A participatory framework for conservation payments

This paper describes a participatory framework used in Alta Verapaz, Guatemala to analyze the future viability of different conservation measures in a cloud forest area. It presents how in the case of conservation initiatives, participatory developed instruments could provide the incentive for farmers to reinforce or introduce conservation measures in their farming systems to preserve habitats, reduce species disruptions and alleviate poverty. A model's architecture was created with stakeholders of different settings of the region of study. Together, baseline-scenarios and policy-scenarios on land use and income generation were developed. The paper investigates the potential impacts of different policy measures for conservation and poverty reduction through the instrument “payments for environmental services”. Aim was to integrate social, economic and environmental aspects.     

Compulsory purchase for biodiversity conservation in the Netherlands

Policy instruments are the building blocks of land use policies. Instrumentation of policies relates to values. Compulsory purchase is a direct government instrument that may be an effective way to implement policies of biodiversity conservation and the allocation of land for recreational use. It is, however, in many contexts, politically controversial. The Netherlands’ Government has endorsed policies that involve compulsory purchase in up to 10% of land purchases. This paper reviews if this 10%-ceiling can structure relationships between landowners and government agencies in such a way that it relieves constraints imposed by land availability for biodiversity conservation and the provision of recreational areas. The analysis consists of (1) the background of this 10%-ceiling, (2) the actual procedures of compulsory purchase, by analysis of Royal Decrees, (3) the actual compulsory purchases, and (4) the indirect instrumental effects of the use of this instrument. The paper concludes that the 10%-ceiling does not lift the constraints of land availability, but does influence the relationship between stakeholders, the implementation of biodiversity objectives, and land policy strategies. Nevertheless, compulsory purchase may provide possibilities to acquire land necessary for a consolidated natural area.     

Adapting to the gender order: Voluntary conservation by forest owners in Finland

In this article we explore the hidden gender order of the biodiversity policy and, in particular, the social and societal positions offered to male and female forest owners in voluntary conservation. Two studies were conducted in the region where the National Biodiversity Program for Southern Finland (“METSO”) has been implemented. Study 1 focused on forest owners’ discursive practices that construct different actor positions to female and male forest owners; 27 interviews with forest owners were analyzed. Three discourses – “conservation threatens forestry,” “forestry threatens conservation,” and “good forestry is conservation” – were identified. Forest owners typically described themselves as “loggers” who were explicitly described as masculine. This was paired with the feminine position of “bystander.” The other two positions found, “protectors” and “political agents”, by contrast, were discussed as non-gendered positions. In Study 2 we examined quantitatively how individual forest owners’ nature conservation preferences and willingness to conserve forests is mediated by gender. The responses of 965 owners were analyzed with structural equation modeling. The endorsement of nature conservation preferences was found to increase willingness to conserve forests only among male owners. The results illustrate how individual forest owners adapt their nature conservation preferences to forestry's masculine socio-cultural context.     

An assessment of the policies and practices of selective logging and timber utilisation: A case study from natural forests of Tarai Nepal and Queensland Australia

Selective logging (SL) contributes nearly 15 percent of the global timber needs. Considering its role in sustainable timber production, biodiversity conservation and forest carbon enhancement, assessment of SL policies and practices is crucial. This paper assesses the policies and practices of SL in natural production forests of the Tarai region of Nepal and Queensland Australia to explore the key differences in such policies and practices and their possible implications in achieving sustainable forest management objectives. The primary methods applied in the study were review and synthesis of key policy documents and qualitative analysis of the information gathered from key informant interviews and stakeholders’ workshop. Altogether, 53 respondents from a wide range of stakeholder groups (government organizations-15, non-government organizations/networks-15, private sector including the individual landowners-13, local political leaders-3 and independent forest experts/scientists-7) were consulted. Findings suggest that: (1) frequent and inconsistent changes in policy provisions, lengthy administrative procedures and heavy engagement of state forest agencies in forest product harvesting and sales processes play key roles in sub-optimal forest production in Nepal, whereas lower dependency on forest-products, higher labour costs, lack of species-wise royalty rate and flexibility in selecting optional logs are the key factors for increased wastages of forest products in Queensland; (2) recovery and utilisation of the harvested forest product is better in Nepal but policy and practical considerations on biodiversity and environment are better in Queensland; and (3) Forest harvesting specific codes of practice, occupational health and safety standards, and their compliance mechanism of Queensland could be beneficial for Nepal to minimise operational harvesting risks and to attract professional harvesters that support promoting sustainable use and management of natural forests, as we found this aspect almost neglected in Nepal.     

Institutional constraints on conservation auction: Organizational mandate,competencies and practices

Auctions appeal to analysts and policy designers because of their potential efficiency in recruiting new areas for nature conservation. The failure to develop genuine auctions and competitive tender processes is typically blamed on the design and the attractiveness of the instrument. However, the institutional constraints that a new competitive mechanism faces when placed in a real-world ecological-institutional setting are only partly anticipated by the theoretical and analytical approaches. This paper explores the theory-based principles of cost-effectiveness against a real-world auction instrument designed for forest biodiversity conservation in Finland. The instrument, called “Natural Values Trading”, specified that the tenders should be invited and compared on an annual basis but the competitive procedure was not operationalized. Instead, sites were evaluated on a first come – first serve basis, applying ecological criteria and pricing based on opportunity costs. The institutional constraints of the auction mechanism centred on the difficulty that public authorities geared toward implementing law and treating citizens equally faced with a competitive arrangement. The pressure to generate instant impact overrode experimenting with new mechanisms and exiting an administrative comfort zone. The findings conform to the institutional theories that identify challenges with matching organizational mandate, reallocating and developing organizational competencies as well as changing informal organizational and professional practices. The design of biodiversity conservation mechanisms will not go far by focusing solely on cost-effectiveness; instead, the institutional friction should be taken seriously and organizational mandates, competencies and practices should be addressed explicitly.     

The ecosystem approach,ecosystem services and established forestry policy approaches in the United Kingdom

A series of approaches have been proposed for natural resource management and biodiversity conservation in recent decades. In the important forestry sector, two of the most dominant policy paradigms have been multi-purpose forestry and sustainable forest management. The Convention on Biological Diversity, amongst other transnational commitments, added the ecosystem approach and its related idea of ecosystem services to this succession which is increasingly becoming the basis for natural resource management, including in the United Kingdom (UK). However, this latest addition raises the stimulating question of whether in forestry the ecosystem approach and the associated ecosystem services concept really constitute something fundamentally new, or are merely an extension or re-branding of existing policy approaches. This paper contributes to a lively contemporary debate surrounding the ecosystem approach and ecosystem services, by examining how these two interrelated but distinctly different concepts are currently understood and adopted within UK forestry and in the context of established forestry policy paradigms. For this purpose, I undertook a review of the scholarly literature and legal and policy documents which have been triangulated with a survey of the attitudes, interpretations and opinions of forestry stakeholders through expert interviews. The analysis suggests that in the UK forestry sector, as elsewhere, the frequency of, often broad and ambiguous approaches to natural resource management and biodiversity conservation in general, and forestry policy and management in particular, are causing confusion amongst some stakeholders, who, unsurprisingly frequently conflate concepts seemingly without understanding the details. However, a clear understanding of the differences and similarities of these important concepts, stemming from overlapping but different disciplines, is crucially important for successful policy implementation and sustainable forest management. This article attempts to contribute to such a clarification and to further interdisciplinary understanding.     

Combining management plans and payment schemes for targeted grassland conservation within the Habitats Directive in Saxony,Eastern Germany

As central policies for biodiversity conservation in agricultural landscapes in the European Union (EU), the Habitats Directive and Agri-environmental programmes (AEP) have largely failed to halt biodiversity loss. In response, the German federal state of Saxony combined the instrument of management plans with AEPs to support the implementation of the Habitat Directive. In this study, we investigate the determinants of a farmers’ decisions to adjust their farming practices. Our data set consists of a quantitative survey with 131 farmers conducted between 2004 and 2011, complemented by implementation data from 333 grassland-plots. Determinants of farmers’ decisions to conserve grassland were estimated using a multinomial logit model. Our results show that a combination of management plans and AEPs can increase farmers’ disposition to adopt nature conservation measures. As central determinants, structural and location factors as well as the complementary provisiion of specifically designed AEPs increase farmers’ willingness to adopt conservation practices for grassland management. It can be concluded that additional costs are a major barrier to farmers’ adoption, particularly to those farms directing their farm management towards the optimisation of productivity and profitability . The findings highlight the complementary potential of integrated policy packages to incentivise specific measures of nature conservation within the framework of the Habitats Directive.     

Simulating land use changes under alternative policy scenarios for conservation of native forests in south-central Chile

In this study, we combined policy analysis with landscape change modeling to simulate outcomes of alternative forest conservation instruments proposed by opposing policy coalitions. In 1992, concern over rapid land conversion to timber plantations (Pinus radiata and Eucalyptus spp.) in Chile gave rise to a protracted policy process resulting in the 2008 Native Forest Law (NFL), which subsidizes reforestation and management with native forest. To date, however, NFL has had little impact on native forest conservation. To understand how the policy process that created the NFL shaped its outcomes, we employed the Dyna-CLUE modeling approach to simulate land use changes in south-central Chile from 1993 to 2007, based on 3 scenarios: (1) enactment of NFL in 1993 when the law was originally debated, and the different configurations of subsidies and regulations proposed in the NFL policy debate by (2) the industrial forestry coalition and (3) the forest conservation coalition. We observed no major difference in native forest loss between simulated outcomes of the industry-advocated policy and the actual NFL legislation. The conservation coalition’s policy scenario increased native forest area, primarily in shrub steppe areas, but also via conversion of pine plantations if incentive payments were large enough. However, NFL payments are inadequate to make native forest management a viable economic land use alternative to industrial pine plantations, which are also subsidized in Chile. Gains in native forest cover occurred mostly on lands under ancestral indigenous claims (unrelated to the discussion of the NFL). We conclude that the NFL, even if enacted in 1993, would have been ineffective in preventing native forest loss, because tree plantations are more profitable and NFL regulations were weakened by the industrial coalition that opposed—and strongly shaped—the final legislation. Effective incentives for protecting early-successional forests and shrublands are needed to mitigate further losses and foster recovery of Chile’s native forests.     

Farmers’ intrinsic motivations,barriers to the adoption of conservation practices and effectiveness of policy instruments: Empirical evidence from northern Australia

The rate and extent of adoption of conservation practices by farmers is influenced, in principle, by characteristics of the practices and those of the farmers. Governments use policy instruments to increase the rate of adoption of practices which generate public benefits if it is deemed that privately optimal adoption rates will not lead to publicly optimal conservation outcomes. Recent nation-wide conservation programs in Australia have attracted criticism for low levels of effectiveness and efficiency. Could it be that program design has ignored key adoption factors, in particular characteristics of the target audience? If adoption is subject to personal factors, such as the motivations for farming, then it is likely that so are farmers’ responses to policy approaches and instruments. In this case study, surveys were conducted of farmers in three regions within the tropical savannas of northern Australia, where land-use systems are characterized by large-scale broad-acre beef grazing enterprises. Inter alia, these surveys collected data on graziers’ motivations, impediments to adoption of conservation practices, and perceived effectiveness of policy instruments in overcoming impediments. The research found that graziers had a very high level of conservation and lifestyle motivation and were motivated to lesser extents by financial/economic and social considerations, pointing to a strong stewardship ethic of graziers, or altruistic motif. Motivational profiles were significantly correlated with farmers’ perceptions about what constrained them from implementing conservation based management systems. Motivational profiles also explained differences in farmers’ perceptions of and stated propensity to interact with policy instruments, particularly at a regional scale and in the context of historical government interventions. On the basis of the empirical evidence presented, governments would be well advised to harness the diverse set of aspirations and motivations of farmers when designing conservation programs rather than. In particular, conservation programs need to take advantage of farmers’ stewardship ethic for maximum effectiveness and efficiency, and minimize the risk of crowding out intrinsic motivation and altruistic behaviours.     

Enhancing ecosystem services through afforestation: How policy can help

We employ an integrated spatial economic model to assess the net private and public benefits of converting marginal agricultural land into forest plantations (afforestation) in New Zealand. For numerous locations, we conduct policy analysis considering the magnitudes of net private and public benefits of land use changes to determine whether a policy response is justified and, if so, to identify the appropriate policy instruments to encourage adoption of afforestation. Net private benefit is commonly negative, so much so, that in most cases no policy response is justified. However, in certain cases, net private benefits are slightly negative and public benefits are significantly positive justifying the use of positive incentives as the most appropriate policy instrument to encourage afforestation in New Zealand. The most commonly used policy instruments for afforestation in New Zealand, extension and awareness training, are found to be appropriate in only a minority of situations.     

Power alliances for biodiversity—Results of an international study on community forestry

Protecting and enhancing biodiversity is one of the most important ecological goals of community forestry. Meeting this goal depends on a complex interaction of ecological as well as social and economic factors. With this paper we ask, whether the power of actors has a strong influence on the ecological outcomes of community forestry and if so, how such alliances for biodiversity look like. For empirical evidence we use our database compiled of research on 84 international community forestry cases of both developed and developing countries, taken from 2009 to 2016. The results show that the powerful actors are driving biodiversity in community forestry. With a small number of powerful actors interested in enhancing biodiversity we were able to identify only little substantial support for this goal. The widespread public announcements of biodiversity goals are mostly symbolic. Dominant information and financial incentives are the most common instruments for protecting the ecological equilibrium. This indicates a “soft” policy for biodiversity in contrast to the hard coercive instruments which protect the forest area as such. We conclude that the analysis of power can be a valuable factor in explaining the outcomes of community forestry in practice.     

New environmental policy instruments to realize forest expansion in Flanders (northern Belgium): A base for smart regulation?

This paper evaluates the current instrument mix, designs options for smart regulation and estimates the support base of new instruments for the forest expansion policy in Flanders (northern Belgium). The framework applied is a combination of theories on instrument choice (ICT), policy transfer and legitimacy. The ICT points out that there is a need for new environmental policy instruments (NEPI) oriented to private actors that inform them or create win–win situations for all involved parties. The need is especially high for farmers, who are key actors. The policy transfer analysis suggested instruments currently in use in the Netherlands, England and Denmark that can fulfill these needs. However, the acceptability – or legitimacy – of the suggested instruments in Flanders is only high for three of these, notably the carbon fund, flexible grant scheme and expert advice (especially by forest groups). This largely fills some smart regulation gaps, like the need for information (expert advice), the involvement of other institutional actors (certifiers, forest groups) and the higher involvement of the private sector (all). However, some gaps, such as flexible land purchase through cooperation with real estate agents or other private agents and opportunities for win–win outcomes with farmers, remain. Thus, it is not possible to fully optimize the instrument mix in accordance with the smart regulation requirements in Flanders’ forest expansion policy at this moment. However, as continuity or incremental change is characteristic of most public policy, this does not mean that the suggested changes will be impossible in the near future, especially with the changing character of the rural space.     

Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example

Since most agricultural programs employ two or more policy instruments simultaneously, it is notable thai little research has attempted to find optimal instrument combinations and no research exists which evaluates the social costs (unrealized benefits) of combining instruments suboptimally. In our paper we report a simple and feasible method to find optimal policy instrument combinations, and we provide the first general, formal approach to measuring the social costs of suboptimal policy instrument combinations. Our approach is illustrated in an analysis for live major U.S. crops (corn, feed grains, wheat, rice, cotton). The simple model we employ for the illustration suggests that except lor the feed grains program, the observed programs combined policy instruments quite suboptimally. We conclude that agricultural economics research now can and should begin placing increased emphasis on studying optimal policy instrument combinations.     

The complex reality of biodiversity conservation through Natural Protected Area policy: Three cases from the Yucatan Peninsula,Mexico

The federal policy of Natural Protected Areas has become the main instrument for conserving biodiversity in Mexico. Established in territories representative of different ecosystems but also of cultural diversity, protected areas in Mexico have historically been created and managed with a centralized rationale, creating several conflicts with local communities over the use of natural resources. The country's approach to protected areas perfectly illustrates the complexities, difficulties and challenges entailed in biodiversity conservation. This paper develops a critical analysis of this policy instrument in Mexico, and analyzes three Natural Protected Areas in the Yucatan Peninsula: The Calakmul Biosphere Reserve, the Celestún Biosphere Reserve, and the Otoch Ma’ax Yetel Kooh Natural Protected Area. The case studies serve as examples of the most common difficulties that arise in Mexican Natural Protected Area policy: (1) uncoordinated public policies; (2) the usual conflict between environmental authorities and local people over the management of natural resources; and (3) the exclusion of local people's perspectives, values and beliefs in conservation policy development and implementation.     

Farmers’ land use decision-making in the context of changing land and conservation policies: A case study of Doi Mae Salong in Chiang Rai Province,Northern Thailand

In Thailand, land use planning and policy decision-making were—and to some extent still are—organized in a hierarchical and disjointed fashion. This is also true for the utilization of public lands, including forest reserves in the northern uplands that are often settled by ethnic minorities. There are, however, instances of change in land policies and regulations and in the way decisions and plans are made. Doi Mae Salong (DMS) in Northern Thailand, where there is a trend towards land use for conservation purposes, is a case in point. This paper aims to explore decision-making by farmers in DMS in the context of changing land regulations and policies from the 1950s to the present. The Institutional Analysis and Development (IAD) framework, together with a historical perspective and with narratives on land management through time, were applied by using in-depth interviews of key informants and group farmers’ discussions as tools. The time period under investigation was divided into three periods of change: The first period, before the year 1960, was an era of security concern. In contrast, the second period, from 1961 to 1996, was an era of emerging conservation priorities. Finally, the third period, from 1997 to the present, is an era of lessons learned from the conservation era. Land use decision outcomes reveal that the decision-making processes of farmers are influenced both by the hierarchical decisions of higher authorities and by horizontal linkages among multiple stakeholders. However, while farmers participate readily in forest conservation activities, they do not play an active role in the process of changing policies.     

Extension,advice and knowledge systems for private forestry: Understanding diversity and change across Europe

The decisions and actions of private forest owners are important for the delivery of forest goods and services. Both forest ownership, and policies related to forest owners, are changing. Traditionally in most countries, government extension officers have advised and instructed forest owners, but this is evolving, with greater importance given to a range of actors, objectives, and knowledge types. Drawing on literature and mixed data from 10 countries in Europe, this paper explores how forestry advisory systems can be conceptualized, and describes their current situation in Europe. Drawing parallels with the concept of AKIS (Agricultural Knowledge and Information Systems), we propose the term FOKIS (FOrestry Knowledge and Information Systems), as both a system (a purposeful and interdependent group of bodies) and a method for understanding such systems. We define four dimensions for describing FOKIS: owners, policy goals, advice providers, and tools. We find different roles for extension in countries with centrally controlled, highly regulated forest management, and advisors in regions where forest owners have more freedom to choose how to manage their forest. We find five trends across Europe: increasing flexibility, openness and participation of owners as sources of information; increasing reliance on information and persuasion rather than enforced compliance; a shift of attention from timber to a wider range of ecosystem services such as biodiversity and recreation; a shift of funding and providers from public to private sector; emergence of new virtual communication tools. The approach provides a way to make sense of comparisons and change in FOKIS, and opens up an important research field.     

Dynamic land use and land cover changes and their effect on forest resources in a coastal village of Matemwe,Zanzibar, Tanzania

Recent land cover change estimates show overall decline of tropical forests at the regional and global scales caused by multiple social, cultural and economic factors. There is an overall concern on the prevailing land use practices, such as shifting cultivation and extraction of forest materials as agents of forests losses, but also new, emerging land uses are threatening tropical forests. Understanding of the long-term development and driving forces of forest changes are needed, especially at local levels where many decisions on forest policies and land uses are made. This paper addresses the importance of such information for improved estimates of forest dynamics by studying local level land cover and land use changes during the last 50–70 years in the Eastern African tropical island of Zanzibar, Tanzania. The paper discusses the role of traditional and new land uses mainly subsistence farming, tourism and government interference through tree planting, in the long-term development of the forests at the village level. The material for the study is gathered from the interpretation of archival maps and aerial photographs combined with contemporary digital aerial photographs. The analyses are based on the mapping, spatial sampling and spatio-temporal change trajectory analysis (LCTA) of forest land cover, forest land uses and settlement patterns with GIS and statistics. Six distinct forest land cover change trajectories were identified and these illustrate dynamic and heterogeneous nature of the forests. Closed forest cover has dominated throughout due to cyclical land use patterns, but over 70% of the land area has been continuously transforming between closed, semi-open and open land cover conditions. Land use turnover rates indicate that hardly any forest areas are left untouched from the forces, which remove and re-establish forest vegetation in the long run. Land cover and land use change trajectories are spatially fragmented in the studied landscape. Majority of forest loss-gain dynamics is caused by shifting cultivation, while forest losses are most dramatic along the coast, where traditional and new land uses meet and land uses pressures are highest. The study suggests that landscape change trajectory analyses, where contemporary and historical information on land uses and land cover changes are spatially linked, can provide valuable aspects into local level forest land use planning and management strategies. For the case study, the findings suggest the following key forest management strategies for consideration: (1) establishment of a protected forest/scrubland in participation with the local stakeholders, especially the farmers, (2) promotion of areas for permanent agricultural practices, while simultaneously introducing management controls in the traditional slash-and-burn farming areas, and (3) promoting new livelihood opportunities for the farmers, who have traditionally been dependent on forest resources, meanwhile introducing alternatives for fuel wood for cooking.     

Why do we need to integrate farmer decision making and wildlife models for policy evaluation?

Environmental and agricultural policy instruments cause changes in land-use which in turn affect habitat quality and availability for a range of species. These policies often have wildlife or biodiversity goals, but in many cases they are ineffective. The low effectiveness and the emergence of unwanted side effects of environmental and agricultural policies are caused by over-simplistic assumptions in the design of policy instruments as well as difficulties with predicting behaviours of policy subjects. When considering wildlife in agricultural landscapes, policy's performance depends both on human (farmers) actions, which the policies aim to affect, and wildlife responses to land-use and management changes imposed by farmers. Thus, in order to design effective agri-environmental policies, detailed ex-ante assessments of both of these aspects are necessary. Due to the restrictive assumptions and technical limitations, traditional agricultural economic and ecological models fall short in terms of predictions of impacts of agri-environmental measures. The feedback situation between policy, human behaviour and ecological systems behaviour can confound these approaches, which do not take systems complexity into account. Therefore, a solution that integrates both feedback interactions and the differing scales at which these interactions take place is needed. For this, we suggest developing integrated policy assessment tools comprising of simulated farmer decision making, on-farm land-use and wildlife responses in the form of spatially explicit, dynamically connected agent-based models. Although complex and necessitating true inter-disciplinarity, these approaches have matured to the point where this endeavour is now feasible.     

Anticipating a new conservation bureaucracy? Land and power in Indonesia’s Essential Ecosystem Area policy

As an emerging policy in Indonesia, “Essential Ecosystem Areas” (EEA) is being established as an instrument to expand protections for conservation areas at sites beyond the classical domain of the conservation bureaucracy. The policy impetus is from recent global research identifying high conservation values located outside of formally designated conservation areas. EEA policy provides a foundation for justifying conservation practices at sites based on high biodiversity indicators, but which might not have previously held formal protections. This policy instrument is particularly unique in Indonesia because it is envisioned to support initiatives that emerge voluntarily, even in areas that might not have been historically thought of as conservation areas. This is unusual because it applies to all land categories, including private and public lands. In this article, we introduce the EEA policy and identify the potential applications it might have, considering the possibilities for future conservation area management in Indonesia. In particular, we identify some key principles for researchers and practitioners to follow when assessing EEA implementation. Our organizing framework consists of several elements based on existing land and power characteristics, which we connect to the institutions that might emerge amidst these new policy arrangements. We apply the land and power framework to two emerging EEA sites in Sulawesi to anticipate the extent to which the policy suggests a future trajectory for conservation management, or whether conservation policy will remain tied to existing rigid bureaucratic structures. Findings from the two cases point to the continued primacy of the centralized conservation bureaucracy, indicating that EEA sites are being negotiated through the classical approach for administering conservation areas.     

A High Road to Sustainability? Wildflower Harvesting,Ethical Trade and Social Upgrading in South Africa's Western Cape

This paper evaluates the outcomes from an ambitious wildflower harvesting programme in South Africa's Western Cape, which has sought to achieve positive outcomes in terms of socio‐economic development and biodiversity conservation. Indigenous wildflowers, harvested according to conservation principles, are processed into ‘Cape Flora’ bouquets and sold into international and domestic markets. The principal supply chain provides an example of ethical trade due to the explicit environmental and social standards that are required at local sites of production. The incorporation of such standards represents an attempt to engender economic and social upgrading within the value chain. In this sense, the programme is consistent with dominant policy discourses, which suggest that exploiting potentially profitable niches within international trade flows represents a ‘high road’ to economic growth and transformation. The paper focuses upon the job creation and social impacts of the programme in the context of efforts to overcome South Africa's deeply entrenched socio‐economic disparities and high poverty levels. Despite impressive growth in production and exports during the global financial crisis, there have been mixed outcomes in terms of benefits to stakeholders at the upstream end of the supply chain. The paper concludes by considering the extent to which local initiatives operating under the framework of ethical trade possess the potential to facilitate effective social and economic upgrading.