OUTWARD ORIENTATION AND MARGINAL ENVIRONMENTS - THE QUESTION OF SUSTAINABLE DEVELOPMENT IN THE NORTE CHICO, CHILE

This paper attempts to investigate die tensions that presently exist b etween economic growth and the semi-arid, marginal environment of Chil e's Norte Chico valleys. During the 1970s and 1980s, Chilean economic policies have favored export-oriented growth. In some formerly depress ed rural regions that came to enjoy a comparative advantage in interna tional trade, a dramatic growth in export-oriented production has occu rred; one example is the table grape. However, this mountainous region can be classed as marginal, with low average rainfall, high annual ra infall variability, high rates of evaporation, a long-term decline in rainfall and the constraints on water supply that these signify, parti cularly in consecutive years of winter drought. This paper explores th e nature of these environmental constraints before examining the natur e of the dramatic growth in export-oriented agriculture and the main e conomic agents that explain this growth. An attempt is then made to as sess the impacts of export-oriented growth on the marginal environment of the Norte Chico, focusing in particular on the relationship betwee n land and water. Finally, a theoretical model is created in order to conceptualise the relationship between economic growth and environment al constraints in terms of sustainable development.