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Macroeconomics and Forest Sustainability in the Developing World

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  • Sedjo, Roger A.

Abstract

Governments often use fiscal, exchange rate, monetary policy as well as export promotion tax increases, privatization, and land reform as part of comprehensive adjustments packages for addressing economic imbalances, balance of payments, and structural weaknesses. Such approaches, however, have come under heavy criticism for failing to recognize the social and environmental costs associated with them. Critics have argued that economic growth, trade liberalization, and increased primary product exports increase pressure on many sectors, including the agricultural and forestry land use sectors. This paper examines a number of these types of external shocks. This paper makes two arguments. First, from a theoretical economic perspective, although in many cases structural adjustment programs can be expected to affect the domestic forest sector, in other cases they will not. Second, even when there is an impact on the forest, it need not be detrimental to environmental and ecosystem values. A sustainable forest system needs to provide wood, local environmental products and services, and global ecological services, but individual forests can specialize in some of these.

Suggested Citation

  • Sedjo, Roger A., 2005. "Macroeconomics and Forest Sustainability in the Developing World," Discussion Papers 10458, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10458
    DOI: 10.22004/ag.econ.10458
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    File URL: https://ageconsearch.umn.edu/record/10458/files/dp050047.pdf
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    References listed on IDEAS

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    1. Sedjo, Roger & Simpson, R. David, 1999. "Tariff Liberalization, Wood Trade Flows, and Global Forests," RFF Working Paper Series dp-00-05, Resources for the Future.
    2. Sedjo, Roger A. & Simpson, R. David, 1999. "Tariff Liberalization, Wood Trade Flows, and Global Forests," Discussion Papers 10557, Resources for the Future.
    3. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    4. William Easterly, 2001. "The Effect of IMF and World Bank Programmes on Poverty," WIDER Working Paper Series DP2001-102, World Institute for Development Economic Research (UNU-WIDER).
    5. Kant, Shashi, 2004. "Economics of sustainable forest management," Forest Policy and Economics, Elsevier, vol. 6(3-4), pages 197-203, June.
    6. Pandey, Kiran D. & Wheeler, David, 2001. "Structural adjustment and forest resources - the impact of World Bank operations," Policy Research Working Paper Series 2584, The World Bank.
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    Cited by:

    1. Victor N. Cheo, 2011. "Criteria and indicators of forest sustainability assessment for Cameroon," Environment Systems and Decisions, Springer, vol. 31(3), pages 299-307, September.

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