This paper describes one of the central issues in the management of natural resources, the predator and people conflicts. A case study drawn from Nepal was used to describe who the stakeholders are. Their arguments, interests and objectives on the conservation area were presented. Often local people near the protected areas are treated as co-managers in the new paradigm of conservation strategies, participatory approaches. This approach seems to be good in the management of biodiversity where local people could realise that the protected areas are created for their own benefit so that they are directly involved in the management as one of the stakeholders. The management practices in different parts of the world are different and context specific, which is explained by comparing the case study with Norway. Biodiversity conservation is regarded as a complex policy field using different instruments, e.g., legal and economic for its success. Presently, there is increased interest in the use of economic instruments. In view of this, the possibilities and implications of economic instruments in biodiversity management in relation to power use, responses, conflicts and criteria of efficiency and legitimacy have been described in this paper. Finally, Cost Benefit Approach was discussed in relation to how it could be used to analyse the efficiency of a policy instrument such as legal ban on alternative uses of substantial tracts of land.