Preparation of cloves in Madagascar. (Photo by R. Butler)
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SUSTAINABLE USE OF LARGE-SCALE FOREST PRODUCTS
By Rhett Butler | Last updated July 22, 2012
More than half of rainforest deforestation today is caused by commercial interests: logging, cattle ranching, industrial agriculture,
mining, power generation and energy production. With few exceptions, these activities degrade the long-term health of rainforest ecosystems and, in so doing, deplete natural assets.
Historically natural capital loss was rarely accounted. Today that is changing to a degree, but in many countries environmental degradation is still a secondary or tertiary factor in land use decisions. As such, tropical governments often subsidize short-term gains with little thought to the long-term consequences — natural resources are mined without consideration of future harvests.
In promoting raw resource extraction over stewardship of their unique natural assets, governments may be ignoring the best path for future economic growth. Wealth collected from extractive industries—essentially rent earned not from hard work or ingenuity, but from the particular qualities of the land—is not necessarily a solid foundation for an economy. Leveraging natural assets, like traditional knowledge, biodiversity and services afforded by ecosystems, can contribute to the long-term health of an economy, spurring the development of new technology and industries.
The Corporate Sector
Saving rainforests will hinge partly on finding ways for companies to remain profitable without devastating the environment. If we value forests, these industries will need to provide jobs that save the environment and not destroy it. We cannot reasonably expect local people to shun employment with these companies if they are the only form of work available to feed, house, and clothe their families.
There are many challenges facing industries that exploit forest resources, and difficult decisions and compromises
will have to be made. These challenges stem from the differing opinions of the value of forest products and the
services that forests provide. Developers must find a means to satisfy the growing demand for forest products and
resources, while protecting forests and the environmental services they provide.
Review questions:
- Why is it important to promote sustainable use of forest resources?
- Why are extractive industries like logging generally not the best for long-term economic growth?
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WEEKLY NEWSLETTER
INTERACT
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Recent news
Indigenous groups protest hydropower congress as controversy hits meeting in Malaysia
(05/22/2013) The opening of the International Hydropower Association (IHA) World Congress in the Malaysian state of Sarawak was marred today by indigenous protests and controversy after a local indigenous leader was barred from attending a pre-conference workshop. Over 300 people from local indigenous people protested the ongoing construction of around a dozen mega-dams in the state that threaten to flood traditional lands, force villages to move, and upend lives in the state. The Sarawak hydropower plans are some of the most controversial in the world—making the choice of Kuching, Sarawak for the IHA meeting an arguably ironic one—with critics contending that the dams are have been mired in political corruption, including kickbacks and bribes. IHA brings together dam builders, banks, and various related organizations worldwide every two years.
NGO: conflict of interests behind Peruvian highway proposal in the Amazon
(05/16/2013) As Peru's legislature debates the merits of building the Purús highway through the Amazon rainforest, a new report by Global Witness alleges that the project has been aggressively pushed by those with a financial stake in opening up the remote area to logging and mining. Roads built in the Amazon lead to spikes in deforestation, mining, poaching and other extractive activities as remote areas become suddenly accessible. The road in question would cut through parts of the Peruvian Amazon rich in biodiversity and home to indigenous tribes who have chosen to live in "voluntary isolation."
Analysis: Indonesia renews moratorium on logging, palm plantations
(05/16/2013) Indonesia’s President Susilo Bambang Yudhoyono made a bold and courageous decision this week to extend the country’s forest moratorium. With this decision, which aims to prevent new clearing of primary forests and peat lands for another two years, the government could help protect valuable forests and drive sustainable development.
What if companies actually had to compensate society for environmental destruction?
(04/29/2013) The environment is a public good. We all share and depend on clean water, a stable atmosphere, and abundant biodiversity for survival, not to mention health and societal well-being. But under our current global economy, industries can often destroy and pollute the environment—degrading public health and communities—without paying adequate compensation to the public good. Economists call this process "externalizing costs," i.e. the cost of environmental degradation in many cases is borne by society, instead of the companies that cause it. A new report from TEEB (The Economics of Ecosystems and Biodiversity), conducted by Trucost, highlights the scale of the problem: unpriced natural capital (i.e. that which is not taken into account by the global market) was worth $7.3 trillion in 2009, equal to 13 percent of that year's global economic output.
'Carbon bubble' could cause next global financial crisis
(04/22/2013) The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists. "The financial crisis has shown what happens when risks accumulate unnoticed," said Lord (Nicholas) Stern, a professor at the London School of Economics. He said the risk was "very big indeed" and that almost all investors and regulators were failing to address it.
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