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Guyana can earn between $4.3B and $23.4B depending on the movement of commodity prices, with a most likely estimate of $5.8B.The country aggressively pursues economically rational land use opportunities, said President Bharrat Jagdeo when he presented a report on ‘Creating Incentives to Avoid Deforestation.’ He pointed out Guyana’s position on the issue to stakeholders at the Convention Centre.These estimates are equivalent to an annuity of between $430M to $2.3B at a 10 percent discount rate,Cheap Jerseys From China, suggesting that Guyana foregoes an amount roughly equal to its current GDP of $1,100 per capita in preventing extraction from its forests.The great majority of Guyana’s forests, he said,NFL Jerseys China, are suitable for timber extraction. There are large sub-surface mineral deposits within the forest, and rising agricultural commodity prices increase the potential returns to alternative forms of land use, all increasing the opportunity cost of leaving the forest alone.In just over 30 minutes, the President highlighted to stakeholders Guyana’s past, present and future endeavours and gains once the land use opportunities are utilised properly.His passion on the issue was highlighted when he noted that Guyana faces many challenges and opportunities that must be addressed in all forested countries to reduce deforestation.According to the Head of State, the country has a strong track record in sustainable forestry practices. He added that economic pressures to increase value from forest resources in Guyana are growing.These challenges will intensify as infrastructural links between Northern Brazil and Guyana advance, increasing development opportunities in the interior of Guyana.Guyana, he said, also faces potentially massive climate change adaptation costs, given the need to protect low-lying areas from the risk of flooding.In a full to capacity Convention Centre, the President noted that citizens expect continuously better social and economic services as the country develops.If long term economic incentives to protect the forest are weak, future governments may well find it necessary to meet these needs using revenues resources extraction, he said.These pressures bring into sharp focus the need to create meaningful incentives for forest conservation, and make Guyana an important case study in the economics of deforestation.Highlighting the components of Economic Value to the Nation (EVN), the Head of State highlighted that this comprises standing timber value, post-harvest land use value, avoided protection costs and loss of local ecosystems services.The Head of State noted that the fact that the world has an interest in ensuring that remuneration for forests continues to exceed the EVN, there are two implications.Given the sensitivity of the EVN on commodity prices, President Jagdeo said, any financing mechanism will need flexibility in order to adjust for future shifts in economic pressures to deforest.While market prices do not exist for most ecosystems, he noted, their values should not be forgotten.The President said that Guyana could embark on an alternative development path, providing economic opportunities and important services for its people,China Jerseys, while protecting the forests over the longer term.He added that resources could be used to build capacity for participating in a longer term Reducing Emissions from Deforestation and Degradation (REDD) mechanisms,Cheap NFL Jerseys, finance Guyana’s significant climate change adaptation needs, improve infrastructure required to attract investment into non-forested parts of the country, and invest in human resources, governance and management capacity required to accelerate long-term economic growth.The Head of State pointed out that a broad-based national consultation throughout the first half of 2009 will be facilitated.The aim of the consultation, he said,NFL Jerseys China, is to ensure the involvement of Guyanese stakeholders in determining the allocation of resources secured under any future Reducing Emissions from Deforestation and Degradation mechanism, or interim arrangement.Guyana’s report on ‘Creating Incentives to Avoid Deforestation’ will be presented to the Climate Change Conference in Poznan, Poland early next week.The President,Wholesale NFL Jerseys, along with Minister of Agriculture Robert Persaud, will be representing Guyana at that conference.
