Two-pronged Approach:
Biodiversity based Enterprises

 

The future of mankind can be assured only if we rediscover ways in which to live as
a part of nature, not apart from her.

HRH The Prince of Wales addressing UN climate conference COP15,
Copenhagen (December 2009)

In the ever-changing world of micro-enterprises, conservation programmes have begun to play a major role. In today’s times, the focus of conservation programmmes or projects is not limited to protecting the natural resource sites but also on building micro-enterprises for the community which, at a later stage, is independently managed by the community. This is mainly done to address the livelihood issue for the people living in or around these natural resource sites and simultaneously addressing biodiversity issues. Thus, developing biodiversity based micro-enterprises has the potential to lift individuals and communities out of poverty while conserving biodiversity.

Biodiversity and livelihoods - mainly in the rural context - have been closely linked. The restrictions posed on the natural resource-based communities in the pretext of biodiversity conservation have further added to their difficulties. Developing enterprises linked with the universal goal to conserve and preserve biodiversity is an option being weighted in the environment forum. The current focus of conservation programme is dual; not limiting to protection of natural resource only; it also focuses on building micro-enterprises for the community to enhance livelihoods. This is mainly done to address the livelihood issue for the people living in or around these natural resource sites with the aim that the local communities of the region will protect the biodiversity without degrading the environment and, in return, will benefit from it. Biodiversity based enterprises follow the goal of sustainable utilisation of the resource and add to the livelihoods of the communities simultaneously. These enterprises cover three aspects: conservation of biodiversity through the long-term sustainable use of biological resources; positive commercial returns on investments; and social, employment and cohesion benefits arising from the use of biological resources.

Communities and local enterprises which sustainably connect biodiversity as a means of income generation are frequently clubbed under the following categories: forest products (timber, palm fronds, pulp/paper products); non-timber forest products (rubber, resins, fruits, seeds, nuts); agricultural products (landrace / native crops, indigenous seeds, major and minor crops, roots, shoots and tubers, fruits, honey, beeswax); horticultural and botanical products (ornamental flowers, medicinal plants); agroforestry products (coffee, cocoa, cacao and other fruits); handicrafts and textiles (baskets, silk and cotton fabrics, embroidered fabrics); personal care and health items (cosmetics, soaps, essential oils, medicinal plants and supplements); aquatic products (edible and ornamental fish, oysters, pearls, sea urchins, seaweed, sea moss); livestock products (ostrich, green beef); and insect products (butterflies).

The studies says1 that approximately one billion people living in the tropics make extensive use of essential oils, gums and resins, fungi, fruit, edible oils, roots and other products for subsistence purposes and income generation. Recent studies indicate that the global natural products market is an estimated $65 billion2 and growing steadily. According to the World Bank (2001), some 350 million people worldwide living within or adjacent to dense forests depend to a great extent on them for subsistence and income. In developing countries, 1.2 billion people rely on agroforestry systems. Overall, one billion people3 depend on remedies derived from forest plants for their medicinal needs.

Thus, community based enterprises are initiatives at the frontiers of economic and institutional formalisation. This approach or model is practiced in various ways in today’s market; some are internally led, others are external donor-initiated projects, while yet others are driven by a local entrepreneur. Some operate within an informal economy, while others are incorporated as formal small- and medium-sized enterprises and cooperatives.

Moreover, the field-to-market (or: tourist-to-village) operations of most community based biodiversity products involve complex and expensive value chains (see figure below)4. The uneven transaction costs are one of the reasons why local enterprises seek incubation and financing from public and private domain investors seeking social, ecological, and financial returns - what has been called the ‘triple bottom line’.

The basis of success of such enterprises lies in the internal enabling conditions for the enterprise to develop, which help the communities to mobilise the skills and political support for the setup. The local leadership and community participation is the key to the sustenance of the enterprise. A multi-level approach which involves concerned stakeholders from the community at district, state and national level authorities might ensure long-term sustainability. Clarity in terms of different aspects, in return, will lead to improvement of rural livelihoods, while simultaneously protecting the environment and conserving high biodiversity areas. It is important to build the sense of ownership among the community with respect to these initiatives, and then only can the system be nurtured with benefits for the future.

Secondly, the external access to the finances, technological expertise and business services are essential in developing the backbone of the enterprise model. In this regard, the state-run extension units can be of immense support to the entrepreneurs in terms of the essential knowledge and technical support.

There are many initiatives taken by the government, companies and the communities to save the biodiversity. An example can be given of Green Livelihoods: Community Forestry Enterprises in Guatemala: Government-granted forestry concessions in the Maya Biosphere Reserve have reduced illegal deforestation while slowly improving the economies of the communities responsible for them. Ecotourism in Jordan5 by IUCN and Royal Society for the Conservation of Nature (Jordan) is another case in point.

Wild Jordan: In the Nature Business

Wild Jordan is the ‘entrepreneurial’ division of the RSCN. Its main focus is ecotourism.

In the six protected areas managed by the RSPN, Wild Jordan offers ecotourism services to visitors, including campsites, guesthouses, guided tours, etc.

Wild Jordan has also set up a line of handicrafts, engaging communities in the development of innovative products.

In the centre of Amman, Wild Jordan manages a shop which not only sells these handicrafts but also showcases ecotourism products and the protected areas.

Forty per cent of the RSCN budget is now secured through the operations of Wild Jordan.

Hence, there are several examples relating to micro enterprise and conservation of biodiversity.

Conclusion

It is to be noted that sustainable use of biological diversity is one of the objectives of the convention on biological diversity. This objective states6 that it is essential to achieve the broader goal of sustainable development and is a cross-cutting issue relevant to all biological and natural resources. Sustainable use entails the introduction and application of methods and processes for the utilisation of biodiversity to prevent its long-term decline, thereby maintaining its potential to meet current and future human needs and aspirations. Thus, the Conference of the Parties recognised the fact that conservation and sustainable use of biological diversity are essential to the survival of species and also benefit humankind, particularly those people who are dependent on biological diversity for their livelihoods. It is important to integrate the conservation and sustainable use of biological diversity into sectoral or cross-sectoral plans, and programmes and policies and addressing this issue in national biodiversity strategies and action plans. Now it has become our duty to develop plans and strategies in such a way that they are beneficial to the community and the environment as well. We should also include the communities from the starting of the project because they are the ones who will run the enterprises independently in the future. Hence, awareness generation regarding the environment and the issues or the problems that the world is facing today should be clearly understood by everyone. The methodology adopted should be such that communities understand the importance of biodiversity and believe that it is not only the duty of the government or NGO or agencies to protect the environment, it is their duty too. In fact, it is each individual’s responsibility to protect it, and use it in a way that the environment is not harmed. q

Sachi Singh
ssingh1@devalt.org

References
1. Vedeld et al., 2004, Schreckenberg 2006
2. FRAME 2006
3. Vedeld et al., 2004
4. Community Action to conserve biodiversity: Linking Biodiversity conservation with poverty reduction. UNDP 2006
5. www.rscn.org.jo
6. http://www.cbd.int/sustainable/intro.shtml

 

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