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Countries Appendix NICARAGUA (45.8%) Nicaragua has one of the largest stretches of rainforest in Central America even though over 70% has been cleared for agriculture, cattle grazing, and commercial logging, and by forest fires. The restructuring of the economy to repay foreign debts (6 times annual GDP) is said to be destroying the countries' natural resources. Increased logging activity has conservationists worried about the future of Nicaragua's forests. In 1991, the government signed a contract with Equipe Enterprise Company of Taiwan to log 667,000 acres of rainforest in Northeastern Nicaragua. In addition to destroying the traditional lands of indigenous peoples, logging roads would open the area to hordes of colonists whose collection of fuelwood and clearing for agriculture rapidly deplete the forest. Despite a 1997 Supreme Court decision that the concessions are illegal, the government gave Solearsa, a South Korean subsidy, permission to clear a 153,000 acre (62,000 ha) tract of rainforest. Another threat to Nicaragua's forests is a Canadian-sponsored mining project on the border of Costa Rica and Nicaragua's national reserve. Placer Dome, the mining company, plans to used open-pit mining (a highly destructive procedure) over an area of 56,680 acres (22,900 ha). Nicaragua environmentalists worry that cyanide spills and soil erosion would decimate the San Juan River ecosystem. In April 1998, the president signed a decree to prevent the logging of cedar, mahogany, and bombox trees for a five year period. The decree, issued in response to the alarming increase in forest degradation, cancels logging permits of these timbers. Hurricane Mitch damaged 70% of Nicaragua's highways including the Pan-American highway and inflicted heavy damage on crops. Observers say much of the damage could have been avoided had forest not been cleared. |
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