The Political-Economy of Forests

Flashcards covering the political-economy of forests, critically examining ecological modernization, ecologically unequal exchange, and the role of international financial institutions like the World Bank and IFC in forest loss, particularly in Brazil and Cameroon.

What is a main criticism of ecological modernization theory regarding forest loss?

It fails to account for the 'externalizing' or 'outsourcing' of forest loss by high-income nations.

According to the notes, what was observed between Brazilian cattle exports to the European Union and Brazilian forest loss between 2000 and 2004?

Both Brazilian cattle exports to the EU and Brazilian forest loss significantly increased during this period.

How does 'Ecologically Unequal Exchange' describe the relationship between agricultural and manufactured products?

It states that prices of agricultural commodities tend to fall against manufactured products from high-income nations, requiring more agricultural exports to buy manufactured/service imports.

What impact does Ecologically Unequal Exchange have on forest loss in low- and middle-income nations?

Forest loss increases in these nations as they expand exports just to maintain their levels of manufactured/service imports.

What are the three main components of Structural Adjustment Lending that facilitate Ecologically Unequal Exchange?

Increase exports, liberalize trade, and cut government spending.

What was the consequence of budgetary shortfalls for forest protection in Brazil, according to the notes?

Only $19 million out of $32 million allocated for forest protection could be spent, contributing to an estimated 80% of logging being illegal and accelerating forest destruction.

How did liberalizing trade impact Cameroon's forests?

Cameroon was required to cut export taxes on wood, making logging more profitable for foreign companies, leading to an increase in logging companies, foreign control of concessions, and significant annual forest loss.

Beyond structural adjustment, what other methods does the World Bank use that can contribute to forest loss?

Project lending and International Finance Corporation lending.

What was the purpose and outcome of a $365 million World Bank loan to Brazil in the early 1980s?

It financed an iron ore mine, smelters, and a 550-mile railway to 'develop' the Amazon, which by 1987 resulted in 579 square miles of forest being cleared annually to fuel the smelters with charcoal.

What is the primary function of the International Finance Corporation (IFC)?

It loans directly to companies and offers discounted risk insurance.

How did an IFC loan to Amaggi Exportai e Importai Limitada contribute to forest loss in Brazil?

The $30 million loan, combined with additional commercial bank funding, supported increased soy exports (mainly for European cattle feed), provided low-interest loans to soy farmers, and funded the construction of the BR-163 road, which led to the clearance of 10 million hectares of forest.