Abstract
Farmed shrimp contributed 27% of total world shrimp production in 1995 with a volume of 712 000 tonnes. Undoubtedly, the shrimp culture industry earns valuable foreign exchange for developing countries and generates jobs across the industry from fry gatherers to growers and processors. However, grave socio-economic consequences -including conversion, expropriation and privatization of mangroves and other lands; salinization of water and soil; decline in food security; marginalization of coastal communities, unemploy- ment and urban migration; and social conflicts - have followed in the wake of. shrimp farm development in the Philippines and other tropical countries. The paper focuses on mangrove ecosystems: the valuation and cost-benefit analysis of their goods and services, and the mangrove-offshore fisheries connection. Research, gaps in these areas and the need to internalize the ecological and socio-economic costs ('externalities') of shrimp farming are highlighted. Other recommendations include mangrove conservation and rehabilitation, enforcement of existing legislation, and introduction of environment-friendly aquaculture within the broader framework of community-based, integrated coastal area management, e.g. the traditional, -extensive polyculture ponds in Indonesia. production has risen from a mere 6% in 1970 to 26% in 1990 (FAO 1993). Shrimp farming constitutes one of the phenomenal commercial success stories of the last two decades, with annual growth rates of 20- 30% in contrast to astable 2-3% increase for wild catches from the ~ame period (Primavera 1994). Shrimp (belonging to the family Penaeidae) thrive in the tropics and subtropics where the waters are warm, and they are exported to Japan, North America and Europe where consumer demand is high. In 1992, 982000 t of fanned crustaceans (90% marine shrimp) valued at US$ 6.6 billion constituted only 9% of total aquaculture volume but contributed 24% of total value (FAO 1995). High profitability and generation of foreign exchange have provided the major driving force in the global expansion of shrimp culture, attracting both national governments and international develop- ment agencies. The key factor in the growth of the Asian shrimp industry has been private sector initiative including the involvement of multinational corporations (Csavas 1988 in Bailey & Skladany 1991). Shrimp farming started in Southeast Asia in traditional earthen ponds that depended on tidal

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