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The IADB’s Forest Investment Attractiveness Index - The results of the index for 2006 and review on the methodology
Unformatted Document Text:  Chart 5: Average scores on INTER sectorial level for the individual indicators 3.4. Results for the INTRA sub-index Regarding the results on INTRA sectorial level, an important distinction has to be made with respect to the results on SUPRA and INTER sectorial level. While in the latter ones, each indicator for all countries can reach the maximum score of 100, in the INTRA sub-index the indicators “Forest Resource”, “Domestic Market” and “VFL” have a country specific maximum score, which depends on the countries physical and economical characteristics and for many countries this maximum possible score is just about 50 or even less. Taking this into consideration, it is easy to understand why Brazil, given its physical and economic size in comparison to the rest of the Latin American countries, has on one hand by far the highest potential (close to 100), and on the other hand also the highest score of about 60. If the results are interpreted a bit differently by comparing achieved scores versus the maximum score achievable the situation is quite different. In this case, countries like Chile and Uruguay show performances much closer to their potential maximum than Brazil does for example. The average score in this category is just about 25, which is due to the fact that there are many small countries in Latin America, especially in Central America and the Caribbean. However, it is also important to mention that the performance of indicators “Favorable Support” and “Adverse Actions”, which are independent on the country’s physical and economic size, is far from being optimal. This means that forestry businesses in Latin America lacking in many cases important support in the area of financial support and taxes, but also in the area of permission and

Authors: Kilian, Bernard., Pratt, Lawrence. and Daley, Sanola.
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Chart 5: Average scores on INTER sectorial level for the individual indicators
3.4. Results for the INTRA sub-index
Regarding the results on INTRA sectorial level, an important distinction has to be made with respect to the results 
on SUPRA and INTER sectorial level. While in the latter ones, each indicator for all countries can reach the 
maximum score of 100, in the INTRA sub-index the indicators “Forest Resource”, “Domestic Market” and “VFL” 
have a country specific maximum score, which depends on the countries physical and economical characteristics 
and for many countries this maximum possible score is just about 50 or even less. Taking this into consideration, it 
is easy to understand why Brazil, given its physical and economic size in comparison to the rest of the Latin 
American countries, has on one hand by far the highest potential (close to 100), and on the other hand also the 
highest score of about 60. If the results are interpreted a bit differently by comparing achieved scores versus the 
maximum score achievable the situation is quite different. In this case, countries like Chile and Uruguay show 
performances much closer to their potential maximum than Brazil does for example.
The average score in this category is just about 25, which is due to the fact that there are many small countries in 
Latin America, especially in Central America and the Caribbean. However, it is also important to mention that the 
performance of indicators “Favorable Support” and “Adverse Actions”, which are independent on the country’s 
physical and economic size, is far from being optimal. This means that forestry businesses in Latin America lacking 
in many cases important support in the area of financial support and taxes, but also in the area of permission and 


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