Economic Instruments to Reconcile Conservation and Livelihoods: Analysing the Potential for Bamboo in Karnataka

Abstract

The over-exploitation of forest produce, the undermining of traditional institutions and the consequent institutional lacunae, as described in the previous chapters and the poverty of forest-dependent communities, raise challenges for policies towards reducing rural poverty. In Karnataka, nationalised NTFPs like bamboo generate considerable revenue to the state. Channelising part of this revenue for inclusive conservation efforts, though relatively straightforward, has been limited to a few high-value end products. This chapter examines fiscal measures on bamboo products, as an example of the potential of such mechanisms to supplement regulatory measures in augmenting the dwindling livelihood base of forest-dependent communities. A biodiversity and livelihood cess on bamboo products in the state of Karnataka is examined for equity and distributional impacts. We find that such a cess need not be anti-poor, especially so if the revenue is earmarked for livelihood enhancement of NTFP gatherers through decentralised and inclusive conservation measures.