Abstract :
Atauro Island, Timor-Leste, hosts globally significant marine biodiversity yet faces persistent socio-economic vulnerability, forming a “blue economy trap.” This study examines how customary governance (tara bandu), global value chain asymmetries, and gender inequities reinforce this paradox. Using mixed methods—interviews (n=35), focus groups (n=70), eight months of observation, and underwater surveys at 12 sites—we identify four mechanisms: (1) weak bargaining power in value chains (seaweed farmers capture 14–21% of export price; fishers 31–38%); (2) institutional fragility (Ostrom score 2.1/5); (3) ceremonial state recognition without legal or budgetary support; and (4) gender undervaluation (women contribute 70–80% of labor but control <30% of income). These dynamics decouple ecological wealth (coral cover 46–58%) from household well-being. Breaking the trap requires legal integration of tara bandu, investment in cold chains and transport, gender-transformative policies (income control, 30% representation, recognition of women’s ecological knowledge), transparent conservation fee distribution, and youth inclusion. Without such reforms, blue economy initiatives risk perpetuating coastal poverty.
