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Essay Subject: Analyzes fiscal & developmental issues & relates them to environmental protection in general & Amazonian rain forest specifically.... More...

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Paper Abstract: Analyzes fiscal & developmental issues & relates them to environmental protection in general & Amazonian rain forest specifically. Paper Introduction: INTRODUCTION In the early-1990s, the protection and preservation of the Amazonian rain forest has become an international environmental issue (Clay, 1990). To be sure, the issue was raised nearly two decades ago by some environmental activists, but few people listened at that time (Clay, 1989). Now, however, Brazil is roundly condemned for threatening the rain forest through the pursuit of economic development. This research examines the problem of economic development in Brazil, within the context of environmental concerns over the protection and preservation of the Amazonian rain forest. BRAZIL'S ECONOMIC AND SOCIAL SITUATION Brazil has experienced and continues to experience serious economic and social problems. Some people in the first world Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Whelan, E. Ottawa, Illinois: Jameson Books. Shapiro, S., and Huntley, G. In fact, actions bythe Reagan Administration demonstrated that political and economic concernsoften have a greater influence than do factors associated with human healthor environmental protection on the type of action, the intensity of action,and whether or not any action at all will be initiated in the area ofenvironmental health (Whelan, 1985). The combination of the country's external debt and agrowing population causes the government to pursue increased andincreasingly rapid domestic development. (1987, February 17). INTRODUCTION In the early-199 s, the protection and preservation of the Amazonianrain forest has become an international environmental issue (Clay, 199 ).To be sure, the issue was raised nearly two decades ago by someenvironmental activists, but few people listened at that time (Clay, 1989). Clay, J. The global 2 reportto the President. ----. Rampant urbanization is a problem in Brazil. A significant increase in the levels and types of diseasesuffered by humans and other animals. Maclean's, pp.2426. Living with the strains. Economic factors then become a part of the politicalconsideration. Some people in the first world tend to view Brazil asa country out of control. In thisalternative approach, social benefits are contrasted to private benefits.Social benefits, in this alternative context, are viewed as externalities,or spill-over effect. Still, the troubles didnot end, as the clean-up efforts turned out to be as confused anddisorganized as were the containment efforts--again, continuing to make abad problem even worse (Wells, and Sullivan, 1989). That proportion compares to 4 .6 percent inMexico, and to 26.6 percent in the United States (The World Bank, 1989).The richest 2 percent of Brazilians control two-thirds of national income,compared to 57.7 percent in Mexico, and 42.8 percent in the United States(The World Bank, 1989). Wells, K., and Sullivan, A. Real capital goods, inthis instance, refers to social capital, which is the sum total of capitalstock possessed by an economy as a whole. On theone hand, Brazil is pressured by the developed countries to reduce itsexternal debt. In the political context, the implications must be considered on botha short-term and a long-term basis. In the face of themonumental damage to the natural environment in Alaska, however, the BushAdministration announced that it would not initiate any curtailment ofpetroleum extraction operations in Alaska. 3. If Brazil was a family rather than a country, itwould have already been forced to declare bankruptcy. While Sao Paulo in particular, as well as some of the other Braziliancities, are generally well off, distressing numbers of people are requiredto live in the favelas, or shantytowns, which have developed on theoutskirts of the country's major urban areas. More Brazilian families have televisionsets than have running water, and the national O Globo TV network"penetrates the deepest reaches of the Amazonian rain forest where someIndian tribes have yet to make their first contact with civilization"(Wood, 1987, 25). A shrinkage of fresh water supplies to a point where: (a)water available for human consumption would be insufficient; (b) wateravailable for animal consumption would be insufficient; (c) fresh waterrequired for dry land farming would be insufficient; and (d) fresh water(where required) for industry would be insufficient. All such warningswere brushed aside, because of the perceived urgency of economicimperatives. At first, it sounds absurd to consider delaying criticalenvironmental responses on political grounds. The creation of nearly unlivable areas. Within this concept, all facetsof the environment may be considered to be real capital goods. HighTechnology, pp. Brazil began a brinksmanship game withinternational lenders, by refusing in 1987 to continue to pay on theprincipal of its external debt, although keeping up interest payments.Brazil did not really feel that they had much to fear, because, as theypointed out, they were receiving hardly any new money anyway ("Living withthe Strains," 1987). A rational response to the environmental protection problems based onscientific knowledge is feasible. A nonpolitical response, however, is notfeasible in a non-dictatorial society, because public support is requiredfor the success of governmental initiatives. World development report. International Monetary Fund. The undeveloped Brazil isapproximately twice the size in population as is the developed Brazil.These inequities must be corrected, if the country is to avoid chaos, or,as Brazilian president Sarney said, to avoid "setting the fire to thepowder keg" (Wood, 1987, 25). 4. (199 , January 14). (1985). Damage to the Brazilian rain forestmight not be as great as thought. Business Insurance, pp. The World Bank. The country's enormous external debt createsdifficulties for the Brazilian government in its attempts to improve theliving standards of the poorest three-fifths of its population of 15 million. Most of theworld's developing countries have a net external debt in 199 . For the protection of the Amazonian rain forest, the relevant economyis not that of Brazil. New York: OxfordUniversity Press.----------------------- 13 1, 45-46. Thus, an effectivegovernmental response to environmental protection issues requiresincorporation of both scientific and political considerations into anysolution. (1989, July 27). Reversing the effects of environmental damage at this lattertime will prove to be both more difficult and more expensive than would bethe case, if the problems were effectively addressed over the short-term.In the case of the Amazonian rain forest, a long-term solution may not bean option, if effective short-term measures are not initiated. Rather, it is the world economy, because the entireworld is affected by what happens to that resource. In the United States, economicsis accorded priority over the environment, yet the United States is one ofthe loudest critics of Brazil concerning environmental damage to theAmazonian rain forest. It is, thus, hardly surprising when the Braziliansplace little weight on such arguments, when they consider the actions ofthe source of those arguments. Radios in the rain forest. BRAZIL'S ECONOMIC AND SOCIAL SITUATION Brazil has experienced and continues to experience serious economicand social problems. New York: OxfordUniversity Press. Thus, there can be littlequestion of the responsibility of governmental response which delays neededaction, in the face of strong public opposition. Over the subsequent hours, the hours turned into days, asthe containment efforts were unbelievably botched, further exacerbating theenvironmental disaster (Wells, and McCoy, 1989). Income distribution is highly skewed in Brazil. Within the framework of gross inequality in income distribution, and,in part, because of the maldistribution of income, "jarring contrasts"exist in Brazil (Wood, 1987, 25). Alternatively, social benefitsmay be viewed in a more narrow context as being only those benefitsaccruing to those in a society other than the decision-maker(s). Wells, K., and McCoy, C. The people who live in thefavelas moved from the countryside without promise of a good job, but withhope that they will be able to participate in an improving economy. In order to assess the implications of externaldebt, it is necessary to relate a country's debt to other macroeconomicmeasures. It often appears to Brazilians that thedeveloped countries, and their surrogates, such as the InternationalMonetary Fund, and The World Bank, will be satisfied only by policies whichmake conditions even more difficult for the poorest Brazilians. The term social benefits may be used in two ways. (1986). (1982). Significantly reduced food production. W. Now, however, Brazil is roundly condemned for threatening the rain forestthrough the pursuit of economic development. It is certainly true in 199 that the Amazonian rainforest is responsible for an enormous proportion of the clean air and freshwater for the entire world. New York: Penguin Books, Ltd. Sao Paulo, thecountry's largest city, with a population in excess of 15 million persons,is expected by 2 to have a population which will exceed 25 millionpersons, which will represent 14 percent of Brazil's projected totalpopulation (The World Bank, 1986). Theconcept of social costs is closely related to the concept of externalities. The term social costs refers to the total costs borne by society as awhole as a result of a specific economic decision. The development and initiation of policies and actions dealing withenvironmental protection are heavily influenced by political and economicconsiderations, as well as by concerns for human health and environmentalprotection (Council on Environmental Quality, 1982). (1989, October). Exxon's army scrubsbeaches, but many don't stay cleaned. 52-57. The Wall Street Journal, pp. (1987, April 25). In the short-term, the loss of jobs,loss of industries, and high program costs are factors which will oftenoutweigh the potential long-term effects of environmental protection.Thus, for most politicians, short-term expediency may be expected toprevail over long-term imperatives. Science, pp. Brazil has the highest external debt of any developing country (evenamong developed economies, external debt is higher than that of Brazil onlyin the United States). Brazil has a two-tiered economy--almost as ifthere are two countries within a single country--one developing country,and one developed country (Wood, 1987). When the government implements policies designed to movetowards such a goal, however, it is often criticized by the same countriesfor endangering the environment. The United States initiated petroleum resource development in Alaskamore than two decades ago in the face of warnings that such developmentcould cause severe damage to the natural environment. Economist, BrazilSurvey Supplement, pp. (1989, April 3). In Brazil, economic stabilization plans have been developed bygovernments, with one eye on the foreign lenders, and one eye on thedomestic political situation. Exxon's spill covertotals $6 million. Such judgements, however, are made by peopleresiding comfortably in developed economies, with little understanding orappreciation of what is required to move the world's sixth largest country(population), and tenth largest economy (gross national product) from thestatus of a developing country to that of an economic power. Brazil, therefore,is often tempted to rebel against the external imposition of economicrestraints, because most Brazilians, including politicians at the nationallevel, think that the country can get away with it. First, socialbenefits may be considered to be all of the gains in welfare which arederived from a specific economic decision. Wood, C. (199 , February). A1, A7. The success of anygovernmental response in any state other than a harsh dictatorship,however, depends upon public political support. ENVIRONMENTAL PROTECTION AND ECONOMIC DEVELOPMENT As is typically the case, the developed countries of the world--theUnited States in particular--attempt to apply double standards to thedeveloping countries. 2. The social costs associated with a specific economic decision differ, intheory, from the private costs associated with such a decision by theamount of the value of any external economies or diseconomies associatedwith the economic decision. Further, oneneed not look back 1 or more years to find evidence of a double standard. Theirnumbers are usually more than a city can accommodate. Although environmental protection is an emotional issue which rouseshigh passions on all sides of the issue, there are serious economic andpolitical implications of such action which should be soberly considered byall factions. One of the solutions to theurbanization problem which is being pursued by Brazil is the opening up ofthe country's hinterlands, which, unfortunately, included parts of theAmazonian rain forest. This research examines theproblem of economic development in Brazil, within the context ofenvironmental concerns over the protection and preservation of theAmazonian rain forest. Thus, social costsconsist of (1) the opportunity costs associated with resources used, (2)the value of any loss in welfare associated with a specific economicdecision, and (3) any increase in costs for those in society other than thedecision-maker, which results from a specific economic decision. 34-43. The developedcountries of the world must compensate Brazil for its sacrifices, so that(1) Brazil may continue to pursue domestic economic development, while (2)the Amazonian rain forest is preserved for the entire world. Some ofthese countries, however, have a much larger external debt than do others.Brazil is the largest debtor in the Third World, with an external debtapproximating US$1 8 billion (The World Bank, 1989). A World of Cities. Once the effects of environmental contamination begin to bemanifested in the forms of shortages of fresh water, increased incidence ofdisease, new forms of disease, food supply shortages, and so forth,however, the political outlook of the general public will shift.Unfortunately, however, this shift will occur over the long-term, and, bythe time it does occur, the environmental damage will have alreadyoccurred. In the economic context, the following implications must beconsidered in the development of solutions to the problem of Amazonian rainforest protection and preservation, because a continuation of currentpractices could result in the following: 1. Thus, it is absurd tocontend that Brazil would bear the entire cost and social burden of theprotection and preservation of the Amazonian rain forest. Council on Environmental Quality. Brazil is committed toeconomic growth, and, if the Amazonian rain forest is to be protected andpreserved, the developed countries will be required to shoulder a part ofthe cost of the effort. In the context of environmental protection policy, the terminvestment is used in a broad context, although it still refers to anexpenditure, at some level of real capital goods. One reason for the enormous role played by theAmazonian rain forest in these environmental events, however, is that theforests of Europe and of the eastern and Midwestern United States weredecimated from 1 to 6 years ago in the name of economic development--the very act for which Brazil is being condemned in 199 ! Thecountry is not likely to accept such conditions. References Clay, J. How unpreparedness turnedthe Alaska oil spill-into ecological debacle. Brazil.International Financial Statistics, pp. Brazil's external debt equals 46.7 percent of its gross nationalproduct--GNP, and 49.1 percent of the country's gross domestic product--GDP(The World Bank, 1989). (1989, April 3). External debt has a major impact on the ability of a developingcountry to deal with social problems, environmental problems, and domesticeconomic development. The beat of Brazil. 1 1-1 4. Brazil, in contrast to most developing countries, has relativelylittle need for imports, and exports account for less than 1 percent ofthe country's GDP (International Monetary Fund, 199 ). (1989). Toxic Terror. What is not responsibleon the part of government is (1) a failure to recognize the need for aneffective response to a critical situation, such as the acid rain problem,and (2) a failure to implement programs designed to overcome publicopposition to needed actions. The World Bank. Living standards are further compromised by high rates ofinflation in Brazil. In Brazil, therichest 1 percent of the population receive 5 .6 percent of nationalincome (The World Bank, 1989). 26-27. On 24 March 1989, the oil supertanker Exxon Valdez hit rocksin Prince William sound in Alaska, and eventually spilled more than 1 million gallons of crude oil into the waters of the sound (Shapiro, andHuntley, 1989). These efforts are oftenaccompanied by adverse outcomes for Brazil's physical environment. W. The Wall Street Journal, pp.A1, A8. Through thedevelopment of economically viable areas in the hinterlands, Brazil hopesto reverse the flow of this human tide. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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