Community Biodiversity

Management (CBM)
fund for sustainable
rural finance
Shree Kumar Maharjan, Bhuwon
Ratna Sthapit and Pitambar Shrestha

Community empowerment is a driving force to motivate rural

people for conservation efforts. Access to knowledge and
financial resources are basic requirements for the community
to translate their acquired knowledge and skills into practices
that lead to their well being. The CBM fund is used as a
mechanism to achieve the twin goal of biodiversity
conservation and livelihood improvements in Western Tarai
regions of Nepal.

Farmers distributing CBM fund in Shankarpur

W
estern Terai Landscape Complex Project (WTLCP) is
a multi-stakeholders’ partnership project, aiming to
ensure conservation and sustainable use of globally
umbrella structure at the ward level (smallest political unit in Nepal)
significant biodiversity in Nepal’s Western Terai Landscapes.
and these were linked to the other groups in the ward and to the
Implemented from 2005, the project has been adopting
district level line agencies especially with district agriculture
Community-based biodiversity management approach to
development office (DADO) and district level biodiversity
implement on-farm conservation of agro-biodiversity in six
conservation and development committee. Capacities of these
villages. Community biodiversity management (CBM) is a
committees and farmers groups were strengthened by a series of
community led participatory approach to strengthen the
trainings, orientations, exposure/exchange visits to ensure that their
community’s capacity for conservation, use and sustainable
agendas are considered in planning process and they become part
management of local biodiversity with a blend of traditional and
of the process.
scientific knowledge system. The project focuses on encouraging
leadership by the local level institutions in setting the research CBM Fund
and development agenda. The project was implemented by United
In each BCDC, a community biodiversity management (CBM)
Nations Development Programme (UNDP) and Ministry of
fund was established with farmers monthly savings being
Forestry and Soil Conservation (MoFSC) in collaboration with
supplemented with a seed money provided by the project. The
GEF, SNV, WWF, Biodiversity International, National Agricultural
conditions of the CBM fund are that the local women groups should
Research Council and LI-BIRD.
be officially organized as community based organization with
Setting agenda transparent governance system. They should have set their own
local income generating activities and also work together to support
Traditionally, biodiversity planning always followed top down
community based conservation efforts. The funds help to bring
approaches in which local priorities and preferences were seldom
together rural community for participation in collective action and
considered in shaping the biodiversity agenda. Though this project
in the process allows strengthening local capacity in decision
was also formulated top down, LI-BIRD, with its successful
making and individual member’s benefits from participation.
experiences from community based works in Biodiversity Global
Project (1997-2004), used local level institutions as the platform The CBM funds are given to farmers as loan with minimum interest
for decentralized agenda setting. In each project village, Village rate for different income generating activities (IGA) like pig
Development Committee (VDC) and biodiversity conservation and rearing, goat farming, bull purchasing, poultry farming, bee
development committee (BCDC) were formed. This formed an keeping, fish farming, vegetable production, fruit production and

LEISA INDIA • JUNE 2010 35

improved crop production. Basic idea is to identify best local
genetic resources for multiplication and spread to other members Box1
of the network. A small amount of fund is set aside to capitalize
Ms. Bandiha Chaudhary, is a member of Pragatishil group
natural assets for further enhancing financial and other assets of
in Gadariya VDC-1, Kharuwakheda, Kailali district. She
poor farmers (See Box 1). The group has its own rules and supports borrowed NRs. 2000 (USD 27) from the CBM and used it
those members with loans who combine income generation to buy a piglet in 2009. She fed the pig with household
activities with conservation efforts. The condition is that each wastes and after one year was able to sell it NRs. 10000
farmer getting loan from the CBM fund must conserve at least (USD 135.14). She had been interested in rearing swine
one local landrace in his home garden. before, but was not able to afford the 5% interest rate from
Positive results local money lender in the village. But after establishment
of CBM fund, her interest was fulfilled. In 2010, she brought
In the year 2009, a total of 272 farming households from 6 VDCs another piglet without availing a loan.
benefited from mobilization of such fund (ranges from NRs. 2000
to 3500 i.e., equivalent to 27-47USD) for several income generating
activities with the total amount for NRs. 70,9000 (9576 USD).
Majority of farmers used the money for activities like goat rearing
and pig rearing while some was used for setting rural enterprises
such as fruit cultivation and fish farming (Box 1).
The farmers using the CBM fund have conserved traditional
landraces like Satha dulhaniya, Anjana, Anadi, Sauthyari,
Lalchand, Anjani of rice and other vegetables in their home
gardens.
Management and Sustainability of CBM Fund
BCDC owns and manages this fund in the form of micro saving
and credit scheme which receives from community members and
using it for conservation and development activities. The interest
generated from investment to different IGAs help to increase the
amount of fund that can be used for its management. The fund is
also providing incentives for access and benefit sharing, as
community benefited from the fund for conserving local crop local level community organizer who is a part of the community
genetic resources. Everyone in the BCDC has equal opportunity will help in overcoming this problem.
of getting loans from the fund. The benefits accrued from use of
community genetic resources directly go to the fund and are later Focused group discussions reveal that there are positive results
used for the welfare of farmers. from the CBM fund initiative. It is yet to be seen whether such
community-driven CBM guidelines support the conservation of
CBM fund established in the western terai landscapes is increasing rich local biodiversity in the long run.
year after year with the interests added and farmers’ monthly
savings from farmers’ groups, supported by fund mobilization „
guidelines developed by community with the technical support Shree Kumar Maharjan and Pitambar Shrestha
from project. This makes it a sustainable mechanism to finance Local Initiatives for Biodiversity,
rural farmers for conservation and development activities in Nepal Research and Development (LI-BIRD),
to uplift their livelihood strategies. P.O Box 324,
Pokhara, Gairapatan,
Conclusion Kaski, Nepal.
Farmers are not interested in any agro-biodiversity just for the Bhuwon Ratna Sthapit
sake of conservation without seeing utility and incentives in Bioversity International,
conserving them. The conservation efforts will be sustainable if it India Regional Office,
is supportive to the livelihoods of rural people. CBM fund has C G Centres Block, Dev Prakash Shastri Marg,
achieved the twin purpose of biodiversity conservation as well as Pusa Campus, New Delhi - 110 012,
livelihood improvements. India.
Funds like CBM do generate good initial participation from the
community. But it can also be a source of community conflict if
the governance mechanisms are inadequate. Hand holding by a

36 LEISA INDIA • JUNE 2010