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The Lower Mekong River Region

 

First regional workshop

6/7 May 2002

Protected areas as production centres in the economy

Dr. David James, Senior economist, Ecoservices

 

Lower Mekong Countries: Key Economic Indicators

Indicator Thailand Vietnam Lao PDR Cambodia
Population (million) 61 77 5 11
Area (‘000 km2) 513 332 237 181
Density (people/km2) 120 235 22 65
GNP (US$ billion) 131.9 26.5 1.6 2.9
GNP/capita US$/yr 2,160 350 320 260

Source: The World Bank – World Development Indicators

 

Lower Mekong Countries: Sectoral Production – per cent of GDP
Indicator Thailand Vietnam Lao PDR Cambodia
Agriculture
11
26
53
51
Industry*
41
33
22
15
Manufacturing
32
17
6
Services
48
42
25
35

Source: The World Bank – World Development Indicators - 1998
* Mining, manufacturing, construction, electricity, water, gas

 

Lower Mekong Countries: Protected areas and forests
Indicator Thailand Vietnam Lao PDR Cambodia
% total area 2001
17.1
6.0
12.5
18.3
forest area 1995 ('000 km2)
116
91
-
98
% total area 1995
22.8
28.0
-
55.7

Deforestation 1995
km2/year
3,294
1,352
-
1,638
Deforestation *
%change/year
26
1.4
-
1.6

* annual average 1990-1995

 

Economic values from protected areas

Direct Values
Outputs that can be comsumed directly, such as timber, medicines, food, recreation, etc.

Indirect Values
Ecological services, such as flood control, storm protection, carbon sequestration, climatic control etc.

Option Values
The premium placed on protected areas for future possible direct and indirect uses, some of which may not be known now.

Existence Values
The intrinsic value of protected area resources and ecosystems, irrespective of use, such as cultural, aesthetic, bequest significance, etc.


TOTAL ECONOMIC BENEFIT OF PROTECTED AREAS

TOTAL ECONOMIC COST OF PROTECTED AREAS

Management costs
Costs of equipment, capital, wages, buildings, running costs, policing, etc.

Costs to other activities
Human disease and injury, livestock losses, crop destruction, competition for resources, etc.

Opportunity Costs
Alternative land and resource uses foregone, loss of profits and alternative investments, etc.

 

Direct uses of goods and services from protected areas
  • Agriculture
  • Fisheries
  • Forestry
  • Water Supply
  • Power Generation
  • Industry
  • Tourism

 

A typical protected area in the Lower Mekong River region

This diagram illustrates how key development sectors benefit from protected areas. Move over the listed sectors to view the economic benefits (requires Flash plug-in).

 

Implications of price distortions
  • "Free" Use of the Environment
    • overexploitation of natural resources
    • environmental degradation
    • impacts on economic development
  • Direct Pricing
    • entry fees to protected areas
    • sectoral use of protected area goods and services
  • External Economic Effects
    • environmental damage costs
    • environmental protection costs
  • Budget Allocations
    • administration of funds raised from protected areas
    • provision of public goods
    • budget allocations in national development planning
  • Green Accounting
    • valuation of protected areas as natural capital
    • resource depletion and degradation
    • measures of “Green GDP”
  • International Pricing Issues
    • global ecological services of protected areas (carbon sequestration, biogeochemical cycles)
    • biodiversity
    • existence and option values

 

Spatial planning and protected areas

IUCN Categories of Protected Areas

(For more on these categories and trends in protected area planning see the presentation by Kishore Rao at the First Vietnam National Round Table.)

  1. Scientific reserve / strict nature reserve
  2. National park
  3. Natural monument/natural landmark
  4. Managed nature reserve/wildlife sanctuary
  5. Protected landscape
  6. Resource reserve
  7. Natural biotic area / anthropological reserve
  8. Multiple-use management area / managed resource area
  9. Biosphere reserves
  10. World Heritage sites

 

Land-use Zoning and Management
  • zoning of permitted uses of forested lands
  • allocation of use rights in agricultural areas
  • spatial and temporal use rights in marine areas
  • location of settlements
  • location of infrastructure

 

Regional protected areas and economic issues

Water Resources Management

  • catchment protection
  • riparian vegetation
  • aquatic systems and wetlands
  • environmental flows
  • water quality
  • salinity intrusion

Fisheries and Marine Resources

  • freshwater fisheries
  • freshwater aquaculture
  • marine protected areas
  • coastal aquaculture
  • shrimp production
  • mangroves

Terrestrial Systems

  • contiguity requirements for protected areas
  • multi-country management

Trade in protected area products

  • wildlife trade
  • timber harvesting and trade
  • non-timber forest products (NTFPs)



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Review of protected areas and their role in socio-economic development
in the four countries of the lower Mekong River region

page updated: 29/05/02