TROPICAL RAINFORESTS: Imperiled Riches—Threatened Rainforests
 Home
 What's New
 About
 Rainforests
   Mission
   Introduction
   Characteristics
   Biodiversity
   The Canopy
   Forest Floor
   Forest Waters
   Indigenous People
   Deforestation
   Consequences
   Saving Rainforests
   Amazon rainforest
   Borneo rainforest
   Congo rainforest
   Country Profiles
   Statistics
   Works Cited
   For Kids
   For Teachers
   Photos/Images
   Expert Interviews
   Rainforest News
  Forest data
   Global deforestation
   Tropical deforestation
   By country
   Deforestation charts
   Regional forest data
   Deforestation drivers
 XML Feeds
 Other Languages
   Chinese
   French
   German
   Japanese
   Portuguese
   Spanish
 Pictures
 Books
 Links
 Newsletter
 Education
 Mongabay Sites
   Kids' site
   Travel Tips
   Tropical Fish
   Madagascar
 Contact



About this site
Providing tropical forest news, statistics, photos, and information, rainforests.mongabay.com is the world's most popular rainforest site. [more]



Weekly Newsletter
Enter your email:
Mongabay will never distribute your email address or send spam.





Share

Farmhouse in the rain forest of Peru. (Photo by R. Butler)

ECONOMIC RESTRUCTURING

In recent years economic globalization has brought about profound changes in countries around the world. Generally there has been a trend of decentralizing government and reducing the role that government plays in the everyday life of its citizens. In developing countries, this shift has put a greater strain on forest resources which have customarily been treated as state property. Whether determined by a market economy or dictated by a command economy, management of forest land has been the responsibility of public forest services. Forest exploitation firms have dealt through these bureaucracies, which generally ensure some sort of control over the allocation of forest lands.

Today the governments of many developing countries have decentralized their control over the forestry sector and privatized many of the state-owned forest industries. The budgets of national forest services have been reduced and management has been transferred to local governments, private firms, and organizations, and NGOs. This transfer brings decision making closer to the local level where policy can be more responsive to local conditions, but also forces the government to forgo much of its control over forest exploiters. The lack of government supervision means that private firms have more free rein and can work to maximize efficiency, even if it means cutting corners like compliance with government environmental legislation. Examples can be found with timber concessions in Guyana, Suriname, Papua New Guinea, Belize, Malaysia, Indonesia, and the Solomon Islands. The localization of decision making and law enforcement also make it easier for corporations to bribe local officials.

Additionally the privatization of land under decentralization causes conflicts between the purchasers of land and the traditional, flexible land use by indigenous groups and local peoples. Tensions invariably arise, sometimes leading to violence and armed conflicts.

Even with some negative impacts, government decentralization is not inherently bad and remains an important means for keeping a dynamic economy. In fact, government decentralization may offer unparalleled gains over government bureaucracy in safeguarding rainforests. However, the means by which decentralization progresses can be adapted to compromise for the needs of the ecological system, private firms, local peoples, indigenous peoples, and the government. Economic restructuring caused by globalization has more or less resulted in an increase in concessions to foreign firms on rainforest lands. The largest concessions granted to foreign companies are to the oil, timber, and mineral industries.


More on globalization and rainforests
Review questions:
  • How does globalization affect deforestation?

[print version | spanish | french | portuguese | chinese | japanese]


Continued: Oil Extraction


This article was written by Rhett A. Butler [bibliographic citation for this page] and was last updated on the most recent date listed in the column on the right side.




Other pages in this section:
A World Imperilled
Threats from Humankind
Economic Restructuring
Logging
Fires
Commercial Agriculture
Hydro, Pollution, Hunting
Debt
Consumption, Conclusion
- - - - -
References
References
References
References
References
Natural forces
Subsistence Activities
Oil Extraction
Mining
War
Cattle Pasture
Fuelwood, Roads, Climate
Population & Poverty

- - - - -
Kids version of this section
- Why are rainforests disappearing?
- Logging
- Agriculture
- Cattle
- Roads
- Poverty




Recent news

Fossil fuel subsidies "bringing us closer to irreversible climate change"
(11/06/2009) The Green Economy Coalition is urging G20 finance ministers to rapidly put an end to fossil fuel subsidies. In a letter to the ministers the coalition argues that these subsidies are contributing directly to climate change and making it difficult for the world to transition to a greener economy.


Crisis averted for now, Peruvian natives will meet with Hunt Oil
(10/28/2009) Indigenous groups in a dispute with Hunt Oil, over the company performing seismic tests their land, have scheduled a meeting with the Texas based oil corporation, according to Reuters.


Will Ecuador's plan to raise money for not drilling oil in the Amazon succeed?
(10/27/2009) Ecuador's Yasuni National Park is full of wealth: it is one of the richest places on earth in terms of biodiversity; it is home to the indigenous Waorani people, as well as several uncontacted tribes; and the park's forest and soil provides a massive carbon sink. However, Yasuni National Park also sits on wealth of a different kind: one billion barrels of oil remain locked under the pristine rainforest.


Amazonian natives say they will defend tribal lands from Hunt Oil with "their lives"
(10/25/2009) Indigenous natives in the Amazon are headed to the town of Salvacion in Peru with a plan to forcibly remove the Texas-based Hunt Oil company from their land as early as today. Peruvian police forces, numbering in the hundreds, are said to be waiting in the town. The crisis has risen over an area known as Lot 76, or the Amarakaeri Communal Reserve. The 400,000 hectare reserve was created in 2002 to protect the flora and fauna of the area, as well as to safeguard watersheds of particular importance to indigenous groups in the region.


US subsidies of oil and coal more than double the subsidies of renewable energy
(09/21/2009) During the fiscal years of 2002-2008 the United States handed out subsidies to fossil fuel industries to a tune of 72 billion dollars, while renewable energy subsidies, during the same period, reached 29 billion dollars.



More news on oil


More rainforest news
what's new | rainforests home | for kids | help | madagascar | search | about | languages | contact



Copyright Rhett Butler 1994-2009

"Rainforest" is used interchangeably with "rain forest" on this site. "Jungle" is generally not used.