Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Sustainable use of tropical forest systems requires continuous monitoring of biological diversity and ecosystem functions. This can be efficiently done with 'early warning' (short-cycle) indicator groups of non-economical insects, whose population levels and resources are readily measured. Twenty-one groups of insects are evaluated as focal indicator taxa for rapid assessment of changes in Neotropical forest systems. Composite environmental indices for heterogeneity, richness, and natural disturbance are correlated positively with butterfly diversity in 56 Neotropical sites studied over many years. Various components of alpha, beta and gamma-diversity show typical responses to increased disturbance and different land-use regimes. Diversity often increases with disturbance near or below natural levels, but some sensitive species and genes are eliminated at very low levels of interference. Agricultural and silvicultural mosaics with over 30% conversion, including selective logging of three or more large trees per hectare, show shifts in species composition with irreversible loss of many components of the butterfly community, indicating non-sustainable land and resource use and reduction of future options. Monitoring of several insect indicator groups by local residents in a species-rich Brazilian Amazon extractive reserve has helped suggest guidelines for ecologically, economically, and socially sustainable zoning and use regimes.112542Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Conselho Nacional de SeringueirosUNICAMPMacArthur FoundationCentro Nacional das Populacoes Tradicionais (IBAMA)BSP/WWF/USAIDCIFORFundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)