The last decade has seen several studies demonstrating the economic value of ecosystems and the fynbos biome is no exception. Despite notable criticism on some of these studies, on average they have succeeded in raising the awareness on the value of well-functioning ecosystems. In some instances this has led to conservation and restoration success on the ground, but what is needed is an institutional system that will translate abstract economic values into real financial investments in ecosystems. With continued increased pressure on the world’s biodiversity on the one hand and shifting agendas towards climate change and a rather reductionist and in practice partial ecosystems goods and services (EGS) analysis on the other, economists and ecologists need to build on their successes and find new meaning in their work on total systems value, as opposed to a focus on total economic value (TEV) or an EGS analysis only. Economists and ecologists would also do well by soliciting the services of those who can assist in the development of new institutional processes and arrangements that can capture the real financial benefits of well-functioning ecosystems beyond the usual short-term and consumptive benefits. Based on a analysis of current bottlenecks to realise real-world investments in specifically fynbos ecosystems, an action-orientated agenda focussed on performing economic valuation studies to better serve the needs of decision makers, an increased understanding of and leverage of total systems value, and a renewed focus on the institutional process and arrangements to capture fynbos ecosystem values, is proposed.

1. “After all those cosy years of working
together, show me the money”
From economic valuation to real-world investment in
the fynbos biome
Keynote address at Fynbos Forum, Bredasdorp,
6 August 2009
by
Martin de Wit

2. Image: MP de Wit
Mountains of complexity..

3. • Total Economic Value of Cape Investing in Natural Assets
Floral Kingdom at least A business case for the environment
in the City of Cape Town
R10bn per year
• Water, tourism, flower Martin de Wit, De Wit Sustainable Options (Pty) Ltd (Project Leader)
Hugo van Zyl, Independent Economic Researchers
Doug Crookes, Independent
harvesting, existence values
James Blignaut, Beatus CC
Terence Jayiya, Jaymat Enviro Solutions CC
Valerie Goiset, De Wit Sustainable Options (Pty) Ltd
Brian Mahumani, De Wit Sustainable Options (Pty) Ltd
Prepared by
Natural Value Joint Venture
c/o PO Box 546
Brackenfell
7561
Prepared for
Arne Purves
City of Cape Town
High value ecosystems, but too little investment.
Why?

4. From knowledge to investment
Argument
• Transmission
• Cognition
• Reference
• Effort
• Influence
• Application
Images: Flickr

5. Barriers in the economic
argument
• Economic valuation studies are by
definition partial and static
• Proving that fynbos has an economic
value does not provide the cash
• In many times it is only the start of a
long institutional process of market
creation
Images: Flickr

6. Valuation as if decision makers matter
• Valuation of joint products or multiple services
• Values before and after environmental change
• Valuation at different states of ecosystem
disturbance
• Include valuation studies in a dynamic systems-
wide framework

7. Predictable receptors?
• Simple behavioural rules can
create complex outcomes
• Large number of small,
incremental changes in budgets
from year to year, followed by
sudden rapid changes Image: Flickr

8. Taking receptors seriously
• Realities of the decision-making process itself
need to be explicitly included
• networks and relationships,
• why certain subjects and alternatives are
considered for the policy agenda while
others are not
Image: Flickr
• role of knowledge in power dynamics in
particular contexts

9. Barriers in transmission
• Divergence between
analysts and decision
makers
• Mis-communication
Image: Flickr
Know how to listen, and you will profit even from those who talk badly.
Plutarch, Greek biographer & moralist (46 AD - 120 AD)

10. Transmitting with ease
• Personal relationships and trust between
researchers and decision makers are important
facilitators of the use of research evidence
• Communication strategy: Who Says What In Which
Channel To Whom With What Effect?

11. Conclusions
• Economic argument needs to be
made within the context of Total
Systems Value
• Choices by decision makers are
driven by heuristic rules leading to
complexity
• Deep-seated divergence between the
cultures of analysts and decision
makers
• Need for effective communication
Images: CoCT

12. An investment in knowledge always pays the best
interest.
Benjamin Franklin (1706 - 1790), US author,
diplomat, inventor, physicist, politician, & printer