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Proceedings of the Second International Symposium on Fire Economics, Planning, and Policy: A Global View
Fire and Economics: Understanding the
Amazonia’s Fire Arch1
Tatiana Schor,2 Arnaldo Carneiro Filho,3 Carlos de Almeida
Toledo4
Abstract
Looking down at the Amazonian region using satellite images a “fire arch” that approaches
the Amazon River can be seen. Due to this visual effect the pattern of deforestation of
Amazonia is usually considered a “fire arch” that approximates the Amazon River through the
southwest of Brazil. The arch has been monitored since 1988, and estimates of deforestation
areas have been an important instrument for fire prevention policies and national and
international public opinion. The verified deforested areas in the years of 2000-2001 have
been 1,4 times bigger than the original estimates. What has caused such a big increase in the
fire and consequently in deforested areas in the Amazonia is not only a national Brazilian
preoccupation but also a worldwide concern. Environmental scientists’ and policy makers are
concerned in understanding why the actual deforested area is bigger than the estimate, why
there was a fire increase in some areas and if the fire arch pattern can be still considered as a
dominant fire structure in the Amazonian Region.
Fire in the Amazon Region used by traditional population and also related to economic
activities such as opening of pastures, logging and cereal plantations. In fact, fire is usually
considered the cheapest technology for cleaning a forest area for further economic activity.
But, can the fire registered in the satellite images be correlated with economic factors
registered in the macroeconomic indicators?
This paper is interested in approaching this question by means of analytically relating the
different deforestation indices and the fire images with the local, regional and national
macroeconomic indicators.
Making use of the satellite images of the fires in the Amazon Region, areas that had an
important fire increase will be chosen as case studies. The period of study chosen will be
during the Brazilian Real Economic Plan, 1994-2002, due to the fact that during the initial and
final years of this economic plan a great increase in fire areas in the Amazonian Region was
registered.
The case studies chosen will be analyzed by means of local (the municipalities which
most caught fire), regional and national economic indicators searching for possible
explanations of the fire patterns which caused the important deforestation increase during the
years of 2000-2001 and discuss the possible future changes in the Amazonian “fire arch”.
An abbreviated version of this paper was presented at the second international symposium
on fire economics, planning and policy: a global view, 19–22 April, 2004, Cordoba, Spain.
2
Economist, Teacher of Environmental Economics and Scientific Methodology,
Environmental Education, SENAC-São Paulo and doctorate student in the postgraduate
program in Environmental Science, University of São Paulo, Brazil.
3
Coordenator of the Geoprocessing Laboratory at the Instituto Nacional de Pesquisa
Amazônica, Manaus, Brazil.
4
Economist, Teacher of the History of Economic Thought at Santanna University and
doctorate student in the Geography Department of the University of São Paulo, Brazil.
1
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GENERAL TECHNICAL REPORT PSW-GTR-208
Session 3B— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
Introduction
Fire management involves a large scope of analytical and methodological tools.
Economic theory has not been influenced by the complicated debate aroused by the
contemporary necessity to protect wildland remnant from fire. Fire management
agencies have long looked at economic indicators and observed many relationships
between economic activities and fire. These relationships vary enormously due not
only to the different economic activities but also due to the historical processes
involved in the occupation of the wildland. This paper analyses the commonly called
Amazonia’s Fire Arch by means of integrating the economic theory with the local
historical processes of fire in Brazil and more specifically in the Amazonian frontier.
This exploratory analysis hopes to contribute not only to the understanding of the fire
in the Amazon but also to the discussion of wildland fire in economic theory and
environmental management.
The Amazonian Fire Arch
Looking down at the Amazonian region using satellite images a fire arch that
approaches the Amazon River can be seen. Due to this visual effect the pattern
of deforestation of Amazonia is usually considered a deforestation arch that
approximates the Amazon River along the eastern and southern edges of the
forest (Cochrane, M. A. and others. 2002:288). This deforestation arch has a
visual effect when seen through satellite images of a concentration of heat
focuses delineating a heat arch or more specific terms: a fire arch. This fire
arch approaches the Amazon River from the southeast and in spite all efforts
of controlling and monitoring the fire done by the Brazilian governmental
agencies (IBAMA and more specifically PROARCO) has increased in the past
years, such as can be seen in figure 1.
The arch has been monitored since 1988, and estimates of deforestation
areas have been an important instrument for fire prevention policies and
national and international public opinion. The verified deforested areas in the
years of 2000-2001 has been 1,4 times bigger than the original estimates. As
can be seen in figure 1 above the concentration of heat focuses has increased
considerably in 2002 in comparison with 2000.
What has caused such a big increase in the fire and consequently in
deforested areas in the Amazonia is not only a national Brazilian
preoccupation but also a worldwide concern. Environmental scientists’ and
policy makers are concerned in understanding why the actual deforested area
is bigger than the estimate, why there was a fire increase in some areas and if
the fire arch pattern can be still considered as a dominant fire structure in the
Amazonian Region due to the fact that there has been an increase in important
fire focuses out of the arch territory (such as the big forest fires in Roraima,
north of the Amazon River).
Fire in the Amazon region is used by traditional population and also
related to economic activities such as opening of pastures, logging and cereal
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Proceedings of the Second International Symposium on Fire Economics, Planning, and Policy: A Global View
Session 3B— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
plantations. In fact, fire is usually considered the cheapest technology for
cleaning a forest area for further economic activity. In order to approach the
fire arch debate in an analytical perspective it is necessary to understand the
position occupied by the Amazon region in the Brazilian economic activity.
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GENERAL TECHNICAL REPORT PSW-GTR-208
Session 3B— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
Figure 1—Concentration of Heat Focuses in Brazil 2000 and 2002
The Legal Amazon: the history of territorial occupation.
To better understand the Amazonian Fire Arch it is necessary to define what is meant
by Amazonia. The Amazon River has an estimated drainage basin of 6,600,000 Km2
(Wood, C.H. and Skole, D.1998:72) occupying an area that includes land in Brazil,
Bolivia, Columbia, Equador, Peru and Venezuela. Brazil is divided politically into
five geographical regions: south, southeast, northeast, central and north. All the states
of northern Brazil – Roraima, Amazonas, Pará, Acre, Rondonia - occupy what is
usually referred to as Classical Amazonia (Moreira, I.A.G. 1989; Vesentini,
J.W.V.1996). These states do not take into account the watershed of the Amazon
River Basin. In order to congregate all states that are related physically to the
Amazon River Basin with the perspective of regional planning the Brazilian Federal
Government created a law (a first version in 1953) that configured a region
designated Legal Amazon which consists of all the Northern States plus Mato Grosso,
Tocantins and Maranhão west of the 44th Meridian.
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Proceedings of the Second International Symposium on Fire Economics, Planning, and Policy: A Global View
Session 3B— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
Figure 2— The North of Brazil: Legal Amazonia
The occupation of this region began in the XVIII century through the now
called State of Pará mainly for the extraction of forest products such as timber, cocoa,
vanilla and aromatic resins with Indian slave labor force (Prado, C. 1965:71). In the
context of a Portuguese colonial system this region was considered peripherical thus
the Indian slavery and not African originated like most of the country. Since this
period the concern about the geopolitical importance of the river system has kept the
region under constant military supervision. In the XIX Century an important
economic activity started: the Rubber Cycle – 1870-1910. During this period land
ownership was extended right through Acre State. The activities related to the rubber
extraction were an important demographic attraction. Many rubber farms were
established changing completely the forest format especially in the States of Pará,
Amazonas and Acre. The rubber crisis, due to the plantation of rubber trees in
Malaysia at the beggining of the XX century, generated an economic crisis which left
behind abandoned rubber-tree plantations and many rubber collectors who had
migrated from the northeastern Brazil to work in this economic cycle (Fausto, B.
1999). These rubber collectors continued cultivating the rubber-trees but increased
subsistence farming activity (roça). This type of traditional agricultural activity
usually is based in cleaning a small area with fire and then planting different types of
manioc and other family consumed products. An activity long learned with the
Indians. The family economy after the rubber-crisis was strongly based on the
cultivation of the roça, some rubber extraction and the collection of forest products.
This is still the case in many places in the Legal Amazon, especially in Acre and
Amazonia.
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GENERAL TECHNICAL REPORT PSW-GTR-208
Session 3B.— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
During the Second World War the Brazilian government promoted a migratory
politics trying to re-activate the rubber production. Many workers coming from the
northeastern states were convoked as rubber-soldiers. During this period many old
rubber-tree farms were re-established and some new ones set up. Again in a short
period of time due to an important demographic and economic pressure the forest
was transformed. The forest was transformed not only in its ecosystem, but mainly in
its demographic and land property structure. The region started to live a crescent
social tension associated with many people without land and large plots of
unproductive land. The social tension was strongly due to the concentration of land in
the hands of few.
The geopolitical question concerning the Amazon region is strongly related with
the conception that the region, although occupied by small families’ landholders,
suffers of a demographic emptiness and a lack of productive investments that could
occupy the region productively. So during the period of 1964-1970 important
investments in infrastructure, such as the Transamazonian Highway, were made
using World Bank and the Interamerican Bank credits. These investments were also
directed to large land property (400.000 to 700.000Ha) with emphasis in cattle
raising (Gremaud, A.P. and others, 1997). In this context, the social conflicts already
existing were accentuated. During the period 1970-1974 the construction of highways
continued motivating the occupation of the wildlands around these infrastructures.
These highways configured a new pattern of territory occupation: the fish-bone
structure (Moran E. and others. 2002). This new territorial occupation is so called due
to the images seen from above: the deforestation occurs around the main highway
and the secondary roads that give access to the farms that surround the main road.
These farms were government colonization projects of small farmers on 100-hectare
plots along both sides of the Transamazonian Highway (Wood, C. H. and Skole, D.
1998:73). During this period these colonization projects were responsible for most of
the fire and subsequent deforestation in the Amazon, especially in the oriental part of
the Amazon in the so called deforestation arch. The role played by the small farmers
in the process of deforestation in the Amazon is well know and extremely
complicated to resolve:
Although much, if not most, of the deforestation that took place in the Amazon
was carried out by medium- and large-scale ranchers, small farmers were also
implicated in the process, as evidenced by the typical cycle of land use. Small
farmers commonly clear 2 to 3 hectares of land, which they cultivate for as long as
fertility remains high. In most areas soil fertility is depleted in 2 to 3 years,
necessitating the clearing of more land. Since there are approximately 500,000 small
farmers in the region, these figures imply a demand for additional 500,000 hectares
of cleared land per year (Homma and others 1992:9). Crude as these estimates may
be, they nonetheless point to the magnitude of existing internal demand for land
clearing, even if the migration of small farmers to the Amazon were to stop
altogether. (Wood, C. H. and Skole, D. 1998:74)
During the 70´s this pattern was accentuated with privileged credit for large
properties, governmental colonization projects and the construction of the highways
that were never completed. This pattern is largely based in extensive cattle raising,
until 1995 land for cattle raising with relation to the total of agricultural land in the
Amazon was 81,5 percent (IBAMA, 2003). The typical cycle of land use perpetuated.
The government stopped financing these projects and the large cattle raising
farms during the 1990´s but the occupation of the Legal Amazon became
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Proceedings of the Second International Symposium on Fire Economics, Planning, and Policy: A Global View
Session 3B.— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
autonomous and the extensive cattle raising activity became economically viable
without subsidies of the government (Margulis, S. 2003). The interruption of the
fiscal and financial subsidies that where predominant in the 70´s and 80´s, considered
the main causes of the deforestation of the Legal Amazon did not generate the
expected results. The fire and deforestation monitoring by the National Institute of
Spatial Research (INPE – Instituto Nacional de Pesquisas Espaciais) did not permit
the formulation of public policies which would prevent fire and subsequent
deforestation. In this sense, the causes of occupation and deforestation in the Legal
Amazon during the 1990´s need a better understanding. Margulis (2003) in a report
to the World Bank entitled Causes of deforestation in the Brazilian Amazon suggests
that the real process of occupation and deforestation has to do with the following
elements: (1) The agents of the deforestation have short planning horizon and base
their activities in the mining of forest nutrients (2) cattle raising in the Amazon has
small revenue and its persistence can only be explained by the subsidies or credits
from the government that sustain speculative gains (3) small producers are important
agents in the deforestation process (4) logging is one of the main causes of
deforestation (5) roads are also causes of deforestations and not the consequence of
the high potential of the agriculture in the region (6) soybean plantation has expanded
rapidly in the barren lands (cerrado) putting pressure on the expansion of the
agriculture frontier towards new areas. The elements presented do in fact congregate
the heritage of the frontier expansion and economic activities in the Amazon making
clear that the land use pattern, strongly molded by the economic activities, are the
main causes for the persistence of the deforestation arc and impressive fire arch.
Figure 3— The Amazonian Arch of Deforestation
The persistence of the fire arch
So that the fire in the Legal Amazon can be adequately discussed it is necessary to
turn explicit the uses of the burnt areas. It can be assumed, in accordant to the
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arguments expressed above, that the use of fire represents the advance of the
agricultural frontier, in other words, the augmentation in quantitative terms of land
used in the country. The expansion of the economic usage of agricultural land has as
a classical explanation in economic theory as David Ricardo’s land rent theory
(Ricardo, D. 1996:Chap.2). Even though the ricardian theory of rent seems to fit
perfectly into the argument it is necessary to weave some commentaries about this
concept and the critiques to which it was been subjected. Not doing so would make
Ricardo’s argument rather naïve two centuries latter.
David Ricardo comprehends rent as that portion of the produce of the earth
which is paid to the landlord for the use of the original and indestructible powers of
the soil (1996:45). Due to the unquestionable experience of environmental
degradation in the begging of this century (XXI´s) the use of the term indestructible
must be rethought. Alternatively to Ricardo’s conceptualization of rent we can
consider an interesting formulation of Karl Marx. Marx when criticizing Ricardo
comments that when the material standpoint is considered, as use value, and not as
social form, land is a means of production not produced (1981:964). This formulation
is interesting for understanding wildland fire and forest deforestation in two aspects.
Firstly, it considers that these means of production not produced are not replaced
by the revenue received by the landowner. In the same way as the market which the
existence (that is not a result of planning) precedes the formulations of the economic
science (its theoretical understanding) the use of the natural resources (here identified
as land) also precedes its theoretical understanding. The consequence of this
incomplete understanding is the possibility that the destruction of the (natural)
resources, necessary for the reproduction of society, happens without the possibility
to control it. There is no doubt that in terms of agriculture the substitution of the
means of production not produced by means of production produced has made a
quick advance: the conversion of forest into agricultural land by means of the use of
artificial resources such as pesticides and fertilizers. In this sense, there is a problem.
It is not known exactly all the necessary things for the reproduction of the nonproduced resources used by society. This problem gains an important dimension
specifically when dealing with the role played by the tropical forests in the
maintenance of the climatic patterns, biodiversity and other environmental aspects.
This problem must be considered seriously.
This takes us to the second interest point of the formulation made by Marx: the
social form. Marx’s standpoint, know as radical, puts into question the historically
determined possibilities of economic organization of the reproduction of society.
Without having to take over the normative part of the author’s argument, society
should reflect about the character of the economic organization, and, in this sense, its
territorial dynamic expansion.
In his elaboration of the theory of absolute rent, amplifying Ricardo’s land rent
theory (restricted to rent that he denominates as differential), Marx (returning to
Adam Smith) discusses the role of land monopoly for society. His emphasis, that
possesses a clear political character (revolutionary), is about the consequences of this
monopoly on the value of the reproduction of the working force, associated to the
creation of a structural surplus of workers - relative surplus population (Chapters 25
and 33 of Capital, Book 1).
In relation to the argument constructed in this paper it is interesting to note how
this dynamic interacts with the existence of the tropical forest inside of an
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Proceedings of the Second International Symposium on Fire Economics, Planning, and Policy: A Global View
Session 3B— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
underdeveloped country marked by a strong colonial heritage. The dynamics
described in the item The Legal Amazon of this paper contradicts, relatively, the
thesis defended by Marx in the 33th. Chapter of The Capital The Modern Theory of
Colonization. In this chapter, the author argues that the existence of available land for
subsistence farming makes unviable the use of employment on salary basis. When the
expression relatively is used the intention is not only to remember the slavery past,
but is above all to remember that until today it is possible to encounter slaves in the
Legal Amazon (Martins, J. S. 1997).
It is impossible to comprehend the expansion of the occupation of the Amazon
without taking into consideration the role played by land property. It was presented
above the land use cycle; this same cycle can be seen in a much tenser and violent
expression. The social conflicts due to illegal properties and the expropriation of
small farmers due to the existence of these false documents plays an important role in
the deforestation and the use of fire in the region. This process of expropriation is
surely one of the factors of the expansion of the deforestation arch in the Amazon.
Strengthen with these property titles and usually with armed militias the grileiros
(land-grabbers) expulse the small farmers. These in order to survive penetrate into the
forest occupying wildland by means, initially, of fire. This is one important way, not
only in terms of natural resources but especially in terms of social conflict, that the
fire and deforestation arch approximates the Amazon River. This is the image seen
by the satellites: the heat of the Amazon on fire.
Conclusion
It seems that the predominant tendency in the Legal Amazon, as has been discussed
above, is the expansion of the cattle raising and soybean plantation. The advance of
these economic activities in Amazonia, and in Brazil, responds to strong internal and
external demands, specially since the crazy cow crisis.
It is important to remember, as has been discussed above, of the role played by
the government by means of subsidies and credits for the large farms directed to
extensive cattle raising. If this command is now being carried out by the private
initiative, such as suggested by Margulis, it means that the command is now the
market allocation. If this is the case, the logic of the expansion of the agricultural
frontier must be analyzed in this perspective.
Presented these considerations we can now turn back to the propositions of
Ricardo’s land rent. Land rent would be, for the author, the surplus proportioned by
differentials in costs, due to the advantage of fertility and localization of the land
used in relation to those land plots that the agricultural production provides only
normal profits. What defines the occupation of a new stripe of land is an increase in
price due to an increase in demand that makes viable these stripes that were
deficitary.
In this sense, the occupation of wildland would be determined by the surplus
provided by its use. In case this surplus stays beyond the normal profit, the land plot
would be abandoned. The consequence is that the occupation of an additional stripe
of land would depend in the surplus provided by the use of a determined area.
Ricardo affirms that the increase in the land rent is always due to the increase in
richness of a country and of the difficulty to produce food for the increasing
population, generating revenues in the most productive stripes. In the period of
USDA Forest Service Gen. Tech. Rep. PSW-GTR-xxx. xxxx.
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GENERAL TECHNICAL REPORT PSW-GTR-208
Session 3B— Understanding the Amazonia’s fire arch —Schor, Filho, de Almeida Toledo
increase of heat focuses such as shown in figure 1 (during the years 2000-2002) there
was a regional increase in the price of land due not only to the crazy cow crisis,
which augmented the demand for cattle raising activities, but also due to an increase
of soybean plantations. It can also be asked if the increase of the fire arch is a direct
consequence of the high capital investments in the soybean and cattle productive
network or if it was an indirect effect of this process such as suggested by Margulis.
The expression indirect suggests the perpetuation of the land cycle use. This land
cycle use, as an expropriation dynamics, means that the people who lived in the area
that now is incorporated to this productive network have been pushed forward,
occupying the wildland by means of fire. Anyway, Ricardo’s argument provides a
good explanation for the problem treated above.
The existence of the fire arch that corresponds with the deforestation arch, even
after the state stimulus for the occupation of the Amazon has ceased, seems a
function of demand. Such stimulus, due to the nature of the market economy, is
difficult to be controlled, especially in a situation that regional studies about the area
are limited. And nothing can be said about the existence of coherent policies towards
the region. Even the creation of an effective fire monitoring structure such as the
PROARCO, which monitors daily the fire arch in the Legal Amazon, in such
extensive region of difficult access has the tendency to function merely as a
palliative. The solution of the problem of preservation of wildland and its unknown
resources needs to be related to the social problem hidden behind the heat focuses
seen in the satellite images.
By means of this exploratory analysis alternatives for the problem of fire
monitoring and planning can be thought. The necessity of a theoretical approach does
not restrict itself to the normative answers suggested by the authors cited above. It
also shows the necessity to re-elaborate the economic theory in order to incorporate
new problems such as the fire dynamics. The theoretical answers given by Ricardo
and used to understand contemporary problems can not be totally sufficient because
the reality analyzed is not totally clear. Anyway, it provides a good insight to an
insipient debate that can take theory to new normative proposals.
In this sense, the analysis of the Amazonian fire arch by means of incorporating
the classical economic theory provides a different standpoint not only for the theory
and regional territorial understanding but also provides new elements in the fire
monitoring, planning and environmental management debate.
References
Cochrane, Mark A. and others. 2002. Investigating positive feedbacks in the fire dynamic of
closed canopy tropical forests. In WOOD, Charles H. and PORRO, R. (eds)
Deforestations and Land use in the Amazon. University Press of Florida, Florida,
USA.
Fausto, Boris. 1999. História do Brasil. 7 edition. EDUSP, São Paulo, Brazil.
Gremaud, A. P. and others. 1997. Formação econômica do Brasil. Editora Atlas. São Paulo,
Brazil.
Prado Junior, Caio. 1965. História econômica do Brasil. Editora Brasiliense, 9 edition, São
Paulo, Brazil.
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Margulis, Sergio. 2003. Causas do desmatamento da Amazônia Brasileira. Relatório ao
Banco Mundial, Brasília, Brazil.
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to the existence
of these
false
documents
an important
in
Washington, USA.
the deforestation
and the use of fire in the region. This process of expropriation is
surely one of the factors of the expansion of the deforestation arch in the Amazon.
Strengthen with these property titles and usually with armed militias the grileiros
(land-grabbers) expulse the small farmers. These in order to survive penetrate into the
forest occupying wildland by means, initially, of fire. This is one important way, not
only in terms of natural resources but especially in terms of social conflict, that the
fire and deforestation arch approximates the Amazon River. This is the image seen
by the satellites: the heat of the Amazon on fire.
Conclusion
It seems that the predominant tendency in the Legal Amazon, as has been discussed
above, is the expansion of the cattle raising and soybean plantation. The advance of
these economic activities in Amazonia, and in Brazil, responds to strong internal and
external demands, specially since the crazy cow crisis.
It is important to remember, as has been discussed above, of the role played by
the government by means of subsidies and credits for the large farms directed to
extensive cattle raising. If this command is now being carried out by the private
initiative, such as suggested by Margulis, it means that the command is now the
market allocation. If this is the case, the logic of the expansion of the agricultural
frontier must be analyzed in this perspective.
Presented these considerations we can now turn back to the propositions of
Ricardo’s land rent. Land rent would be, for the author, the surplus proportioned by
differentials in costs, due to the advantage of fertility and localization of the land
used in relation to those land plots that the agricultural production provides only
normal profits. What defines the occupation of a new stripe of land is an increase in
price due to an increase in demand that makes viable these stripes that were
deficitary.
In this sense, the occupation of wildland would be determined by the surplus
provided by its use. In case this surplus stays beyond the normal profit, the land plot
would be abandoned. The consequence is that the occupation of an additional stripe
of land would depend in the surplus provided by the use of a determined area.
Ricardo affirms that the increase in the land rent is always due to the increase in
richness of a country and of the difficulty to produce food for the increasing
population, generating revenues in the most productive stripes. In the period of
109
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