Deforestation to finance development can produce short-term benefits for the developing country. The benefits can include: easing of debt crisis; obtaining currency for foreign exchange; securing national boundaries; attracting international investment; easing of social problems in some overcrowded areas (due to transmigration programs); and increasing political control in frontier areas (benefit for governing party, not for opposition parties).
However, if the prices received for exported timber are below replacement costs, the solution to debt crisis will only be temporary. Loss of natural capital precludes long-term solution to economic ills; delays long-term solutions to economic problems; increases social problems on the frontier; increases environmental problems; and increases obligations to transnational corporations that may not be in the best national interest.
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