Document(s) 8 of 14

The Many Faces of Deforestation

Forests in Paraguay, and in particular the Atlantic rainforests, have been under increasing pressure from development since the beginning of the colonial period. More than half of the original area of the Atlantic rainforests had been degraded by the turn of the last century, and more recently only 1% was found to be still in a virgin state (Wilson 1988). Even the most conservative estimates have placed the remaining forest cover in Paraguay, including secondary growth, at some 6% of the original cover (IUCN 1988a). Threats to this remaining forest cover include fragmentation and acceleration of economic development (large-scale agriculture and ranching projects, commercial logging, and the construction of hydroelectric dams).

Most of Paraguay’s tropical moist forests can be found in the eastern region of the country, near the Paraná River. Around 98% of the population lives in this region, giving a population density is 18.6 per km², compared with 0.2 per km² in the western, or Chaco, region. Raising cattle is the main activity in the Chaco region. In the eastern region, the soil is more suitable for cultivating crops. Cattle, forestry products, and crops constitute the economic mainstay for the eastern region. Paraguay’s main exports are soybeans and cotton (Harcourt and Sayer 1996).

Land-tenure organization in Paraguay has left 95% of the land under private ownership (WWF 1991, cited in Brooks et al. 1992), which constrains the livelihoods of indigenous people and peasant

farmers (Brooks et al. 1992). It also makes state-sponsored forest management very difficult (Harcourt and Sayer 1996). The most valuable timber species, Amburana cearensis, is at present threatened and can only be found in a small area in the north.

Estimates suggest that only 15% of the eastern region was still forested in 1991 (Harcourt and Sayer 1996). Logging is generally done indiscriminately, and marketing of wood is uncontrolled. Most of the forest is in private hands, and Paraguay has no policy to promote private forest management.

Agricultural land has a much higher economic value than forested land (that is, in some regions 1 000 USD/ha, compared with 400 USD/ha for forested land), which represents an obvious economic incentive for deforestation. The export of logs was prohibited in 1972, but illegal export still occurs, especially from the northeastern part of the country (IIED and USAID 1985, cited in Harcourt and Sayer 1996). Fuelwood consumption per capita in Paraguay is much more extensive than in other South American countries; more than half of the fuelwood is used by the industrial sector (Harcourt and Sayer 1996).

Despite this unsustainable forest use, Paraguay does provide a legal framework for the forestry sector — the Forest Law of 1973. This law establishes, on paper, fiscal incentives for reforestation; defines forest land as reserves, production forest, or semiprotected forest; and sets up regulations and fines to protect the forest resources. To date, Paraguay has had little political will to uphold this law, and few of the restrictions are applied. Additionally, the law allows people to colonize forest reserves. The mainstream view is that forest lands are unproductive, and therefore little attempt is made to prevent deforestation. Indeed, Paraguay’s annual deforestation rate, at 4.7% (WWF 1991, cited in Brooks et al. 1992), is higher than that of any other South American country. Large-scale landowner’ cut down their own forests to prevent the government from settling landless peasants in the “unused” forest areas, and this is another cause of deforestation (Harcourt and Sayer 1996).

The alarming rate of deforestation is threatening Paraguay’s unique biodiversity. Botanically, Paraguay is one of the least-known countries in South America, although it has an estimated 7 000–8 000 species (Davis et al. 1986, cited in Harcourt and Sayer 1996). Probably, most of its fauna is greatly endangered. Although relatively few mammals, birds, or reptiles are wholly endemic to Paraguay, deforestation threatens a substantial number of rare species, such as the bush dog (Speothos venaticus), the margay (Leopardus wiedii), and the helmeted

woodpecker (Dryocopus galeatus) (Brooks et al. 1992; Groombridge 1993, cited in Harcourt and Sayer 1996). Hunting, primarily of larger species, could also have a serious impact on biodiversity, given the widespread deforestation. Additionally, the illegal trade in wildlife and wildlife products is considerable (Harcourt and Sayer 1996).

At present, the conservation areas in Paraguay are poorly connected, and the objectives are weakly pursued because of the absence of a national environmental or conservation policy (Acevedo and Pinazzo 1991). Conservation efforts in Paraguay fall into three categories. First, the National Parks and Wildlife Directorate (Dirección de Parques Nacionales y Vida Silvestre) administers eight national parks, two protected forests, a national reserve, and a scientific reserve (Acevedo and Pinazzo 1991). Second, within the Paraguayan land-tenure system, various organizations have taken up private conservation initiatives. The Moisés Bertoni Foundation has developed a system of Private Nature Reserves to encourage large-scale landowners to protect the forest adjacent to their estancias (farms or ranches). Such forest areas act as a vital refuge for animals driven out of deforested areas. Third, in the last few years, more conservation NGOs have become active in Paraguay, and their importance to environmental education, legislation, and enforcement is increasing.

WORKING WITH INSTITUTIONS⁷

An important part of the work for this project took place through Sobrevivencia’s involvement with the National Commission for the Defence of Natural Resources, the Attorney General’s Office, and the Environmental Directorate of the General Monitoring Office. Working with these official bodies allowed Sobrevivencia to take part in drafting the pertinent legislation, to lobby for effective implementation, to press for the formation of new working groups, to make joint field trips, and to exchange information from investigations. Sobrevivencia also exposed illegal forest exploitation and other forms of malpractice, filed complaints, and stood up for affected local communities.

⁷ The balance of this chapter presents an executive summary of the report The Many Faces of Deforestation in Paraguay, the Paraguay case study in the Chase for Quick Profits project. The original report was written by Sobrevivencia’s project coordinator, and the preliminary editing was carried out by the FoEI Secretariat in Amsterdam. The preceding introduction was prepared by FoEI.

INVOLVEMENT IN THE LEGISLATIVE PROCESS

As a result of discussion sessions involving the working institutions and Sobrevivencia, several laws and bilateral agreements have been developed and approved by Parliament. In addition, attention has been focused on improving the implementation of previously approved legislation and agreements.

Particularly relevant to the present project are laws 422 (Forest Law), 515 (prohibiting export and trafficking of logs and beams), 716 (establishing penalties for offences against the environment), 751 (approving Paraguay’s agreement with Brazil to cooperate to combat illegal timber traffic), and 816 (adopting measures for the defence of natural resources). Law 515 outlaws log-processing industries within 20 km of the northeastern border with Brazil. Law 816 declares all forests in a zone along the northeastern border with Brazil to be of social and environmental interest and bans deforestation and new agricultural colonization.

THE ALTO PARAGUAY CASE

The Alto Paraguay forest, in the northernmost part of Paraguay, was once a safe refuge for a number of rare and endangered species of fauna and flora because of its isolation and difficult access. But when the Paraguayan government began to promote the Hidrovía project (a massive waterway scheme in the Paraguay–Paraná Basin), the Alto Paraguay forest fell victim to land speculation. Speculators bought land from the government through intermediaries who could legally purchase government land. The land was then resold to Brazilian entrepreneurs, which is illegal, as land purchased from the government cannot be sold for 10 years. The forests were cleared by illegal Brazilian immigrants, using heavy machinery illegally brought into the country.

The speculators arrived by President Wasmosy’s private plane, accompanied by the president’s bodyguards. According to one source, a person directly involved in the purchase of a large tract of land was one of the President’s sons. This illegal colonization scheme, known as Colonización San Gabriel, covers around 1 million ha. The total area so far deforested has been estimated to be in excess of 30 000 ha.

However, a Chamacoco indigenous community near Puerto Caballo had secured legal rights on a 13 500-ha tract within the area chosen for development by the Brazilians. In 1994, as a result of

intimidation and suspected bribing of indigenous leaders, the leaders of this community signed a letter to the Instituto Paraguayo del Indígena (INDI, national institute of indigenous affairs). The letter declared that they had no desire to remain on their land and wanted to move to another site, downstream from Puerto Caballo. INDI then bought a 1 200-ha piece of land for them; however, the Paraguay River floods this land for long periods every year.

In July 1996, during a Floating Seminar organized by Sobrevivencia along the Paraguay River from Corumbá (Brazil) to Asunción, it became clear that all traces of the Chamacoco settlements at Puerto Caballo had been erased. It was confirmed that members of another Chamacoco community had been employed to extract karanda’y palm trees (Copernicia alba) from the abandoned land at Puerto Caballo for a recently established plant for palm-heart processing.

In November 1995, the leaders of the Chamacoco community from Puerto Caballo asked Sobrevivencia for assistance in recovering their lands. This case was under way at the time of the research, despite continuing pressure from INDI and local branches of the ruling political party. The case of Puerto Caballo was also presented to a panel in the Brazilian Pantanal in July 1996.

The deforestation process in the area resulting from the illegal colonization in Alto Paraguay breaches law 422 (Forest Law), law 716 (establishing penalties for environmental offences), the law of the National System of Protected Areas, and land-sales regulations. At the time of writing, a legal suit was being prepared. This case may have serious implications for high government officials, including, according to information not yet fully confirmed, the President of Paraguay.

Activities planned for the future include attempts to secure indigenous territories in the area and to stop illegal deforestation. Sobrevivencia will also support the joint implementation of indigenous and protected areas by Paraguay and Bolivia.

ILLEGAL LOG TRAFFICKING INTO BRAZIL

The last remaining tracts of the Paraná subtropical humid forest in northeastern Paraguay are severely affected by illegal log trafficking to Brazil. In May 1996, Sobrevivencia was able to help an Ache indigenous community in Canindeyu province defend itself against the threat of an invasion by a group of landless farmers. The invasion was instigated by Brazilian timber entrepreneurs operating in the border

region. The leaders of this community have since asked Sobrevivencia to help develop sustainable land-use plans for their forest.

An important event was the public debate on laws 515, 716, and 751, held in Canindeyu in May 1996. In addition to Sobrevivencia, participants included the Governor of Canindeyu, the Mayor, other local authorities, owners and employees of wood-processing firms in the area, officials from Asunción, and some 300 community members from both countries. The meeting concluded with an urgent appeal to the government to create development alternatives for the area. Participants recommended tax incentives for “economic reconversion” to replace the timber industry, and they also called for public education to make the local population aware of the importance of forests.

On 26 June 1996, the Minister of Agriculture and Livestock signed Resolution 403, to suspend the National Forest Service’s control of log transports for 15 days. This decree, illegal because it contravened the Forest Law, resulted in a huge increase in illegal log trafficking. Implicated officials were from the National Forest Service and from the Vice-Ministry of the Environment, the Vice-Minister of the Environment, and the Minister of Agriculture and Livestock. Partially as a result of Sobrevivencia lobbying, this illegal action was made the subject of meetings of the National Commission and sessions with the presidents of the National Congress and the Supreme Court of Justice.

The Minister of Agriculture and Livestock, the Vice-Minister of the Environment, and the Director of the National Forest Service were all summoned to a hearing in Parliament, where they were strongly criticized. An ad hoc commission was appointed to follow up on deforestation and log-trafficking convictions; members of this committee include the presidents of both the National Congress and the Supreme Court of Justice and a Sobrevivencia representative. Lobbying by Sobrevivencia for a political trial against the Minister of Agriculture and Livestock was not successful. Prosecution of officials of the Ministry of Agriculture and Livestock for illegal log trafficking was still pending at the time of writing. Arrest orders had been issued for two officials, who were fugitives from justice.

RECOMMENDATIONS

Based on the findings of this project, Sobrevivencia will campaign for the following actions to address illegal forest exploitation:

• Institutional reform and capacity-building;
• Development of the necessary legal instruments;
• Efforts to raise awareness among those responsible for implementing these instruments;
• The initiation of pilot court cases to establish jurisprudence; and
• Public education.

More specifically, Sobrevivencia recommends the following actions:

1. Create a new Ministry of Environment so as to raise the responsibility for environmental policies to higher levels in Paraguay’s administrative hierarchy.
2. Reinforce and expand legislation related to forests. For example, designate a no-deforestation zone along the border with Argentina, similar to the “exclusion zone” along the border with Brazil.
3. Organize more workshops to inform officials in the legal system and in the enforcement agencies about the importance and potential of environmental legislation. (A high-level commission, with representatives from all three branches of the state, has already started to organize such workshops for judges and public prosecutors; Sobrevivencia is planning similar workshops for the special section of the National Police that is in charge of enforcing environmental laws.)
4. Initiate pilot court cases related to environmental crimes. These cases should involve only judges and prosecutors who have been identified as sensitive and honest. (Sobrevivencia is investigating the feasibility of filing such cases in one or both case-study areas described in the report.)
5. Rapidly establish the proposed protected areas, but expand them with biological corridors. Give these corridors, as well as the legal indigenous territories, protected status. This will provide legal protection to ecologically and culturally sensitive areas. In addition, give legal recognition to more Ayoreo and Chamacoco territories in the Alto Paraguay region.
6. Launch a long-term public education campaign on the environment, particularly on the values of forests.

Document(s) 8 of 14