REPORT MARCH 2011 Forests MAKING A PACT TO TACKLE DEFORESTATION IN PARAGUAY In 2004, the government of Paraguay passed a Forest Conversion Written by Sarah Hutchison at Moratorium or ‘Zero Deforestation Law’, making it illegal to clear any WWF-UK, with support from forested land in eastern Paraguay. Since then, deforestation rates in the Lucy Aquino at WWF-Paraguay, Upper Parana Atlantic forests have fallen dramatically – by 90% against a this case study draws on 15 2002 baseline. As a result of this great success, the law has been extended interviews (see Annex 1), and twice. The government has now committed to cut net carbon emissions from previous lesson-learning reports changes in land use to zero by 2020. and case studies. It provides an example of how we are working to WWF and our partners have played a critical role throughout this process. We mobilise government, civil society proposed the initial moratorium, and have been raising public awareness, and and private sector actors to mobilising civil society, government departments and producers at national ensure effective policy and regional levels to work together to sign up to and conform to forest laws. enforcement. The advocacy work This case study examines and reflects on the process that led to compliance of WWF and its partners has with forest law in eastern Paraguay and the role played by WWF. often been successful at achieving policy changes, but perhaps the most challenging task is to ensure 1. INTRODUCTION that we can turn rhetoric into action by mobilising key “Previously there was no interest in forestry conservation… the problem was stakeholders. This is an example seen as very far away…We have managed to educate half of the country – it of how we help make legislation takes years, it is a process you have to continue to develop. It is not just about work on the ground and of how deforestation but also about working with the people who really want to conservation does not necessarily conserve their forests” (WWF-Paraguay) have to compromise productive Paraguay is a land-locked South American nation wedged between Brazil, agriculture. Argentina, and Bolivia. It has a population of approximately six million people, of which 97% live in the eastern part of the country, the area once dominated by the Atlantic forest – one of the world’s most biodiverse ecosystems. Prior to 2004, Paraguay had the second-highest deforestation rate in the world. More than 7 million hectares of forest were destroyed in just 40 years. As a result, a once continuous and impenetrably dense ecosystem is now a patchy series of isolated fragments, with just 13% of the original forest area remaining. Most of this forest was cleared for agriculture – soy and cattle – which forms the backbone of Paraguay’s economy. 1 © Andrea Garay / WWF Paraguay © Fernando Allen / WWF Paraguay live in poverty poverty extreme 19% of households for the eastern 1 Making a pact to tackle deforestation in Paraguay agricultural settlements still remain. Cheaper land prices in Paraguay also Paraguay prices in land Cheaper still remain. settlements agricultural agriculture. large-scale in involved Brazilians of numbers large attracted development and squatters posing a particular threat to their way of life. threat posing a particular and squatters development Many immigrants fromEuropean, Asian and other Latin American nations havehome over Japanese their made Paraguay the last century. The indigenous population of Paraguay consists of 17 ethnic groups.They with land marginalisation, poverty of problems and face significant There are large disparities in the distribution of land and wealth in the wealth in land and of the distribution disparities in large There are country: 70% of the land is owned by just 2% of the country’slandowners; of the land; 5% covering hectares or less, own 20 80% of the landowners and 19% live of households poverty2007). in extreme (World Bank, governance include weak institutions, poor rule of law and a culture of corruption. Paraguay’sdemocratic system is new and fragile: the election of Fernando Colorado Party. rule by the decades of one-party Lugo in 2008 ended six Challenges to Paraguay’s futuredevelopment and good environmental Politics, poverty and inequality in Paraguay in Paraguay and inequality Politics, poverty In 2004, it was becoming clear that due to poor enforcement and a booming years a few if within Atlantic forests would lose all its industry Paraguay soy nothing was done to bring down deforestation rates. In a last ditch attempt to consultants, team of help of a multidisciplinary with the avoid this, WWF, drew up a proposal for a Forest Conversion Moratorium 2. COMMITTING TO ZERO DEFORESTATION DEFORESTATION TO ZERO 2. COMMITTING region of Paraguay. In 2004, the Paraguayan Congress approved the approved Paraguayan Congress the Paraguay. In 2004, of region proposed moratorium (known as the Zero Deforestation Law) for two years (Law 2524/2004).This made it illegal to transform convert or any forested start of the the This marked Paraguay. of eastern forests land in the Atlantic moratorium’s implementation. Changing the Law: The Zero Deforestation Law 2 In 2004, it was becoming clear that due to poor enforcement and a booming years a few if within Atlantic forests would lose all its industry Paraguay soy nothing was done to bring down deforestation rates. In a last ditch attempt to Underlying these remarkable achievements is the existence of coalitions that of coalitions the existence is achievements remarkable Underlying these and national civil society at both of and backing the support have garnered that are helping to at the different factors looks local level. This case study on especially Paraguay. It focuses in eastern thinking in create a sea-change turning the progressmade in to essential that have been the coalitions deforestation around. Reforestation is now at an all-time high, and there has been a significant a significant has been and there at an all-time high, is now Reforestation voluntary movement of farmers to come into compliance withthe country’s forest law. The extent of forest loss could be considered a situation almost beyond the almost a situation could be considered loss of forest The extent point of no return. However, in a relatively shortperiod, deforestation in the Atlantic forests has dropped 90% (comparingby the deforestation rate for baseline). a 2002 2009 against Making a pact to tackle deforestation in Paraguay avoid this, WWF, with the help of a multidisciplinary team of consultants, The drivers of deforestation in drew up a proposal for a Forest Conversion Moratorium for the eastern Paraguay: region of Paraguay. In 2004, the Paraguayan Congress approved the x Disconnected and contradictory proposed moratorium (known as the Zero Deforestation Law) for two years laws and incentive systems. (Law 2524/2004). This made it illegal to transform or convert any forested x Indiscriminate conversion of land in the Atlantic forests of eastern Paraguay. This marked the start of the forest to pasture and moratorium’s implementation. agricultural land driven by population growth, land colonisation and a near absence Creating support for a moratorium: The Social Pact Coalition of land-use control. x High levels of corruption within We were aware that no progress could be made to enforce the moratorium the state institutions charged without the support and backing of a wide range of stakeholders. So we also with the administration of embarked on a stewardship campaign to raise awareness among the public, forest resources, and impunity government and producers of the key importance and value of the Atlantic against prosecution for those forests, beyond their economic potential (e.g. their effect on human health; who can afford it. their role in water balance for maintenance of microclimates, which is vital x Weakness of government for the productivity of human commercial activities; and their impact on institutions to implement forest biodiversity and indigenous culture, among others). law – including low budgets, poor salaries and under-valued In addition, we helped to create a stakeholder coalition initiative, called the human resources. Social Pact for the Conservation of the Atlantic Forests. The coalition brought x Inadequate forest management, together interests from different sectors to unite around the common with policy being geared objective of ‘Combining willpower for the conservation and sustainable exclusively towards the development of the Upper Atlantic forests’. The Social Pact created a network exploitation of forested areas, of support for the implementation of the moratorium, and formed a vital and the absence of a ‘forest platform for dialogue between the different interest groups. It was a police force’ to ensure necessary step given the frequent confrontations between private groups compliance with forest laws. (including unions and social organisations) and the public authorities. x Poorly conceived incentives for loans, and the financing of “Although there are very good laws and deforestation law and a good legal agricultural development, element, the compliance is very poor or had been very low when this without a requirement for the programme started. The participation of the civil society was therefore crucial evaluation of environmental to support enforcement of the law. Although civil society organisations do not impact analyses (EIA). have a legal role they have a role to raise these issues. So the Social Pact and x Lack of public knowledge and the communication campaign were the tools that we had at that moment to appreciation of the importance promote and raise issues regarding deforestation… We tried to bring the and value of the forests beyond biggest organisations related to rural development – the Soy Bean their economic potential. So Association, etc – and some of them were very tough to work with. But over forested lands have been sold at time they came to understand that we were not against income, development low prices, leading to massive or crops but against deforestation.” (former WWF staff member) over-development of agriculture and ranching.