Download Report - Independent Evaluation Group - World Bank

Brazil: Forests in the Balance
In addition to a policy environment that encourages development in
the Amazon, an insufficiently targeted and unclear regulatory environment
and lax enforcement of restrictions governing logging have long
served as strong disincentives against more ecologically sound logging
practices. Indeed, over 80 percent of logging in the Brazilian Amazon is
illegal. Brazil’s thriving plantation forest industry can relieve pressure
on the country’s natural forests only when access to natural forests is
restricted through careful policymaking, road planning, and enforcement
of forest regulations.
The Brazilian government has recently shown signs of taking a stronger
stance on enforcement 11 and has become increasingly sensitive to
ecological issues concerning development of the Amazon’s resources,
reversing or eliminating many of the policies and programs contributing
to deforestation and taking important steps to increase forest protection.
Nevertheless, the government continues to view the Amazon as
an opportunity for economic growth that can aid in its fight against
poverty. As a result, current government efforts, such as the “Brazil in
Action” plan, 12 which includes significant road building in the Amazon,
will continue to threaten the region’s forests. Many of these investments
in transportation are undertaken with little or no consultation
with the Ministry of Environment, in much the same way that agricultural
expansion generally involves little attention to the issues of zoning
called for by the Bank’s 1991 Forest Strategy, an activity from which
the Bank has learned valuable lessons (box 4.1). Trade liberalization
and a devalued currency have already driven increased exports of primary
products, including soybeans, whose production is rapidly expanding
into the Amazon, adding to pressure on the forests. Thus, the
situation appears to be stacked against Brazil’s forests from all sides.
While changes in policy might be expected to reduce pressure on the
Amazon, background papers for this study (Carpentier et al. 1999 and
Sonda 1999) found that the dynamics of farm-level decision-making
cast doubt on the efficacy of current approaches. These studies are discussed
below in the section on agricultural expansion.
Forest Regulation
Brazil’s forest sector is extensively regulated, both upstream and downstream.
Regulations governing the exploitation of natural forests generally
fall into six areas: environmental impact assessments, burning and
clearing permits, property-specific cutting restrictions, geography-specific
cutting restrictions, forest management requirements, and restric-
20