Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Brazil's forests; Foreign exchange; Cattle beef; Cattle ranchers; Agricultural products; Domestic demand; Environmental organisations; Deforestation; Brazil exports and imports; Tax cut programmes; World Resources Institute; Amazon forests; Brazilian Agency for Forestry and Environmental Affairs; Devaluation of the Mexican peso; Centre for International Forestry Research; Brazil's economy, balance of payments; Fernando Henrique Cardoso
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Abstract
The Amazon forests of Brazil are the world''s largest rainforests. But in the last three decades huge areas of the Amazon basin are being deforested. During the 1970s and the 1980s, the government introduced policies, like provision of subsidised loans, providing easy credit and cutting of import duties, which encouraged cattle ranchers to settle in the Amazon region. As the number of cattle ranchers increased, the areas of deforestation also rose in the Amazon basin. After the devaluation of the real in 1999, the international demand for Brazilian beef grew. Increasing exports of cattle beef helped Brazil to accumulate comfortable levels of foreign reserve and to maintain the exchange rate of the real. This case provides scope to discuss the situation faced by the Brazilian government, wherein it has to decide between preserving the Amazon forests and increasing its foreign reserve.
Location:
Other setting(s):
2004
About
Abstract
The Amazon forests of Brazil are the world''s largest rainforests. But in the last three decades huge areas of the Amazon basin are being deforested. During the 1970s and the 1980s, the government introduced policies, like provision of subsidised loans, providing easy credit and cutting of import duties, which encouraged cattle ranchers to settle in the Amazon region. As the number of cattle ranchers increased, the areas of deforestation also rose in the Amazon basin. After the devaluation of the real in 1999, the international demand for Brazilian beef grew. Increasing exports of cattle beef helped Brazil to accumulate comfortable levels of foreign reserve and to maintain the exchange rate of the real. This case provides scope to discuss the situation faced by the Brazilian government, wherein it has to decide between preserving the Amazon forests and increasing its foreign reserve.
Settings
Location:
Other setting(s):
2004