Understanding the impacts of the 2007–08 Global Financial Crisis on sustainable forest management in the Brazilian Amazon: A case study

In 2007 and 2008, the world experienced a significant Global Financial Crisis (GFC). Several factors were perceived as drivers of the crisis, however, its dynamics and consequences for natural resources and the environment remain largely unknown, particularly in Brazil. Combining grounded theory and case study methodologies, this research explores and contrasts the perspectives of highly knowledgeable stakeholders on how the GFC impacted sustainable forest management in the Brazilian Amazon, using the State of Parل as a case study. Our findings indicate that the GFC cannot be considered as a unique phenomenon impacting SFM and that it is intimately linked to other political, social and environmental events unfolding within Brazil and at the global level. Decreased deforestation was perceived to have occurred due to restrained production, increased risk aversion, increased public awareness and enhanced government efforts towards law enforcement. The forest-based exporting segment was seen to suffer the most severe impacts of the crisis. Environmentally friendly initiatives were perceived to offer forest product differentiation in the market; while investments in non-market-oriented initiatives were restrained. Our results suggest that in times of economic crisis, forest policy-makers need to focus on both formal and informal forest economies in order to promote sustainable forest management objectives.