Links between economic liberalization and rural resource degradation in the developing regions

This paper examines evidence of the effects of economic liberalization and globalization on rural resource degradation in developing countries. The pr incipal resource effects of concern are processes of land use change leadin g to forestland conversion, degradation and di forestation. The main trends in globalization of interest are trade liberalization and economy-wide ref orms in developing countries that have 'opened up' the agroindustrial secto rs, thus increasing their export-orientation. Such reforms have clearly spu r red agroindustrialization. rural development and economic growth, but the re is also concern that there may be direct and indirect impacts on rural r esource degradation. The direct impacts may occur as increased agricultural activity leads to conversion of forests and increased land degradation fro m 'unsustainable' production methods. However, there may also be indirect e ffects if agroindustrial development displaces landless, near-landless and rural poor generally, who then migrate to marginal agricultural lands and f orest frontier regions. This paper explores these direct and indirect effec ts of globalization and agroindustrialization on rural resource degradation both generally, plus through examining case study evidence. The paper focu ses in particular on the examples of structural adjustment, trade liberaliz ation and agricultural development in Ghana, and maize sector liberalizatio n in Mexico under North American Free Trade Agreement (NAFTA). (C) 2000 Els evier Science B.V. All rights reserved, JEL classification: O1; Q0.