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REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS<br />

be monitored consistently. Participatory resource assessments<br />

and valuation can help ensure that PES schemes<br />

take account of traditional knowledge and practices and<br />

the interests of all stakeholders. Capacity-building and,<br />

where needed, adequate institutional measures are important<br />

to ensure that weaker stakeholders are able to<br />

participate in PES negotiations and share their insights<br />

on ecosystem conservation. In Costa Rica and Mexico,<br />

‘collective contracting’ was introduced to facilitate the<br />

participation of poorer small farmers after it was realised<br />

that they would otherwise be excluded.<br />

PES schemes are not generally designed to reduce poverty<br />

but they can offer new opportunities for the rural<br />

poor to earn additional income (see Box 5.8). Many rural<br />

people earn their living from activities such as forestry<br />

and farming in which income fluctuates by season and<br />

year. PES based on ecosystem restoration or improved<br />

land management could provide a stable source of additional<br />

income and employment in rural areas.<br />

OVERARCHING CONDITIONS FOR<br />

SUCCESS<br />

Effective PES requires – and can help to strengthen –<br />

certain ‘enabling conditions’ such as:<br />

• reliable scientific information (e.g. sources of ecosystem<br />

services, their spatial distribution and beneficiaries);<br />

• economic data (start-up and implementation costs,<br />

including opportunity costs of managing resources<br />

for ecosystem services, non-market values and<br />

incentive effects of alternative PES arrangements);<br />

• identification and participation of key stakeholders.<br />

Successful PES schemes typically demonstrate transparency,<br />

reliability (of payments etc.), appropriate cultural<br />

conditions (e.g. acceptance of differential<br />

payments for environmental stewardship, trust) and<br />

strong commitment by all parties. Effective monitoring<br />

Figure 5.7: Institutional actors involved in PES deals<br />

Source: adapted from Bracer et al. 2007<br />

<strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 20

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