The Brazilian austerity plan that helped calm world markets has riled environmental groups from São Paulo to Washington. To satisfy the conditions of a pre-approved International Monetary Fund loan of $41.5 billion, the Brazilian government must serve up some $24 billion in spending cuts in its 1999 budget and another $80 billion by 2002. Environmental groups claim the new budget, if passed by Congress, will gut environmental protection. They point in particular to over $60 million in cuts planned for the Pilot Program to Protect Tropical Forests—the vast majority of which involve donations from industrialized countries. Brazilian officials offered conflicting explanations for why international donations would be included among the government budget cuts. Environmental groups, meanwhile, called this and other planned reductions illogical... [Log in to read more]