COnservation of anacondas: How Tylenol Conservation and macroeconomics threatens the survival of the world's largest snake

Introduction

Most biologists consider economics and politics as bad words, because we are not trained in their use and implications, so we prefer to avoid any issue that can lead to their discussion.  For this reason when we discuss the economics of conservation, we usually talk about economic incentive for conservation and sustainable use of the natural resources but often do not go any further. We identify the cost of the commodity involving nature, what it represents for the environment and what economic incentive the local people receive, but we often fail to place it in the bigger macroeconomic frame work where it belongs. This is the reason that often the solutions we offer fall short of the real economic needs of communities and thus turn-out ineffective or at least vulnerable to other pressures. In this section I want to reach a step further, I will discuss the macroeconomic situation of Latin America and the impact that the politics and economic policies have had in conservation, and how it affects anacondas and other conservation issues in South America. 

The problem of conservation

Those who have been out in the rural areas of Latin America have had the opportunity to enjoy great and beautiful landscapes and pristine natural ecosystems but more than likely we had the less pleasurable opportunity of seeing how the local people live, their economic situation, and their limitations and struggles.  It becomes immediately obvious that there is no amount of education, policing or enforcement that can really prevent them from using the natural resources around them to survive (McSweeney, 2005).  In fact, it would not even be humane to do so.  It is also evident that these people that do not have many ways of obtaining money but are still subject to living in a money-driven system are very easily persuaded with little economic incentive to use nature in an unsustainable manner.  The sale of wildlife as pets or for their parts are common examples of latter (Fitzgerald et al., 1991; Robinson and Redford, 1991; Vickers, 1991).  Whether they use nature unsustainably of their own accord, out of lack of education and environmental awareness (e.i. over hunting), or whether they are encouraged to do so by external pressures (Camhi, 1995), it is clear that the abject poverty in the rural areas is the main conservation problem of the area; and no conservation program can succeed if it does not address it in a direct and bold manner.

Once established link between poverty and environmental degradation it is important that we also understand the link between extreme poverty and macroeconomics for us to be able to place thing within context. In the following paragraphs I will discuss the basic of macroeconimics and how it influence poverty in developing countries.

 

Macroeconomics for Dummies

For the last fifty years International Economic Agencies (IEAs) such as World Bank (WB), International Monetary Funds (IMF), and US Agency for International Development (USAID) to mention a few, have been sponsoring development and giving grants or loans for developing countries to increase and aid their economies.  The idea is that with the money injected into their economies, the developing countries create industries, factories and other source of employment that alleviate the poverty of the area.  Once the economy has been activated, the countries can pay back the money received.  The market will take care of everything, once the country starts doing some business with the aid received there will be jobs, cash flow and the poverty will go away so the countries can pay back their debts (World-Bank, 2001; Kütting, 2004; Clapp and Dauvergne, 2005).  However, the results have not been quite as expected after 60 years.  Instead, the countries that have received more economic help have experienced a dramatic increase in poverty.  Countries that abide by the macroeconomic model proposed are every time deeper in debts and that often spend all their gross product in paying off the debt without solving their problems (Buhdoo, 1994; Rich, 1994; Jochnick, 2001; Navarro-Jimenez, 2004; Navarro-Jimenez, 2005).  How can this happen in countries that are getting so much help?  The truth is that this help does not come without some strings attached.  Often the loans are conditioned to the countries giving up some of their sovereignty in decision making.  International Economic Agencies often request that countries adopt a number of internal economic measures.  Common measures are: decrease or elimination of internal subsidies to their agriculture and goods, drop trade barriers and allow international companies to operate in the country freely with little or no taxation, deregulation, privatization, exceptions in environmental regulations for businesses, elimination of social benefits such as social security, relaxation of labor laws, health care and education, to mention a few.  These sets of measures are often called Structural Adjustment Programs (SAPs) and are imposed on the people when the government accepts the loan, credit or other kind of economic aid (Buhdoo, 1994; Clapp and Dauvergne, 2005).

The money of loans is not given for the country's investment at its own sovereign will.  It is often limited in how it can be used.  Often times, the money must be used in hiring US companies or other transnational companies to do large development projects (roads, dams, etc) known as Export Credit Agencies (ECA). This are often companies associated to the government of a developed country (e.i. Comodity Credit Corporation, or the Export-Import Bank of the United States) whose job is to secure sales for the country of origin (Goldzimer, 2003).  So a good part of the money (about 40%) is given without bidding to a pre-determined ECA and never reaches the country it is supposed to benefit.  The money then is not injected into the economy. It is just moved from one bank account to another in some developed country (Goldzimer, 2003; Perkins, 2004; Clapp and Dauvergne, 2005).  In exchange for accepting the SAP the IEAs give loans and credits (to the ECA), the companies that move in will bring jobs and capital.  The rationale is that the money injected from the companies will activate the economy, the truth is that the factories and companies are built with the money of the loan so there is no much flow of money brought in by the company and the loan will have to be paid plus interests, so there is only net flow of capital out of the country.  So the private debt is transformed into public debt and the tax payers must respond for it (Goldzimer, 2003).  The ECAs hire employees at minimum wage, but since the SAPs imposed to lower wages, drop social assistance, and workers benefits the minimum wage does not really solve the problem of poverty in the area. People have jobs but the regular commodities (produce, water, housing) have gone up because they are now in a globalized marked, so their standard of living is even lower than what it used to be (Horta, 1991; Cheru, 1992; Yunus, 1994; Clapp and Dauvergne, 2005). 

The national companies are bought by international mega corporations since the national companies cannot compete with the foreign investors once there are no trade barriers.  The small and local companies have then to face competition with multibillion-dollar transnationals that leave them bankrupt (Blustein, 2005).  Imagine a small phone company in, say, Nicaragua competing with AT&T or MCI.  The Nicaraguan company does not have any chance of succeeding and the owner is forced to sale his company for little money and be, at best, manager of the business that s/he once owned. 

Increasing poverty linked to neoliberal agenda may lead the environmental degradation by forcing people to use the resources in an unsustainable manner.  However this is not the only way in which neoliberalism hurts the environment.  The companies now have liberty to dump their waste waters in the water sheds, due to the imposed lowering of environmental standards included in the SAPs (Clapp, 2001; Goldzimer, 2003), and their activities deteriorate the habitat where the local people live, bringing problems of diseases, and pollution that affects the whole ecosystems and kills the local wildlife (Horta, 1991; Cheru, 1992; Rich, 1994; Pearce et al., 1995; Horta et al., 2002). In general the new companies lower the quality of life of local people and jeopardize the possibilities to return to their former lives style.  Many of these companies are temporary, like those involving mining, or timbering.  When the company leaves the country, it leaves behind pollution, destroyed habitat, unemployment, and even more poverty than there was to begin with (Ellin, 2003; Forero, 2003; Goldzimer, 2003).  The effect of these economic aids by EIAs has been compared to the use of anabolic steroids in sports.  It can produce a temporary spike in performance but it is bound to produce lesions and results detrimental in the long term (Rogoff, 2004). The impoverished nation will then go back to exploit whatever is left of the environment in an even stronger manner.

These economic strategies described here is a coin of two sides.  The side that faces the developed countries is called globalization while the one that faces the developing countries is called neoliberalism. Regardless the name used it is strongly linked to extreme poverty in developing countries as the evidence show in all the countries that have abided by it (Danaher, 1994; Kütting, 2004; Navarro-Jimenez, 2004). A good example of this sad situation is Argentina that embraced neoliberal agenda whole heartedly during the late 1990s to the point of being a success story to show to all developing countries for their temporary (and ephemeral) wealth.  In 2002, the bubble burst in the Argentinean economy, leaving the country in great poverty and great economic toil (Blustein, 2005). 

The crash of Argentinean economy was followed by political upheaval and more economic and social turmoil. The influence of IEAs producing extreme poverty through the application of SAPs can be seen in developing countries throughout the world; often leading to similar social unrest and political problems.  This has been the cause of the recent popular up-rising in South America that ended up toppling presidents in the last decade in Argentina (2002), Bolivia (2003, 2005), and Ecuador (1997, 2000, 2005) just to mention a few.  Needless to say, during times of economic toil and political upheaval, conservation takes the last seat.

Economy and the Environment

Why is all this political and economic broohaha important for conservation?  Well, when countries have these kinds of problems it negatively affects conservation in different manners. Poverty leads people to the unsustainable use of natural resources; when hunger strikes there is no amount of environmental education, or enforcement that can protect the environment, people will resort to the unsustainable use of the environment as a first resource (Cheru, 1992; McSweeney, 2005).  Also, during times of political upheaval, countries tend to let aside conservation programs, environmental education campaigns or environmental policies and enforcement.  All of which produces negative effects on the biodiversity of the areas. 

The sustainable use of natural resources has been offered as one potential solution to economic problems.  The rational use of wildlife has also been proposed as an alternative to destruction and replacement of natural habitats with non-sustainable uses of the land, such as timbering or agriculture.  The sustained harvest of wild populations has been implemented in several countries for subsistence (Robinson and Redford, 1991; Shaw, 1991; Silva and Strahl, 1991; Vickers, 1991; Balick and Mendelson, 1992; Bodmer et al., 1997) and for commercial uses such as harvesting wildlife for hides, flesh, or live pets that give the local people reasons to protect the habitat the provides their livelihood