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Feature The Conservation Business Henry Nicholls

he language of conservation organisations, national governments, ‘The costs of conservation fall is changing: protecting and international bodies, and there disproportionately on local people, Tbiodiversity is no longer just need to be better ways to spend this whereas the benefi ts are dispersed,’ about ethics and aesthetics; the latest money if conservation is to be effective, says Andrew Balmford, a conservation buzzwords are commodities and they say. is a commodity biologist at the University of Cambridge consumers. Traditionally, conservation that can be bought and sold. We are in the United Kingdom. National initiatives have talked up the consumers and must pay. and global communities stand to benefi ts they will bring to the global benefi t from conservation of tropical community—saving species, habitats, Costs and Benefi ts biodiversity, but they must pay if they ecosystems, and ultimately the planet. Kenya boasts one of the world’s want to realise that benefi t, he says. But conservation also has its costs, most spectacular networks of national Conservation expenditure in the and these are usually borne by local parks and reserves covering around developed world is only about a third of people prevented from exploiting the 60,000 km2 of the country (Figure what is needed for effective protection resources around them in other ways. It 1). But devoting such a vast area to of 15% of the earth’s terrestrial is unfair to expect a localised minority conservation has its drawbacks. It has to pick up costs that ultimately benefi t a been estimated that were this land Citation: Nicholls H (2004) The conservation business. dispersed majority, argue conservation developed it would be worth around PLoS Biol 2(9): e310. biologists. There has to be more $270 million to the Kenyan people money made available by concerned every year. Similarly, two national parks Copyright: © 2004 Henry Nicholls. This is an open-ac- cess article distributed under the terms of the Cre- individuals, non-governmental in Madagascar are estimated to have ative Commons Attribution License, which permits reduced the annual income of local unrestricted use, distribution, and reproduction in villagers by around 10%. Of course, any medium, provided the original work is properly cited. protected areas do bring some benefi ts to neighbouring communities, most Abbreviation: PSA, Programa de Pago de Servicios ‘The AK47 automatic Ambientales notably through tourism. But in many assault rifl e has replaced the cases the rewards are not great, they Henry Nicholls is a freelance science writer based in are rarely distributed evenly among London, United Kingdom. E-mail: [email protected] bow and arrow.’ individuals, and do not necessarily outweigh the costs. DOI: 10.1371/journal.pbio.0020310

PLoS Biology | www.plosbiology.org 1256 September 2004 | Volume 2 | Issue 9 | e314 | e310 investing more than $2 billion a year ‘Direct payment, very boldly in 105 conservation projects with an ecotourism component. Similarly, speaking, is paying people between 1988 and 2003, the World Bank funded 55 development projects in rural areas not to bugger that supported protected areas in up their environment.’ Africa, 32 of which placed an emphasis on ecotourism. However, an absence of quantitative data and analysis has made it hard habitats, an area just large enough to to judge whether these projects preserve a representative sample of actually achieve their dual purpose species, habitats, and ecosystems in the of preserving biodiversity and medium to long term (Balmford et simultaneously reducing rural al. 2003). The developed world must poverty. ‘Much of the information make up this funding shortfall, argues about community-based ecotourism Balmford. What’s more, there need to is anecdotal and subjective,’ says be smarter ways to spend the money Agnes Kiss of the Environment and that’s available, he says. Social Development Unit at the World Bank. The real contribution of these DOI: 10.1371/journal.pbio.0020310.g002 Conservation by Distraction initiatives to biodiversity conservation is In recent years, many funding bodies debatable, she says. ‘Many community- Figure 2. Ecotourist Paradise in the Galápagos Courtesy of Catriona MacCallum. have taken an indirect approach to based ecotourism projects cited as conservation, investing in projects that success stories actually involve little encourage people to take up alternative change in existing local land- and practices that are compatible with resource-use practices, provide only Research Institute at the University conservation rather than investing modest supplement to local livelihoods, of Pretoria in South Africa is also in conservation itself. Perhaps the and remain dependent on external critical of this kind of indirect best example of this ‘conservation support for long periods, if not approach to conservation. At the by distraction’ is ploughing money indefi nitely’ (Kiss 2004). heart of the argument for community- into community-based ecotourism For example, communities involved based ecotourism is the idea of projects. Such initiatives aim to bring in the Infi erno Community Ecotourism the ‘ecologically noble savage’, he the benefi ts of tourism to local people, Project in Peru have received nearly says—the notion that those living thereby encouraging them to preserve $120,000 from their share in a tourist closest to will know what’s best the biodiversity they have. lodge and wages for providing services for it. ‘It’s a wonderful idea, but it just It’s an attractive idea. In the mid to visitors. This may have increased the doesn’t work. Nowhere in the history of 1990s, the United States Agency income for a minority that are lodge evolution has sustainability ever been for International Development was employees, but only one family, whose naturally selected for,’ says du Toit. adult members ‘The AK47 automatic assault rifl e has were all employed replaced the bow and arrow.…Every by the lodge, could individual in a rural community that’s afford to live solely out hunting will shoot what he sees on tourism. In the when he sees it, because if he doesn’t community as a somebody else will.’ whole, the average Nowhere is this problem more annual income evident than in the ecotourist paradise from tourism was of the Galápagos Islands (Figure 2), only $735 compared where a small minority of fi shermen is with nearly $2,000 coming into confl ict with conservation earned elsewhere. aims with increasing regularity (Box 1). Most of the ‘Things are going down very quickly,’ community was still says one Galápagos guide. ‘The iceberg heavily dependent is starting to tip over, and we are going on other activities, to lose everything.’ If it still pays locals and most of those to exploit the environment rather activities are than take part in one of the world’s somewhat disruptive most buoyant ecotourism industries, of conservation it is clear that ecotourism alone DOI: 10.1371/journal.pbio.0020310.g001 goals, says Kiss. cannot solve the world’s conservation Figure 1. The Masai Mara National Park in Kenya Johan du Toit problems. Many think that ‘direct Courtesy of Charlotte Stirling. of the Mammal payment’ could be a useful tool. ‘Direct

PLoS Biology | www.plosbiology.org 1257 September 2004 | Volume 2 | Issue 9 | e310 The distinction between indirect Box 1. The Cucumber Confl ict and direct interventions is artifi cial, says Thomas Lovejoy, president At the beginning of the 1990s, fi shermen in the Galápagos began collecting sea cucumbers from of the Heinz Center, a nonprofi t the waters around their islands to meet ongoing demand for these aphrodisiac ‘earthworms of the institution dedicated to improving the sea’ in Southeast Asia (Figure 3). Others intent on taking advantage of this commercial opportunity scientifi c and economic foundation began to arrive from the Ecuadorian mainland in their hundreds. In 1998, Ecuador’s president for environmental policy. ‘In some signed the Special Law of the Galápagos, which created the Galápagos Marine Reserve, protecting cases, direct payment is the only way its waters from commercial fi shing and imposed restrictions on domestic immigration. But by then, conservation can happen,’ he says. too many were already intent on reaping the fi nancial rewards the sea cucumber promised them— ‘In others, the indirect is important by the end of the decade, a single sea cucumber to reinforce a situation where there could fetch nearly $2. Conservation biologists already is conservation. In yet others at the Research Station on the both are needed.’ central island of Santa Cruz worked out levels of Sjaak Swart of the Section of Science fi shing that might be sustainable. In 1999—the and Society at Groningen University fi rst season in which sea cucumber fi sheries were in The Netherlands argues that if monitored and regulated—nearly 800 fi shermen conservation is to succeed, it must collected more than 4 million animals worth be rooted in the hearts and minds more than $3.4 million in a short two-month of those involved. Direct payments window. In January 2000, fi shermen protesting create a vision of nature dominated the closure of the fi shery took over offi ces of the DOI: 10.1371/journal.pbio.0020310.g003 by calculable, monetary concerns, he Galápagos National Park Service and Charles Figure 3. The Prized Galápagos Sea Cucumber, says. This approach can only work in Darwin Research Station, holding humans and Stichopus fuscus the short term, he argues, and indirect animals hostage. Courtesy of Henry Nicholls. tools like debate and education are needed to involve communities in the long term. ‘You need the commitment payment, very boldly speaking, is paying want,’ he says, ‘but we’re not very good of the local people to save the people in rural areas not to bugger up at saying what we do want.’ biodiversity of our world,’ he says. their environment,’ says du Toit. ‘It’s A hypothetical model simulating just like if we want exclusive artworks to how Madagascar should distribute be looked after in the Louvre Gallery an annual conservation budget of $4 in Paris. Somebody’s got to pay for it,’ million reveals that direct payments ‘Of all the ideas out there for he says. ‘You can’t expect the Parisians would have protected some 80% of who live in that arrondissement to original forest compared with only 12% protecting biodiversity, this cover the costs.’ protected through a system of indirect incentives. What’s more, the annual is the least bad.’ You Get What You Pay for— income of rural residents would have You Should Pay for What You been twice that generated through Want to Get indirect investment (Conrad and Marine biologist Steve Trott agrees. For people living in developing Ferraro 2001). He is project coordinator for the countries, where most of the world’s For Ferraro, the logic of direct Local Ocean Trust, a charity-based biodiversity exists, the short-term payment is simple. He draws an conservation organisation operating in rewards of exploiting these natural analogy with a car journey from A the Watamu and Malindi Marine Parks resources are signifi cant. Replacing to B. There are two routes that will and Reserve in Kenya (http:⁄⁄www. indirect conservation measures, such bring you to B, one circuitous and watamuturtles.com), and is using as community-based ecotourism, with the other direct. If you only have a direct payments to help reduce the payments directly into the pockets single tank of fuel, opting for the slaughter of turtles by local fi shermen. of local people could turn out to direct route improves the likelihood The Watamu Turtle Watch Program be a much more effective way to you will arrive at your destination. An is currently paying fi shermen just stem this exploitation, argues Paul indirect approach to conservation is over $3 a turtle to release the animals Ferraro, an economist at Georgia State like taking the circuitous route, he says, from their nets rather than kill them. University in Atlanta (Ferraro and Kiss and the chances are that you will run Before the scheme started in 2000, 2002). It could also bring far greater out of fuel. But if it’s that simple, why only around 50 turtles were being development benefi ts than indirect are governments, non-governmental released from nets each year. By 2003, fi nancial support, he says (Box 2). organisations, private bodies, and more than 500 a year were making it An additional spin-off is that direct international organisations not back into the sea. Elsewhere along the payments force conservation biologists jumping at the chance to experiment Kenyan coast, where fi shermen do not to quantify and hence clarify their with this approach? get these payments, turtles continue objectives, says John Hough, principal to be killed, says Trott. However, technical advisor on biodiversity for Paying in Perpetuity the fi nancial incentives are only part the United Nations Development There are those that have of a grander program of education Programme. ‘We know what we don’t reservations about direct payments. and support to sensitise people to

PLoS Biology | www.plosbiology.org 1258 September 2004 | Volume 2 | Issue 9 | e310 the conservation message, he says. to allow the success of an intervention they know where their money is going. Eventually, the plan is to stop payments to be gauged. Conservation biologists But, notes Ferraro, such objections also altogether. ‘Payment will be reduced as must therefore be trained in the skills apply to indirect interventions. ‘I don’t education and awareness is increased needed to collect and evaluate these necessarily believe that conservation to the point where it’s phased out,’ he data. ‘Without adequate data and payments will be successful,’ he says. says. controls you’re only going to be left ‘It’s more I believe that of all the ideas Reducing or stopping the payment with guesses and vague anecdotes about out there for protecting biodiversity, could work, says Ferraro, but it is more the effects of a program intervention,’ this is the least bad.’ likely that the turtles will begin to suffer he says. Decision makers should begin All this talk of cost, benefi t, once more. ‘If I had to wager, I’d bet to design controlled experiments from and effi ciency is creeping into people would go back to their old which they can make inferences about conservation speak. For some, these patterns eventually.’ This means that the effectiveness of these different cold and calculating terms are an direct payments require an ongoing interventions, he suggests. odd way to describe the world’s fi nancial commitment, and many There are other drawbacks of direct wonderfully unpredictable wildlife. people don’t like this idea, he says. payments. One concern is that they But, increasingly, there are calls for might just shift the pressure from one to cast aside its To the Test site to another that was not previously sentimental demons: biodiversity is a The idea of direct payments needs being exploited. Furthermore, in commodity that can be bought and empirical testing before it can be developing countries, land tenure is sold; conservation is business.  embraced with confi dence, admits often ambiguous, which can make References and Further Reading Ferraro. Funding bodies should investment an unattractive prospect for Balmford A, Whitten T (2004) Who should pay for demand experimental and control data funding agencies—they want to be sure tropical conservation and how the costs should be met. Oryx 37: 238–250. Balmford A, Gaston KJ, Blyth S, James A, Kapos V (2003) Global variation in terrestrial conservation costs, conservation benefi ts, and Box 2. Paying for Forests unmet conservation needs. Proc Natl Acad Sci U S A 100: 1046–1050. The longest-running and best-known example of a direct-payment initiative is the Programa de Conrad JC, Ferraro PJ (2001) Habitat conservation: Pago de Servicios Ambientales (PSA) in Costa Rica (Figure 4). In the second half of the 20th century, The dynamics of direct and indirect payments. Environmental Policy Working Paper Ser. forest cover in Costa Rica fell from around 50% to 25%, and more than half of what remained 2001–005, Georgia State University. Available: was on unprotected, privately owned land. In 1996, the PSA was set up to make direct payments http:⁄⁄epp.gsu.edu/pferraro/docs/Conrad to individual landowners, associations of FerraroWorkingPaper2001Distrib.pdf via the Internet. Accessed 21 July 2004. landowners, or indigenous reserves in exchange du Toit JT, Walker BH, Campbell BM (2004) for ‘environmental services’—anything from Conserving tropical nature: Current challenges forest conservation to providing a supply of for ecologists. Trends Ecol Evol 19: 12–17. Ferraro PJ, Kiss A (2002) Direct payments to water. Some 85% of contracts have been for conserve biodiversity. Science 298: 1718–1719. forest conservation. By 2001, more than 2,800 Ferraro PJ, Simpson RD (2004) Protecting 2 forests and biodiversity: Are investments in km were protected by payments of $4,000 per eco-friendly production activities the best way km2 every year, and contracts covering a further to protect endangered species and enhance 8,000 km2 were being processed. Most of the rural livelihoods? Paper presented at the International Conference on Rural Livelihoods, money for these payments comes from a petrol Forests and Biodiversity. 19–23 May 2003, Bonn, tax on Costa Rican citizens, although the Global Germany. Available: http:⁄⁄www.cifor.cgiar.org/ Environmental Facility has put up money for publications/corporate/cd-roms/ bonn-proc/pdfs/papers/t4_fi nal_ferraro.pdf biodiversity conservation, Costa Rica’s Offi ce via the Internet. Accessed 21 July 2004. of Joint Implementation has paid for carbon DOI: 10.1371/journal.pbio.0020310.g004 Kiss A (2004) Is community-based ecotourism a good use of biodiversity conservation funds? sequestration, and domestic hydroelectricity and Figure 4. Forest Protected by Costa Rica’s PSA Trends Ecol Evol 19: 232–237. municipal water providers pay for water services. Courtesy of Subhrendu Pattanayak. Swart JAA (2003) Will direct payments help biodiversity? Science 299: 1981–1982.

PLoS Biology | www.plosbiology.org 1259 September 2004 | Volume 2 | Issue 9 | e310