An abundance of natural resources does not necessarily translate into wealth for the poor. To make nature a source of prosperity for poor communities requires supportive governance conditions: policies and laws that protect the rights of the poor, coupled with responsive institutions that promote their interests. Without these, the presence of high-value resources like timber, gold, diamonds, or oil can actually be detrimental to poor communities, providing a target for exploitation by outside business interests and politicians. Too often, the result is that most of the revenues are appropriated by others, leaving the community—and local ecosystems—worse off than they were prior to “development.”

Even where high-value resources are not present, the patterns and institutions of governance are usually the critical factor determining how effectively the poor can harness ecosystems for their livelihoods. Where laws are biased against the poor and government practices disenfranchise them, the potential for better management of ecosystems to alleviate poverty is greatly diminished.

This chapter examines key governance conditions that influence whether nature becomes a source of wealth and prosperity for many, or merely a select few. It focuses on the three governance factors with the most concrete impacts on the poor and their capacity to derive environmental income: resource tenure and property rights; decentralization of resource management; and the rights to participation, information, and justice.

These factors revolve around the rights of the poor to physically access and control natural resources, and their right to be heard in decisions about how to utilize these natural resources.