WHAT DOES THIS MEAN? I'm doin geography revision, but what do they mean by this???

Question

Profits from selling resources can be used to bring more development to a relatively poor country. For example, the tax a country raises from the sale of rainforest resources can be used to build schools and hospitals.

What does tax mean? Who has to pay this tax? How can you raise tax? Maybe I'm just being stupid, but can you rephrase the top paragraph, thanks.

Answer 1

you cut a tree in Amazon and sell it to US, you have to pay 10% of the sale price to Brazilian government (that's where Amazon is).

Then Brazilian government uses the money to buy industrial machinery, so they can make clothes instead of cutting and selling trees. Clothes are easier job, and pays more than timber, so you have development.