We have always had land in which the agricultural productivity is limited because there is not enough moisture. Systems of farming and burning often degrade dryland further until it is desert. Today, however, the problem is becoming much more serious. Over 20 per cent of the world's population lives in dryland areas, and unless action is taken drylands will increase dramatically. This book focuses on the people who live and .farm in the drylands, their use of land resources and the economic returns from their decisions. In a clear and thorough economic appraisal, the authors show how it is still possible to arrest the problem. Originally published in 1989

Foreword
Preface
1. The Dry land Problem
Dimensions of the problem
History and Background of Dryland Usage; Current Conditions in the Drylands; The Future of the Drylands
References
2. Dry land Characteristics and the Degradation Process
Physical and biological characteristics
Climate; Surface Water and Groundwater Resources; Topography and Soils; Vegetation; Animal Populations
Degradation and land use
Degradation Processes; Livestock Production; Rainfed Crop production; Irrigated Agriculture; Forestry and
Agroforestry; Other Land Uses
Social and institutional factors
Human Factors; Institutional and Political Factors
References
3. The Role of Public Policy in Dryland Development and Management
Policies Towards the Drylands
Diversity of Dryland Problems; The Case for Public Assistance; General Policy Issues in Development Planning; Formulation of Policies, Programmes and Projects; Economics and the Policy Process
Designing appropriate policies
Economic Issues in Designing Remedial Action; Determining the Appropriate Level of Protection; Desirable Characteristics of Policies, Programmes and Projects
The Economics of Dry land Management
Social, Cultural and Institutional Factors
Human Factors; Institutional Factors
References
4. General Economic Principles and Techniques of Analysis
Concepts of Economic Welfare
Measurement of Benefits and Costs
Price Distortions; Economic Externalities; Use Rights and Resource Management Systems; The Effect of Time; Breakdown of Resource Management Systems; Renewable and Non-Renewable Resources; Irreversible Damage to Resources; Risk and Uncertainty
Design of an Economic Analysis
Techniques of Economic Analysis
References
5. Managing Drylands as Renewable Economic Resources
Renewable Production Systems in Dryland Areas
Sustainable Production from Dryland Ecosystems; Products of Dryland Areas; Economic Management Objectives
Degradation: Causes and Corrective Actions
Perspective of the Land User; Externalities and Open-Access Common Property Resource Effects; Corrective Policies and Strategies
Dryland Agriculture and Forestry
Rainfed Crop Management; Dryland Forestry; Appropriate Farm Technology; Soil and Water Conservation
Grazing systems
key Variables in Grazing Management; Handling Stochastic Conditions; Computer Simulation Modelling of Dryland Grazing Systems
References
6. Economic Appraisal of Investments in Dryland Progammes and Projects
Financial Analysis
Social Benefit¿Cost Analysis
Project Costs; Physical Boundaries of Analysis; Shadow Prices; Dealing with Inflation; Secondary Impacts;
Calculation of Net Social Benefits; Income Distiibution
Decision Criteria
Choosing a Decision Criterion
Cost-Effectiveness Analysis
References
7. Valuation of On-Site and Off-Site Effects
Valuation of Productivity Changes
On-Site Productivity Changes; Off-Site Productivity changes; Effects of Production Changes on Prices, Factor Markets and Consumer's and Producer's Surplus
Valuation of Other Effects
Damage to Property and Materials; Human Life and Health; Population Dislocation; Dealing with Intangibles and Non-Quantifiables
Cost Analysis Techniques
Preventive Expenditures; Replacement Cost; Opportunity-Cost Approach; Travel-Cost Approach
References
8. Risk and Uncertainty in Dryland Development and Management
Handling Risk and Uncertainty
Sources of Risk and Uncertainty in Dryland Decision-Making; Definitions of Risk and Uncertainty
Risk Analysis
Applications of Risk Analysis; A Framework for Risk Analysis; Interpretation of Results of Risk Analysis
Decision-Making Under Conditions of Uncertainty
Decisions Based on Available Information; Sensitivity Analysis; Decision Analysis Techniques; Uncertainty Associated with Irreversible Damage to Resources
Defensive Strategies to Cope with Risk and Uncertainty
Overcoming the Effects of Risk; Investment in Information;
Use of Expert Systems; Adaptive Environmental Assessment and Management; Critical Zones and Safe Minimum Standards
References
The Economics of Dry land Management
9. Models for Dry land Development Planning
General Policy Issues in Dryland Development Planning
Linear Programming Models
General Properties and Applications of Linear Programming Models; Setting up a Linear Programming Model; Finding the Optimum Solution; Introducing an Environmental Externality; Limitations of the Linear Programming Approach
Sectoral Planning Models
General Properties of Input¿Output Models; Solving an Input¿Output System; Simulating the Effects of New Production; Incorporating Consumption Expenditure; Data Sources and Construction of Input¿Output Models; Application of Multipliers to Dryland Development Planning
Natural-Resource Accounts
Approaches to NRA
Global Models
References
10. Implementation of Policies, Programmes and Projects
Presenting Results to Decision-Makers
Characteristics of a Useful Economic Analysis; Important Elements of an Economic Analysis
Creation of Implementation Incentives
Direct Government Expenditure; Influencing Private Behaviour; Characteristics of Efficient Incentives
Selecting the Appropriate Incentives
Constraints on the Use of Economic Incentives; A Checklist of Incentive Characteristics
Social and Cultural Constraints to Implementation Policies on Land Tenure and Use Rights
Systems and Incentives; Accommodation and Change
Management of Programmes and Projects
Technical Management; Financial Management; Social Management; Administrative Management
References
11. Case Study: Benefit¿Cost Analysis of Soil Conservation in Maphutseng, Lesotho by Jan Boj¿
Background
The FISC Project and the Maphutseng Area
The Economic Analysis
Choice of Evaluation Criteria; Quantification of Costs; Quantification of Benefits; Valuation of Costs and Benefits in Economic Prices; Discounting; Time Horizon; Results; Distributional Effects; Uncertainty and Sensitivity Analysis; Summary of Sensitivity Analysis; Policy Implications of the Economic Analysis
The Financial Analysis
The Farmer's Viewpoint; The Long-Run Perspective; Policy Implications of the Financial Analysis
Acknowledgements
List of Persons Contacted in Lesotho
Annex: Cost Calculations
References
Index

John A. Dixon, David E. James, Paul B. Sherman