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Recent contributions to the literature on the causes of tropical deforestation indicate that, under certain circumstances, agricultural intensification (i.e., raising crop and livestock yields) can accelerate farmers and ranchers’ encroachment on tree-covered land. We contend, however, that the linkage between intensification and habitat conservation is generally positive. Chilean experience during the 1980s and 1990s is a good example. Domestic and foreign demand for agricultural output increased substantially. But because of productivity improvements, agricultural land use fell; the forested portion of the national territory rose from 19 percent in 1990 to 24 percent in 1998. In contrast, large tracts of forests have been converted into cropland and pasture in Ecuador during the last two decades. Productivity-enhancing investment having been very deficient, agricultural land use increased at a 2 percent annual rate during the 1980s and continued to expand in the 1990s.

In August 1990, Cuba entered what has been called a ’special period in time of peace’ (), a severe economic crisis triggered by the disruptions in imports of oil and other raw materials from socialist countries. During the special period the Cuban government opened up virtually its entire economy to FDI, emphasizing a rich natural resource base, a well-trained and docile labor force, and a government partner that is willing to make deals that will result in substantial profit margins for foreign investors. This chapter examines Cuba’s development strategy during the special period, focusing on case studies of joint ventures in the tourism, nickel mining, and oil production sectors. It highlights the role of foreign investment in these sectors and sets out some of the environmental implications.