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Developing Sustainable Infrastructure in the Amazon 43 SUSTAINABLESUSTAINABLE OCTOBER 2020 INFRASTRUCTUREINFRASTRUCTURE ININ THETHE AMAZONAMAZON ConnectingConnecting EnvironmentalEnvironmental ProtectionProtection withwith Governance,Governance, Security,Security, andand EconomicEconomic DevelopmentDevelopment PROJECT DIRECTOR Daniel F. Runde AUTHORS Romina Bandura Shannon McKeown A REPORT OF THE CSIS PROJECT ON PROSPERITY AND DEVELOPMENT Bandura & McKeown 1 SUSTAINABLE INFRASTRUCTURE IN THE AMAZON Connecting Environmental Protection with Governance, Security, and Economic Development PROJECT DIRECTOR Daniel F. Runde AUTHORS Romina Bandura Shannon McKeown A REPORT OF THE CSIS PROJECT ON PROSPERITY AND DEVELOPMENT ABOUT CSIS The Center for Strategic and International Studies (CSIS) is a bipartisan, nonprofit policy research organization dedicated to advancing practical ideas to address the world’s greatest challenges. Thomas J. Pritzker was named chairman of the CSIS Board of Trustees in 2015, succeeding former U.S. senator Sam Nunn (D-GA). Founded in 1962, CSIS is led by John J. Hamre, who has served as president and chief executive officer since 2000. CSIS’s purpose is to define the future of national security. We are guided by a distinct set of val- ues—nonpartisanship, independent thought, innovative thinking, cross-disciplinary scholarship, integrity and professionalism, and talent development. CSIS’s values work in concert toward the goal of making real-world impact. CSIS scholars bring their policy expertise, judgment, and robust networks to their research, anal- ysis, and recommendations. We organize conferences, publish, lecture, and make media appear- ances that aim to increase the knowledge, awareness, and salience of policy issues with relevant stakeholders and the interested public. CSIS has impact when our research helps to inform the decisionmaking of key policymakers and the thinking of key influencers. We work toward a vision of a safer and more prosperous world. CSIS is ranked the number one think tank in the United States as well as the defense and national security center of excellence for 2016-2018 by the University of Pennsylvania’s “Global Go To Think Tank Index.” CSIS does not take specific policy positions; accordingly, all views expressed herein should be un- derstood to be solely those of the author(s). © 2020 by the Center for Strategic and International Studies. All rights reserved Center for Strategic & International Studies 1616 Rhode Island Avenue, NW Washington, D.C. 20036 202-887-0200 | www.csis.org Bandura & McKeown I ACKNOWLEDGMENTS The authors would like to thank their CSIS colleagues Owen Murphy, Sundar Ramanu- jam, and Emily Unrue for their research, writing, and editing efforts, as well as Moises Rendon and Margarita Seminario from the CSIS Americas program for their instrumental travel assistance and expertise. Special thanks to the CSIS Dracopoulos iDeas Lab for their input on the report layout and graphics and to CSIS interns Fernanda Silveira, Mary Margaret Burniston, and Hareem F. Abdullah for their dedication to quality research sup- port on this project. Special thanks to Susan Mosteiro and Harry Shlaudeman for their work as consultants on this project. During the first half of 2020, CSIS interviewed 57 stakeholders in off-the-record meet- ings in three countries (Brazil, Colombia, and Peru) from NGOs, government agencies, multilateral development banks, civil society, and philanthropic organizations. We would like to thank them for their help and support on this project. We would also like to thank the 40 experts who participated in the three roundtables held in Washington, D.C. in December 2019, February 2020, and April 2020 for sharing their views. Finally, 10 experts reviewed this report and 15 country stakeholders provided inputs to each of the country case studies. We are incredibly grateful for your constructive feedback. This report would not have been possible without the generous support of the Gordon and Betty Moore Foundation, with thanks in particular to Kristina McNeff. We are grate- ful that you have entrusted CSIS with such a significant undertaking. II Sustainable Infrastructure in the Amazon ACKNOWLEDGMENTS TABLE OF CONTENTS About This Report 1 Executive Summary 2 Introduction 9 I. Security Challenges in the Amazon Basin 15 II. Governance Challenges in the Amazon 28 III. Infrastructure Development in the Amazon 33 IV. Conclusions: Opportunities for Developing Sustainable Infrastructure in the Amazon 43 About the Project Director and Authors 51 Annex I: Methodology 53 Annex II: List of Organizations 55 Annex III: Highlights of Sustainable Infrastructure Frameworks 58 Bandura & McKeown III ABOUT THIS REPORT The Center for Strategic and International Studies (CSIS) has conducted a research proj- ect exploring how deforestation in the Amazon Basin is linked with weak governance, insecurity and conflict, and inadequate infrastructure planning in the region. Our find- ings reveal that these countries have structural challenges that enable the drivers of deforestation to thrive. As a result, deforestation in the Amazon cannot be solely circum- scribed as an environmental phenomenon; it is the inevitable outcome of a confluence of security, economic, and governance issues. Introducing infrastructure development into this existing complex landscape can increase the risk to the ecosystem and the peo- ple who inhabit it. Through this project, CSIS aims to connect the non-environmental issues with the shrinking of the Amazon ecosystem and reach a wider audience by en- gaging actors beyond the environmental community. The findings of this report are based on desk reviews, field interviews in three coun- tries—Brazil, Colombia, and Peru (which comprise more than 80 percent of the Amazon Basin and are its largest economies), and Washington-based consultations. The intended audience is policymakers in the security and development community in Washington, D.C. We are targeting key decisionmakers in the next U.S. administration (either Trump or Biden), Congress, and staff in U.S. development agencies as they develop policies, programs, and funding for the region. At the same time, we are pursuing stakeholders in Brazil, Peru, and Colombia, including the media, investors, development planners, national security advisers, and regional government officials. We hope the report and accompanying country case studies generate greater interest and debate on the topic, present constructive ideas for developing the region in a more sustainable way and help change the discourse on the Amazon’s future. Bandura & McKeown 1 EXECUTIVE SUMMARY This report analyzes how deforestation in the Amazon Ba- potential regional and global effects could be dire if action sin is linked with weak governance, insecurity and conflict, is not taken to prevent further deforestation. Given the cur- and inadequate infrastructure planning in the region. The rent situation, the Amazon is currently at a crossroads in findings of this report are based on desk reviews, field inter- responding to deforestation. views in three countries (Brazil, Colombia, and Peru, which are the largest economies and together comprise more than CURRENT CHALLENGES IN THE 80 percent of the Amazon Basin), and Washington-based AMAZON BASIN consultations. Our findings reveal that these countries have A host of environmental, economic, governance, and se- structural challenges that enable the drivers of deforesta- curity challenges are affecting the Amazon’s future, with tion to thrive. Deforestation in the Amazon cannot be solely the potential to destabilize the region. Since the 1970s, the circumscribed as an environmental phenomenon; it is the Amazon Basin has been battered by significant loss of bio- inevitable outcome of a confluence of security, economic, diversity and forest cover as well as increasing water con- and governance issues. Introducing infrastructure develop- tamination. The main activities that have contributed to ment into this existing complex landscape can increase the deforestation vary among countries and include both legal risk to the ecosystem and the people who inhabit it. economic ventures such as commercial cattle ranching, soy production, and infrastructure development and illegal ac- Beyond its rich biodiversity and natural resources, the tivities such as land grabbing, illegal gold mining, and coca Amazon is home to between 30 and 35 million inhabi- cultivation and cocaine production. tants, most of whom live in urban areas that lag behind their respective countries in socioeconomic develop- Beyond the environmental impacts, deforestation and the ment.1 This combination of environmental endowments, activities associated with it affect both the physical health natural resources, and human settlements presents chal- (e.g., fires generate pollution and mercury used in gold min- lenges and opportunities for the development of the re- ing contaminates water sources) and the economic health gion going forward. of communities, as many rely on the forest and waterways for their livelihoods. Illegal activities that contribute to de- Overall, these challenges and opportunities must be fac- forestation also affect basic human safety and create con- tored in when designing a sustainable development strate- flicts with local and indigenous communities. gy for the basin that enables infrastructure to play a positive role in that process. Within this context, action is necessary The underlying causes of deforestation can be traced to now to ensure that the Amazon Basin is
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