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A commodity boom has helped pull millions out of poverty across South America over the past decade. It has also unleashed a new scramble for oil, minerals and cropland that is accelerating deforestation and fueling a new wave of land conflicts from Colombia to Chile. The land and the forests are poorly regulated and protected leading to illegal plundering of resources which end up deteriorating and damaging the environment. This article is also a good example of negative externality of consumption and how demand can indirectly increase the damage inflicted on the environment. Since the amazon rainforest is only protected in some places and not in others (and the protected places are still open to the public), it is a common resource that is constantly being violated and reduced.

Brazil raised tariffs on 100 sectors last October to defend is declining industrial base, with fees of up to 25pc on machinery, iron and steel, plastics, chemicals, paper and wood products. It is now pursuing a full-blown "industrial policy" under its Plano Brasil Maior, with tax concessions for those who build plant locally.

Trade protectionism could hurt global growth and undermine economic reforms in developing countries, the world's top three economic organisations have warned. The warning came in a letter signed by the leaders of the World Bank, International Monetary Fund (IMF) and World Trade Organisation (WTO) and sent to leaders of the world's major industrial nations, who were meeting in Paris.