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WEEKLY NEWSLETTER
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Chile
Index
Beginning in 1975, the planting and exploitation of
forests was
subsidized heavily by the state, which remitted 70 percent
of the
cost of planting new areas with trees, exempted such lands
from
taxes, and permitted a 50 percent deduction for tax
purposes from
the profits generated from cutting the forests. The
forestry policy
of the military government was a major exception to its
free-market
approach and stimulated a significant expansion of
forested land.
Chile's forested land is highly concentrated in the
hands of a
few major companies, principally those connected with the
flourishing paper industry and with the national oil
company. About
90 percent of all the wood harvested comes from
plantations that
were established, beginning in the early 1960s, on land of
poor
quality that originally had been cleared of forests for
the growing
of wheat and other crops. Reforestation, mostly with pine
but also
increasingly with eucalyptus, has continued at a faster
pace than
the cutting of the forests, thereby ensuring ample
supplies for the
foreseeable future (see
table 28, Appendix). It was
thought that
the volume of production could double 1990 levels by the
year 2000.
The public sector is playing a drastically smaller role
in
forestry. This diminution of the public sector's role is
the result
of the general tendency in the country toward reducing,
and even
eliminating, directly productive government activities. In
1992 the
forestry industry was objecting strongly to the new powers
that the
Aylwin government was proposing to confer on the National
Forestry
Corporation (CorporaciĆ³n Nacional Forestal--Conaf) to
protect
native forests.
Whereas exports of basic--that is,
nonmanufactured--forestry
products had declined by the early 1990s, exports of
manufactured
wood products had almost doubled. This doubling of
manufactured
wood exports meant that instead of exporting raw logs,
Chile was
increasingly adding value to its forest products and was
producing
such items as milled boards, pulp, paper, and cardboard
(see
table 24, Appendix). The main market was Japan, which absorbed
25 percent
of the value of exports, followed by the United States and
Germany,
with 8 percent each. Chile's print industry was enjoying a
boom in
the early 1990s, supplying books and magazines to
neighboring
countries, especially to Argentina (which accounted for 75
percent
of overseas sales) and Brazil (12 percent). Exports of
books and
magazines grew by 90 percent in 1992 to about US$70
million.
Under study in 1992 was a bill to regulate Chile's
shrinking
but still large native old-growth forests, which totaled
7.62
million hectares out of 8.86 million hectares of woodland
(the
remaining 1.24 million hectares are plantations). Chile's
forestry
industry has worked mostly on plantations of radiata pine,
the raw
material used for making pulp. But the country's native
forests are
in need of management to avoid extinction or
indiscriminate
harvesting of slow-growing species and the resultant
erosions and
loss of land for future plantations of new species. During
1991,
about 107,000 hectares were planted.
Data as of March 1994
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