THEZONAFRANCAVERDE

PROSPECTSFORENVIRONMENTALGOVERNANCEIN AMAZONIA

MarinellaWallis,CEDLA

CentreforLatinAmericanResearchandDocumentation(CEDLA), Amsterdam,TheNetherlands Preparedfordeliveryatthe2012CongressoftheLatinAmerican StudiesAssociation,SanFrancisco,CaliforniaMay2326,2012

THEZONAFRANCAVERDE
PROSPECTSFORENVIRONMENTALGOVERNANCEINAMAZONIA MarinellaWallis,CEDLA

Introduction With todays focus on climate change the struggle between development and conservation remains prominent. This conflict is seen most clearly in the Brazilian Amazon. In the middle of the Brazilian Amazon Rainforest the city of Manaus is situated, a fastgrowing urban area with two million inhabitants. The Amazon region and its forest,duetothelocationofsuchabigcitywithdifficultiesforlogisticsandwith aspirations to grow is an illustrative case of the struggle to be solved between economicgrowthandenvironmentconservation.Amajorelementforthegrowthof Manaus is the Zona Franca de Manaus (ZFM) with its Polo Industrial de Manaus (PIM) focusing on hightech industry and boosting the need for infrastructure. Through the industrial zone, the State of Amazonas had an accumulated growth of 502percentintheprocessingindustrybetween1985and2002,yieldingthestate the highest growth of Brazil in 2004 of 13,9 per cent (State Government of Amazonas 2005). The dynamics of the Manaus industrialization model is reflected by the capability of the PIM to generate employment: 123,000 jobs directly and aboutfourtimesasmanyjobsindirectlythroughbackwardandforwardlinkagesin 2011. Theeconomicdynamicsofthecityandofitsconnectionswiththeoutsideworldwill generate significant environmental impacts. In that context however, innovative alternativesolutionsofferoptionsforsustainablegrowth.Casesinpointareregion wideemploymentpolicieswithemphasisonhighervalueaddedmanufacturingand theZonaFrancascenarioincludingtheZonaFrancaVerde(ZFV)(WallisinvanDijck forthcoming).Rivasetal.(2009)showthattheindustrialzoneisamajorinstrument foravoidingdeforestationandtheycalculatedonthebasisofeconometricresearch thatthePIMaccountedfor72percentlessdeforestation. ThePIMisembeddedintheZonaFrancadeManaus,whichhasveryexplicitgoalsof sustainabilityandboaststheZonaFrancaVerde(GreenFreeTradeZone).TheZFV, initiated in 2003 by the State of Amazonas, has been designed as a programme to generateemploymentandincomeforpeoplelivinginthehinterlandbysustainable use of forests, rivers, and lakes, and puts special emphasis on poverty reduction,

extrativismandsmallscaleagriculture.Oneoftheinnovationsoftheprogrammeis thecreationoftheBolsaFloresta,orForestConservationAllowanceprogramme,to facilitateremunerationofenvironmentalservicesinselectedsocalledconservation units (CUs). The programme covers more than 10 million hectares and more than 7,000families(Viana2008). This paper focuses on the prospects of the Zona Franca Verde as a model of environmentalgovernanceandtriestoassessthesustainabilityofit.Valorizationof theforest,maketheforestmoreworthstandingthancut,willbeamajorelementfor the ZFV to promote conservation policies. In addition, so as to attract finance for sustainablegrowth,whatdoestheZFVprogrammemeanfortheparticipationinthe postKyoto REDD+ mechanism compensating for greenhouse gas reduction? ImportantaspectofgovernanceishowtheZFVfitsinthebroaderframeworkofthe Brazilianconservationpolicy,beitatthemunicipal,federalorstatelevel. Sectionwisethispaperdealswiththefollowingthemes.Thenextsectiondealswith thenecessityofprotectingtheforestwhilethethirdsectionfocusesonthechanging economic model in Amazonia and its implications for the environment. The fourth sectiondealswiththeenvironmentalgovernanceinstrumentofprotectedareaand the importance of a participatory approach. The fifth section focuses on the Zona FrancaVerdeasanewintitiativetoinstallacrosssectionalpolicyforasustainable development model in Amazonia. Section six deals with problems in the implementation of sustainable policies and section seven shows how the ZFV programme develops a new governance framework to implement the sustainable development model. In section eight some final reflections are presented on the oddsofenvironmentalgovernanceintheBrazilianAmazon. Theurgeforconservation DeforestationinLatinAmerica,especiallyintheAmazonbasin,isamajorsourceof climatechangeintheregionitself,andofgreenhousegasessuchascarbondioxide that contribute to global warming. Remarkably, as early as 1911, President Da Fonseca published a decree for the protection of Acre territory, as they saw droughtsandfloodingrelatedtodeforestation: ThePresidentoftheRepublicoftheUnitedStatesofBrazil,observingthatthe disorderly devastation of the forests is producing sensitive and desastrous effects,amongwhichalterationsintheclimaticmakeupofvariouszonesand in the system of rain water in the whole country and of the currents that are dependent on it; recognizing that it is of major and most urgent necessity to prevent that such a phenomenon extends to the Territory of Acre () decretes: Art. 1. In the Acre Territory a forest reserve will be created and be

placed under the jurisdiction of the Ministry of Agriculture, Industry and Commerce..(DecreeN.8.843,of26July1911,translationbytheauthorand accessedontheinterneton16/04/12http://www6.senado.gov.br/legislacao/ ListaPublicacoes.action?id=53549) Protected areas play a vital role in minimizing forest loss and in supplying key environmental services, including carbon sequestration and rainfall regulation, whichmitigatetheadverseimpactsofclimatechangeamidarisingtideofeconomic development in the region. Since 1980, the area of protected forest has expanded rapidlytocoveronefifthofLatinAmericaandmorethantwofifthsofAmazonia,a region whose rain forest captures some 40 percent of Latin Americas carbon emissions (Hall, 2011). Unfortunately, the reserve sector has traditionally suffered from severe underfunding but the possibility of new resources being generated through financial compensation for Reduced Emissions from Deforestation and Forest Degradation (the socalled REDDmechanism) or avoided deforestation underanewKyotoprotocolafter2012mayhelpstrengthentheenvironmentaland social roles of protected areas. The National System of Conservation Units (SNUC), however, is far from consolidated and a number of major implementation and governance challenges still have to be addressed. Designation of an area as protectedandthedemarcationoftheboundariesisarathercomplicatedprocess,as landtitlesmaybeunclearand,inthecaseofpublicland,threedifferentgovernment tiers may be the owner of it: lands may be in federal, state or municipal hands. Moreover,thediscussionaboutthenatureoftheprotectionitselfwillitbeafull protectedareaorasustainableuseareacomplicatesthingsevenmore. Federalpolicytowardsthenorthernregion. For a long time, the northern region has served for the federal government as an areatobecolonizedforsecurity,economicandsocialreasons.Morethan30years, successiveBraziliangovernmentsengagedinprogrammesaimedatopeningupthe Amazon region for settlement and development. Policies implemented by military governments from the mid1960s through the 1970s and 1980s were clearly developmentalist in nature with strong geopolitical overtones. In addition, the region was rather unknown and therefore the idea existed that there were hardly anypeople. Developmentalist policies included the construction of thousands of kilometers of roadslinkingthepreviouslyinaccessibleAmazonregionwithtraditionalpopulation centers in the northeast and south. Attempts were made to settle migrants in planned towns along these new roads. The government also offered generous tax andcreditincentivestoentrepreneurswillingtoinvestintheregion.Althoughthese

policies served to attract settlers and investment capital to the region, resulting landuse patterns were often chaotic and inconsistent with the concept of sustainabledevelopment.Startinginthelate1980s,theBraziliangovernment,along with certain donors and NGOs, proposed territorial planning to bring order and rationalitytolanduseintheAmazonregion(Mahar,2000).

Newapproaches
30yearslaterBrazilsfocusondevelopmentpoliciesismoreonenergyproducing, mining,agrobusinessand(hightech)industrialization,withtheconcomitantneed for infrastructure. The perennial discussions about the logistic needs of the Polo IndustrialdeManausandhowtofulfillthemareanexampleofthis. Backed up by the international infrastructure programme of the Initiative of Integration of Regional Infrastructure (IIRSA), the Brazilian government designed the Programme of Growth Enhancing (Programa de Acelerao do Crescimento PAC),whichisenteringnowitssecondphaseafter2011.Thisprogrammeentailsa budgetof212billionBrazilianreais(about116billionUSdollars)forthenorthern regionuntil2020. Map1.PACplansforthenorthernregionto2020.

Note: Caption text in the upperleft corner translates as: Legal Amazonia 2020. With 212 billion in investments,regionexitsisolationandturnsintoaprotagonistofdevelopmentofthecountry.

ThiswillhaveasignificantimpactasanalertingarticleintheFolhadeSoPaulolast October had the headline: Amaznia vira motor de desenvolvimento (Amazonia becomes the motor for development) on the frontpage and Sada pelo Norte vira

novaopoaoPortodeSantos(ExitthroughtheNorthbecomesnewoptionforthe Santosharbour1)(FolhadeSoPaulo,161011:pp.1,B1andC15)Seemap1. Implication is that part of the economic activities will be redirected from the industrial region in the southeast to the north, as this region is more favourable located to export lanes to the northern hemisphere. Also, the (future) existence of huge hydroelectric power stations may attract more industrial activities to the North. SystemofProtectedAreas These developments will impact on the Amazon forest. However, in general, development initiatives are being pledged to be sustainable, which usually means that only some insufficient compensating measures are taken for the environment.Andalthoughsustainabilityhasbecomeacontainerconceptthatone may be sceptical about, there are governance entities or people that are serious aboutit,supportedbyscienceresults,domesticNGOsandinternationalpressure. It is important to look at the possibilities for a counterbalance to these economic developments and assess what the framework of conservation governance can mean,inparticulartheNationalSystemofConservationUnits.AsHall(2011)noted, protectedareasplayavitalroleinreducingforestloss.Afterthedevelopmentalist government policy of settlements of the past decades, not only the focus of developmentpolicychanged,butalsothefocusonthefunctionoftheAmazonforest has evolved rapidly. Viana explains the old development model by the existing paradigm, mainstream until 2002, the socalled mato paradigm (with the connotationofforestbeingweed).Notsomuchaformalpolicy,ithastakentheform of a deep assumption that forests are inherently bad a symbol of under developmentandshouldthusbeminedfortheirresources,forexampletimberor game,andsubstitutedbymoreproductivelanduses,suchasagricultureandcattle farming(Viana2010). ProtectedareasorconservationunitsarethebackboneofBrazilianenvironmental governance of the Amazon forest, originally created by the Plano do Sistema de Unidades de Conservao do Brasil (Plan for the System of Conservation Units of Brazil), officially published in 1979. The plan entailed specified goals for nature conservationandproposednewcategoriesforthegovernanceofnaturalresources, which had not been included in the legislation of the time, the Cdigo Florestal Brasileiro (Brazilian Forest Code) of 1965 and the Fauna Protection Law of 1967. Variouslegalentitieswereinstalledtoaccompanythisprocess,suchastheSpecial
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SantosistheharbourofSoPaulo,theindustrialheartlandofBrazil.

SecretariatfortheEnvironment(SEMA)2,inchargeofpolicyandmanagement,and the Brazilian Institute of Environment and Natural Resources (IBAMA), the body thatcontrolstheuseofthecountrysnaturalresources. In 1982, after alterations, the law was published under its current name: Sistema Nacional de Unidades de Conservao da Natureza. The most important aspect of this law is that it fulfilled the need for a legal backing of conservation governance withclearlydefinedconceptsandthelegalmechanismstoestablishandcategorize theconservationunits.In2002partoftheprogrammewasredefinedintoAmazon Region Protected Areas (ARPA) programme. In the course of time, the law has undergone continuing modifications, sometimes after years of deliberation in the faceofpersistentdifferencesamongthevariousinterestedparties. Atthetimeofwriting,newchangesofthecurrentCdigoFlorestalhavebeeninthe parliamentary process of approval, which will have serious consequences for the governance of the Amazon forest, notably for the conservation units. Due to considerable differences in opinion, it spurs heated debates between ruralistas3 and environmentalists or conservationists, and the voting about the law has been postponedseveraltimes.

Governanceinstruments
ProtectedAreasorConservationUnitsaregovernanceinstrumentsforsafeguarding theintegrityofecosystemsandtheassociatedenvironmentalservices,suchassoil conservation and watershed protection, nutrient recycling, and climate regulation. Moreover, Protected Areas ensure the right of permanence and the culture of traditional populations and indigenous peoples living there (Verssimo, A. et al., 2010).4Theycanbeclassifiedaccordingtotheirfederationstatus(federal,state,or municipal)andwithregardstothedegreeofpermittedintervention(fullprotection orsustainableuse).By2010,thefederalConservationUnitstotalled610,510km2, while the state areas occupied 563,748 km2. With regards to the level of intervention the Sustainable Use Conservation Units where economic activities under the management regime and resident communities are permitted correspondedto62.2percentoftheareasoccupiedbyConservationUnits(federal andstate),whilethoseunderFullProtectiontotalled37.8percent
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SEMAwasestablishedin1972,whenBrazilparticipatedintheUNConferencefortheHuman Environment,heldinSweden.Afterthismeeting,thegovernmentwaspressuredtointegrate environmentalmanagementwork. 3 Ruralistasorruralistproponents,alsonamedinCongressBancadadaMotoserra(theChainsaw Faction),arepeopledefendingtherighttousetheforestforagriculturalactivities. 4InDecember2010,theProtectedAreasintheBrazilianAmazoncoveredabout2,197,485km2or 43.9%oftheregion,or25.8%ofBrazilianterritory.OfthisConservationUnitsaccountforabout 22.2%ofAmazonterritorywhiletheapproved,declared,andidentifiedIndigenousLandscovered 21.7%.

Figure1.CumulativeAreaofStateandFederalProtectedAreasinBrazil(1970 2006).

Source:Barreto,P.andM.D.Childress2010:169,Figure6.8.

Map2.ProtectedAreasintheBrazilianAmazoninDecember2010.

Source:Verssimoetal.2010:15,Figure1.

The creation of Conservation Units occurred most intensely from 2003 to 2006, when 487,118 km2 of these areas were established. In the case of the Indigenous Lands,thereweretwoperiodswithanumberofgreaterapproval:199094,with85 newunitscovering316,186km2,and199598,alsowith85newunits,whichtotaled 314,061km2,.SeeFigure1andMap2.Despitenotableadvancesinthecreationof protectedareas,therearestillmanychallengestoguaranteeingtheirconsolidation andeffectivesocioenvironmentalprotection. Next to the planning of Conservation Units, the management of CUs is of critical importance,nottheleastinordertogetentrancetotheREDD+mechanismwithan approved management plan. In case of Conservation Units, half do not possess approved management plans and 45 per cent do not have a management council. Moreover the number of public staff in these Protected Areas is only 1 person for every1,872km2(Verssimoetal.,2010). In terms of governance, the Amazon Institute of People and the Environment (Imazon) and the Socioenvironmental Institute (ISA) have listed the following priorityactionstobeperformedsoastoconsolidateprotectedareas(Verssimoet al.2010):

Curbing irregular uses and occupations, as well as deforestation and forest degradation; Amplifyingthesourcesoffinancingandassuringmechanismsfortheeffective transferoffinancialresources; Guaranteeinglegalprotection; Enhancing public management, allocating more qualified personnel to the field, elaborating the pertinent management instruments and undertaking theirimplementationinaparticipatorymanner; Amplifying and strengthening management councils in the Conservation Units and guaranteeing the participation of the population in the Indigenous Lands; Assuming the challenge of consolidating land management plans for the protected areas, which also should include an environmental agenda for IndigenousLands ConcludingtheprocessforrecognizingIndigenousLands.

Federalandstateagenciesresponsibleformanagingprotectedareasfaceenormous challenges for the effective protection and sustainable use of these areas. Implementationofprotectedareasrequiresthefollowingsteps(1)thepreparation of management plans, (2) the establishment of advisory councils who are respon sible for reviewing management plans and for their implementation, (3) the

installationofbasicinfrastructureandallocationofpublicofficers,(4)enforcement against illegal activities (e.g., deforestation and illegal logging) within protected areas, and (5) short and longterm financial support mechanisms. Within the impressive size and scope of the protected area system, these specific implementationgoalshavebeenhardtoreach. Note,inthisrespect,thatuntilrecentlymostprotectedareaswereratherfarfrom theimpactofeconomicactivitiesandpassiveprotectionwassufficient.Atpresent, 84percentofprotectedareasarewithinthereachofeconomicactivitiesandface increasingpressureduetothegrowthofinfrastructure(e.g.,roads,electricalgrid) and the rise of commodity prices (timber, minerals, meat, and soybeans) (Barreto andChildress2010). Economicpressureremains Protectedareasarenotimmunetotheimpactofeconomicpressure.From1998to 2009 deforestation in these areas reached over 12,000 km2. Moreover, a vast networkofillegalroadsisadvancingintosomeprotectedareas,particularlyinthe Sustainable Use Conservation Units, where there are a 18 km of roads for every 1,000km2underprotection.Alargeportionoftheseroadsisassociatedwithillegal logging.Forthedeforestationdatainthedifferentcategoriesofpreservedareassee Figure 2, where the slope of the lines is important as the starting point is built on previousdeforestationofthearea.(Verssimoetal.2010). Mahar (2000), Gutberlet (2002) and Fearnside (2003) show that a planning from aboveintheprocessofdemarcatingprotectedareascanbeanimportantfactorin thesedeforestationprocessesforinstanceplannedunitsmayappeartobetoofar awayfrommarkets,incombinationwithunclearlandtitles.Butnexttothis,strong politicalforcesmaybeinplay. Figure2.AccumulateddeforestationintheProtectedAreasintheBrazilianAmazon upto2009.

Source:Verssimoetal.:62,figure11.

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AsMahar(2000)pointsout,theprocessofdemarcationofpreservedareas,asaway ofterritorialplanning,byitsverynature,tendstodividesocietiesintowinnersand losers.Successinimplementingaprescriptiveplandependsontheincentivesthe land users have to adjust to or confront the newly installed situation. Therefore, a participative method is essential, and it is important to identify beforehand the various groups that have a stake in zoning including nonlocal groups and to evaluatethestrengthoftheirincentivestoopposevariousrestrictionsonlanduse. Gutberletputsthisinevenstrongerterms.Shestressestheneedforaparticipative methodofcreatingconservationareasinordertoalterthepowersandinstitutions thatbeandthedevelopmentmodelthatispursued.Theonlywaytotransformthe economy into a sustainable one is to listen to the people on the ground and to researcherswhohavebeenforsolongengagedinsustainableactivitiesandtotake needsortheirsuggestionsseriously(Gutberlet2002). IntheareaofplanninginfrastructurevanDijck(2012)notesthattheparticipatory approachmayinvolvebothprovisionofinformationontheplansandthecollection of information from the population to improve these plans. By informing the local population about landuse plans, a participatory approach may contribute to transparency and reduce uncertainty and misconceptions. By doing so, it may enhance efficiency and speed up implementation. At the same time, organizing seriesofmeetingswithstakeholdersintheimpactareamaybetimeconsumingand costly(vanDijck,2012). Theparticipatoryapproachmayfacilitateinclusionoflocalknowledgeoffloraand fauna,biodiversityhotspots,thefunctioningofecosystems,ondependenceoflocal communitiesonecosystems,andonlocalandregionalagroforestrypotentialsthat maybeactivatedbytheconstructionofaroad,oralternatively,maybeendangered by it. The role of interviews and discussions with the local population and its representativesmaybeparticularlysignificantwhenassessingperceivedpotentials andrisks,andformulatingaplanofactioninsupportofpositiveincomepotentials and to mitigate negative environmental and other welfarereducing impacts (van Dijck,2012). Partypolitics Party politics is a pervading consideration in decisions to establish conservation units. Particularly at state level, environmental authorities may act directly to generate political support for the governors who appoint them, while politicians from opposition parties are likely to take opposing stands on conservation issues. Butalsothedifferentgovernmenttiersmaynothavethesamepolicybase.Federal, state and municipal governments frequently have conflicting priorities for the creationofconservationunitsastheyhavedifferentconstituencies.

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Tensions between different levels of government, different groups of NGOs, and between the public versus private sectors are often manifest. Disparate interests help explain the plethora of programmes and types of conservation units in Amazonia. According to Fearnside On virtually every issue there exists a full complement of interest groups ready to do battle on behalf of their particular interest.Eachgroupoforganizationsmakesitscasebyappealingtoagreatergood suchasbiodiversityconservationorpovertyalleviation.(Fearnside2003:757) Inthecurrentpolicy,therepresentativesofthestategovernmentsshouldbeheard whenfederalconservationconservationunitsarecreatedwithinastate,andfederal environmental authorities should be heard when state units are created. Ignoring this policy can have disastrous results. For example, in 2002 the governor of Par announced that he would not allow any further federal conservation unit to be createdinthestate,followingamobilizationbythemayorsofmunicipalitieswhere 2.3millionhaofconservationunitsweretobecreatedbyIBAMAonlandthathad beenconfiscatedfromgrileiros(landswindlers). In states such as Par, the state governments are anxious to involve the municipal governmentsandavoidunwantedconservationunits.Thistendencyisreinforcedby legislation limiting the fraction of stategovernment budgets that can be used for payroll expenses, thus motivating the states to pass as many functions as possible (such as guarding reserves) to the municipal governments. Compared to state governments,municipalgovernmentsarenormallyclosertotheirconstituencyand hence more subject to local pressures from sawmill owners and other interest groups,oftenmakingthesegovernmentslesslikelytoputapriorityonconservation overshorttermgain(Fearnside,2003:758). Internationalinfluence AlthoughinternationalpressurebyNGOs,nations,orinternationalbodieswiththeir recurrent conferences, are often stimulating for initiatives about conservation, opponents are eager to criticize this support by spinning complot theories. They diffuse the widespread belief in Brazil that the world is engaged in a permanent conspiracy to attack Brazilian sovereignty over Amazonia. In a sociological survey, conductedinthewakeoftheRioSummitin1992,71percentofrespondentsagreed withthestatementIamafraidAmazoniawillbeinternationalizedand75percent agreed that Foreigners are trying to take over Amazonia (Barbosa, 1996). This result created a permanent temptation for any politician to denounce real or imagined threats to sovereignty. A notorious example of successfully applying this tacticasabasisofpoliticalsupportisGilbertoMestrinho.AsgovernorofAmazonas he even threatened to order the Military Police to machinegun teams from the

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National Indian Foundation (FUNAI) if they attempted to demarcate indigenous landsinhisstate.Assenator,hedeclaredinthesenateplenarythattheinitiativeof theecologicalcorridorsprojectwouldputAmazonasinaplastercast.Whydothey do this? Emptying [Amazonia] makes it easier to dominate [the region]. . . .[It is] usedasastrategyforthefutureinvasionofoursovereignty.(Adolfo,1999apudcit. inFearnside2003). TheZonaFrancaVerde. In2003,thenewlyelectedgovernmentoftheStateofAmazonasimplementedmajor institutionalandpoliticalreforms.Theircentrepiecewasasustainabledevelopment programme,namedProgramaZonaFrancaVerde(ZFV,orGreenFreeTradeZone Programme). This programme became one of the most important policies of Governor Eduardo Braga. Conceptually, ZFV is in line with international ideas of conservation, such as Our Common Future (Brundtland Commission, 1987), Agenda21(Rio1992Conference)andtheUNMillenniumDevelopmentGoals.Itwas adjustedtofitthesocioeconomicandenvironmentalrequirementsoftheAmazonas environment: the large area of forest, relatively little forest degradation, a natural system of riverbased transportation, and the Manaus Free Trade Zone policies. Moreover, the Programme could build on past experience of initiatives in neighbouringstatesinforestmanagement,fisheriesmanagementandagroforestry. (Viana2010). The ZFV Programme was conceived as a coordinating instrument of crosssectoral policies aimed at promoting sustainable development. Its name was an attempt to conveytheconceptofsustainabilityinpopulartermstotheAmazonpopulation.The name Zona Franca or Free Trade Zone was partly chosen because of the resource linkagewiththeFreeTradeZoneofManaus.Butalso,forthemajorityofpeoplein Amazonas, the phrase free trade zone has come to mean economic development and jobs (as in the Manaus industrial complex). Green is associated with natural resources: forests, rivers and lakes. Green Free Trade Zone thus means, in simple terms, economic development and job creation on the basis of sustainable management and protection. Communicating this simple message was an essential componentofthestrategytogainpoliticalsupportforpolicychange.Inpractice,in contrasttotheZonaFrancadeManauswithitstaxexemptions,therewerefewtax freeelementsgrantedtotheprogramme.Anoteworthycaseisthetaxfreepolicyfor allnontimberforestproductsofAmazonas,implementedin2005(Viana2010). The basic mission of the ZFV Programme is to put a new forest paradigm into practice. Policies aimed at reducing deforestation should place less emphasis on command and control or policing, and more on financially rewarding those who

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keep their forests standing. The objective was to add tangible value to forest products and environmental services, so that forest management became more economicallyattractivethanagricultureorcattleranching. Fromaninstitutionalpointofview,therewerefourinitialchallenges:first,tocreate aninstitutioncapableofdesigningconsistentcrosssectoralpoliciesforsustainable development(SDS);second,toreformIPAAMsothatgreateremphasiswasgivento forestry and fisheries; third, to create an institution to promote sustainable land uses (AFLORAM, which later became ADS); and fourth, to create a land tenure agencytosecurerightsforthoseforestdwellersandriverinepopulationsthateither lack or have fragile documentation of their land rights (ITEAM Amazonas Land TenureInstitute).Improvingtheagencieswassimplynotenough;therewasaneed to create a new institutional culture beyond command and control the core business of IPAAM. SDS focused on policy design, AFLORAM/IDAM on forestry extensionandITEAMonlandtenure. ThedriveroftheZFVProgrammewasthenewlycreatedstateentity,theSecretariat forEnvironmentandSustainableDevelopment(SDS),whichcametoworkinclose cooperationwiththeSecretariatofAgriculturalProduction(SEPROR)in2005.The SDS was established as an umbrella institution, with an assignment to coordinate thedesignandimplementationofthestatespolicyforenvironmentandsustainable development, which activities had been dispersed within the policy of regular entities. Prior to that, the Amazonas State had only the Amazonas Environmental Protection Institute (IPAAM) as a separate agency, focused on the environmental licensingofthehightechindustriesinManaus,withonlyahandfulofstafftodeal withthegreenagendaofforestry,agricultureandfisheries. TheBolsaFlorestaProgramme The ZFV was designed as a programme to generate employment and income by sustainableuseofforests,rivers,andlakesandispartlyfinancedbytheZFM.Oneof the innovations of the programme is the creation of the Bolsa Floresta or Forest Conservation Allowance programme, to facilitate remuneration of environmental services in selected conservation units. The Programme is administrated by the publicprivate nongovernmental organization Fundao Amazonas Sustentvel (FAS) andisalready andexpectedly financed bypayments for reduction of carbon emissions.Accordingtotheprogramme,communitiescommittozerodeforestation inprimaryforestareasandtheFAScommitstoimplementingthefourcomponents of the Bolsa Floresta programme: (1) incentives and investments in infrastructure for smallscale sustainable production; (2) investments in health, education, transport and communication; (3) strengthening of social institutions; and (4)

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participation of families in deforestation reduction activities and providing them with a supplementary income. The programme covers more than 10 million hectaresandmorethan7,800families(Viana2008). TheREDD+mechanism Spanning an area of more than 500 million hectares, the Amazon region offers compellingexamplesofthegovernancechallengesinvolvedindealingwithclimate change,landuse,andlandtenureissuesonalargescale.Theregionharboursabout onethird of the worlds remaining tropical forests. Deforestation, as a major phenomenon, accounts for more than 50 percent of Brazils greenhouse gas emissions(BarretoandChildress2010). The region may benefit from the Bali Action Plan (UN 2007), signed by more than 180 nations in December 2007, which calls for policy approaches and positive incentives for reducing emissions from deforestation and forest degradation in developing countries This could involve compensating farmers who forgo deforestation(avoideddeforestation)orwhoinvestinreforestationorconservation plansintheframeworkoftheSNUC.Plansforsuchaschemeareunderdevelopment through the creation of the Amazon Fund5 (2008), which will be assisted by a substantial grant from the government of Norway of 1 billion US dollars over a periodof10years. CGEE et al. argue that Brazil is a country wellfitted to take part in the REDD+ scheme, as there are many plans and institutions in place designed to counter deforestationandtheemissionofgreenhousegases.WiththeapprovalofaFederal Lawin2009,whichsetuptheNationalPolicyonClimateChange(PNMC),andwith the experiences derived from the Amazon Fund, Brazil came in the vanguard and ensured its eligibility in a future REDD mechanism. In addition, the states of Brazilian Amazonia are launching their own plans for controlling deforestation, while some (Par, Mato Grosso, Acre, and Amazonas) have even established quantitativetargetsfordeforestationreductionandstateREDDplans.Thiscontext confers on Brazil the ability to negotiate within the UNFCCC, including the establishment of more ambitious obligatory targets in a post2012 international agreement, and to construct its own national REDD strategy. In additon, there are numerous REDD pilot projects scattered throughout Brazil. These efforts suggest that the mechanism of REDD can be supportive of the conservation of standing forestsandthevalorizationofitsmultiplecobeneficiaries.

TheAmazonFundisaimedatraisingdonationsfornonreimbursableinvestmentsineffortsto prevent,monitorandcombatdeforestation,aswellastopromotethepreservationandsustainableuse offorestsintheAmazonBiome,underthetermsofDecreeN.6,527,datedAugust1,2008.

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Theprogress achieved overthelasttwodecades hasenabledBraziltobecomethe first developing country to formalize carbon emission reduction targets. The ZFV appears to be at the forefront. Its Juma project already participates in the REDD mechanism(zieBoxtakenfromViana2010,p.41)andon19April2012,theJuma project received an EcoIndex Award from the Rainforest Alliance in the category BestLearnedLessons2012withtheargumentationValuableadvice,solutionsand formulasforsuccessfromconservationcolleagues.

For international companies, dealing with carbon credits appears to be attractive. AnarticleintheManausdailyAmazonasemTempoEstrangeirosnegociamcarbono com indgenas (Foreigners negociate carbon with indigenous people) mentions thatmorethan30indigenousgroupshavebeenapproachedbyforeigncompanies interested in exploring carboncredit contracts. One deal has already been

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concludedfor30yearswiththeindigenousgroupMundurucuinJacareacangainthe state of Par. The group received 120 million US$ for an area of 2,38 million hectares.However,theregulatingbodyofFUNAI(NationalIndianFoundation)said that no contract has judicial validity as Brazil not yet has established the legal frameworkfortheREDDsystemofcarboncreditsandthatthecasewassenttothe AttorneyGeneral.Atthesametime,FUNAIurgeslocalpeople,inordertoguarantee that there will not be an infringement of their rights, to ask FUNAI for legal assistance(AmazonasemTempoon16March2012).

Theendofdeforestation
According to Nepstad et al. (The End of Deforestation, 2009) Brazil has two major opportunities to end the clearing of its Amazon forest and to reduce global greenhousegasemissionssubstantially.Thefirstisitsformalannouncementwithin United Nations climate treaty negotiations in 2008 of an Amazon deforestation reduction target, which prompted Norway to commit $1 billion if it sustains progress toward this target. The second is a widespread marketplace transition within the beef and soy industries, the main drivers of deforestation, to exclude Amazon deforesters from their supply chains. According to their analysis, these recentdevelopmentsfinallymakefeasibletheendofdeforestationintheBrazilian Amazon, which could result in a 2 to 5% reduction in global carbon emissions. Estimationsarethat$7to$18billionbeyondBrazilscurrentbudgetmaybeneeded to stop the clearing and this amount of money could be provided by the REDD mechanism for compensating deforestation reduction that is under negotiation withintheUNclimatetreaty,orbypaymentsfortropicalforestcarboncreditsunder aU.S.capandtradesystem6. Policyandreality InhisarticleBrazilsenvironmentalpoliciesfortheAmazon:Lessonsfromthelast20 years, Fearnside (2009) starts with a pessimistic quotation, Those who cannot

remember the past are condemned to repeat it, referring to the developmentalist projects of the 1970s en 1980s, such as the Transamazon Highway,thePolonoroesteprogramme,andaseriesoflargedams.
Although nowadays an environmental impact study and report, a socalled Eia Rima,havetobedoneaswellaseconomicviabilitystudiesthatcalculatethecosts andbenefitsintermsofmoney,notmuch,accordingtoFearnside,haschanged.The currentphenomenonofdevelopingmajorprojectsarereportedlysettinginmotion
6Inanemissionstradingorcapandtradescheme,alimitonaccesstoaresource(thecap)isdefined

andthenallocatedamongusersintheformofpermits.Complianceisestablishedbycomparing actualemissionswithpermitssurrenderedincludinganypermitstradedwithinthecap.

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chains of events with enormous environmental and human consequences and are still decided by few high officials before any environ mental or economic viability studyisdone.ThedammingoftheXinguRiveratBeloMonteisastrikingexample. Inthepast,theWorldBankandInterAmericanDevelopmentBankwereinvolvedin largescale development plans and cooperated directly with the Brazilian government. After many protests of the negative consequences of these development plans, the World Bank retracted gradually, and together with the Brazilian government especially the Ministry of the Environment was co administrator of the PPG7 Pilot Program to Conserve the Brazilian Rainforest (19922008)7. The PPG7 sponsored a wide variety of initiatives throughout Brazilian Amazoniaforfinancingsmallscalesustainabledevelopmentprojectsrun by grassroots NGOs, environmental management support for selected areas in Amazonian states, forestry management, vrzea (floodplain) management, ecologicaleconomic zoning by statelevel agencies, demarcation of indigenous land, fire prevention and control, support for science and technology related to Amazonia, andprotectedareaplanningandcreationinecological corridors.These Figure3.Deforestationunderthreescenarios.

Note: The first scenario simulates deforestation from 2005 into the future under businessasusual conditions that assume economic trends and governance levels through 2003. The intermediatecurveisthecurrentdeforestationreductiontargetoftheBraziliangovernment, andthelowercurveendsdeforestationin2020. Source:Nepstadetal.,2009

7PPG7:ThePilotProgramwasproposedinameetingoftheG7,groupofseventopindustrialized

countriesinHouston,Texas,in1990.ItwasappovedbytheG7andbytheEuropeanCommissionin Decembre1991.In1992,duringtheUNConferencefortheEnvironmentandDevelopment,inRio92, theprogrammewasofficialylaunchedinBrazil.

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projects had varying degrees of success, the most notable contributions to the environment beingdemarcating indigenous landsandstimulating theformation of grassroots NGOsinordertoqualify forfunding demonstration projects(Fearnside 2009). However, despite these green initiatives, in practice, much of the policy with environmental impactinAmazoniaisnotmadebytheMinistryoftheEnvironment butbytheministriesthatbuildmajorpublicworkssuchashighwaysanddams.The Ministry of Mines and Energy, which is responsible for hydroelectric dams, is therefore a major actor. Its subsidiary, Eletrobrs, is one of the few government agenciesthatengagesinlongrangeplanning.Unfortunately,thisplanningisalmost entirely devoted to maximizing generating capacity to accompany an expected exponentialincreaseindemand,whichisoftenerroneouslyportrayedasneedfor electricity. Virtually never is there any questioning of what the electricity is to be usedfor.Theexponentialprojectionsofdemandarenotonlyincorporatingallofthe inefficiency and waste in current energy use, but also ratify plans for a vast expansion of electrointensive export industries, especially primary aluminum (Fearnside2009). ThepositionoftheZFV The future of the policy reality in Brazil, with many developments in the area of conservation governance as well as largescale economic progress, is hard to predict.TherecentvotingontheCdigoFlorestalisaclearexampleofhowpolitical forces can change prospects of conservation governance profoundly. The Manaus daily A Crtica Cdigo florestal: o incio do fim das florestas (Forest Code, the beginningoftheendoftheforests)wroteon25April2012TodaytheChamberof Representativesshowedwhattheywant:theendoftheforestsinBrazil.Thelatest alterations of the Forest Code mean total amnesty without restriction for illegal deforestation perpetrators and a very flexible status of the Conservation Units. Although President Dilma Rousseff is in the position to veto the outcome of this voting a promise she made in her election campaign many doubt that this will happen.Alotoflobbyinghasbeendonemakinganappealtoherresponsibilityand toconvinceher(andthepublic)ofthedesastrousconsequencesofthisnewForest Code(acaseinpointistheopenletterintheAnnex). Hence,acloserlookattheZonaFrancaprojectmayyieldsomeclueshowtolockin sustainableprojectsandwhatthelessonslearnedareinbridgingenvironmentand development,theoryandpractice(Viana2010).Inparticular,itisinterestingtosee the broad ZFV vision of the necessities to influence popular ideas, media, poltical entities and to raise awareness by starting education projects. But also the

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programme is aware of an important starting point of making the people have an interestintheprogramme.TheBolsaFlorestaisaclearcase. Thereappears broadrecognitionoftheresultsandsuccessoftheZFV. Amongstthe most important indicators of this success was a study by the United Nations Commission forEconomicDevelopment ofLatinAmerica and the Caribbean(CEPAL, 2007), which carried out an independent assessment of the work by the ZFV. Seeking lessonsfrom public policy innovations, the Cepal report praised the organizational proposals aimed to strengthen the presence of public authorities in the promotion of sustainable development in areas far from the capital, as well as the aim to encourage civil society participation in the sustainable use of natural resources. To accomplish these objectives, consolidation between the State Environmental Council and the Municipal Environmental Secretariats created in numerousprefectureswillbefundamental(CEPAL,p.34). InthewordsofVirglioViana,theprojectcoordinatoroftheZFV,itbecomesclearhow muchneedstobedonetostrengthenthefoundationsforsustainabledevelopment, (2010,p.11): It is a difficult task to postulate lessons learned when interventions take place in a complicated context. Successes of sustainable development policiesdepend ontheireffectivenessandefficiencyindealingwithmultiple local factorsand circumstances. Policy design requires a blend ofscientific understanding ofthe factorsdriving economicand social behaviour, and a political understanding of the context in which policies are implemented. Movingfromanappropriatepolicydesigntotheprogressiveaccumulationof smallachievementsistheartofpolicyimplementation. Hence, the nine lessons learned by the ZFVproject, must entail an enormous amountofpolicyinstrumentsandactivities. Lesson 1. Change the natural resource liquidation paradigm of development by makingforestsworthmorestandingthancut.Instrumentshavebeentaxincentives forforestproductsandtechnicalassistancetoforestry. Lesson2Createpoliticalsupportforsustainabilityandtheenvironmentbyfocusing on jobs, income, votes and other mainstream incentives. Instruments have been improvingjobs,fisheriesmanagementandtimbermanagement. Lesson 3 Place environmental and sustainability concerns at the centre of policy design and implementation. Instruments: expanding environment institutions to becomesustainabledevelopmentcatalysts,suchasSDSandADS.

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Lesson 4 Pay people for environmental services rendered. Instrument Bolsa Floresta:aninnovativesolutiontofightdeforestationandpoverty. Lesson 5 Invest in good communications especially relations with the media: helping journalists to bridge to politicians, the public and the forests. Instruments havebeenworkshopswithjournalistsandfieldtrips. Lesson 6 Provide simple and attractive green solutions: engaging the public in identifyinganddevelopingsolutionsthatmosthelpthemandtheforests. Lesson7.Thinkinsolutions,notinproblems. Lesson 8. Make bureaucracy work for the people. Reduce bureaucracy and increaselegalityof forest management. Lesson 9. Invest in partnerships for policy implementation, such as a partnershipwiththeNationalCouncilofRubberTappers.

FromAmazonastoBrazilaNationalProjectfortheAmazon
The ZFV has the ambition to be able to extend relevant Amazonas innovations to other states, and to ensure that appropriate federal policies are supportive of further progress in Amazonas. However, key questions about the development modelofAmazoniaarenotyetanswered.ThereisnotyetaNationalProjectforthe Amazon,amacrodevelopmentstrategy,oravisionforthefutureoftheAmazon. Different stakeholders have different values and interests and therefore differing opinionsaboutthefateoftheAmazonforests.Alloftheirworldviewsare,toalarge extent,legitimateaslongasthereisnounifiedpolicy. But it is time that a such a policy is built on important utilitarian justifications for Amazonconservation:(i)thepotentialforsustainableproductionoftimberandnon timber forest products based on the Amazons rich biodiversity; (ii) the roleofthe Amazon in regional and global climate regulation, especially carbon storage and sequestration, maintaining water vapourcirculation processes and rainfall regimes; (iii) the value of ethnoecological knowledge among traditional and indigenous peoples;(iv)theconservationofbiodiversityofglobalvalue;and(v)thepotentialfor all of these attributes to contribute to the eradication of poverty among Amazon peoples(Viana2010). Buildingapolicyconsensusisnosimpletaskasthereareconflictsofinterest.Itis moreeasilyachievedwhenstakeholdersarepresentedwithsolidfactsandfigures onapproachesthatworkwell.Itappearsalsoeasierwhentheviewsandideasofall key stakeholders are explored, from environmentalists and Indians to cattle ranchersandminingcompanies.

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FinalReflections
Inthispaper,wefoundmixedresultsinevaluatingtheprospectsforenvironmental governance. Measures to protect the Amazon rainforest through the system of conservationunits,haveproducedaratherelaboratedframeworkofenvironmental governance instruments. The implementation, however, of these instruments has beenfarfromconsolidated.Andtherearealotofeconomicdevelopmentsatstake thatmayharmtherainforest. Assessingtheoddsofdeforestation,thereareoppositepointstobeconsidered.The economic pressure to open up parts of the Amazon forest will only rise, and the plans of PAC II and IIRSA may entail serious threats. The flourishing of the city of ManausanditsZonaFrancawiththePoloindustrial,togetherwithglobaleconomic developments,mayhaveopenedeyesofpolicymakersforthestrategicadvantages of the northern region. However, the idea of adding sustainability to development plans seems to have taken root as well, in particular through the impact of local droughts and floods. Succesful results by international climate change conferences are of eminent importance to support environmental governance initiatives, in particularinrelationtotheREDD+mechanism. This paper tried to show how complicated it is to design and implement conservation policies in a territory of 4,2 million km2 an area the size of the European Union that had no tradition of landuse planning. Valorization of the forest will be essential to support conservation policy, and the slogan: Make the forest more worth standing than cut is trying to raise awareness for this. Tourism, Environmental Services and the REDD+ system are examples. However, the recent amendments of the Cdigo Florestal give rise to pessimism. Hopefully, the Rio+20 climate conference, to be held in Rio do Janeiro in June 2012, may give a (short lasting?)boosttoconservationinitiatives.TheZFV,initiatedinapropitiouspolitical climate, seem to have the potential to weather the dangers of conservation backlashes, as they seem to have locked in a broad agenda to alter the developmentalmodel.ThequestioniswhethertheZonaFrancaVerdecanmeetthe prospectsneedsofanevolutionasaregionwidedevelopmentmodel.

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REFERENCES ACrtica,Cdigoflorestal:oinciodofimdasflorestas,Manaus,250412(internet version). Amazonas Em Tempo, Superintendente do Ibama Mrio Lcio: Ibama teve poder reducido,Manaus,10412,p.A7. Amazonas Em Tempo, Estrangeiros negociam carbono com indgenas, Manaus, 16 0312,p.C2. Barbosa,L.,ThePeopleoftheForestagainstInternationalCapitalism:Systemicand AntiSystemic Forces in the Battle for the Preservation of the Brazilian Amazon Rainforest, Sociological Perspectives, Vol. 39, No. 2, Special Issue EnvironmentalConflict(Summer,1996). Barreto, P. and M.D. Childress, Land Tenure and Climate Change Mitigation in the BrazilianAmazon,Par.6.2.in:Deininger,K.,etal.,InnovationsinLandRights Recognition, Administration, and Governance, The World Bank, GLTN , FIG , andFAO,2010. Baud,M.,Castro,F.de,Hogenboom,B.,EnvironmentalGovernanceinLatinAmerica: TowardsanIntegrativeResearchAgenda,Explorations,EuropeanReviewof LatinAmericanandCaribbeanStudies,nr.90,April2011,pp.7988. CEPAL, Anlise Ambiental e de Sustentabilidade do Estado do Amazonas, Estado do Amazonas,SDS,GTZ,OurWorld,UnitedNations,June2007. CEPAL, Evoluo das Polticas de Desenvolvimento Sustentvel no Estado do Amazonas 20062009. Avanos em direo s recomendaes realizadas por ocasio da Anlise Ambiental e de Sustentabilidade do Estado do Amazonas, estadodoAmazonas,SDS,GTZ,OurWorld,UnitedNations,March2010. CGEE,IPAM,SAE,REDDnoBrasil,umenfoqueamaznicoFundamentos,critriose estruturasinstitucionaisparaumregimenacionaldeReduodeEmissespor DesmatamentoeDegradaoFlorestal,REDD,Brasilia,D.F.,2011. Dijck, P. van, The impact of the IIRSA road infrastructure programme on Amazonia, Routledge,forthcoming. Dijck, P. van, Strategic Environmental Assessments (SEAS) as an Instrument for ParticipationandKnowledgeBuildingInEnvironmentalManagement,Centre for Latin American Research and Documentation (CEDLA), Amsterdam, 2012,Preparedfordeliveryatthe2012LASACongress,SanFrancisco.

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Fearnside, P.M., Conservation Policy in Brazilian Amazonia: Understanding the Dilemmas,WorldDevelopment,Vol.31,No.5,pp.757779,2003. Fearnside, P.M., The theoretical battlefield: accounting for the carbon benefits of maintainingBrazilsAmazonforest,Perspective,CarbonManagement,April 2012,Vol.3,No.2,Pages145158. Fearnside,P.M.,BrazilsenvironmentalpoliciesfortheAmazon:Lessonsfromthelast 20years,ContributionforthepanelonModelsofDevelopment:AnAnalysis of the Last 20 Years of Public Policies for the Amazon Region in the conferenceonEnvironmentalPolicy,SocialMovements,andScienceforthe BrazilianAmazon,UniversityofChicago.56November2009. FolhadeSoPaulo,Amazniaviramotordedesenvolvimento,SoPaulo,161011: frontpage. FolhadeSoPaulo,SadapeloNorteviranovaopoaoPortodeSantos,161011: B1. Gutberlet, J., Zoneamento da Amaznia uma viso crtica, Estudos Avanados 16 (46),UniversityofSoPaulo,June,2002. Hall, A., Getting REDDY, Conservation and Climate Change in Latin America, Latin AmericanResearchReview,Volume46,SpecialIssue'ContemporaryIssues onEcology,SocietyandCultureinLatinAmerica',pp.184210. Mahar, D.J., AgroEcological Zoning in Rondnia,Brazil:What arethe Lessons? in: Hall, A. (ed), Amazoniaatthecrossroads:the challenge of sustainable development,ILAS,London,2000. Nepstad, D. et al., The End of Deforestation in the Brazilian Amazon, Science, Volume326,Number5958(20091204):pp.13501351. OGloboG1,RedeAmaznica,ExtrativistadoAMameaadademorteporconflitos agrriosexecutada,04/04/2012,accessedat http://g1.globo.com/amazonas/noticia/2012/04/extrativistadoam ameacadademorteporconflitosagrarioseexecutada.html StateGovernmentofAmazonas,AmazonasSustainableDevelopmentProgram,Green FreeTradeZone,Manaus,2005 Verssimo, A., et al., reas Protegidas na Amaznia Brasileira Avanos e Desafios, ImazonandInstitutoSocioambiental,BelmandSoPaulo,March2010. Viana, V. M., Bolsa Floresta (Forest Conservation Allowance): an innovative mechanism to promote health in traditional communities in the Amazon, EstudosAvanados,22(64),UniversityofSoPaulo,December,2008.

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Viana, V. M., Seeing REDD in Amazon. London, IIED. Available at www.iied.org/pubs/pdfs/17053IIED.pdf,2009. Viana, V., Sustainable Development in Practice: Lessons Learned from Amazonas, Environmental Governance No. 3. International Institute for Environment andDevelopment(IIED),London,2010. Wallis,M.,ImpactofanurbanfrontierintheAmazon:ThecaseofthePoloIndustrial ofManaus,CentreforLatinAmericanResearchandDocumentation(CEDLA), Amsterdam, 2010, Prepared for delivery at the 2010 LASA Congress, Toronto. WWFetal.,RetrocessosdoGovernoDilmanaAgendaSocioambiental,PublicLetter,6 March, 2012, signed by twelve organizations concerned about the preservation of the socioenvironmental equilibrium in the country and supporting nondestructive development, in preparation of the RIO+20 ConferenceinRiodewJaneiroinJune2012 http://ipam.org.br/biblioteca/livro/RetrocessosdogovernoDilmana AgendaSocioambiental/645. Englishversion:PublicLetterDilmaGovernmentBackslidingonSocio EnvironmentalIssues: http://www.socioambiental.org/banco_imagens/pdfs/Letter__Setbacks_Dil ma_government_6_mar2012_ingles.pdf

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ANNEX

PUBLICLETTER DILMAGOVERNMENTBACKSLIDINGONSOCIOENVIRONMENTAL ISSUES MARCH6,2012 ThefirstyearofPresidentDilmaRosseffsgovernmentwasmarkedbythemost intensebacktrackingonsocioenvironmental issuessincetheendofthemilitary dictatorship,totallyreversingtheformertendencytoaneverimproving sustainabledevelopmentagendathatgovernmentshadbeenimplementingsince 1988andthathaditshighpointwhentheLulagovernmentsucceededincurbing therateofdeforestationintheAmazon.Theprogressachievedoverthelasttwo decadeshasenabledBraziltobecomethefirstdevelopingcountrytoformalise carbonemissionreductiontargetsandthathasstronglycontributedto establishingBrazilspositionasaninternationalleaderinthesocio environmentalsphere. Flyinginthefaceofthehistoricaltendency,variousspecificcasesillustratethe currentmovestoreverseitanddismantleallthehardwongains.Attemptsto emasculatethecurrentlegislation,likethenegotiationstorushthrough CongressaForestLawreformbillutterlyunworthyofthename,andthe recentlyapprovedComplementaryLaw140regulatingArticle23oftheFederal Constitutionarethemostseriousexamples.Thelistislongandincludesthe interruptionoftheprocessforcreatingprotectedareas,whichoccurredassoon asthepresentadministrationtookofficeandactuallyreachedthepointof reducingtheareasofseveralexistingprotectedareasbymeansofaPresidential Decree,defyingthelegislationinforceandinfringingonBrazilsinternational commitments.Anothersignificantareaofgovernmentneglectisthefreezingof processesfortheformalrecognitionofindigenousandquilombolalandswhileat thesametimeenvironmentallicensingforhugepublicworkswithobvioussocial andenvironmentalproblemsareissuedattopspeed. ThoseprocessescontraststronglywiththepromisesmadebythePresident herselfduringthepresidentialelectioncampaignin2010,toblockanypartofthe newForestLawthatwouldleadtoreductionsinAreasofPermanentProtection orLegalReserveareasoranyproposalsforgrantingamnestytothosethat carriedoutillegaldeforestation.The proposalthatisbeforetheCongressforfinalvotinginthenextfewdays includesallthosepointsandithasthesupportoftheparliamentaryblockof thegovernmentspoliticalallies. Thefrontalattacksonsocioenvironmental achievementshavecreateda favourableclimateforotherproposalstoalterlegislationinforce,suchasthe draftConstitutionalAmendmentproposaldesignedtomakethecreationofnew protectedareasandtherecognitionofindigenouslandsmoredifficult;thedraft billthatproposestoweakentheeffectsoftheAtlanticForestlegislationcurrently inforce;innumerableindividualprojectstodiminishthesizeofalready establishedprotectedareas;aproposalforaLegislativeDecreethatwould

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permitsugarcaneplantationsintheAmazonandthePantanal;andthe discussiononthepossibilitiesofminingoperationsinindigenousareas. Forallthosereasons,thesignatoriestothisdocument,socialorganisationsin favourofnondestructivedevelopmentandanxioustomaintainthecountrys socioenvironmentalequilibrium,wishtowarnpublicopinionthatBrazilisnow livingthroughanunprecedentedreactionaryprocessinthesocioenvironmental spherethatwillmakeitimpossibleforthecountrytomakeanyfurtherprogress towardsdevelopmentwithsustainabilityandwillseriouslyjeopardisethe qualityoflifeofpresentandfuturegenerations. FORESTLAWTheparadigmaticpointofthiserosionanddegradationofthe socioenvironmentalagendainBrazilisthevotingabouttotakeplaceonthe ForestLawReformBill,whichentirelydisfigurestheexistinglegislation protectingforestsandconcedesabroadamnestyforallactsofillegal deforestationcarriedoutpriortoJuly 2008therebyinstitutionalisingimpunityandconsequentlystimulatingnew wavesofdeforestation.ItalsoprovidesforreductionsintheareasofAreas underPermanentProtectionthroughoutthecountry.Theversionthatwillcome upforvotinginthenextfewdaysaffrontstheconclusionsoftherelevant technicalstudiesconductedbyBrazilstopscientistswhohaveexpressedtheir shockatthetotaldisregardforthewarningstheyissuedaboutgrosserrorsand obviousimproprietiesoftheproposalsembeddedintheversionsofthebill preparedbytheFederalSenateandtheHouseofRepresentatives. Therehavebeensimilareffortstoreducetheprotectionaffordedtoforestsand theenvironmentasawholeonpreviousoccasions,duringtheFernandoHenrique CardosoadministrationandthetwotermsofofficeofLusIncioLuladaSilva, butmostofthemwereeventuallyblockedbytheexecutivebranchinresponseto astrongreactionagainstthemfromsocietyatlarge.Today,however,the Executivebranchisinertandinsensitivetopublicopinion,startingwiththe MinistryoftheEnvironment,whichhasnotonlyinterruptedthecycleofNational ConferencesontheEnvironmentbutshownpassivityandconnivancewiththe ongoingprocessofdismantlingthelegislationgoverningitsownareaofactivity andauthority.Thecurrentadministrationhasletitsparliamentarysupportgroup dojustasitwishedandonlyintervenedintheprocesswhenitwastoolateand eventheninahaphazardmanner.Sectorsofthegovernmenthaveintervened sometimes,discretelysometimesmoreovertly,tosupportproposalsthatseekto reducetheforests,contrarytotheworldwidetendencytoendeavourtoincrease forestcoveragetofaceuptooncomingclimatechange. REDUCTIONOFPROTECTEDAREASDuringitsfirstyeartheDilma governmenthasfailedtocreateonesinglenewprotectedareaandin unprecedentedgesturehasissuedPresidentialProvisionalActn558which excludes86thousandhectaresfromsevendifferentfederalprotectedareasinthe Amazonregioninordertoaccommodatethesiteinstallationsandreservoirsof fourgreatdamsbeingconstructedontheTapajosandMadeirarivers.Inaddition tothefactthattheobligatorytechnicalstudiesandpublicdebateshavenotbeen carriedoutinthecaseoftheTapajoshydroelectricdams,theFederalConstitution stipulatesthatalterationorsuppressionofProtectedAreascanonlybedone underthetermsofaregularlawandthathasledtheOfficeoftheProsecutor GeneraloftheRepublictoimpetrateanactionofunconstitutionalityagainstthe

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 ProvisionalMeasureissuedbythepresidency. REDUCTIONOFIBAMASSURVEILLANCE ANDINSPECTIONPOWERSThis FederalGovernmentwasvotedinwiththebiggestpoliticalsupportbaseofall timeintheCongresssothatitshouldbeeasyforittomoveaheadwiththe necessaryreformstoenhancedemocracyandpoliticalgovernance,andtomake theeconomyagileandsustainablebut,infact,itseemstobeatthemercyof highlyreactionarygroupsentrenchedintheNationalCongress.Whatcould haveinducedittosanctionComplementaryAct140,whicheffectivelystripped IbamaandConamaoftheirpowerstherebyemasculatingbodiesthatplayed suchanimportantroleincurbingAmazondeforestationandconstructing environmentalpolicyoverrecentyears. RAMMING LICENSING PROCESSES THROUGH Government has not merely been negligent in failing to resist the attacks on the forests, it has actually been roughridingovertheenvironmentallicensinglegislation,whichisdesigned to regulate and organise the expansion of big infrastructure projects in Brazil. Unlike the way the licensing for the BR 163 Federal Highway was done, when government involved society in the elaboration of a sustainable Development Planfortheregionaffectedbythework,thelicensing process for theBeloMonte Hydroelectric project has become notorious forthe total disregard for: the legal regulations; the environmental conditioning factors; and the obligation to consult the indigenous populations affected by the works. This new modus operandiisbecominganincreasinglycommonpracticeandconstitutesathreatto the Amazon region insofar as the government intends to install 60 largescale hydroelectric plants and 170 smaller ones there. That huge set of large and mediumsized hydroelectric dams will not only lead to deforestation stemming from migration to the regions of the works and real estate and land speculation; but will also alter the hydrological regime in the regions rivers and have irreversible impacts on the lives ofindigenouspeoplesandlocalcommunities. CLIMATECHANGEAGENDAATAHALTIntheperiodfrom2005to2010 Braziltookdecisivestepstowardspushingforwardtheagendaforaddressing climatechangeinthenationalandinternationalspheres.In2009,thoseefforts culminatedinthepraiseworthydefinitionofgreenhousegasemissionreduction targetsthatwereincorporatedtoNationalClimateChangePolicyLawandled theturnaroundinthepositionsadoptedbytheemergingeconomies.The subsequentregulationoftheLawin 2010tomakeitoperationaldeterminedthatPlansforemissionreductions shouldbeconstructedsectorbysectorin2011.Whatactuallyhappened, however,wasthatin2011therewasastrongretractionoftheclimatechange agendaandnotonesinglesectorplanwasconstructedduringthefirstyearof officeoftheDilmaadministrationandneitherwereanyoftherespectivepublic consultationsmade. MOBILITYPROGRAMMEONGOSLOWEveninthoseareasthatthe governmentconsiderstoppriority,likethepublicworksinvolvingthe implantationofinfrastructure,thesocioenvironmental agendaisunfoldingvery slowly.TheGrowthAccelerationProgramme(PAC)launchedin2009associated

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totheupcomingFootballWorldCupforeseesexpenditureof11.8billionrealson improvingurbanmobilitybutuptonowamere10%hasbeenactuallycarried outanditisalreadycommonknowledgethatthemetrosystemswillnotbe operationalintimefortheCup.AtthebeginningofthisgovernmenttheMobility PACwaslaunchedbut,uptonow,nosingleprojecthasbeenselectedandnotone contracthasbeensignedtomakeuseoftheallocatedfunds. SANITATIONONGOSLOWInvestmentsinsanitationarealsounfoldingmuch slowerthantheintenseelectioncampaignadvertisingwouldhaveusbelieve.Of aninitiallybudgeted3.5billionreals,thegovernmenthasonlyeffectively invested1.9billion,21%lessthanin2010.Theliberationoffundsonthepartof theFederalSavingsBankhasalsobeenhighlyunsatisfactory(R$2.3billionup untilNovember,only25%ofthecontractedamount).Basicsanitationisa fundamentalfactorinthestrategytoreducepollutionofourwaterresourcesbut thefiguresinBrazilareactuallyshameful:only 44.5%oftheBrazilianpopulationisconnectedtoasewagecollectingnetwork andofallthesewagecollectedinthatway,only38%istreated(whichmeans that80%ofallsewageproducedinBrazilisdischargedintothenatural environmentuntreated). LANDTENUREREGULARISATION ONGOSLOWANDINCREASEINRURAL VIOLENCEItisnotjustinthecreationofnewprotectedareas,and indigenousandquilombolalandsthatthehegemonyofthemostbackward reactionarysectorsmakesitspresencefelt.ThefirstyearoftheDilma administrationhasbeenmarkedbytheworstperformanceinthecreationof newagrarianreformsettlementssince1995.Thedisbursementoffundsto financeactionsfortherestructuringofproductioninexistingsettlementswas alsothelowestforthelastdecade;65.6millionreals.Theprocessesfor grantingdefinitivetenuretitlesforindigenousandquilombolalandsarealso draggingout;in2011onlyonequilombolaareawasgranteddefinitivetenure andthreeindigenousareaswereratified. Thosebackslidingtendenciescoincidewithanotableincreaseinviolencein theruralareas.AccordingtoasurveymadebytheMissionaryIndigenist Council(Cimi),38 Indianswereassassinatedinthefirstninemonthsoflastyear;27inMatoGrosso doSul,thesceneoftensedisputesforterritorialrights.Addedtothosefigures aretheeightdeathsoffamilyagriculturesmallholdersandextractive agriculturalistsindisputesforlandwithgrileirosillegallyoccupyinglandsand obtainingfalsetenureregistration,especiallyinBrazilsnorthernregion. INERTIAOFTHEENVIRONMENT MINISTERInthemidstofallthesemultiple attacksontheauthorityandstructureofherportfolio,theMinisterofthe Environment,inawaythatisentirelyunprecedented,hasremained unacceptablysubservientinaccedingtothedamagebeingdonetotheauthority andfunctionsofherinstitution,suchastheemasculationoftheEnvironment CouncilCONAMAandreductionofIbamaspowerstocontrolenvironmental licensing,inspectionandsurveillance.TheMinistergaveherblessingtoallthe affrontstogoodsenseandscientificargumentsembeddedinthetexts oftheForestLawReformBillbyacceptingtheargumentthatthetextsdidnot containclausesgrantingamnesty,wheninfacttheymakeclearprovisionfora

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general,andunrestrictedpardonforthegreatmajorityofthosethat undertookillegaldeforestation. Facedwiththeseseriousnegativeprocessesthesocialorganizationsthatare signatoriestothisdocumentcallonthePresidenttokeepherelectioncampaign promisesbytakingup,oncemore,theimplementationofasustainabilityagenda inBrazil.Onlyafirmactionofthatkindcanavoidtheharmthatwillresultfor Braziliansocietyifitfindsitselfintheembarrassingpositionofbeingbothhost andvillainontheoccasionoftheupcoming Rio+20eventinJunethisyear.

InstitutoSocioambientalISA InstitutoDemocraciaeSustentabilidade FundaoSOSMataAtlntica InstitutodoHomemeMeioAmbientedaAmaznia InstitutodePesquisaAmbientaldaAmaznia RiosInternacionaisBrasil RededeONGsdaMataAtlntica (RMA)GrupodeTrabalho Amaznico(RedeGTA) AssociaodePreservaodoMeioAmbienteedaVida (Apremavi)AssociaoAlternativaTerraAzul WWFBrasil InstitutoVitaeCivilis

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