IS MARKET-ORIENTED FOREST CONSERVATION A CONTRADICTION IN TERMS

The destruction of forest ecosystems appears economically rational bec ause many of the values of intact ecosystems are not recognized in lan d-use decisions. Many authors have suggested that the conservation of intact ecosystems requires that markets be extended to increase econom ic benefits derived from the standing forest to the point where they o ut-compete alternative, destructive land-uses. Three such strategies f or market-oriented forest conservation are natural forest management f or high-value timber, the collection of non-timber forest products, an d biodiversity prospecting. In each case the proposed use of the ecosy stem is likely to prove socially and economically unsustainable, or to generate significant alterations in ecosystem structure which endange r its diversity, or both. The success of market-oriented conservation requires that sustainable extraction of useful organisms over the long term yields more profit than destructive activities. The market-orien ted conservation strategies examined, however, appear to yield too lit tle profit to out-perform alternatives such as agricultural production or the replacement of forests by pastures or plantations. In each cas e, key factors limit profits. The slow growth rates of natural forests combined with discounting hinders natural forest management. In the c ase of non-timber forest products, the typically low density of resour ces in tropical forests creates disincentives for sustainable commerci al production. The profitability of biodiversity prospecting is underm ined by the low probability of discovering species with medicinal prop erties and developing countries' inability to capture the information value of the genetic content of species. Furthermore, each of the thre e strategies also has potentially negative ecological impacts. In the drive to increase profits, each is likely to degrade ecosystems throug h over-exploitation of the resource, and prompt simplification of the ecosystem through forest management designed to increase the density o f profitable species. Ultimately, such activities are likely to lead t o the loss of biodiversity. Several conditions must be met for market- oriented conservation to be effective. Scientific understanding of for est ecosystems, and the ecological knowledge of both users and regulat ors must be sufficiently advanced to allow appropriate management regi mes to be designed to assure maintenance of the forest ecosystem despi te alterations caused by resource harvesting. The natural reproduction rate of the harvested resource must also be sufficiently rapid to jus tify leaving most of the resource undisturbed to guarantee its reprodu ction. Furthermore, the resource must be more cheaply and reliably pro duced in a natural forest than in a plantation, than by a synthetic su bstitute, or replacement through domestication. Finally, even where ec ological and economic conditions support market-oriented conservation, those making land-use decisions must be in a position to benefit from the sustainable harvest of forest resources. If they are unable to en force exclusive rights to the forests, the conservation effect of mark et-oriented strategies is likely to prove elusive. Nevertheless, strat egies for market-oriented forest conservation are a vital component of efforts to conserve biodiversity, and they must be improved to harnes s their full conservation potential. Resource management regulations, strong enforcement, and stable and secure property rights are essentia l preconditions. In addition, land-use planning should identify ecosys tems with lower biological diversity where marketable products are con centrated at economic densities. Areas of high biological diversity wi ll require non-market mechanisms to ensure their protection. In this c ontext, there is no substitute for fully protected areas, and their ex pansion is vital.