THE AMAZON RAIN-FOREST, SUSTAINABLE DEVELOPMENT AND THE BIODIVERSITY CONVENTION - A POLITICAL-ECONOMY PERSPECTIVE

This paper argues that deforestation in the Amazon rain forest is the result of the interaction of a domestic structural factor as well as m acroeconomic disequilibria in the Brazilian economy. The structural fe ature is the Brazilian land-tenure system, whereas the macroeconomic f actors are chronic inflation, and the trade and the foreign debt of Br azil. We show that deforestation is due to circular causation; inflati on leads to deforestation and land enclosures, which lead to the expul sion of peasants from the enclosed lands, with further deforestation. Furthermore, Brazilian international trade follows the demand patterns established by world markets, which put added pressures on the forest s. We also argue that the extractive reserves and other extractive-bas ed solutions are not viable in the long run. Finally, we show that the Convention on Biological Diversify is necessary but not sufficient to ensure sustainable use of Amazon biological resources.