Summary of JOIE article ( 27 August 2024) by Gustavo Magalhães de Oliveira, Institute for Food and Resource Economics, University of Bonn and Bruno Varella Miranda, Insper Institute of Education and Research, São Paulo, Brazil. The full article is available on the JOIE website.
When you think of Brazil, vibrant festivals and stunning landscapes often come to mind. Yet, beneath these beautiful images lies a pressing issue that demands urgent attention: the severe challenges facing the Brazilian Amazon. This vast rainforest is not only crucial for global biodiversity but is also grappling with severe deforestation and escalating violence.
Let’s start with deforestation. Only in 2019, the Brazilian Amazon lost over 10,000 square kilometres of forest – an area comparable to a country like Jamaica. This loss is not just an environmental tragedy but has far-reaching consequences for climate stability, wildlife habitats, and indigenous communities.
Alongside deforestation, the Brazilian Amazon is experiencing a dramatic rise in violence. Brazil is a violent country, with an 85% increase in homicides from 1980 to 2019. During the same period, the Brazilian Amazon region has faced an astonishing 260% increase in homicide rates. This rise in violence reflects deeper issues related to land disputes and governance challenges.
Brazil’s environmental regulations are relatively comprehensive compared to other developing nations. However, enforcing these rules is a major challenge. The Brazilian Amazon’s vast and remote areas make it difficult for the government to monitor and regulate land use effectively. High costs and logistical issues complicate enforcement, allowing illegal activities to flourish.
The ambiguous land tenure system in the Brazilian Amazon plays a crucial role in both deforestation and violence as well. With around 50 million hectares of ‘undesignated’ State-owned lands, there is a legal grey area that encourages land grabbing and illegal logging. Squatters (‘posseiros’) and land grabbers (‘grileiro’) have historically cleared forest land and introduced cattle to claim ownership, continuously moving the agricultural frontier.
Violence is often a by-product of the scramble for land and resources. Competing claimants often resort to violence to secure their claims. Research has shown a direct relationship between poorly defined property rights and increased violence in the Brazilian Amazon.
In an effort to curb deforestation, Brazil introduced the ‘list of Municípios Prioritários’ policy in 2007. The policy was designed to enhance the effectiveness of environmental monitoring by targeting municipalities with the highest deforestation rates. By setting clear goals for these areas, the policy sought to create strong incentives for compliance. Failure to comply with environmental regulations could lead to negative publicity and restrictions on access to financial resources and permits for clearing land.
The early results of the policy were promising. Deforestation rates in targeted municipalities decreased significantly, indicating that the policy was effective in reducing forest loss. But would the ‘list of Municípios Prioritários’ list contribute to a reduction in violence rates as well?
Our analysis of data from 2004 to 2016 reveals a 20.2% decrease in overall homicides and a 22.4% reduction in firearm-related homicides in the affected areas. This suggests that improved monitoring and enforcement can also contribute to reducing violence associated with the competition for resources with poorly defined property rights.
Despite its successes, the ‘list of Municípios Prioritários’ policy faces several challenges. The ‘list of Municípios Prioritários’ policy was designed to deal with the historical drivers of deforestation in the region. For example, it included financial incentives to convince farmers to comply with environmental rules.
Since the turn of the twenty-first century, however, mafias have found an efficient drug exportation route in the rivers of the Brazilian Amazon. As boats came and went, powerful criminal syndicates quickly realized that the rich resources in the region could be exploited.
While the policy was effective in addressing historical deforestation drivers, it may not be sufficient to tackle the current threats posed by organized crime. The tools and strategies used in the ‘list of Municípios Prioritários’ policy may need to be updated to address these evolving challenges effectively.