a key factor affecting rural incomes in developing countries. Yet, there is relatively scant evidence of the economic impacts of rural roads at the individual household level. This study contributes to the literature by empirically analysing the effects of rural road construction on household income and income inequality in Nepal. Using a quasi-experimental design, a difference-in-difference approach is developed and employed to analyse household (n = 177) data before and after road construction. We find that the new road had a significantly positive impact on mean household income of USD 235 (28%). Contrary to expectations, we do not find an increase in income inequality. Compared to the counterfactual site, it appears that the road has rather contributed to decreasing income inequality. The poorest households gained most from the road construction, making it a pro-poor development intervention.

How could the bushmeat trade in the Kilombero Valley of Tanzania be regulated? Insights from the rural value chain

Bushmeat trade is a threat to biodiversity in Africa. Information about the bushmeat value chain can inform conservation policies, yet such knowledge is lacking for most of East Africa. We examine the structure and organization of bushmeat markets in three villages in the Kilombero Valley of Tanzania, where illegal hunting is widespread. We base our analysis on 1,855 observations of trade during 1 year (2008–2009) and questionnaire interviews with 325 individuals involved in the trade in 2011. Our results reveal that the trade is large-scale both in volume (1,100 animals, equivalent to 370,000 kg meat per year) and local turnover (USD 210,000 per year) and that several threatened species are hunted. There are no patron–client relationships and hunters, traders and retailers, which are the main actors involved, conduct only basic product upgrading (drying and making packages). The value chain is characterized by governance problems, including widespread rent-seeking and violent enforcement. Although hunting is open-access, lack of access to firearms constitutes an entry barrier, curbing supply and enabling actors to realize supernormal profits. Decentralization of management rights and responsibilities to communities, supplemented by improved firearms control, appears the most realistic option for regulating the trade and preventing further declines of wildlife.

Drivers of Forests and Tree-based Systems for Food Security and Nutrition

With the establishment of the Global Forest Expert Panels (GFEP) initiative in the year 2007, the Collaborative Partnership on Forests (CPF) created an international mechanism which effectively links scientific knowledge with political decision-making on forests. The GFEP responds directly to key forest-related policy questions by consolidating available scientific knowledge and expertise on these questions at a global level. It provides decision-makers with the most relevant, objective and accurate information, and thus makes an essential contribution to international forest governance. This report entitled “Forests, Trees and Landscapes for Food Security and Nutrition” presents the results of the fourth global scientific assessment undertaken so far in the framework of GFEP. Previous assessments addressed the adaptation of forests and people to climate change; international forest governance; and the relationship between biodiversity, carbon, forests and people. All assessment reports were prepared by internationally recognised scientists from a variety of biophysical and social science disciplines. They have all been presented to decision-makers across relevant international policy fora. In this way, GFEP supports a more coherent policy dialogue about the role of forests in addressing broader environmental, social and economic challenges. The current report reflects the importance of policy coherence and integration more than any previous GFEP assessment. It comes at a time when the United Nations General Assembly seeks to adopt a set of Sustainable Development Goals (SDGs) which build upon the Millennium Development Goals (MDGs) and converge with the post-2015 development agenda. In this context, the eradication of hunger, realisation of food security and the improvement of nutrition are of particular relevance. By 2050, the international community will face the challenge of providing 9 billion people with food, shelter and energy. Despite impressive productivity increases, there is growing evidence that conventional agricultural strategies will fall short of eliminating global hunger and malnutrition. The assessment report in hand provides comprehensive scientific evidence on how forests, trees and landscapes can be – and must be - an integral part of the solution to this global problem. In other words, we must connect the dots and see the bigger picture. The review of the International Arrangement on Forests by the member states of the United Nations Forum on Forests provides a unique opportunity to integrate forests into the SDGs in a holistic manner and to promote synergies in the implementation of the post-2015 development agenda across multiple levels of governance. It is my hope that those with a responsibility for forests, food security and nutrition at all levels will find this report, and its accompanying policy brief, a useful source of information and inspiration.

Patterns of change: The dynamics of medicinal plant trade in far-western Nepal

ETHNOPHARMACOLOGICAL RELEVANCE Combined quantitative and qualitative environmental product trade studies, undertaken in the same location over time, are instrumental in identifying plant species with commercial demand and explaining what drives temporal changes. Yet such dynamic studies are rare, including for Himalayan medicinal plants that have been large-scale traded for millennia. AIM OF THE STUDY To (i) investigate changes in medicinal plant trade in the past 17 years, and (ii) identify the main factors driving changes, using a study of Darchula District in far-western Nepal. MATERIALS AND METHODS Medicinal plant production network data were collected from March to August 2016, for the fiscal year 2014-15, for Darchula District in far-western Nepal through 167 quantitative (58 harvesters, 38 sub-local traders, 25 local traders, 25 central wholesalers, and 21 regional wholesalers), 61 qualitative (15 sub-local traders, 19 local traders, 15 central wholesalers, and 12 regional wholesalers) interviews, and four focus group discussions. Results were compared to previously unpublished similar data for Darchula District for the year 1997-98, using quantitative and qualitative interviews with 10 local traders, 20 central wholesalers, and 53 regional wholesalers. Data analysis was guided by an analytical framework derived from Global Production Network theory. Quantitative data were used to estimate changes in 12 indicators while the qualitative information allowed identification of the factors driving observed changes in the indicators. RESULTS The volume of medicinal plants traded from Darchula District in the fiscal year 2014-15 was 401 t with a harvester value of USD 5.5 million, representing a 2.3 fold increase in volume and 17.2 fold increase in value compared to 1997-98. Trade in the two observation years comprised 30 air-dried plant products (from 28 identified species as well as lichens and a mineral substance); 12 products were traded in both periods, while seven disappeared, and 11 new products entered the trade. The number of traders increased from 10 to 63, mainly due to the emergence of a single high value product yarsagumba (Ophiocordyceps sinensis), a fungus-caterpillar complex which alone contributed 85% of total trade value. Over the observed time period, harvesters and traders increased their margins at the cost of central wholesalers, indicating that market changes favoured lower tier actors, eroding the previously identified passive central wholesaler oligopsony in Nepal. Important drivers of market changes are: (i) rising incomes in China and India, expressed through demand for new products and increasing per unit prices for a range of products, (ii) expanding infrastructure (roads and telecommunications) towards and into harvesting sites, reducing transport costs and increasing market efficiency, and (iii) government interventions, causing disappearance of some species from trade. These market changes also led to increased cultivation at lower altitudes, and a sharp increase in the number of processor industries in Nepal. CONCLUSION Trade in medicinal plant products in far-western Nepal in the past two decades has increased substantially, doubling in volume and increasing 17 fold in value. There is a backbone of constantly traded species but also species that disappear from trade and new species that enter. Changes favour harvesters and traders at the benefit of central wholesalers whose previous passive oligopsony is disappearing. The three main drivers of change are rising incomes in China and India, expanding infrastructure, and government interventions in Nepal. Commercial medicinal plant resources are a substantial asset that appears to offer opportunities for economic development in far-western Nepal. The trade, however, may pose sustainability threats that are best understood by combining species-level biophysical, trade, and consumer studies.

Empirically based analysis of households coping with unexpected shocks in the central Himalayas

ABSTRACT Climate change may significantly impact the large number of households in developing countries depending on agricultural production, not least through changes in the frequency and/or magnitude of climatic hazards resulting in household income shocks. This paper analyses rural households’ responses to past experiences of and future expectations to substantial and unexpected negative and positive agricultural income shocks. Empirical data is derived from an environmentally-augmented structured household (n = 112) survey in the high mountains of central Nepal. Multinomial logit regression, using data on rural household demographics, assets (agricultural land, livestock), value of other assets such as furniture, bicycles, and agricultural implements, and income sources showed that household coping choices are determined by opportunities to generate cash. We argue that public policies should enhance the ability of rural household to generate cash income, including through environmental products.