Corruption and the Disappearance of the Rainforests

Corruption and the Disappearance of the Rainforests
Katie McCabe

Picture by Roberto Arias

A beloved wonderland of exotic trees and plants are words often used to illustrate the majestic rainforests of the world. A unique and remote area classified by its dense tropical forests and varying species, the rainforests have slowly been disappearing. Scenes from popular movies such as Avatar and Fern Gully faults man for the destruction of rainforests while often portraying bulldozers clear-cutting trees and destroying animals’ homes. Even though this petrifying scene is often accurate, currently several federal governments have implemented laws and punishments for those that participate in illegal deforestation.

Fourteen percent of the Earth’s surface was once covered by rainforests. Today, only six percent remains and is rapidly vanishing. Characterized by dense tree layers and high rainfall, rainforests contain a wide variety of plants and animals that are found nowhere else on the planet. As well, the oxygen turnover manufactured by the flora of the forest makes respiration possible for the animal-life on the globe. The deforestation of these ecosystems not only destroys local habitats, but release carbon dioxide which contribute to climate change. Government-implemented organizations such as The Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) have been created in order to manage the preservation of the rainforests and prevent illegal deforestation.

However, a recent study conducted by Cassandro Maria da Veiga Mendes examined the economic, political, and scientific variables that contribute to illegal deforestation in the Amazon Forest specifically. Contrary to popular belief, “the main culprits of deforestation are cattle ranchers (60 – 70%), and then followed by squatters (30 – 40%). Timber extraction and civil engineering projects are responsible for fewer than 5% of total deforestation.” The mainstream response of the government has been to increase surveillance and create harsher punishments and fines. However, Mendes questions that this “may not result in less deforestation, because surveillance and dispensing fines are not directly controlled by the central government, but low rank, low salaries officials.”

Mendes created a game theory model to test her hypothesis. The three players of her model included three players: the landowner, the government official and the government. She concluded that a collusion, defined as a secret agreement for fraudulent purposes, between the landowner and the government official would results in the elimination of punishment for the landowner. Mendes also found that “imposing penalties is a necessary but not sufficient condition to eliminate collusion. Thus, It is necessary to harden the punishment of the corrupt official or, alternatively to increase surveillance on the officials.”

The preservation and conservation of the rainforests is an essential role in the protection of the Earth’s biodiversity. As an alternative, Mendes suggests, “that the actual relationship between government and IBAMA officials should be modified in order to prevent collusive practices. Internal auditing must be implemented to discourage opportunist behavior, made possible by information asymmetry.”


Works Cited

Mendes, Cassandro Maria da Veiga. "How does corruption drive illegal deforestation in Amazon Forest?." Brazilian Journal of Business Economics. 9.2 (2009): 55-65. Print.