Madera y Bosques

ISSN: 1405-0471
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Instituto de Ecología, A.C.
México

Acharya, Gayatri
Life at the margins: The social, economic and ecological importance of mangroves
Madera y Bosques, vol. 8, núm. Es1, 2002, pp. 53-60
Instituto de Ecología, A.C.
Xalapa, México

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Madera y Bosques Número especial, 2002:53-60 53

ARTÍCULO DE FORUM

Life at the margins: The social, economic and

ecological importance of mangroves
Gayatri Acharya1

ABSTRACT

Coastal communities are dependent on the resources available in mangrove

ecosystems. Despite their usefulness because of the vital ecological services they provide,
mangroves are under heavy stress. The loss of these ecosystems would mean local, national
and global welfare losses. Quantifying those losses accurately and using them to make more
informed decisions about land use and land conversion, is a challenging task. Economic
values associated with healthy mangrove ecosystems can be generated through economic
analyses that attempt to measure the use and non-use values of these ecosystems. The
values associated with mangroves are positive and have been used to influence policy. An
optimal mangrove management strategy should recognize that the products and ecosystem
services provided by mangroves can be very significant to human welfare. The creation of
markets for forest environmental services allows the values of multiple-use ecosystems such
as mangroves to be recognized and utilized in decision making. Taking an ecosystem
approach to the management of these resources can help to understand the complexity of
ecological and socio-economic processes within mangrove ecosystems. In developing
countries, such analyses are essential for promoting equity and poverty alleviation. The value
of mangrove ecosystems can best be realized when decision makers make the effort to
accurately weigh the costs and benefits of conservation versus conversion. Projects and
programs that are judged to be commercially viable must also be socially profitable.

KEY WORDS:
Mangrove ecosystems, ecological services, economic analyses, management strategy,
conservation

RESUMEN
Las comunidades costeras dependen de los recursos disponibles en los ecosistemas de
los manglares. A pesar de su utilidad por los servicios ecológicos que prestan, los manglares
están sujetos a presiones muy altas. La pérdida de estos eco
de bienestar a nivel local, nacional y global. Cuantificarlas exactamente y usar los datos para
tomar decisiones mejor fundamentadas acerca del uso del suelo y del cambio del uso del
mismo es todo un reto. Los valores económicos asociados con los ecosistemas de manglar
sanos pueden generarse a través de análisis económicos que intenten los valores de uso y no
uso de estos ecosistemas. Estos valores son positivos y han sido utilizados para influenciar
políticas. Una estrategia óptima de manejo de manglares debe reconocer que los productos y
los servicios proporcionados por los manglares pueden ser muy significativos para el bienestar
de la humanidad. La creación de mercados para los servicios ambientales forestales permitirá
que el valor de los ecosistemas multi-usos como los manglares se reconozca y utilice en la
toma de decisiones. El enfoque de ecosistemas para el manejo de estos recursos puede ayudar a
entender la complejidad de los procesos ecológicos y socio-económicos dentro del ecosistema
manglar. En los países en desarrollo, estos análisis son esenciales para promover la equidad y
aliviar la pobreza. El valor de los ecosistemas de manglar puede ser percibido de mejor manera
cuando los responsables de tomar decisiones hagan esfuerzo para sopesar exactamente los
costos y los beneficios de la conservación contra la conversión. Los proyectos y los programas
que son considerados comercialmente viables deben también ser benéficos socialmente.

PALABRAS CLAVE:
Ecosistemas de manglares, servicios ecológicos, análisis económicos, estrategias de manejo,
54 The social, economic and ecological importance of mangroves. Acharya

INTRODUCTION USE AND VALUE OF MANGROVES

Mangroves line approximately eight Assigning monetary values to

percent of the world’s coastline and are environmental resources, particularly in
distributed along approximately one- order to capture non-use values, is often
quarter of the world’s tropical coastlines, difficult, and some would argue, unethical.
covering a surface area of 181 000 km2 Nonetheless, value assignments for direct
(Spalding et al., 1997). These ecosystems and indirect uses of ecosystem goods and
can withstand frequent inundation by sea services can be very useful in order to a)
water and flourish in saline conditions. establish the physical/ecological linkages
While the value of the goods and services that make such uses possible and b)
provided by these ecosystems varies, poor partially measure the derived economic
coastal communities are particularly benefits from these uses. Knowing these
dependent on the resources uniquely values, and by incorporating the benefits
available in the harsh yet fertile environ- and costs of environmental effects into an
ment of mangrove ecosystems. Yet, analysis of development alternatives, we
despite their usefulness and unique niche are better positioned to decide which
at the margin of the land and the sea, alternative would provide the largest net
mangroves are under heavy stress. Over benefit to society. Such analysis is
the past 50 years, an estimated 83.7 % of becoming more wide-spread and many
mangroves in Thailand and 67 % in examples relevant for wetland goods and
Panama have been lost (Burke et al., services are now available for reference
2002). (Hamilton et al., 1989; Ruitenbeek, 1992;
Barbier and Strand, 2000; Cesar et al.,
While there is no doubt that there is 1997; to name a few relevant to coastal
today greater awareness of the impact of areas).
extensive shrimp farms and illegal logging
in these forests, there is little evidence that Mangroves are often considered low
the current use patterns are likely to value ecosystems (by those who are not
undergo any significant shift towards more dependent on them) because there are
sustainable utilization. Because of incom- very few directly marketed goods that
plete markets, values associated with come from these ecosystems. As a result,
healthy mangrove ecosystems (such as conversion to other land uses has been an
nursery function, water quality, coastal attractive option for many governments,
zone protection, biodiversity) are unlikely communities and individuals. Such market
to be captured by land or product prices. failures, where the full economic value of
This is particularly true for developing the resource is not captured by market
countries, where the opportunity costs of prices, often result in policies that
conservation can appear to be much perpetuate inefficient land uses and
higher than the potential gains from conversion. Adverse impacts of such
conversion to other productive land uses. market and policy failures include
The value of intact mangrove ecosystems increasingly inefficient and unsustainable
in supporting local economic production land use conversion to aquaculture and
could, however, be substantial and could agriculture; changes in drainage patterns
contribute significantly towards achieving that reduce freshwater flow; pollution
better development outcomes for these especially from ports and urban centers;
communities while maintaining global clear cutting and unsustainable forestry
values. practices. Illegal hunting for endangered
Madera y Bosques Número especial, 2002:53-60 55

species such as sea turtles, reptiles and wetlands are therefore dependent on the
tigers is increasing as forests are cleared ecological properties of these coastal
and made more accessible for poachers. ecosystems and the productive and
consumptive use behavior of the com-
Even though there are few directly munities that use them.
marketed products from mangroves,
coastal communities continue to depend It is important to note that economic
on mangroves for a range of goods such values are limited by a) their inability to
as fuelwood, shellfish, palms and on capture intrinsic values associated with
ecosystem services such as maintenance wetlands; and b) the level of under-
of the productivity of important estuarine standing both economists and natural
dependent fisheries, water quality scientists have with regard to the level of
regulation, flood reduction and shoreline use of goods and services and the
stability. Communities further inland variation in their availability with fluxes in
similarly depend on many of these same the natural system. Furthermore, while
products, transported to markets as economic values measure preferences
finished or primary products. Globally too, and welfare impacts associated with
these products and services have value. changes in the natural system or the
Mangroves can provide vital nurseries for availability of a service or product, they do
fisheries that support global communities not, in themselves, offer any insights into
and often shelter biodiversity of global inter-generational or intra-generational
importance by virtue of being, in general, distributional effects of conservation or
relatively undisturbed ecosystems. The development investments.
loss of these ecosystems would therefore
suggest potential local, national and global Nonetheless, there is significant
welfare losses. Yet, quantifying those evidence today that suggests that eco-
losses in as accurate a manner as nomic values associated with mangroves
possible, and actually using them to make that are both positive and have been used
more informed decisions about land use to influence policy. Hodgson and Dixon
and land conversion, is a task of (1988), found that, for the Philippines,
Herculean proportions. tourism benefits together with fishery
production benefits outweighed the short
Economic values associated with term benefits which might accrue from
healthy mangrove ecosystems can increased logging in Palawan. With
however be generated through economic continued logging, tourism was estimated
analysis that attempts to measure the use to decline by 10% per year, largely as a
and non-use values of these ecosystems. result of increased sedimentation in the
A review of mangrove fisheries suggests coastal waters. Logging induced sedimen-
approximate ranges in production and tation, damaging coral reefs, resulted in
value (on a per hectare per year basis) costs 2.8 times higher than the benefits
respectively, of 13 kg-756 kg and US$91- associated with logging. Lal (1990) calcu-
5 292 for penaeid shrimp, 13kg-64 kg and lated net present values associated with
$39-$352 for mudcrab, 257 kg-900 kg and forestry and fisheries resources from three
$475-$713 for fish, and 500 kg-979 kg and mangrove areas in Fiji, suggesting that net
$140-$274 for mollusks (Rönnback, 1999). present values for forestry ranged from
Clearly, however, the level of harvest and $164-$217 per hectare while net benefits
the economic values associated with goods from fisheries approximated $5 468 per
and services will vary across mangrove hectare or $300 per hectare per year.
ecosystems. The values attributed to these

2 Rönnbäck (1999) suggests that mangrove systems alone account for US$800-16 000 ha-1 in seafood
production.
56 The social, economic and ecological importance of mangroves. Acharya

Other services such as nutrient 20 % of all land area but much of this area
filtering have been calculated as $5 820 is uninhabited, and in Northern countries
per hectare. Based on the benefits often inaccessible land. Coastal areas in
foregone from forestry and fisheries, Lal tropical and sub-tropical countries are
calculated the minimum net present value highly modified landscapes, supporting
of the Fijian mangroves as $3 000 per large, and often, poor populations. These
hectare under the existing conditions of areas are under enormous pressure not
supply and demand. Traditional non- only because of the large numbers of
commercial uses of mangroves is shown people who depend on the resources from
to have an estimated value of US$10 these areas, but more so because of
million per year; commercial fisheries indiscriminate conversion of these areas to
US$35 million per year; and selective other land uses.
commercial mangrove cutting schemes,
US$20 million per year. The conversion of multiple-use eco-
systems such as mangroves to single land
In an economic analysis of land use uses may signify a welfare loss through
options, Kumari (1995) estimated what the reduced access to, or availability of,
economic value of a peat swamp forest in valuable goods and services (Table 1).
central Malaysia would be under four However, whether or not such conversions
different management scenarios. The are merited can be assessed only with
values associated with this forest included sufficient information on the relative effi-
timber, endangered species, carbon ciency of converting or conserving the
sequestration, non-timber forest products, wetland ecosystem vis-à-vis alternative
fish and the maintenance of the hydro- land uses. Sustained investment in
logical balance necessary to maintain sustainable use of mangrove resources
irrigation water for an important rice- will depend on the clear evidence that
growing area. The management scenarios benefits and costs associated with this
considered included unsustainable timber ecosystem compare favorably with those
extraction and three scenarios of improved of other social and economic investments.
sustainable timber harvesting. Ecological When such evidence is lacking, it creates
damages imposed by logging and a disincentive for mangrove conservation
transporting logs were estimated and “total” and an incentive for conversion to an
economic values were calculated for the activity which can clearly demonstrate its
forest. When the lower bound damage potential benefits.
estimate was used, the management option
featuring an unsustainable rate of logging
had the highest total economic value. With Policies and remedies
higher damage estimates (and the inclusion
of high value functions such as carbon An optimal mangrove management
sequestration and endangered species strategy should recognize that the
protection) the more controlled logging products and ecosystem services provided
options had a higher total economic value. by mangroves can be very significant to
human welfare either because of their
current direct or indirect uses or their
WHY IS IT SO DIFFICULT TO potential uses. Improper management of
CONSERVE MANGROVES? these ecosystems could result in significant
economic losses for local populations but
In 1995, over 2.2 billion people, also potentially for wider populations that
amounting to 39 % of the world's depend on services such as nursery
population, lived within 100 km of a coast functions for offshore fisheries.
(WRI). The coastal area accounts for only
Madera y Bosques Número especial, 2002:53-60 57

Table 1. Examples of linkages between mangrove components

TYPE OF NATURE EXAMPLE

LINKAGE OF IMPACT
Biophysical Direct impact One mangrove use may exclude another use
linkages because they are incompatible uses which share
same land area, e.g., conversion to fishpond
takes away land under wood production
Indirect partial or One activity may partially affect the productivity
delayed impact of some other ecosystem component, e.g.,
conversion to fishpond increases erosion which,
over a number of years, increases siltation and
destroys coral reef habitat offshore
Indirect One activity may have immediate affect on
linear impact productivity of some other system component,
e.g., conversion to fishpond destroys nursery
ground and reduces offshore fishery production
in proportion to lost area of mangrove.
Indirect Activity in one component of mangrove
catastrophic impact irreversibly destroys a critical ecosystem compo-
nent e.g., conversion to fishpond of a critical
area of breeding ground causes collapse of
offshore fishery.
Socio- Activity substitution Availability of external income causes changed
economic outside mangrove local use patterns of mangroves, e.g., expanded
linkages ecosystem wage economy reduces traditional reliance on
mangrove harvesting.
Activity substitution Change in availability of one mangrove com-
inside mangrove ponent causes local substitution for other
ecosystem (economic mangrove component, e.g., loss of onshore
displacement) productivity for hunting and gathering due to
mangrove conversion forces increased reliance
on offshore fishing.
Ruitenbeek (1992)

However, powerful economic interests in southern Honduras, 31 000 hectares

often fuel the conversion of land from have been granted as concessions for
traditional uses to uses that provide large shrimp farming. Of these, 11 515 hectares
short-term economic returns. Shrimp have been developed with the remaining
farming for example, is a highly lucrative land under mangroves cover. In an ana-
activity in the short term. Such activities lysis of shrimp aquaculture in this area,
appear to fuel local economies to such an Dewalt et al. (1996) noted that expansion
extent that any attempts to make them into the mangroves is motivated in part by
more sustainable and less environmentally the observed large profits associated with
destructive often creates the perception of shrimp farms in southern Honduras. A
being anti-growth. In the Gulf of Fonseca factor that seems to elude those who are
58 The social, economic and ecological importance of mangroves. Acharya

developing shrimp farms in the mangroves Northwest Mexican Coast Mangroves are
of the Gulf of Fonseca is that mangrove not very well studied but water pollution
soils do not in fact support shrimp farms from agricultural runoff and the dumping of
and therefore clearing mangroves for organic and inorganic waste in Mexico's
shrimp farms is a short term venture at best rivers may have devastating impacts on
(Dewalt et al., 1996). Similar examples of biodiversity and ecosystem services of the
inefficient land conversion and associated mangroves (Ramírez et al., 1998; Ruíz,
mangrove losses can be seen in Ecuador 1999). Here too, shrimp farms are expan-
and Mexico (Agüeros, 1999). ding rapidly in that area and endangered
species are being threatened by these
An important fallout of such short factors.
sighted land use decisions is that ecolo-
gical services such as the maintenance of As noted earlier, there is little
fish and shrimp populations in the wild, incentive to protect the mangroves if there
can also be affected and as a result, is little information on what is being lost.
pressure on these and other resources However, Ruitenbeek (1992) shows that
may increase. In the Gulf of Fonseca, the even with relatively little information on the
impact on mangroves is not predominantly exact nature of ecological linkages, it is
from shrimp farms; these in fact account possible for a decision making to be
for one-third of the destruction of these informed by economic analysis that tries to
mangroves while other activities such as value the potential loss of benefits from
tanning, salt production and increased mangrove conversion. In a study of
demand for fuelwood have together Indonesian mangroves in the Bintuni Bay
resulted in two-thirds of the total decline in area, Ruitenbeek (1992) provides an
mangroves in this area. It has been argument for setting aside some of the
asserted by the Committee for the mangrove area in a conservation area,
Defense and Development of the Flora particularly when strong ecological linka-
and Fauna of the Gulf of Fonseca ges exist. If such strong ecological
(CODDEFFAGOLF) that the aquaculture interactions exist, the analysis showed that
industry has degraded the natural the optimal amount of clear cutting was
environment in the Gulf and that this is the less than 25% of the harvestable area.
main cause of mangrove and fishery The results indicate that the clear cut
decline in the area. Such assertions are option is optimal only if linear linkages
difficult to support without adequate between ecosystem components are
scientific data, much of which is lacking. ignored. However, the cutting ban option is
Nonetheless, it is clear that pressure on optimal if linear and immediate linkages
resources is bound to increase as poor between ecosystem components exist.
farmers attempt to maintain incomes by Under a scenario with linear but delayed
more intensive use of their natural linkages of 5 years, selective cutting of
environment. The fact that many of the 25% of the mangrove has a higher present
shrimp concessions occupy areas that value than the clear cutting option and
were once common property resources is higher than the ban option. The study
an important element in creating this notes that when decision makers act
pressure and imposing income constraints under conditions of uncertainty, economic
on the local populations. valuation and sensitivity analysis can help
determine the potential losses from a
Uncertainty is an important factor that wrong decision. The study suggests that
affects decision making. Not having the potential losses Indonesia would incur
adequate data and information on the from rapid conversion of mangrove areas
values and functions of an ecosystem will would be significantly higher than any
focus attention on the opportunity costs of benefits from such conversions, if the
not converting the land. For example, the ecological linkages were wrongly assumed
to be non-existent.
Madera y Bosques Número especial, 2002:53-60 59

Agenda 21 called on governments to and export opportunities from this sector,

adopt measures that help markets put enormous pressure on the resources
internalize environmental values and by causing indiscriminate conversion and
externalities. Many mangrove products are environmental damage. This does not
in fact marketed, although their market have to be so. Through regulation and
prices do not necessarily reflect the social enforcement, the environmental costs of
costs of production. The creation of shrimp farming can be controlled and
markets for previously non-traded forest minimized while management plans that
environmental services, such as forest generate sufficient revenues for local
carbon sequestration, biodiversity conser- communities and develop alternative
vation, watershed protection and other livelihoods for them would serve to
ecosystem services, provides one avenue conserve mangrove resources while
by which the values of multiple use addressing the critical needs of coastal
ecosystems such as mangroves can be communities (Benítez et al., 2000). In the
recognized and utilized in decision making. final analysis, the value of mangrove
Although markets are not a panacea, the ecosystems can best be realized when
process of establishing an economic value decision makers make the effort to
for these services is a powerful step in accurately weigh the costs and benefits of
influencing markets, public opinion and conservation versus conversion. Projects
decision makers. To do so, an understan- and programs that are judged to be
ding of what the mangroves specifically commercially viable must also pass the test
provide will be required, who is of being socially profitable otherwise we are
responsible for their upkeep and who is shortchanging ourselves in the long run.
willing to pay for the maintenance of the
services. As noted above, a careful analysis
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The World Bank is not responsible for the views expressed in this paper

1 World Bank. 1818 H Street. Washington DC, 20433. EUA. c.e.: gacharya@worldbank.org.

Manuscrito recibido el 25 de febrero de 2002.

Aceptado el 5 de abril de 2002.

Este documento se debe citar como:

Acharya, G. 2002. Life at the margins: The social, economic and ecological importance of mangroves.
Madera y Bosques Número especial:53-60.