Multilateral funding for development and the environment: A case study of the Brazilian state of Mato Grosso

Brazil has an emerging legislative and public policy framework on the environment. Concerns over environmental protection have become an official part of the government's development planning. The thesis addresses the question of whether this framework is sufficient to avoid further degradation of the country's fragile ecosystems. The question is couched in the context of proposed development projects that are partially funded by multilateral development banks. These development projects will be undertaken in and around Brazil's western state of Mato Grosso, located at the country's agricultural frontier. Increased exploitation of resources and population growth in the state will occur in the wake of the completion of these projects. The thesis examines whether project safeguards and environmental impact statements can preclude damage to the environment. The author concludes that the measures contained in the environmental components of the projects are adequate to limit environmental destruction and can serve as a model for other ecologically-sensitive development projects. Nevertheless, these measures must be adequately enforced during and following the implementation of the project.