Rice and reason: Planning for system complexity in the Indus Basin

By Alan Nicol, Strategic Program Leader at the International Water Management Institute (IWMI)

I was at the local corner store in Uganda last week and noticed the profusion of rice being sold, the origin of which was from either India or Pakistan. It is highly likely that this rice being consumed in Eastern Africa, was produced in the Indus Basin, using Indus waters, and was then processed and shipped to Africa. That is not exceptional in its own right and is, arguably, a sign of a healthy global trading system.

Nevertheless, the rice in question is likely from a system under increasing stress, one that is often simply viewed as a hydrological (i.e., basin) unit. What my trip to the corner store shows is that perhaps more than ever before a system such as the Indus is no longer confined–it extends well beyond its physical (hydrological) borders.

Not only does this rice represent embedded ‘virtual’ water (the water used to grow and refine the produce), but it also represents policy decisions, embedded labor value, and the gamut of economic agreements between distribution companies and import entities, as well as the political relationship between East Africa and South Asia. On top of that are the global prices for commodities and international market forces.

In that sense, the Indus River Basin is the epitome of a complex system in which simple, linear causality may not be a useful way for decision makers to determine what to do and how to invest in managing the system into the future. Integral to this biophysical system, are social, economic, and political systems in which elements of climate, population growth and movement, and political uncertainty make decisions hard to get right.

Like other systems, it is constantly changing and endlessly complex, representing a great deal of interconnectivity. This poses questions about stability, sustainability, and hard choices and trade-offs that need to be made, not least in terms of the social and economic cost-benefit of huge rice production and export.

An aerial view of the Indus River valley in the Karakorum mountain range of the Basin. © khlongwangchao | Shutterstock

So how do we go about planning in a system that is in such constant flux?

Coping with system complexity in the Indus is the overarching theme of the third Indus Basin Knowledge Forum (IBKF) being co-hosted this week by the International Centre for Integrated Mountain Development (ICIMOD), the International Institute for Applied Systems Analysis (IIASA), the International Water Management Institute (IWMI), and the World Bank. Titled Managing Systems Under Stress: Science for Solutions in the Indus Basin, the Forum brings together researchers and other knowledge producers to interface with knowledge users like policymakers to work together to develop the future direction for the basin, while improving the science-decision-making relationship. Participants from four riparian countries–Afghanistan, China, India, and Pakistan–as well as from international organizations that conduct interdisciplinary research on factors that impact the basin, will work through a ‘marketplace’ for ideas, funding sources, and potential applications. The aim is to narrow down a set of practical and useful activities with defined outcomes that can be tracked and traced in coming years under the auspices of future fora.

The meeting builds on the work already done and, crucially, on relations already established in this complex geopolitical space, including under the Indus Forum and the Upper Indus Basin Network. By sharing knowledge, asking tough questions, and identifying opportunities for working together, the IBKF hopes to pin down concrete commitments from both funders and policymakers, but also from researchers, to ensure high quality outputs that are of real, practical relevance to this system under stress–from within and externally.

Scenario planning

Feeding into the IBKF3, and directly preceding the forum, the Integrated Solutions for Water, Energy, and Land Project (ISWEL) will bring together policymakers and other stakeholders from the basin to explore a policy tool that looks at how best to model basin futures. This approach will help the group conceive possible futures and model the pathways leading to the best possible outcomes for the most people. This ‘policy exercise approach’ will involve six steps to identify and evaluate possible future pathways:

  1. Specifying a ‘business as usual’ pathway
  2. Setting desirable goals (for sustainability pathways)
  3. Identifying challenges and trade-offs
  4. Understanding power relations, underlying interests, and their role in nexus policy development
  5. Developing and selecting nexus solutions
  6. Identifying synergies, and
  7. Building pathways with key milestones for future investments and implementation of solutions.

The summary of this scenario development workshop and a vision for the Indus Basin will be shared as part of the IBKF3 at the end of the event, and will help the participants collectively consider what actions can be taken to ensure a prosperous, sustainable, and equitable future for those living in the basin.

The rice that helps feed parts of East Africa plays a key global role–the challenge will be ensuring that this important trading relationship is not jeopardized by a system that moves from pressure points to eventual collapse. Open science-policy and decision-making collaboration are key to making sure that this does not happen.

This blog was originally published on https://wle.cgiar.org/thrive/2018/05/29/rice-and-reason-planning-system-complexity-indus-basin.

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Impressions and messages from the Vienna Energy Forum and the R20 Austrian World Summit 2018

By Beatriz Mayor, Research Scholar at IIASA

On 14 and 15 May, Vienna hosted two important events within the frame of the world energy and climate change agendas: the Vienna Energy Forum and the R20 Austrian World Summit. Since I had the pleasure and privilege to attend both, I would like to share some insights and relevant messages I took home with me.

Beatriz Mayor at the Austrian World Summit

Beatriz Mayor at the Austrian World Summit © Beatriz Mayor

To begin with, ‘renewable energy’ was the buzzword of the moment. Renewable energy is not only the future, it is the present. Recently, 20-year solar PV contracts were signed for US$0.02/kWh. However, renewable energy is not only about mitigating the effects of climate change, but also about turning the planet into a world we (humans from all regions, regardless of the local conditions) want to live in. It is not only about producing energy, about reaching a number of KWh equivalent to the expected demand–renewables are about providing a service to communities, meeting their needs, and improving their ways of life. It does not consist only of taking a solar LED lamp to a remote rural house in India or Africa. It is about first understanding the problem and then seeking the right solution. Such a light will be of no use if a mother has to spend the whole day walking 10 km to find water at the closest spring or well, and come back by sunset to work on her loom, only to find that the lamp has run out of battery. Why? Because her son had to take it to school to light his way back home.

This is where the concept of ‘nexus’ entered the room, and I have to say that more than once it was brought up by IIASA Deputy Director General Nebojsa Nakicenovic. A nexus approach means adopting an integrated approach and understanding both the problems and the solutions, the cross and rebound effects, and the synergies; and it is on the latter that we should focus our efforts to maximize the effect with minimal effort. Looking at the nexus involves addressing the interdependencies between the water, energy, and food sectors, but also expanding the reach to other critical dimensions such as health, poverty, education, and gender. Overall, this means pursuing the Sustainable Development Goals (SDGs).

VEF2018 banner

Vienna Energy Forum banner created by artists on the day © UNIDO / Flickr

Another key word that was repeatedly mentioned was finance. The question was how to raise and mobilize funds for the implementation of the required solutions and initiatives. The answer: blended funding and private funding mobilization. This means combining different funding sources, including crowd funding and citizen-social funding initiatives, and engaging the private sector by reducing the risk for investors. A wonderful example was presented by the city of Vienna, where a solar power plant was completely funded (and thus owned) by Viennese citizens through the purchase of shares.

This connects with the last message: the importance of a bottom-up approach and the critical role of those at the local level. Speakers and panelists gave several examples of successful initiatives in Mali, India, Vienna, and California. Most of the debates focused on how to search for solutions and facilitate access to funding and implementation in the Global South. However, two things became clear­. Firstly, massive political and investment efforts are required in emerging countries to set up the infrastructural and social environment (including capacity building) to achieve the SDGs. Secondly, the effort and cost of dismantling a well-rooted technological and infrastructural system once put in place, such as fossil fuel-based power networks in the case of developed countries, are also huge. Hence, the importance of emerging economies going directly for sustainable solutions, which will pay off in the future in all possible aspects. HRH Princess Abze Djigma from Burkina Faso emphasized that this is already happening in Africa. Progress is being made at a critical rate, triggered by local initiatives that will displace the age of huge, donor-funded, top-down projects, to give way to bottom-up, collaborative co-funding and co-development.

Overall, if I had to pick just one message among the information overload I faced over these two days, it would be the statement by a young fellow in the audience from African Champions: “Africa is not underdeveloped, it is waiting and watching not to repeat the mistakes made by the rest of the world.” We should keep this message in mind.

International Women’s Day at IIASA

Monika Bauer, IIASA Alumni Officer

International Women’s Day is celebrated worldwide every year on 8 March. The event aims to promote the work and rights of women. This year, IIASA celebrated International Women’s Day with a panel discussion which asked the question, “Can a women-empowered world resolve some of the global sustainability challenges?” IIASA Population Researcher Raya Muttarak, moderated the panel that included Tyseer Aboulnasr, Melody Mentz, Shonali Pachauri, and Mary Scholes.

“The IIASA Women in Science Club chose this topic because it would allow the panelists to reflect on the potential welfare benefits of a more gender-balanced world. We wanted to know if balance could benefit both women and men, and we wanted to provide a space to discuss the potential intersectionality of the challenges to female empowerment such as poverty, racism, sexism, access to education, health autonomy, and resource inequality,” said organizer Amanda Palazzo, IIASA Ecosystems Services and Management researcher.

IIASA Director General and CEO Professor Dr. Pavel Kabat opened the discussion by offering a brief history of International Women’s Day in the context of the early history of IIASA.

Melody Mentz gives her thoughts

Melody Mentz gives her thoughts

Mentz, an independent higher education research and evaluation consultant based in South Africa, spoke about the implications that a gender-balanced world could hold for science and sustainability using the African agricultural system as an example. To this end, she presented a few statistics that show how the African food system intersects with the sustainable development goal of gender equality.

According to the most recent Food and Agriculture Organization of the United Nations study, women do up to 50 % of agricultural labor in Africa (this varies by country). Bearing this fact in mind, women however, own only 10 % of the land in Africa; they receive less than 10% of the investments in agriculture on the continent; and less than 5% of women have access to advisory services. In addition, they hold just 14% of management positions in the sector, and only one in four agricultural researchers on the continent is female.

“There is a huge disparity between the contributions of women, the impact of the current food system on women, and the role that the environment allows them to play,” explained Mentz.

As far as the implications of this are concerned, the first, and perhaps the most obvious, is that we need more women in science. Secondly, according to Mentz, we also need more science for women.

“At an institutional level we [should] start thinking differently about what kind of questions we answer. Those questions don’t have to be focused on women, but rather, should consider the implications for both men and women,” she said.

Thirdly, she argued for more science with women, as many research questions and research designs are not just driven by scientists, but actually originate with the people that researchers are trying to help. Finally, we also need more science about women, meaning that data and indicators of impact need to include gender, especially in the context of Africa.

IIASA Energy Researcher Pachauri reflected on the inequalities that we see in our everyday lives. Her work specializes in household energy access in the developing world.  Pachauri shared an example from an organization called ENERGIA, of which she is a member of the advisory board, where women were included as microentrepreneurs in the delivery of energy in villages. The organization found that female entrepreneurs were more successful and profitable than the men, which they put down to a greater use of social networks and relationships. The example demonstrated how societies can benefit from including women in solutions for everyday problems.

Aboulnasr, a retired electrical engineering professor, focused on the importance of balance – whether it is a balance of genders, social classes, or geography. Aboulnasr eloquently suggested that rather than striving for perfect balance, one should accept a more dynamic and changing balance. She also stated that one should focus on the impact, rather than on the tools. For example, excellent science is a tool for reaching a goal that makes an impact, rather than excellence in science being the goal. Her advice to the audience was to be open to accepting failure in one’s life.

“If you don’t fail in 30% of what you attempt to do, then you have never reached your limits,” she said, and encouraged the audience to stop obsessing about the failures of the past, seek balance, and to not feel guilty.

Scholes, a professor at the University of Witwatersrand in South Africa, approached the question of the day differently. She urged the audience to look at the question from a sustainability perspective, and to ask what role gender has to play in stewardship for the planet. In addition, she asked the audience to consider whether our unstainable use of resources is because of gender inequality, or because of a more underlying misalignment of values, and what type of empowerment might be needed to achieve a more sustainable world.

“As far as we know, this is the first panel discussion hosted at IIASA which has specifically tried to examine the role of women in achieving a sustainable future. We learned that there are pockets of IIASA research already exploring this this issue and that there is room and interest to engage in this discussion in the future,” says Palazzo.

It is clear that there is no simple answer to the issues surrounding the topic of our International Women’s Day panel discussion. The event however, highlighted unique reflections and experiences from each panelist, and the IIASA Women in Science Club will continue to explore and push the discussion forward.  We look forward to updating you soon.

Panel attendees

Some of of the panel discussion attendees wearing red, purple and black themed clothes for International Women’s Day

Less global inequality can improve climate outcomes

By Narasimha Rao, Project Leader of the Decent Living Energy (DLE) Project, IIASA Energy Program

Is there a conflict between reducing global income inequality and combating climate change? This seems like an odd question, given that these challenges have a lot in common. Raising the living standard of the poor for example, makes them resilient to climate impacts; less inequality can mean more political mobilization to establish climate policies; and changes in social norms away from material accumulation can reduce inequality and emissions. Academics have however been curious about the following phenomenon: In many countries, a dollar spent at higher income levels is less energy intensive than at lower income levels (known as “income elasticity of energy”). That is, rich people – although they consume much more in total – spend additional income on services or can afford energy-efficient goods, while the new middle class buy energy-intensive goods, like appliances and cars.

Many imagine China as a template for this type of fast growth. If globally significant, this effect would imply that growth that is more equitable would also be more emissions-intensive, and that we would have to pay particular attention to ensuring that climate policies reach the rising middle class in developing countries. While several studies have examined this phenomenon in specific countries, no one has examined its global significance. We set out to do that.

Energy intensity (MJ per $) lower in a high-growth, low inequality world (green line, Gini=0.29) compared to a low-growth, high inequality world (blue line, Gini=0.45). Gini reflects between-country inequality only.

Our analysis suggests that the energy-increasing effect of lowering inequality is more of a distraction than a concern. We compared scenarios of equitable and inequitable income growth, both within and between countries, assuming the most extreme manifestation of the income elasticity. Within any country, given the slow pace at which inequality typically evolves even with the most extreme known income elasticity and reduction in country inequality, greenhouse gas emissions would increase by less than 8% over a couple of decades. However, when one considers a more equitable distribution of growth between countries, global emissions growth may decrease when compared to growth that occurs in industrialized countries. This is because poorer countries have more potential for technological advancements that reduce the energy intensity of growth than richer countries do. That is, more income growth in poorer countries provides more opportunity for efficiency improvements that influence the emissions of very large populations. Furthermore, China is a poor model for poor countries at large, many of which have relatively low energy intensities, even today.

Climate stabilization at the level aspired to by the Paris Climate Agreement requires that we (i.e. the world) decarbonize to zero annual emissions around 2050, which means that even developing countries have to make aggressive strides towards integrating climate goals into development. Nevertheless, there is no sufficient basis for considering that equitable growth, and by implication the poor’s energy intensity, is part of the problem. To the contrary, the potential for co-benefits from equitable growth for climate change are enormous, but unfortunately under-explored, particularly in quantitative studies. Research should focus on quantifying the role of changing social norms – less consumerism, political mobilization, and other social changes that are typically associated with lower inequality – on reducing greenhouse gases. ­

Reference:

Rao, ND, Min J. Less global inequality can improve climate outcomes. Wiley Interdisciplinary Reviews: Climate Change. 2018;e513. https://doi.org/10.1002/wcc.513

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Cornelius Hirsch: Digging into foreign investment in agriculture

By Parul Tewari, IIASA Science Communication Fellow 2017

Two things are distinctly noticeable when you meet Cornelius Hirsch—a cheerful smile that rarely leaves his face and the spark in his eyes as he talks about issues close to his heart. The range is quite broad though—from politics and economics to electronic music.

Cornelius Hirsch

After finishing high school, Hirsch decided to travel and explore the world. This paid off quite well. It was during his travels, encompassing Hong Kong, New Zealand, and California, that Hirsch started taking a keen interest in economic and political systems. This sparked his curiosity and helped him decide that he wanted to take up economics for higher studies. Therefore, after completing his masters in agricultural economics, Hirsch applied for a position as a research associate at the Austrian Institute of Economic Research and enrolled in the PhD-program of the Vienna University of Economics and Business to study trade, globalization, and its impact on rural areas. Currently, he is looking at subsidies and tariffs for farmers and the agricultural sector at a global scale.

As part of the 2017 Young Scientists Summer Program at IIASA, Hirsch is digging a little deeper to analyze how foreign direct investments (FDI) in agricultural land operate. “Since 2000, the number of foreign land acquisitions have been growing—governmental or private players buy a lot of land in different countries to produce crops. I was interested in knowing why there are so many of these hotspots in the world— sub-Saharan Africa, Papua New Guinea, Indonesia—why are people investing in these areas?,” says Hirsch.

Farming in one of the large agricultural areas in Indonesia ©CIFOR I Flickr

Increased food demand from a growing world population is leading to an increased rate of investment in agriculture in regions with large stretches of fertile land. That these regions are largely rain-fed make them even more attractive for investors as they save the cost of expensive irrigation services. In fact, Hirsch argues that “the term land-grabbing is misleading. It should actually be water-grabbing as water is the foremost deciding factor—even more important than simply land abundance.”

Some researchers have found an interesting contrast between FDI in traditional sectors, such as manufacturing, and the ones in agricultural land. While investors in the former look for stable institutions and good governmental efficiency, FDI in land deals seems to target regions with less stable institutions. This positive relationship between corruption and FDI is completely counterintuitive. Hirsch says that one reason could be that “sometimes weaker institutions are easier to get through when it comes to such vast amount of lands. A lot of times these deals and contracts are oral and have no written proof—the contracts are not transparent anyway.”

For example in South Sudan, the land and soil conditions seem to be so good that investors aren’t deterred despite conflicts due to corrupt practices or inefficient government agencies.

One of the indigenous communities in Madagascar, a place which is vulnerable to land acquisitions © IamNotUnique I Flickr

One area that often goes unnoticed is the violation of land rights of indigenous communities. If a government body decides to sell land or give out production licenses to investors for leasing the land without consulting the actual community, it is only much later that the affected community finds out that their land has been given away. Left with no land and hence no source of livelihood, these communities are forced to migrate to urban areas.

A strain of concern enters his voice as Hirsch talks about the impact. “Land as big as two times the area of Ecuador has been sold off in the past—but it accounts for a tiny percentage of the global production area.” With rising incomes and greater consumption of meat, a lot of land is used to produce animal feed crops. “This is a very inefficient way of using land,” he says.

During the summer program at IIASA, Hirsch is generating data that will help him look at these deals in detail and analyze the main factors that are taken into consideration before finalizing a land deal. At the moment he is only able to give an overview of land-grabbing at the global level. With more data on the location of the deals he can look at the factors that influence these decisions in the first place such as the proximity between the two countries involved in agricultural investments and the size of their economies.

While there is always huge media coverage when a scandal about these land acquisitions comes out in the open, Hirsch seems determined to dig deeper and uncover the dynamics involved.

About the researcher
Cornelius Hirsch is a research associate at the Austrian Institute of Economics and Research (WIFO). At IIASA he is working under the supervision of Tamas Krisztin and Linda See in the Ecosystems Services and Management Program (ESM).

This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.