Enlisting Markets in the Conservation and Sustainable Use of Biodiversity in South Asia’s Sundarbans

The unique biodiversity of the Sundarbans is threatened by a number of factors, many of which are the direct or indirect result of market failures. Past governmental interventions aiming at protecting biodiversity have been ineffective, while other government efforts have directly or indirectly led to ecosystem degradation. In order to address these challenges, new governmental interventions are needed, particularly those that have the potential to mitigate market failures and address policy failures. This paper discusses how institutional and market failures, particularly the failure to capture the value of biodiversity as a 'public good', are the key drivers of biodiversity loss in the Sundarbans region of India. It argues that policy interventions to address these failures, as well as other measures that foster the development of markets that recognize the economic value of biodiversity, are a crucial tool for conserving and promoting the sustainable use of the Sundarbans' biodiversity. After describing the study area, a novel integrative development model, the potential for sustainable provision of private, public goods, and ecosystem services and the factors threatening them, the paper concludes with four policy suggestions that may assist in enabling biodiversity conservation and sustainable use in the Sundarbans.