Examples of Forestry affected by public policy

The following sections detail examples from the survey where forestry is affected by other areas of public policy. The examples are ordered by policy group and the primary policy area involved in the effects.

Public policies establishing the institutional framework

Macro-economic (fiscal, monetary & public expenditure)

Number

Name

Affiliation

Department

Kari Keipi

Inter-American Development Bank

Country/ies

Area/region

Continent

Other countries with similar policies

Latin America

South and Central America

Income

Forest cover

Policy involved

Main policy area

High

Yes

Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density, also temperate oceanic, sub-tropical dry forest, Sub-tropical humid and tropical dry forest

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

-2

-1

Summary

Policies establishing rural credit facilities, which do not allow forest to serve as loan guarantee, have caused forests to remain a low interest investment, resulting in increased deforestation.

Policy name or reference

Supporting references, web sites, etc.

Number

Name

Affiliation

Department

Kari Keipi

Inter-American Development Bank

Country/ies

Area/region

Continent

Other countries with similar policies

Chile

South and Central America

Income

Forest cover

Policy involved

Main policy area

High

Yes

Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)

Forest/socio-economic classifications

Highland and mountain forest in a tropical or temperate region, also temperate oceanic and sub-tropical dry forest

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

Summary

Successful macro-economic policies were conducive to the positive business environment and market liberalisation. General obedience to the law in Chile also facilitated transparent incentive payments for afforestation.

Policy name or reference

Supporting references, web sites, etc.

Number

Name

Affiliation

Department

Gerard Buttoud

French Institute of Forestry, Agricultural and Environmental Engineering

Country/ies

Continent

Other countries with similar policies

Benin, Cameroon, Cote d'Ivoire, Gabon, Guinea-Bissau, Mali, Niger, Central African Republic, Chad, Burkina Faso, Republic of Congo, Equatorial Guinea, Senegal, Togo

Africa

Income

Forest cover

Policy involved

Main policy area

Low

Yes

Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density, also tropical shrubland and tropical dry forest

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

-1

Summary

Devaluation of the CFA Franc in 1994, decided at international level provides an example of a financial measure taken independently from the forest sector. The devaluation had a series of effects on timber production such as: 1. a decrease in the transformation rate during the first 3 years, 2. an increase of the sale of logs where the price was established in CFA Francs for export (all French speaking African countries except Gabon for okoumé and ozigo), 3. changes in competitivity between the main African producers. A positive impact was the long-term establishment of a more efficient means timber production based on economic imperatives. A negative impact was that in the short term the devaluation encouraged an increase in unregulated logging and created difficulties in timber processing which rationalised resource management would help. The rationale for the measure was to promote economic efficiency, however, sustainab le development includes more that economics and thus such measured may have negative impacts on social and ecological aspects. Additionally, such a measure may only have positive impacts if firms are governed by free market principles in an open market, however, most of the timber industrials in such countries are working inside an economic enclave having links with headquarters in Europe or Asia. The market is therefore intra-firm and not really open and the benefits from a financial measure may be limited as a result. Furthermore, most of the African producers are in poor competitive condition relative to Asian operators and suffer from the difficulties they meet in rationally adapting themselves to a changing market.

Policy name or reference

Supporting references, web sites, etc.

Number

Name

Affiliation

Department

Michel Laverdiere

FAO

FAOSAFR

Country/ies

Area/region

Continent

Other countries with similar policies

Zimbabwe

Africa

Income

Forest cover

Policy involved

Main policy area

Low

High

Yes

Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)

Forest/socio-economic classifications

Forest and tree vegetation in arid or semi-arid land, Tropical dry forest

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

-1

Summary

Two years ago The Government of Zimbabwe stopped subsidising fossil fuel. This was prompted by the poor economic situation that reduced government revenues considerably and the claim/justification that it was time to bring the price of petrol products to par with the higher prices in other SADC countries. The whole country felt the impacts but there were perverse effects on forest and trees that were centred mostly in large urban and peri-urban areas such as Harare and Bulawayo. As poorer urban dwellers could no longer afford kerosene, used for cooking and lighting a large proportion were forced to cut wood within their neighbourhoods. This resulted in increasing rates of deforestation in local parks and peri-urban woodland. This situation continues to this day as the cost of petrol products has continued to increase tremendously. The government did not initially take into account potential impacts on tree conservation and did not therefore provide measures to mitigate the problem. The World Bank Energy Project, which was launched early in 2000 aims to provide Zimbabwe with alternatives to fossil fuels such as an ethanol based gel. The project also included a forestry component dealing directly with the provision of extra wood sources through better management of existing urban and peri-urban woodland. The planning of the forestry initiative was at a workshop in May 2000. Experts from The World Bank, The Forestry Commission, The Ministry of Agriculture, The Ministry of Energy, FAO, and NGOs participated. A Forestry Commission committee was the created to design a detailed forestry proposal which was submitted to the World Bank. Since then, unfortunately, Zimbabwe has allegedly delayed its payments to the World Bank and the whole program has been suspended. Further details from Mr. Boris Utria working for the World Bank in Zimbabwe.

Policy name or reference

Supporting references, web sites, etc.

Number	Name	Affiliation					Department
5	Stephen Johnson	FAO					ITTO
Country/ies	Area/region	Continent			Other countries with similar policies
Asian timber exporting countries		Asia
Income	Forest cover	Policy involved		Main policy area
Low	High	Yes		Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)
Forest/socio-economic classifications
Lowland forest in the humid tropics with a high population density, also lowland forest in the humid tropics with a low population density
Scale of impact (-3 to +3)
Forest cover	Forest alteration	Management capacity	Forest product processors		Markets & demands	Forest products supply	Soil & water	Socio-economic effects
0	0	0	1		2	0	0	0
Summary
Currency devaluation in some Asian timber exporting countries led to royalty/tax avoidance. The system entailed selling wood in the foreign currency but reporting revenues to government in local currency at the same level as pre-devaluation. The objective of this policy was presumably to maintain economic stability and to support exporters in the face of devaluation in competing countries. For further information on import and export prices ITTO Market Information Services may be consulted.
Policy name or reference

Supporting references, web sites, etc.

Number

Name

Affiliation

Department

Jim Bourke

FAO

FOPH

Country/ies

Area/region

Continent

Other countries with similar policies

Russian Federation

Europe

Income

Forest cover

Policy involved

Main policy area

Low

High

Yes

Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)

Forest/socio-economic classifications

Temperate and boreal forest in an industrialised country in transition to a market economy,

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects< /FONT>

-1

Summary

Increases in rail freight rates in Russia following the collapse of the USSR led to road building programmes as markets became more involved in transport decisions and rail became less competitive relative to roads.

Policy name or reference

Supporting references, web sites, etc.

Number			Name		Affiliation					Department
7			Lennart Ljungman		FAO					FON
Country/ies			Area/region		Continent			Other countries with similar policies
Proportional to the ratio of civil servant's to manufacturer's wages?					Several/all
Income			Forest cover		Policy involved			Main policy area
Low			All		Yes			Public policies establishing the institutional framework: Macro-economic (fiscal, monetary & public expenditure)
Forest/socio-economic classifications
Wide ranging effects
Scale of impact (-3 to +3)
Forest cover	Forest alteration	Management capacity		Forest product processors		Markets & demands	Forest products supply		Soil & water		Socio-economic effects
-2	-2	-2		0		0	0		-1		-2
Summary
Low payment of civil servants aimed at increasing political support and reducing unemployment may induce corruption and lack of application of forest legislation in order that civil servants can make money privately.
Policy name or reference

Supporting references, web sites, etc.
Corruption and the Rate of Temptation: Do Low Wages in the Civil Service Cause Corruption? IMF Working Paper. May 1997; Reasons to be venal. Can government reduce corruption by paying more to public servants? The Economist, August 16th 1997

Privatisation/role of the state

Number

Name

Affiliation

Department

Morillio Morell

FAO

FONP

Country/ies

Area/region

Continent

Other countries with similar policies

Argentina

South and Central America

Income

Forest cover

Policy involved

Main policy area

High

Low

Yes

Public policies establishing the institutional framework: Privatisation/role of the state

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density, Subtropical humid, tropical moist deciduous and tropical dry forest

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

Summary

Economic liberalisation in Argentina has allowed investment in forestry from Chile which has a more highly developed forestry sector

Policy name or reference

Supporting references, web sites, etc.

Number

Name

Affiliation

Department

Morillio Morell/Carlos Carneiro

FAO

FONP

Country/ies

Area/region

Continent

Other countries with similar policies

Bolivia

South and Central America

Income

Forest cover

Policy involved

Main policy area

Low

High

Yes

Public policies establishing the institutional framework: Privatisation/role of the state

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density, also highland and mountain forest in a tropical or temperate region

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

Summary

Economic reform programmes and decentralisation in Bolivia (and other South American countries) have led to changes in the forestry sector. Law 1654 of Administrative Decentralisation devolved the decision making process to the provinces/communities thus creating a positive environment for sustainable forest management at the local level. This resulted in some difficulties at the local level in that there was a lack of skilled/trained staff in the Provinces. This highlighted problems of land/forest tenure and thus inhibited sustainable forest management.

Policy name or reference

Supporting references, web sites, etc.

Number

Name

Affiliation

Department

Kari Keipi

Inter-American Development Bank

Country/ies

Area/region

Continent

Other countries with similar policies

Colombia

South and Central America

Income

Forest cover

Policy involved

Main policy area

Low

High

Yes

Public policies establishing the institutional framework: Privatisation/role of the state

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density, also highland and mountain forest in a tropical or temperate region

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

Summary

DecentraIisation policies and development of regional institutions with dedicated financial resources contributed to improved forest management and reafforestation programs.

Policy name or reference

Supporting references, web sites, etc.

Number		Name					Affiliation			Department
11		Richard Owen					FAO			TCIL
Country/ies		Area/region					Continent			Other countries with similar policies
Costa Rica		Monteverde Cloud Forest Biological Reserve					South & Central America
Income		Forest cover		Policy involved			Main policy area
Low		High		Yes			Public policies establishing the institutional framework: Privatisation/role of the state
Forest/socio-economic classifications
Lowland forest in the humid tropics with a high population density,
Scale of impact (-3 to +3)
Forest cover	Forest alteration		Management capacity		Forest product processors	Markets & demands		Forest products supply	Soil & water		Socio-economic effects
1	1		1		0	0		0	1		1
Summary
Monteverde is a privately owned conservation area in Costa Rica which came into existence as a result of the government creating enabling policy environment. In 1972 under the threat of homesteading in the surrounding cloud forest a nature reserve was established. The Tropical Science Centre was receptive to these efforts and accepted institutional responsibility for ownership and management of the protected areas. An initial land purchase of 328 hectares formed the core of the Monteverde Cloud Forest Preserve. The Monteverde Cloud Forest Preserve depends on private funding to fulfil its goal of protecting tropical wildlife and habitats. Donations, large and small, are critical to the future survival of the Preserve. In 1975 the 554-hectare community watershed reserve, founded in the mid-60s by members of the Quaker community and named Bosque Eterno S.A., was annexed under an administrative contract to the Preserve. After the Preserve's creation, the Tropical Science Centre continued to secure the financial and human resources necessary to expand, consolidate, and properly protect and manage the Preserve's current 10,500 hectares.
Policy name or reference

Supporting references, web sites, etc.
http://www.cct.or.cr/monte_in.htm

Number

Name

Affiliation

Department

Oudara Souvannavong/Doug Williamson

FAO

FORC

Country/ies

Area/region

Continent

Other countries with similar policies

Mozambique

All

Africa

Income

Forest cover

Policy involved

Main policy area

Low

High

Public policies establishing the institutional framework: Privatisation/role of the state

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density, also Tropical dry forest

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

-2

-1

Summary

In Mozambique the policy of the government was to hand out concessions to cronies of the president rather than to dispense with them in a more competitive way. This often resulted in poor management or no management at all as the people who were given the concessions did not have the management capacity.

Policy name or reference

Supporting references, web sites, etc.

European Forestry Institute, Mozambique country report (http://www.efi.fi/cis/english/creports/mozambique.html)

Number

Name

Affiliation

Department

Jim Carle

FAO

FORM

Country/ies

Area/region

Continent

Other countries with similar policies

Cambodia

Asia

Income

Forest cover

Policy involved

Main policy area

Low

High

Public policies establishing the institutional framework: Privatisation/role of the state

Forest/socio-economic classifications

Lowland forest in the humid tropics with a low population density,

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

-1

-2

Summary

The finance ministry in Cambodia was unable to make sufficient revenues to finance forestry because of the high level of 'offtake' being perpetrated by those involved between forest products being sold and the revenue reaching the ministry. The revenues were allegedly being used to fund political parties. The lack of policy resulted in a lack of control of the country's natural resources and a 'free for all'.

Policy name or reference

Supporting references, web sites, etc.

Forest Policy Transition Paper for Cambodia. 1998 Co-ordinated by Associates in Rural Development.

Number

Name

Affiliation

Department

Luc Dubreuil

FAO

TCII

Country/ies

Area/region

Continent

Other countries with similar policies

China

Asia

Income

Forest cover

Policy involved

Main policy area

Low

Yes

Public policies establishing the institutional framework: Privatisation/role of the state

Forest/socio-economic classifications

Lowland forest in the humid tropics with a high population density, Sub-tropical and temperate mountain, temperate continental and sub-tropical humid

Scale of impact (-3 to +3)

Forest cover

Forest alteration

Management capacity

Forest product processors

Markets & demands

Forest products supply

Soil & water

Socio-economic effects

Summary

Farmer's wages in China were paid by the central government who also ran trees planting schemes which included costs associated with petrol, plastic bags, seedlings, etc. The labour and equipment costs were therefore excluded from the equation. The result was that despite the low productivity of the plantations they were nonetheless not only planted but were also profitable to the farmers.

Policy name or reference

Supporting references, web sites, etc.

Number		Name			Affiliation					Department
15		Mette Loyche Wilkie			FAO					FORM
Country/ies		Area/region			Continent		Other countries with similar policies
Philippines					Asia
Income		Forest cover			Policy involved		Main policy area
Low		Low			Yes		Public policies establishing the institutional framework: Privatisation/role of the state
Forest/socio-economic classifications
Lowland forest in the humid tropics with a high population density,
Scale of impact (-3 to +3)
Forest cover	Forest alteration		Management capacity	Forest product processors		Markets & demands		Forest products supply	Soil & water		Socio-economic effects
1	1		0	0		0		0	1		2
Summary
The Local Government Code decentralised power and The Indigenous Peoples’ Rights Act in the Philippines gave rights to people, mostly in upland and interior areas, to manage forest or to charge others for the right to use water emanating from their land. In other cases forest protection rights have been given to water users. The Local Government Code (1991) radically altered the institutional framework and development responsibilities at local government level. According to the local government code, Local Government shall "enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self-reliant communities and make them more effective partners in the attainment of the national goals instituted through a system of decentralisation whereby local government units shall be given more powers, authority, responsibilities, and resources." Below regional level virtually all Department of Agriculture staff have been transferred to the payroll of the province, city or municipality in which they were previously working and agricultural extension is now principally the responsibility of the Municipal Agricultural Offices. Unlike the Department of Agriculture the Dept of Environment and Natural Resources has not devolved many staff to the Local Government Units. The only Dept of Environment and Natural Resources staff who have been devolved to the Local Government Units are those staff who used to work on the Integrated Social Forestry Program. Their functions also include the management and control of communal forests with an area not exceeding 50 km2 and the management and control of small watersheds. The Indigenous Peoples’ Rights Act (RA No. 8371, 1997) recognises, protects and promotes the rights of indigenous peoples to their ancestral lands and domains, cultural integrity, self-governance and empowerment as well as human rights and the rights to maximum participation in the direction of education, health as well as other services. A Certificate of Ancestral Domains Title or Certificate of Ancestral Land Title constitutes the formal recognition. An estimated 12-16 million indigenous peoples live in the Philippine Archipelago. They are considered to be among the poorest and most disadvantaged social groups in the Philippines and illiteracy and unemployment rates are much higher among them than in the rest of the population.
Policy name or reference

Supporting references, web sites, etc.