This report seeks to help policy makers, especially in the developing world, to identify, evaluate and apply economic instruments to address a country's environmental problems within its national and local circumstances. It presents an innovative approach by offering tools for a comprehensive assessment of the country context and conditions and by tailoring solutions to the specific country needs. The report also provides practical guidance on identifying when economic instruments may be most appropriate, and on strengthening the support framework needed to introduce them.

This report presents the GIWA assessment of the Small Islands sub-system of the Caribbean Sea region - an area particularly vulnerable to human activities owing to the fragility of the island ecosystems and their limited carrying capacities. Habitat and community modification, as a result of anthropogenic pressures, was found to cause the most severe transboundary environmental and socio-economic impacts in the sub-system. The governments regard rapid economic growth as a priority, which they have failed to balance with the conservation and protection of important ecosystems. The Causal chain analysis discusses the root causes of habitat and community modification by investigating the cause-effect pathways of the concern. Policy options are proposed that aim to provide solutions to these fundamental issues, in order to enhance the management of the region's aquatic environment