Mining

Like forestry, mineral resources are seen as a quick source of export earnings and a locus for foreign investment. Mining is one of the most environmentally destructive activities, contaminating ground water through acid mine drainage, threatening fish, animal and bird life, and destroying wildlife habitats. SAP policies have promoted the exploitation of mineral resources, and done so without regard to disruption to local communities and indigenous peoples and requirements for land rehabilitation.(6)

Under SAP guidance since the mid 1980s, Guyana implemented policies to increase large-scale, foreign-owned mining ventures. This has led to river pollution, the decline of fish populations, and deforestation (see inset). There are now 32 foreign mining companies active in Guyana and large scale mining permits now cover an estimated 10% of the country.(7) The IMF is encouraging Guyana’s government to transform mining and petroleum into one of the country’s critical economic sectors by the year 2000.(8)

Under IMF guidance, Cote d’Ivoire has targeted mineral resources for export intensification and is stepping up exploration efforts. The results are new surface mining projects, three new gold mining companies since 1994, and 80 permits issued for mineral exploration to 27 international mining companies in 1995.(9)

Agriculture

Agriculture is another sector SAPs target for export growth. In order to increase yields, farmers must either increase land intensity through fertilizer and pesticide use, or clear new land for more crops. Large-scale agriculture often involves monocropping, resulting in erosion, loss of soil fertility and increased industrial inputs.

SAPs led Cote d’Ivoire to devalue its currency and eliminate export taxes creating incentives for increased agricultural output. From 1992 to 1996 cocoa production dramatically increased by 44%. The environmental implications included soil degradation, deforestation and loss of biodiversity.(11)

SAP programs in Tanzania resulted in rising input costs for the agricultural sector. Consequently, the need for production increases has led to land clearing at the rate of 400,000 ha per year. Between 1980 and 1993, one quarter of the country’s forest area was lost, forty percent for cultivation.(12)