2. FOREST OWNERSHIP

Restitution and privatization of collectivized property is among the key issues in the economies in transition. This concerns also land property including forests which mostly have been state owned. In the Baltic states an important share of the forests has been in the hands of collective farms. Private forests have been almost unknown, including Poland, where most agricultural land has been in private hands.

Reprivatization of forest land is partly linked with justice (restitution of expropriated land) partly with the aim of creating viable family farms, which also need some forest land. The term privatization is often used loosely. E.g. in Slovakia it includes all non-state forests (like the church and municipalities).

It seems, however, that privatization cannot be pushed too far because of several reasons. First, the state and other public owners (municipalities, church, etc.) were important forest owners prior to The Second World War in many countries. The share of private forests ranged from 30% in Latvia to 70% in the Czech Republic. Thus, an important part of the forests are likely to remain in public hands even in case of restitution.

Second, there are fears that rapid privatization will lead to careless forest utilization by new owners, who often lack experience or act out of short-term profit motive. Most of these countries are still lacking organizations managing and controlling private small-scale forestry while these systems for state-owned forest have worked reasonably well (at least if judged by the fact that forest resources have constantly increased).

Third, in view of the multiple functions of forests (wood production, hunting, recreation, biodiversity) state ownership often seems a better alternative.

Forest policy has to meet a multitude of objectives, which are often conflicting. This favours heterogeneous ownership structure with an important share of publicly owned forests.

In Poland the state owned 82% of the forest land in 1993 (Table 2.1). There are over 1.4 million forest owners in Poland, which makes 1 ha of forest per owner. The Polish economy has undergone a radical change towards the market economy but in the forest sector the authorities have been reluctant to speed up privatization. This process is bound to be slow not only because of above mentioned considerations but also because of legal problems and structural changes in the agriculture.

The poor health of forests also requires that the role of the state in forest management is emphasized. Thus, according to Polish projections the share of private forests could ultimately reach no more 25% compared to 17% at present.

Table 2.1 Forest Ownership in Poland

In the Czech lands nearly 70% of forests were in privately owned, prior to The World War Two but subsequently they were confiscated. 96% of forests became state owned, while the rest were transferred to collective farms. Privatization and restitution began in 1991 and it is estimated that in 1995 private forests will account for 20% of the total. Municipalities and the church will regain their former possessions (Table 2.2).

In Slovakia the share of private forests was smaller than in the Czech lands, 34 % in 1930. Forest were nationalized in 1948, the reprivatization started in 1991. Extensive state control and ownership will be maintained and in order to prevent the splitting up of the forest area into small plots forest owners' associations are favoured.

Table 2.2 Forest Ownership in Czech Republic and Slovakia

In Hungary privatization of forest land is also progressing but a high share of state ownership (up to a half) will be maintained (Table 2.3). In Romania all forests were nationalized in 1948 but at present the official target is to return 8% of them to private owners.

Table 2.3 Projected Forest Ownership in Hungary and Romania

In Bulgaria 57% of forests were municipally and 19% privately owned before their nationalization in 1947. Private ownership of land became possible again in 1991 but the share of private forests is not likely to increase rapidly.

In Albania the forests have been state owned since 1944. Recently there have been proposals that small areas near villages be privatized but the general opinion is favourable to state-owned forests.

In Croatia the state owns 75% of the forests, the rest belonging mainly to private farmers possessing no more than 5 ha on average.

Slovenia is an exception to the general pattern as there small, private forests prevail. Some 290 000 owners posses over 2/3 of the forest land. The average size of a private forest is 2.7 ha but half of the plots are below 1 ha in size. Still, restitution of formerly nationalized forests is progressing and the share of private forest is further increasing.

Table 2.4 Forest Ownership in Croatia and Slovenia in 1990

Reprivatization of forest property is a long lasting, complicated process both legally and economically. Hundreds of thousands new forest owners may emerge in the countries in transition each possessing very small (1 – 2 ha) forest plots. E.g. in Slovakia the ultimate number of small forest owners is estimated at 300 000, to control one fourth of the total forest area.

Similar situations may arise in many other countries of the region. If the individual plots are very small the owners may prefer their recreational functions to commercial use.

If in the distant future the share of small forest owners rises to 1/3 or near 1/2 of the total forest area, industrial wood supply will be adversely affected. Jointly owned large forests could be one solution. This ownership form is being developed in Slovakia.

The weakening control of the forest services is one threat to sustainable management.