The debt crisis of developing countries led to the widespread adoption of Structural
Adjustment Programs (SAPs) during the 1980s. This article examines the hypothesis
that heavy foreign debt causes a high rate of tropical deforestation mainly through
the clearing of forestland for agricultural expansion. The article also reviews the
possible causal links between debt, agricultural expansion and deforestation.
Empirical evidence from tropical developing countries indicates that debt and
deforestation are positively linked. The article concludes by suggesting that
reducing the debt burden of developing countries can widen the opportunities for
better environmental policies.
Angelsen, A.
,
Shitindi, E.F.K.
and
Aarrestad, J.
(1999)
‘Why Do Farmers Expand Their Land into Forests? –
Theories and Evidence from Tanzania’
, Environment and Development Economics4(3):
313–331
.
2.
Barbier, E.
,
Burgess, J.B.
and
Aylward, B.
(1994) ‘Deforestation: The Role of the
International Trade in Tropical Timber’, in
K. Brown
and
D. Pearce
(eds) The Causes of Tropical Deforestation, pp.
271–297.
London: UCL Press
.
3.
Coxhead, I.
and
Jayasuria, S.
(1994)
‘Technical Change in Agriculture and Land Degradation in
Developing Countries: A General Equilibrium Approach’
, Land Economics70(1):
20–37
.
4.
Culas, R.J.
(2003)
‘Impact of Credit Policy on Agricultural Expansion and Deforestation’
, Tropical Agricultural Research15:
276–287
.
5.
Deng, L.
and
Oshikoya, W.T.
(1991) ‘Structural Adjustment Programs in the
1980s: An Overview of the Performance of Restructuring
Economies’, in
L. Deng
,
M. Kostner
and
C. Young
(eds) Democratization and Structural Adjustment in Africa in the
1990s, pp. 21–30.
Madison: African Studies Program, University of Wisconsin
.
6.
FAO
(various years) Production Yearbook.
Rome: Food and Agricultural Organization
.
7.
FAO
(1992) Forest Resources Assessment-Tropical Countries,
Forestry Paper No. 112.
Rome: Food and Agricultural Organization
.
8.
FAO
(1997) State of the World's Forests.
Rome: Food and Agricultural Organization
.
Grossman, G.M.
and
Krueger, A.B.
(1995)
‘Economic Growth and the Environment’
, Quarterly Journal of Economics112:
353–378
.
11.
Holden, S.T.
(1997)
‘Adjustment Policies, Peasant Household Resource Allocation and
Deforestation in Northern Zambia: An Overview and Some Policy Conclusions’
, Forum for Development Studies1:
117–134
.
12.
Holden, S.T.
,
Hvoslef, H.
and
Sankhayan, P.
(1994) ‘Impact of Adjustment Policies on Peasants
and the Environment in Northern Zambia’, Ecology and Development
Paper No. 11,
Agricultural University of Norway
.
13.
Houghton, R.A.
(1993) ‘The Role of the World's Forest
in Global Warming’, in
K. Ramakrishna
and
G.M. Woodwell
(eds) The World Forests for the Future, pp.
21–58.
New Haven, CT: Yale University Press
.
14.
Kahn, J.R
and
McDonald, J.A.
(1995)
‘Third-World Debt and Tropical Deforestation’
, Ecological Economics12:
107–123
.
15.
Kaimowitz, D.
,
Thiele, G.
and
Pacheco, P.
(1996) ‘The Effects of Structural Adjustment on
Deforestation in Lowland Bolivia’, Mimeo,
Centre for International Forestry Research (CIFOR), Borgor, Indonesia
.
16.
Lopez, R
(1994)
‘The Environment as a Factor of Production: The Effects of
Economic Growth and Trade Liberalization’
, Journal of Environmental Economics and Management27:
163–184
.
17.
Omara-Ojungu, H.P.
(1992) Resource Management in Developing Countries.
New York: Wiley
.
18.
Reed, D.
(1992) Structural Adjustment and the Environment.
London: Earthscan
.
19.
Reed, D.
(1996) Structural Adjustment, the Environment and Sustainable
Development.
London: Earthscan
.
20.
Selden, T.M.
and
Song, D.
(1994)
‘Environment Quality and Development: Is There a Kuznets Curve
for Air Pollution Emissions?’
, Journal of Environmental Economics and Management27:
147–162
.
21.
Steer, A
(1992) ‘The Environment for
Development’, Finance and Development June.
22.
World Bank
(2000) World Development Indicators.
Washington, DC: World Bank
.
23.
World Commission on Environment and Development (WCED)
(1987) Our Common Future.
Oxford: Oxford University Press
.
24.
WRI
(2000) The Right Conditions: The World Bank, Structural
Adjustment, and Forest Policy Reform.
Washington, DC: World Resources Institute
.
