2019-08-24 The Economist Latin America

12 The EconomistAugust 24th 2019

Lettersarewelcomeandshouldbe addressedtotheEditorat TheEconomist,TheAdelphiBuilding, 1-11 JohnAdamStreet,LondonWC 2 N 6 HT Email:[email protected] Morelettersareavailableat: Economist.com/letters

Letters

Preserving the Amazon You misrepresented the posi- tion of the Brazilian government on the protection of the Amazon rainforest (“Death- watch”, August 3rd). In fact, combating deforestation is an unwavering commitment of the government. The single largest operation ever conduct- ed to combat illegal deforestation in the Amazon took place recently, on June 5th. It brought together 165 federal environmental agents, who dismantled a criminal organi- sation specialising in illegal logging and timber trafficking. Brazil has reduced deforestation in the Amazon by 72% over the past 15 years. We have regenerated 9.4m hectares of vegetation (more than the total area of Scotland) and replanted forests in another 2m hectares. As the report rightly indicates, Brazilian agriculture is a clear example of how environmental protection and eco- nomic development can go hand in hand. Only 30% of Brazilian territory is dedicated to agriculture and ranching, while in European countries these figures usually range between 45% and 65%. The deforestation data published in June come from a satellite system, deter, the main purpose of which is not to generate compiled deforestation rates, but to release deforestation warnings to guide the work of forces on the ground. It is a crucial instru- ment, which will be preserved, but one that is not suitable for this kind of analysis. Defor- estation rates are published once a year through a different satellite system, prodes. Finally, as an additional layer of oversight, the Brazilian government is buying a new system of high-resolution satellite images to be collected on a daily basis. This will be another tool in the fight against deforestation. fred arruda Ambassador of Brazil London

I read your report while bounc- ing down logging roads in the Madre de Dios region of the

PeruvianAmazon.Duringmy visitI personallytooka chain- sawtoan80-year-oldcumaru tree.Butforourharvestingthat treeeventuallywouldhave stoppedgrowing,stopped metabolisingcarbondioxide intooxygenanddecomposed, releasingitscarbonandmeth- ane.Instead,thetree’slumber willbeturnedintouseful productsanditscarbonse- questered.Moreimportantly, theseconcessionswillprotect theforestforupto 80 years. Leavingthismanagedparadise, I sawfirst-handwhathappens toforeststhataren’tsustain- ablyharvested.Theyare burnedtothegroundtomake wayforfarmsandmines. Sustainableforestryisour bestopportunitytopreserve thelungsofourplanet,by ensuringthattheAmazonis sustainablycommercial.We shouldbeconsumingmore woodproducts,asI’msuremy fellowsubscriberstotheprint editionwouldagree. w.garnerrobinson Chiefexecutive RobinsonLumberCompany NewOrleans

Canweallstoppretendingthat humanitycaresaboutthe environment?Therealityis thattheorganisingprincipleof civilisationismaximising consumption.Whenconsum- erismrunsupagainstthe environment,consumerism will,intheend,win.The soonerpublicpolicyfacesup tothisfactthebetter.Sadly,the onlyAmazonmostpeoplecare aboutistheonethatoffers same-daydelivery. danielmauro Chicago

Factor investing Just because a good idea be- comes well-known, or widely accepted, doesn’t make it any less effective. Buttonwood (July 20th) raised the question of whether investment factors such as value, momentum, size, quality and minimum volatility may lose their long- term effectiveness because of overcrowding. Yet a large body of academic work, including from six Nobel-prize winners,

hassubstantiatedthebroad andpersistentreturnsgenerat- edbytheseinvestmentstrat- egiesovertime. Inpublishedresearch papers,wehaveestimated factorcapacitybyexamining assetsmanagedinthosestrat- egiesandweighingtransaction costs.Ourfindingssuggest thereisamplecapacitytomake factorinvestingeffectivefor sometimetocome.Basedon ourresearch,theamountof moneyallocatedtofactor strategiesisa fractionofthe $26trnintotalmarketcapital- isationofthebroaderS&P 500 Index(asofJuly31st).Factor- investingstrategieshavethe capacitytoabsorbmorethan 100 timestheamountthatis investedtoday.Webelieve factorstrategiesgloballymay reachatleasthundredsof billionsand,inmanycases, trillionsofdollarsofassets beforeweconcernourselves withcapacity. andrewang Headoffactorinvesting BlackRock NewYork Note:linkstothepaperscited inthislettercanbefoundat: http://www.economist.com/letters

Speechisnotviolence ToniMorrisonwasa great writer,butherstatement, “Oppressivelanguagedoes morethanrepresentviolence; it isviolence”isoffthemark (“Onmalignwords”,August 10th).Infact,it contradictsthe FirstAmendmentofthecon- stitution,whichreliesonthe distinctionbetweenoppres- sivespeechandviolence, protectingtheformerbutnot thelatter.Morrisonwasright thatoppressivelanguage should“berejected,altered andexposed”,butthegovern- mentmaynotpunishit. felicianimueackerman Professorofphilosophy BrownUniversity Providence,RhodeIsland

E-scooters make you unfit Charlemagne mused about how the electric scooter is making European cities car- free (August 3rd). But a study of

e-scooters in Barcelona by the automobile club found that 38% of the people that took to them used to walk, 10% used to cycle and 33% used to travel by public transport. Only 10% replaced their car or motorbike with an e-scooter. The overall effect of e-scooters might be negative, as people stand on them instead of walking or cycling and they take custom away from public transport. ignacio martin velasco Paris

A bridge too far Bartleby has an unerring ability to detect the nonsense emanating from hr(July 13th). At my job operating a draw- bridge I am expected to set performance goals relating to “core competencies.” These include building relationships, oriented outcomes, creativity and innovation. Curiously, they do not include safely operating the 900-tonne piece of mechanical infrastructure entrusted to my care. At my annual review, learning agility is defined in terms of “an awareness of changing work- place trends”. That such skills are valued more highly than not crushing pedestrians says something. kristian williams Portland, Oregon

Alternative indicators “Weak foundations” (July 20th) reported that declining sales of decorative paints foretold the downturn in 2008. In the early days of the consultancy I work for we used to ask one of the partners how his family’s dry-cleaning business was doing. When people tighten their belts, we noticed that the first thing they do is to post- pone the dry-cleaning of their smart suits and dresses. simon blakey Bradford, West Yorkshire

2019-08-24 The Economist Latin America

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