Banking on Biodiversity

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Banking onbiodiversitya natural way out of poverty

Big ideas indevelopment


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Dilys Roe,

Pavan Sukhdev,

David Thomas

and Robert Munroe

Series editor Barbara Kiser

Banking onbiodiversitya natural way out of poverty

Big ideas indevelopment


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Big ideas indevelopment seriesAs a policy research organisation, theInternational Institute or Environmentand Development has evolved keyconcepts, theories and ways oworking in sustainable developmentsince 1973. The big idea we explorehere is banking on biodiversity.This approach rests on the act that

much rural poverty is concentrated inthe worlds biodiversity hotspots.By supporting these communitieslong-term stewardship o land andsea, we can tackle two urgent globalissues extreme poverty andbiodiversity loss together.

Others in this series:

Fair Miles: Recharting the

ood miles map

Forthcoming in this series:

New green economy

Community-based adaptation

Learning groups

New business models

Contents4 Introduction

Bankrupting thebiosphere

6 Chapter 1Hotspots andhunger: where

biodiversitymeets poverty

16 Chapter 2Bottom line: avillage-eye viewo biodiversity

26 Chapter 3New wealth of

nations: biodiversityand poor economies

34 Chapter 4Global wins:breathing lie intoclimate solutions

44 ConclusionBiodiversity

a developmentissue

Big ideas in development: Banking on biodiversity


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Bankrupting

the biosphere

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It seethes deep under concrete andtarmac, teems in drains, and makesAustralias Great Barrier Ree a

wonder o the world. Biodiversity is thevariety and abundance o all lie, romgenes to lemurs the vast andintricate living abric o our planet.

That abric is now rayed: as a barrageo media reports tells us, abundance iswaning in many species andextinctions are 1000 times thebackground rate. Yet this is a crisisthat seems to have ew tangibleimpacts on our day-to-day lives.So what i that richness unravels?

The answer is that biodiversity, inall its extravagance, is also utterlyunctional. It stocks oursupermarkets, helps medicine keeppace with disease, ensures

ecosystems replenish the naturalgoods and services we all rely on.So while iconic animals such astigers may be the visible ace obiodiversity, the recent populationcrash in honeybees, a top pollinator,reminded us that lie on the small andmicroscopic scale is as vital.

More, the interconnectedness oglobal systems means that dwindlingbiodiversity in Africa, Asia or LatinAmerica has international social andpolitical implications. Supplies o

commodities based on naturalresources may dry up, and unrest andconict erupt as the rural poor lose

their livelihoods aecting trade,international relations and tourism.

Were relatively lucky in the North: ouraccess to technological fxes andglobal market systems help us dodgesome eects o this loss, at least ornow. Its a dierent story in the South.We may travel through biodiversityhotspots, but millions o people live inthem, directly and completelydependent on their orests, oceansand watercourses. Biodiversity is theirnatural saety net, and keeping it viableis one o the surest ways o helpingthem stay the right side o poverty.

Yet many development proessionalsincluded ail to make this crucial

connection or see its implications.This booklet explores what theyremissing: how biodiversity supportslocal livelihoods, contributes toeconomies o poor countries, helpscombat climate change.

This is some o the most importantjoined-up thinking weve ever had to

do. Biodiversity loss impoverishes allo us, but or the hundreds o millionsace to ace with it, the consequencescan be unimaginably bleak.


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Hotspots and hunger:

where biodiversitymeets povertyTo understand the overlaps betweenbiodiversity and poverty, we frst needto think a moment about what wealthmeans. Our economies in the Northare based on money, fnance, unds the stuff of New Yorks Wall Streetor the City of London.

Go South, and you enter a dierentreality. Financial assets may be limited,but in many o the worlds poorestnations, natural wealth abounds inrees, mangroves, deserts, rainorests

and savannahs. Millions o people indeveloping countries eectively bankon nature through fshing, subsistencearming or small-scale orestry.

In this chapter we take a closelook at biodiversity, explore whatwe mean by poverty, and examinethe many direct and indirect

connections between them.

Untangling the web o lie

Biodiversity is a word that carries a loto weight. As weve seen, its no less

than the sum total o Earths livingresources a kind o shorthand or themindboggling richness, in variabilityand quantity, o genes, species,ecosystems, and the communities oecosystems known as biomes. Withspecies alone numbering anything rom5 million to 30 million, thats complex.

Its largely the quality o varietythatmakes biodiversity so much more thanjust nature. An ecosystem rich inbiodiversity is more resilient andproductive. Variety also means choice in medicines or oods or products tosell. And it serves as eective riskmanagement. So i one crop is wipedout, there are others to fll its place;

when new diseases emerge, we havemore chance o fnding a cure.

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2010: a big yearor biodiversity

Since 1959, the UN hasdevoted particular years toglobal issues ranging rompeace to potatoes. It designated2010 the International Year oBiodiversity to raise awarenessabout the issues importanceand to galvanise action to curbbiodiversity loss. The year waschosen to coincide with a globaltarget set by the UN Conventionon Biological Diversity, aninternational treaty intended topromote the conservation andsustainable use o biodiversity,as well as the equitable sharingo benefts arising rom its use.

That target to achieve by2010 a signifcant reduction othe current rate o biodiversityloss at the global, regional andnational level as a contribution topoverty alleviation and to thebeneft o all lie on earth isalso part o the globally agreedMillennium Development Goals

that aim to alleviate extremepoverty. It has yet to be met.

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declines, ecosystems become lessstable and less able to withstandshocks and pressures, and their

delivery o key services declines.Some might argue that extinction is anatural biological process so whyworry? The problem is that species aredisappearing at an unprecedentedrate, prompting some to call it theEarths sixth mass extinction. Theusual suspects are driving it: changesin land use such as orest clearancesto make way or crops, the spread omonocultures, overexploitation onatural resources like fsh stocks, andpollution rom ertilisers, industrialdischarges and oil spills, or example.

Ecosystems are dynamic systems andso are pretty resilient, but only up to thetipping point. Beyond that they are

unable to recover to their ormer state(see Jellyfsh and chips?, opposite).Decades ago, American biologist PaulEhrlich likened this to aircrat design.His rivet hypothesis holds that youcan lose some rivets in a planes wingand it will continue to y, but you willreach a point where the loss o just onemore rivet becomes catastrophic.

Beyond these immediate benefts,our survival depends on a range obiodiversity-driven ecosystem

services: say, restructuring andenriching soils, breaking downpollutants, fltering reshwater (seeLife support: natural services,above). To generate these, a widerange o ecosystems, and an evenwider variety o species within each othem, are needed. When species dieout or are depleted, or genetic diversity

Big ideas in development:Banking on biodiversity

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Biodiversitylevel

Ecosystem services(some examples)

Ecosystems Recreation

Water regulation

Carbon storage

Species Food, fbre, uelwood

Design inspiration

Pollination

Genes Medicine

Disease resistance

Adaptive capacity

40% o bird species & 42%o amphibian species aredeclining in population**

23% o plant speciesare threatened**

1/3 o genetic resources orood and agriculture has beenlost over 100 years*

*Food and Agriculture Organization of the UN.**Global Biodiversity Outlook 3 (GBO3). http://gbo3.cbd.int/home.aspx.

Source: TEEB. 2009. Integrating the ecological andeconomic dimensions in biodiversity and ecosystemservice valuation. In TEEB Report D0.

Lie support: natural services


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Jellysh and chips?

Many populations o fsh will crash in a

ew decades i overfshing persists,according to researchers interviewedby the UK-based Sunday Times.Daniel Pauly, proessor o fsheriesscience at the University o BritishColumbia in Canada, puts the currenttotal wild catch at 150 million tonnes ayear some 60 million tonnes morethan estimates by the Food and

Agriculture Organization of the UN(FAO). The FAO itsel, however, hasestimated that over 70 per cent ofsheries are at or over the sustainablelimit. Overfshing is an urgent problem,as a billion people, mostly in poorercountries, rely on fsh as their mainsource o animal protein. For that to besustainable, we need an overhaul ofshing practice. In the same article,University o York marine scientistCallum Roberts says that if we go onfshing down the ood web movingto smaller and smaller species as wewipe out the larger ones we will soonbe let with just jellyfsh and algae. Thisisnt mere theory. A 2007 report by UKbroadcasting body the BBC on astudy by scientist Georgi Daskalov othe UK Centre for Environment,Fisheries & Aquaculture Science(Cefas) showed just such a regimeshit rolling out in Europes Black Sea.

Sources:Leake, J. 11 July 2010. Fish stocks eaten toextinction by 2050. Sunday Times; FAO. 2008. TheState of World Fisheries and Aquaculture. FAO, Rome;Fishing destabilises Black Sea. 5 June 2007. BBCNews. http://news.bbc.co.uk/1/hi/sci/tech/6719965.stm.

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Poverty pinned down

The biodiversity drain is only one othe global challenges that ace ustoday. Another is persistent povertyin developing countries. Just as thereis an international target to reducebiodiversity loss, so there is a targetin the Millennium Development Goalsto halve the number o people living inextreme poverty by 2015. In the MDGs,poverty is defned as living on less than a

dollar a day, but this emphasis on moneyis a very Northern view many of thepoor defne themselves quite dierently(see The poverty spectrum, opposite).

Bridging a big divide

Many view biodiversity and povertyas completely separate issues.This isnt really surprising. Historically,

economic development includingtackling poverty has been linked toindustrialisation and the conversiono natural wealth into capital, not natureconservation. But as weve begunto see, the two issues are in actintricately linked.

First, they share the same geography.Some o the worlds most biodiversecountries are also some o the poorest(see Mapping a crucial overlap, page12). The majority o the poor in thesecountries live in rural areas, which areobviously more biodiverse than cities.The overlap also holds true i you breakthe world down into biomes. Themajority o the poorest live in the most

biodiverse o these: tropical orests,grasslands and deserts.

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The poverty spectrum

Poverty is a relative term, defneddierently in dierent countries;but it usually relates to some level

o material wealth. Internationaldevelopment agencies broadlyagree, however, that the state opoverty also encompasses otherdeprivations including the lack oopportunity, o power and voice,and o access to educationand healthcare.

In the developing world, the poor

dont usually defne themselves interms o cash income. And theconcept o cash itsel is meaninglessin some indigenous communities,who live outside the cash economyand consider us to be theimpoverished ones because o ourseparation rom nature and ourhighly stressed lives. Many o themview a healthy environment or a

chance to learn as more valuablethan money. The environmentalcharity Friends o the Earth oundthat or the Bagyeli people oCameroon, one of the most

important indicators o wealth waslevel o access to orest resources.

The growing recognition thatpoverty is multidimensional has hadlittle eect on the way its measured:still predominantly by income. Yetgoing by that alone, the scale opoverty is staggering. The MDG

target group the 1.2 billion in citiesand rural areas living on less than adollar a day are just the tip o amonumental iceberg. Almost hal theworld live on less than US$2.50 aday. Thats the price o a coee inLondon or New York.

Source:Friends o the Earth International. 2005.Nature: Poor peoples wealth. Poverty Issue 108.FOE, Amsterdam. www.oei.org/en/resources/

link/poverty/04.html.

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Mapping acrucial overlapThe biodiversity-richcountries with a low HumanDevelopment Index


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HDI

0.96

0.85

0.75

0.65

0.50

0.27

Source: Hugo Ahlenius, UNEP/GRID-Arendal/ConservationInternational. 2004. Global development and biodiversity.In UNEP/GRID-Arendal Maps and Graphics Library. http://maps.grida.no/go/graphic/global-development-and-biodiversity.


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Selected terrestrial biodiversity hotspots

Selected major wilderness areas

Some o the worlds least developed countries are located in biodiversityhotspots. This map displays the Human Development Index (a compositestatistic used by the UN Development Programme to rank countriesaccording to lie expectancy, literacy and standard o living) or each country,overlaid by hotspot regions. Red indicates a relatively low HDI.


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Secondly, as weve mentioned, we alldepend on biodiversity and ecosystemservices, but the day-to-day survival o

millions o the poor rests on them, aswell see in Chapter 2.

Thirdly, current rates o biodiversityloss are most severe in the tropics,where many poor countries cluster so the impacts are most likely tohit the poor hardest. Unortunately,eorts to stem the destructioncan also backfre on the poori conservation measures suchas designating national parksmean they are excluded romancestral land and the servicesand resources it oers.

Because o all this, biodiversity canmean very dierent things to therural poor and to us. Our urbanised,

high-tech lives are many steps removedrom biodiversity in the raw. So wemight travel halway round the world tosee a wild elephant, but in many partso Arica its common or rural peopleto live in ear o elephants destroyingtheir crops or worse, injuring orkilling their children. We tend toorage in supermarkets and get a

prescription when were ill, but inmany countries villagers trek or longdistances to harvest what they andtheir amilies need.


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For us, biodiversity is anenvironmental issue. For many poorpeople, it is also an issue o cultureand identity, politics and power.

Power o two

Weve now seen that biodiversity is

everywhere, and that it is central tothe maintenance o all the naturalsystems that most of us in the Northare only dimly aware o, but withoutwhich humanity would be unable tosurvive. Weve seen that itsconcentrated in poor countries,where the poor rely on its bountydirectly. Were back, in short, at the

beginning: biodiversity is a bankingsystem or the poor.

This is not a resh insight. Wevealready noted that the UN biodiversityconvention and the MDGs bothrecognise the link. The problem isthat its rarely acted on. In practice,the connection between social andecological wellbeing is usuallyoverlooked in avour o quick fxesand high-tech solutions that canbackfre badly and accelerate thebiodiversity drain.

Lets look at some real alternatives,starting with how biodiversity canhelp in poor communities.


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Value is in the eye o the beholder. Tourists might thrill to see this Southern Arican springbok, but to poor local

armers it could be a crop-destroying nuisance or dinner.


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Bottom line: a

village-eye viewof biodiversityFor the rural poor in particular, the900 million who make up the bulk opeople living on under a dollar a day

biodiversity is a lieline: reelyavailable, and harvested and usedwith little processing and low-costtechnologies. This is natural capitalwith massive value or people withlittle o what wed think o as capital money or property.

The contribution that biodiversity

makes to reducing poverty at theindividual or household level varieshugely, however. For many, biodiversitysimply means ood and uel orimmediate consumption. For others,biodiversity acts as a orm o insurance a saety net preventing them romalling into, or urther into, poverty.Biodiversity can also provide

opportunities or income that actuallylit people out o poverty. We explorethese dierent scenarios below.


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Subsisting on nature

Collecting wild plants, animals andungi or ood, uel, odder, fbre orcash is a daily necessity or millionsacross swathes o Arica, Asia andLatin America. Medicinal plants stockmany village markets (see Wild orhealth, right). Species variety is crucialto this task, but so is long-termabundance o key staples. Meanwhile,armers on tiny plots use genetic

diversity to improve and adapt cropsthat can survive difcult conditions.

For some, wild harvests areeverything; or others, their value liesin the way they can fll seasonal gapsin the crop cycle or shortalls at timeso major hardship. The incomepotential o wild resources is limited,and when a real chance to earn cash

arises, it tends to be the richer, morepowerul and better connected whoare able to reap the benefts while thepoorest o the poor lose out.

Nevertheless, even a small incomecan be signifcant or households withlittle else. Overall, the World Bankestimates that orest products

provide roughly a fth o poor ruralamilies income o which hal iscash and hal is in the orm o goodsor immediate consumption.

Wild or health

For poor people with no access to

clinics or doctors and no cash topay or commercial drugs,traditional medicine based onskilled use o wild plants and ungican fll the roles o pharmacy andmedic. Up to 80 per cent o peoplein a number o Arican and Asiancountries use traditional medicineor primary healthcare, according to

the UN World Health Organization.Globally, wild plants, or compoundsextracted rom them, are the basisnot just or traditional medicines butalso or modern pharmaceuticals:an estimated 35,000 to 70,000species o plant have been used inmedical systems round the world.

Sources: WHO. Traditional Medicine. Factsheet.www.who.int/mediacentre/actsheets/s134/en/;Farnsworth, N.R. and Soejarto, D.C. 1991.Global importance o medicinal plants. InAkerele, O., Heywood, V. and Synge, H. (eds)The Conservation of Medical Plants. CambridgeUniversity Press, Cambridge, UK.


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Natures insuranceportolio

Beyond wild harvests, some see aneven more proound beneft or thepoor in the unseen supporting rolebiodiversity plays in keepingecosystems healthy and maintainingtheir delivery o critical services.An ecosystem in tiptop condition isin essence a portolio o insurancepolicies protecting against natural

hazards, illness, an unstableenvironment and ood insecurity.Here we look at both naturalecosystems and agroecosystemswhere small-scale, sustainable armingbecomes part o the rural mosaic.

Hazards and disasters

It might seem odd to say thatbiodiversity can insure against oodsand fres, but in act naturalinrastructure orests, wetlands andmangroves can orm an eective frstline o deence against mudslides andash oods, cyclones, tsunamis andother potentially disastrous extremeweather events. Its no accident that,ater the catastrophic Indian Ocean

tsunami o 2004, regionalgovernments launched intensivemangrove replanting schemes as acoastal bioshield.

Flood prevention is dependent on theability o soil to absorb and hold water.Earthworms and other soil-dwelling

animals and microbes help here byregulating soil structure as well asplant cover. Plant diversity also helpsgrasslands weather drought, bymaking it likelier that drought-resistantspecies are part o the mix.

Health

Beyond medicinal plants, biodiversityplays a hidden but crucial role inreducing the risk o catching inectiousdiseases. A unctional ecosystem canbalance the abundance o diseasevectors such as mosquitoes, parasitesand parasitic hosts and so control thespread o the diseases. But i, say,natural predators o the vectorsdecline, their populations can boom

and diseases spread. Many diseasesassociated with shits in biodiversityare common among poor people:malaria, dengue ever, encephalitis,cholera and rabies.

Food security

The 500 million small arms indeveloping countries are lightyearsaway rom agroindustry and its giant

monoculture felds soaked in ertilizerand pesticides. The men and womenwho plough and hoe these small plotsare adept at innovations that keepcrops viable through tough times, suchas careul selective breeding thatworks with biodiversity. Science hasbacked their fndings.

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Theres a strong body o evidenceshowing that crop plants with highgenetic diversity that is, a broad

range o genes within the crop species yield higher and more consistentharvests than those without by usingsoil and water nutrients moreeectively over a range oenvironmental conditions. This geneticadvantage has also been shown toimprove crops resilience to impactsrom pests or diseases, droughts or

oods. Those are hugely importantactors or people who could starve iharvests shrink disastrously (see Oldcrop, new tricks, page 22). Healthyagroecosystems depend in turn onhealthy ecosystem services maintenance o soil by the organismsliving in it, groundwater regulationby trees, pollination by insects

and bats, and more.

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Old crop, new tricks

Modern crop varieties may havebeen bred or productivity andefciency, but cultivating themdemands ertilizers and pesticidesthat poor armers can ill aord.Traditional varieties o crops suchas millet are more geneticallydiverse and robust, and less relianton pricy and potentially hazardouschemical inputs. In Ethiopia oneo Aricas poorest and mostpopulous nations traditionallandrace sorghum (cultivatedvarieties that have bred naturally inresponse to local conditions) haveoutperormed modern varieties indrought conditions an eect thatis even more obvious on the

marginal lands o the poorestarmers. This suggests thatbiodiversity can be eectiveinsurance against climate impactsor small armers an issue weexplore in more detail in Chapter 4.

Source: Vira, B. and Kontoleon, A. 2010.Dependence o the poor on biodiversity: whichpoor, what biodiversity? In Roe, D. (ed) LinkingBiodiversity Conservation and Poverty Reduction:

A state of knowledge review. CBD TechnicalSeries No 54, Secretariat of the CBD, Montreal.

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A natural wayout o poverty

Biodiversity can eectively becomea stepping stone out o poverty, giventhe right circumstances. Far-seeingnational government policy in theSouthern African nation of Namibiahas empowered rural communities totake control o the wildlie resourceson their land and capture signifcantfnancial benefts rom tourism,

hunting and other biodiversity-basedenterprise that would otherwise haveaccrued to government or privatetourism companies. Meanwhile inKenya, understanding biodiversityhas enabled orest communities totap into a major export industry(see Buttery eect, page 25).

Poor policy, broken law

But biodiversity-based eorts to earnincome oten ail. This is oten not somuch down to a lack o potential inthe biodiversity available, but to poorpolicy and legal rameworks thatgovern how it is used and by whom.Security o tenure over land andresource rights are key in this context

as our Namibian example shows.The rural poor generally have reeaccess to wild resources a rightthat coexists with the act that manyvillages have their own ways ocontrolling resource access andmanagement. But i traditionalgovernance breaks down, or istaken over by regional or national

governments, a village no longerowns the orests or rivers round itand is no longer responsible or them

in the same way. So locals mayhave less incentive to invest in thelong-term sustainability o their wild

heritage. They may just exploit itwhile its there beore others do.

And others will want to. For starters,biodiversity is big business orpharmaceuticals corporations in theNorth. But there is no effectiveinternational agreement on sharingthe benefts rom biodiversity or the

products and technologies derivedrom it with the countries orcommunities rom which theyoriginated. Its all too easy or acompany or agency eager to develop,patent and sell new medicines,seeds, oods and industrial productsto simply move in and access wildplants and animals along with

centuries worth o the traditionalknowledge surrounding them.

The poor, who have managed andconserved these riches, can end upunrewarded or, in the case o patents,even unable to access certainspecies or varieties. A beneft-sharingagreement and system currently a

topic o hot debate betweengovernments could make a vitaldierence to biodiversitys potentialto reduce poverty.

Weve had a glimpse o whatbiodiversity means in terms ograssroots subsistence and localeconomies. What part does it orcould it play in national contexts?We fnd out in the next chapter.

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Butterfy eect

I youve ever strolled through a

buttery house, youve had a brush withbiodiversity at its most enthralling. Youmay not have thought about the insectsprovenance, but this is a multimillion-pound industry supplied by tropicalbuttery arms round the world. One, atthe edge o a orest near Kenyas northcoast, is a poverty and conservationsuccess story that has been fnancially

sel-sustaining since 1999. In the early1990s, however, the signs were nothopeul. The villagers living round theorest a protected, globally importantbiodiversity hotspot hated it. Preventedrom reely using wood and otherresources and with crops regularlymarauded by elephants and baboons,most local armers wanted the orestcleared or settlement. The KipepeoProject proved a communitymetamorphosis. NatureKenya (BirdLife inKenya) and the National Museums ofKenya stepped in to run the project and asmall grant was ound to pay or trainingthe village armers to produce orestbuttery pupae or export. From 1994 to2001 community earnings totalled overUS$130,000. Through this community-based work, armers and their amiliesnow have in-depth knowledge o insectliecycles, parasites and diseases. More,there has been no adverse eect on wildbuttery populations.

Source:Gordon, A. and Ayiemba, W. 2003. Harnessingbuttery biodiversity or improving livelihoods and orestconservation: the Kipepeo Project. The Journal of

Environment & Development. 12, 1: 82-98.


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Big ideas in development: Biodiversity

New wealth of nations:

biodiversity and pooreconomiesTake a forest in rural India. Localvillagers graze their livestock, gatheruelwood, ruit and medicinal bark, and

hunt or honey. The trees help preventdrought and ood damage by drawingup groundwater and anchoring soilswith their roots.

Most, i not all, o such direct andindirect ows o value into rural ororest-dependent households arepublic goods and services received

ree rom wild nature, and not priced ortraded in any markets. Because othis, ecosystem services areeconomically invisible.

And they do not generally fgure inthe national accounts that measurea countrys economic activity.

Does this matter? Yes. We cannotmanage what we do not measure,and economic invisibility is not a

good starting point or ensuring thatecosystem services thrive. We riskdepleting them because o trade-os such as replacing orests withcultivated crops.

Putting a value on nature and actoringthat into national accounting can helpgovernments and business wake up to

the act that healthy economies rest onhealthy ecosystems as do thewellbeing and livelihoods o thepoorest o the rural poor.


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Measuring whatwe manage

We have some way to go in makingthese connections. First o, the wayswe currently measure wealth anddevelopment are all limited.Traditional statistics capturingnational income, such as GDP,measure the ow o goods andservices. But they can be misleadingas indicators o social progress in

mixed economies (which combineagriculture-driven rural economieswith more industrial and service-sector-driven urban economies)because they ail to represent naturalresource ows accurately, i at all.Given the rural poors heavydependence on those ows, thismeans the statistics also ail to tell

us much about them.Clearly, the focus on income alonedoesnt paint an accurate picture o acountrys development. Unortunately,neither do most o the alternatives toGDP. The UN DevelopmentProgrammes Human DevelopmentIndex (HDI), or instance, was crated

to measure human wellbeing as wellas economic progress. But the index which measures lie expectancy atbirth, literacy and school enrollment,and standard o living does not lookat the contribution o naturalresources to livelihoods.

Developing national green accounts,which would adjust GDP to account

or the depletion o natural capital, isa step in the right direction.

Even this, however, ails to show thesocial dimension because o thetyranny o the average: available

indicators such as GDP average outthe incomes and savings o rich andpoor alike, and so give no indicationo their relative ortunes.

A tale o two tragedies

For developing countries wherethe poor depend heavily on naturalresources both or their day-to-day

living and employment, ourcollective ailure to measure the trueeconomic, social and environmentalwealth o nations accuratelycan easily become a tale otwo tragedies.

The frst tragedy is that excludingecosystem service ows romnational accounts results in a lack opolicy attention and public investmentin ecosystem and biodiversityconservation which carries the risko triggering an unsustainable utureor generations to come.

The second tragedy is linked to thetyranny o the average. A combinationo psychological conditioning and

bad economics has made GDPgrowth a proxy or all orms o nationaleconomic perormance somethingit was never intended to be. Whatmay look like development at thenational level can mask static orworsening environmental andeconomic conditions or millionso the poor. Rapidly industrialising

countries such as China and Indiaare cases in point.


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GDP o the poor

I we ocus closely on the wellbeingo the poor, the costs to their welareo losing or acing shortages in naturalcapital such as clean water becomereal (see Raining wealth, opposite).As these costs are not usually recordedsystematically, however, they are largelyinvisible to policymakers. To counteractthis, a UN study on The Economics ofEcosystems and Biodiversity (TEEB)

has proposed a new indicator, GDPo the poor. This weighs up the valueo ecosystem services or peopleordinarily under the accounting radar herders, small armers and oresters,and others involved in inormal, naturalresource-based work.

TEEB crunched the numbers ormixed economies with big disparities

in income, such as India and Brazil, andhas already shown that compared to

the national economy, the economicactivities o the rural poor are muchmore dependent on biodiversity and

vulnerable to its loss. In India, orexample, ecosystem services count or16 per cent o GDP but 47 per cento GDP o the poor (see Ecosystemlosses and poverty, below). Exerciseslike this, that rerame biodiversity ascentral to national prosperity, are acrucial frst step to better national policy and could become an engine or

change worldwide.As well see next, sustainably usingbiodiversity is also crucial in tacklinganother global issue: climate change.


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Ecosystemlosses and

povertyGDP o the poor is mostseriously aected byecosystem losses

Source: Gundimeda, H. and Sukhdev, P. GDP o the poor data.In TEEB. 2010. TEEB for National and International Policy Makers.www.teebweb.org/ForPolicymakers/tabid/1019/Deault.aspx.

Ecosystem services

as a percentage oclassical GDP

Ecosystem servicesdependence

Ecosystem servicesas a percentage oGDP o the poor

Ecosystem services


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Raining wealth

A arming village in the arid reaches

o Indias Maharashtra state mightseem an unlikely hotbed o auence.Yet Hiware Bazaar boasts over 50wealthy amilies and one o thecountrys highest average ruralincomes and all rom goodstewardship o natural richescoupled with solid support romnational government. The turning

point came in the early 1990s, whenlow rainall and unsustainable use oorests culminated in acute watershortages. Little land could bearmed, and many moved away.Galvanised by the crisis, villageelders and leaders drew up a plan orintegrated management o their watersupplies and orests and harnessedsupport rom the governments

Employment Guarantee Scheme.Locals regenerated 70 hectares ofdamaged orest and built 40,000small earthen dams or bunds atraditional rainwater collectionsystem that recharges groundwater.

The result? Wells have doubled innumber, more land is under irrigation,odder and milk production isbooming, and arming income shotup to US$550,000 in 2005 alone.

Hiware Bazaar reveals that whengovernments value small-scale ruraleorts, village economies will showup on the national radar.

Source: TEEB. 2010. Box 5.1: A villagewith 54 millionaires: agricultural revolutionin an Indian village. In TEEB for Local andRegional Policy Makers. www.teebweb.org/ForLocalandRegionalPolicy/tabid/1020/Deault.aspx.

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99 million

Indonesia

352 million

India

20 million

Brazil


79%

21%

25%

75%

84%

16%

53%

47%

90%

10%

11%

89%


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32


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33


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Global wins:

breathing life intoclimate solutionsClimate and biodiversity are profoundlyinterlinked unsurprisingly, as theatmosphere orms part o thebiosphere, and planetary systems suchas the water and carbon cycles arebound up with both. So disruptions toclimate will aect biodiversity, and viceversa. As human-driven emissionscontinue to push up atmospheric levelso greenhouse gases and triggerclimate shits, impacts such as longerdrought will aect biodiversity or

example, by killing off forests. Losses ofhabitats and species aect climate intheir turn say, when orests are elledand locked carbon released.

Both biodiversity loss and climatechange hit marginalised people inpoor countries hardest, and togethercan create a downward spiral with thepoor caught in the middle. But, as wewill see in this chapter, protecting andsustainably using biodiversity canhelp in lessening the oten intertwinedenvironmental and social impactso climate change.

Lose-lose scenarios

Right now, one o the most severe othose intertwined climate impacts is

the destruction o coral rees. TheInternational Coral Reef Initiative,which partners governments withinternational organisations and NGOs,estimates that catches rom coral reessupport a billion people in Asia alone.Yet rees are degrading at a righteningrate as climate change causes the

seas to warm and become moreacidic. In the Caribbean, nearly 30 percent o warm-water corals havedisappeared since the 1980s. Andterrestrial species are suering too(see Birds at the borderline, page 36).

The Intergovernmental Panel onClimate Change the thousandso researchers who assess climatescience says temperature increasesabove 2 to 3C are very likely totrigger substantial changes in allecosystems structure and unctional


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36

Climate change is effectivelyredrawing the ecological map.Shiting rainall, rising temperaturesand other impacts are orcing changein ecosystems: as plants, insectsand microorganisms ail or thrive

under the new conditions, habitatand ecosystem borders shrink orexpand. Populations o specieshigher up the hierarchy, like birds,may die out or move on. For poorcommunities, that means the losso vital cogs in the provision oecosystem services such as pestand disease control, pollination

and a link in the ood chain.Scientists rom global birdconservation charity BirdLifeInternational, the universities oDurham in the UK and Copenhagen inDenmark, and the UK-based RoyalSociety or the Protection o Birdshave modelled how climate change isaecting the distribution o breeding

birds in sub-Saharan Arica. As birdscan serve a canary in the coal minerole in relation to biodiversity, themodels are good indicators o theuture health o regional ecosystems.The fndings show that by 2085,when climate change is set to gripharder, the mix o bird species inAricas Important Bird Areas (IBAs) key bird and biodiversityconservation sites is likely to change

Birds at the

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dramatically. As conditions in IBAsshit, some species will move on andothers move in, with big potential

impacts on ecosystem services.What kind o services? For the Boran,pastoralists in the arid reaches onorthern Kenya where climate shitsare likely to turn up the heat, birdssuch as oxpeckers, vultures andhoneyguides deliver direct benefts.The honeyguide reveals the locationo wild beehives to the Boran andsaves the hunter almost 65 per cent othe time they would otherwise havespent on the search. Honey is a key

ood, medicine and cash commodityor the Boran.

The map below shows how the mix o

bird species in Aricas IBAs maychange by 2085 under projectedclimate scenarios. Warmer coloursindicate a higher projected shit: redsites show a predicted change in over80 per cent o bird species.

Source:Hole, D. G. et al. 2009. Projected impacts oclimate change on a continent-wide protected areanetwork. Ecology Letters 12: 112; Isack, H.A. 1987.

The cultural and economic importance o birdsamong the Boran people o northern Kenya. InDiamond, A.W. and Filion, F. (eds) The Value of Birds.Technical Publication No. 6. The InternationalCouncil for Bird Preservation (BirdLife International),Cambridge, UK.

Percentage turnover

o bird species

0 20

21 40

41 60

61 80

81 100


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capability, and that the rise mayhappen too ast or ecosystems toadapt. I we make no change to

emissions levels, we could hitan increase of 4.8C by 2100.

The implications o this or all o us arenot good. The implications or the poorare worse. The eects o waningbiodiversity, such as scant orage anddisappearing game, combined withclimate impacts such as drought,ooding, sea-level rise and cyclones,can devastate communities alreadyliving on the edge.

However bleak these pictures,biodiversity could be part o thesolution to climate change. Wesaw in Chapter 2 how biodiversitymakes or resilient environments.Conserving and managing

biodiversity can help mitigate orcurb eects o climate change andhelp vulnerable people and thenatural systems they rely on adaptto changing conditions.

Controlling carbonto regulate climate

Some ecosystems contain hugestores o carbon: orests lock inabout 50 per cent o terrestrialcarbon, while peatlands hold about25 per cent o all soil carbon. Healthygrasslands, oceans and water bodiesalso absorb and store hety amounts.However, these ecosystems releasecarbon dioxide (CO

2) into the

atmosphere when they are cut, burnt,drained or converted to other uses,contributing to the emissions that uelglobal warming. In act, land usechanges, particularly deorestation intropical regions, are responsible orbetween 15-20 per cent o human-driven CO

2emissions.

By preventing this kind o land usechange and conserving carbon-richhabitats, we can do atmosphere andbiosphere a avour. Biodiversitymeanwhile plays a starring role inmaintaining the integrity o carbon-richecosystems. In tropical orests, manyo the most carbon-dense tree speciesrely on a range o animal species to

transport their seeds and ensuresuccessul reproduction.

International fnancing mechanisms arecurrently being developed to pay orsuch carbon storage schemes atleast or orests. These paymentscould potentially provide a signifcantsource o income to poor people whoare oten the managers, custodians orowners o these lands.


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Big ideas in development: Banking on Biodiversity

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REDD a green solution?One such fnancial mechanism isknown as REDD (reducing emissionsrom deorestation and orestdegradation) sometimes extended toREDD+, where the + signifes the roleo conservation, sustainable

management o orests andenhancement o orest carbon stocks.REDD and REDD+ have real potentialor oering signifcant, stable ows oincome to poor orest communities(see Community, cash, carbon,page 42). But the right saeguardsmust be in place to ensure that theirknowledge and rights over the orests

are recognised, and that biodiversityand ecosystem services are maintained.

Ecosystems: rstline o deence

Even i mitigation succeeds, theeects o climate change willalmost certainly persist or centuries.Adapting to those impacts in the

here and now is increasinglyrecognised as vital. Weve alreadyseen how biodiversity buers blowsto the environment. As TEEB puts it,the stabilizing effect of a biodiverseportolio is likely to be especiallyimportant as environmental changeaccelerates with global warmingand other human impacts. Suchsecurity value is most important,o course, to the poor.

Poor communities are oten regardedas helpless victims o climate change.But while they are being hit hardest,many in these communities arepractised innovators equipped withsolutions that recognise the closelinks between wellbeing, livelihoodsand nature.

In Bangladesh, subsistence andcash-crop armers are fghting theoods that wash their crops away byresurrecting an old tradition: baira,oating plots ashioned rom clumpso the invasive water hyacinth, packedwith mud and planted up with okraand other cash and subsistence

crops. Baira ride the tides withoutbecoming inundated, and biodegradewhen spent. Cheap, replicable,green and using only whats on oerlocally, this age-old technique is moreeective than many 21st-centuryconcepts imported into the country.

The poor, working with nature onsot solutions like this, that supporthealthy and resilient ecosystemservices, can provide a morecost-eective and sustainableresponse to climate change thaninvestment in hard technological orinrastructural alternatives such asood barriers. Engineered solutionscan end up working against nature

when they aim to constrain naturalperiodic cycles such as annualriver ooding.


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Community, cash, carbon

The Amazon may be a byword or

biodiversity, but cattle ranching, crime andcorruption destroy many poor communitiesin this region. They are also big drivers o thelogging that has decimated an estimated 17per cent of Brazils rainforest. Now, deep inthe orest covering most o the countryslargest state, Amazonas, a community isshowing how REDD (reducing emissionsrom deorestation and orest degradation)

can buck this trend. Through the JumaSustainable Development Reserve REDDProject, amilies here conserve their orest and cut emissions in exchange or socialand economic investment, including a debitcard that can be used in local banks andpost ofces. By 2050, the project aims tohave prevented the release o 189 milliontonnes of CO

2

equivalent. Run by thenon-proft Amazonas SustainableFoundation, Juma is part o Bolsa Floresta,a payment or environmental servicesprogramme initiated by the state governmentand banking giant Bradesco that supportsover 6800 amilies in Amazonas protectedareas. In 2008, ater independent validation,the Climate, Community and BiodiversityAlliance awarded Juma its highest (Gold)standard. And in 2010 the RainorestAlliances Eco-Index database onconservation projects across the Americasrecognised Juma as frst in the monitoringand evaluation methodology category.

Sources: Amazonas Sustainable Foundation. www.as-amazonas.org/en/; Viana, V. 2009. Seeing REDD in theAmazon: A win for people, trees and climate. IIED Opinion.IIED, London. http://www.iied.org/pubs/pdfs/17052IIED.pdf.


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The next time you get a prescription,think about where the stu in thatbottle or box originated. Lets say itsthe bark o a Southeast Asian tree,prized or centuries as an inectionghter by forest people. Like manysuch olk remedies, it arrived at your

chemists through a circuitous route rom pharmaceuticals scout to thelab scientist who isolated thecompound, a manuacturer in India,packager in Belgium and retailer inCroydon, Paris or Des Moines. Theruit has allen a long way rom the tree.

We have a vast and seemingly limitless

supply, and choice, o ood and

medicines. So we may barely noticei one product disappeared rom theshelves another would switly takeits place.

But what i the only wound treatment aVietnamese village has is a stand o

those trees? Chop them down and itsa very dierent story. When you liveup close and personal with nature, thedemise o treasured sources or oodor basic medicine is calamitous.

Ultimately, we all depend onbiodiversity absolutely. But or those ous living in the industrialised North, ourprosperity, globally networked markets,complex social and political systems,

ConclBiodiversity a

development issue


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usionand oten obsessive ocus ontechnological fxes make losingbiodiversity a near-abstract concept.Our hal-divorce rom nature buers usrom its loss, at least in the short term.

Yet the environmental and humancosts o that loss continue toskyrocket. It has never been moreurgent or us to counteract ourtendency to either seebiodiversity as a parade o

plants and animals out there,or ail to think o it at all. We needto make the biodiversity drain and itstoll on the poor, and on us all, visible.Visible, that is, not just in terms oawareness, but in terms o gettingit onto balance sheets, and intothe boardrooms where bigdecisions are made.


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A th o Earth

The elephant in the room here is anethical issue. As weve seen, the ruralpoor in developing countries are theprimary custodians o biodiversity. Inact, indigenous peoples manage orcontrol nearly 20 per cent o theEarths surace. Their knowledge andcustoms have sustained thousands ocrop varieties and medicinal plantsover millennia, yet many barely beneft

when resources or land are shared.From game parks that shun the villageswithin them to Northern patents onSouthern riches, the pattern isrepeated all over the developing world.

Back in 1992 when governmentsadopted the UN Convention onBiological Diversity (CBD),

industrialised countries agreed toshare the benefts rom geneticresource use with poor developingcountries. Such a deal could pave theway or changed lives and livelihoodsamong some o the worlds poorest.It could also be a strong incentive orcontinued biodiversity conservation.But, so far, this North-South

agreement has ailed to materialise and even i it does, just like REDD (seeChapter 4), it will need carefulprovisions and saeguards.

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Wild card:the ultimate

life insurance


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What can we do?

Can we do anything on the ground?Seeking out biodiversity-riendlyproducts like Marine StewardshipCouncil (MSC) certied sh, orbananas, coee and cocoa certifed bythe socially and environmentallyocused Rainorest Alliance, is one wayo voting with our eet. Think aboutwhether you have to y and i you haveto, oset your emissions with a scheme

that ensures poor people andbiodiversity benet too. The Climate,Community and Biodiversity Alliancehas developed voluntary standards tohelp design and identiy landmanagement activities thatsimultaneously reduce emissions,support local communities andconserve biodiversity

(www.climate-standards.org).

47

The disappearance o the living abric o our planet is the pulling o a globe-sizedrug rom beneath our collective eet. Yet as a global community, we are ailing tostop it. Worldwide, spending on biodiversity loss is an estimated US$8-10billion a year, when we need something like fve times that just to make protectedareas work effectively. Most glaringly, the North provides just US$1.25 billiona year in biodiversity aid to the South. We need to think about our choices.

Faced with economic meltdown in 2008/9, the UK spent over 100 billion(US$133 billion) on bank bailouts. Faced with a more undamental breakdown,we manage a raction o that. The cost some US$4 trillion a year in loss onatural services, according to The Economics o Ecosystems and Biodiversity(TEEB) study is a blow to human welare. I were to balance the planetarybooks, the frst step is recognising the value o biodiversity.



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Ash, N., and Jenkins, M. 2007.Biodiversity and PovertyReduction: The importance ofbiodiversity for ecosystemservices. UNEP-WorldConservation Monitoring Centre,Cambridge, UK.

BirdLife International. 2010.

Key Messages for COP-10 of theConvention on Biological Diversity(CBD) in Nagoya. Webpage.www.birdlie.org/eu/EU_policy/Biodiversity/nagoya-birdlie-key-messages.html.

BirdLife International. 2009.Partners with Nature: Howhealthy ecosystems are helpingthe worlds most vulnerableadapt to climate change. BirdLifeInternational, Cambridge, UK.

www.birdlie.org/climate_change/pds/Ecosystemsandadaption.pd.

Borrell, B. Biodiversity aid lags incorrupt countries. 5 July 2010.The Great Beyond blog. Nature.http://blogs.nature.com/news/thegreatbeyond/2010/07/biodiversity_aid_lags_in_corru.html.

Clark, T. UK public spending bygovernment department. 17 May2010. Datablog. Guardian.

www.guardian.co.uk/news/datablog/2010/may/17/uk-public-spending-departments-money-cuts.

Fischlin, A. et al. 2007.Ecosystems, their properties,goods and services. In M.L. Parryet al. (eds) Climate Change 2007:Impacts, adaptation andvulnerability. Contribution ofWorking Group II to the FourthAssessment Report of the

Intergovernmental Panel onClimate Change. CambridgeUniversity Press, Cambridge, UK.

Hole, D. G. et al. 2009. Projectedimpacts o climate change on acontinent-wide protected areanetwork. Ecology Letters 12: 112.

IUCN Bangladesh. FloatingGardens (baira) or SustainableLivelihood in Selected Haor Areaso Bangladesh. Webpage. www.iucnbd.org/projects/baira.html.

Reid, H., and Swiderska, K. 2008.Biodiversity, Climate Changeand Poverty: Exploring the links.IIED Opinion. IIED, London.www.iied.org/pubs/pds/17034IIED.pd.

Roe, D., Walpole, M., and Elliott,J. 2010. Linking BiodiversityConservation and PovertyReduction: Why, what and how?Summary report o a symposium

held at the Zoological Societyof London, 28-29 April 2010.http://povertyandconservation.info/docs/20100901_ZSL_Symposium_Report.pd.

Vedeld, P., Angelsen, A., Sjaastad,E. and Kobugabe Berg, G. 2004.Counting on the Environment:Forest incomes for the rural poor.Environmental Economics SeriesNo. 98. The World Bank,Washington DC.

Viana, V. 2009. The Costs ofREDD:Lessons from Amazonas.IIED Brieng. IIED, London.www.iied.org/pubs/pds/17076IIED.pd.

World Bank EnvironmentDepartment. 2009. ConvenientSolutions to an InconvenientTruth: Ecosystem-basedapproaches to climate change.The World Bank, Washington DC.

Climate, Community and

Biodiversity Alliancewww.climate-standards.org.

Climate InteractiveClimate Scoreboardhttp://climateinteractive.org/scoreboard.

Global Biodiversity Outlook 3http://gbo3.cbd.int.

Millennium EcosystemAssessmentwww.millenniumassessment.org/en/index.aspx.

Poverty and ConservationLearning Groupwww.povertyandconservation.ino

References &

further reading

Acknowledgements

Melanie Heath, Senior Advisor, Climate Change, at BirdLife International,or review and technical advice; Stuart Butchart, Global Research andIndicators Coordinator, BirdLife, for co-authorship of Birds at the

borderline, page 36; Matt Walpole, leader o the EcosystemAssessment Programme at the UNEP-World Conservation MonitoringCentre, for help in brainstorming; and Prue Waller, for picture research.

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About the authors

Dilys Roe is a senior researcherat IIED, specialising in biodiversity.Her work ocuses on the links

between biodiversity conservationand poverty alleviation, and shecoordinates the Poverty andConservation Learning Group.

Pavan Sukhdev is SpecialAdvisor and Head of UNEPsGreen Economy Initiative amajor project demonstrating thegreening o economies as a newengine or growth, employmentand the reduction o persistentpoverty and Study Leader forthe G8+5 commissioned reporton The Economics o Ecosystemsand Biodiversity (TEEB)* while onsabbatical rom Deutsche Bank.

David Thomas is Head oCommunities and Livelihoods atthe BirdLife InternationalSecretariat. He coordinates thedifferent strands of BirdLifes worklinking biodiversity anddevelopment, especially at thelocal level, and specialises onissues o conservation and

governance, equity, rights andpoverty reduction.

Robert Munroe is ClimateChange Ofcer at BirdLifeInternational. With an academicbackground in environmentalpolitics, he provides support toBirdLife Partners on climatechange policy, specialising inadaptation. He represents BirdLifeon adaptation issues at the UnitedNations Framework Conventionon Climate Change negotiations.

*The Economics o Ecosystemsand Biodiversity (TEEB) study isa major international initiativedrawing attention to the globaleconomic benefts o biodiversity,

to highlight the growing costs obiodiversity loss and ecosystemdegradation, and to draw togetherexpertise rom the felds o science,economics and policy to enablepractical actions to move orward.

TEEB Central OfceUNEPBonn, Germanywww.teebweb.org

Image credits

Cover (hand) kkgas/iStockphotoP2 Chris Stowers/PanosP7 G.M.B. Akash/Panos

P9 benfschinger/ShutterstockP10 Paul Smith/PanosP14 NightOwlZA/iStockP15 Nico Smit/iStockP18 Giuseppe Bizzarri/FAOP21 Marco Alegria/ShutterstockP22 Giulio Napolitano/FAOP24-25 ethylalkohol/ShutterstockP26 Giulio Napolitano/FAOP29 Piers Benatar/PanosP32-3 Mikkel Ostergaard/PanosP34 Giulio Napolitano/FAOP36 Stig Nygaard

P39 3355m/ShutterstockP40 Practical Action BangladeshP42-3 Dr Morley Read/Shutterstock


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Joined-up thinkingat its most urgent

Were in the midst o a biodiversitycrisis so science and the mediakeep telling us. But what does it really

mean i the variety and abundanceo genes, fsh, bacteria, rhinos, treesor crop varieties decline? It might allseem a little abstract or those o uswhose urbanised, high-tech liveshave let us ar removed rom naturein the raw.

For the billion or so rural poor in the

developing world, its all too real.Direct dependence on the bounty oorests, deserts and coasts can makebiodiversity loss a case o losing all:ood, uel, building material, medicine,orage, livelihoods and culture.

The good news is that it can workthe other way. Poor communities,as long-term stewards o theSouths natural riches, are steepedin proound knowledge about them.As this pocketbook shows, workingwith them can reverse the downwardspiral o environmental degradation.By banking on biodiversity, we canprotect our natural legacy whiletackling poverty locally, nationallyand globally.

The International Institute orEnvironment and Developmentis one o the worlds top policyresearch organisations working

in the feld o sustainabledevelopment. With its broadbasednetwork o partners, IIED ishelping to tackle the biggestissues o our times rom climatechange and cities to the pressureson natural resources and theorces shaping global markets.

You can download over 4000IIED books, reports, briefngs,discussion papers and journalsree at www.iied.org/pubs.

IIED3 Endsleigh Street,London WC1H 0DDUnited Kingdomwww.iied.org

BirdLife International is apartnership o 114 national, civil

society conservation organisationsand the world leader in birdconservation. BirdLifes unique localto global approach enables it todeliver high impact and long termconservation or the beneft onature and people. Our mission is toconserve birds, their habitats andglobal biodiversity, working withpeople towards sustainability in theuse o natural resources.

BirdLife International

Wellbrook Court, Girton RoadCambridge CB3 0NAUnited Kingdomwww.birdlie.org

Documents

Banking on Biodiversity