FACTORS DETERMINING LOW DEFORESTATION - THE BOLIVIAN AMAZON

Determinants of low deforestation in Bolivia are analyzed, based on th e Bolivian experience and general deforestation literature, and lesson s are drawn for other countries with low deforestation. Weak domestic demand for agricultural products and poor transportation infrastructur e are the principal causes of low deforestation. Weak domestic demand is related to small population and low per capita income, and poor tra nsportation infrastructure is a function of a country's low capacity f or investment in infrastructure and political factors. Production for export plays an important role in deforestation in these contexts, and is influenced by policies such as road building, appreciated exchange rates, and subsidies for commercial agriculture. Factors influencing land-clearing by poor families are less relevant. Political and instit utional factors deserve greater attention than they have received in p revious deforestation literature.