Economic contribution of Chinese caterpillar fungus to the livelihoods of mountain communities in Nepal

Harvesting of Chinese caterpillar fungus, one of the most expensive biological commodities in the world, has become an important livelihood strategy for mountain communities of Nepal. However, very little is known about the role of Chinese caterpillar fungus in household economy. We estimated the economic contribution of Chinese caterpillar fungus to the household income, quantified the extent of "Chinese caterpillar fungus dependence" among households with different economic and social characteristics, and assessed the role of cash income from the Chinese caterpillar fungus harvest in meeting various household needs including education, debt payments, and food security. Results show that Chinese caterpillar fungus income is the second largest contributor to the total household income after farm income with 21.1% contribution to the total household income and 53.3% to the total cash income. The contribution of Chinese caterpillar fungus income to total household income decreases as the household income increases making its contribution highest for the poorest households. There is significant correlation between Chinese caterpillar fungus dependency and percentage of family members involved in harvesting, number of food-sufficient months, and total income without Chinese caterpillar fungus income. Income from Chinese caterpillar fungus is helping the poorest to educate children, purchase food, and pay debts. However, reported decline of Chinese caterpillar fungus from its natural habitat might threaten local livelihoods that depend on the Chinese caterpillar fungus in future. Therefore, sustainable management of Chinese caterpillar fungus through partnership among local institutions and the state is critical in conserving the species and the sustained flow of benefits to local communities.

Measured daily precipitation sums over Central Sulawesi for the period 1981-1999

Data compiled within the IMPENSO project. The Impact of ENSO on Sustainable Water Management and the Decision-Making Community at a Rainforest Margin in Indonesia (IMPENSO), http://www.gwdg.de/~impenso, was a German-Indonesian research project (2003-2007) that has studied the impact of ENSO (El Nino-Southern Oscillation) on the water resources and the agricultural production in the PALU RIVER watershed in Central Sulawesi. ENSO is a climate variability that causes serious droughts in Indonesia and other countries of South-East Asia. The last ENSO event occurred in 1997. As in other regions, many farmers in Central Sulawesi suffered from reduced crop yields and lost their livestock. A better prediction of ENSO and the development of coping strategies would help local communities mitigate the impact of ENSO on rural livelihoods and food security. The IMPENSO project deals with the impact of the climate variability ENSO (El Niño Southern Oscillation) on water resource management and the local communities in the Palu River watershed of Central Sulawesi, Indonesia. The project consists of three interrelated sub-projects, which study the local and regional manifestation of ENSO using the Regional Climate Models REMO and GESIMA (Sub-project A), quantify the impact of ENSO on the availability of water for agriculture and other uses, using the distributed hydrological model WaSiM-ETH (Sub-project B), and analyze the socio-economic impact and the policy implications of ENSO on the basis of a production function analysis, a household vulnerability analysis, and a linear programming model (Sub-project C). The models used in the three sub-projects will be integrated to simulate joint scenarios that are defined in collaboration with local stakeholders and are relevant for the design of coping strategies.