Causes of Deforestation of the Brazilian Amazon

The worldwide concern with deforestation
of Brazilian Amazonia is motivated not only by the
irreversible loss of this natural wealth, but also by the
perception that it is a destructive process in which the
social and economic gains are smaller than the environmental
losses. This perception also underlies the diagnosis,
formulation and evaluation of public policies proposed by
government and non-governmental organizations working in the
region, including the World Bank. The present work suggests
that a fuller understanding is necessary with regard to the
motivations and identity of the agents responsible for
deforestation, the evaluation of the social and economic
benefits from the process and the resulting implications of
public policies for the region. The objective of the report
is to show that, in contrast to the 1970s and 1980s when
occupation of Brazilian Amazonia was largely induced by
government policies and subsidies, recent deforestation in
significant parts of the region is basically caused by
medium- and large-scale cattle ranching. Following a private
rationale, the dynamics of the occupation process gradually
became autonomous, as is suggested by the significant
increase in deforestation in the 1990s despite the
substantial reduction of subsidies and incentives by
government. Among the causes of the transformation are
technological and managerial changes and the adaptation of
cattle ranching to the geo-ecological conditions of eastern
Amazonia which allowed for productivity gains and cost
reductions. The fact that cattle ranching is viable from the
private perspective does not mean that the activity is
socially desirable or environmentally sustainable. Private
gain needs to be contrasted with the environmental (social)
costs associated with cattle ranching and deforestation.
From the social perspective, it is legitimate to argue that
the private benefits from large-scale cattle ranching are
largely exclusive, having contributed little to alleviate
social and economic inequalities. The study notes, however,
that decreases in the price of beef in national markets and
increases in exports caused by the expansion of cattle
ranching in Eastern Amazonia may imply social benefits that
go beyond sectoral and regional boundaries.