By Smartencyclopedia

Politics is different from one country to another, but trends in economic policies transcend national borders. The political economy of the Pan Amazon region is shaped by the historical influence of strategic development plans that were initiated in the middle decades of the 20th century when countries in the Amazon basin started directing their focus toward the development of the Amazon region.

The nationalist period (1960–1985) was characterized by authoritarian governments that sought to use the power of the state to harness the natural resources of the Amazon. The push into the region was seen as a way to generate economic growth, mitigate poverty and avoid political unrest driven by socialist ideology. Governments were insensitive to environmental and cultural impacts and viewed the Amazon as an unpopulated region that could absorb a growing population. Highways were extended into the wilderness, and public lands were distributed to landless peasants and corporate investors. Mining ventures and oil exploitation were subsidized by the state. Development was synonymous with deforestation.

The period characterized by neoliberal policies (1985–2005) commenced with a series of market-oriented reforms aimed at promoting economic growth through private sector involvement. These reforms, commonly known as the ‘Washington Consensus’, involved the implementation of policies such as privatizing state-owned enterprises, reducing budget deficits, strengthening property rights, fostering free trade, and encouraging foreign investment. The role of the state was redefined to focus on providing essential services like law enforcement and maintaining a streamlined regulatory framework. During this time, the Amazon region became integrated into the global economy, triggering concerns from environmental and social advocates regarding deforestation and the welfare of Indigenous communities. The notion of sustainable development gained prominence, both in academic circles and policy discussions. Additionally, the export of commodities became closely associated with the idea of development.

The subsequent populist period (2005–2019) emerged as a response to the perceived austerity measures associated with neoliberal policies, coupled with a desire to assert national identity and reduce foreign influence. Populist governments gained significant electoral support by promising to address social inequality while advocating for a form of democratic socialism that increased the state’s involvement in the national economy. Unlike previous socialist movements, these governments safeguarded the interests of private sector entities that played a crucial role in generating economic growth and export revenues necessary to fund their political agendas. These populist administrations made public commitments to sustainability, supported conservation initiatives, and aimed to protect the rights of Indigenous communities, all while investing in infrastructure and adhering to conventional development models. However, sustainability often became synonymous with maintaining the existing system.

Each of these phases resulted in tangible changes that influenced subsequent development and conservation possibilities. For instance, the construction of major roads through the forest in the 1970s established a foundation for future highway investments, which have remained a recurring priority in the annual budgets of Brazilian states. The development of oil and gas fields in the Andean countries during the 1960s created vital revenue streams for macroeconomic stability and led to the creation of infrastructure assets like pipelines, enabling further expansion into untouched natural landscapes. These developments shaped the landscape and posed constraints or opportunities for future conservation and development endeavors.

The agribusiness sector, driven by exports, has become an integral part of the national economy since the late 1990s. This has provided agribusiness with significant financial resources, enabling investments in large-scale transportation systems. In Brazil and Bolivia, the beef industry consists of numerous stakeholders who wield considerable political influence, allowing them to disregard land-use regulations aimed at curbing deforestation. The establishment of protected areas and the recognition of Indigenous people’s territorial rights have safeguarded nearly half of the Amazon’s land from conventional development practices.

The future political landscape remains uncertain. In 2019, Jair Bolsonaro assumed the presidency of Brazil with a stated agenda to overturn conservation policies implemented over the past two decades and return to the unregulated development characteristic of the 1970s. In the Andean countries, there is widespread discontent with corrupt political elites, although newly elected governments continue to pursue traditional development models, often tolerating deforestation and the degradation of aquatic ecosystems caused by small-scale gold mining. Venezuela is facing significant challenges, while the coastal republics of Guyana are in the process of embracing an economy heavily dependent on fossil fuels.

References

• “A Perfect Storm in the Amazon” is a book by Timothy Killeen and contains the author’s viewpoints and analysis. The second edition was published by The White Horse in 2021, under the terms of a Creative Commons license (CC BY 4.0 license).