On the request of ALive, Cees de Haan participated in Nairobi from February 6-9, 2007 in a workshop on the Total Economic Value (TEV) of Pastoralism, organized by the World Initiative for Sustainable Pastoralism (WISP), an IUCN activity supported by GEF. The main conceptual framework for assessing TEV was developed by the International Institute for Environment and Development (IIED).
The workshop was organized to review the methodology of TEV, and discus with six partners for counties with a strong pastoral sector (Peru, Mali, Ethiopia, Kenya, Iran and Kyrgyz Republic ), the implementation of country evaluation. Under the TEV approach, the following components of the pastoral system are valuated:
(a) Direct values:
· Economic activity values, marketed products such as milk, meat and hides, inputs to supply chains (see below);
· Livelihood activity production for subsistence, non-timber forest (rangeland) products, such as firewood, Gum Arabic, as well as stock accumulation, insurance etc;
· Service provision and other factors, such as social-cultural values and building of social capital for peace.
(b) Indirect values
· Economic activity, such as inputs into agriculture, and tourism;
· Environmental benefits, such as maintaining vegetation, and tree regeneration.
The results are to be used to alert policy makers to the value of pastoralism, and indeed the first estimates of the TEV are impressive, even without valuing the service provision and indirect values. For example a rather detailed case study around Arusha on the traditional roast meat chain from pastoral cattle showed an annual turnover of US $ 86 million, and it was calculated that each head of cattle slaughtered contributes to the Tanzanian economy with 0,24 full time job, with 1.07 dependent, and US $ 172 in value added. A very tentative estimate of the direct values, including the backward and forward linkages, shows a contribution of the pastoral sector to the Kenyan GDP (note total GDP) between 5 and 25 percent.
However, more work is needed on the environmental costs and benefits, alternative uses of the land (crops), and the valuing of some of the other service provision. Giving a high priority to the environmental costs and benefits is important, now that the concept of "Pastoralists as Landscape Managers" gains importance in the literature. I therefore argued in the meeting for more attention to this aspect, and also for looking not only at pastoral system, but expanding it to dryland systems.
For ALive, this approach can be important in its advocacy work, and in particular, in getting greater attention for the livestock sector in the PRSP process, which is one of its main products this year.
The global report is already available on the WISP website, in pdf form (link).