Public policies and deforestation in the Brazilian Amazon

Abstract

The question of land tenure is a major issue in the development debate in Latin America. Recently, one new dimension has been added to the discussion with the increasing concern with environmental issues: the link between rural migration and deforestation. This paper analyses this problem, focusing on the Brazilian Amazon experience. The first part briefly reviews past and present policies that encouraged migration to the region (according to the slogan “peopless” land to “landless” people) as a way to avoid proper agrarian reforms. The role of economic policies in this process is highlighted, particularly the connection with structural adjustment objectives. The second part of the paper presents empirical results showing that, in the Brazilian case, policy-related variables are positively related to land clearing. The opportunity cost of labour (represented by rural wages) plays a major role in this process, affecting decisively the determination of how much land to be cleared. This establishes a link between deforestation and poverty: the lower the opportunity cost of labour, the higher is the incentive to deforest.