Combining debt reduction with halting deforestation seems to be an attractive way of solving two urgent global problems at the same time at hardly any cost. But this view may be overly optimistic. What are the advantages and the drawbacks of debt-for-nature swaps? Are there any better alternatives?

Zimbabwe has a wealth of natural resources and is rich in biodiversity. The national Government is trying to achieve private sector led economic growth and the challenge to pursue both economic development and sound environmental management at the same time appears clear. The objective of this...