| By: |
Marek Hudon (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and Harvard University, Boston.);
Bernard Lietaer (Center for Sustainable Resources, University of California at Berkeley) |
| Abstract: |
Decentralized sustainable resource management in developing countries is
important both from a poverty-reduction and an ecological viewpoint. At the
same time, no financial instrument is available that enables small savings to
be protected against the vagaries of monetary instabilities and inflation.
This paper proposes a solution that would address all three issues
simultaneously: an inflation-proof savings instrument, fully backed by the
organic growth process of a local resource, which at the same time gives a
market-based financial incentive to protect that natural resource. A specific
example involving sustainable forestry plantations in the Third World is
provided. |
| Keywords: |
savings, microfinance, natural resources, deforestation, inflation, sustainable development, poverty reduction. |
| JEL: |
G21 G32 L22 L31 O16 P23 Q14 |
| Date: |
2006–06 |
| URL: |
http://d.repec.org/n?u=RePEc:sol:wpaper:06-014&r=mfd |