Structural adjustment and forest resources - the impact of World Bank operations
Over two decades, the World Bank has undertaken many structural adjustment operations withgovernments of developing countries. During negotiations for structural adjustment loans (SALs), partner governments agree to specific policy reforms, whose implementation becomes a condition for disbursement of SAL funds. Conditionality varies with local circumstances, but generally supports privatization of state enterprises, liberalization of the domestic economy, and openness in international trade. Structural adjustment operations have often been controversial because they are explicitly political. Opposition, or support reflects ideological perspectives, perceptions of who gains, and who loses economically from a SAL, or beliefs about its environmental, and social impacts. Environmental groups express particular concern about SALs'impacts on the rate of deforestation. Debate about adjustment, and deforestation has been fueled largely by anecdotes, and a few country cases bases on limited time-series data. The authors broaden the analysis by combining a complete record of Bank SAL operations, with a 38-year socioeconomic database for 112 developing countries. They find that adjustment has greatly affected imports, exports, consumption, and production in many forest products sectors (such as fuel-wood, sawn-wood, panels, pulp, and paper). Some activities have increased, and some declined, but overall, the effects have balanced each other. The net impact on domestic round-wood production, the authors'proxy for forest exploitation, has been almost exactly zero. Their results suggest that growth in round-wood production is explained well by population growth, urbanization, and world demand for forest products. Their findings suggest that adjustment has not promoted domestic deforestation, but it has increased net imports of wood products, implying some displacement of pressure onto other countries'forest resources. They also find that devaluations have significantly increased the exploitation of forest resources.
|Date of creation:||30 Apr 2001|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Costanza, Robert, 1996. "The impact of ecological economics," Ecological Economics, Elsevier, vol. 19(1), pages 1-2, October.
- Glomsr D, Solveig & Monge, Maria Dolores & Vennemo, Haakon, 1999.
"Structural adjustment and deforestation in Nicaragua,"
Environment and Development Economics,
Cambridge University Press, vol. 4(01), pages 19-43, February.
- Solveig Glomsrød & Maria Dolores Monge A. & Haakon Vennemo, 1997. "Structural Adjustments and Deforestation in Nicaragua," Discussion Papers 193, Statistics Norway, Research Department.
- Angelsen, A. & Shitindi, E.F.K. & Aarrestad, J., 1999.
"Why do Farmers Expand their Land into Forests? Theories and Evidence from Tanzania,"
Norway; Department of Economics, University of Bergen
197, Department of Economics, University of Bergen.
- Angelsen, Arild & Shitindi, Eric F. Katemansimba & Aarrestad, Jostein, 1999. "Why do farmers expand their land into forests? Theories and evidence from Tanzania," Environment and Development Economics, Cambridge University Press, vol. 4(03), pages 313-331, July.
- Persson, Annika & Munasinghe, Mohan, 1995. "Natural Resource Management and Economywide Policies in Costa Rica: A Computable General Equilibrium (CGE) Modeling Approach," World Bank Economic Review, World Bank Group, vol. 9(2), pages 259-85, May.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2584. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.