Ruth Terrell Global Marketplace BUS 7720

Question: Developing nations put significant demands on natural resources as they strive to achieve sustained growth and prosperity. The developed economies do as well. Global population is increasing foreshadowing even greater demands on primary resources. What are the factors in play in this scenario and what are the obligations of the developed nations of the world to enable growth while working to manage resource depletion? Introduction Why governments waste natural resources? W hy governments waste natural resources and what can be done about it? The problem of unsound natural resource exploitation occurs in both developed and undeveloped countries. Many rich countries, including the United States, have wasted natural resources and continue to do so; pastures erode from over gazing, soils become contaminated, and forests are leveled, often without offsetting the benefits for society. These countries whether in Asia, Latin America or Africa, depend heavenly on the resource base to stimulate economic growth, to provide livelihood for low-income people, and to maintain the environment. It may even sound peculiar to some individuals that natural resources would even require attention, mainly due to the technology age. Otherwise known as the high tech era, the information age or the postindustrial society. The production of physical goods are supposed to be less important than providing greater efficiency and miniaturization is suppose to reduce the demands of raw materials. But quite the opposite is true. Despite all the predictions that the need for natural resources would recede because of the technological age, our industrial and agricultural bases are still rooted in raw materials. Most importantly, due to population growth and increased incomes, the demand for manufactured goods and services, food, housing and energy all continue to soar. Because the stakes are so high and the resource policy failures in developing countries are often extreme, we should be able to detect by now the dynamics that lead governments to squander natural resources. The countries below have developed a decade of governmental research on forestry, oil, mining, etc. Agriculture, Irrigation, Forestry and Land Brazil (amazon, and,forest) Cameroon (land, forests, and parks) Costa Rica (land and timber) Ghana (cocoa) Honduras (timber) Indonesia (timber) Mexico (irrigation) Oil & Mining Chile (cooper) India (copper) Indonesia (oil) Mexico (oil) Nigeria (oil) Peru (oil) Venezuela (oil)

The above list by no means is a random sample; it simply reflects a suggestion to look at the above resources for each country and if I were to research all of the countries I think the waste and degradation of the above natural resources in these countries can most

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commonly be traced directly to government policy failures. These failures cause resources depletion that cannot be justified by the societal gains achieved by such depletion. For example, as forests disappear, petroleum and minerals are squandered; land erodes, water systems deteriate, and wildlife becomes scarce; we can almost look to a faulty government policy lurking in the background. There are certainly several developing countries by which we can explore natural resources however for the purpose of my paper I will present findings on the BRIC country, Brazil and the natural resource of the Amazon Forest and the deforestation. Hopefully my paper will prove the above and also provide other factors that play in the scenario of how the global populous continues to put even greater demand on natural resources and what developed nations can do to assist with this problem while working to manage resource depletion.

Brazil and the Deforestation of the Amazon Forrest Brazil is the largest country in South America, and also is the fifth largest country in the world after Russia, Canada, China and the United States based on population of over 190 million, and also by the geographical area with a total area of 8,514,876.599 km2 (3,287,612 sq. mi), including 55,455 km2 (21,411 sq. mi) of water and it spans three time zones. Brazil once had the highest deforestation rate in the world and as of 2005 still has the largest area of forest that is removed annually. Since 1970, over 600,000 square kilometers (230,000 sq. mi) of Amazon rainforest has been destroyed. In 2012, the Amazon was approximately 5.4 million square kilometers, which is only 87% of the Amazons original state. Rainforests has decreased in size primarily due to deforestation. Despite reductions in the rate of deforestation in the last ten years, the Amazon Rainforest will be reduced by 40% by 2030 at the current rate. Between May 2000 and August 2006, Brazil lost nearly 150,000 square kilometers of forest, an area larger than that of Greece. The depletion of rainforests has demanded the attention of policy makers in the 1980s and 90s. Initial concern about extinction of species has been joined by alarm about possible future global warming caused by atmospheric accumulation of greenhouse gases such as the carbon dioxide released by deforestation. Policy makers must understand the effects of the full set of potential drivers of deforestation if they are to respond appropriately to such concerns. However, important questions remain about why rainforests are being cut down and whether public policies can affect the rate at which deforestation takes place. It is these questions that this paper seeks to address. Despite the attention given to Amazon rainforest depletion, over 80% of this rainforest

remains. Thus, these questions are not of merely historical interest. Rather, their answers should inform policies which will significantly affect the global stock of rainforests. In Brazil, the deforestation of the Amazon rainforest is a very big issue. The

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deforestation of the Amazon seems to be necessary to economic development in Brazil. Along with this, sadly the Amazon rainforest is being demolished at an alarming rate and is causing major environmental issues including loss of bio-diversity, decreased hardwoods, world climate change and many others. To the indigenous people, the Amazon is a source of incalculable water, carbon sequestering, and it is very bio-diverse. When it is being deforested then all of the resources that it provides get smaller and smaller until there is eventually going to be nothing left. During the past 40 years, close to 20 percent of the Amazon rain f orest has been cut down, more than in all the previous 450 years since European colonization began. This fact should help you realize the mass of rainforest that is being cut down. (Wallace) Deforestation certainly comes with a price- the environment. Brazil is loosing precious hardwoods, bio-diversity and soil everyday but the largest problem continues to be carbon emissions. Deforestation, a critical contributor to climate change, effectively accounts for 20 percent of the worlds carbon dioxide emissions and 70 percent of the emissions in Brazil. Halting new deforestation, experts say, is as powerful a way to combat warming as closing the worlds coal plants. (New York Times, 2009) Brazil's environment is being destroyed by deforestation and the global environment is being effected just as bad. How does Brazil use their natural resources to sustain growth and prosperity? The deforestation of the Amazon rainforest is directly connected to the overall economic development of Brazil. Brazils economy depends on the rainforest for medicines, hardwoods, fruits and nuts, food and other resources that are collected and exported all over the world. The logging industry is one of the largest reasons that Brazils forests are being destroyed. The loggers and miners represent the group that receives the most blame of exploiting the land. Imaging, if you will, a bulldozer driving down trees with reckless abandon in the lush forest. Not only is the logger tearing down trees, but he is also tearing down an invisible wall that separates the peaceful paradise of the jungle and the modern materialistic world. The purpose of the loggers is not to destroy every tree standing in their path and cash in on it, rather, the loggers appear to be a picky breed. They are selective in the kind of trees they want. They prefer the hardwood trees such as the balsa tree and huaca tree. In the effort to attain these few types of trees, the loggers do more damage than needed. Amazonian timbering typically extracts one tree per hectare [2.4 acres], but it does so with enormous damage. As loggers move in with roads and skidders, they kill or damage more than 52% of those trees that remain. Thus, it is not so much the logging itself that depletes the forests, but

the process of logging. The process leaves these forests vulnerable to fires and ruins their chances of spreading seeds and sprouts because they are missing the crucial elements around them and their delicate ecosystem has been altered. The wood form logging is being collected and shipped off around the world, helping the Brazilian economy grow and become part of a global market. Huge majestic trees like the Samauma, also known as the "Queen of the Forest", are being exploited to make cheap plywood for construction industries in the US, Japan and in Europe. (Logging in

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the Amazon, 2005) this is just one example of the many uses of the wood collected from the Amazon. Miners come in after the loggers to further strip the land of valuable resources such as gold and other minerals. Mining also carries with it it's own ecological problems. For example, while mining, many of the deposits are returned to the river, like mercury for example. These rivers have become poisoned and polluted in certain areas, killing fish and exposing those that live off the river to diseases of which there is no immunity to and once exposed, survival rate is low. Along with logging and mining, another economic reason the Amazon is being destroyed is for cattle farming (beef industry). The forest is being rapidly cleared to make more room for pastures for cattle to graze. "Between 1990 and 2001 the percentage of Europe's processed meat imports that came from Brazil rose from 40 to 74 percent" and by 2003 "for the first time ever, the growth in Brazilian cattle production80 percent of which was in the Amazonwas largely export driven. (Butler) And more cattle means more deforestation. But it is also a huge income source for Brazil and a main factor in their economic growth. Brazilian deforestation is strongly correlated to the economic health of the country: the decline in deforestation from 1988-1991 nicely matched the economic slowdown during the same period, while the rocketing rate of deforestation from 1993-1998 paralleled Brazil's period of rapid economic growth. (Butler) This clearly shows how directly correlated the deforestation of the Amazon is with the economic development of Brazil. Hopefully I have shed some light on the major connection between the deforestation of the Amazon and Brazils environment and economic growth. As mentioned earlier, the deforestation is constantly changing Brazils environment. The loss of bio-diversity, hardwoods, and the constant carbon emissions coming out of Brazil are going to keep on growing affecting the entire world. Although the deforestation of the Amazon is not good for the environment it directly impacts Brazils economic development by providing a source of income and trade partners through major industries such as logging and cattle farming.

This brings me to the next issue contributing to the destruction to the rainforest, agriculture. Unlike the upper Midwest and the plains where the land is suitable for raising crops, such is not the case when trying to grow crops from converting rainforests. A common misconception could be that the land that is able to sustain such lush forests should surely be able to handle a couple acres of corn or beans. I would have thought that too had I not researched this topic. In fact, this couldn't be further from the truth. Raising crops in the Amazon is vastly different than how we do it in North America. Brazilian farmers us a method called slash and burn agriculture. The basic definition on the process of slashing and burning, "The forest lot is cleared, first by cutting the vines, shrubs, and saplings. Then by cutting the canopy trees with machetes or chainsaws. Vegetation is left to dry and then burned." (Gradwohl) Planting takes place before or shortly after the burn process to take advantage of the rich nutrients left from the fire. Normally after the first crop, the plots nutrients begin to decline. Apparently corn and other crops are unable to hold onto the nutrients

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that were so crucial to the forest. This may be because of the humid conditions provided from the rainforest, along with the shade provided by the canopy trees that kept the soil tempered. However, without the shade and the roots to sustain the soil, erosion would wash what little nutrients remained away. This leaves a bare plot that's not very useful for anything anymore. Slash and burn agriculture in essence ruins the very delicate ecosystem that promoted growth in that area. Something as simple as opening up an area to direct sunlight throws the balance out of whack. Because the soils are left less fertile, the farmers must slash and burn new lands to raise more crops. This is a continuing process that's repeated over and over again, leaving behind it a deadly trail of unprotected land causing more problems that it's worth. For example, soil erosion into the rivers. This makes once clear waters muddy and murky from added silt deposits. Figures range on the extent of the damage of slash and burn techniques, but they fall in between 7 million and 20 million hectares each year. Over the course of a decade or more, this results in a major change in landscape and climate for what were once all tropical forests. How does the depletion of resources affect the current population? Slash and burn farming begets cattle grazing, logging begets mining, highways beget land development. It's never one thing, but the combination of many events that contributes to deforestation of the Amazon. So how does this venture into the heart of the Amazon affect those who are already there? It has serious consequences. It affects the lives and health of the tribes, which is another great loss due to deforestation. The people of the forest possess amazing knowledge in using the plants, trees, and other resources around them to survive. They use these resources for all aspects of their lives, from healing, clothing, to feeding themselves and even to understand and predict the weather, magic taught by their ancestors. Some of Their methods may seem primitive to western standards, but their ways have become to be respected by scientists and conservationists.

Unfortunately, with each advance by those who bring destruction to the forests and disrupt the peaceful cultures within, for several reasons, this tribe's knowledge becomes increasingly threatened. Some tribes are forced from their ancestral homes and assimilated to Brazilian society, or they may die from the new diseases and violence carried in from outsiders, or sadly, the younger tribe members are ashamed of their culture; they've seen the new technologies outside the forest and become embarrassed by their simple life. "Students who leave villages to further their education learn that people, not the spirits of their ancestors, created the machines. Once absorbed, this realization undermines the credibility and authority of elders. (Linden) This type of condemnation was also done to the American Indians in the old west. For example, we extracted them from their homes, cut their hair, and pounded the bible into them (sometimes literally) as an attempt to assimilate them and destroy their heritage. Who knows what knowledge we would have today had we not alleviated the knowledge of the American Indian? Who knows what knowledge we may lose if we lose the indigenous culture in the Amazon? What is the role of countries to help enable growth and sustain their natural resource?

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What can be done to ease the problems in the Amazon? There have been numerous proposals made, too many to list them all, but I want to explore a few that I found to be interesting. There are many levels to ease the situation. At a worldwide level, "the population explosion must be reduced. Affluent nations must abandon their ethos of materialism, consumerism, and growth mania and altering people's lifestyles to be more environmentally conscious" (Sponsell). These also are a few steps that can be taken at a global level to ease the demands of the Amazon. Living in a consumerist society such as North American, where advertising and consumption are at all time highs, we have made this society into a throw-away' society. For example, currently awaiting shipment, there are warehouses full of Pokemon toys or Barbie dolls (probably made from rubber from Brazil) that are just waiting to be shipped for the upcoming holiday season. Millions of kids will receive theses toys as Christmas presents and then six months down the road, they'll be thrown aside for the next must have item. It's the nature of our society and it affects the world around us, including the Amazon. Education is also another way to curb the destruction of the Amazon. We mentioned earlier as the younger tribe members learn about the new technologies outside the forests, they will certainly become aware of new ways to save the forests. Additionally, if a conversationalist group would step in and educate the people of the Amazon about what is occurring around them, from a global perspective, although an enormous cultural change, a change never-the-less may and will occur over time.

Finally, the government of the countries where rainforests are located and threatened can also play a big part through legislation and programs. The government needs to regulate the influx of developers, miners, and loggers, and so on, into their forests. They can create policies that closely restrict recruiting guidelines for any incoming developers. Certainly, any change will not repair the damage that has already been done; only time can accomplish that maneuver. However, if we go about tapping the resources of the Amazon in a more efficient way, perhaps we can salvage enough of it to continue serving as the lungs to the world. It is certainly true that the ethics of balancing economic development against the noneconomic value of ecosystems remains a thorny problem. Yet the premise that government officials are at a loss to choose and implement better policies for forestry is unfounded to me. The primitive art of sustainable yield may not be able to gauge precisely how much resource can be extracted without risking future yields, but is certainly robust enough to identify the resource policies and practices that are unsustainable and guide officials to moderation when the level of sustainable yield is uncertain. Based on the research, I think the essential point is that many natural resources policies are clearly in error by government officials and outside observers. They are in error from the crucial sense that these policies do not protect natural resources that further societys welfare. This leads, of course, to the policy failure of just politics. This is equally dangerous and fortunately leads to a falsely simplistic view that implies that we should throw up our hands and dismiss sound resource use as hopeless as long as it remains in the hands of politicians Even if we concede that politics drive politicians, this should not mean that politics should call for bad policies. I believe the real challenge for

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the future will be to create conditions in which government leaders will gladly embrace both natural resource policies and conservation.

References: Butler, R. (n.d.). Deforestation in the Amazon. Retrieved 09, 2013, from http://www.mongabay.com/brazil.html Ascher, W. (1999, 11). Why Governments Waste natural Resources: Policy Failures in Developing Countries. Google Scholar. Retrieved 10, 2013 Butler, R. (2008, July 31). Future threats to the Amazon Rainforest. Retrieved 09, 2013, from http://news.mongabay.com/2008/0801-amazon.html Camill, P. (1999). The Deforestation of the Amazon: A case study in understanding ecosystems and their value. Retrieved 10, 2013, from http://library.buffalo.edu/libraries/projects/cases/amazon.html (2013, 11) Brazilian Deforestation. Wikipedia. Retrieved 10, 2013 Cimitile, M. (2009, January 9). Amazon Deforestation: Earth's heart and lungs dismembered. Live Science, Retrieved 10, 2013, from http://www.livescience.com/3201 amazon-deforestation-earth-heart-lungs-dismembered.html Frey, E. (2002). Tropical Deforestation in the Amazon: An economic analysis of Rondonia, Brazil. Issues in Political Economy, 11, Retrieved 09, 2013, from http://org.elon.edu/ipe/frey1.pdf Rosenthal, E. (2009, August 21). In Brazil, paying farmers to let the trees stand. New York Times. Retrieved 09, 2013, from http://www.nytimes.com/2009/08/22/science/earth/22degrees.html

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(1988). Saving the Tropical Forests (ed., Vol.18, pp. 43-45). Washington DC. Gradwhol, Judith & Russel Greenberg. Linden, E. (1990, 07). Paradise Lost. Time, 50-51. Shukla, J., Nobre, C. & Sellers, P. (1991, April 29). Amazonian deforestation and regional climate change Journal of Climate, 4, 957-988. Retrieved 09, 2013, from http://weatherdata.org/people/Shukla's Articles/1991/Amazonian.PDF Wallace, S. (n.d.). Farming the amazon. Retrieved 10, 2013, from http://environment.nationalgeographic.com/environment/habitats/last-of-amazon/ Hornaday, Anne. (09, 1993) "Earth's Threatened Resources." Congressional Quarterly, 28-29