What the Amazon rain forest tells us about globalization

Amazon FAO

Amazon rainforest to recover 30,000 hectares by 2023 (FAO, 2017)

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum.
Author: Peter Vanham, Media Lead, US and Industries, World Economic Forum
Can globalization and the fight against climate change co-exist? Or is the environment doomed to suffer as people fly, goods are shipped, and agriculture and industry tap international markets?
One place to look in order to answer these questions, is the Amazon rainforest: it’s the world’s largest storage space for carbon and a crucial node in our planet’s ecosystem.
If globalization there can happen without harming the environment, it probably can elsewhere too. But if it can’t, we may be headed for a collision, leading to climate disaster, de-globalization, or both.
At 670 million hectares, the Amazon rainforest is still easily the world’s largest rainforest – larger than Western Europe or India. You can wander in it for years, without ever seeing its edge (as some discoverers sadly found out). But in the last few decades, the rainforest shrank by about 20% due to deforestation.
 In the Brazilian Amazon, an area the size of France has been lost to deforestation.
In the Brazilian Amazon, an area the size of France had been lost to deforestation by 2016
Image: Philip Fearnside, Yale Environment 360, Yale School of Forestry & Environmental Studies. 2016
Many tried to stop the process of cutting the millennia-old forest. Some do it to protect indigenous groups from forcibly having to adjust to a more Western lifestyle. Others, like the World Wildlife Fund, stress the need to protect the forest’s unique biodiversity, with about a tenth of the world’s plants and species, including many yet undiscovered.
But combatting climate change has become an obvious third reason to root for the rainforest. By some estimates, more than a 100 billion tonnes of carbon are stored in it. To put that into perspective: that’s about 10 times the annual global carbon emissions from fossil fuels. If the trees that hold this carbon were cut, nothing else we do about climate change may matter.
Deforestation is a global issue
The reason why people cut the forest, however, has largely remained the same: to get more arable land for the farmers that live in its surroundings. This rings especially true for the inhabitants of Brazil, a country that is responsible for about 75% of its deforestation. (Other relevant “culprits” are Bolivia, Peru and Colombia. The five other countries in the Amazon basin play a lesser role.)
What does globalization have to do with this, though? Agriculture has, since ancient times, been the primary cause of deforestation. Europe’s fields were once primeval forests too. But, in our modern era, the demands for agricultural goods are no longer confined to domestic needs. Demand for Brazilian soy or beef is now, to a large degree, a factor of demand in the US or China. It is a factor of globalization.
So, can globalization and the Amazon rainforest co-exist? A number of analyses, news reports, and academic studies have looked into this question over the years. Their findings are often disheartening, sometimes hopeful, but often inconclusive. In the end, globalization is just one of many factors in the socio-economic and political factors that cause deforestation.
So what do the studies say? We will focus on Brazil, as it accounts for the largest part of the Amazon and its deforestation. First, it seems self-evident why a globalized agricultural market would demand the expansion of arable and pasturable land in Brazil. South America’s largest country is a big exporter of many agricultural commodities. According to the OECD, Brazil will account for almost half of world sugar exports by 2026, and 47% of global soybean volumes, with global demand for each growing rapidly from now until then.
With such vast and growing international demand, it is not hard to see why the Amazon rainforest would get cut. One study of the University of Sao Paulo, looking at historical data until 2007, confirmed that basic correlation. It found that at a municipal level in Brazil, increased openness to trade historically led to more deforestation, though some exceptions were found.
Other studies indicated a starker reality still. One government programme intended for poverty alleviation among farmers, actually reconfigured many Amazonian livelihoods away from diversified agriculture to a strong engagement with the global cattle economy, according to a study from the Universities of Wisconsin and Florida.
Though cattle farming theoretically provided farmers with better incomes, it also put pressure on the forest. More than 80% of cleared areas in the Brazilian Amazon are dedicated to pasture formation, the study noted. In this case, the effect of global economic forces was clearly detrimental. The transnational cattle industry kept farmers in a tight grip, forcing them to expand pasturable land in the Amazonian basin.
A race to the top
But globalization can be a force for good, too, some researchers believe. Just as there can be a race to the bottom from globalization, there can be one to the top, too. Consumers of agricultural products in global markets may be more likely to demand a product that is produced sustainably, putting pressure on producers to do their part.
American and Brazilian researchers saw these “Opportunities for Conservation” as a possible consequence of the globalization of the soy and beef industry as early as 2004. Since then, deforestation rates in the Amazon did decline, WWF wrote, although they continue at an alarming rate, and it is unclear whether global consumer pressures had anything to do with the decline.
Ultimately, it seems, globalization can be both bad and not quite so bad. In its rawest forms, an internationally integrated economy will simply procure more goods from where it can get them. If an invisible hand were to organize this particular market, the Amazon forest and climate as a whole would likely suffer. So far, that is, by and large, what has happened in the Amazonian basin.
Luckily though, several stakeholders in our global economic ecosystem do sometimes provide more positive incentives and pressures. They too can play a role in the outcome of the globalization vs. climate change equation. Sometimes, that positive consumer effect already exists: several large multinationals committed to sustainable procurement of cocoa or palm oil, for example. The Tropical Forest Alliance, an initiative hosted by the World Economic Forum, is working with the Colombian government and businesses to protect the Amazon from commodity-driven deforestation.
Ultimately, it is up to policymakers, law enforcers, and society as a whole to put its priorities, and to ensure the sustainability of the economy and the environment. If they get it right, there is a possibility that globalization and a healthy rainforest can co-exist. If they don’t, the adverse consequences will be carried by all of us.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© NYCDDC Flood defences are built on the east side of Manhattan Island by the East River in New York City.

Higher Ground: How New York is raising a park to hold back the sea

This article is published in association with United Nations. On 29 October 2012, Hurricane Sandy slammed into New York City, unleashing a devastating storm surge that flooded homes, subways and tunnels, knocked out power and sparked deadly fires. In just 48 hours, 44 people were killed, nearly two million New Yorkers lost power, and 6,500 […]
This article is brought to you in association with the European Commission.

World News in Brief: ‘No safe place in Ukraine’, IAEA calls for Iran nuclear inspections, Kenya hosts thousands of Ethiopians fleeing clashes

This article is published in association with United Nations. The UN refugee agency (UNHCR) on Tuesday urged continued international support for Ukraine’s population as Russian airstrikes intensify and humanitarian needs grow in advance of another bitterly cold winter. The “relentless” attacks are targeting critical energy infrastructure, leaving millions without heat and electricity, and limited access to […]
This article is published in association with United Nations.

Four in five domestic workers lack formal job protections, UN finds

This article is published in association with United Nations. An estimated 66.5 million domestic workers – representing more than four out of five domestic workers worldwide – were informally employed in 2025, a new report by the UN’s labour organisation has found. This makes them more than twice as likely as other employees to lack […]
© WFP/Mohamed Hinnawi An elderly woman in Al Saraya, Gaza, looks after young children after losing three sons, her husband, and home during the war.

Gaza: Families brace for fourth winter in tents as aid operations remain stymied

This article is published in association with United Nations. Families in Gaza are bracing for a fourth winter in tents and makeshift shelters as UN aid operations face mounting obstacles, with transport suspended on Tuesday due to Israel’s closure of the key Kerem Shalom crossing for election day. The UN project services agency in the […]

West Bank: Hebron crackdown displaces thousands, Türk warns of ethnic cleansing

This article is published in association with United Nations. Israel’s “aggressive operation” in the West Bank city of Hebron raises serious concerns of ethnic cleansing, UN human rights chief Volker Türk warned on Monday, as the number of Palestinians forced from their homes passed 3,000 on the eve of Israeli elections. The UN aid coordination […]
© UNICEF/Rawan Eleyan A mother and her children go through their belongings after a room in their home was burned in a settler attack in southern Hebron, West Bank. (July 2025)

West Bank: Guterres alarmed as Israel imposes sweeping closures after deadly Hebron attack

This article is published in association with United Nations. The UN said on Friday it was “extremely alarmed” by intensifying violence in the occupied West Bank, as Israel moved to seal off the territory following a deadly attack on its soldiers in Hebron. Two Israeli soldiers were killed and at least five injured when gunmen […]
This article is published in association with United Nations.

‘Connect the dots’ between street protests and global turmoil, urges Guterres

This article is published in association with United Nations. The international community must combat inequality and stop wars from expanding to ensure a safer world for all, the UN Secretary-General said on Thursday. Speaking to reporters in New York ahead of a visit to Egypt, António Guterres addressed growing public discontent in Europe and beyond, […]
© SOS Méditerranée/Anthony Jean Up to $500 million was paid in migrant smuggling fees on sea routes to Europe in 2025, according to new UN estimates.

Migrants paid up to $500 million in smuggling fees on European sea routes

This article is published in association with United Nations. The price tag for smuggling on European sea routes reached up to half a billion dollars last year, the UN Office on Drugs and Crime (UNODC) and the UN migration office, IOM, reported on Wednesday. Key points Almost half of migrants trying to get smuggled into […]
The author of this article explored other courses in different fields, but it was in medicine that she found her place. From the beginning of her studies, Valéria discovered in medical practice more than just a career: she found her vocation when she realized that caring for others also gave meaning to her own life. Driven by a genuine desire to help, the student stood out as a Teaching Assistant in Public Health, strengthening her humanized perspective. Today, she is part of the coordinating board of IFMSA UNEX MED, working in the Human Rights and Peace (SCORP) area, where she transforms empathy into action and social commitment into real impact.

Global warming will breach 1.5°C – but deep, fast cuts can still bring it back

This article is published in association with United Nations. With global temperature rise set to exceed 1.5°C above pre-industrial levels, countries “must pull out all the stops” and urgently cut emissions to minimize the overshoot and return to the internationally agreed threshold by the end of this century. The recommendation comes in the Emissions Gap […]
© Agricultural Development Association – PARC A farmer in the West Bank harvest olives in October 2025. (file)

‘Season of fear’: Escalating Israeli attacks on West Bank olive farmers, deadly strikes on Gaza

This article is published in association with United Nations. Israeli attacks on war-torn Gaza over the weekend killed at least six Palestinians, including children, despite a year-old ceasefire agreement. Meanwhile, in the occupied West Bank, settler violence continued through the ongoing olive harvest, with UN independent experts on Monday urging Israel to protect Palestinian farmers. […]
This article is published in association with United Nations.

COP17: The world has a plan to save nature. Is it working?

This article is published in association with United Nations. The UN Secretary-General has called for an end to the “war on nature”. On Monday, governments gathering in Yerevan, Armenia, will have to confront a more practical question: are they doing enough to win the peace and put the world’s biodiversity goals back on track? COP17, […]
© WHO A large-scale combined missile and drone strike hit Kyiv's Solomianskyi district on August 20, 2026.

Ukraine: Critical health supplies destroyed in ongoing Russian attacks

This article is published in association with United Nations. Ongoing and deadly Russian attacks across Ukraine are causing serious healthcare disruption, with more than $1.5 million-worth of medicines and supplies destroyed in four separate strikes on warehouses used by the UN there since July. According to the World Health Organization (WHO), 21 warehouses have been […]
© UNICEF/Niccolò Corti A child sits alone, praying, at a reception centre for migrants in Lampedusa, Italy.

World News in Brief: West African migrant crossings, Argentina takes UK to maritime tribunal, farming in Gaza, mental health update

This article is published in association with United Nations. Fewer people from West Africa are reaching Europe by sea, but the journey has not become safer, the UN migration agency (IOM) said on Tuesday. Arrivals from Mali, Senegal, Guinea and The Gambia fell by 59 per cent in the first half of 2026 compared with […]
© UN Ukraine The aftermath of a drone attack in a residential area in Kyiv on 12 October.

Ukraine: Residents killed and dozens injured in attacks on Kharkiv and Kyiv

This article is published in association with United Nations. Russian attacks in recent days on on Ukraine’s two largest cities have again killed and injured civilians, damaged homes and civilian infrastructure, the UN aid coordination office (OCHA) said on Tuesday. Aid workers and rescuers were on the ground in Kyiv and Kharkiv following aerial strikes that […]
© IOM The war in Sudan has created extreme levels of displacement, both internally and across Sudan’s borders.

‘Efficiency has limits’: UNHCR chief warns refugee protection is buckling under cuts

This article is published in association with United Nations. The money is running out faster than needs are growing: with 117 million men, women and children now forced from their homes, the UN refugee agency (UNHCR) has received just $3 billion of the $8.5 billion it needs this year – and its chief, Barham Salih, warns […]
© UNOCHA/Ramatoulaye Moussa Maz A woman walks through a camp for displaced people in Ituri Province in eastern DR Congo, where decades of violence have impacted millions, creating a humanitarian emergency.

Rise in poverty is ‘a wake-up call for the world’, UN development chief says

This article is published in association with United Nations. The number of people living in “multidimensional” poverty has risen for the first time in 15 years, reaching 1.2 billion, as families struggle to meet their basic needs.  The finding comes in the 2026 update of the global Multidimensional Poverty Index (MPI) published by the United Nations […]
© UNDP Nidaa with the chickens and ducks she raises in Gaza.

Sustaining livelihoods amid crisis in Gaza

This article is published in association with United Nations. Nidaa, Hanaa and Hanin have different stories, but share a common thread: the determination to build something of their own and keep it going despite extraordinary challenges facing them in war-ravaged Gaza. Following the devastation of the past three years, productive capacity in Gaza has been severely […]
© UNICEF/Oleksii Filippov A firefighter works on the balcony of a wrecked building in Kyiv, Ukraine.

World News in Brief: Russian attacks continue in Ukraine, Gazans shelter in flood-prone areas, keeping sight of eye health

This article is published in association with United Nations. UN human rights chief Volker Türk said on Thursday he was appalled by a wave of attacks that have killed civilians across Ukraine over the past four days.  They include a strike on two public buses in Kramatorsk on Thursday, that left at least 30 civilians dead, […]
This article is published in association with United Nations.

Ukraine: UN condemns latest attacks and calls for civilian protection

This article is published in association with United Nations. The UN Humanitarian Coordinator for Ukraine on Wednesday called for an end to attacks against civilians following further overnight strikes by Russian forces that reportedly killed at least 19 in the Chernihiv Region. Among the dead in Pryluky were five children, three of them babies, according to the […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com