Appeared in Aquaculture Research (1997) 28:815-827.

Farmd shrimps contribued 27% of total wold shrimp production in 1995 with a volume of 712,000 tonnes ('metric tonnes,'t). Undoubtedly, the shrimp culture industry earns valuable forign exchange for deveoping countries and generates jobs actoss the industry from fry gatherers to growers and processors. Howeve, 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; unemployment and unban migration; and social conflicts - have followed in the wake of shrimp farm development in the phlippinens and other tropical countries. The paper focuses on mangrove ecosystems; the valuation and cost-benefit analysis of their goods and sevices and the mangrove-offshore fisheries connection. Research gaps in these areas and the need to internalize the ecological and socio-economic cost ('ezternalities') of shrimp farming are highlighted. Other recommendations include mangrove consevation and rehabilitation, enforcement of exsisting legislation, and introduction of environment-friendly aquaculture within the broader framework of community-based, integrated coastal area management, eg the traditional, extensive polyculture punds in Indonesia.