The Cerrado biome (200 million ha) is second only to the Amazon biome in size, covering 25% of the country's territory, and containing one third of Brazilian biodiversity. Located in central Brazil, the Cerrado is not only under the influence of four other major biomes, including the Amazon and the Atlantic Forest, but it also contains the headwaters of most of the major river basins in the country.

The Cerrado has been severely impacted by agriculture (mainly cash crops) and extensive cattle ranching, which have converted a large portion of the biome at a very fast pace. In 1994, an estimated 50% of the total Cerrado area had been deforested, of which 65% was converted to pasture, 15% to agrobusiness plantations, and 20% was opened but not used. At the current rate of conversion (which is far higher than deforestation rates in Amazonia, at about 14%), it is estimated that 72.9% of the Cerrado will be deforested by the year 2000. If the area occupied by existing protected areas, inaccessible areas, rivers and lakes is taken into account, this percentage would comprehend the entire remaining area of the Cerrado.

From the socio-economic standpoint, the region presents very low levels of income and highly inequitable land distribution patterns, constituting one of the poorest areas of the country, known in Brazil as the "poverty corridor".

Goias is the only state of Brazil located entirely within the Cerrado biome, with an area of 340,166 square km. The Chapada dos Veadeiros National Park, with a total protected area of 65,514 ha, is located in the north-eastern part of the state, one of the very few large remaining blocks of relatively intact Cerrado.

Fundo Mundial para a Natureza is committed to demonstrating the powerful linkages between conservation of natural resources and long-term, equitable socio-economic development, through the implementation of ICDPs-Integrated Conservation and Development Projects. ICDPs have the dual objective of conserving biodiversity, while, at the same time, contributing to improved standards of living of local people living in these biodiversity rich areas. Fundo Mundial has developed 6 ICDPs in Brazil, four in Amazonia and two in the severely threatened Atlantic Forest.

To define and implement an employment and income generating programme, which has a sustainable basis and can benefit the poorer sections of the population in the target area (the proposed Biosphere Reserve).

To facilitate implementation of a network of protected areas (PAs) to ensure the protection of the biodiversity of the Cerrado in the region, and allow for the economic use of natural resources on a sustainable basis.

• To develop a model of protected area management, based on these principles.
• To develop an ecotourism model for the Cerrado region.
• To organise and implement dry flower and other economically viable, ecologically sustainable extractive activities.
• To identify and implement a third economically viable, low impact economic alternative for local people who are not involved in ecotourism and extractivism.
• To encourage the involvement of major stakeholders.
• To consolidate the Chapada dos Veadeiros National Park.
• To create a direct use protected area to ensure conservation of water sources and to allow for sustainable flower extraction.
• To create private reserves (RPPNs) and develop mechanisms for their implementation.
• To develop a process for the creation of the Kalunga Reserve.
• To develop a process for the establishment of the Chapada dos Veadeiros Biosphere Reserve.
• To document adequately, and to disseminate project results.