Understanding the impacts of the 2007--08 Global Financial Crisis on Brazil's forest sector: A qualitative study

Economic downturns are known to affect the management of natural resources and the environment. Although statistics and industry figures have revealed some impacts of the 2007-08 Global Financial Crisis (GFC), its dynamics and long term consequences for forest management, particularly in the context of South America, are unknown. Using qualitative research methods, combining grounded theory and case study analysis, this research aimed to better understand how the GFC impacted sustainable forest management (SFM) in Brazil through the experiences and perceptions of highly knowledgeable stakeholders. This was done with a view to providing a more holistic and integrated perspective on the GFC and to inform future policy and management processes. Findings from this study indicate that the GFC interacted with other political, social and environmental phenomena to produce both negative and positive impacts on SFM in Brazil. Negative impacts included: 1) restrained production of forest-based products; 2) declines in exports; and 3) reduced investments in non-market driven socio-environmental projects. Conversely, opportunities associated with the GFC included: 1) realizing competitive advantages in the plantation sector; 2) restrained deforestation in the Amazon Basin resulting from increased risk aversion and a decline in timber demand; and 3) support for third-party forest certification to maintain access to risk-averse markets. Traditional forest-based communities that often operate within informal economies were not seen as being heavily impacted by the GFC. This study represents a first step towards improving our knowledge on the relationships between economic downturns and sustainable forest management in Brazil.