CHAPTER 2 • The Challenge of Demonstrating the Socio-economic Benefits of ICM
43
the unique characteristics of individual coastal areas. Traditional boundaries between
disciplines such as ecology and economics are breaking down and there have been
advances in developing methods for interdisciplinary analysis of these two sets of factors. For example, the development of environmental economics or ecological economics. This can be represented by the arrows linking environmental factors and economics factors in Fig. 2.2. However, a great deal of work remains to be done in developing
conceptual frameworks and practical methods for integrating socio-cultural, economic
and environmental factors. This is of great importance in developing integrated approaches to the organisation of human activities in coastal areas.
There are three basic areas in which greater effort is required in meeting the goal
of protecting the health and productivity of coastal ecosystems so that they can conBox 2.1. Examples of the social and economic dis-benefits or costs associated with inappropriate development and use of coastal areas, ecosystems and natural resources
Associated with the concentration of population in many coastal areas there have been early
innovations in land and water uses that today form the foundation for the relocation of people from
overcrowded areas inland, and for major thrusts of investment common throughout many nations.
One prime example is the development of brackish water fishponds many hundreds of years
ago in Southeast Asia. This technology permitted the polyculture of wild species of fin fish and
crustaceans and improved food security and opportunities for diversifying rural economies.
The culture of penaeid shrimp for export now forms a major thrust of economic investment
throughout Asia and many areas in Latin America and more recently in Africa. The socio-economic impact of coastal aquaculture developments which require major alteration of coastal
ecosystems can be far reaching. Apart from the direct loss of mangrove and other valuable coastal
systems, there have been a number of corresponding impacts such as land subsidence, acidification of soils and estuarine waters and salinisation of groundwater and agricultural lands and
the subsequent loss of economic and environmental goods and services generated by natural
resources systems (1991). This has led to: the loss of agricultural productivity and farm incomes,
reduced water supplies, loss of income from fishing and forestry and increasing hazards of
coastal flooding (Huallg 1990; Chua and Scura 1993). As is the case of agricultural conversion
of coastal systems, great attention must be paid in planning and managing aquaculture to soils,
tidal ranges, fresh water supplies, and natural hazards such as flooding if the investment is to
generate sustainable and economically rational results. Where these factors are not built into
management plans, investment capital is lost, natural resources degraded and coastal communities destabilized.
Unfortunately, extensive areas converted for pond development now lie idle, many sites have
been abandoned and many people have lost their capital. Others have been adversely affected
by the-degradation of the mangrove and have lost the economic basis for their survival in traditional occupations such as fishing.
It is not possible to establish an accurate account of the total area of coastal wetlands and
former agriculture sites which have been converted to non-sustainable aquaculture. The estimates that do exist suggest that very substantial areas are involved. For example, in Thailand it
has been estimated that approximately 14% of the total area of mangrove forest has been destroyed as a direct result of shrimp farming (Phillips, pers. comm. 1996). The Bangkok Post for
20th February 1995 reports that some 24% of all shrimp ponds have been abandoned and that
for each 16000 ha of abandoned ponds there is economic loss on investment in shrimp farming equivalent to US $12593 ha-'a-' (Stevenson 1996). This estimate does not include the economic costs associated with increased soil and groundwater salinisation and consequent impacts on adjacent agricultural areas, or costs associated with loss of mangrove dependent fisheries, loss of control over coastal storm surges or other goods and services normally supplied
by functioning mangrove ecosystems. The loss of value to capture fisheries alone is estimated
to be equivalent to US $277 235 km-> of mangrove (Kapetsky 1985). At the same time there are
major costs associated with bringing these degraded lands into some form of productive use.
43
the unique characteristics of individual coastal areas. Traditional boundaries between
disciplines such as ecology and economics are breaking down and there have been
advances in developing methods for interdisciplinary analysis of these two sets of factors. For example, the development of environmental economics or ecological economics. This can be represented by the arrows linking environmental factors and economics factors in Fig. 2.2. However, a great deal of work remains to be done in developing
conceptual frameworks and practical methods for integrating socio-cultural, economic
and environmental factors. This is of great importance in developing integrated approaches to the organisation of human activities in coastal areas.
There are three basic areas in which greater effort is required in meeting the goal
of protecting the health and productivity of coastal ecosystems so that they can conBox 2.1. Examples of the social and economic dis-benefits or costs associated with inappropriate development and use of coastal areas, ecosystems and natural resources
Associated with the concentration of population in many coastal areas there have been early
innovations in land and water uses that today form the foundation for the relocation of people from
overcrowded areas inland, and for major thrusts of investment common throughout many nations.
One prime example is the development of brackish water fishponds many hundreds of years
ago in Southeast Asia. This technology permitted the polyculture of wild species of fin fish and
crustaceans and improved food security and opportunities for diversifying rural economies.
The culture of penaeid shrimp for export now forms a major thrust of economic investment
throughout Asia and many areas in Latin America and more recently in Africa. The socio-economic impact of coastal aquaculture developments which require major alteration of coastal
ecosystems can be far reaching. Apart from the direct loss of mangrove and other valuable coastal
systems, there have been a number of corresponding impacts such as land subsidence, acidification of soils and estuarine waters and salinisation of groundwater and agricultural lands and
the subsequent loss of economic and environmental goods and services generated by natural
resources systems (1991). This has led to: the loss of agricultural productivity and farm incomes,
reduced water supplies, loss of income from fishing and forestry and increasing hazards of
coastal flooding (Huallg 1990; Chua and Scura 1993). As is the case of agricultural conversion
of coastal systems, great attention must be paid in planning and managing aquaculture to soils,
tidal ranges, fresh water supplies, and natural hazards such as flooding if the investment is to
generate sustainable and economically rational results. Where these factors are not built into
management plans, investment capital is lost, natural resources degraded and coastal communities destabilized.
Unfortunately, extensive areas converted for pond development now lie idle, many sites have
been abandoned and many people have lost their capital. Others have been adversely affected
by the-degradation of the mangrove and have lost the economic basis for their survival in traditional occupations such as fishing.
It is not possible to establish an accurate account of the total area of coastal wetlands and
former agriculture sites which have been converted to non-sustainable aquaculture. The estimates that do exist suggest that very substantial areas are involved. For example, in Thailand it
has been estimated that approximately 14% of the total area of mangrove forest has been destroyed as a direct result of shrimp farming (Phillips, pers. comm. 1996). The Bangkok Post for
20th February 1995 reports that some 24% of all shrimp ponds have been abandoned and that
for each 16000 ha of abandoned ponds there is economic loss on investment in shrimp farming equivalent to US $12593 ha-'a-' (Stevenson 1996). This estimate does not include the economic costs associated with increased soil and groundwater salinisation and consequent impacts on adjacent agricultural areas, or costs associated with loss of mangrove dependent fisheries, loss of control over coastal storm surges or other goods and services normally supplied
by functioning mangrove ecosystems. The loss of value to capture fisheries alone is estimated
to be equivalent to US $277 235 km-> of mangrove (Kapetsky 1985). At the same time there are
major costs associated with bringing these degraded lands into some form of productive use.