1050-C2

Shifts of Forest Policies in Selected Asian Countries[1]

Qiang Ma


Abstract

There have been significant economic, social and environmental developments in the Asian region during the last two decades. Many countries in Asia have experienced rapid economic development. Urbanization, industrialization, declining population growth and new techniques have relieved the pressures on land and to some extent on forests. Meanwhile, most countries in the region have put environmental and natural resources among the major concerns of national development. International conventions have had a significant impact on the forestry sector in most countries. Finally, decentralization and devolution of forest management have been included in the overall efforts to decentralize certain functions of government administrations.

Forest policies have changed during the past decade. The priorities of policies have shifted from obtaining direct economic benefit to ensuring the conservation of biological diversity, sustainable utilization of forest resources, ecological and environmental stability. Many countries such as India, the Philippines and Thailand, from net exporters of logs and sawnwoods have become net importers. Efficient forest product utilization, development of competitive forest industries based on sustainable wood sources and manufacturing of value-added products have been promoted by wood industry policies. The other significant change in national forestry policies that may be seen as a turning point, is the recognition of people's rights in managing forest resources and people's role in achieving sustainable forest development. Community forestry, private sector and local government are the main stakeholders that have been encouraged by national policies to get involved in forest management. Various incentives have been granted to promote forest plantations and trees outside forests in the private sector in order to develop alternative sources of raw materials for forest-based industries.

It is crucial to have proactive and forward-looking policies anticipating economic, social and environmental changes to guide the development of the forest sector.


Introduction

Most countries in the region have amended or revised their national forestry policies during the past decade. The increasing concern for the environmental functions of forests has stimulated a desire to divert forests away from wood production towards conservation and recreational uses. This has therefore required a large redirection of forestry policy in countries.

On the other hand, the recognition of people's rights and participation in managing forest resources and people's role in achieving sustainable forest development is the other significant aspect influencing current national forestry policies.

This paper analyzes and identifies the main shifts of forest policies during the past decades in the context of overall economic, social and environmental development in the region.

Impact of the overall economic, social and environmental development

Forestry is developed within the broader framework of national goals for social, economic and environmental development, especially those related to sustainable natural resource management, poverty alleviation, reducing population pressures, and encouraging people's participation in development. Meanwhile, forestry is dynamic and involves cross-sectoral participation while the issues affecting it are cross-cutting. Many decisions taken outside the forest and the forestry sector have far-reaching effects on the sustainability of forests and the long-term development of the forestry sector. National forestry policies are also affected by exogenous factors such as international conventions.

Regional economic development

During the last two decades, many countries in Asia have experienced rapid economic development. Based on the World Bank data on the eleven countries, the average GDP annual growth rates are in the range of 3.2% and 6.8% which are much higher than the world average of 2.6% during the past ten years,. Some of these growth rates could be even higher since they were influenced by the economic downturn in 1997 and 1998. Asia has been the fastest region in economic growth in the world. Meanwhile, the GDP per capita growth rates are in the range of 1.0% and 4.1%. This shows that GDP growth is higher than population growth.

The fast-growing economy stimulated industrialization and urbanisation. Countries have become less dependent on agriculture, even though a majority of the population still lives in rural areas and depends on agriculture as its main source of income. Agriculture value added as percentage of to GDP has decreased 5 percent during the last decade in the eleven selected Asian countries. Industry and services increasingly determine economic growth. Moreover, the overall proportion of the population living in rural areas has declined in all countries in the Asia and Pacific region. Furthermore, new techniques have created higher productivity in Agriculture. Urbanization, industrialization, declining population growth and new techniques have relieved the pressures on land and, to some extent, on forests.

Source: World Bank

Source: World Bank

The deforestation rate has slowed down during the past decade as an outcome of the fast-growing economy and of the shift from agriculture. The Global Forest Resources Assessment 2000 revealed that the rate of net decrease was slightly lower in the 1990s compared to the 1980s. Some Asian countries have made great efforts to combat deforestation in the1990s. For example, the average annual rate of deforestation declined from 42,000 ha in the period 1956-1992 to 17,000 ha in the period 1992-1999 in Sri Lanka. The reduced rate is primarily attributable to the completion of most of the large-scale agriculture expansion schemes. Most significantly, the forest area increased in Bangladesh and India, and remained roughly the same in Bhutan.

Environmental issues

Increasing environmental concern

In the 1980s or 1990s, most countries in the region began to put environmental and natural resources among the major concerns of national development. Maintaining a balance in nature by preserving and improving the environment; identifying and controlling all kinds of activities degrading the environment and ensuring environmentally friendly development of all sectors based on the concept of sustainable development, are all objectives of national environment policies.

The importance of integrating environmental considerations into the policies and development programmes of various sectors such as agriculture, irrigation, wildlife, forestry, energy, industry, mining, land use and human settlement, has been highlighted in national policies and development plans. There has been an increased awareness of the important roles of forests in the conservation of environmental quality by preserving soil and water resources and biological diversity. Protection and improvement of the natural environment including forests, lakes, rivers and wildlife, and compassion for living creatures are fundamental tasks of countries.

International conventions and agreements

All the selected countries in the region are signatories to a number of international conventions and agreements, and have participated in various international initiatives. These international conventions have had a significant impact on the forestry sector in most countries. India prepared the National Forestry Action Programme in 1999, which incorporates the agreed commitments related to C&I for SFM. A National Action Programme in line with the Convention to Combat Desertification (CCD) was prepared in 2001. In response to the Convention on Biological Diversity (CBD), a National Policy and Macro-level Action Strategy for conservation and sustainable use of biodiversity has been formulated. As a follow-up to UNCED, Malaysia has established a National Committee on the CBD to plan, co-ordinate and implement follow-up actions as required under the Convention, and formulated the National Policy on Biological Diversity in 1998 accordingly. In 2001, 186 Proposals for Action of the Inter-governmental Forum on Forests (IFF) were selected by a Working Committee and will be incorporated into Malaysian national forestry programs.

Decentralization and devolution processes

Decentralization and devolution initiated more than a decade ago in some countries in Asia have continued in the region over the past decade. Decentralization and devolution of forest management have been included in the overall efforts to decentralize certain functions of government administrations. Decentralization offers the potential for effective management and enhances the goal of sustainable development, particularly by providing more opportunities for local involvement in decision-making.

While decentralization is showing many positive signs of leading to more efficient and sustainable management, it carries potential risks. When rights and responsibilities are transferred to the local level, central government control and support are often reduced. Lack of accountability and institutional capacity on the part of local governments could result in breaches of authority.

Changes in forestry policies

Shifts in policy objectives and policy measures

From timber production toward environmental protection

During the 1960s and 1970s, forests in most of the Asian countries were mainly managed for timber production as a revenue earning resource, to some extend giving low priority to environmental values. Over the past decade or more, greater efforts have been made to protect and conserve natural forests. Since the late 1980s and early 1990s, the priorities have shifted from obtaining direct economic benefit to ensuring the conservation of biological diversity, sustainable utilization of forest resources, ecological and environmental stability.

The current Indian forestry policy (1988) aims "to ensure environmental stability and maintenance of ecological balance including atmospheric stability, which is vital for sustenance of all life forms, human, animal and plant". The previous Indian forestry policy (1952) focused on increased production of forestry goods, while stressing its ecological relevance. Malaysia endorsed its forestry policy in 1978, focusing on the vital role of forests for the welfare of the community and national economy through the concept of multiple uses. The policy was amended in 1992 in response to the increased concern of both the local and world communities for the importance of biodiversity conservation and the sustainable utilization of genetic resources, and the role of local communities in forest development.

The current policy objective has had a significant impact on efforts undertaken towards achieving SFM. Henceforth, the effectiveness of forest management will be based not just on the forests' capacity to produce wood in perpetuity, but more on how forests are managed to balance ecological, social and environmental functions with their economic importance.

Increasing protected forest

In the past decade, most countries have set aside considerably more forests as protected areas for biodiversity conservation and environmental protection Thailand declared a total area of 230,370 km2 or about 56 percent of the existing forest areas as national conserved forests in 1999. India continues to increase protected areas from 24,000 km2 in 1975 to 156,000 km2 in 2002. Bhutan has set aside close to 35% percent of the total land area as protected areas. Effective management of protected areas remains a special challenge while more protected areas are put on paper.

Imposition of logging ban

During the late 1980s and 1990s, a number of countries such as the Philippines, Sri Lanka, Thailand and Pakistan adopted the stronger measure of comprehensive logging bans on natural forests outside established protected areas. The implementation of logging bans in those countries is recognition of the environmental values of forests, but is also a response to the urgent problem of rapid deforestation and forest degradation.

A regional study (Durst 2001) revealed that the most immediate impact of logging restrictions would presumably be a decline in the production of industrial roundwood in the countries with logging bans. Increases in sawn timber imports caused by the implementation of logging bans are clearly evident in the Philippines, Thailand and Vietnam. International trade opens the possibility of shifting environmental damage and deforestation to other countries or regions. Hence one country taking actions to protect and conserve its natural forest resources can easily export harvesting problems to another supplier country.

Changes in forest product trade

From exporter to importer

By limiting roundwood production to a sustainable level and increasing demand on forest products, imports of wood products have been encouraged and increased considerably during the last decade. According to FAO statistics, imports of roundwood, sawnwood and wood based panels increased from 74 million m3 to 86 million m3, i.e. 17%, between 1991 and 2001 in the Asian countries as a whole, while exports of these products decreased from 43 million m3 to 33 million m3, i.e. 23%, during the same period. Many countries such as India, Philippines and Thailand have become from net exporters, net importers of logs and sawnwoods.

During the period 1985 to 1988, annual domestic timber production in Thailand was around 2 million m3, which met domestic demand. Timber imports rose significantly between 1990 and 1997 peaking at 4 million m3 in 1994. This dramatic rise was a consequence of the logging ban and fast economic development. Since 1990, imported timber has met almost all the domestic timber demand.

Increased export of processed products

The production and export of furniture and plywood have increased even though roundwood production has declined in some countries. Furniture and plywood are playing an increasingly important role in the export of wood products. Malaysia's export of major wood based products has risen steadily over the last decade, by 60.7 percent. In 2001, furniture products and plywood together accounted for more than half of total exports. On the other hand, the total roundwood production decreased by about 50% between 1990 and 2000. The increased export of processed products not only provides concession holders with a long-term interest in forestry and creates added value and employment in the forestry sector, but also contributes to the balance of timber trade.

Shifts in wood industry policies

Efficient forest product utilization, development of competitive forest industries based on sustainable wood sources and manufacturing of value-added products have been promoted by wood industry policies. Wood supply in most countries in the region is expected to decline gradually; wood size and species have changed as well. Consequently, forest industries are expected to adapt to the changing scenario through the advancement of technology, a reduction of production costs and waste, as well as a reorientation of product promotion and subsequently acceptance by consumers. Hence,both efficiency in production and changes in consumption patterns and an increase in utilization efficiency are required.

Restructuring forest industries is another focus of policy on the declining wood supply in some countries. There is a significant gap between industrial capacity and the potential supply of raw material from natural forests. Based on its operational capacity, the Indonesian wood industry requires 37.4 million m3 of roundwood per year, while the officially recorded average annual domestic roundwood production has been around 22.5 million m3 over the last five years. In Thailand, many sawmills had to close down, and many others have been downsized or do not operate at full capacity.

Institutional changes

Greater involvement of stakeholders' participation

Most forest land in most of the Asian countries is state owned. The national government - forestry agencies controlled decision-making in forestry management. People were not allowed to share responsibility with the government in managing forest resources. Conflicts among forestry agencies, NGOs and civil society could not be solved in an efficient, equitable and administratively practical manner. The other significant change in national forestry policies over the last decade that may be seen as a turning point is the recognition of people's rights in managing forest resources and people's role in achieving sustainable forest development.

The National Forestry Policy of India in 1988 introduced certain changes oriented towards local and indigenous people. The 1997 Thai Constitution stipulates public rights in the protection, conservation and management of natural resources. The NepaleseForest Act of 1993 and the Forest Regulations of 1995 aimed at managing forestry through decentralization and the participation of individuals and groups.

Community forestry

One major form of people's participation in forest management is called community forestry. Its overall objectives include promoting strong partnerships between local communities and the forestry departments, social justice and the improved well- being of local communities and sustainable management of forest resources. Success has been achieved on a certain scale in some countries.

The community forestry (CF) development program is the first to be prioritized and the most successful specific forestry policy in Nepal. During the past fifteen years The CF network has encompassed six to seven million people - about one-third of the total population of the country and more than 60 percent of the rural population. In India, affirmation of the national policy for people's participation in forest management is expressed in the Joint Forest Management (JFM), which emphasizes the creation of an enabling environment, empowerment and capacity building of village communities and local forestry officials. The government of the Philippines has adopted community-based forest management as the national strategy to ensure sustainable development of the country's forestland resources.

Private sector

Participation of the private sector in forestry management is another way to achieve the policy goal of people's participation, for example, Nepal has a leasehold forestry policy implemented through the general-purpose leasehold and the special leasehold forestry programme in 2002. The government may hand over a degraded national forest area to a lessee (any individual, industry or community) for a period of up to 40 years renewable for another 40 years subject to the adherence of the lessee to the leasehold plan agreed upon between the government and the party.

Local government

The forest sector in many countries of Asia has experienced the decentralization and devolution of administrative functions and power from central to local government over the past decade. In Indonesia, decentralization strives to ensure inter-regional equity in the distribution of development resources. The spirit of decentralization in Indonesia is denoted in the regional governance act of 1999 and the regulation of government and provincial authority in 2000. As a consequence, devolution of forest management is being implemented. The change from a centralized to a decentralized system in managing forest resources requires institutional restructuring and capacity building.

Tree planting moving to private sector

Various incentives are granted to promote forest plantations and trees outside forests in the private sector to develop the alternative sources of raw materials for forest-based industries while at the same time ensuring ecological stability, productivity, sustainability in use of forestlands. The sources of timber supply are moving from natural forest to trees outside forests and forest plantations.

Trees outside forests

The national forest policy (1995) of Sri Lanka highlighted that growing trees on homesteads, and other agroforestry activities, would be promoted as the main strategy to supply wood and other forest products to meet household and market needs. Incentives for tree growing have been identified as a key instrument of the national forest policy to promote tree growing by local people and rural communities, and to facilitate the harvesting and transport of forest products grown on private lands. Currently, 90% of the total timber produced in the country comes from non-forest timber resources. The promotion of tree plantations by the private sector has been recognized for a long time as an option to narrow the gap between supply and demand in Pakistan. More than 90% of the fuelwood requirements are met by trees outside forests in Pakistan

Forest plantations

Many countries issued forestry rules and orders to encourage the private sector and local farmers to develop forest plantations. Up to now, more than 60% of the world's forest plantations are located in Asia.

While there have been some successes and plantation areas have considerably increased, programs are not proceeding at a desirable pace in some countries because of the lack of effective incentives, access to forestlands, tenure arrangements, and planting technology for the establishment of industrial forest plantations. Since the 1970s around 500,000 ha of denuded forestlands have been declared plantation areas for private individuals and business entities in the Philippines. Only 124,000 ha have been developed and planted up to now. The Royal Forest Department of Thailand, with the support of the Royal Thai Government, launched a forest plantation promotion project in 1994 to encourage and support private landowners and local farmers to establish forest plantations of commercial tree species covering 1.28 million ha within 12 years. By the year 2000, forest plantations established under this program covered an area of only160, 707 ha, well below target.

Conclusions

Population growth is still a key factor challenging the future of forests in the region. Even though the population growth rate has slowed down, by 2020, it is expected to increase to 4.6 billion. This would enhance the pressure on forests to provide wood and other products as well as environmental services. This will also increase the need to expand agriculture resulting in forest conversion in some countries. This change will result in several other changes as well.

Forest policies have been reactive, falling behind the broader social and economic changes. Most policy revisions have attempted to catch up with the changes. To be in the forefront of change requires a more proactive approach. This would necessitate substantial effort to understand the future direction of social and economic development, and identifying the appropriate role the sector could play. Making the policies relevant at all times is thus a major challenge that the sector has to confront and this will require intense interaction with other sectors.

References

FAO. 1998. Asia-Pacific forestry towards 2010. Report of the Asia-Pacific forestry sector outlook study. Food and Agriculture Organization of the United Nations, Rome.

FAO. 2001. Global forest resources assessment 2000. FAO Forestry Paper 140. Food and Agriculture Organization of the United Nations, Rome.

FAO. 1993. Forestry policies of selected countries in Asia and the Pacific. FAO Forestry Paper 115. Food and Agriculture Organization of the United Nations, Rome.

Enters, T. and Leslie, R.N. (eds.), 2002: Forest policies and forest policy reviews. Information and Analysis for Sustainable Forest Management: Linking National and International Efforts in South and Southeast Asia. Workshop Proceedings No. 2. Food and Agriculture Organization of the United Nations, Bangkok.

Durst, P.B., T.R. Waggener, T. Enters and L.C. Tan (eds.), 2001. Forest out of bounds: impacts and effectiveness of logging bans in natural forests in Asia-Pacific. RAP Publication: 2001/08. Food and Agriculture Organization of the United Nations, Bangkok.

Enters, T., Durst, P.B. and Victor, M. (eds.): Decentralization and devolution of forest management in Asia and the Pacific. Rap Publication 2000/1. Food and Agriculture Organization of the United Nations, Bangkok.


[1] This paper is prepared based on 11 country studies supported by the EC-FAO Partnership Programme: Information and Analysis for Sustainable Forest Management: Linking National and International Efforts in South and Southeast Asia. The 11 countries are: Bangladesh, Bhutan, Cambodia, India, Indonesia, Malaysia, Nepal, Pakistan, Philippines, Sri Lanka and Thailand.