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Macroeconomics and Forest Sustainability in the Developing World


  • Sedjo, Roger

    () (Resources for the Future)


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, 2005. "Macroeconomics and Forest Sustainability in the Developing World," Discussion Papers dp-05-47, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-05-47

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    References listed on IDEAS

    1. Easterly, William, 2001. "The Effect of IMF and World Bank Programmes on Poverty," WIDER Working Paper Series 102, World Institute for Development Economic Research (UNU-WIDER).
    2. Edward B. Barbier, 1999. "The Effects of the Urugauy Round Tariff Reductions on the Forest Product Trade: A Partial Equilbrium Analysis," The World Economy, Wiley Blackwell, vol. 22(1), pages 87-115, January.
    3. Sedjo, Roger & Simpson, R. David, 1999. "Tariff Liberalization, Wood Trade Flows, and Global Forests," Discussion Papers dp-00-05, Resources For the Future.
    4. 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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    forests; sustainability; macroeconomics; trade; exchange rates; structural adjustment;

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