Property rights for biodiversity conservation and development: Extractive reserves in the Brazilian Amazon

Many of the world's most valuable biodiverse areas are successfully managed by indigenous communities, often under peculiar property rights structures. In many cases, these communities are economically disadvantaged, even by local standards. But can particular local property rights regimes which are ecologically successful also allow communities to compete productively in market economies ? The extractive reserves of the Brazilian Amazon offer an opportunity for investigating the connections between property rights, conservation and development in the context of tropical forests. This article aims to analyse whether the existing property rights in these reserves - an idiosyncratic mixture of public, collective and private property rights - can support the explicit development aim of a competitive, yet sustainable, exploitation of the area's natural resources. The analysis identifies three promising development paths open to extractive reserves, but points to a fundamental contradiction between the static structure of the property rights system and the dynamic nature of two of these paths. The current design of internal property rights fails to take into account the broader economic context in which reserves must generate a viable revenue stream. If extractive reserves are expected to develop without reliance on external aid, then changes to the property rights structure both inside and outside the extractive reserves have to be explicitly considered.