Government Policies Affecting Forests in Latin America: An Agenda for Discussion

This paper identifies policy issues that affect the extent, distribution, and condition of forests in Latin America. Forest management policies are only one element in the framework; policies related to agricultural development and land tenure can have potentially negative consequences for forests. Mineral exploration, hydroelectric reservoirs, highway projects, and urban expansion also have impacts on forest conversion. Finally, macroeconomic policies affect forests through their impact on investment, public spending, foreign trade, and other economic variables that have consequences for land use. Examples of the Bank's lending for forests as integrated with agricultural structural adjustment loans (AGSALs) in Honduras, Nicaragua, and Peru are presented.