Debt for Nature Swaps in Latin America
Latin America is currently in a debt crisis. Poor management, over lending by banks, and a bad turn in the world economy has produced severe debt that is forcing these countries to exploit their natural resources in an attempt to ease their economic problems. However, many individuals and organizations have seen a silver lining to this cloud and are now buying debts (at a discounted rate) and giving them back to the debtor countries in return for environmental protection. Although increasingly difficult to achieve, these debt for nature swaps are beneficial to the debtor country and the world. So why do we go to all this trouble for a few countries that are not even big players in the world market? I discovered that we loose about 40 million acres of forest each year and 27 million of that is tropical rain forrest. (White house fact sheet on the President's Proposal for a Global Forest Convention). Considering that the world's forest act as respiration, filtration, and cooling system, we must make a concerted effort to conserve and start repairing the damage we have already done. A large part of the worlds forest rest in the debt ridden counrties of Latin America. In an attempt to repay these huge debts, countrie
Almost all debt-for-nature swaps have some US involvement. Usually we act as the sugar daddy, financing non government organizations and setting up regulations that the debtor nation must meet. In 1990 the US established these regulations under Title VI of the 1990 fact act. The debtor country must be making progress toward the establishment of certain world bank reform programs and be making reforms in the foreign and domestic investment area. The debt swap between the non government organization and the debtor country is negotiated by the US. In exchange for forgiveness of the debt the debtor country must make interest payments into the project, which is governed by a local government body. The body which negotiates the swap is composed of relative US government organizations and some non government relative organizations. Their job is to provide guidance and help carry out the administrative maneuvers needed for such a swap.
Some common words found in the essay are:
Latin America, Title VI, Latin Americas, Latin American, Bank IMF, Convention Considering, FOREST SERVICE, United Nations, debtor nation, latin america, debt nature, government organization, debt-for-nature swaps, Conservation International, debtor country, debt converted, local government, environmental protection, nature swaps, debt nature swaps, latin american countries, debt nature swap, conservation latin america, usda forest service, MIKE WEBB,
Approximate Word count = 4672
Approximate Pages = 19 (250 words per page double spaced)
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