Debt-for-Nature Swap in Ecuador
Case Study C0213
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| Date | 1993 |
| Agency | Government of Ecuador |
| Donor/support agency | Nature Foundation WWF The Nature Conservancy Charles Darwin Station Museum of Natural Science Missouri Botanical Gardens |
| Project type | Implemented by agency |
| Context(s) | Protected area Productive landscape |
| Geographic coverage | Ecuador |
| Biodiversity focus | Ecosystem/landscape |
| Development focus | Local communities |
| Conservation goals | Support the conservation of protected areas in Ecuador |
| Poverty reduction goals | Improve the living conditions of indigenous communities living in and around protected areas |
Summary
The debt-for-nature swap project in Ecuador started in 1987 when the Government's Monetary Board authorised the Nature Foundation (the largest conservation organisation in the country) to swap up to $10 million of foreign debt for local currency monetary stabilization bonds. The swap was completed in August 1989, with a 65% contribution from WWF and a 35% contribution from The Nature Conservancy. According to the project, the interest from the bonds is invested in national park management plans in the Amazon, Andean and coastal regions. The funds also pay for the management of the Galapagos marine area and for the purchase of small nature reserves on the coast. This swap benefits both Ecuadorian biodiversity and the indigenous communities who can mantain their traditional lifestyles as they look after the protected areas. The swap plans also envisage the training of park staff, scientific research and environmental education programmes. The Nature Foundation channels funds to executive institutions such as the Charles Darwin Station, the Museum of Natural Science and local NGOs.
Conservation impact
This project had a significant environmental impact as it helped financing a series of crucial projects that otherwise would have had to wait for years for funding because of government budgetary problems.
Poverty reduction impact
Ecuador foreign debt was reduce by $10 million, equivalent to 2% of its total debt.
Strategy for Conservation/Poverty Linkages
Payments for conservation services
Reference 1
http://www.fao.org/DOCREP/006/T0670E/T0670E00.HTM
Related records above this one:
- The Nature Conservancy (TNC) (Organisation O0078)
- WWF International (Organisation O0115)
Similar record to this one:
- Debt-for-Nature Swap in Bolivia (Case study C0211)
- Debt-for-Nature Swap in Madagascar (Case study C0214)
- Debt-for-Nature Swap in the Philippines (Case study C0215)
- Debt-for-Nature Swap in the Dominican Republic (Case study C0216)