Brazil

The purpose of this report is to contribute to the development of appropriate and effective environmental policies for the Amazon. Appropriate policies must be based... Show More + on a correct diagnosis of the causes, nature, and magnitude of the environmental problem. Effective policies must realistically recognize the political and economic constraints facing implementation. This report describes the current state of deforestation, including its location, level, and rate, and reviews its underlying causes. Deforestation is, however, of interest only because it is an indicator of potential environmental problems, including species loss, global warming, local watershed damage, and microclimatic change, which are also described briefly. It discusses the most important types of economic activity in the Amazon, and their environmental implications. Some of these activities are a direct response to government policies and public investments, but others would be carried out without them. Future government policy must therefore clearly identify the strength of the forces underlying economic development in the Amazon. Finally, the report discusses the major economic and political factors governing the policy environment for the Amazon, and suggests an environmental strategy that addresses environmental objectives in light of the existing political and economic constraints. Show Less -

The Brazilian economy in the post-war period has undergone more profound transformations in structure as well as policies than most other developing countries. Most... Show More + of the 'fifties were characterized by stagnating exports, rapid import substitution and in the second half of the decade the large special stimulus provided by the building of Brasilia. The combination of these factors resulted in a relatively rapid expansion of domestic production together with an annual inflation which until 1959 varied between 14 and 26 percent. Thereafter it accelerated steadily, reaching more than 100 percent in the early months of 1964. During the next few years it should be possible for Brazil to resume economic growth while at the same time achieving substantial further reductions in the rate of price inflation. After having achieved an average annual growth rate of 6 percent between 1950 and 1962, gross domestic product (GDP) on average expanded by 3.3 percent annually in the next 4 years. It seems reasonable to expect an average growth of about 5.5 percent between 1966 and 1971; industrial production which in the period of rapid expansion had grown at more than 9 percent annually, should resume its leading role and increase by at least 7 percent per year while agriculture may well grow by some 5 percent annually, i.e., fractionally more than in the past. Output growth of this general order is likely to require a continuation of the past trend in investment: gross domestic capital formation grew at annual average rates of 9 percent between 19.50 and 1962 and of 10 percent between 1962 and 1966; in the latter year it seems to have been about 15.6 percent of GDP. Show Less -