Assessing conservation efforts in Lazurus Forest in Uganda. Picture by FAO Kampala, Uganda | URN | Uganda is currently grappling with the classic development dilemma of how to lift millions out of poverty while safeguarding its rich natural heritage. A growing consensus is emerging among policymakers, economists, and conservationists arguing that assigning real monetary value to the country’s forests, wetlands, lakes, and wildlife may be the smartest path to both environmental protection and sustained economic growth.
Wilson Asiimwe, Senior Economic Modeller at the Ministry of Finance, Planning and Economic Development, uses a simple but powerful analogy to illustrate the point. “The value of a tree to many people is just the money obtained once it is turned into timber, and that increases GDP in the short term,” Asiimwe explains. “But the true value of forests is far greater.
If we do not quantify the full benefits – from regulating water flows, supporting agriculture, storing carbon, preventing soil erosion, and sustaining biodiversity – we risk overcutting. One day there will be no trees left to cut, and GDP will eventually fall.” Asiimwe adds that the short-term thinking has contributed to decades of environmental pressure. Forests have declined sharply, wetlands face encroachment, and ecosystems that underpin agriculture which employs the majority of Ugandans and contributes significantly to GDP, are under strain.
Peter Babyenda, Coordinator at the Centre of Excellence for Africa Climate Sensitive Macro-Modelling, says that although Uganda has made progress in assigning monetary values to some ecosystem services, much of nature’s contribution to the economy remains invisible. Most ecosystem services are not reflected in national accounts, with ecosystems often valued primarily through tourism revenue while many other services receive little or no economic recognition. Babyenda adds that Uganda must begin asking fundamental economic questions about its natural resources.
Once the value of ecosystems is properly measured, he says, the information should be integrated into the country’s macroeconomic planning to guide development decisions. He says Natural Capital Accounting helps identify which ecosystems are under the greatest pressure, enabling policymakers to target conservation efforts where they are most needed.
Summary from source