Questions/Answers

Peru is one of the most megadiverse countries in the world; it is the ninth country with the largest forest area, the fourth in the world with the largest tropical forests and the second in the Amazon region after Brazil. However, during 2001-2016, about 1’974,208 hectares of Amazon forests have been deforested. Although Peru is a middle income country, showing positive figures in economic development, their people of native communities as a whole live in extreme poverty, being users of the main safety net programmes. To promote forest conservation and contribute to sustainable development of these native communities, since 2011, the Programa Nacional de Conservación de Bosques (National Programme for Forest Conservation or PNCB for its acronym in Spanish) has implemented a mechanism named Direct Conditional Transfer (DCT). Through this mechanism, Peruvian State and any native community agree a partnership to develop a sustainable project based on the forest: the State commits to finance the project and provide technical assistance subject to the conditions that the community preserves its forest and, carries out the project according with the investment plan previously agree. It is is worth to mention, that the project and the investment plan is not imposed to the community, it is a decision of the community assembly as a result of several meetings with the assistance of specialists of the PNCB. As a result, the PNCB contribute to tackle not only deforestation but intergenerational poverty, since assist communities to develop a sustainable project to improve their livelihood, reaching their financial inclusion as well.

The main objective of the DCTs is to preserve forest as a contribution to mitigate climate change and the sustainable development of the indigenous communities. The goals are achieved through the implementation of sustainable practices, carrying out an investment plan, and daily monitoring of the forests; these activities are performed by the communities, with the close assistance of the PNCB, not only related to the sustainable projects but the monitoring of the forest through the Módulo de Monitoreo de la Cobertura de Bosques (Module for Forest Coverage Monitoring).

“Reaching the poorest and most vulnerable through inclusive services and partnerships” Indigenous people (and peasant and native communities within them) are among the poorest population in Latin America. According to the economic and social sciences literature, and also to the public and development management debate, indigenous people have been marginalized and excluded for many years, and their participation in politics, policy decisions at regional and national arena has been very limited. In short, “indigenous are poorer, everywhere”. In that sense, academic literature and public policy debate agree that to reduce the “indigenous poverty gap” it is necessary to fight discrimination, invest in childhood development and improve economic and participatory skills for indigenous people. For that reason, the effort and work of the PNCB through the TDC mechanism is a viable and sustainable alternative to work together with the poorest and most vulnerable population to empower them, and, at the same time, comply with conservation tasks.

Indigenous communities are located in rural areas, up to two-day travel (walking or sailing) from region capitals, some of them based in a hunter-gatherers economic system. For that reason, they have been permanent ignored, and live in extreme poverty, apart from what is called formality. As a way to free communities away from poverty, the PNCB provides technical assistance to launch projects and make them sustainable; once they are viable, need a more permanent and specialised assistance, so, if projects consist in crops of cocoa or coffee, they will receive assistance from the Ministry of Agriculture, if those are exported, the Ministry of Trade participates, and so on. To achieve successful projects, the PNCB works to develop channels between its partners and public agencies. Besides, since communities receive public funds, they must submit compulsory documents about the State recognition of the community, the tenure of lands, identification of their leaders, etc. Unfortunately, not all the land titles of communities are registered, nor their leaders have IDs. In this scenario, the PNCB provides technical assistance to native community to generate that documentation; this allows other public initiatives to link more easily with the communities, because they “now exist” and are visible.

Two of the main global concerns are deforestation and extreme poverty, and the State has to deliver services to tackle them locally. Considering deforestation, satellites to monitor forests are not enough, since field observation is imperative; however Government cannot work alone, because of the vast territory involved; for that reason, partnerships with indigenous communities are necessary, they provide the workforce to guard their own forest with the technical assistance of the PNCB, what includes satellite images, and training to denounce illegal damage of the forest, and take criminals to courts successfully. In return, our initiative finances communities’ projects and gives them technical assistance, with the purpose of making them sustainable, as a complement of safety net programmes. So, the PNCB delivers its services to extreme poor citizens, to free them from deprivation. Cash transfers are made through the National Bank, the only financial institution that works in the entire Amazon basin, what let us to include indigenous communities in the financial system. Besides, as it was mentioned, to sign the partnership, communities need to do legal arrangements with the assistance of the PNCB, like ID’s, land titles, etc., what let them to access other public services.

Peruvian indigenous people still have a great challenge to insert themselves into the political structure to discuss topics that are of vital importance to them, such as prior consultation, titling and land tenure, conservation etc. DCT mechanisms have opened a space for native communities to strengthen their capacities in matters related to sustainable productive development and forests conservation. It also allows them to link with other actors such as regional governments, international cooperation, other agencies of the Central State and other native communities and national indigenous organizations; which, finally, strengthens its comparative position in front of its Latin American counterparts. On the other hand, DCT improves the economy of communities (and the region) and allows them to insert their products into responsible markets. For example, Shora of Alto Coriri, is our community partner since 2011; they have not only managed to reduce deforestation in their lands, but also started coffee production to export. "Cajee Shora" has been successfully presented at the Business Roundtable of Alternative Products (DEVIDA and ADEX), in the EXPOAMAZONICA, in the 1st International Fair of Specialty Coffee (FICAFE 2016).

DCT mechanism is completely innovative in the Peruvian context, especially as a monetary conditioned mechanism primarily related to native communities and forest conservation. Although the system of "Payment for Ecosystem Services" exists in the country, it is not regulated or directed in such a way to the conservation of forests or the development of indigenous peoples as DCT is. Peruvian state has developed other conditional cash transfers as JUNTOS Program, but, they are qualitatively different from DCTs. DCT mechanism works with indigenous population, to reach forest conservation and the improvement of the quality of life of those communities, with a result-based payment approach. Additionally, to work with a growing number of communities and to monitor the increasing number of hectares under the DCT mechanism, the PNCB has developed a dynamic database that allows us to update the information, and permanently monitoring each of the affiliated communities. This database also allows for quick information on disbursements, hectares, number of families and other relevant information for rapid decision-making related to the improvement of conservation mechanisms and technical and financial instruments.

There is vast literature about conditional and unconditional direct or indirect cash transfers. Moreover, there are multiple payment initiatives for results linked to the fight against climate change (carbon credits, reduction of emissions) and environmental conservation in the South American region. In that sense, one can say that the DCT mechanism is an adaptation from other contexts or, more precisely, from development and public policy lessons. However, in South American Region, DCT has a particular characteristic. After the signing of the Conservation Agreement and the affiliation of the native community to the DCT mechanism, the Forests Program is compelled to provide an economic subsidy (S/. 10.00 per hectare of preserved forest per year). Nevertheless, even though it’s a results-based payment, PNCB officials have total control of the bank account in which the money transfer has been made.

- Financial: During 2017 the budget of the PNCB dedicated to DCT was about US $ 6 million, it was increased to more than US $ 11 million at the moment. - Human resources: About 100 members of the PNCB, comprises of technical, administrative and support teams, permanent officials, consultants, etc, not only at our headquarter but distribute in every region with Amazon forests. - Materia: Equipment to ensure the vigilance and monitoring of the forests surface, motorcycles, cars, computers, office supplies; particularly, the Módulo de Monitoreo de la Cobertura de Bosques (Module for Forest Coverage Monitoring), which permanently report deforestation , with the use of satellite images

No

The initiative is perfectly adaptable to other contexts where someone works with indigenous communities, not only in forest conservation, but especially developing sustainable projects to tackle extreme poverty. The key element that could be transferred is to work together with indigenous communities as partners, and support their project (not the institution’s ones), with economic resources and particularly the technical assistance. Another one is conditionality, to subject the assistance to the fulfilment of the community commitments (about conservation and the project implementation in our case). As communities adopt their decision in an assembly, everybody respects their commitments, and makes their best efforts to attain the objectives. In the case of forest conservation initiative is necessary a monitoring system, and the Modulo de Monitoreo para la Cobertura de Bosques used by the PNCB is a system that could be replicated; it provides information about deforestation in real time, so the communities can stop any illegal activities and makes it easier to adopt measures against deforestation by public entities. Training civil servants in intercultural issues and indigenous rights is imperative and easily transferred anywhere. It is necessary to internalise the respect to the others, and adapt to their reality.

To have a successful intervention, the PNCB is aware of the necessity that the indigenous community “appropriates” the project. To achieve that objective is imperative the participation of indigenous people from the beginning, so, the community assembly approves not only its participation as a partner of our programme, but the project itself, which it is defined and designed by them with the assistance of our personnel. Since the monitoring of the forest and the implementation of the investment plan of the project is done by the community, it is necessary to build capacities amongst its members. It is worth to mention that our initiative is also sustainable thanks to the contribution of our stakeholders, regional and local governments and indigenous national organisations participate in the identification of potential partners; so, subnational entities are involved, and improve their services to indigenous communities in order to attain the objective of our intervention, and indigenous federations assist us to generate trust in our intervention and public entities amongst communities.

The PNCB is the result of the international commitments of the Peruvian government to fight against deforestation and extreme poverty; in that sense, the initiative is sustainable in the long term. Besides, as it was mentioned, our objective is to develop sustainable projects at the indigenous communities, so our partners guarantee the continuity of the project.

No

DCT mechanism is closely related to environmental governance, which is defined as a set of institutions and processes that involve different actors (governmental and non-governmental) with the aim of achieving the consensual and participative management of the environment and the natural resources. In that sense, the DCT poses the enormous challenge of continuously coordinating among the large number of stakeholders involved, all of them with different interests and development perspectives: the PNCB and native communities are responsible for the success of the partnership, the Ministries of the Environment, Economy and Finance, and the Agriculture provide the regulatory framework about forest conservation, and the economic activities that coukld be implemented in the forests; regional governments participate in the identification of potential partners; the two main indigenous organizations introduce the PNCB to their communities as a support of the DCT mechanism; Civil Society Organizations work with the PNCB in the technical assistance; and the International and Financial Cooperation finance some activities. It is not easy at all to reach consensus, but the growth of the PNCB and the increase of native communities affiliated with the DCT mechanism shows its potential to engage a diversity of actors and to improve the country’s environmental governance. Academic literature and public policy debate shows that “participatory forest management is more effective in terms of forest cover, social equity and economic benefits than top-down forest management”. In that sense, one of the most important contributions of the DCT mechanism is the inclusion of peasant and indigenous communities in terms of democracy, citizenship, forests conservation and economic development.

Do not underestimate the contribution of indigenous communities in the design and implementation of a project; anyone can learn a lot working with them. Because they have been excluded and almost annihilated over the time, it is difficult for them to trust another person outside their communities. So, it is imperative to work with and be introduced by their federations. Linked to the previous, any trust you receive from them, it must be extremely cared, gain it again would be impossible. It is important that at the political level, the necessary actions are taken to facilitate coordination among the various state stakeholders involved as the National Bank, Regional Goverments, the National Superintendence of Public Registries, among others. It is vital that all public officials involved in key tasks of implementing the DCT mechanism are trained in intercultural issues and indigenous rights. Especially, at the level of officials in charge of administrative tasks that do not have direct contact with the native communities. Facilities and incentives must be given to the community to ensure active and equal participation of as many women as possible in decision-making and in the technical aspects of the implementation of the mechanism.