Policy Instruments and Financing Mechanisms for the Sustainable Use of Forests in Latin America

The objectives of this paper are two-fold: to analyze the role of international and domestic policies on the sustainable use of forests in Latin America; and to examine potential financing mechanisms to promote sustainable forest development and a more efficient wood processing industry. The paper examines the role of a more intensive exploitation of natural forests as a mechanism to promote the national interest as opposed to the global interest in Latin America. It also also analyzes the potential for cooperation to allocate land in a globally optimal way, and mechanisms to finance such cooperation.