Environment and development
in coastal regions and in small islands


A platform for action for the sustainable management of mangroves in the Gulf of Fonseca

Action 1: Harmonize Resource Use among Different Interest Groups

There are multiple stakeholders with diverse interests in the use and transformation of the mangrove ecosystem in the Gulf of Fonseca. Although these stakeholders may compete for the ecosystem goods and services there is also potential to harmonize their interests in order to secure the sustainable management of the ecosystem.

A diverse group of stakeholders in the Gulf of Fonseca depends on the mangrove ecosystem (PROGOLFO 1999). Coastal communities and artisanal fishers rely on the mangroves to provide a breeding ground and nursery for a variety of fish, mollusks, and crustacea that are caught in the estuaries and the open sea. The offshore industrial fisheries depend on the health of the mangrove ecosystem to ensure that the shrimp harvest is abundant. Aquaculturists also hold interests in the mangroves because these ecosystems provide the shrimp larvae that they require to supplement laboratory varieties and stock the ponds and tanks where the shrimp will be cultivated. Farmers and livestock producers depend upon the buffer zones, windbreaks, and filtration services provided by the mangroves to prevent salt-water intrusion and protect their investments from damage by hurricanes or flooding.

Previous research estimating the "total economic value" of a mangrove ecosystem in part of the Gulf of Fonseca in El Salvador developed a cost-benefit analysis to compare the sustainable management of the forest with alternative use scenarios (Gammage 1997). Three different management strategies were considered: partial conversion to semi-intensive shrimp farming and salt production; the do-nothing strategy of deforestation, land clearance, and degradation; and the sustainable management option (see table 1).

Table 1. The Net Present Value of the Different Scenarios until 2050 at Current Market Prices (thousands of 1992 colones) [a]

El Tamarindo, El Salvador
Net Present Value
Current Management Strategy:  
Local Fuelwood and Timber Benefits [b]
17,552
Local Artisanal Shrimp and Fish Benefits [c]
718,608
National Industrial Shrimp Benefits from Offshore Fisheries 
859,236
Local Rustic Salt and Shrimp Benefits [d]
3,275
Total
1,598,671
Partial Mangrove Conversion:  
National Clearance Logging Benefits
55,445
Local Fuelwood and Timber Benefits
10,010
Local Artisanal Shrimp and Fish Benefits
700,981
National Industrial Shrimp Benefits from Offshore Fisheries 
724,514
National Shrimp Aquaculture
105,721
Total
1,596,671
Sustainable Management Option: [e]  
Local Fuelwood and Timber Benefits
23,809
Local Artisanal Shrimp and Fish Benefits
761,652
National Industrial Shrimp Benefits from Offshore Fisheries 
1,444,080
Local Rustic Salt and Shrimp Benefits
3,275
Total
2,232,816

[a] The net benefits derived from the extraction of mangrove resources are classified according to the location of the individual, community or private sector interests that receive them. Clearly a shift from the current management strategy to the sustainable management strategy benefits the local community as well as national interests by maximizing the rents available for fuelwood and timber, artisanal shrimp and fish, and industrial shrimp from offshore fisheries.
[b] The population that depends directly on the mangroves was approximately 16,500 in 1999 growing at 2.3 percent per year. The costs and benefits were calculated assuming that all timber needs would be met, and that fuelwood consumption would be determined by the remainder.
[c] All fisheries' benefits are net of primary producer costs, that is direct and indirect fishing costs: labor, capital, maintenance, and petroleum. All capital goods are amortized over the lifespan of those goods and discounted at the cost of borrowing for these firms.
[d] In both the current and sustainable management scenario, rustic salt and shrimp production is assumed to operate until receipts no longer cover the costs of variable production.
[e] The sustainable management option maximizes the net present value of all benefits extracted.
Note: $1= 8.7 colones in 1994. The real discount rate applied is 7.08 percent.

Source: Gammage 1997

The primary goal of the cost-benefit analysis was to provide indicators of how benefits from natural resource use might be maximized and the rational management of the mangroves secured. A variety of different valuation techniques were used to assess the contribution of different products and services of the mangrove ecosystem. As can be seen in table 1, the sustainable management strategy enables more timber and fisheries benefits to be captured than do the other management options. Both the current management strategy and the partial conversion strategy yield fewer benefits than the sustainable management strategy.

The industrial fishers gain the most out of shifting to a sustainable management strategy; they are able to extract almost twice the benefits that they obtain under the present management strategy. Artisanal shrimp benefits are also maximized under the sustainable management scenario. The sustainable consumption of timber and fuelwood by the local population also yields more value than the current pattern of extraction which increases pressure on the ecosystem without maximizing net benefits.

This means that there is tremendous opportunity to build alliances among the potential beneficiaries and to work toward applying a definition of sustainable mangrove management that respects sovereignty and includes all parties in the design and application of such a strategy.

The loss of mangrove cover clearly imposes costs upon all of these stakeholders denying them ecosystem goods and services and reducing the ability of the ecosystem to support a diverse range of livelihood and economic activities (Ibarra Turcios et al. 2000; Gammage 1997) (table 2 illustrates this by charting the losses associated with Hurricane Mitch). The fact that these different stakeholders can benefit from the sustainable management of the mangroves gives a clear precedent for change. In Honduras, shared concern about the ecosystem has prompted aquaculturists, environmentalists, and community members to come together to explore how they might better protect the ecosystem and harvest its resources sustainably (see box on this page on creative solutions). Three steps are needed for more rational and socially optimal mangrove management to emerge: first, the definition of sustainable management by a broad coalition of stakeholders; second, the redefinition of property rights consistent with the definition of sustainable management; and, third, the creation of institutions or modification of existing ones to enable the sustainable management plans to be operationalized and implemented.

Next Steps

» Bring stakeholders together. A broad coalition of stakeholders should be brought together to form a multi-sectoral commission in each country that includes the primary stakeholders in the mangrove ecosystem and the institutions that assign access rights or enforce compliance:

A Creative Solution Involving Many Stakeholders
The recently approved "Proposal for Protected Areas in the Gulf of Fonseca (AAPP)" is an example of a collaborative effort to bring multiple stakeholders together to define and implement a creative mangrove management strategy in Honduras. CODDEFFAGOLF and the Honduran Forestry Ministry (COHDEFOR) began work to define an appropriate management strategy for multiple use wetland areas in the Gulf of Fonseca. Later, CODDEFFAGOLF gained the support of the National Association of Aquaculturists (ANDAH), an organization representing industrial shrimp aquaculturists whose interests have traditionally been at odds with CODDEFFAGOLF and the local communities. On January 20, 2000, The Honduran government finally approved this concerted effort through Decree #5-99-E, which united diverse interest groups. The AAPP will cover a surface area of 107,000 hectares, and include islands, mangrove, estuaries, and wetlands. It will consist of a national marine park, two multiple use areas, and eight management zones dedicated to the fragile habitat and species (http://www.morazan.tripod.com/cgolf/acuerdo.htm).

It will be a true challenge to implement this management plan effectively, but the initial results appear promising. The role of local and state actors in verifying adherence to the agreement will prove to be critical. International and local proponents of conservation policies must be equally inclusive of local economic and social development needs, and existing communal arrangements. Furthermore, governments and NGOs must inform communities how the AAPP will influence their present use and management of coastal resources. An open and participatory forum must be established where communities can voice their concerns, and where diverse stakeholders can continue discussing how best to harmonize their interests, given the AAPP procedures and continued pressure on the ecosystem.

» Define sustainable management in each country. An operational definition of sustainable mangrove management needs to be developed for both Honduras and El Salvador. Although this definition should take account of international and regional agreements about natural resource use, it should also respond to national priorities and respect the sovereignty of each country. The multi-sectoral commissions should develop a definition of sustainable management of the mangroves that is consensus driven and reflects the interests and concerns of all constituent members. The sustainable management plan should define whether the mangroves are to be used for extractive purposes and how much degradation will be tolerated. The commissions should reach consensus on whether and at what rate the extraction of fuelwood and timber should continue. Similar choices need to be made about the extent of conversion to alternative uses such as salt production and aquaculture that will be contemplated in the national plans. Particular effort should be made to ensure that the communities have voice in this process and that the needs and concerns of women are adequately reflected in national plans. This commission should establish clear guidelines and parameters for the use and transformation of the mangrove ecosystem that can be monitored and enforced.

Table 2. Hurricane Mitch

Hurricane Mitch provides a stark example of the risk associated with the gradual degradation and loss of environmental goods and services. The barrier protection afforded by coastal forests such as mangroves and the importance of forest cover in critical watersheds cannot be underplayed. The denuded hillsides and mountains and interrupted drainage have exacerbated surface water flow. Torrential rains and poor infrastructure coupled with high rates of poverty that left many populations in precarious living circumstances conspired to bring about an unacceptable loss of life. The financial and economic costs of the devastation were extremely high. Yet this extreme example of environmental vulnerability highlights the importance of the rational and sustainable use of environmental resources. If the provision of ecosystem goods and services are compromised, households and enterprises are affected directly through the loss of livelihoods. Environmental degradation, civil conflict, and the increasing marginalization of the rural economy have left few options for the majority of the rural inhabitants of Central America. Where environmental degradation contributes to the further loss of livelihoods in the region this has prompted significant out-migration, with the migrants typically leaving in search of economic opportunity in the United States and Canada. In the wake of Hurricane Mitch estimated migration rates have risen dramatically (OXFAM 1999a, b, c, d).

Summary of the Impact of Hurricane Mitch in Central America

 
Guatemala
Honduras
El Salvador
Nicaragua
Loss of Life
268
5,657
240
3,045
Numbers Missing
121
8,058
19
970
Loss or damage to Housing [a]
60,000
180,000
10,372
144,500
Coastal Population Affected (loss of housing, livelihoods, harvests and livestock)
49,795 [b]
100,476
37,885
163,737
Loss of Agricultural Production
$258 million
$1.7 billion
$95 million
$140.5 million
Loss of Aquaculture Production (harvests, larvae, ponds and machinery)
$2.6 million
$35.2 million
$0.7 million
$16.7 million

[a] Damage to housing includes all dwellings destroyed or partially destroyed. These figures are estimates from a combination of sources that tallied the total number of houses reported destroyed or damaged and the population made homeless for longer than one month.
[b] Estimated 10 percent of the population of the coastal municipalities of the departments of Escuintla and Santa Rosa.
All conversions assume exchange rates of 13.54 Lempiras, 8.7 Colones, 7.8 Quetzales and 10.6 Córdobas to US$ 1 at the close of December 1998.

Source: Honduran Government, January 1999; OXFAM 1999a, 1999b; Enríquez Villacorta 1999; CEPAL 1999a, 1999b, 1999c, 1999d; Inter American Development Bank Economic and Social Database 2000

_____________
[6] Although aquaculture ponds need not be located in areas that were formerly mangrove forest, this has historically been the case for mangrove conversion to aquaculture in El Salvador.

[7] Rustic salt and shrimp production describes low intensity shrimp cultivation practices with little or no capital and machinery. During the wet season the excavated ponds are flooded with estuary water and used for shrimp production. Shrimp larvae are captured in the wild and transferred to the hatchery pools where they await maturation. During the dry season the excavated areas are given over to salt production, tarpaulins are spread over the bottom of the pools, and estuary water is left to evaporate producing salt, a process which takes up to three weeks. The salt is then cleaned, refined, and bagged by hand.

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