Chapter 3
Strategic Planning for Sustainable Development in
Coastal Zone Regions: Using Natural Resource Accounts
G.-M. Lange
3.1
The Need for a Comprehensive Framework to Represent
Socio-economic Systems
SuppOl:ting nearly two-thirds of the world's human population and much of its biological productivity, sustainable management of coastal zones represents the most
complex challenge we face. Integrated coastal zone management (ICZM) is an actionoriented approach to this challenge which combines scientific analysis and planning,
stakeholder participation, and institutional reform under the umbrella of a single activity (Post and Lundin 1996). ICZM takes a multidisciplinary, systems approach in
which the essential, distinguishing feature is the understanding and representation of
the interdependencies among ecosystem functions, socio-economic activities, and institutions. In this way, ICZM differs from other methods which are based on incremental, sector-by-sector approaches (Hatziolos et al. 1996; OECD 1993; Pernetta et al. 1993).
Since sustainability is both a socio-economic and an ecological problem, a unified analytical framework is needed that fully integrates models of ecological systems and models
of socio-economic systems. Much progress has been made in ICZM to develop a comprehensive analytical framework to represent ecosystems. This strength of ICZM may reflect,
in part, the origins of ICZM with natural scientists and physical planners such as marine
biologists, transportation engineers, and land use planners. For the economic component
of the analysis, important work has been done in the area of designing appropriate user
fees, pollution charges, and policy changes such as the removal of subsidies for agricultural chemicals, and changes in land use zoning (e.g., Linden and Lundin 1996; Panayotou et al. 1995). However, much less progress has been made in applying the holistic
modelling approach, which is the hallmark of ICZM, to socio-economic systems.
Economic activities and population growth are the major driving forces for change
in coastal zones. Because of sectoral interdependencies, cross-sectoral impacts of economic activities and the far-reaching influence of upstream activities on coastal zones,
it is widely recognized that ICZM must be integrated with National Development Plans,
but there is little discussion in the ICZM literature of how to build a framework for
systems analysis of socio-economic activities and the ecosystem-economy linkages. In
this paper, I will discuss a new economic tool which is of particular relevance to ICZM
because of its ability to bridge ecosystem models and economic system models: Natural resource accounts (NRA), also known as environmental accounts. This paper begins with a brief description of NRA, then provides an example of the use of NRA for
strategic planning in Indonesia. While the application of NRA to Indonesia is not exclusively for coastal zones, the analytical method reported here is appropriate for ICZM
and may be used for such work in the future. The paper will also describe some of the
institutional elements required for successful implementation of NRA.
Strategic Planning for Sustainable Development in
Coastal Zone Regions: Using Natural Resource Accounts
G.-M. Lange
3.1
The Need for a Comprehensive Framework to Represent
Socio-economic Systems
SuppOl:ting nearly two-thirds of the world's human population and much of its biological productivity, sustainable management of coastal zones represents the most
complex challenge we face. Integrated coastal zone management (ICZM) is an actionoriented approach to this challenge which combines scientific analysis and planning,
stakeholder participation, and institutional reform under the umbrella of a single activity (Post and Lundin 1996). ICZM takes a multidisciplinary, systems approach in
which the essential, distinguishing feature is the understanding and representation of
the interdependencies among ecosystem functions, socio-economic activities, and institutions. In this way, ICZM differs from other methods which are based on incremental, sector-by-sector approaches (Hatziolos et al. 1996; OECD 1993; Pernetta et al. 1993).
Since sustainability is both a socio-economic and an ecological problem, a unified analytical framework is needed that fully integrates models of ecological systems and models
of socio-economic systems. Much progress has been made in ICZM to develop a comprehensive analytical framework to represent ecosystems. This strength of ICZM may reflect,
in part, the origins of ICZM with natural scientists and physical planners such as marine
biologists, transportation engineers, and land use planners. For the economic component
of the analysis, important work has been done in the area of designing appropriate user
fees, pollution charges, and policy changes such as the removal of subsidies for agricultural chemicals, and changes in land use zoning (e.g., Linden and Lundin 1996; Panayotou et al. 1995). However, much less progress has been made in applying the holistic
modelling approach, which is the hallmark of ICZM, to socio-economic systems.
Economic activities and population growth are the major driving forces for change
in coastal zones. Because of sectoral interdependencies, cross-sectoral impacts of economic activities and the far-reaching influence of upstream activities on coastal zones,
it is widely recognized that ICZM must be integrated with National Development Plans,
but there is little discussion in the ICZM literature of how to build a framework for
systems analysis of socio-economic activities and the ecosystem-economy linkages. In
this paper, I will discuss a new economic tool which is of particular relevance to ICZM
because of its ability to bridge ecosystem models and economic system models: Natural resource accounts (NRA), also known as environmental accounts. This paper begins with a brief description of NRA, then provides an example of the use of NRA for
strategic planning in Indonesia. While the application of NRA to Indonesia is not exclusively for coastal zones, the analytical method reported here is appropriate for ICZM
and may be used for such work in the future. The paper will also describe some of the
institutional elements required for successful implementation of NRA.