Debt-for-nature Swap - History

History

The concept of debt-for-nature swaps was first conceived by Thomas Lovejoy of the World Wildlife Fund in 1984 as an opportunity to deal with the problems of developing-nation indebtedness and its consequent deleterious effect on the environment. In the wake of the Latin American debt crisis that resulted in steep reductions to the environmental conservation ability of highly indebted nations, Lovejoy suggested that ameliorating debt and promoting conservation could be done at the same time. Since the first swap occurred between Conservation International and Bolivia in 1987, many national governments and conservation organizations have engaged in debt-for-nature swaps. Most swaps occur in tropical countries, which contain many diverse species of flora and fauna. Also, countries that have engaged in debt-for-nature swaps typically have several threatened or endangered species, experience rapid deforestation, and have relatively stable, often democratic, political systems. Since 1987, debt-for-nature agreements have generated over US$1 billion for conservation in developing countries.