In 2006, the US and Guatemala engaged in what was the largest debt-for-nature swap in history. The US government agreed to excuse $24.4 million – roughly one-fifth of Guatemala’s total debt to the US. In return, Guatemala promised to invest the money into conservation work over the next 15 years. Two conservation groups, Conservation International and Nature Conservancy, donated $2 million to the cause, while the US government covered the remainder of the forgiven debt. Such agreements are possible under the 1998 Tropical Forest Conservation Act (TFCA), which facilitates debt-for-nature swaps between developing democratic countries and the US. In response to concerns over deforestation and endangered species, Guatemala applied the money to conservation initiatives within four nature reserve areas, including the Maya Biosphere Reserve.
Contributed by Preston Schmitt
Course: Modern Global Environmental History
Instructor: Dr. Wilko Graf von Hardenberg
University of Wisconsin–Madison, US
- Lacey, Marc. “U.S. to Cut Guatemala’s Debt for Not Cutting Trees.” The New York Times (2006)
- “Successful Chapter in Guatemala Comes to an End.” States News Service. (2011).