In Venezuela, the harvest of spectacled caiman (Caiman crocodilus) hers gen
erated significant economic benefits for citizens and the government wildli
fe department. Between 1983 and 1995 more than I million caiman were harves
ted with an export value in excess of $US 115 million. Although limited sur
vey data restrict quantitative comparisons most indications suggest that th
e harvest has been within sustainable limits. Hunting is conducted on priva
te lands in the central Venezuelan plains where caiman populations benefit
from cattle ranching management activities, particularly, the construction
of dry-season water holes. For ranchers, caiman hunting produces a high ret
urn on investment, but the overall earnings are small when compared to thos
e produced by cattle. Caiman are mostly a quick and easy source of income t
hat complements cattle ranching, and there is little incentive to actively
manage caiman populntions. The only evidence that the income from caiman ha
rvests generates economic incentives to protect caiman populations is that
landowners sold the skins of caiman illegally hunted in other areas, so ns
not to reduce their own caiman populntions and possibly diminish future hun
ting quotas. There is no evidence that caiman harvesting generates economic
incentives to protect natural habitat, because caiman benefit from human a
lteration of savanna habitats associated with the much more economically im
portant cattle ranching activities. Recent changes in how hunting quotas ar
e assigned have reduced economic incentives for landowners to protect caima
n populations, but the changes have made the quota-setting procedure simple
r: One of the greatest conservation benefits of the program has been its ab
ility to generate operating funds for the traditionally cash-strapped gover
nment wildlife agency through a variety of taxes and user fees. Due to a re
cent government restructuring, however, program proceeds will now go to the
central treasury and will no longer benefit wildlife management programs.