The provision of public goods and the amelioration of market failure are the classical justifications for government intervention in the economy. In reality, (1) governments intervene in markets that are not affected by failure, and (2) a large share of the government resources is spent in private goods, not in public goods. In contrast to issue 1, issue 2 has received little attention in the literature, in spite of the potentially large efficiency and equity losses arising from misguided allocations of public expenditures.

Although private forest use in Brazil has been regulated at least since the Forest Code of 1965, cumulative deforestation in the Brazilian Amazon reached 653,000 k

The note looks at poverty in Ecuador,
assessing macroeconomic developments through its policies to
maintain stability with fiscal discipline, and increase
economic productivity and competitiveness, in particular,
the 1998/99 crisis, the 2000 dollarization and their effect
on poverty. From 1990 to 2001, national consumption-based
poverty rose from 40 to 45 percent, and the number of poor
people increased from 3.5 to 5.2 million. Poverty increased

This note deals with the extent to
which, and the means by which, project level distributional
analysis of benefits can be undertaken and how poverty
impact indicators can be developed. Section 1 sets out the
issues associated with using traditional cost benefit
analysis for the appraisal of pro-poor projects. Section 2
discusses the techniques and analysis available to consider
the distributional consequences of a transport change,

The Chesapeake Bay is the largest and
historically most productive estuary in the United States.
It is approximately 200 miles long and 35 mile wide at it
broadest point. The Bay's watershed includes parts of
six states (Delaware, Maryland, New York, Pennsylvania,
Virginia, West Virginia, and the entire District of
Columbia. This area encompasses 64,000 square-miles, 150
major rivers and streams and has a population of 15.1

Forest resources directly contribute to
the livelihoods of 90 percent of the 1.2 billion people
living in extreme poverty and indirectly support the natural
environment that nourishes agriculture and the food supplies
of nearly half the population of the developing world.
Forests also are central to growth in many developing
countries through trade and industrial development. However,
mismanagement of this resource has cost governments revenues

This report focuses on one specific
interaction: the role of forests, and particularly protected
forests, in maintaining quality of drinking water for large
cities. There are many reasons for this focus: many city
dwellers already face a crisis of water quality, and
contaminated water spreads a vast and largely unnecessary
burden in terms of short and long-term health impacts
including infant mortality, with knock-on effects on ability

The review examines the use of
environmental valuation in 101 projects in the World
Bank's environmental portfolio approved in fiscal years
2000, 2001, and 2002. It has three broad objectives. First,
it examines the extent to which environmental costs and
benefits have been incorporated in the economic analysis of
projects. Second, it examines how well valuation was used.
Third, it seeks to identify areas of weakness so as to feed

Critical choices must now be made if
growth is to be sustained. Significant potential exists for
future growth, but bringing out this potential poses a major
challenge for government policy. Agricultural strategy must
shift its focus towards support for continuous productivity
growth by peasant farms in a conducive marketing
environment. Key priorities include completion of land
reforms (especially in the North); fundamental restructuring

Over the past decade, exports of fish
and fishery products from developing countries have
increased rapidly. However, one of the major challenges
facing developing countries in seeking to maintain and
expand their share of global markets is stricter food safety
requirements in industrialized countries. Kenyan exports of
Nile perch to the European Union provide a notable example
of efforts to comply with such requirements, overlaid with

Concerns about the sustainability of
conventional agriculture have prompted widespread
introduction of integrated pest management (IPM), an
ecologically-based approach to control of harmful insects
and weeds. IPM is intended to reduce ecological and health
damage from chemical pesticides by using natural parasites
and predators to control pest populations. Since chemical
pesticides are expensive for poor farmers, IPM offers the

The authors evaluate the impact of two
key factor market distortions in China on rural-urban
inequality and income distribution. They find that creation
of a fully functioning land market has a significant impact
on rural-urban inequality. This reform permits agricultural
households to focus solely on the differential between farm
and non-farm returns to labor in determining whether to work
on or off-farm. This gives rise to an additional 10 million