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EXPLORING CHILE

Chipping Away a Global Treasure: Chile's Native Forest Crisis

Defensores del Bosque Chileno 1998 International Campaign Report
by Jimmy Langman

If you haven't been in a Chilean forest, you don't know this planet.
- Pablo Neruda


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Today more than half of the world's original forest cover is destroyed, the remaining is mostly degraded, and only 22 percent remains as "frontier" forests, defined by the World Resources Institute as "large intact natural forest ecosystems capable of providing a safe habitat for all of its indigenous species." Just 3 percent of the world's remaining frontier forests are in the temperate zone, and one-third of the threatened temperate frontier forests are found in Chile.

Temperate rainforests are even rarer, originally covering just 0.2 percent of the Earth's land area. They are more endangered than tropical rainforests because of this smaller land area - and today more than half of the world's temperate rainforests have already been destroyed. Southern Chile is home to one of the world's last two extensive temperate rainforests, the other extends in various conditions from northern California to British Columbia and southeast Alaska.

Only five percent of the world's temperate forests are found in the southern hemisphere, in Chile, and in Argentina, Uruguay, New Zealand, Australia and South Africa. Many millions of years ago, in the Eocene era, Chile's native forests were once joined with these other southern temperate forests in a vast supercontinent scientists call Gondwanaland. Even today these Gondwana forests still have similar characteristics and are each dominated by Nothofagus and Podocarpus trees. But when the supercontinent broke-up, Chile evolved into a biogeographical island, isolated from other forested areas by the Atacama desert to the north, the Andes mountains to the east, and the Pacific ocean to the west. This is a principal reason why some scientists estimate that as much as 90 percent of plant and animal species in Chile's forests may be endemic.

Chile has the highest rate of biodiversity of the world's temperate forests due to its many diverse ecosystems and varied landscape and climate. Chile's forests have one of the world's largest concentrations of biomass, producing between 500 to 2000 tons of organic matter per hectare. Many valuable medicinal plants have been discovered in native forests by the indigenous people of southern Chile. The forests are habitat for numerous species of native mammals such as wildcats, fox, and deer. However, 40 mammals are listed as endangered, vulnerable or rare by CONAF, Chile's forest and park service. Chile's national emblem species, a native deer called the huemul, is on the borderline of extinction.

The many vast tracts of pristine, old-growth forests remaining in southern Chile include trees hundreds and thousands of years old. Two of the most extraordinary trees are the alerce (Fitzroya cupressoides) and araucaria (Araucaria araucaria). Both have protection status in Chile as Natural Monuments, but there continue to be cases of illegal logging as most forests containing these trees are privately-owned. The alerce ranges up to 4,000 years old and is the second-oldest living species on Earth with only California's bristlecone pine being older. It is a conifer closely resembling the coastal redwood of California, and a giant -- often reaching 4 to 5 metres across in diameter. The araucaria, nicknamed "monkeypuzzle" because of its tangled branches which swirl around its tree top, are found in the central coastal range and high in the Andes. They can live more than 2,000 years, grow up to 50 metres high and over 3 metres in diameter. Botanists say the araucaria is an archetypal tree as its ancestors date back 200 million years.

Chile's forests are mostly dominated by southern beeches such as coihue and roble (Nothofagus), manio (Podocarpus), and broadleaf evergreen trees like the ulmo (Eucryphlia) and laurel (Laurelia). Chile's far south includes sub-antarctic, boreal forest dominated by the coihue and lenga (Nothofagus). There are more than 50 species of trees in Chile's forests, 95 percent are endemic, and 38 are listed as endangered, vulnerable or rare.

 

Exotic Forestry

We are the new ecologists of the world, not the old ecologists who believe in total preservation.
Robert Manne, CEO Savia/Trillium Rio Condor Project
From 1540, when Pedro de Valdivia marched into Chile and set it up as a colony of Spain, and accelerating in the mid-1800s when large numbers of immigrants from Europe settled in southern Chile, all the way to the mid-1900s, tens of thousands of forests were burned and cleared for agriculture, livestock grazing, and towns. By 1955, according to a government study, one-third of Chile's original forests were destroyed.

For many years the native forests have been logged commercially, but the roots of Chile's modern forestry industry really began in 1974 when the Pinochet dictatorship began its free market reforms. The government moved forcefully to establish private property rights as part of Chile's constitution and gave back to original owners many of the forests expropriated under the Agrarian Reform of prior governments. They privatized the forest industry along with other economic sectors by selling off at below-cost prices almost all publicly-owned forests and processing facilities.

The ownership of most of Chile's forest industry was thus concentrated in a few large companies, a situation that prevails to this day. For example, the two largest holding companies, Arauco and CMPC, own 46 percent of the radiata pine plantations in Chile, 75 percent of pulp production, and are the two largest producers and exporters of lumber. CMPC also produces 90 percent of the paper in Chile. Just four Chilean companies account for more than 70 percent of forest exports, and with another seven holding companies controlled by foreign capital, they account for more than 80 percent of forest exports from Chile.

The economic reforms of the Pinochet era also included an export promotion program that included tax credits, and because Chile was an economy overwhelmingly dominated by the mining industry the government intervened in the economy in order to diversify exports from its bountiful natural resource base. In 1974, through Decree Law (DL) 701, they gave reimbursement for up to 75 or 90 percent of the costs of planting trees. These subsidies have been used almost entirely for establishing the forest industry's exotic tree plantations - only 4 percent of the subsidies have gone to small landowners with less than 50 hectares.

Exotic-species tree plantations of monterrey pine and eucalyptus also grow more than twice as fast in Chile as in their native lands. This fast biological growth rate and the generous DL 701 subsidies have led to a tremendous rate of increase in the area of tree plantations, from 200 thousand hectares (one hectare = 2.47 acres) in 1974 to 2.1 million hectares today. Tree plantations now supply 90 percent of the wood for Chile's forestry industry. Yet just one-third of existing tree plantation production capacity is presently being used, and Chile's wood products association (CORMA) projects that in twenty years the land area of tree plantations will double.

More than 80 percent of the enormous quantity of wood from plantations is to meet an increasing global demand for raw materials in the form of logs, pulp and wood chips. Forestry exports grew 23.9 percent a year over the last decade and was a record high US$2.2 billion in 1995. This is more than 56 times its 1973 total of US$39 million. CONAF projects that exports will be at least US$3 billion by 2010. Forestry products are Chile's third largest export at 11.8 percent of total exports, and are shipped to 86 countries, the leading destinations are respectively Japan, the United States, South Korea, and western Europe.

Multinational timber companies are fast joining Chile's big timber companies in the forest export boom. While the majority of Chile's pulp and plantation industry is domestically owned and operated, major foreign investment in Chilean production includes New Zealand's Carter Holt Harvey and Fletcher Challenge, Shell of the Netherlands, and from the United States, Simpson Timber, International Paper, Scott Paper, CitiBank and two pension funds, RII-UBS and Xyem. Japan's Mitsubishi, Sumitomo, and Daio Paper each have eucalyptus plantations along with joint ventures with various Chilean companies in the wood chip export business. Direct multinational logging in native forests includes Cranefield of Canada, and the Trillium company/Savia investment group of the US who have a grand-scale project covering 250,000 hectares of the island of Tierra del Fuego.

A Central Bank of Chile report in late 1995 shows that the pace of destruction of native forests has more than doubled since 1984. The report projects that without changes in current methods of exploitation, Chile's unprotected native forests may be entirely deforested in 20 years. The Central Bank report has been verified by independent scientists, the United Nations Food and Agriculture Organization (UNFAO) and others, but Chile's government and timber industry continue to discredit the report and argue that Chile's native forests are actually increasing because of tree plantations and new growth forests. But those aren't native forests, they are tree farms and young trees which might become forest.

Chile has a total land area of 75.5 million hectares. Forest ecologists estimate that 30 million hectares, or 45 percent of the country, was originally forested. There are almost 7.5 million hectares of "commercially productive" native forests left according to official government studies. Among this number, some forests are near rivers, steep slopes and other inaccessible places considered protection forests and prohibited from cutting, so the Central Bank of Chile estimates there are really 6.3 million hectares of native forest that are potentially available to cut. And a study by Chile's environmental commission says that half of these forests are degraded. Only 1.4 million hectares of native forests are protected in Chile's national system of protected areas (SNASPE), which represents just 11 percent of SNASPE's overall 13.8 million hectares.

Chile is second to Brazil in forest exports from Latin America, and according to the UNFAO, the second most deforested country in Latin America. Destruction of Chile's native forests is also increasing. The Central Bank of Chile report estimates that 700 thousand hectares or 11 percent of all native forests were destroyed between 1984 and 1994. Chile's Forestry Action Plan, a joint government and non-governmental report, projects that as much as 120 thousand hectares may be destroyed each year over the next decade -- the equivalent to 21 soccer fields per hour.

 

Roots of Destruction

It is silly to leave all of them (native forests) there without them doing a damn thing. They are not all contributing to biodiversity, some are not contributing to anything.
Eladio Susaeta, former President of CORMA
The clearing of native forests for agriculture is sharply declining as most forests left are on unsuitable terrain. But many "campesinos," the peasant farmers who live in the countryside, degrade large areas of forest for livestock grazing and often their animals overgraze the forest floor and damage the regenerative capacity of soils. Some campesinos also cut and pull out massive volumes of fuelwood, an estimated six million cubic meters of fuelwood are extracted each year from native forests. Chile's timber industry claims this is the largest source of forest destruction, but studies show fuelwood is mostly gathered in already degraded forests or from fallen and standing dead wood.

The biggest sources of native forest destruction are rather overexploitation for wood chips and clearcutting for tree plantations, which taken together doesn't just degrade but is completely destroying forests. The Central Bank report estimates that between 40 to 90 thousand hectares of native forests destroyed each year are converted to exotic species tree plantations. These tree plantations cause loss of biodiversity and wildlife habitat for many vulnerable and endangered species, soil erosion and water pollution. It is also estimated that more than 35,000 campesino families are threatened with displacement by the growth of tree plantations. Thousands of campesinos have already been forced to migrate to cities where most have found only unemployment and the countryside has experienced a profound loss of local culture. A study in the coastal range of the X Region shows that 44.8 percent of the tree plantations of that zone were established following direct substitution of forest.

Timber companies have more than 3 million hectares of already deforested land available in southern Chile for planting, but Chile's native forests are an attractive investment: the forests can be bought cheap, they can be clearcut first for wood chips, and then they provide fertile soil for conversion to tree plantations.

If the small and medium landowners are not pressured to sell their land to the timber companies, then often they hire "fly-by-night" operations to help them illegally cut in their native forests and sell the logs to wood chip mills. Afterwards, many of these landowners typically ask the government to subsidize tree plantations in their now "degraded" forest and then clearcut the remainder of their forest for wood chips. Chilean forest law allows clearcutting in non-sloping, degraded forests. Or through a legal loophole, they request a permit to clearcut for livestock grazing or agriculture, and then sell their logs for wood chips and request a modification of the permit for a tree plantation. Many landowners don't even replant and instead abandon the land after logging.

Because of a lack of resources and political will, CONAF has little control over the illegal cutting. According to a CODEFF study, 60 percent of forest law violations end up with no sanction, fines that are levied for violations are almost always reduced to low levels in regional courts, and only 7 percent of fines are ever paid. A University Austral of Valdivia study states that only one-fifth of logging in Chile's forests are even done with management plans. Chile's Forestry Action Plan states that just 5 percent of the exploitation in native forests each year is done with proper management.

The first stage in the cycle of deforestation, and the primary incentive for the many small and medium landowners, is selling native trees for wood chips and fast money: the wood chip mills don't need the best wood rather they buy almost all of it. According to CONAF, 87 percent of native forest exports in 1996 were wood chips. The typical second stage in the deforestation process, and the primary incentive mainly for the timber companies, is Chile's forest law allows for the conversion of native forests to tree plantations and even subsidizes it. Finally, for small and medium owners there is currently no viable economic alternative: they are neither trained nor financially motivated to sustainably manage native forests - there is more money to be made in the short-term by trashing forests.

 

The Chip Trade

The Japanese businessmen want to develop land owned by indigenous people and make some sort of new world. The problem is that we indigenous people can not survive in such a new world.
A Church Minister from Indonesia's Irian Jaya
Demand for wood chips is increasing pressure on Chile's native forests. Chile's wood chip sector has grown fast and is now the third largest exporter of wood chips in the world after the United States and Australia. Wood chip production rose from 76 thousand cubic meters in 1986, all from pine plantations, to 2.5 million cubic meters in 1995 with 62 percent sourced from the native forests. Almost 95 percent of native forest wood chips go to Japan's pulp industry. The Japanese companies involved in Chile's chip trade are Mitsubishi, Itochu, Sumitomo and Marubeni. The strategy of these trading companies is to secure long-term access to importing native forest wood chips while being placed at a minimum risk and responsibility of compliance with national forest laws.

The Japanese trading companies are involved as buyers only. They currently sell the chips to Japan's Mitsubishi Paper, Daio Paper, Oji Paper, and Nippon Paper, who then process it into papers and boards. Through long-term contracts of usually 7 to 10 years, as well as some investment, they have set up joint ventures with Chilean wood chip producer - exporter companies. There are five, INVERHART, Forestal Del Sur, COMACO, ASTEX, and Magallanica Industrial, who together control 98 percent of exports. These producer-exporter companies buy much of their chips from small producer operations that are set up solely to produce the chips. Both the producer-exporters and producers buy timber from the small and medium landowners and timber companies. Mitsubishi is the only Japanese importer involved at each level of the chip trade: buyer, paper producer through Mitsubishi Paper, and through ownership of ASTEX they are directly responsible for 9 percent of Chile's chip production and export.

Japan imports more than 80 percent of the total volume of wood chips produced worldwide. Their demand for the short fibre from native forest hardwoods is to make higher quality papers and boards. While their demand for softwood chips such as pine has not changed much in the last decade, the volume of hardwood chips exported to Japan has tripled. Wood chips are responsible for two-thirds of the global trade in raw wood and because of population growth and expansion of the industry to other Asian countries, industry analysts predict the demand for native hardwood chips will be even higher the next 15 years. Already, Chile exports a small amount of chips to Taiwan and Korea.

The Japanese paper industry continues to buy up the world's remaining cheap native forest trees while bracing for the future by investing in tree plantations. A Japanese industry study projects that by the year 2010, they will replace more than one-third of their existing demand for native forest pulp with tree plantations. Japanese companies already own 80,000 hectares of plantations in other countries, with 40,000 in Chile, and the Japanese industry report projects an increase of their global plantations to at least 600,000 hectares to meet future needs. While this is preferable to buying more native hardwoods, many of these future tree plantations will surely be schemes to convert native forests.

Currently, 20 percent of Chile's wood chips comes from eucalyptus, and Chile's supply of eucalyptus for chip exports is expected to double in the year 2000. Industry prefers eucalyptus over native hardwoods: it is uniform which makes it easier to process, while native hardwoods comprise different species with varying degrees of density. This rise in eucalyptus chips will help lower demand for wood chips from native forests, but not replace them. Wood chip mills will not stop buying native forest logs until Chile changes its policies, Japan's demand lowers, or there are no more forests to waste.

However, Chile's wood chip export industry is temporarily depressed. In 1996, the total volume of Chile's wood chip exports dropped 28 percent to its lowest volume since 1991. Instead, Japan bought more chips from other countries. The present slowdown in Chile's wood chip sector is a good opportunity to reevaluate its contribution to Chile. Defensores del Bosque Chileno (DBCh) recently commissioned Marcel Claude, the Central Bank of Chile's former Chief of Environmental Accounting, to do an economic study of Chile's wood chip sector. The bottom line is: while native forest wood chip exports have experienced tremendous growth and profits since its inception, it has no importance to Chile's economy and, in fact, over the long-term is damaging the economy, society and environment.

No Value Added

We must not let the environment stand in the way of economic growth.
Chile's President Eduardo Frei

Table 1: Contribution of Native Forest Wood Chips to Chile's Economy

Native Wood Chips Forestry
1995 Total Earnings US$ 138. 5 million US$ 2.2 billion
Export Growth Rate 154.9 % 20.8 %
(1989-95)
% of Total Exports 0.73 % 11.9 %
(1988-95)
% of GDP 0.05 % 3.05 %
(1988-95)
% National Employment 0.01 % 2.13 %
(1991-95)
Corporate Net Profit 73 % 58.02 %
(1988-95)

Chile's native forest wood chip exports have scored impressive earnings, US$138.5 million in 1995, this is 60 percent of the wood chip sector total earnings. More impressive is the average rate of growth of Chile's native forest wood chip exports, a spectacular 154.9 percent. Native forest wood chips though meant very little to the overall Chilean economy during this same period, only 0.73 percent of Chile's total exports, compared to total forestry exports which was 11.9 percent. The native forest sector was only 0.05 percent of Chile's Gross Domestic Product (GDP), the forestry sector 3.05 percent. In simpler terms, if you were to reduce all of Chile's economic income for this period to 100 dollars, native forest wood chips were responsible for a fraction equivalent to approximately 1/2000.

Societal benefits of the native wood chip industry is also marginal. It is responsible for 593 direct industry-related jobs, and another 2,076 indirect jobs, out of Chile's total national labor force of 5 million. In percentages, the native forest wood chip sector is responsible for 0.01 of national employment, the forestry sector only 2.13 percent. According to the balance sheets of Chilean wood chip companies, 73 percent of earnings after costs went to the companies as straight profit, 17 percent went to worker salaries, and only 10 percent was re-invested. Clearly, the wood chip companies are not putting a lot back into the local economy in relation to what they earn.

Perhaps most important to Chile is the opportunity cost of native forest wood chip exports. If Chile continues to destroy its native forests it will cause other sectors of the economy to decline or disappear. Marcel Claude's study compared the value of native wood chips to two other fast growing, established sectors of Chile's economy that utilize native forests, tourism and the manufacture of furniture and furniture parts.

 

Table 2: Economic Opportunity Cost of Native Forest Wood Chip Exports to Chile

Tourism Ecotourism Ecotourism Furniture Native Chips
Regions 8-10
Earnings in Relation to Native Chips (1988-94)
66.4 7.4 3.6 5.7 1.0
Employment in Relation to Native Chips (1991-94)
322.7 14.6 1.0
Investment in Relation to Native Chips (1989-94)
59.3 5.4 1.0

According to statistics from SERNATUR, Chile's national tourism office, the tourism sector earns a whopping 66 times more than native chips. This revenue is of course also widely distributed among hotels, restaurants, transportation such as buses and airlines, souvenir shops, travel agencies, and more.

Ecotourism is the fastest growing sector of tourism in Chile. According to CONAF, foreign visitors to Chile's national parks have increased 20 percent a year since 1990, and there were almost one million visitors in 1995 - more than 60 percent of all visitors to Chile. In order to approximate the potential tourism revenue that could be lost if Chile doesn't protect native forests, the study sought to define how much of Chile's tourist revenue is due to ecotourism. It took the number of visitors to national parks as an indicator of the number of tourists motivated to come to Chile because of the natural landscape, and half the daily average of what they spend. Claude's study estimates that ecotourism revenue can be 7 times more than native chips. Ecotourism revenue for Chile's southern regions XIII -X, the most important areas for native forest wood chips and also the least protected forests, can be 3.6 times that of native forest wood chips and almost 50 percent of the total ecotourism revenue in Chile.

Chile's export of raw wood plummeted in 1996, while the export of value-added wood products dramatically increased. Currently just 9 percent of wood extracted from native forests goes to these products, but it is here where the potential of sustainable forest management is: value added products utilize less and better quality wood, but because it requires more processing, it can create more jobs and revenue for local communities and pay landowners more than 3 times the money per log that they get from wood chippers. If Chile were to subsidize sustainable management and provide economic support for value-added products, it may be possible for example to have furniture manufacturers in native forest areas. The study shows Chile's furniture industry has a much greater contribution to society than native forest wood chips, the GDP is 5.7 times more, the sector re-invests 5 times as much, and employs 15 times as many people.

Finally, there are what economists call external costs, environmental and public health impacts and their mitigation, which are typically not included in the costs of production. And the impact of the depletion of natural resources on future stocks, which worldwide is now included in the economic definition of "capital."

The production and exportation of native forest wood chips leads to clearcutting and extensive deforestation which causes severe impacts to soil. In Chile, 62.6 percent of the land is now threatened with desertification, while soil erosion is affecting 45.5 percent of the land. Only 5.7 percent of the land area of Chile is suitable for agriculture, and water quality of many lakes and rivers is poor. Claude's study found that in order to begin restoring soils damaged by exploitation of native forests to supply wood chips, it would cost 90 percent of the revenue earned by the wood chip companies from 1988-94. Considering this cost, the contribution of native forest wood chips to Chile's economy is 0.016 percent.

 

Eight Ways We Can Save Chile's Native Forests

Every form of life is unique, warranting respect regardless of its worth to man, and, to accord other organisms such recognition, man must be guided by a moral code of action.
World Charter for Nature, adopted by United Nations General Assembly 1982
The value of the native forest wood chip business to Chile's economy is low, and in comparison to the economic benefits from native forest protection for other possible alternative uses ought to be considered an enemy to Chile's economy and society. The destructive impacts of logging for wood chips makes the activity an ecological crime. Japan for cheap pulp, and Chile for quick cash, is destroying an irreplaceable part of the patrimony of Chile and the world.

Chile's neo-liberal economic policies are almost fundamentalist in the belief of a free market and its low environmental regulations and enforcement are considered a comparative advantage in the all-important international trade. The government's policy is seemingly to look the other way -- while corporations pollute and destroy the land, air and water. Furthermore, the benefits of the economic boom in Chile is still the old scenario of the rich getting richer and the poor getting poorer. In 1970, 20 percent of Chileans were in poverty, today 30 percent of the population is officially in poverty. The creeping social and environmental malaise is not hard to spot in Chile. Check out Santiago's smoggy skies, look into the eyes of the poor, ride by central and southern Chile's clearcuts and tree plantations.

A new development model is needed here, not the one promoted by the world's financiers, but the one Chile agreed upon at the UN Earth Summit five years ago. The change in politics from military dictatorship to democracy encouraged much optimism in 1989, most Chileans thought it would mean greater attention to environmental and social problems. In fact, Chile has continued the pro-business policies of the Pinochet regime and its approach to these issues reflects it. Our challenge is to build a conscience in all aspects of Chilean society, from the small native forest owner to the Presidents of corporations to President Eduardo Frei. Defensores del Bosque Chileno believes international support for its campaign can be part of the solution. Here are eight ways we can save Chile's native forests:

1) Wood Chip Economic Conversion Program. A global campaign is needed to persuade Japan to set a goal of eliminating its use of native hardwoods for paper and cardboard products, and instead: increase the use of wastepaper and alternative non-woody fibers such as kenaf, hemp, and straw, develop eucalyptus plantations in a socially and ecologically appropriate manner, and implement source reduction strategies and alternative technologies in order to lower consumption of paper products.

Chile needs to be persuaded to ban, or put a sustainable limit on the amount of wood chips that can be sourced from native forests, strengthen its enforcement of forest management laws, place a high tax on wood chips and other unprocessed natural resource export products, and develop a sustainable forest management program for high value-added wood and non-wood forest products to give native forest owners new sources of income.

2) Native Forest Law and Institutions. Chile's Congress has debated a proposed Native Forest Law for more than five years now, but the present form still weakens existing forest law. This bill should be scrapped and a new national consultation ought to begin on developing a Native Forest Law -- this time with greater participation from all sectors of society.# The emphasis of the new law needs to be a ban or sustainable limit on wood chips from native forests, preservation of primary old-growth forests, a larger investment in sustainable management of secondary forests, and a ban on substitution of native forests with exotic-species tree plantations. A tax on exports of wood chips and other unprocessed wood exports could be a way to get more funding for forest protection, while it would also encourage the forest industry to diversify. Subsidies for tree planting should continue, but only for programs that restore native forest cover or rehabilitate degraded agricultural land with native trees. A new law should substantially increase CONAF's annual budget. Defensores del Bosque Chileno also believes the conservation functions and stewardship of the National Wildlands System (SNASPE) would be more effective if it were removed from CONAF and made an independent department under the Ministry of Public Lands.

3) National Conservation Strategy. Chile is a signatory to the UN Convention on Biodiversity and urgent action is needed by Chile to meet its commitment. CONAF for example has already identified more than 30 sites that urgently need protection, while 35 percent of known ecosystem types are not represented in SNASPE. 88 percent of SNASPE is in Patagonia regions XI and XII, and most of the rest is desert in the far north. The siempreverde or evergreen forest type, a coastal rainforest found from the Bio Bio river in central Chile to the Taitao Peninsula in northern Patagonia, contains the highest biodiversity of Chile's forests, but it is also the least protected forest in Chile and the most endangered by logging activities.

As part of a Native Forest Law, and perhaps a new Wildlands Protection Law, Chile should develop a comprehensive plan for preserving its remaining old-growth forests and unique ecosystems. As a first step, a National Conservation Strategy (NCS) is needed. An NCS would include mapping areas that should be protected and defining a land-use plan for a system of national and private parks, reserves, multiple-use buffer zones, and wildlife corridors. A Biodiversity Protection Fund should be created to provide financial assistance for public and private ecological preservation.

4) Sustainable Energy Policy. While it is not a primary cause of destruction, extraction of firewood does exert tremendous pressure on native forests. 60 percent of the industry and public service sectors in southern Chile still use fuelwood for energy, and one-third of Chilean households nationwide use fuelwood for heating and cooking in both urban and rural areas. Through programs that assist the use of alternative, energy-efficient technologies, the government could help businesses and people save both money and energy. And through a program for utilizing tree plantations to supply fuelwood, the use of fuelwood from native forests would drop dramatically and create jobs. Further, Chile's existing energy sources are polluting and environmentally destructive: a sustainable energy policy tapping into renewable energy sources such as solar energy, wind power, geo-thermal, bio-mass and tidal power should be feasible on Chile's diverse landscape.

5) Environmental Protection in Free Trade. Chile is making a great effort to enter into free trade agreements all over the world, within Latin America, with the European Union, Asia Pacific Economic Cooperation (APEC), North America Free Trade Agreement (NAFTA) and the Free Trade Area of the Americas (FTAA). A major goal of such agreements is to promote faster economic growth by making trade and investment easier and more profitable for business - and a by-product is easier access to natural resources for multinational companies and intensification of native forest destruction. In Chile, more than 87 percent of exports are from four natural resources: minerals, agriculture, forests, and fishing. Economists estimate that new foreign investment contributes to about one-third of Chile's annual growth rate of 7 percent and most of that investment is for the exploitation of natural resources. DBCh urges that free trade agreements must be crafted in a way that safeguards and even strengthens environmental protection. National and local environmental laws should be allowed to be stronger than international environmental laws, and to be considered a "necessary" barrier to free trade.

6) Southern Hemisphere Gondwana Forest Sanctuary and a Park at the End of the World. In 1994, when Trillium's plans for Tierra del Fuego were announced, Defensores del Bosque proposed a forest sanctuary similar to the whale sanctuary established by international treaty for south of Parallel 40 degrees. This idea has since gathered support and we are now helping form an international alliance of non-governmental organizations to help establish a Southern Hemisphere Gondwana Forest Reserve System, a system of parks and reserves for all temperate forests south of Parallel 40 degrees in Chile, Argentina, New Zealand and Australia. We propose that by international treaty, a Gondwana Forest Sanctuary is created to reunite these forests, preserving all the primary forests in parks and allowing only sustainable uses in secondary forests of public reserves and private lands.

The Trillium corporation has been planning their Rio Condor forestry project in Chilean and Argentinean Tierra del Fuego - home to the world's southernmost forests. Their forest management plan has been called unsustainable by three separate scientific studies, and Chile's Supreme Court ruled in March 1997 that the government's approval of the project was "illegal and arbitrary." As a first step toward a Gondwana Sanctuary, DBCh and Greenpeace Chile have launched a campaign for a Park at the End of the World. This park would, like the Gondwana Sanctuary, include all the old-growth forests of Trillium's Rio Condor property and the entire Magallanes region south of Parallel 55 degrees, while allowing careful, sustainable forestry in all secondary forests.

7) Support Defenders of the Chilean Forest. Defensores del Bosque Chileno is a non-governmental organization whose mission is to mobilize and educate the public for the protection of Chile's native forests. We began in 1993, its major goals are: establish a moratorium on the export of wood chips made from native forests, preserve remaining old-growth forests, and conserve and restore secondary forests. Current projects include:

Voces del Bosque. Our seasonal newspaper, funded by the Weeden Foundation, prints information and news which alerts supporters and prompts authorities in the country to take concrete actions for the protection of native forests. It is distributed to 4,000 people, including our members, government officials, parliamentarians, judges, scientists, journalists, and other public opinion shapers.

Bosqueduca. Our forest education program, funded the last two years by the Fund of the Americas, is directed at children and youth. It helps create appreciation of Chile's forests through a secondary school curriculum and materials that include videos, books, posters and manuals which emphasize the concepts of ecosystems, conservation, sustainability, and alternative uses of forests. The pilot program was implemented in seven communities of southern Chile last year and was judged successful by Chile's Ministry of Education. This year we expanded to schools of central Chile and began a forest ecotourism program for adults and youth.

Sustainability Program. A project set-up to promote sustainable management in secondary forests. DBCh will compile and analyze existing experiences in sustainable management of Chile's native forests and the different silvicultural practices which add value to forest products, and then distribute the results to forest technicians and professionals. Second, a training program in sustainable management and the development of new products will be organized for small native forest owners. Finally, we will create a support network for forest owners and institutions that seek alternatives in forest management.

Lobbying, Media Campaign and other initiatives. We have a legal team developing and promoting alternatives to the draft Native Forest Law in Chile's Congress. DBCh often participates in meetings about the native forests with Chile's Congress, lobbys key leaders in government and society, and hosts seminars to inform the public about legislative needs.

This year, DBCh commissioned an economic study of the wood chip industry, and a report on the potential impact of NAFTA on Chile's forests. We are publishing a photo exhibit-format book dramatizing Chile's native forest crisis. We are constantly informing the public through the national and international media with numerous articles in newspapers and magazines, and frequent interviews on radio and television. Educational commercials about the native forest crisis have been placed on Chilean television and radio and advertisements in periodicals.

DBCh is a member of the Alliance for Chile's Forests, a coalition of 30 Chilean organizations also concerned about the future of the native forests. DBCh has a grassroots network of Native Forest Action Groups in all 12 regions of Chile. And DBCh is involved in private initiatives for land conservation; last year we formed a group of 100 people that successfully bought and established the Alto Huemul Nature Sanctuary, a 35,000 hectare property in central Chile that includes 3,000 hectares of rare roble forest.

International Campaign. Over the last two years, DBCh steadily increased international involvement in the protection of Chile's forests. We developed an international network of supporters with whom we periodically communicate by fax and e-mail. We have been active participants in international conferences, organized joint campaign actions with non-governmental organizations of other countries, lobbied in the US Congress and United Nations, and produced and distributed educational materials written in English.

8) Write Letters: A letter could only help! Please write letters expressing your various concerns about Chile's native forest crisis, and also urge that: 1) the government enact a ban on wood chips made from native forests, and 2) they re-write the draft Native Forest Law by soliciting and listening to input from all sectors of society.

Jimmy Langman is a journalist based in Chile. He can be reached via email.


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