Economic Cycles,Deforestation and Social Impacts in the Brazilian Amazon

Abstract

This article examines the cycles of economic development in the Brazilian Amazon, in a historical perspective, aiming at understanding current prospects. From the colonial period until today, the Amazon has been integrated into the national and world economies in a subordinate manner, by providing agricultural, mineral and livestock commodities. This subordinated integration has led to generalized deforestation in the Amazon region, mostly due to the expansion of livestock. Both agribusiness and small producers integrated into agribusiness have participated in this process. Although cattle ranching, the current main agribusiness in the Amazon, leads the current economic cycle, the rates of deforestation are dropping. It is regarded as a consequence of public policies that have managed to tackle environmental and economic impacts; however, social impacts, especially of small producers and other communities, remain overlooked. The article questions whether this state of affairs is circumstantial and whether it may give way to renewed deforestation and expansion of cattle ranching. The text concludes with policy recommendations for fostering sustainable development in the Amazon.