# **REPORT ON SECTIONS 118 AND 119 OF THE FOREIGN ASSISTANCE ACT** {#report-on-sections-118-and-119-of-the-foreign-assistance-act .Style1}

**1. Introduction**

## 1.1 Peru is among the twelve most biologically diverse countries in the world. It also is the country with the fourth largest area of humid tropical forest.[^1] Yet habitat destruction, contamination, over-exploitation and exotic species threaten its biodiversity and tropical forests. The impediments to reducing these threats are embedded in the structure of Peru\'s economy, society and politics. Success in eliminating, reducing or mitigating these impediments will thus require multiple, well planned, effective actions.[^2] The Government of Peru and many Peruvian citizens, however, are committed to acting to conserve and sustainably manage their country's biodiversity and tropical forests.[^3]

## 

## 1.2 In 2001, USAID/Peru prepared its "Country Strategic Plan for 2002-2006\".[^4] Sections 118 and 119 of the Foreign Assistance Act require each USAID Mission to report to the U.S. Congress on the potential impact of its Strategic Plan on its host country's biodiversity and tropical forests. The present report is intended to provide the basis for USAID/Peru to comply with this requirement. 

## 

## 1.3 The report is divided into four sections. After this introductory section, Section 2 summarizes the characteristics of Peru\'s biodiversity and tropical forests. Section 3 describes the four principal threats to their conservation and sustainable management. Section 4 describes and analyzes six impediments to the elimination or reduction of those threats. 

## 

## 1.4 Two documents that have been prepared (in Spanish) by the Cuanto Institute, a Peruvian environmental NGO, [El Medio Ambiente en el Perú, Ano 2000]{.underline} and the [State of the Environment Report for 2001,]{.underline} provide the basis for the report.[^5] It also draws on information derived from other reports and from consultations with Cuanto Institute staff, Peruvian experts and USAID/Peru staff.

**2. Description of Peru's Biodiversity and Tropical Forests**

2.1 Peru is a country with [megadiversity]{.underline}, a term used to
distinguish a high concentration of biodiversity and species endemism.
The term [biodiversity]{.underline} refers to biological variability at
the ecosystem, species and gene levels. The term [endemism]{.underline}
refers to species that occur only within a defined area. Peru has a
great variety of ecosystems, although they can be classified according
to a number of different sets of criteria.[^6] Its identified species
include 17,144 plants, 2,000 fish, 1,736 birds, 332 amphibians, 460
mammals, 365 reptiles, and over 16,000 invertebrates. In most of these
groups, many more species remain to be identified. Species endemic to
Peru number 6,288. Peru\'s domesticated and wild plants and animals
contain a great store of genetic variability.[^7]

2.2 Broadly used, the term [tropical forest]{.underline} refers to all
the forest types that occur in the tropics. More narrowly, it refers to
the forest types of the tropical humid lowlands. Peru's large areas of
humid tropical forests provide the habitat for much of Peru's
biodiversity. However, Peru also has many other forest and non-forest
ecosystems, each with its own range of species and genetic biodiversity.

2.3 Much remains to be learned about Peru's biodiversity, endemism and
tropical forests. The structure and function of few of Peru's ecosystems
have been thoroughly studied. Many geographic areas lack complete floral
and fauna inventories and thorough studies of endemism.[^8] Little is
known about the species numbers and endemism of the more inconspicuous
groups of organisms, such as invertebrates, bacteria, and arthropods or
the genetic diversity of natural populations of plants and animals.[^9]
The following sections, however, summarize some of what is known about
Peru's biodiversity at the ecosystem, species and gene levels.

**Peru's Ecosystem Biodiversity**

2.4 Peru is located on the western central coast of South America,
between the latitudes 00° 01\' 48\" S and 18° 21\' 03\" S. It is
bordered by Ecuador and Colombia to the north, Brazil to the east,
Bolivia and Chile to the south, and the Pacific Ocean to the west. Its
terrestrial area of over 128 million hectares makes it the third largest
country in South America. Including its marine waters, Peru has four
[Geographic Regions.]{.underline}[^10] It has ten
[Ecoregions]{.underline}[^11], each with one or more
[Ecosystems]{.underline}.[^12] Some of the Ecoregions occur in more than
one Geographic Region.[^13]

**[Marine Geographic Region]{.underline}**

2.5 The Marine Geographic Region occupies about 37 million hectares,
corresponding to the area of marine sovereignty claimed by Peru in a
band 200 miles wide off its coast.[^14]

2.6 The climatic event of El Niño plays an important role in the climate
of the Marine Geographic Region. El Niño events occur at periods from 3
to 7 years when the ocean off the northern and central Peruvian coast
becomes unusually warm. After an El Niño event, the ocean waters become
colder than usual. The El Niño event causes large variations in the
populations and distributions of the species of marine organisms found
in the Marine Geographic Region.[^15]

2.7 The Marine Geographic Region includes two ecoregions: the *Peruvian
Current Ecoregion* and the *Tropical Ocean Ecoregion*. The *Equatorial
Front*, an area of great diversity of marine organisms, occurs at the
boundary between the two ecoregions, at about 6° S latitude.[^16]

**The Peruvian Current Ecoregion** [^17]

2.8 The Peruvian Current Ecoregion flows north along most of the
Peruvian coast and contains three currents:

-   The [Cold Coastal Current]{.underline} flows from the south to the
    north, usually within 60 miles of the coast. It has low
    temperatures, between 15 and 18 C, and salinity between 34.9 and
    35.1 percent.

-   The [Temperate Current of the Sub Antarctica Region]{.underline}
    flows out of the northern border of the oceans surrounding
    Antarctica at a depth of 50 to 150 m. Its temperatures are less than
    15 C and its salinity is less than 34.8 percent.

-   The [Intermediate Antarctica Current]{.underline} lies below 600 to
    700 m and has very low salinity.

2.9 The upwelling of these currents' cold, nutrient-rich waters off the
southern and central Peruvian coast stimulates the florescence of
extremely high concentrations of plankton, which support large
populations of anchovies. The anchovies are the food base for one of the
world's highest concentrations of fish, marine mammal and seabird
populations.[^18]

**Tropical Ocean Ecoregion**

2.10 The Tropical Ocean Ecoregion occupies a small area off Peru\'s
northwest coast.[^19] Within this ecoregion, five currents flow down the
Peruvian coast from the north and northwest:

-   The Superficial Tropical Current has temperatures above 25 ° C and
    salinity less than 33.8 percent.

-   The Superficial Subtropical Current has variable temperatures,
    ranging from 15 to 26 ° C and salinity over 35.1 percent.

-   The Equatorial Superficial Current has temperatures between 22 and
    25 C and salinity of 24.0 to 34.8 percent.

-   The Submerged Equatorial Current flows at 50 to 300 m below the
    surface. Its temperature is from 13 to 15 ° C and its salinity 35.1
    to 34.9 percent.

-   The Deep Equatorial Current flows at 150 to 700 m below the surface.
    Its salinity is 34.0 to 39.9 percent.

2.11 In spite of its relatively small area, species diversity is much
higher in the Tropical Current Ecoregion than in the Peruvian Current
Ecoregion although the total population of marine organisms is much
lower.[^20]

Table 1. Summary Description of Peru's Geographic Regions, Ecoregions,
Ecosystems [^21]

  -------------- --------------- ---------------- -----------------------------------------
  **Geographic   **Ecoregion**   **Ecosystems**   **Summary Description**
  Region**                                        

  Marine         Peruvian        Various currents Cold, nutrient rich, high populations,
                 Current                          less diversity

                 Tropical        Various currents Warm, nutrient poor, lower populations,
                 Current                          high diversity

  Coastal Plain  Pacific Desert/ Coastal Hills    On hills up to 700 masl. Very low
                 Hills                            rainfall/Moisture from mists supports
                                                  desert vegetation.

                                 Tillandsia Form. On extremely dry flat desert but moisture
                                                  from mists supports growth of bromeliads.

                 Dry Equatorial  "Algarrobos"     [Prosopis pallida]{.underline} forest
                 Forest[^22]                      

                                 "Hualtaco"       Forests dominated by "hualtaco",
                                 Forest           [Lonopterygium huasango]{.underline}, a
                                                  commercial timber tree.

                                 Mangrove Forests In the estuaries of the Tumbes and
                                                  Zarumilla Rivers on the northern coast

                                 Scrub Forests    In the northern foothills/ 200-1000
                                                  masl/300-650mm/yr rainfall/Canopy 4-5 m.

                                 Low Deciduous    In the central/southern
                                 Forests.         foothills/400-1,000mm/yr rainfall/many
                                                  epiphytes

                 Pacific         Pacific Tropical Northern Peru. 1,200 mm/yr.
                 Tropical Forest                  rainfall/20-25m canopy height

  Highlands      Puna            Andean Pastures  Above 3,800 masl/150-600 mm/yr rainfall.
                                                  19,000,000 has. Severe degradation.

                                 Tolares.         Southern regions/Temperatures
                                                  3-6°C/200-500 mm/yr rainfall. Thorny
                                                  bushes predominate.

                 Andean Steppe   Brushlands       Western Andes/1,500-3,800
                                                  masl/125-1500mm/yr rainfall/8 million
                                                  has./many cacti.

                                 Quinuales        3,000-4,500 masl/main plant is "quinual"
                                                  (P[olylepsis, sp)/]{.underline}43,000 has
                                                  in southern departments.

                 Paramo.         Paramo           Small area at 3,500 and 4,500 masl in
                                                  northern Peru. Up to 600 mm/yr of
                                                  precipitation.

  Amazon Basin   "Selva Alta"    Upper Montane    

                                 Podocarpus       Moister locations in Selva Alta
                                 Forest           1,800-3,500 masl/153,000 has mostly in
                                                  Cajamarca.

                                 Lower Montane    600-1,400 masl. Temperatures 17-25°C.
                                                  1,600-4,000 mm/yr.

                 "Selva Baja".   Riverain Forest  Beside rivers/20-25 m. canopy
                                                  height/3,250,000 has/higher sites
                                                  cultivated by local people.

                                 Swamp Forests/   Near confluence of Tigre & Pastaza rivers
                                 Aguajales"       and many smaller areas. 6,300,000 has.

                                 Terrace Forest   Alluvial terraces/8,000,000 has./Fertile
                                                  soils for agriculture/canopy height 30-45
                                                  m.

                                 Upland Forest    On old terraces/26,000,000 has./35-40 m
                                                  canopy height. Many tree species.

                                 Bamboo Forest    1,500,000 ha of Merostachis and Guadua
                                                  bamboo genera.

                 Chaco savanna   Chaco savanna    In Pampas del Rio Health in Madere de
                                                  Dios Department. Mauritia flexuosa palm.
  -------------- --------------- ---------------- -----------------------------------------

**[Coastal Plain Geographic Region]{.underline}**

2.12 The Coastal Plain Region is from 40 to 80 km wide and occupies over
13 million hectares, about 11 % of Peru's terrestrial area.[^23]

2.13 Average annual temperatures on the coastal plain are between 16° C
and 24° C. Temperatures are cooler during the winter months, June to
September, and warmer during the summer months, December through March.
Average annual precipitation in the lower elevations of the southern and
central coastal plain is less than 100 mm/yr. However, during the winter
months there is an almost continuous mist, known as "garúa", which keeps
the atmospheric humidity high and the level of solar radiation low.
Rainfall increases in the northern coastal plain and at higher
elevations. During an El Niño event, torrential rains fall on the
central and northern Peruvian coast during a period of 12 to 18 months.
After an El Niño event, rainfall generally decreases and drought affects
northern Peru.

2.14 The Coastal Plain Geographic Region has three ecoregions: the
*Pacific Desert and Hills, Dry Equatorial Forest* and the *Pacific
Tropical Forest.*

**Pacific Desert and Hills Ecoregion**

2.15 The Pacific Desert and Hills Ecoregion occurs on the southern and
central Peruvian coast, where the soils are frequently saline and
calcareous. Some of the 53 valleys that open on to the coastal plain,
however, have very fertile soils. Irrigated agriculture in these valleys
can be extremely productive.

2.16 The main ecosystems are the *Coastal Hills* and the *Tillandsia
Formations*.

-   *Coastal Hills*: On the southern coastal plain constant ocean winds
    have formed hills up to 700 m high. Enough moisture from the
    \"garúa\" condenses on these hills\' sea-facing slopes to support
    desert vegetation, dominated by [Carica candicans]{.underline},
    [Capparis prisca]{.underline} and [Prosopis pallida,]{.underline}
    and [Acacia macrocanthus]{.underline}.

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-   *Tillandsia Formations*: The Tillandsia Formations occur on the flat
    desert along the southern and central Peruvian coast. They consist
    of bromeliads of the genus Tillandsia.

**Dry Equatorial Forest Ecoregion**

2.17 The Dry Equatorial Forest ecoregion occurs on the northern coast,
where relief is flat at lower elevations and very steep at higher
elevations. Soils are mainly sands, loams and clay loams.

2.18 The principal ecosystems are *Algarrobales, Hualtaco Forests,
Mangrove Forests, Scrub Forests*, and *Deciduous Forests.*

-   *Algarrobales:* The "algarrobales" ecosystem occurs on about 3
    million hectares of the northern Peruvian coast. Its flora includes
    species of the genera [Capparis]{.underline},
    [Parkinsonia]{.underline} and [Acacia spp]{.underline}., but the
    tree [Prosopis pallida]{.underline} dominants. Its nutritious seeds
    provide food for humans and livestock and its wood makes excellent
    charcoal.

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-   *Hualtaco Forests:* The Hualtcaco Forest ecosystem occurs on the
    border between Tumbes and Piura Departments. The commercially
    valuable tree species, "hualtaco", [Lonopterygium
    huasango]{.underline} is the dominant species.

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-   *Mangrove Forests:* Mangrove forests, composed of [Rhizophora
    mangle]{.underline}, [R. harrisoniac]{.underline}, [Avicennia
    germinans]{.underline}, [A. nitida]{.underline}, [Laguncularia
    racemosa]{.underline}, and [Conocarpus erectus,]{.underline} grow at
    the mouths of the Tumbes and Zarumilla Rivers in Tumbes Department.
    The mangrove forest stabilizes the shoreline and provides habitat
    for coastal aquatic fauna.

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-   *Scrub Forests*: The Scrub Forest ecosystem occurs on about 480,000
    hectares in the Andean foothills, between 200 and 1,00 masl[^24], in
    northern Peru. The height of the forest's canopy is 4 to 5m.
    Dominant woody genera are [Caesalpinea]{.underline},
    [Lozopterygium]{.underline}, [Tabebuia]{.underline},
    [Capparis]{.underline}, [Eryoteca]{.underline},
    [Chorisia]{.underline}, [Cordia]{.underline} and
    [Acacia.]{.underline}

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-   *Deciduous Forests:* The Deciduous Forest ecosystem occurs on the
    lower Andean slopes. Typical woody species are [Eryoteca
    discolor]{.underline}, [Ceiba pentandra]{.underline}, [Bursera
    sp]{.underline}. Epiphytes of the genera [Tillandsia]{.underline}
    completely cover the branches of many of the trees.

**Pacific Tropical Forest Ecoregion**

2.19 The Pacific Tropical Forest Ecoregion occurs on a small area in the
northern Department of Tumbes. It is the southernmost extension of the
western Andes humid tropical forest. Rainfall, however, rarely exceeds
1,200 mm/yr., except during an El Niño event. Mean maximum temperatures
are around 25° C. The only ecosystem in this Ecoregion is the *Pacific
Tropical Forest* ecosystem, which corresponds to the area of the
Ecoregion itself. The forest has a canopy height of 20 to 25 meters and
a very high diversity of species. Timber trees include [Cedrela
odorata]{.underline} and [Cordia alliadora]{.underline}.

**[Highland Geographic Region]{.underline}**

2.20 The Highland Geographic Region, also known as the "Sierra", lies to
the east of the coastal plain. It covers over 39 million hectares, 30
percent of Peru's area. Topography is extremely varied, with high, flat
plains, deep valleys and snow-covered peaks.

2.21 Amazon and coastal air masses both influence the climate of the
Sierra Region. Average annual precipitation is about 700 mm and average
annual temperature about 15° C. Local topography and altitude, however,
greatly influence site-specific climates in the Highland Geographic
Region. At higher elevations, the average precipitation may be as low as
450 mm/yr. and the average annual temperature as low as 9° C.

2.22 The four Ecoregions of the Highland Geographic Region are the
*Andean Steppe*, *Puna, High Andean Pastures,* and *Paramo.*

**Andean Steppe Ecoregion**

2.23 The Andean Steppe Ecoregion is extremely mountainous. Its soils are
frequently shallow and stony, but may be fertile in the valley bottoms.

2.24 The principal ecosystems a within this ecoregion are the
*Brushland* and *Quinuales.*

-   *Brushland*: The Brushland ecosystem occurs between 1,500 and 3,800
    masl. Its typical plant species are the bushes and small trees
    C[erus candelaris]{.underline}; [Carica candicans]{.underline};
    [Armatocereus sp]{.underline}, [Salix sp]{.underline}.; [Alnus
    sp]{.underline}.; [Schinus molle]{.underline}, [Sambucus
    peruviana]{.underline} and [Opuntia ficus]{.underline}.

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-   *Quinuales*[:]{.underline} The Quinuales ecosystem occurs between
    3,000 and 4,500 masl. and is named after its dominant tree, the
    "quinual", (P[olylepsis, sp)]{.underline}.

**Puna Ecoregion**

2.25 The Puna Ecoregion occurs in the southern Highlands at elevations
over 3,800 masl. The Puna's topography is generally flat or gently
rolling. Soils have a black, organic surface layer that overlies
unconsolidated volcanic ash. Nights are very cold but days can be quite
warm. Some of Peru's major rivers originate in the Puna\'s many lakes.

2.26 The principal ecosystems of the Puna Ecoregion are the *High Andean
Pastures* and the *Tolares*.

-   *High Andean Pastures*: The High Andean Pastures cover about 19
    million hectares of the highest elevations of the Andean steppe. The
    original vegetation mostly consisted of herbs of the genera
    [Festuca,]{.underline} [Calamagrostis,]{.underline}
    [Poa]{.underline}, [Bromus]{.underline} and [Stipa]{.underline}.
    Sheep have overgrazed most of this ecosystem.

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-   *Tolares:* The Tolares ecosystem occurs in the southern part of the
    Puna Ecoregion, where temperatures are lower and rainfall is less
    than further north. Several thorny species of bushes, locally called
    "tola", of the genera [Parastrephia]{.underline} and
    [Baccharis,]{.underline} predominate.

**Paramo Ecoregion**

2.27 The Paramo Ecoregion occurs in a relatively small area at 3,500 and
4,500 masl in the headwaters of the Chinchipe, Quiroz and Huancabamba
rivers in northern Peru. It is similar to, but more humid than, the Puna
Ecoregion. Except for isolated patches of trees, in the genera
[Polylepis]{.underline}, [Alchimilla]{.underline}, and
[Escallonia,]{.underline} its vegetation is mostly herbaceous.

**[Amazon Geographic Region]{.underline}**

2.28 The Amazon Geographic Region occupies the eastern part of the
country, covering over 75 million hectares, or about 59 percent of Peru.

2.29 Humid air masses from the eastern Amazon Basin are the main
influence on the climate. Annual rainfall, although generally above
2,500 mm/yr., is not uniform. Rainfall increases with higher elevations
and decreases towards the south, where a dry season of up to three
months occurs. Temperatures in the lower areas are usually in the upper
20's but decline with increasing elevation.

2.30 The Amazon Geographic Region's two principal ecoregions are the
*"Selva Alta*" and the *"Selva Baja".*

**"Selva Alta" Ecoregion**

2.31 The "Selva Alta" ecosystem, also known as the "Yungas", occurs
along the steep eastern slopes of the Andes above the Amazon plain,
between 500 and 3,800 masl. Topography in this ecoregion greatly
influences precipitation patterns; some easterly exposed slopes, for
example, may receive as much as 8,000mm/yr. of rainfall. Areas lying in
a rain shadow, however, may have much less precipitation. Soil types
include newly formed, fertile and old, infertile soils. Biodiversity and
endemism in this ecosystem is extremely high. Many plant and animal
species have a very restricted distribution.

2.32 Ecosystems of the "Selva Alta" are the *Upper Montane Forest, Lower
Montane Forest*, and *Podocarpus Forest.*

-   *Upper Montane Forest:* The Upper Montane Forest occurs between
    1,800 and 3,800 masl. It frequently covers shallow soils on steep
    slopes with dense vegetation composed of mosses, lichens, bromeliads
    and climbing plants as well as short trees of the genera
    [Myrcia,]{.underline} [Clusia,]{.underline} [Alnus]{.underline},
    [Piper]{.underline}, [Polylepis,]{.underline} [Gynoxis,]{.underline}
    [Weimania]{.underline}, [Ocotea,]{.underline} and
    [Eugenia.]{.underline}

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-   *Lower Montane Forest*: The Lower Montane Forest occurs between 600
    and 1,400 masl. Originally, it covered much of the Central Selva,
    Pichis, Palcazu, Satipo, Chancamayo and Huallaga Valleys. Levels of
    biodiversity and endemism are very high. The forest forms a closed
    canopy with tree heights of up to 30 m. and many lianas and
    epiphytes. As many as 50 plant species may grow per hectare. Among
    the commercial tree genera are [Aniba,]{.underline}
    [Ocotea]{.underline}, [Perea]{.underline}, [Nectandra]{.underline},
    [Cedrela,]{.underline} [Virola]{.underline} and
    [Chorisia.]{.underline}

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-   *Podocarpus Forests*: The podocarpus forest ecosystem, composed of
    several species of the genera [Podocarpus]{.underline}, occurs
    mostly in the Department of Cajamarca, at elevations between 1,800
    and 3,500 masl, and covers about 153,000 hectares.

**"Selva Baja" Ecoregion**

2.33 The "Selva Baja" is Peru's largest ecoregion, covering about 45
million hectares. It lies between 100 and 600 masl in the east and
northeast. Much of the ecoregion is flat, although occasional hills rise
up to 500 meters. Standing water is common. This ecoregion is the most
biologically diverse in Peru.

2.34 The ecosystems of the \"Selva Baja\" are the *Riverain Forest,
Swamp Forest and "Aguajales, Terrace Forest, Upland Forest*, and *Bamboo
Forests*.

-   *Riverain Forest:* The Riverain Forest ecosystem, covering about 3.2
    million hectares , borders the main rivers. Depending on the site,
    its vegetation can be savanna-like or dense forest. Higher sites
    frequently have fertile soils, often cultivated periodically by
    indigenous peoples. Although pioneer heliophytes, such as [Cecropia
    sp]{.underline}, [Ficus anthelminthica]{.underline}, [Guarea
    sp]{.underline}., [Cumala sp.]{.underline} and [Calophyllum
    sp]{.underline}., quickly colonize abandoned agricultural clearings,
    most tree species that occur in this ecosystem do not grow
    particularly fast.

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-   *Swamp Forest and "Aguajales*": The Swamp Forest and "Aguajales"
    ecosystems occur on about 6.3 million hectares near the Maranon,
    Ucayali, Tigre and Pastaza Rivers. The "Aguajales" are dominated by
    the \"aguaje\" palm, [Mauritia flexuosa]{.underline}. Associated
    species include [Ficus sp]{.underline}. [Virola sp.,]{.underline}
    [Guarea sp]{.underline}., [Euterpe spp]{.underline} and [Lessenia
    spp]{.underline}.

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-   *Terrace Forest:* The Terrace Forest ecosystem occurs on about 8
    million hectares of the level to slightly rolling land on the
    alluvial terraces of large rivers. Its fertile soils offer the best
    possibility in the "Selva Baja" for sustainable agriculture. Typical
    tree species include [Hura crepitans,]{.underline} [Guarea
    sp.,]{.underline} [Bertholletia sp.]{.underline}, [Cedrelinga
    catanaeformis, Ocotea sp]{.underline}., and [Pourouma]{.underline}
    [sp.]{.underline}

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-   *Upland Forests:* The Upland Forest is the most extensive ecosystem
    in the "Selva Baja", covering about 26 million hectares. It occurs
    on old terraces and hills, where soils are generally quite
    infertile. Plant species diversity is extremely high. The most
    valuable timber trees are [Cedrelinga catanaeformis]{.underline},
    [Cedrela odorata,]{.underline} [Swietenia macrophylla]{.underline},
    and [Protium sp.]{.underline}

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-   *Bamboo Forests:* Dense bamboo forests occupy about 1.5 million
    hectares in the "Selva Baja" Like the Upland Forest ecosystem, this
    ecosystem tends to occur on old terraces and hills.

**Palm Savanna Ecoregion**

2.35 The palm savanna ecoregion occurs in a small area of southern Peru,
in Madre de Dios Department. It is an outlier of the savannas of
Bolivia, Paraguay and Brazil and its principal plant species is the palm
[Mauritia flexuosa]{.underline}. The only ecosystem in this ecoregion is
the Palm Savanna ecosystem itself.

**Peru's Species Diversity**

**Plants**

2.36 Peru has 17,144 species of identified flowering plants, in 2,458
genera and 224 families.[^25] This is the fourth largest number of
identified flowering plants of any country in South America and the
ninth largest number of any country in the world. The families with the
most species diversity are the Asteraceae, Orchidaceae and Piperaceae.
The eastern side of the Andes has more flowering plant diversity than
the western side. More than 300 species of trees per hectare have been
recorded at Yanamono in the Amazon.[^26] Thirty-one percent of Peru's
flowering plants, or 5,354 species, are endemic.[^27]

2.37 Peru has approximately 1,000 species of non-flowering plants, such
as ferns, licopodios, and equistos in 16 families. The highest variety
and number of non-flowering plants occurs in the "Selva Alta"
Ecoregion.[^28]

**Birds**

2.38 Birds are the most completely studied group of Peruvian fauna.[^29]
Identified bird species number 1,710, in 88 families. The greatest
number of species occurs in the "Selva Baja" Ecoregion, where 895
species have been reported. The fewest species are found in the Puna
Ecoregion. Many bird species, especially those that inhabit the western
slopes of the Andes, have very restricted distributions.[^30] There are
112 species of endemic bird species in Peru.[^31] The Peruvian Marine
ecoregions provide refuges for many species of migrant birds from the
Northern Hemisphere.[^32]

Table 2. Number, Orders, Families, Genera and Species of Birds by
Ecoregion

+-------------------------+-------+---------+--------+-------+-------+
| Ecoregion[^33]          | Order | Family  | Genera | Sp    | Rest  |
|                         |       |         |        | ecies | rict. |
+-------------------------+-------+---------+--------+-------+-------+
| Peru                    | 20    | 88      | 587    | 1705  | 959   |
+-------------------------+-------+---------+--------+-------+-------+
| Marine and Shore        | 10    | 39      | 98     | 175   | 91    |
|                         |       |         |        |       |       |
| Arid Tropical           | 17    | 48      | 190    | 245   | 64    |
|                         |       |         |        |       |       |
| Arid Subtropics         | 14    | 40      | 117    | 151   | 22    |
|                         |       |         |        |       |       |
| Arid Temperate          | 11    | 30      | 85     | 133   | 2     |
|                         |       |         |        |       |       |
| Humid Subtropical       | 11    | 32      | 101    | 143   | 8     |
| Temperate               |       |         |        |       |       |
|                         | 13    | 34      | 82     | 128   | 39    |
| Puna                    |       |         |        |       |       |
|                         | 13    | 39      | 144    | 250   | 94    |
| Humid Temperate         |       |         |        |       |       |
|                         | 14    | 44      | 189    | 292   | 74    |
| Humid Subtropical       |       |         |        |       |       |
|                         | 13    | 43      | 214    | 305   | 55    |
| High Humid Tropical     |       |         |        |       |       |
|                         | 17    | 65      | 435    | 895   | 510   |
| Humid Tropical          |       |         |        |       |       |
+-------------------------+-------+---------+--------+-------+-------+

Source: INRENA, 1997, p. 101, Table 4.3.1

**Mammals**

2.39 Peru has 460 identified terrestrial and marine mammal species, in
49 families, and 196 genera. Sixty-seven percent of the mammal species
are rodents or bats; bat species represent 35 percent of the mammals of
Peru, with 164 species in 55 genera and 8 families. Twenty-four rodent
species are endemic to Peru. About 30 mammal species are endemic to the
eastern "Selva Alta". Seven species are endemic to the western coast and
Andean foothills. The largest number of endemic species, however, occurs
in the \"Selva Baja\" Ecoregion. [^34]

Table 3. Numbers of Orders, Families and Species of Mammals in Peru

+-----------------------+-----------------------+-----------------------+
| Orders                | Families              | Species               |
+-----------------------+-----------------------+-----------------------+
| Marsupialia           | 2                     | 29                    |
|                       |                       |                       |
| Xenarthra             | 4                     | 13                    |
|                       |                       |                       |
| Insectivora           | 1                     | 1                     |
|                       |                       |                       |
| Chiroptera            | 8                     | 152                   |
|                       |                       |                       |
| Primates              | 3                     | 32                    |
|                       |                       |                       |
| Carnivora             | 7                     | 35                    |
|                       |                       |                       |
| Cetacea               | 7                     | 30                    |
|                       |                       |                       |
| Sirenia               | 1                     | 1                     |
|                       |                       |                       |
| Perissodactyla        | 1                     | 2                     |
|                       |                       |                       |
| Artiodactyla          | 3                     | 12                    |
|                       |                       |                       |
| Rodentia              | 12                    | 152                   |
|                       |                       |                       |
| Lagomorpha            | 1                     | 1                     |
+-----------------------+-----------------------+-----------------------+
| Total                 | 50                    | 460                   |
+-----------------------+-----------------------+-----------------------+

Source: INRENA, 1997, p. 103, Table 4.3.1.f.

2.40 The diversity of ecological niches created by the convergence of
cold and warm currents in the Marine Geographic Region supports a high
diversity of marine mammal species. Thirty-one species of whales live in
or migrate through Peruvian coastal waters. Of these, however, only one
species is endemic, the *Mesoplodon peruvianus*, the "ballena de pico
Peruana".[^35]

**Amphibians**

2.41 Peru has 315 identified species of amphibians, 125 of which are
endemic. Sixty new species of amphibians have been identified since
1985. About 30 percent of the amphibian species are restricted in their
range to only one reported site. The largest number of amphibian species
occurs in the "Selva Alto" and "Selva Baja".[^36]

Table 4. Number of Orders, Families, Genera and Species of Amphibians in
Peru by Ecoregion

+-----------------------+--------+--------+--------+--------+--------+
| Ecoregion             | Order  | Family | Genera | S      | Res    |
|                       |        |        |        | pecies | trict. |
+-----------------------+--------+--------+--------+--------+--------+
| Peru                  | 3      | 132    | 48     | 315    | 264    |
+-----------------------+--------+--------+--------+--------+--------+
| Coastal Desert        | 1      | 2      | 2      | 3      | 1      |
|                       |        |        |        |        |        |
| Dry Ecuatorial Forest | 1      | 2      | 4      | 4      | 2      |
|                       |        |        |        |        |        |
| Tropical Pacific      | 1      | 4      | 7      | 7      | 3      |
| Forest                |        |        |        |        |        |
|                       | 1      | 3      | 3      | 13     | 4      |
| Andean Steppe         |        |        |        |        |        |
|                       | 1      | 3      | 7      | 27     | 19     |
| Puna                  |        |        |        |        |        |
|                       | 1      | 3      | 7      | 11     | 8      |
| Paramo                |        |        |        |        |        |
|                       | 3      | 8      | 26     | 131    | 97     |
| "Selva Alta"          |        |        |        |        |        |
|                       | 3      | 13     | 44     | 167    | 130    |
| "Selva Baja"          |        |        |        |        |        |
|                       | 1      | 1      | 4      | 5      | 0      |
| Palm Savanna          |        |        |        |        |        |
+-----------------------+--------+--------+--------+--------+--------+

Source: INRENA, 1997, p. 99, Table 4.3.1.c

**Reptiles**

2.42 Peru has 365 identified reptile species, of which 98 are endemic.
Although the largest number of reptile species occurs in the "Selva
Baja" ecoregion, most of the endemic species live in the Pacific Desert
and Dry Equatorial Forest ecoregions. Over 80 percent of the reptile
species have restricted ranges.

Table 5. Number of Reptiles in Peru by Order, Family, Genera, and
Species

+-----------------------+--------+--------+--------+--------+--------+
| Ecoregion             | Order  | Family | Genera | S      | Res    |
|                       |        |        |        | pecies | trict. |
+-----------------------+--------+--------+--------+--------+--------+
| Peru                  | 3      | 27     | 120    | 365    | 301    |
+-----------------------+--------+--------+--------+--------+--------+
| Ocean                 | 2      | 3      | 5      | 5      | 0      |
|                       |        |        |        |        |        |
| Coastal Desert        | 1      | 8      | 22     | 44     | 32     |
|                       |        |        |        |        |        |
| Dry Equatorial Forest | 2      | 11     | 22     | 39     | 19     |
|                       |        |        |        |        |        |
| Tropical Pacific      | 3      | 5      | 6      | 6      | 2      |
| Forest                |        |        |        |        |        |
|                       | 1      | 6      | 16     | 25     | 17     |
| Andean Steppe         |        |        |        |        |        |
|                       | 1      | 2      | 5      | 14     | 11     |
| Puna                  |        |        |        |        |        |
|                       | 0      | 0      | 0      | 0      | 0      |
| Paramo                |        |        |        |        |        |
|                       | 2      | 13     | 41     | 93     | 58     |
| "Selva Alta"          |        |        |        |        |        |
|                       | 3      | 21     | 43     | 189    | 162    |
| "Selva Baja"          |        |        |        |        |        |
|                       | 1      | 1      | 1      | 1      | 0      |
| Palm Savana           |        |        |        |        |        |
+-----------------------+--------+--------+--------+--------+--------+

Source: INRENA, 1997, p. 100, Table 4.3.1.d.

**Freshwater Fishes** [^37]

2.43 Peru has 900 identified freshwater fish species, although the total
number may be over 1,200. The number of freshwater fishes differs
greatly between Peru's three principal drainage areas: the Pacific
Coast, the Amazon Basin and Lake Titicaca Basin. The Pacific Watershed
has only 37 fish species and 30 of these live in the Tumbes River, in
northern Peru. Fish diversity decreases south of the Piura River. In the
southern Moquegua River, for example, there are only three fish species.
There are two endemic fish species in the Tumbes River and one in the
Piura River.

2.44 In Lake Titicaca there are 39 native species and 1 introduced
species (Odonthestes bonariensis or "pejerry") of fish. Thirty-three of
the species are endemic, belonging to only one genera, *Orestira.*.

2.45 The Amazon Basin has 855 fish species, in 323 genera and 45
families. Species variety and fish abundance within and between the
region's rivers varies considerably, depending on nutrient availability.
The upper reaches of the Marañon River, for example, which carry little
sediment and are nutrient poor, have relatively few fish species and low
fish populations. The lower Marañon River, which has more sediments and
nutrients, supports high fish populations and over 200 fish species. The
Alto Ucayali River has 150 species of fish, mostly relatively small,
while the Ucayali River has over 300 species, including some species,
such as the "paiche", *Arapaima gigas*, that grow to a very large size.
In the Madre de Dios River 120 species of fish have been identified.
Little information has been collected regarding the fish populations of
the Napo River.[^38]

Table 6. Number of Fishes by Order, Family, Genera and Species in Peru
by Basin

+--------------------------------+--------+--------+--------+--------+
| Basin                          | Orders | Fa     | Genera | S      |
|                                |        | milies |        | pecies |
+--------------------------------+--------+--------+--------+--------+
| Peru                           | 16     | 57     | 346    | 866    |
+--------------------------------+--------+--------+--------+--------+
| Pacific Basin                  | 6      | 16     | 26     | 37     |
|                                |        |        |        |        |
| Titicaca Basin                 | 2      | 4      | 4      | 39     |
|                                |        |        |        |        |
| Amazon Basin                   | 14     | 45     | 323    | 744    |
|                                |        |        |        |        |
| High Andes Lakes/Rivers        | 2      | 3      | 3      | 22     |
+--------------------------------+--------+--------+--------+--------+

Source: INRENA, 1997, p. 97, Table 4.3.1.b.

**Invertebrates** [^39]

2.46 Knowledge of invertebrate species in Peru is far from complete
since probably only about 20 percent of the total number of species have
been scientifically described and identified. Of the identified species,
10,800 are insects, 3,000 are arachnids, 1,030 are mollusks, and 512 are
crustaceans.

**Peru's Genetic Diversity**

2.47 An important element of Peru's biodiversity is the genetic
diversity contained in its species of living organisms. Peru is a world
center for domestic plants and animals that have become useful to
humans. Some of the domesticated plants, such as the potato and tomato,
have spread around the world and have become economically important;
their wild relatives contain important reserves of genetic variety.
Other of Peru's domesticated flora and fauna, including "amaranto",
"chirimoyo", "cocona", "kiwicha", "lucumo", "olluco", "quinua",
"rocoto", "tarwi", and "tomate de arbol", are less well known
internationally, although they are important foods in Peru. Peruvian
farmers, for example, cultivate more than 30 genetically distinct
varieties of "quinua", each one adapted to a local ecotype.[^40]

2.48 Genetic diversity must also be great in many species of wild
organisms. Comparatively little, however, is known about the genetic
diversity of undomesticated species of plants and animals.[^41]

## **Threatened and endangered species**

## 2.49 In 1999, the Peruvian government promulgated an official list of threatened species. The list included 222 species of terrestrial and aquatic vertebrates, including 73 mammals, 86 birds, 44 reptiles and 19 amphibians. Eighty-one of the endangered species are aquatic.[^42]

**National System of Natural Protected Areas** [^43]

2.50 In 1990, Peru established the National System of Natural Protected
Areas (SINANPE). SINANPE includes 17.3 million hectares, thirteen
percent of Peru's total area. It is administered by the National
Institute for Natural Resources (INRENA), with cooperation from national
and international development agencies and environmental NGOs. SINANPE
includes 53 separate areas, including National Parks (9), National
Reserves (9), National Sanctuaries (6), Historical Sanctuaries (4),
Protective Forests (6), Communal Reserves (2), Hunting Territories (2),
Landscape Reserves (1) and Reserved Zones (14). Thirty-eight priority
zones for conservation of biological diversity have been identified in
Peru. Of these, SINANPE adequately protects 11, partially protects six,
and does not protect 21. Financing for SINANPE comes from public funds
and from the National Fund for Natural Protected Areas (FONANPE), which
receives Peruvian government and international donations.

# 3. Threats to conservation and sustainable management of Peru\'s biodiversity and tropical forest

3.1 The four principal threats to Peru\'s tropical forests and
biodiversity are (i) habitat loss and fragmentation; (ii)
over-exploitation; (iii) contamination; and (iv) exotic species. [^44]
The following paragraphs summarize the character and scope of these
threats in Peru.

**Habitat Fragmentation**

3.2 Habitat fragmentation, the greatest threat to Peru's biodiversity
and tropical forests, has two components: (i) reduction of the total
amount of a habitat type and (ii) division of the remaining habitat into
smaller, more isolated patches. Habitat fragmentation causes local
species extinction, shifts in species composition and a change in
abundance patterns in favor of weedy species. A reduction in total
population may affect a species' genetic stability and evolution. The
pattern and scale of habitat fragmentation determines its impact on
biodiversity.[^45]

3.3 Deforestation is the most widespread cause of habitat fragmentation
in Peru. The last study of deforestation in Peru, prepared in 1996 by
INRENA, included only the "Selva Alta" y "Selva Baja" Ecoregions. It
concluded that the original forest cover in the "Selva Alta" and "Sevla
Baja" was 75.5 million hectares and that by 1990, 6.9 million hectares,
or about 9 percent of this area had been deforested. Sixty percent of
the deforestation had occurred in the "Selva Alta and 40 percent in the
"Selva Baja. [^46]

3.4 Deforestation can be temporary or permanent. Temporary deforestation
generally occurs as a stage of shifting agriculture. Crops are grown,
usually by local people not agricultural colonists, on a small patch of
land that has been cleared of forest. Clearing, however, usually leaves
stumps and seeds of the native vegetation in the soil. When weed and
insect populations become too large, and the soil loses most of its
fertility, the patch is abandoned and cultivation is moved to another
part of the forest. The abandoned land begins to be covered again with
native vegetation and forest can often develop again. In Peru, this type
of temporary deforestation occurs most commonly in the "Selva Baja".

3.5 Another type of deforestation results from a decision to change
permanently land use. Agricultural colonists clear forest with the
intention of changing the land use permanently to agriculture and
pasture. About 1 million hectares of forest in the "Selva Alta" have
been cleared for the cultivation of coca.[^47]. Roads and trails left by
logging operations and seismic lines cut during exploration for
petroleum frequently provide the colonists the means to penetrate the
forest.[^48] Most of the permanent deforestation has occurred in the
"Selva Alta" although some permanent clearing for pasture is also
occurring in the "Selva Baja".[^49]

3.6 Placer gold mining Peruvian Amazon rivers has also destroyed about
15,000 ha of riverside vegetation.[^50]

3.7 Deforestation is also occurring in some of Peru's other ecoregions.
For example, only about 5,000 ha of the original 28,000 ha of mangrove
forest remain in the estuaries of the Tumbes and Illo Rivers on the
northwest coast, due to clearing for the construction of shrimp
ponds.[^51] Likewise on the northwest coast, a large part of the
"Algarrobos" forest has been cleared to create pasture and produce
firewood.[^52] Probably permanent deforestation is occurring in other
types of Peruvian forest.[^53]

3.8 Not all habitat fragmentation in Peru involves deforestation.
Coastal cities, for example, have expanded across the natural and
agricultural landscapes of the coastal desert. Over-grazing by sheep has
changed the species composition of the herbaceous plants of the Puna and
Paramo ecosystems. Probably other types of habitat fragmentation are
occurring, although they have not been studied.[^54]

**Over-exploitation**

3.9 Over-exploitation of the environment\'s resources is a second
principal threat to Peru's biodiversity and tropical forests. Commercial
over-exploitation of wild living resources, such as fishes, whales,
commercial timber trees, wildlife and wild medicinal plants, for
example, may severely reduce their populations. Reduced population
levels reduce the diversity of a species' gene pool, lowering it
adaptability to environmental change or competition, and thus increasing
the risk of species extinction.[^55] Sometimes population reduction may
be a side effect of a commercial activity, as when sea turtles, dolphins
or seabirds are caught inadvertently in drift nets or marine
trawls.[^56]

3.10 Logging as generally carried out in Peru is a form of
over-exploitation of Peru's forests. Peruvian logging operations
generally remove only one tree for every four hectares, since less than
50 tree species have commercial value and these occur infrequently in
the forest.[^57] Even such low volume, selective extraction, however,
may significantly affect the forest\'s biodiversity. Especially in
highly species diverse humid tropical forests, the silvical
characteristics of the exploited species rarely are well known.
Therefore, the requirements of soil conditions, temperature, moisture
and light for successful regeneration are for the most part not known.
Peruvian foresters do not have the basis, therefore, for making
silvicultural prescriptions that are successful in regenerating the
exploited tree species.

3.11 Mahogany is the most studied case of a commercial species in Peru
becoming rare through over-exploitation. Until recently, the Peruvian
timber industry has concentrated on removing large mahogany trees from
primary forest. Although the silvics and silviculture of mahogany are
well known compared to other commercial tree species of Peru's humid
tropical forest, no effective silvicultural measures were taken during
or after logging to assure its regeneration.[^58] The population of
mahogany trees in Peru, therefore, has decreased.[^59]

3.12 There are many other examples of over-exploitation of plant and
animals. In and around the Pacaya-Samiria National Reserve the area of
\"moriche\" palms has decreased because people cut the whole plant down
rather than just harvesting the ripe fruit. River turtle eggs are taken
in great numbers from river beaches in the "Selva Baja". Over-hunting of
large monkeys, some bird and ungulate species also is occurring.[^60] In
2000, 438,000 kilos of "una de gato" were extracted from natural forests
without technical control.[^61]

3.13 Over-exploitation has severely affected the populations of some
Peruvian marine organisms. For example, over-exploitation during the
1960's, combined with the impact of warm water temperatures during the
1971-2 El Niño, drastically reduced anchovy populations. Until the
mid-1990's these anchovy populations remained abnormally low. The low
anchovy population caused a sharp decline in the populations of some
species of sea birds. The population of \"guaneras\', for example,
declined from over 24 million in 1955 to only 2 million individuals in
1972.[^62]

3.14 When whaling stations were built in 1950 at Pisco and Paita on the
southern coast, whales were overexploited and their populations declined
drastically. Elimination of whaling allowed whale populations to rebound
in the 1980's. Similarly, over-hunting reduced sea lion populations on
the Peruvian coast from about 500,000 in the 1930's, to about 40,000 by
1970. [^63]

3.15 Over-exploitation probably has caused a decline of other species of
Peruvian animals. Peru\'s Amazon population, for example, consumes
approximately 60,000 tons of river fish per year.[^64] Manatees are
being over-hunted in the Pacaya-Samira National Reserve.[^65] Likewise,
logging crews and migrant farmers frequently rely on wild meat as an
important source of food. Their hunting probably significantly affects
the populations of some game animals.[^66] Hunting by native communities
in the Manu Reserve has been shown to have a significant impact on game
animal populations.[^67] Over-exploitation for licit or illicit commerce
in live and dead wild plants and animals also threatens Peru\'s
biodiversity. Commercially traded live organisms include parrots,
monkeys, boa constrictors, butterflies, insects, seeds, cactuses and
orchids. Parts of dead organisms that are traded illicitly included
armadillo and turtle shells, skins of various wild animals, feathers,
and teeth.[^68]

3.16 Over-exploitation of non-living natural resources can also threaten
biodiversity and tropical forests. Changes in the patterns and volumes
of water flow in rivers, for example, may modify habitat conditions and
affect populations of aquatic plants and animals. The flow of the Rimac
River, for instance, has been almost entirely diverted to Lima's water
supply. Lima, furthermore, plans to augment its water supply with water
from rivers whose water now flows to the east of the Andes. Such changes
in water flows are likely to cause negative impacts on fresh and oceanic
biodiversity. [^69]

**Contamination**

3.17 Contamination is the third major threat to Peru's biodiversity and
tropical forests. Contaminants may be synthetic substances or natural
substances, such as animal wastes or discarded fibers that are released
into the environment. Contaminants can directly kill living organisms
and affect ecosystem functioning or evolutionary processes. Although it
may be easier to notice and measure the negative impacts on biological
diversity of large, concentrated, releases of contaminates into the
environment, small but repeated contamination at sites scattered over
large areas may also cause significant negative impacts on biological
diversity.

3.18 Artisanal and industrial mining occurs in many parts of Peru. Gold
mining, for example, involves directly or indirectly 30 percent of
Peru's Amazonic population.[^70] Industrial mining concessions in
southeast Peru, in the watersheds of the Inambari, Tambopata, Colorado,
Manu, Alto Madre de Dios and Heath covered 711,389 hectares in
2000.[^71] Both types of mining frequently contaminate Peru's water and
soil with such chemicals as cyanide, mercury, chrome, lead, manganese,
iron, cadmium, copper, zinc, arsenic and cyanide.[^72] Abandoned mines,
such as those at Matilde and Miluni near Lake Titicaca, may continue to
contaminate long after they are closed down.[^73] Some of the many
large, industrial mines that are located on the western flank of the
Peruvian Andes contaminate the rivers that cross the coastal plain into
the Pacific Ocean.[^74] Gravel mining in river bottoms, a common source
for road building operations in lowland humid forest areas, may cause
severe sedimentation, with impacts on aquatic biodiversity.[^75]

3.19 Industrial processes frequently release contaminants into Peru's
aquatic environments. Between Chimbote and Paracas, for example, on the
central Peruvian coast, 82 fishmeal and fish oil plants release
58,086,400 m3/yr of contaminated water, 4,324,096 m3/yr of fish blood,
and 9,513,023 m3/yr of "agua de cola" into the nearby ocean. These
contaminants lower dissolved oxygen levels and raise the pH of the ocean
water, thus affecting the variety and populations of marine
organisms.[^76]

3.20 Coca leaf processing causes widespread contamination of water in
the "High Selva" ecoregion. A 1986 study found that to produce 400 tons
of PBC in the Upper Huallaga Valley required 57 million liters of
kerosene, 32 million liters of sulfuric acid, 17 tons of calcium, 16
tons of live calcium, 6 million liters of acetone, and 6 million liters
of tolueno. After their use, these chemicals were disposed of directly
into water bodies, directly affecting terrestrial and aquatic
biodiversity.[^77]

3.21 Population centers throughout Peru release chemical and
microbiological contaminants into the ocean. Given the high
concentration of population on the coast, in cities such as Paita,
Chimbote, Supe, Pisco and Ilo, a large percentage of these contaminants
enter the ocean.[^78] The sewage system of Lima, for example, discharges
20 m3/sec of untreated waste water into Callao and Miraflores bays,
representing an estimated 126,000 tons/year of biochemical oxygen
demand.[^79] All the principal highland cities also discharge untreated
sewage into rivers and lakes.[^80] The city of Puna, for example,
contaminates Lake Titicaca, affecting its unique species of aquatic
organisms.[^81] The cumulative negative impacts on biodiversity,
although mostly unstudied, are probably severe.[^82]

3.22 Petroleum production frequently causes contamination of water and
soil. In 1993, for example, 5,000 barrels of oil were spilled at
kilometer 320 of the North Peruvian Pipeline; part of the oil entered
the Apaga and Yuruc Rivers. In 1994, 5,000 barrels of residual petroleum
were spilled into the Amazon River at the Petro Peru port. A rupture in
1994 of one kilometer of the Nor-Peruano Pipeline resulted in 24,000
barrels of oil entering the Maranon River. In 2000, 16,800 barrels of
oil were spilled from the Nor-Peruano pipeline in Amazonas Department.
The oil industry, moreover, daily releases cognate water from production
wells that have a high content of heavy metals. Both oil and cognate
waters alter the physical-chemical characteristics of the water into
which they are released in ways that can affect aquatic
biodiversity.[^83]

3.23 Agricultural production may significantly contaminate the
terrestrial and aquatic ecosystems with chemicals. The use of the Rimac
River water for human consumption is severely restricted due to its
contamination with nitrates, derived from inorganic fertilizers used on
the farmlands surrounding Lima. Some proportion of the contaminating
chemicals ends up in the Peruvian coastal waters. For example, a study
of a coastal fish, [Mugil cephalus]{.underline}, which is commonly used
for human consumption in Pisco, found that it contained pp-DDE.[^84]

3.24 According to a recent study made by the International Potato
Center, farmers in only three provinces of the Department of Cajamarca
apply 13 fungicides and 10 insecticides to their potato crops. Between
85 and 90 percent of these pesticides may not even reach the organisms
that they are intended to control. They, however, do enter terrestrial
and aquatic ecosystems, where they almost certainly affect biological
diversity and ecosystem functions as well as pose a threat to human
health.[^85] In addition, non-technical use of pesticides changes
evolutionary processes by selectively increasing the relative
reproduction rates of more resistant varieties of target populations.
They may also eliminate organisms that benefit agricultural production.

3.25 Sedimentation is a form of contamination of water bodies that may
affect biodiversity. Severe soil erosion affects approximately 8 million
hectares of Peru, especially at elevations between 1,500 masl and 3,700
masl. in the Highlands Geographic Region.[^86] Soil erosion may directly
affect biodiversity through the impact of sediments on aquatic
biodiversity. However, little data specifically links sedimentation with
loss of biodiversity in Peru.[^87]

**Exotic species**

3.26 Exotic species are a fourth threat to Peru's biodiversity. Exotic
species are species that have been introduced into areas beyond their
native ranges. There are many examples of how such introductions can
devastate native ecosystems and species. Exotic plant and animal species
may out-compete native organisms for food and space. They may also
change or reduce the habitat or food available to indigenous species.
The population of the native species may therefore decline. Exotic
species may also directly affect the growth of a native species when,
for example, an introduced disease or insect attacks and kills a native
plant or animal. Exotic species may also use the natural habitat in such
a way as to cause its degradation and decline in populations of some
species.[^88]

3.27 Very little information is available regarding the impact of exotic
species on Peru's biodiversity. Sheep, cows, donkeys, horses, pigs,
wheat, barley and many other now common plants and animals were
purposefully introduced to Peru after the Spanish conquest. Some exotic
crops are now grown on a large scale. Over 700,000 ha of irrigated
agriculture, for example, now occupy areas of the Pacific Geographic
Region, mostly planted to introduced species such as rice; these
hectares have replaced natural vegetation and native crops.[^89] Cattle
and sheep grazing in the Puna have favored some floral species over
others.[^90]

3.28 The pace of accidental introduction and spread of exotic species
probably has increased during the last decades, along with augmented
regional and international travel and commerce.[^91] Tilapia, introduced
in the Department of Loreto with the intention of increasing local food
supplies, for example, has escaped from fishponds and is now found in
local rivers, where it may be competing with native fish species.[^92]
The Asian shrimp species *Macrobrachyum sp.* has escaped from shrimp
ponds on the northwest Peruvian coast, and now competes with the native
shrimp, *Chryphos sp.*[^93] The magnitude of the threat from the
introduction of exotic species to Peru's biodiversity and tropical
forests, however, has not been adequately evaluated.

# 4. Impediments to reducing the threats to Peru\'s tropical forests and biodiversity

4.1 There are six principal impediments to reducing the threats to
Peru\'s tropical forests and biodiversity: (i) population growth and
migration; (ii) widespread poverty; (iii) government policies; (iv)
market failures and weaknesses; (v) inadequate environmental management
knowledge and capability; and (vi) lack of public awareness and support
for conservation and management of tropical forests and biodiversity.

**Population growth and migration**

4.2 The demand of larger human populations for the products and services
of the environment negatively affects biodiversity and tropical forests.
Larger human populations require more goods and services, such as water,
food, and fuel, most of which must be extracted or produced from the
environment. Soils must produce more food. More water must be diverted
from rivers to urban and agricultural areas. Oil, and other sources of
energy, must be found, extracted, and transported.

4.3 The population of Peru has grown from about seven million in 1940 to
over 25 million in 2001.[^94] This larger population requires more food.
An expansion of the total area of land under cultivation or pasture has
been one way to increase the food supply. Such expansion, however,
frequently has stimulated the conversion of natural landscapes to
agricultural landscapes. For example, in the 1980's, 233,000 hectares of
natural vegetation were cleared in the Central Huallaga and Lower Mayo
Valleys for conversion to agricultural use. Partial evaluations made in
1983 and 1986 indicated that in the valley agricultural production
increased 76 % between 1980 and 1988.[^95]

4.4 Extensive soil erosion, caused mostly by poor agricultural
practices, indirectly affects Peru's biodiversity and tropical forests
by lowering crop yields. Rural people who are dependent on subsistence
or commercial agriculture therefore have less food and cash income
available. Consequently, they become poorer. The result is increased
migration, either to urban areas, where the increased population
contributes to contamination of natural ecosystems, or to other rural
areas, where colonists may contribute to habitat fragmentation through
deforestation.[^96]

4.5 The growth in population of urban centers also can cause habitat
loss. In 1940, for example, most of the Peruvian coast had a population
of less than 20 inhabitants per km ². In 2000, by contrast, the central
and northern coast had a population density of 236 inhabitants per km
².[^97] The coastal cities of Lima, Tumbes, Piura and Tacna have all
expanded in area as their populations have grown. The population of
Lima, for example, grows by approximately 200,000 people per year.
Consequently, Lima has been expanding in area over surrounding
agricultural land at a rate of six percent every year. [^98]

4.6 Even if the total population was not to grow, internal migration
would cause impacts on Peru's biodiversity and tropical forests. Rural
highland people, for example, have migrated to the "Selva Alta" and the
"Selva Baja" where they caused habitat fragmentation through
deforestation. The deforestation in the Upper Huallaga Valley was
accompanied by the settlement of 3,500 colonists.[^99] Similarly, rural
people have moved into urban coastal areas, where they create more
wastes that are discharged into aquatic ecosystems.[^100]

**Widespread Poverty**

4.7 Poverty impedes people\'s ability to conserve and manage
biodiversity and tropical forests, frequently forcing them to take a
short-term perspective and use the environment in unsustainable
ways.[^101] Poverty also stimulates migration, as poor people move in
order to find opportunities to earn more income.

4.8 Poverty is Peru's most widespread and intractable problem. Peru in
1999 had a per capita income of \$2,065. Income distribution in Peru,
however, is extremely skewed and the majority of the population has an
income of less than US\$460 per year. Between 1999 and 2001, moreover,
the level of poverty increased from 50.7 to 54.4 percent of the
population and the percentage of "extremely poor" Peruvians leveled off
at an estimated 14.8 percent. The daily per capita expenditures of the
"extremely poor" in 2000 were only \$0.72. This is insufficient to buy
the minimum daily calories and nutrients to stay healthy and productive.
In 2001, the number of poor Peruvians was increasing by 75,000 per
year.[^102]

**Government policies**

4.9 Some government policies cause significant impediments to reducing
the threats to Peru\'s biodiversity and tropical forests. It is a policy
decision, for example, to give less priority to protection and
conservation of biodiversity and tropical forests than to other
concerns. Peruvian government leaders frequently do not give high
priority to the conservation of biodiversity and tropical forests. That
the Peruvian government, for example, has sometimes chosen to allow oil
exploration within national natural protected areas, an indication that
it at times assigns higher priority to oil production than to protection
of biodiversity and tropical forests.[^103]

4.10 Government policy decisions frequently rely on conclusions drawn
from analyses of the national economic accounts. Peru's national
accounts, however, do not include the environmental costs of destruction
and loss of biological diversity and tropical forests. The production of
timber, for example, enters on the positive side of the national
accounts; it thus is counted as a contribution to the Net National
Product. The loss of environmental services due to logging or
deforestation, however, does not enter on the negative side of the
accounts. The national accounts therefore give a false basis upon which
to make policy decisions.[^104]

4.11 The government's funding decisions also reflect its leaders' policy
priorities. The Institute for Natural Resources (INRENA), for example,
has the legal mandate to regulate the use of natural resources in all of
Peru. INRENA, however, is a relatively small, under-staffed and
under-budgeted government entity. It does not have sufficient public
funding, for example, to finance all the necessary park guards at one of
Peru\'s most biologically important protected areas, the Pacaya Samiria
National Reserve.[^105] By contrast, the Ministry of Mines, with no
greater responsibilities, is a well-staffed, well-financed
ministry.[^106] Again, this choice indicates that the national
government\'s priorities place mining over conservation of biodiversity
and tropical forests.

4.12 Some Peruvian government policies involve subsidies that encourage
habitat destruction, over-exploitation and contamination. The
government, for example, does not charge farmers the full price of the
irrigation water that it provides to them. Farmers who receive
subsidized irrigation water use more of it than they would if it cost
more. Consequently, the irrigation systems withdraw more water from
natural water bodies. The environmental impact of water withdrawals is
proportionately greater. [^107]

4.13 Government failure to enforce effectively environmental and natural
resource regulations is a policy decision to subsidize those who exploit
natural resources or discharge contaminants into the environment. Peru
has many environmental laws and regulations.[^108] If it is not
necessary to comply with them, however, the cost of doing so can be
removed from financial calculations. Consequently, the costs of an
economic activity go down and the net income goes up. Moreover, the
higher level of profit draws more investment into the activity,
increasing its negative environmental impacts.

4.14 For example, the government does not assign sufficient resources to
effectively control access to public forestlands and enforce land use
regulations. This has stimulated habitat loss and over-exploitation.
Logging companies and migrant farmers remove timber trees and eliminate
forest, for example, without having to incorporate payment for the
environmental costs of doing so in their financial calculations.
Similarly, petroleum companies generally are allowed to explore for and
produce oil without paying compensation for the negative environmental
impacts these activities cause. In both cases, reduced costs increase
the financial incentive for habitat destruction and over exploitation.

4.15 In Peru, the state has reserved to itself all rights over forest
resources. Article 6 of Law No 26821, "Ley Organica para el
Aprovechamiento Sostenible de los Recursos Naturales" says "The State
has sovereignty over the use of natural resources". Law No 27308, "Ley
Forestal y de Fauna Silvestre", divides up all of Peru's forests among a
number of different categories. All the categories, however, assign the
state control over forested land. There is no category of privately
managed forests. This policy creates a tremendous disincentive for
private landowners to protect and manage the forest on their land.
Landowners, with essentially no private rights to the forest resources
on their land, have an incentive to destroy the forest. By doing so,
they gain control over their property, since non-forest land uses are
less regulated by the government.[^109]

**Market Failures and Weaknesses**

4.16 Low prices and unstable markets for biodiversity and tropical
forest products and services impede conservation and management of
Peru\'s biodiversity and tropical forests. Markets for forest
environmental services, such as protection of biodiversity, production
of oxygen, sequestration of carbon, purification of water, amelioration
of microclimates and protection and formation of soil, are incipient in
Peru.[^110] People who convert forest to non-forest uses, exploit
wildlife for sale, or contaminate water, therefore, do not pay the costs
of loss or degradation of these environmental services. Nor do those who
protect biodiversity and tropical forests receive a financial benefit.

4.17 Furthermore, products from Peru\'s tropical forests and
biodiversity that do have markets generally have a relatively low market
value. Two reasons for the low market value are overabundance and
difficulty of extraction. Since so much of Peru is covered with forest,
there is no shortage of forest products. Their value in the forest is
therefore low and landowners receive little for the forest products in
the forest on their land. Difficulty of access to the forest lowers the
in-forest value of forest products by raising extraction and
transportation costs. Thus rarely can the financial returns from forest
management for wood products compete with the returns from agriculture
or livestock, even on soils that have been classified as suitable only
for production of forest products.[^111]

**Inadequate environmental management**

4.18 Lack of scientific knowledge is one cause of inadequate
environmental management in Peru. Peru does not systematically collect
basic scientific information about its biodiversity and tropical
forests. There are no national or regional biological surveys. Peruvian
universities finance very little research on biodiversity or tropical
forests. Although foreign universities and international agencies do
finance some scientific research on biodiversity and tropical forests,
such research tends to be short-term and frequently inaccessible to
Peruvians.[^112]

4.19 Peru also lacks sufficient institutional capacity for converting
scientific information into management technologies. Silvicultural
practices, for example, should be based on autoecological knowledge of
the tree species to be regenerated yet little such technical knowledge
has been developed by Peru\'s universities.

4.20 Ineffective environmental management also results from public and
private institutions that lack trained personnel and sufficient budgets.
Effective conservation and management of biodiversity and tropical
forests requires professionals, technicians and workers who are trained
to analyze natural resource management problems and make correct
management decisions. These personnel, moreover, must be working in
sufficient numbers and in the right place in field situations in order
to apply their capabilities. Peruvian universities do not graduate
sufficient numbers of environmental management specialists. Difficult
living conditions in most parts of Peru, moreover, discourage
professionals from permanently living in or near to the natural areas
that require their professional capabilities.[^113]

4.21 An incomplete and ineffective legal, regulatory and normative
framework contributes to inadequate environmental management.
Authorities are necessary to set standards, promote pollution prevention
in industry and create incentives for improving industrial environmental
performance. Legislation is required to assure that natural resources
are fully costed and therefore efficiently used. Strengthened
regulations regarding public access to environmental information are
necessary, as are regulations to define judicial mechanisms for
environmental management. [^114]

4.22 An essential part of environmental management is a capability for
enforcing regulations. Many of the institutions responsible for
regulating, controlling and enforcing Peru's environmental laws and
regulations do not have sufficient qualified personnel, equipment or
operating budgets to be effective. Most local governments also lack the
capability to analyze the environmental consequences of development
investments.[^115]

**Lack of public support**

4.23 The Peruvian public gives a lower priority to conservation and
management of biodiversity and tropical forests than to such immediate
problems as unemployment, poverty and income. Environmental
contamination was named a principal concern by only 4.8 percent of
Peruvians in a survey made in 1998. By contrast, 67 percent named
employment, poverty and income as their principal concerns.[^116] These
percentages indicate that most Peruvians support their political
leaders' decisions, described above, to give lower priority to
conservation and management of biodiversity and forests than to other
goals.

[^1]: Cuanto Institute, 2001, Chapter 9.

[^2]: In this report, the term [threat]{.underline} refers to the direct
    causes of the loss of biodiversity and tropical forests. The term
    [impediment]{.underline} refers to the barriers to the reduction or
    elimination of these threats. The term [action]{.underline} refers
    to specific activities designed to remove, reduce, or mitigate
    impediments.

[^3]: The many national laws and regulations and international
    environmental treaties of which it is a signatory indicate this
    commitment of the Government of Peru. The commitment of many
    Peruvians has been shown in the establishment of many environmental
    NGOs and in the results of opinion surveys.

[^4]: USAID/Peru. 2001.

[^5]: Cuanto Institute, 2000 and Cuanto Institute, 2001 (Draft Chapters
    9 -- 13). The second document was scheduled to be completed and
    published in December 2001 but only the drafts of Chapters 9 through
    13 were available for the preparation of the present report.
    USAID/Peru provided financing for both reports.

[^6]: INRENA. 1997, p. 71, Table 4.2 lists seven different ways to
    classify Peru's landscape.

[^7]: CONAM, 2001, p. 24

[^8]: INRENA. 1997, pp. 88 & 122

[^9]: Cuanto Institute, 2001and INRENA, 1997 contain little information
    about gene level biodiversity of wild, natural populations. They
    both focus on the genetic diversity of domesticated plants and
    animals.

[^10]: INRENA, 1997, pp. 57-62

[^11]: This report utilizes the Ecoregion system of classification
    because that is the system that was used in Low et. al., 1993,
    INRENA, 1997, and Cuanto Institute, 2000. The descriptions of the
    Ecoregions are adapted from these documents.

[^12]: Topographic features characterize a [Geographic
    Region]{.underline}. Ecological characteristics define an
    [Ecoregion.]{.underline} Vegetative formations are the simplest way
    to describe [Ecosystems]{.underline}, although an ecosystem includes
    more than just the main plant species.

[^13]: The Ecoregions do not fit neatly into the three terrestrial
    Geographic Regions. For example, the boundary between the Coastal
    Region and the Highland Region does not necessarily coincide exactly
    with the boundary between the Dry Equatorial Forest Ecoregion and
    the Andean Steppe Ecoregion.

[^14]: INRENA, 1997, p. 57 says that the area of the Marine Geographic
    Region is "370 km2". This must be a mistake, because on p. 58 it
    says that the area of the Coastal Region is "136,370 km.2". Yet the
    coast is only "40 to 80 km. wide\", while the Marine Geographic
    Region is \"200 miles wide\". The figure of 37 million hectares,
    therefore, is derived from supposing that "370km2" was meant to be
    "370,000 km2".

[^15]: Cuanto Institute, 2000, pp. 113-125

[^16]: INRENA, 1997, p. 149

[^17]: Ibid.

[^18]: INRENA. 1997, p. 167 quotes Dr. Roger Revelle, Director of the
    Scripps Institute, as saying that the Peruvian Coastal Current
    "...is situated in the most fertile area of the world and that it is
    the most important physical and biological phenomenon of the earth".

[^19]: Ibid., p.211, Diagram 4.

[^20]: Ibid., p.167 notes that the higher species diversity of the
    Tropical Ocean Ecoregion might partially be a result of more
    scientific investigation.

[^21]: Based on Low, 1993, pp.3-15 and Cuanto Institute, 2000, pp. 48-9

[^22]: Some of the ecosystems of the Coastal Geographic Region also
    cross into the Highland Geographic Region.

[^23]: Ibid., p.58

[^24]: masl: meters above sea level

[^25]: Cuanto Institute, 2001, Chapter 9.

[^26]: Ibid., Chapter 11

[^27]: Ibid., Chapter 9

[^28]: INRENA, 1997, p. 117

[^29]: Ibid., p.100

[^30]: Ibid., p. 101, Table 4.3.1

[^31]: Cuanto Institute, 2001, Chapter 9, Table 9.3

[^32]: Instituto Nacional de Estadistica e Infomatica, 2000. p. 92

[^33]: This table uses a somewhat different classification of
    ecoregions.

[^34]: Cuanto Institute, 2001, Chapter 9

[^35]: Ibid., Chapter 9

[^36]: Ibid., Chapter 9

[^37]: INRENA, 1997, Vol. I, pp. 95-97

[^38]: ibid., pp. 97-102

[^39]: ibid., p. 103

[^40]: ibid., pp. 227-8

[^41]: INRENA, 1997, p. 227-8 discusses genetic diversity but does not
    provide any information on the genetic diversity of wild populations
    of flora and fauna.

[^42]: Instituto Cuanto, 2000, p.40

[^43]: ibid. p. 222, Table 12.1

[^44]: Cuanto Institute, 2001, Chapter 10 and Meffe, Gary & Ronald
    Carroll, 1997, pp. 148-9.

[^45]: Meffe, Gary K & C. Ronald Carroll. 1997, pp. 230; 269-278.

[^46]: INRENA. 1996*.* This study has serious deficiencies: (1) It is
    out-of-date, since it is based on data from the 1980s. (2) It does
    not define the term "deforestation" and states no criteria for
    classifying its data points as "deforested" or not. (3) It
    extrapolates its study of deforestation in the Amazon Ecoregion to
    the whole country, without stating any justification for doing so.
    (4) it says that 80 % of the deforested area is "abandoned" and 20 %
    is in "production", with 6 % of that in "rotation", but does not
    define these terms. In short, the INRENA study provides little guide
    to the location, extent and character of deforestation taking place
    in Peru. There is, however, no other study of deforestation in Peru.
    Cuanto Institute, 2001, mostly bases its discussion of deforestation
    on the INRENA study.

[^47]: Cuanto Institue, 2001, Chapter 10. The study does not provide the
    source for this estimate of deforestation accelerated by coca
    production.

[^48]: Portilla, Alfredo. Per. com. 200. Petroleos del Peru, for
    example, has cut thousands of kilometers of seismic lines near the
    Tigre and Pastaza rivers in northern Peru. Similarly, Occidental
    Petroleum has cleared 1,863 km of seismic lines through its 100,000
    ha concession in the Ucayali River valley.

[^49]: Cuanto Institute, 2001 is contradictory regarding what happens to
    the deforested areas when they are abandoned. Thus in Chapter 10,
    Section 3, the Cuanto Institute study says that "...after a few
    years, most of the \[deforested\] land is converted into pasture".
    Yet on the same page, it also says that "...80% of the deforested
    area are now in a state of brush, "purmas" or secondary forest; the
    other 20% are in very low levels of production..."

[^50]: Cuanto Institute, 2001, Chapter 10, Section 3

[^51]: Ibid., p. 47

[^52]: INRENA, 1997, Vol. I, p. 128

[^53]: The documents consulted for this report do not discuss
    deforestation in other forested ecosystems. Attention appears to
    have been focused on deforestation in the \"Selva Alta\" and \"Selva
    Baja\", although even there the data is over a decade old.

[^54]: Inference

[^55]: Meffe, Gary K. and DC. Ronald Carroll. 1997, 203-231

[^56]: Ibid., p. 149

[^57]: Cuanto Institute, 2001, Chapter 10

[^58]: Mahogany is probably the tree species from the tropical humid
    forest whose silvics and silviculture has been most studied.

[^59]: Stern, Peggy. 2001. per. com.

[^60]: PiP, 2001, p. 10

[^61]: Instituto Cuanto, 2001, Chapter 12, Table 12.7; in 2001 D.S.
    014-2001-AG established the requirement for a management plan in
    order to produce "una de gato".

[^62]: Cuanto Institute, 2000, p. 41

[^63]: Ibid., p. 42

[^64]: Cuanto Institute, 2001, Chapter 10. The discussion in this
    section, however, does not draw any specific conclusions about the
    threat that commercial fishing in the Amazon rivers represents to
    its fish biodiversity.

[^65]: PiP, 2001, p.9

[^66]: Inference. Neither the Cunato Institute, 2001 or INRENA, 1997,
    evaluate the impact on wild game of logging crews and colonists.

[^67]: PiP, 2001. A study of the impact of hunting by native peoples in
    the Manu Biosphere Reserve compared the populations of on 14 species
    of animals within and outside of hunting areas. It found that
    hunting impact was much stronger on primates than on birds. For
    example, within the hunting area the density of Ateles sp was 2 or 3
    individuales /km2. Outside of the hunting area the populations of
    Ateles sp was 15 to 28 individuales/km2.

[^68]: Cuanto Institute, 2001, Chapter 10, Table 10.11

[^69]: Cuanto Institute, 2000, p. 77

[^70]: Cuanto Institute, 2001, Chapter 10

[^71]: Ibid.

[^72]: Cuanto Institute, 2000, p. 73, Table 6.1

[^73]: Ibid., p. 60

[^74]: Ibid., p. 72

[^75]: Inference

[^76]: Cuanto Institute, 2001, Chapter 10. This chapter does not provide
    qualitative or quantitative information on the effect of such
    contamination on aquatic biodiversity.

[^77]: Cuanto Institute, 2001, Chapter 10

[^78]: Cuanto Institute, 2000, p. 74, Figure 6.3

[^79]: Ibid., p.78

[^80]: Ibid., p.13

[^81]: INRENA, 1997, p. 222-3

[^82]: Inference

[^83]: Cuanto Institute, 2001., Table No. 10.3

[^84]: INRENA, p. 176

[^85]: Cuanto Institute, 2000 p. 84

[^86]: Sociedad National del Ambiente, 1999, p.39

[^87]: Note that neither of the two Cuanto Institute "State of the
    Environment Reports" , the INRENA "Esutdio Nacional de la Diversidad
    Biologica", nor the Peru: Natural Resource Assessment: 1993 Update",
    mention or discuss sedimentation of water bodies as a result of soil
    erosion as a threat to species diversity. Soil erosion, therefore,
    although certainly a serious environmental problem in Peru, has been
    considered more as a negative environmental impact of deforestation
    and poor land use practices than as a cause of biodiversity loss or
    degradation.

[^88]: Meefe, Gary K. & C. Ronald Carroll, 1997, p. 149; pp. 245-7

[^89]: , Cuanto Institute, 2000, p. 12, 16

[^90]: Low et. al., 1993., p. 98

[^91]: Inference

[^92]: Portilla, Alfredo. Per. comm., 2001

[^93]: Ibid.

[^94]:

[^95]: Low, F. et. al., 1993, p.45

[^96]: USAID, 1994, p 6.

[^97]: Cuanto Institute, 2000, p. 12

[^98]: Ibid., p. 77

[^99]: Low, F. et. al., 1993, p. 45

[^100]: Cuanto Institute, 2000, p. 69-82

[^101]: USAID/Peru, 2001, p. 76

[^102]: Ibid., p. 43

[^103]: Portilla, Alfredo. Per. comm. 2001

[^104]: Cuanto Institute, 2001, Chapter 10; note, however, that Peru
    does have an Integrated System of Environmental Accounting and
    Economy, as described in INEI, 2000, p.157

[^105]: Portilla, Alfredo. Per. comm. 2001

[^106]: Ibid.

[^107]: Cuanto Institute, Chapter 10

[^108]: The laws include the Organic Law for the Use of Natural
    Resources, Law for Conservation and Sustainable Use of Biological
    Diversity, Law for the National System of Environmental Impact, and
    the Law for Forestry and Wildlife.

[^109]: Randall, Alan, 1987, pp. 154-162

[^110]: Cuanto Institute, 2001, Chapter 12, discusses the markets for
    environmental services, including biological diversity, carbon
    sequestration and storage, ecotourism, scenic beauty, and water
    purification. Peru does receive international funding to support the
    protection of its natural areas. The only example of commercial sale
    of ecosystem services mentioned in the Chapter, however, has to do
    with ecotourism. Given the current international interest in the
    subject, it is likely that private sector initiatives are underway
    in Peru, as in other countries, to trade or sell carbon credits
    based on reforestation or forest protection projects.

[^111]: Southgate, D. 1998. P. 62. This publication provides the
    following information on the cost of transporting one cubic meter of
    wood from the Peruvian varzea forests the distance of 100
    kilometers: "...\$30.02, using a track; \$7.94 with a barge; and
    just \$1.02 when logs are rafted". The conclusion is that "...with
    transportation costs this low and with standing timber as abundant
    as (reported) ....stumpage values in a free and competitive market
    are unlikely to rise very high, even in the most favorably located
    várzea forests\".

[^112]: Maria Luisa del Rio, per. com., 2001.

[^113]: Romero. Per. com., 2001

[^114]: USAID/Peru, 2001, p. 81

[^115]: Ibid., p. 81

[^116]: Cuanto Institute, no date, p. 5.