Debt-for-nature swaps: A new strategy for protecting environmental interests in developing nations

Journal Article · Sun Jan 01 04:00:00 EST 1989 · Ecology Law Quarterly; (USA)

OSTI ID:6652539

Hamlin, T B ^[1]

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1. Univ. of California, Berkeley (USA)

Nature swaps are a generally well-conceived approach to mitigating the destruction of environmentally sensitive areas in developing nations while remaining sensitive to the economic needs of developing countries. They allow developing countries to dedicate some of their debt repayment to local projects, thus benefiting both their economies and the environment. Swaps also help them obtain assistance from environmental organizations in developed nations to manage their own natural resources. Environmentalists, through the purchase of steeply discounted debt, maximize their investment in tropical forest preservation. In addition they can strengthen environmental organizations in developing nations by including local environmentalists in both policy decisionmaking and the implementation of conservation projects. Debt-for-nature swaps also keep the subject of tropical deforestation on the agenda of the international community and offer small international lending institutions a socially redeeming means of removing bad loans from their ledgers. Finally, each government's authority to choose its own development objectives is only slightly encumbered by sharing decisionmaking authority with the environmentalists. Essentially, the swapping governments have agreed to cooperate. consequently, tropical forests only have as much protection as the tropical states desire. This does not mean that swaps are of little moment. Hopefully, collaboration between conservationists in the developed world and leaders of the developing nations will contribute to a constructive framework for future efforts to preserve the earth's tropical forests.

• OSTI ID: 6652539
• Journal Information: Ecology Law Quarterly; (USA), Journal Name: Ecology Law Quarterly; (USA) Vol. 16:4; ISSN 0046-1121; ISSN ECLQA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
AGREEMENTS
ASIA
BOLIVIA
CENTRAL AMERICA
COSTA RICA
DEFORESTATION
DEVELOPING COUNTRIES
ECONOMIC IMPACT
ECUADOR
ENVIRONMENT
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USA