Introduction: Natural Capital, Poverty and Development

Can development occur without running down natural resources in an unsustainable way? The concept of natural capital offers a way for those with divergent views (ecologists and economists for example) to discuss this difficult question. Four aspects are examined in detail. First, the role of institutions in facilitating sustainable development is discussed, with examples from forestry. Then examples from (eco)tourism illustrate the potential – and limits – of applicability of the concept. Measurement issues for natural capital are then considered in detail. Finally, the concept is applied to agricultural strategy in fragile lands, where the tradeoff between the environment and development is likely to be most severe. Some implications for future research and policy are developed.