Compensating Poor Rural Communities for Ecosystem Services: Markets, Payments or Something Else? Herman Rosa, Directo

1. PROGRAMA SALVADOREÑO DE INVESTIGACIÓN SOBRE DESARROLLO Y MEDIO AMBIENTE SALVADORAN RESEARCH PROGRAM ON DEVELOPMENT AND ENVIRONMENT Compensating Poor Rural Communities for Ecosystem Services: Markets, Payments or Something Else? Herman Rosa, Director, PRISMA Communities and PES-CES

2. Communities and Markets for Ecosystem Services: An Uneasy Relationship • In May 2006 groups of indigenous, afroecuadoran and campesino origin demanded: “(...) the ANULMENT of all the contracts of environmental services sales affecting the territories of indigenous, afroecuadoran and campesino peoples, nations and communities in Ecuador” (Puyo Declaration: http://www.wrm.org.uy/paises/Ecuador/Puyo.html) • In Arenal (Costa Rica), some producers are unwilling to enter into the official PES scheme because they distrust the government and fear they will lose control over their lands(Porras y Hope, 2005) Communities and PES-CES

3. Three contrasting perspectives on PES-CES and Poor Rural Communities • PES is only a conservation tool. Adding explicitly the objective of community involvement for poverty reduction will impede efficient market functioning and reduce conservation benefits for all. • PES is a tool for poverty reduction and sustainable natural resource management, but community involvement requires addressing the market constraints that they face. • CES (Compensation for Ecosystem Services) is a tool to empower communities governance over territories they inhabit and control, while ensuring sustainable livelihoods and ecosystem services for themselves and for others. Communities and PES-CES

4. Choices of communities and their supporters before the contrasting PES/CES perspectives • ADOPT existing and developing Payments/Markets for ecosystem services (PES/MES) schemes if they have secure rights to natural resources at a significant scale and quality, as well as the technical and entrepreneurial capacities to gain successful entry into these markets. • ADAPT communities through capacity building so that they can enter into those schemes. Complementarily, seek to develop/shape/tailor PES/MES schemes so that they take into account communities conditions and concerns. • EXPLORE alternative scenarios and complementary avenues until a CES strategy emerges that is contextually embedded and furthers community-defined goals. Communities and PES-CES

5. Conditions for successful adaptation of communities to MES/PES schemes • Cultural values that do not resist commodification and market relations. • Secure control over natural resources so that MES/PES initiatives are not perceived as undermining that control. • An identified demand, as well as a relatively clear picture of the link between land use and ES provision. • Adequate stock of human and social capital to ensure effective collective action and reduced transaction costs. • Supporting organizations and intermediaries that do not subordinate communities to their own goals or material gain. Communities and PES-CES

6. 1 Practices for Self-Provisioning (food, water, fuel, spiritual well-being) Exploring complementary avenues … First things must come first • Poor rural communities depend heavily on the resource base and their management decisions seek FIRST to guarantee their self-provisioning of food, water, fuel and spiritual well being. • Communities welcome support to strengthen rights, improve practices, and strengthen institutions to guarantee self-provisioning. Communities and PES-CES

7. Exploring complementary avenues … Improving income generating activities 2. Practices for Income Generations (agriculture, agro-forestry, forestry, non-timber products, rural tourism, handicrafts) 1. Practices for Self-Provisioning (food, water, fuel, spiritual well-being) • Communities will welcome support to improve their EXISTING practices so that they can gain better entry into markets thus increasing their income: • Technical assistance, marketing support, infrastructure improvement, certification. Communities and PES-CES

8. Obtaining compensations for ecosystem services of regional and global interest • Build on improved practices for self-provisioning and income generation, to explore territorial management schemes, specific practices and compensations for ecosystem services of regional/global interest 3. Practices to Guarantee Ecosystem Services of Regional / Global Interest (water quality and water regulation, biodiversity, carbon sequestration) 2. Practices for Income Generation (agriculture, agro-forestry, forestry, non-timber products, rural tourism, handicrafts) 1. Practices for Self-Provisioning (food, water, fuel, spiritual well-being) Communities and PES-CES

9. Embedding CES: Putting it all together 3. Practices to Guarantee Ecosystem Services of Regional / Global Interest (water quality and water regulation, biodiversity, carbon sequestion) Critical Issues for Equitable and Efficient Schemes ____________________ Defend, Expand and Innovate Rights(access, extraction, management, tenure, transfer) Landscape Perspective that Values Human Action(anthropogenic components within landscape mosaics) Strengthen Organizational Capacity(for collective action, conflict resolution, external linkages) Compensation Supporting Improvements in the three-levels ____________________ Technical Assistance Infrastructure / Investment Support Marketing Support Financial Compensation Tenure Security Management Rights Supporting Negotiating Platforms 2. Practices for Income Generations (agriculture, agro-forestry, forestry, non-timber products, rural tourism, handicrafts) 1. Practices for Self-Provisioning (food, water, fuel, spiritual well-being) Institutional Arrangements(community, local, micro-regional, regional, national, global) www.prisma.org.sv