ABSTRACT

Drawing mostly on aspects of new institutional economics, this chapter examines institutional factors that may influence the behaviour of non-governmental conservation bodies and considers their implications for biodiversity conservation. Principal-and-agent problems are shown to be relevant, the question of rent capture is discussed, and several influences on selection by nongovernmental organizations (NGOs) of focal species for their conservation efforts (such as whether they favour species that are more human-like, or charismatic or which could generate significant local impact on incomes via tourism generation) are considered. The competitive efficiency of NGOs in securing funding for promoting the conservation of different species, as well as the possible impact of this competition on the extent of conservation of biodiversity, is examined using analysis based on the theory of games. It is doubtful if this type of competition is efficient in promoting biodiversity conservation to the extent achievable. Furthermore, the theory outlined indicates that the conservation strategies adopted by NGOs may not be cost-effective. However, drawing on views presented by Hagedorn (1993), it is argued that the role of conservation NGOs should not be assessed solely on their economic efficiency but the political acceptability of their contributions to policy should also be taken into account, as well as other factors. A multidimensional approach is required to assess the role of such bodies in society. Furthermore, even if the actions of NGOs are not perfect in conserving biodiversity, it may not be possible to create institutions that give superior results.