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Capitalism, the destructive exploitation of the Amazon and the tragedy of the government-owned commons

May 25th, 2009 5 comments

Searching for solutions to problems is admirable, but the effectiveness of such efforts will be limited if they are based on a faulty or incomplete understanding of the problem.  

Many of those who have some familiarity with the “tragedy of the commons” paradgim outlined by Garrett Hardin can identify a free-for-all when they see one, but fail to understand the perverse role that governments often play in perpetuating such situations.  While there may be a productive role that government can play in ameliorating destructive exploitation, it is undeniable government involvement can be counterproductive as well.

Further, while modern markets and technological advances certainly increase the pressures on “common”, open-access resources, trying to change “capitalism” or “global trade” systems may be much less productive than addressing the institutional failure at the location of the particular resource.

These thoughts come to mind in connection with ongoing discussions regarding the application of the “tragedy of the commons” paradigm to fisheries and to climate change.  Unfortunately, what passes for discussion on climate change (and other environmental issues) is too often people talking past each other (frequently with all of the hallmarks of a tribal battle):  some correctly see a looming commons problem that they believe requires government regulation but ignore the risks of pork, partiality and wasted resources in the policies themselves, while others, not anxious for government to expand its regulatory purview, downplay or dismiss the resource problem and focus on the downsides of government action or the motives of those calling for government action (while ignoring those invested heavily in a status quo that is replete with moral hazard).

To further illustrate, I take the liberty of copying below portions of a discussion with Myanna  Lahsen at Roger Pielke, Jr.`s Prometheus blog in 2007 (emphasis added):

Concluding paragraph of the linked Lahsen & Nobre paper:

“While solutions to sustainability problems in the Amazon in some cases might be found through technology, the problems themselves are responses to national- and global global level economic structures that perpetuate poverty, ignorance, and unsustainable, short-sighted extractive approaches to natural resource management. To truly understand and address environmental degradation in the Amazon, one must thus strengthen understanding and recognition of the connections between sustainability problems and global and regional structures of power and inequality, including the impact of capitalism and liberal globalization on environmental practices, standards and policies (Bunker, 1985; Campos Mello, 2001). Unsustainable uses of the Amazon, and the associated land-related violence, human rights violations and exploitation in the region, are influenced directly or indirectly by global markets in (and, hence, global consumption of) export commodities such as soybeans, meat and timber. Recognition of such connections render evident that the causes of local-level problems in the Amazon and their solutions are, in practice, far from purely local, suggesting that the most deep-cutting solutions depend on systemic changes at the global level.

Ms. Lahsen, allow me to make a few comments. Roger has just steered me here from a different thread.

 

1. I think you are absolutely correct that the incentive structures of funding institutions and the individual incentive structures of the scientists involve are key reasons why so little applied science connected to developing sustainable practices in the Amazon has come out of the LBA. But they are not the only reasons.

Few scientists take naturally to politics. Even when important public policy issues are at stake, the efficacy of those scientists who do choose to step into the policy arena may be severely limited, as is clear from the climate change debate in the US. Decision-makers act or delay action based upon perceptions of self-interest and the interests of constituencies they identify with.

Scott Saleska alludes to this when he refers to the travails of Hansen and the changing official agenda of NASA.

This problem is even more acute in the Amazon, where land tenure and land use practices are highly politicized, and where speaking out in ways that affect the strongest interest groups is outright dangerous, not merely to one’s career, but to one’s health.

2. There are plenty of scientists who engage in applied science – but mainly with respect to fields of application where there is a strong demand from the private market. I suspect that the only area where applied science is in significant demand in the Amazon is for agricultural science and technology in the areas that have been converted to soybean farms. Interest in silvaculture and ecosystem protection may grow if groups interested in preserving forests or growing trees can find a greater voice, both politically and legally.

3. In your conclusion, you rightly refer to international factors that fuel “sustainability problems” (viz., deforestation) in the Amazon, but these are very thinly sketched out and deserve greater attention. But even more importantly, I think you misunderstand the relative importance of the various institutional failures that are driving the destruction of the Amazon, and are wrong to conclude that “the most deep-cutting solutions depend on systemic changes at the global level”.

While global markets create incentives for some to cut and export logs and others to burn forests and raise cattle or crops for export, the rest of the developed world faces the same the markets and still does not destroy its forests – in fact, forests are growing in the north. Trying to tackle Amazonian deforestation by destroying export markets, “capitalism” or “liberal globalization” is simply Quixotic (if not counterproductive), and the implication that embargoes should be placed against Brazilian products derived from forest destruction are objectionable not only on grounds of practicality but morally – shall we beggar Brazilians to protect the forests that we find more valuable than they do?

The principal problem is simply that by and large nobody owns the forests in the Amazon (or in other tropical ares), or where there are indigenous peoples and others who do, these rights cannot be effectively enforced. Most of the Amazon is government owned, but the government does not care (and is probably incapable even if it desired) to protect its forests against politically well-connected cattle and farming interests. As is frequently the case when the government “owns” resources, those resources are very vulnerable to depredations by national elites.

The result in the Amazon is that forests are essentially a free resource that can be easily taken from the public treasury and converted into private wealth – and local interests that wish to protect forests (from rubber tappers like Chico Mendez to indigenous peoples and their sympathizers, like priests and nuns) are dealt with brutally and with essential impunity , as you have recognized. Like the open and secretive ways that fossil fuel interests have made efforts to protect their free use of the open-access atmosphere, we can expect that entrenched interests in Brazil will try to forestall measures that eliminate their free plundering of public forests and forests titled to the powerless.

While there is indeed a problem that there is no mechanism presently in place by which wealthier nations could pay Brazil to protect the Amazon, such steps are being discussed, but will still require effective enforcement on the ground to be at all meaningful.

Accordingly, rather than looking to “systemic changes at the global level”, one should recognize that the causes of local-level problems in the Amazon and their solutions are, contrary to your conclusion, in all tractable senses purely local to Brazil [and other Amazonian countries].

The destructive exploitation of the Amazon is a paradigmatic case for the problems of sustainable development everywhere. To have wealthy societies, we must have instititions that eliminate destructive exploitation by establishing clear and enforceable rights (whether private, collective or public) to property.

This means that one effective investment in research will be towards low-cost technology that helps resource owners on the ground to identify their property, to provide warnings of trespassers, and evidence that can be used to bring private or public proceedings to protect property.

Respectfully,

Tom

Posted by: TokyoTom at January 17, 2007 10:36 PM


Dear Tom,
You frame the problem as a strictly local one, and we beg to differ.
Global consumption patterns drive natural resource use. Growing demand for soybeans in China, and to feed cattle in Europe in the wake of the mad cow disease scares, is centrally driving soybean production in the Amazon, for instance, which has greatly accelerated deforestation in the Amazon in recent years. The oscillations in deforestation rates correlate closely with the prices of soybeans on global markets.

Yet another global, systemic cause of deforestation as well as human rights abuses in the Amazon is neoliberalism, which has weakened national governments, especially in Latin America, as we mention this in the paper and back up by reference to scholarly studies.

Finally, we take issue with your suggestion that “The principal problem is simply that by and large nobody owns the forests in the Amazon.” As indicated in critiques of Garrett Hardin’s “Tragedy of the Commons” theory, private property is not a solution. Indeed, much of the destruction of the Amazon is on private lands.

Respectfully,

Myanna Lahsen and Carlos A. Nobre

Posted by: Myanna Lahsen at March 6, 2007 09:11 AM


Hi Mayanna,

You write, “Finally, we take issue with your suggestion that “The principal problem is simply that by and large nobody owns the forests in the Amazon.” As indicated in critiques of Garrett Hardin’s “Tragedy of the Commons” theory, private property is not a solution. Indeed, much of the destruction of the Amazon is on private lands.”

Here’s a website that says:

“In Brazil, 65 percent of forested area is in public hands, but the proportion reaches 75 percent in the Amazon region. According to Azevedo, the new law, accused of “privatising” the forests, seeks precisely the opposite: to combat de facto privatisation through illegal means. Currently, more than 80 percent of illegal lumber production comes from public lands.”

So that website is saying 75 percent of the forested area in the Amazon region is in public hands, and that 80 percent of illegal lumber production comes from public lands.

Do you disagree with either of those numbers? If so, what do you think the numbers should be?

Mark

Posted by: Mark Bahner at March 6, 2007 07:24 PM


Oops. This is the website that had those figures on land ownership and illegal logging:

http://ipsnews.net/news.asp?idnews=32558

Posted by: Mark Bahner at March 6, 2007 07:29 PM


Myanna and Carlos:

Many thanks for the response.

However, you misinterpret me. First, I have NOT said that the problem is a strictly local one, and I completely agree that global consumption patterns are closely tied to natural resource use. Any rational observer of the international economy will see not only that market economies are great at creating wealth where private transaction occur relating to OWNED resources, but are also great at the destructive exploitation of resources that are not effectively owned or protected.

The Amazon is a classic case of the latter. There are essentially two possible approaches to the problem – one can try to put a stick in the gears of the global markets for foreign resources (by destroying export markets, global “capitalism”, “liberal globalization” or “neoliberalism”), or one can focus on trying to ensure that Amazonian forests are more effectively owned and protected.

Which of those seems to you like a more manageable task? (And if you chose the former, don’t forget the ethical questions I posed to you on them.)

I don’t think that the problem is an easy one at all, and I commend you both for trying to tackle it. However, I think that solutions, if any are to be found before the Amazon is gutted, will most likely be found in trying to ways to help people on the ground identify and protect resources that are important to them – and in trying to co-opt the wealthy elites who are essentially plundering Brasilians’ “national wealth” by using brazen physical power.

How can this be done? Imaginative people can think of many ways. A few come immediately to mind. One is to push the Brasilian government (and foreign aid agencies) to stop subsidizing the development of physical infrastructure like roads and power, so that those who would profit from destruction have to pay all of their own costs. It would help to identify clearly those who are converting forests, but this is not strictly necessary if taxpayers can be made aware that they are being fleeced twice – in the theft of government property and in the subsidization of it. Perhaps the government could even be persuaded to get out of the land ownership business altogether, and have all of the land auctioned off to the highest bidders. Police forces, courts, land registration offices and technologies that help identify land and trespass would all be beneficial. Markets can also be harnessed to tap “green” demand for sustainably owned and maintained resources, thus further empowering natives.

Please also understand that I am not advocating solely “private” ownership. Community ownership of resources may be quite effective. But government ownership of resources is simply a recipe for those resources to be ripped off – literally or figuratively – by those with the best politcal connections/the powerful, and at the expense of the little guy/disenfranchised.

Some focus on the demand side can also work – if PR light can be shed on the home economy firms colsest to the exploitation. But this is very difficult to do, as one purchaser can easily be replaced by another, and there’s always the Chinese, who really don’t care what we might have to say.

I’m happy to expand/expound further if you’re inclined.

Posted by: TokyoTom  at March 16, 2007 05:40 AM