Brian ChildUniversity of Florida

31 August – 3 September 2009

Morogoro, Tanzania

1.1. How do we measure How do we measure production of production of environmental environmental services?services?

2.2. Who pays? For what?Who pays? For what?

3.3. Economic institutions Economic institutions for sustainabilityfor sustainability

4.4. GovernanceGovernance

Illustrates economic principles through:

An example of how we turned an environmental services (wildlife biodiversity) into real value

How we made sure sure that landholders (who are deterministic of land use) benefit

IF resource is valuable (PRICE) AND value gets to landholder (PROPRIETORSHIP) AND landholder controls decisions

(SUBSIDIARITY)

THEN, natural resource will be conserved

London Convention 1933 Established protected areas Banned commercial use Centralized control in state agencies

Effect - Made wildlife valueless so replaced by cow and plough

So now we are undoing the London Convention (and conventional conservation dogma) by …. Promoting highest value uses Giving wildlife back to landholders (i.e.

communities)

1960s1960s – – CroppingCropping(Scientists; failed)(Scientists; failed)

1970-2000 1970-2000 Safari HuntingSafari HuntingIndustry; succeeded Industry; succeeded and evolved)and evolved)

1990s – restocking & 1990s – restocking & major land major land transformation back transformation back to bio-experience to bio-experience economyeconomy

Tourism Tourism (and (and hunting)hunting)

10-14,000 properties Major shift from livestock

to wildlife Increases :

Jobs 4.5 timeWage bill 32X

1980S, LIVESTOCK 1990S, WILDLIFE

Economic TransformationEconomic Transformation• JobsJobs• Economic growthEconomic growth• Environmental servicesEnvironmental services

Environmental servicesEnvironmental services• CarbonCarbon

Range Economics, Zimbabwe, 1990

Wildlife EnterprisesWildlife Enterprises

(48% were profitable) (48% were profitable)

But … decades of previous subsidization

Livestock EnterprisesLivestock Enterprises

(5% were profitable) (5% were profitable)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Draw(1969-73)

Tender(1976-84)

Auction(1986-88)

Sale of Hunting in Zimbabwe

Per Animal

Dangerous Game

Increase in prices Increase in prices related to:related to:

1. Shift from 1. Shift from administrative to administrative to open-competitive open-competitive pricingpricing

2. Innovation 2. Innovation and product and product development on development on 10,000 properties10,000 properties

LESSONS FOR INCREASING PRICES LESSONS FOR INCREASING PRICES OF ENVIRONMENTAL SERVICESOF ENVIRONMENTAL SERVICES

Devolved rights to manage, benefit, sell to landholders: 100% of income (stopped licenses, reduced

regulations etc)

Open, competitive marketing replaced administrative pricing

10-14,000 people experimenting rapidly drives up price of wildlife

Applying the same Applying the same principles to rural principles to rural communities – led communities – led to CAMPFIRE to CAMPFIRE

Devolutionary Policy/ Governance

Making Money

Spending Money

NRM Mgmt / Control

Capacity Building

Sell hunting Sell hunting openly, openly, competitivelycompetitively

Pay 80-100% Pay 80-100% of income to of income to communitycommunity

1. Defined membership

2. Made a list of members and checked it

3. Listed animals shot and values

4. Worked out potential share per person

5. Agreed on allocation

• $200/HH

• $100 cash

• $ 70 grinding mill

• $ 30 school

Debating choices

Participatory Participatory Governance Governance

(NOT Representational governance)

Clinic

Wildlife Management

Take Home Cash

1.1. Conceptual Foundation: Conceptual Foundation: Maximize benefits to land Maximize benefits to land occupieroccupier

2.2. PolicyPolicy (Price and Proprietorship) (Price and Proprietorship) Devolved use rightsDevolved use rights Encourage commercial use, open-competitive Encourage commercial use, open-competitive

marketingmarketing Governance (tomorrow)Governance (tomorrow)

Government

District

CBO

Individual

REDD Payment

REDD Payment

REDD Payment

Rangeland Production System

$ Primary Production

Secondary Production$ Profit $

Soil, water, sunlight

Agricultural Production System

Primary Production$ Profit $

Soil, water, sunlight

Rainfall (land productivity)

Profi

tabi

lity

of la

nd u

se

Wildlife more profitable according to ‘natural’

prices

Agriculture more profitable a in areas of

high rainfall & soil fertility

Policy failures drive down price of wildlife

Subsidies inflate profit of livestock

+- 600-700mm

No rig

hts

Policy failures drive down price

of wildlife

Policy failures drive down price

of wildlife

+- 600-700mm

Bans o

n U

se

RainfallWildlife Area

0

100000

200000

300000

400000

500000

600000

700000

1977

1982

1987

1992

1997

2002

Cattle Shoats All wildlife

+- 600-700mm

Rainfall

Land Conserved by Wildlife

Combine carbon payments with

hunting & tourism

Combine carbon payments with

hunting & tourism

Healthy, Unconverted Natural Habitats

Rainy season reduced by Rainy season reduced by 20%!20%!

Areas at most risk of climate change

Environmental conservation Environmental conservation Wildlife Wildlife Economic driverEconomic driver

Biodiversity Carbon Nobody pays for these Water (positive externality)

Economic developmentEconomic development Household benefitHousehold benefit Community income and projectsCommunity income and projects Jobs, economic multipliersJobs, economic multipliers

Mechanism for rural democratization and Mechanism for rural democratization and empowerment (tomorrow)empowerment (tomorrow)

Thank you