ECONOMICS UNIQUENESS

Notes
OVERVIEW ■ xxix
1. In this book, “heritage” refers to assets having the following characteristics: (1) physical
and/or non-physical assets inherited from past generations; (2) signifi cance to
community groups; and (3) being uncommon, rare, or unique. Heritage can include
man-made physical assets, such as landmarks, historic city cores, urbanscapes, land
with assets embodying ways of living or producing, isolated sites, uncommon immovable
and movable properties, and cultural landscapes. Heritage can also include non
man-made physical assets, such as fauna, fl ora, geology, landscape, landforms, parks,
reserves, any natural resources with non-ordinary features (from a rock to a beach), and
natural landscapes. Th irdly, heritage can also include non-physical assets, also defi ned
as intangible heritage, such as traditions, customs, habits, production methods, and any
other expressions of creativity that distinguishes a community group from another.
2. For a complete bibliography, see the end of each chapter, as referenced in the overview.
Th e concept of integrated conservation has been systematized by the ICOMOS International
Scientifi c Committee on the Economics of Conservation, led by Luigi Fusco
Girard, based on the pioneering work that Nathaniel Lichfi eld carried out in Campania
in the 1980’s, and it is closely linked with the eff orts undertaken by UNESCO with the
Historic Urban Landscape Recommendation and by the Council of Europe under the
Heritage and Beyond initiative.
3. Use value: Th e use value is the easiest to be assessed. It can include, inter alia, rents,
ticket revenues, and any other cash fl ow that can be captured in market transactions.
4. Non-use value: Heritage yields public good benefi ts that can be classifi ed in the
same ways as environmental non-market benefi ts. Th ree types of non-rival and nonexcludable
public good benefi ts are presumed to exist for heritage, relating to its existence
value (people value the existence of heritage even though they may not enjoy its
services directly themselves), option value (people wish to conserve the option that
they or others might enjoy the asset services at some future time), and bequest value
(people may wish to bequeath the asset to future generations). Non-use value is not
observable in market transactions, since no market exists on which the rights to them
can be exchanged.
5. Cultural value: Th e third category of value, the cultural value, is the least apparent to be
assessed, and it can be identifi ed through both the revealed preferences and the stated
preferences of individuals. Cultural value can includes aesthetic, symbolic, spiritual,
social, historic, authenticity, and scientifi c value.
6. A recent portfolio review targeting cultural heritage, natural heritage, and sustainable
tourism has shown that the World Bank Group has a growing portfolio in these
three areas. Since the 1970’s, the Bank has fi nanced through its International Development
Association (IDA) and International Bank for Reconstruction and Development
(IBRD) about 320 projects (components of larger investments, stand-alone projects)
and technical assistance activities for a commitment of US$7 billion. Moreover, the
International Finance Corporation (IFC) has fi nanced since the 1950’s approximately
280 related projects for a commitment of US$2.5 billion. Th e total for the World Bank
Group is US$9.5 billion in some 600 projects. Currently, IDA and IBRD have about
110 operations under implementation covering these three areas, for a commitment of
US$3.5 billion; IFC has about 60 operations, for a commitment of US$600 million.