Human Threats to Rainforests—Economic Restructuring

Imperiled Riches—Threatened Rainforests

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.

Review questions:

How does globalization affect deforestation?

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Continued: Oil Extraction

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