Swahili Street asks about REDD in relation to Cash on Delivery.
With REDD (carbon-based payments for Reduced Emissions from Deforestation and forest Degradation for the uninitiated) I think it all depends on how the international architecture pans out. Lots of people are arguing for fund based approaches, and there are some good reasons why that could be a better solution as being both potentially simpler to manage and to avoid penalising well-behaved countries like Costa Rica who have already acted to control deforestation. (Is there anything to be read into the appointment of a Costa Rican as the new UNFCCC coordinator?) But I am with lots of other people in voicing substantial skepticism that other developing countries could actually get deforestation under control without a more robust transactional system which pays for actual achievements. This would act in a more commercial way than I expect most COD will do, but maybe that’s the exactly the direction we should be going on this? Perhaps we could end up with exchanges trading things like completed primary school years; the money would flow to those countries which could deliver such public goods at the lowest possible price, and governments of other developing countries would have to scrabble around to see how they could deliver the same benefit at the same price. The ultimate free marketeer’s solution to development in poor countries!