By Monica Machicao and Daniel Ramos
LA PAZ (Multibagger) - Wildfires in Bolivia have burned through more than 10 million hectares (24.7 million acres) this year, mostly in the country's tropical east, smashing records for its worst-ever fire season and scorching an area the size of Iceland or Cuba.
The new figures released on Monday by non-governmental organization Tierra Foundation represent the equivalent of nearly 19 million American football fields. Fires in recent months have propelled Bolivia past devastating fire years in 2010 and 2019.
Santa Cruz, a wealthy farming region in the country's eastern lowlands near Brazil, has been the hardest hit, accounting for almost 7 million hectares of the total, followed by the nearby department of Beni, with 3 million hectares.
"What's happened in recent months in eastern Bolivia, and will continue to occur at least through October, is a disaster of a magnitude unprecedented in the country," Juan Pablo Chumacero, researcher at the Tierra Foundation, told reporters.
"This catastrophe is affecting the lives of thousands of households, farmers and Indigenous people, many of whom have been displaced due to the loss of their homes, crops and livelihoods, as well as contamination of air and water sources."
Dramatic images have shown Bolivians trying to rescue belongings from burning homes.
Government-shared numbers until September, the most recent available, tallied 4.6 million hectares of burned forest and 2.3 million hectares of grasslands. September was by far the worst month this year.
Data from Brazil's INPE space agency show that there have been 82,117 active fire outbreaks in Bolivia this year until Oct. 6, only 1,000 shy of the full-year record in 2010.
Bolivia's government declared a national disaster last week after demands from local authorities, community organizations and citizens for more forceful intervention.
Bolivia's fires have been exacerbated by drought and land clearances linked to booming cattle and grain production.
"2024 will be remembered as the year of the worst environmental disaster in Bolivia's history," added Gonzalo Colque, Tierra Foundation's director.
Analysis and Impact on Investments and Financial Markets
The wildfires in Bolivia have not only caused an unprecedented environmental disaster but also have significant implications for investments and financial markets. The destruction of millions of hectares of land, especially in key farming regions, can lead to disruptions in agricultural production, affecting global food supply chains.
Investors in industries such as agriculture, forestry, and environmental conservation may see fluctuations in their portfolios due to the impact of the wildfires. Additionally, companies operating in Bolivia or dependent on its resources may face challenges in the coming months as they navigate the aftermath of the disaster.
Furthermore, the negative publicity surrounding the wildfires could also influence consumer behavior and investor sentiment towards companies associated with deforestation or environmental degradation. This could lead to changes in stock prices and market valuations for affected companies.
In conclusion, the wildfires in Bolivia are not just a natural disaster but also a financial one with far-reaching consequences for investments and financial markets. It is crucial for investors to stay informed about the situation and consider the potential implications for their portfolios.