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The Dartmouth
May 19, 2024 | Latest Issue
The Dartmouth

Capitalism Will Save the Rainforests

In a recent interview by E/The Environmental Magazine, Paul Ehrlich, population control advocate and outspoken environmentalist stated that, "the one resource that we will never run out of is imbeciles ... the don't-worry, the-environment-is-in-great-shape, all-we-need-is-unconstrained-capitalism-and-everything-will-be-fine crowd." Not a surprising statement from a biologist who was also quoted in a 1980 Christian Science Monitor article as saying, "Economists are probably the most dangerous single profession on earth..."

While the environmentalist doomsayers continue to howl about impending global ecological disaster and fault "unconstrained capitalism" for leading to the destruction of our planet , it just so happens that these very same "imbeciles" that Ehrlich and the pessimists scorn have become the new leaders in an effort to conserve tropical biodiversity while promoting economic growth in rapidly developing nations.

These "imbeciles," many of whom are economists, young entrepreneurs, private property owners, and CEO's of large multinational corporations, have now begun to realize the economic value of conserving biodiversity and are already making substantial profits on preserving tropical forests.

In countries such as Costa Rica, there is a growing awareness amongst conservationists, policy makers, and government officials that all efforts geared towards environmental protection and conservation of biodiversity must include economic considerations that will gain popular support from the people and that will change the economic incentives for resource exploitation.

"Ecotourism" and "biodiversity prospecting" are just some of the innovative free market initiatives taking shape in Costa Rica. While the country covers only 0.03 percent of the earth's land area, nearly 5 percent of all species on the planet are found in Costa Rica. Ecotourists from around the globe flock to the nation's 20 National Parks and 18 natural reserves where one is sure to catch a glimpse of the magnificent Keel-billed Toucan or the brilliant Scarlet Macaw.

This growing network of conservation areas which protect over 25 percent of the country's land surface gives Costa Rica the largest protected area per capita in the world. In 1995 alone, Costa Rica was visited by nearly 800,000 tourists who pumped $661 million into the country's economy, more than doubling that of the $275 million earned in 1990. As a result of this booming industry, not only is the government willing to invest more money in conservation efforts, but a growing number of private land owners are beginning to switch to alternative uses of their land. Rather than turning forested property into cow pastures, many land owners are now preserving their trees, purchasing large tracts of forest, and developing small scale ecotourism operations.

While the ecotourism industry is thriving, multinational corporations are working together with conservation groups in other ways. In 1991, Merck & Co., Inc., the world's largest pharmaceutical company, and Costa Rica's National Biodiversity Institute (INBio) joined hands in a collaborative agreement to explore Costa Rica's biological riches in search of new medications.

In exchange for several million dollars which help to train local researchers and defray the direct costs of biodiversity upkeep, Merck's scientists have direct access to a wide variety of plant and insect species from Costa Rica's protected areas. In the event that a new wonder drug were to be discovered and placed on the market, fifty percent of the royalties awarded to INBio would be given to the Costa Rican National System of Conservation Areas and the remainder would be dedicated to further the concept of "biodiversity prospecting." Because the scientific community has only just begun to explore Costa Rica's biodiversity, the possibilities of discovering new wonder drugs in the near future are endless. As more pharmaceutical corporations begin to realize the extraordinary potential for huge profits down the road, they too will invest in conservation and biodiversity prospecting efforts.

While critics argue that the continued growth of ecotourism will eventually lead to the congestion of the rainforests with more people, pollution, and souvenier stands, the current benefits to both conservation efforts and to the Costa Rican economy far outweigh these potential costs. In fact, as the ecotourism industry continues to grow, congestion in the current preserves will decrease as operations expand to other regions. Skeptics also fear that in the case of biodiversity prospecting, the discovery of a new wonder drug will lead pharmaceutical companies to purchase large tracts of rainforest and extract all species of interest. However, once these new chemical compounds are discovered in the field, scientists will be able to synthesize these compounds in the laboratory.

For those of us who wish to protect our environment while at the same time preserving the integrity of the marketplace which will allow for continued economic growth in developing nations, there is nothing more exciting than to witness the ever-growing partnership between the two worlds of capitalism and environmentalism.