Money where it counts

The Mamirauá Reserve is a very special place and its guardians are very committed people. But they're not alone. From the Atlantic Forest, to the furthest reaches of the Amazon, to the caatinga brushland of the Northeast, hundreds of local groups are proving their dedication to environmental conservation in Brazil. Their aims are as varied as the landscape: education, biodiversity conservation, assistance to indigenous peoples, protection of marine resources.

Although these groups have no lack of energy and vision, money is always a problem. So the establishment of the National Environmental Fund (FNMA after its name in Portuguese) in 1989, and its subsequent funding with an IDB loan for $22 million, were welcome developments. The Brazilian fund was the first, and according to many, the most successful of the 40 national environmental funds established worldwide. It has since financed some 530 projects for a total of $30 million.

The FNMA addresses a crucial challenge facing environmental conservation in developing countries: how to focus local financial, human and institutional resources on solving local problems. National policies and programs, while important, can only do part of the job. Environmental conservation becomes truly sustainable only when people commit themselves to protecting their own backyards. As has been proven many times, in both developing and developed countries, conservation imposed from above tends to be short-lived.

True to its grassroots mandate, more than 70 percent of the FNMA's projects are carried out by nongovernmental organizations, community groups and small municipalities. Five of the 14 members of its committee of directors are from private citizens' groups. The average FNMA funding for projects in 1996 was $81,000. Local counterpart organizations provided an additional $50,000 per project.

Encouraged by the FNMA's record to date, the IDB expects to fund a second phase of the program for $45 million. As in the first phase, the principal objective will be to finance local projects. Resources will also be included to strengthen the FNMA's ability to broaden its financial base and train local groups.