|All that Glitters is not Gold - Balancing Conservation and Development in Venezuela's Frontier Forests (WRI, 1998, 60 pages)|
|IV. Who Benefits from Economic Activities in Forests?|
· Logging is not economically viable in the Guayana region, and royalties on timber extraction represent only 3 percent of the value of timber production.
· Small-scale miners produce an estimated $50 million to $100 million worth of gold annually, none of which is taxed by the government.
· Government plans to favor multinational mining companies are not likely to employ all of the region's small-scale miners, and logging is not likely to contribute to local employment in a meaningful way.
· Only 10-15 percent of the park service's budget comes
from revenue-generating activities.
The Venezuelan government imposes a variety of royalties and taxes on forestry and mining activities. Yet, because of government subsidies and a rapidly devaluating currency, the value of these activities is not fully captured at the local or national level, especially in the case of forestry (see section highlights box).