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PERC-ThePropertyandEnvironmentResearchCenter

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PERCReports:Volume24,No.4,Winter2006

BeesandBarbedWireforWater

OntheBolivianFrontier

ByNigelAsquith

ButchCassidyandtheSundanceKidsholdupofaUnionPacifictraininWagner,Montana,wasthefinalstraw:Suchlawlessnesswasnolongeracceptablein"thenotsowildwildwest,"wherelocalruleswerecreatingcooperationratherthanconflict(seeAndersonandHill2004).AslawenforcementclosedinontheHole-in-the-Wallgang,ButchandSundancewereforcedtohightailittoBolivia,wherepropertyrightswereenforcedlessrigorously.Ahundredyearslater,Bolivianproperty

rightsstillareamorassofoverlapping,extralegalclaimsandcounterclaims,withwea centralauthority,andapredominanceoflocallydevelopedinstitutions.

TheLosNegrosValley,intheDepartmentofSantaCruz,isacaseinpoint.WhenButchandSundancevisitedSantaCruzin1907theymarveledattheaffordabilityofgoodlandwithplentyofwater.Sincethen,thingshavedeteriorated.DryseasonwaterflowsinLosNegroshavehalvedinthelasttwentyyears.Whilethisgrowingscarcityisacombinedresultoffactorssuchasreducedwatersupplycausedbyland-usechanges,morewaterusebyirrigatorsupstream,andinefficienciesinwaterdistribution,downstreamlandownersclearlypointthefingeratincreasesinuplanddeforestation.

TheLosNegrosValleycoversapproximately270square ilometers,with35 ilometersseparatingtheupstreamSantaRosa(population:481)fromdownstreamLosNegros(population:2,970).Irrigationcanalsprovidewaterto1,000hectares(10,000squaremetersor2.47acres)inLosNegros,providingthemar etsofSantaCruzandCochabambawithayear-roundsupplyofcarrots,tomatoes,lettuce,andothervegetables.BorderingtheupperreachesoftheLosNegroswatershedisthe637,000-hectareAmborNationalPar ,oneofthemostbiologicallydiverseareasintheworld712speciesofbirdshavebeendiscoveredsofar.

Thenationalpar

anditsbufferzoneareincreasinglythreatenedbyillegallandincursions.Encouragedbylocalpoliticalleaders,migrants

fromtheBolivianhighlandsfrequentlyenterthebufferzoneandthepar itselftoextracttimberandtoclearforestforagriculture.Thelocalcommunities,withtheirunclear,extralegalpropertyrightssystems,oftenhavelittlerecoursewhentheirlandsareinvaded.Asaresult,forestsarecut,wildlifedisappears,theLosNegrosRiverdriesupearliereveryyear,andagriculturalproductionandthelocaleconomysuffer.

*PAYMENTSFORENVIRONMENTALSERVICES*

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Tohelpresolvetheseproblems,NaturaBolivia,anenvironmentalgroupledbyMariaTeresaVargas,aPERCLoneMountainFellowandgraduateofPERCsenvironmentalentrepreneurshipcourse,isdevelopinglocalcapacityforapayments-for-environmental-services(PES)system.PEShasasimpleeconomiclogic;theusersofanenvironmentalservice,inthiscasewater,shouldcompensatetheprovidersoftheservice,inthiscasetheupwater,shouldcompensatetheprovidersoftheservice,inthiscasetheupstreamfarmers,fortheopportunitycostofprovidingtheservice.Easyintheory,butdifficultinpracticeinacountrywheresimplydeningwhooftheupstreamresidentsarelegallandownerspresentsaninsurmountablechallenge.

RaisedintheneighboringSanJuanValley,VargasdecidedthatLosNegroswasanappropriatepilotPESsitebecauseofanumberoffavorablepreconditions.Mostimportantly,localswereawareofforest-waterlin

s:Withcloudsalmostpermanentlypresentabovetheupstreamforests,downstreamfarmersunderstoodtheconnectionbetweenforestprotectionandthemaintenanceofwatersupplies.However,VargasandNaturaquic lyidentiedafundamentalconstrainttodevelopinganytypeofcontract-basedsystem:thelac ofcondence,bybothupstreamanddownstreamusers,thattheotherpartycouldfulllacontract.Natura,therefore,agreedtopilottherstthreeyearsofpaymentsbymobilizingbiodiversityfundsfromanexternaldonorinordertobuildmutualconfidencethataPESsystemcouldwor .

*HONEYFORWATER*

Throughparticipatorynegotiations,itwasdecidedthatdownstreamwateruserswouldprovidecompensationforprotectionofthenativevegetationinthewatershed.Thiscompensationwouldta etheformofonebeehiveandtraininginhoneyproductionforeverytenhectaresofwater-producingcloudforestthatupstreamlandownersprotectedacashequivalentofU.S.$3ayearperhectare,payableupfront.Othercompensationalternativesdiscussedincludedinfrastructuralimprovementstobenetupstreamcommunities,butparticipantsexplicitlyrejectedtheoptionofpaymentsincash.OnePES-enrolledfarmerexplainedinaninterview:IfIreceivecash,I nowIwillspendit

rightaway.Instead,Iwantthesepaymentstocreatesomethingthatlasts.

AllupperwatershedlandownerswereinvitedtovolutarilyenterthePESprogram,butbuildingtrustandcon.denceintheschemeamongserviceproviderswasaslowprocess.Sixtybeehiveswereprovidedto.vefarmersin2003,inreturnfortheconservationof600hectaresofcloudforests.In2004,another11farmersreceivedbeehivesfromthemunicipalgovernment,inreturnfortheprotectionof600morehectares.BySeptember2006,39farmerswereprotecting2,100hectares.Originalcontractswereforayear,butrespondingtodemand,somelonger-termcontracts(upto10years)haverecentlybeensigned.Paymentsaremadeannually,andhonoredcontractscanbere-enrolledintotheprogram.

*BREAKINGDOWNBARRIERS*

VargasandNaturahadtoovercomeanumberofdifficultiestodevelopamar etforwatershedservices.Lac ofacredibledownstreamassociationmadeittric ytoensurethatservicebuyerswouldcontributeequitably.Asmentionedpreviously,trustwaslac ingdownstreamfarmersdidnotbelievethatpaymentstoupstreamfarmerswouldleadtomoreconservationandwaterflows;upstreamusersworriedthattheinitiativewasdesignedtoappropriatetheirland.Theschemethusfacedtwofundamentalbarriers:unclearpropertyrightsandalac ofcredible

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institutionstoguaranteecontractcompli-anceandanefficientmar et.

Naturaschallengewasthereforetotrytoprovidesecurityofcontractsandmar ets,andclarifypropertyrights,inasituationwhereneithersecurity,clarity,ortheresourcesneededtoprovidethemexisted.Soundfamiliar?SuchwerethechallengeswhentheAmericanWestwaswon.AsintheWest,Vargasbelievesthattheanswerisnottowaitforcentralizedlegalprocesses,buttondcheapandefficientwaystobuildonanddevelopexisting,locallyacceptedcustomsandrights.ResolutionofthemajorconstraintsrequiredthatVargasandNaturatac lethefollowingquestions:

/Howcanlocalpropertyrightsmechanismsbestrengthenedwhennationalgovernmentisunabletohelp?/Usetechnologytoreinforcehand-writtenbillsofsale/purchase.Naturameasuresanddemarcatesforestconservationplotswithahand-heldGPSreceiver.Thedataislaterplottedonasatelliteimage-basedlandusemap.Fielddemarcationisbynaturalboundaries.Trails,signs,wirefencing,andparcelsareonlyallowedintotheschemewhenandthisiscriticaleverysingleoneoftheland-ownersneighborsagreethattheseindeedarethepropertyslimits.

/Howcanamar etforanenvironmentalserviceemergegiventhehighcostofdefiningexactlywhatisbeingboughtandsold?/Ma ea

best-guessestimate,ratherthanexhaustingresourcesandtimetodenetheprecisedetailsoftheservice.NaturaiscollectinghydrologicaldataoneightsmallstreamsinthewatershedandalongthemainchanneloftheLosNegrosRiver.Twice-wee lywaterdepthmeasurements,periodicstreamowvelocitycalibrations,anddailyrainfallmeasurementsarehelpingestimatehowmuchadditionalwaterwillbeprovidedbyprotectionofthecloudforest.Ofparticularinterestaredifferencesinwaterowinthedryseasonwhenlac ofwaterbecomesthelimitingfactorforagriculturalproductivity.Landownersthemselvesareta ingthemeasurementsinordertominimizedatacollectioncosts,toincreaselocalcredibilityinthedata,andtotrytoensuretheschemesself-sustainability.

/Howcanbindingcontractsbeestablishedwhentheruleoflawrarelypercolatesdownfromcentralgovernment?/Havethebuyersandsellersthemselvesco-designthecontracts.Inthecaseofaninfraction,Naturacouldnot,forpoliticalreasons,uselegalmeanstoforceanon-compliantlandownertoreturnthebeehivereceivedthepreviousyear.Sanctionsforbrea ingacontractmightinsteadaffectwhetheritisrenewed,andunderwhatconditions.Ratherthanimposeanexternallegalconstruct,Naturahelpedservicebuyersandsellerstoparticipativelydraftcontractsthatrespectedlocalbeliefs,customs,andculture,andprovidedlocallyacceptableandenforceablesanctionsfornon-compliance.

*BARBEDWIREREVISITED*

Althoughstillanexperimentinprogress,theLosNegrosPESschemeisgraduallybuildingtrustincontractsandmar

ets,andstrengtheningpropertyrightsbyreinforcinglocallydevelopedandacceptedinstitutions.Interestingly,forthe2006contractrenewal,manySantaRosafarmersrequestedcompensationnotinbee-hivesbutratherinwhathadbeenthebaneofButchCassidyandmanyotheroutlawslivesbarbedwire.Thefarmersexplainedthatinadditiontoallowingthemto eeptheircattleoutofenvironmentallysensitiveareas,enclosingtheirlandwithbarbedwirewouldhelpthemstrengthentheirexistinglandclaims.

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ButchandSundanceslac

ofrespectforBolivianpropertyrightsnallycaughtupwiththem:notthroughcentralizedlegalprocesses,butthroughalocallydevelopedenforcementmechanism.One-hundredyearslater,BolivianenviropreneurMariaTeresaVargasisalsodevelopingandstrengtheninglocalpropertyrightsthistimenotthroughaposse,butthroughinstitutionbuilding,aninnovativeconservationanddevelopmentscheme,andgoodold-fashionedbarbedwire.

REFERENCE

Anderson,Terry,L.,andPeterJ.Hill.2004.TheNotSoWild,WildWest:PropertyRightsontheFrontier.Stanford,CA:StanfordUniversityPress.

NIGELASQUITHisexecutivedirectoroftheEcoFundFoundationEcuadorandDirectorofScienceofFundacionNaturaBolivia.HeiscurrentlyaPERCLoneMountainFellowandgraduatedfromPERCsenviromentalentrepreneurshipcoursein2005.Asquithcanbecontactedatnigelasquith@ecofondoecuador.org.