THE POLITICS of SUSTAINABLE DEVELOPMENT in the PERUVIAN AMAZON RAINFOREST Karen Konkoly

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2017 The olitP ics of Sustainable Development in the Peruvian Amazon Rainforest Karen Konkoly Lehigh University

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Introduction Amazon. To effectively counter deforestation, Peru should align priorities across interest In the Peruvian Amazon rainforest groups and effectively allocate resources to reside 1,816 species of birds; 25,000 species of subnational governments so that policies can plants; 515 species of mammals; and 3 million play out as they are intended. Because small- people (Gamboa; “Geography, Agriculture…”). scale agriculture constitutes the majority Maintaining the rainforest is crucial for of deforestation and is especially prevalent ecological diversity, for carbon retention, in the northern Amazon basin, I propose a as a basis for fair and equitable economic sustainable alternative industry in that region development of the communities living there, with the potential to benefit both small farmers and for its potential to increase GDP. Yet, profit- and the agricultural sector. By developing a oriented large-scale development interests cohesive, collective wisdom about the value of endanger the forest by opening up land to the rainforest, Peru can work toward a holistic destruction from small-scale agriculture. forest policy that accounts for all these factors. Peruvian Amazonia is replete with natural resources that should be utilized sustainably Background with benefits flowing to local communities. In this article, I examine the current As of 2014, the Peruvian Amazon politics of land usage and how issues rainforest spans 69 million hectares, covering contribute to deforestation. After discussing 60 percent of Peru’s total land area (Piu and legislative concerns, I examine ways for Peru Menton). Although Peru historically has had to maintain and improve economic growth lower rates of deforestation than neighboring to equitably benefit communities in the countries like Brazil, deforestation has 67 accelerated in recent years. Between 2001 directly to the most hectares of forest cleared, and 2014, 1.65 million hectares of forest have migrant farmers often slash and burn near been lost (Piu and Menton). According to areas of the jungle already segmented by larger Peru’s Forestry and Wildlife Law of 2011 (Law deforesting projects. From 1999 to 2005, for No. 27308, Article 7), it is illegal to engage instance, three-fourths of all deforestation in any activity that affects forest coverage on and forest degradation occurred within 20 land deemed most suitable for maintaining km of a road (Piu and Menton, p. 12). In standing forest (“Deforestation…,” p. 8). general, the Peruvian government views the However, profit-oriented companies are lack of infrastructure in rainforest areas as often the ones funding land classification, an obstacle to development. Agricultural, resulting in primary forest areas classified as mining, private, and other interests push for suitable for agriculture or other development development projects to maximize economic projects and thus deforested. Moreover, weak gain without prioritizing the environmental law enforcement enables illegal developers upkeep to sustain those industries in the long in the logging, mining, and agricultural run. These deforesting development projects industries to pursue deforesting projects that can occur legally because of the legislative further segment the rainforest. In total, both ambiguity surrounding land classification and government-approved and illegal development in turn open up areas for further small-scale projects are responsible for less than half of the agricultural deforestation. damage. Most deforestation is due to small- scale migrant farming. From 2000 to 2009, Land Classification for instance, about 75 percent of the forest cleared was on plots of one-half hectare or less Currently, the Ministry of Agriculture (Gutierrez-Velez and MacDicken). (MINAGRI) is in charge of classifying land Small-scale farming creates such a through a process called best land use capacity large impact because it is common for small (BLUC). BLUC classifications determine farmers to migrate, slashing and burning whether land is most productive when used small plots of land every three to five years for various types of cultivation, forestry, or to raise subsistence crops for their families. protection (“Deforestation…,” p. 8). However, There is some disagreement about the factors BLUC assessments are based on the “climactic and soil characteristics” of land, without underlying slash-and-burn forestry. According necessarily considering whether that land to Ravikumar and colleagues (p. 3), much slash- is currently covered by rainforest. Thus, if and-burn forestry is a traditional, sustainable a forested area is deemed most suitable for form of agriculture cyclic agroforestry, which cultivation, it could be sold as a concession to involves growing a sequence of ground and tree a plantation developer and deforested. BLUC crops and then letting fields lay fallow every assessments are subject to bias, often funded few decades to regain fertility. The prevailing by the very companies pursuing development view, however, is that in recent years a majority projects, and few subnational governments of small farmers are landless migrants, often have the resources to verify their accuracy seeking refuge from the even greater poverty (“Deforestation…,” p. 4). In this way, Peru’s in Peru’s mountain regions. The population government condones deforesting projects like influx to the jungle means that fallow fields mining and agricultural plantations. cannot adequately rejuvenate before the next The Peruvian Ministry of the migrants move in, perpetuating the slash-and- Environment (MINAM) has a different agenda, burn cycle (“Conservation…”). To fund other establishing several policies in hopes of necessities, many of these farmers grow cash achieving zero net deforestation by 2020. In crops, like coca,1 or partake in smaller-scale the time since MINAM was created in 2008, illegal logging or mining operations. the agency has implemented a more thorough Although small-scale farming leads process, zonificación ecológica económica 1Coca is the main ingredient in cocaine, of which Peru (ecological and economic zoning [ZEE]), to is a leading producer. classify forestlands as suitable for economic 68 activity or conservation. Theoretically, friendly forms of forest production, like MINAM develops ZEE plans in coordination sustainable NTFP extraction (discussed later). with regional governments, and only already Much unclassified land is concentrated deforested regions are allotted for agricultural in the northern region of Loreto and other or mining projects. In practice, however, remote areas lacking studies to determine ZEE plans are subordinate to the BLUC BLUC assessments. Although large-scale classification procedure. MINAM’s lack of deforestation is relatively rare in Loreto, the power relative to other government sectors region nevertheless experiences a significant prevents environmental concerns from getting amount of total deforestation. For example, in adequate consideration in land use decisions. 2010–2011, Loreto suffered more deforestation These conflicting policies at the national level than any other region in Peru, about 36,200 are inherited by subnational governments that hectares of forest (Piu and Menton, p. 9). are ill equipped to deal with them (Gustafsson). The deforestation problem on remaining Without adequate human and financial unclassified lands suggests that it is important resources at the subnational level, regions are to complete land classification as quickly also susceptible to illegal deforestation from as possible, but under the current political logging, gold mining, and other industries. To atmosphere, completing land classification understand how these issues play out, I examine will not be enough. Even if all the remaining the current ownership and management of land were classified, legal deforestation Peru’s rainforest land. would continue. In the next section, I discuss how legislative ambiguity creates a political Current Land Usage environment that promotes large-scale deforestation and problems that subnational Approximately 20 percent of the rainforest governments inherit. in Peru is owned by communities or reserved for indigenous populations, who generally Problems with Decentralization seek to keep the forest intact. Nearly all the remaining forestland is owned by the Peruvian On the surface, Peru’s regional national government. Protected areas account governments seem like influential for about 26 percent of the rainforest; and, institutions. Peru is divided into 25 regions, although protected areas can be vulnerable which are further divided into two levels of to illegal deforesting activities, in general local government: provinces and districts. they have much lower rates of deforestation. According to the Decentralization Law (Law Another 23 percent of the rainforest is classified No. 27783) passed in 2002, provinces and as “production forest,” sold as concessions for districts share responsibility for environmental logging, non-timber forest products (NTFPs), protection and conservation (OECD, p. 150). ecotourism, and other economic activities. Regional governments grant land rights and Much of the remaining forest area, around 22 concessions, thereby authorizing changes of percent of the total, remains uncategorized. land use, approving forest management plans, Uncategorized lands suffer disproportionately and ensuring that national forest policies high rates of deforestation from small-scale are followed (Gustafsson). Theoretically, agriculture, accounting for about 44 percent regional and national governments also of total deforestation, because there is no share responsibility for promoting productive single entity officially responsible for their employment at all levels and for management care (Kowler et al., p. 8). Further deforestation and regulation of economic activities like is imminent if these lands are classified as agriculture and tourism (OECD, p. 150). suitable for agriculture, because not included In practice, subnational governments in these figures are the 690,515 hectares are limited in their ability to carry out their of already deforested land currently used responsibilities. In part, this is because the for agriculture (Kowler et al., p. 7). Most different national sectors of government unclassified lands should be preserved, titled to lack coordination. For example, the Regional local communities, or classified for ecologically Government Law (Law No. 27867, Article 69 53) states that regional governments under been deforested beforehand. the supervision of MINAM coordinate with One such plantation was developed local governments to perform ordenamiento in the northern region of Loreto by Cacao territorial (territorial planning/land use del Perú Norte,2 a division of the Cayman planning [OT]). Combining ZEE and OT Islands–based company United Cacao. United in theory would create a cohesive process Cacao claimed to use a sustainable planting that accounts for environmental, economic, strategy, developing plantations only in areas and social impacts before classifying land. already heavily degraded and thus suitable for Provincial governments under the supervision agriculture (Cannon). In reality, the company of the Ministry of Housing, however, are chopped down more than 2,000 hectares responsible for a process similar to OT, called of primary forest between 2012 and 2014, territorial conditioning, which often is not creating tensions with indigenous groups who coordinated with ZEE-OT; yet, they are charged occupied the land (Finer et al.). In 2014, the with determining land use at the district Peruvian government ordered United Cacao level. Complicating matters further, it is not to stop developing the plantation because uncommon for these sectors of the government, the surrounding land and water resources as well as for the different local governments were suffering and significant amounts within a region, to use different databases and of greenhouse gasses were being released spatial information when creating their plans. (Cannon). The next year, Peruvian courts ruled Finally, regardless of what conclusions OT and that United Cacao was acting legally because it conditioning lead to, their decisions come claimed that it only cultivated lands that were second to other financial interests. If a private already degraded, thus most appropriate for company can get the land classified through agriculture. Satellite studies confirmed that BLUC as best used for agriculture, then MINAM the plantations were indeed developed in areas and regional governments can do little to stop no more degraded than any average stretch of the resultant development and deforestation rainforest, with about 98 percent of forest cover (Gustafsson). still intact (Finer and Novoa, 2015). Companies like United Cacao have used this loophole of Legislative Loopholes classifying nearly intact forest as suitable for agriculture to get away with clearing hundreds Recent controversy in the agriculture of hectares of primary forest. Although industry provides an illustration of how these representatives from MINAM are trying to problems play out. Despite the export value complete environmental studies satisfactorily created by agricultural plantation products, before plantation development begins, as of Peruvian national policy prohibits granting March 2016, adequate enforcement of these agricultural concessions in regions of healthy policies was lacking. United Cacao continued forest. Even agroforestry plantations that to cut down primary forest, arguing that its are theoretically better at preventing soil method of cacao production was sustainable degradation can still create devastating and expecting the public to forget that the consequences for biodiversity. Thus, eradicated forest had been healthy and agricultural concessions are to be granted only longstanding (Erickson-Davis). in areas already heavily degraded or deforested. Like the communities affected by Cacao However, some plantation developers purchase del Perú Norte, many Amazonian residents have concessions from local governments in regions suffered the consequences of unclear forestry that are supposedly deforested but actually legislation. Although indigenous populations contain expanses of primary forest. Others are and other communities currently manage so deterred by the concession process that they ignore it and start clearing fields for plantations approximately 20 percent of forested land, illegally. By the time Peruvian officials reach they occupy much more. In 2009, indigenous plantations in these remote areas of the jungle, peoples’ dissatisfaction worsened when it is often unclear whether plantation owners 2Peru is a leading producer of cacao, the main cleared the land illegally or whether it had ingredient in chocolate. 70 President Alan García bypassed the legislative et al., p. 41). process to make a free trade agreement with Although tensions between conflicting the United States. This agreement aimed to interests of different sectors are inevitable, boost the economy, restructuring land rights Peru needs a clearer division of power at the in the jungle to make more land available for national level and a better working relationship foreign oil, mining, and livestock investment between government sectors. By passing opportunities. However, the agreement’s open- unified legislation that details the process ended forest protection clause essentially for land allocation and prioritizes ZEE-OT consisted of each party promising to try its over BLUC classification decisions, Peru can best to protect the environment. This loose move past the conflicting rulings of different legislation resulted in primary forestlands sectors. Such a process involves strengthening once controlled by indigenous populations coordinating bodies like CEPLAN, CARs, auctioned off to foreign investors (Barrera- and CAMs and guaranteeing that all relevant Hernánez). sectors are participating. Finally, it should enable and require all these actors to use one Improving the System unified database system when weighing in on land use decisions. To address problems like illegal clearing Collectively, political efforts to and indigenous peoples’ dissatisfaction that reduce deforesting development projects are created by legislative ambiguity, territorial will have a minimal impact on reducing governments are pressuring the national overall deforestation. In relative terms, the government to pass a central ZEE-OT law. implications of these projects are what lead This law would unify the current policies to most deforestation. Large-scale clearing, surrounding land use, requiring decisions to be especially when done without benefits flowing made from a political process that recognizes to Amazonian inhabitants, opens up forestland the differing priorities of subnational and to the small-scale agriculture that accounts for national governments and then comes to 60 to 75 percent of deforestation (Ravikumar et a solution. Naturally, mining, agricultural, al.; Gutierrez-Velez and MacDicken). Thus, it is and private interests are opposed; thus, ZEE- essential for Peru to restrict extensive further OT plans continue to be non-binding and expansion while allowing agricultural, private, have limited power to determine how land is mining, and other interests to profit as much used (Kowler et al., p. xii). Nevertheless, the as possible. Because small-scale agriculture Peruvian government has made multiple efforts results in the most deforestation, in the to integrate the priorities of different sectors. next section I make a case for an alternative, In 2011, Peru created the National Center sustainable industry. for Strategic Planning (CEPLAN) to improve decentralized planning and coordination Sustainable Alternatives between sectors. Unfortunately, CEPLAN lacks the resources to successfully moderate all the The government of Peru is on board with interests of different sectors and subnational alternative development options to counter governments. At the subnational level, Peru deforestation from small-scale agriculture, has sought to increase coordination by creating especially that resulting from migrants’ regional environmental commissions (CARs) dependence on illegal coca production. From and local environmental commissions (CAMs). 2007 to 2011, Peru steadily increased funding Although intended to promote coordination for alternative development and counter- between private and public stakeholders and narcotics programs. However, each year the civil society organizations, CARs and CAMs have amount of funding used has significantly lagged limited effectiveness. In one study, community behind the total amount of funding allocated. members from Madre de Dios, Ucayali, and San For example, in 2010, more than $30 million Martín said that their CARs did not meet often was allocated for alternative development and and lacked a diverse array of actors, specifically counter-narcotics programs, but less than in the mining and agricultural sectors (Kowler $20 million was spent. This gap suggests that 71 Peru’s National Commission for Development nutritious açaí berry had been a staple of the and Life Without Drugs (DEVIDA), along with Brazilian Amazonian diet for centuries, it regional and local governments, requires was perishable within a day, thus little known targeted technical assistance to effectively elsewhere. In the 1990s, when producers utilize funding (United States Agency for discovered that the berry held its outstanding International Development/Peru, p. 23). nutritious qualities if frozen and sold as pulp, The abundance of funding allocated for it gained popularity throughout the U.S. and alternative development should in part be Europe. The industry now employs more than used to ensure that DEVIDA and subnational 30,000 people in Brazil, and much of the açaí is governments have the capacity to use their wild harvested sustainably (“Açaí”). funding to complete alternative development Aguaje could be the next açaí. The projects. Although many current alternative aguaje palm is already prolific and distributed development projects promote cultivating throughout the Amazon basin. A single tree agroforestry crops like coffee and cacao, some can produce over 10,000 fruits a year, and its experts suggest that harvesting naturally pulpy orange flesh is rich in phytoestrogens, occurring tree crops can be an even more vitamins, and minerals. Harnessing the economically and environmentally beneficial potential of aguaje and other NTFPs could alternative. Because the northern region of provide a valuable alternative to communities Loreto is especially affected by deforestation that now rely on subsistence farming but only from small-scale farmers, I discuss an example if the industries are developed with social and of how forest products produced by the jungle environmental responsibility in mind. in Loreto can provide a sustainable alternative. Loreto is a vast lowland river basin Overcoming Obstacles containing an abundance of forest fruits, seeds, Currently in the aguaje industry, most and other tree products, many of which are of the profits benefit intermediaries who already harvested for small-scale consumption sell the fruits in Iquitos rather than the or are useful in medicinal remedies and harvesters themselves (Penn and Neise). In cosmetics. A few of these NTFPs have become Brazil, similar problems were remedied when widely popular, much to the benefit of the households adopted trade partnerships for forests where they originated. The palm fruit NTFP commercialization (Morsello et al.). agauje, for instance, already plays a key role in Another problem is that much aguaje sustaining the communities around Iquitos, a harvesting is done in an unsustainable way. city in Loreto. There, between 20 and 50 tons of Because aguaje palms grow tall and straight, fruit are consumed daily (Smith and Venegas; the trees are often cut down to access the Bloudoff-Indelicato). fruit at the top. In many regions, there is an Because aguaje and many other NTFPs annual “race for aguaje,” where people in the perish so quickly, they are primarily consumed Amazon compete to harvest the fruit before in cities close to where they are harvested. their neighbors get to it. Thus, every year the However, if companies were to invest in harvestable trees are farther and farther away strategic processing facilities, such as in boats (Penn and Neise). To prevent communities from that sail along the rivers to visit communities, cutting down primary rainforest trees, there are NTFPs could reach the growing international several initiatives to help farmers grow shorter market for sustainably sourced goods. When aguaje palms on monoculture plantations. a fruit can be identified as already popular Although plantations enable farmers to harvest within the local community, can be produced aguaje on trees left standing, monoculture or harvested sustainably on a large scale, plantations are prone to diseases, lead to soil and has outstanding nutritional or flavor degradation, and disrupt the surrounding qualities, it is sometimes called a “Cinderella ecosystem. For example, although 44 percent fruit,” demonstrating potential to be the next of the world’s species of birds can be found in supermarket success. For example, consider the Amazon rainforest, less than five percent the açaí industry in Brazil. Although the of those species can survive on the oil palm 72 plantations that also replace primary growth reach remote areas of the jungle via rivers and forest throughout Peru (Srinivas and Koh). maintain a high-quality harvest (Panduro and With the right resources, communities can de Jong, p. 270). Although large companies learn to harvest wild aguaje and other NTFPs like Backus have been successful, the expense in a sustainable way that eliminates the need of shipping the frozen pulp prevents many for domesticated aguaje plantations. markets from accessing NTFPs. With the help of partners to provide Thus, investors and others interested in capital and education, communities can alternative development should explore ways develop ways to harvest forest products in to process NTFPs that result in lower shipping profitable and sustainable ways. For example, costs. Rather than pulping and freezing fruits, in the community of Roca Fuerte in the for instance, companies might invest in drying central Peruvian Amazon, the Center for or aseptic3 packaging plants. Dried fruit has the Development for an Indigenous Amazon a higher value per weight—Peru can look to (CEDIA) has hosted workshops to teach a new Honduras for a dried fruit success story. There, method of harvesting wild aguaje without village-level drying facilities each produce more cutting down the palms. The technique enables than ten tons of dried fruit per season, last for a harvester to quickly climb aguaje trees and ten years, and cost only $5,000 to $10,000 to harvest the fruit in just 30 minutes per tree. To build. Aseptic processing plants are another promote this method of sustainable harvesting, excellent option. Aseptic processing creates Roca Fuerte starting declaring nearby regions shelf-stable fruit concentrates. Like drying, protected areas, prohibiting the destruction this method produces products with less water of aguaje trees. Every month, policy enforcers weight that do not require freezing. Moreover, visit the areas to check on the health of the like freezing and pulping facilities, aseptic community and forest (Manzi and Coomes). processing plants can be mounted onto barges Although harvesting NTFPs can provide a and floated to sources of fruit in remote areas. viable alternative to subsistence farming, the Because many forest fruits have short, intense harvesting must be done on a limited scale seasons, floating aseptic processing plants can so that the flora of the forest can regenerate. sail along the many Amazonian rivers, working As the industry expands, it is essential to with local people to harvest and process the in- verify that companies are buying NTFPs only season NTFPs (Clay and Clement). from sellers who are following regulations to Another way companies can increase the harvest sustainably. Because the NTFP harvest potential of the NTFP industry is by taking the is limited in scale and requires high shipping natural sugar percentage of fruits into greater costs, many companies have been deterred by consideration. Currently, most Amazonian the high prices of wild-sourced goods. There forest fruits are chosen for their strong, unique are several options to improve the economic flavors that can be diluted when they reach viability of an expanded NTFP industry. their destination. Instead, some researchers The first key factor in increasing the suggest that it makes more sense to prioritize potential of the industry is creating ways for the sugar concentration of fruits. Choosing NTFPs to be processed locally. Like the quickly fruits with high sugar concentrations would perishing açaí berry that did not achieve save time and money because a higher popularity until it was discovered that it sugar concentration means less water in the could be locally processed into a frozen pulp, resulting pulp. Thus, the overall weight is many other NTFPs cannot reach high-paying reduced and the product is less expensive to markets without similar processing. Some ship. As the authors suggesting this method companies are already taking advantage of put it, “It makes no sense to ship frozen water strategic processing facilities. The Peruvian halfway around the world” (Clay and Clement). beer company Backus, for instance, owns a By studying ways to optimize NTFP processing floating processing plant to pulp and freeze the 3Aseptic processing methods expose a product to a quick flavorful camu camu berry to use in beverages. burst of heat to minimize the chance of contamination With this mobile plant, the company can from microorganisms. 73 and minimize shipping costs, investors can capability to take advantage of those resources. benefit immensely from the wealth of naturally In this way, the country can ensure that new occurring products in the jungle. By working legislation will be implemented. The aim of with rainforest populations to harvest these such a political environment is to minimize goods sustainably, the NTFP industry can further development projects that segment one day eliminate reliance on slash-and-burn primary forest and open it to deforestation agriculture. from slash-and-burn agriculture. As Peru relies less on industries implicated Conclusion with deforestation, it will need to help people in Amazonian communities develop alternative Peru’s rainforest ecosystem and the ways to make a living. For instance, in the communities that depend on it have much lowland river basin of Loreto, where slash-and- to gain if industries in the Amazon can be burn agriculture is especially prevalent, public developed in a sustainable way. The two key and private interests could partner with local factors in promoting sustainable development communities to sustainably harvest NTFPs in Peruvian Amazonia involve clarifying and process them locally, thereby minimizing national policies and developing alternative shipping costs, whether by implementing new industries to equitably benefit Amazonian types of processing or by using new criteria communities. Government sectors and for choosing which NTFPs to process. By subnational governments should coordinate creating a collective wisdom about the value their efforts to create a common vision about of the rainforest and sustainable alternatives the value of the rainforest. Then, Peru can create to deforesting industries, Peruvians can utilize a unified legislative procedure for determining rainforest resources without sacrificing the land use that moderates the needs of all relevant jungle on which they depend. Sustainable interest groups and finish land classification as development of the Amazon rainforest is soon as possible. When allocating resources essential for improving the lives of jungle to subnational governments, Peru should communities now and saving the rainforest for emphasize training programs so that regional generations to come. and local governments have adequate technical

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