government passed the Tropical Forest Conservation Act to codify debt-for-nature swaps
, including formally welcoming non-profit groups like Conservation International, the Nature Conservancy, WWF and others to help arrange the deals and oversee implementation of local initiatives.
do have their critics, however.
Countries Participating in Three-Party Debt-for-Nature Swaps
, 1987-Present (excluding TFCA transactions) 3 Table 2.
(32) The debt-for-nature swap
was one reaction to the developing country debt crisis, which officially began in 1982 when Mexico announced that it would not be able to make payments on its international debt.
Since Kathryn Fuller became president of the World Wildlife Fund (WWF) seven years ago, the organization has doubled its revenue and membership, helped secure an ivory ban, promoted the debt-for-nature swaps
in Asia and Latin America, and developed an environmental educational program called "Windows on the Wild" which is currently being introduced into middle school curricula around the country.
Various approaches to debt relief, such as debt rescheduling, debt-for-equity, or debt-for-nature swaps
have contributed to a reduction in the outflow of financial resources from developing countries and can continue to make contributions to external financing for those countries which are actually servicing their debts.
But for some countries, they may already be offering significant relief: Madagascar has cut its $100 million commercial bank debt in half through debt-for-nature swaps
One popular solution is a twist on the "debt-for-nature swaps
" now employed in the Third World.
Nongovernmental conservation organizations and corporations have become involved in debt-for-nature swaps
, which represent a possible simultaneous solution to these two problems.
CEPAL analyzed nine cases of debt-for-nature swaps
in Latin America (CEPAL, 1991: 116).(1) The foreign institutions bought a nominal total of $90 million on the parallel market for a sum of $14 million.
Yet Gore, along with many mainstream environmental groups, pushes market-based solutions, such as emissions trading and debt-for-nature swaps
, that increase environmental inequities.