The forest cluster in Madre de Dios: obstacles and opportunities for its growth and competitiveness

Abstract

The jungle is the habitat for millions of species. Not only does it play an important role in our economy in providing timber and non-timber products, but it also provides such environmental services as carbon sequestration and the conservation of biodiversity. For these reasons, it is important to guarantee the sustainable use of the Peruvian Amazon forest. Sustainability involves meeting present human needs without endangering the welfare of future generations; however, it does not imply failing to take advantage of the growth opportunities that the forest offers.

Madre de Dios is a Peruvian department of enormous natural wealth, but lacking in infrastructure and with a poorly developed timber sector (which is the region’s most important source of economic activity). How do we explain the low impactthat the growth of the timber sector has had on the living conditions for people living in Madre de Dios? This study shows that insufficient infrastructure has been one of the main impediments to developing this cluster’s competitiveness. However, projects such as paving the Interoceanic Highway and the San Gabán hydroelectric connection will help drive this competitiveness. This is a necessary condition to generate profitability from sustainable exploitation of the jungle. Similarly, gains in competitiveness are important in generating positive externalities for the region.