Growing the Wealth of the Poor - World Resources Institute

W O R L D R E S O U R C E S 2 0 0 8fer or sell communal or state resources, for example, may not benecessary for establishing a viable enterprise. The crux ofownership—as we use the term—is that local people have securerights to use and control ecosystem resources, including the rightto manage the resource and exclude others. Without this power,local groups may find it impossible to protect their resourcesfrom exploitation by powerful outsiders (Meinzen-Dick 2008).Ownership of resources and the resource managementprocess can give rise to local demand for better ecosystemmanagement. Demand can be defined as the expression ofdesire for something, measured by the contribution that peopleare willing to make to receive it. In this sense, demand is a spurto action and translates to a willingness to work together for acommon goal. Indeed, successful CBNRM often grows directlyout of community consensus on the need to act and a commitmenton the part of a majority of stakeholders to adhere to anagreed action plan. The impetus for this “local demand” cancome from a variety of sources. It may come as a response toresource scarcity or ecosystem decline—the failure of a localfishery, for example. Or it may come in response to successfulpilot projects that demonstrate benefits from good resourcemanagement in situations similar to those found in a community.14WHAT IS AN ENTERPRISE?In World Resources 2008 we focus on building ecosystem-based enterprisesas a way to create viable rural livelihoods and reduce poverty. Whatdo we mean by enterprise and how does it relate to human well-being?We define an enterprise as any activity undertaken to create a product orservice of value. Ecosystem-based or nature-based enterprises derivetheir products or services from ecosystem services—from the primaryproductivity of nature and the functioning of natural systems. Fishing;agriculture; livestock rearing for meat, milk, or wool; timber extraction;collection of non-timber forest products such as rattan, xate palm, thatch,or edible plants and spices; the harvest of medicinal plants; and plantbasedhandicrafts such as wood carving—are all common nature-basedenterprises based on consumptive use. Tourism and recreation are typicalnonconsumptive enterprises based on nature.Enterprises support livelihoods. That is, they are the organized activity thatprovides the basis for any livelihood, along with the attendant relationships—with markets, social groups, or government—necessary for its success.It’s important to understand that while enterprise is commonly associatedwith commerce, this is not always so, particularly when speaking of theenterprises of the poor. Realizing the value from the product or servicecreated by an enterprise often occurs when it is marketed within the casheconomy, yielding revenue. But value from an enterprise can also beextracted through subsistence use of products or in the form of personalor social benefits such as empowerment, group cohesion, cultural identity,or religious experience. Many of the benefits of community-based naturalresource management come in these nonmonetary forms.Thus our definition of enterprise is a more encompassing one rather thanbeing restricted narrowly to commerce. Enterprise is not only a way toconnect to markets, and our emphasis on enterprise is not an attempt tomonetize all livelihood benefits. Just as poverty has dimensions beyond lackof income, so enterprises that are poor-friendly have benefits beyond income.Nonetheless, the commercial aspect of ecosystem-related enterprises forpoverty reduction is undeniably important. Developing the business skills,access rights, market connections, finance, and policy support to enablesuccessful business enterprises is an essential part of enabling lowincomefamilies to participate in national and global economies and isthus a principal focus of this report.In sum, enterprise, as we use it here, is both a vehicle for individual andsocial empowerment, and a means for wealth creation.How do Ecosystem-Based Enterprises and CBNRM Relate?Community-based natural resource management (CBNRM) is the foundationof many successful ecosystem-based enterprises. CBNRM plays twoimportant roles in facilitating these enterprises among the poor.First, CBNRM can improve the natural resource base by encouragingsustainable management and harvest practices. This may mean that thereare more fish for fishers to catch and sell, more fodder for pastoralists tofeed their livestock, or a higher water table and less erosion, allowingfarmers to grow crops more productively.Second, CBNRM builds social capital among community members andlinkages to networks beyond the community that help create successfulenterprises. For instance, communities managing forest concessions inGuatemala have used the social capital and linkages to NGOs and governmentrequired for this management to create community forest enterprisesthat export high-grade timber around the world. (See Chapter 3.)The relationship also goes the other way: the promise of improved enterpriseencourages greater participation in CBNRM by crystallizing thebenefits of working together. A community’s demand for joint managementof its natural resources is defined by incentives. The prospect of enterprisethat produces income or other tangible benefits acts as such an incentive.Although CBNRM is itself a collective activity, the enterprises associatedwith CBNRM are not necessarily collective enterprises—they may beindividually owned enterprises as well. For example, a community groupmay collaborate to jointly manage irrigation water, but the benefits thewater brings may be realized in an individual small farmer’s field—anindividual enterprise. However, the collective effort associated with CBNRMmay foster networks such as producer cooperatives or Farmer Field Schoolsthat allow individuals to share techniques and technologies, purchaseinputs in bulk, and sell their products together to gain market leverage.So while CBNRM is not a precondition for ecosystem-based enterprises, weargue that the poor’s reliance on communal natural resources often makesit a key element in the commercial success of these enterprises, whilemagnifying their social benefits.