Profor is a multi-donor trust fund supported by:

This document is a product of the PROFOR Secretariat. It does not necessarily reflect the views of PROFOR’s donors.

Program of Work and Financial Reporting-CY2008

(completed January 2009)

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TABLE OF CONTENTS

Table of Contents i

Overview of the PROFOR Portfolio 1

Developing Programmatic Support 1

Streamlining Administrative Processes 1

Improving Quality Monitoring 2

Communications and Knowledge Management 2

Portfolio Achievements and Impacts 3

Knowledge Synthesis 3

Informing Policy Debate: National Level 5

Informing Policy Debate: International Level 6

Networking and Coordination 6

Budget and Funding Projections for PROFOR 8

Leveraged Funds 9

Staffing 9

Annex I. Overview Chart of Activities According to Thematic Area 10

Annex II. Activity Reports for 2008 16

Livelihoods 16

Forest Resource Access and Livelihoods 16

Piloting of Poverty-Forest Linkages Toolkit 19

Private & Community Forestry-Developing Livelihoods on basis secure property rights in S.E. Europe 28

Forest Enterprise Information Exchange (FEINEX) : A pilot in India as part of the Forest Connect Initiative 32

Forest Connect: Developing a toolkit to facilitate support for forest SMEs 35

Strengthening the value chain for indigenous and community Forestry operations 40

Policies and Incentives for Miombo Management 44

Governance 46

The Role of Informal Institutions and Forest Governance 46

Institutional Choice and Recognition in Forestry: Effects on Formation and Consolidation of Local Democracy 49

Reforms for China’s Collective Forests: Analytical Support on Tenure, Rural Institutions, Forest Policy and Regulation 52

Enhanced Financing Alternatives for SFM 54

The Next Generation of Certification of Ecosystem Markets 54

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Designing A Framework for Carbon Payments for Afforestation/Reforestation in Small Scale Forest Plantations in Mozambique: A Contribution Towards A Forestry Climate Strategy For Southern Africa 57

Preparing for REDD in dryland forests: Investigating the options and potential synergy for REDD payments in the Miombo Eco-region 62

Analysis of the NLBI on Financial Needs and Available Resources 65

Analysis of Forest Land Use Options for Reducing Carbon Emissions from Deforestation and Degradation in Indonesia 67

Cross-Sectoral Cooperation 70

Measuring Biodiversity and Forest Conservation Production and Livelihood Outcomes in Multifunctional Agriculture: Forest Landscape Mosaics 70

Analyzing Paths to Sustainability in Indonesia: Smallholder Livelihoods and Adaptation Strategies at the Forest Edge 73

Knowledge Management and Networking 77

Mapping Emerging Ecosystem Service Markets Matrix 77

Global Forest Leaders Forum 79

Developing Certified Forests, Forest Products and Markets for China: International Conference 82

Cameroon Sector Policy Reform Report 84

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PROFOR in 2008

Overview of the PROFOR Portfolio

Following on the outcomes of the 13th Conference of Parties (COP) of the UNFCCC in Bali in December 2007, the past year saw impressive international advocacy and consensus-building regarding addressing climate change, and for the first time, consideration of reducing emissions from deforestation, sustainable forest management, reforestation, afforestation, and forest and land degradation, adaptation, technology development and transfer, and provision of financial resources in support of developing countries’ actions. The international community (to include donors, the World Bank and UN agencies) has focused much attention on developing mechanisms to generate and manage new resources, and ensure that all the values of forests are maximized.

The PROFOR Secretariat have remained involved in these processes, in order to ensure, going forward, their relevance and added value as the international financing for SFM landscape evolves. Meanwhile, 2008 has been a year of strong growth for PROFOR: activity commitments more than doubled from $1.2 million yearly to $3 million for the fiscal year, with the areas of Livelihoods (with 7 activities) and Innovative Financing (with 7 activities) being the leading thematic areas. For the year, the PROFOR portfolio comprised 21 activities under implementation. Although many activities are relevant to more than one thematic area, for indicative purposes based on their predominant focus, we consider that they are distributed according to thematic area is as follows: livelihoods - 7; governance - 3; innovative financing - 5; cross-sectoral cooperation - 2 and knowledge management - 4. Twelve activities closed over the year.

Developing Programmatic Support With the Advisory Board’s backing at the last meeting, this year the Secretariat invested much time in developing a new programmatic window to support World Bank regions’ work plan priorities that fit with PROFOR’s priorities. The objectives were several: 1) to better promote PROFOR’s objective and existing analytical work among Bank sectoral staff and managers, 2) to advance the cross-sectoral considerations of sustainable forest management by bringing in social development, agricultural and watershed staff into programmatic discussions and 3) to create cross-fertilization of knowledge of sectoral work across regions. The result was a robust demand for support from all regions, with 15 potential activities identified, 13 of which are finalizing their concept descriptions for a total of $1.7 million in commitments. This compares with six projects in support of World Bank regions over the course of 2008. Seven of the newly identified activities have predominantly cross-sectoral benefits, although clearly are also relevant to PROFOR’s other thematic areas.

Streamlining Administrative Processes This year, the Secretariat has sought to simplify and standardize the administration of activities. This has included streamlining Concept Notes and Activity Completion Reports with each other; implementing the donors’ desire to have budget reporting better reflect cost categories, amount and origin of co-financing, and duration of each PROFOR activity. The Secretariat is developing online mechanisms for requests for, and reporting back on, PROFOR funding. An operations analyst has also identified, to start in CY 2009, to continue progress on these trends.

Rationalizing Trust Funds: Alignment of PROFOR and FLEG: At last year’s meeting, PROFOR donors expressed a desire to see consolidation of PROFOR and the Forest Law Enforcement and Governance Initiative, mentioning that cumulative contributions would not decrease. Over the course of the year, the PROFOR and Forest Law Enforcement and Governance (FLEG) teams spent a significant amount of time analyzing the merits of an alignment of the two trust funds and how this could be operationalized. The analysis pointed to many benefits and virtually no downsides to an alignment. The team identified revising PROFOR's

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operational guidelines to reflect the alignment as most effective at this stage, with the option of further institutionalizing this in the post-2010 administrative agreement if deemed necessary. A preliminary revision was shared with the donors in mid-July and their feedback was incorporated. The final revisions were shared with donors in early January 2009.

Improving Quality Monitoring This year PROFOR Secretariat played a pro-active role in reviewing the quality of PROFOR products. Along with experts in the field, Secretariat staff were actively involved in reviewing proposals and providing technical inputs as well as defining suitable intermediate and final products, and sharing feedback on knowledge management components of selected activities. All intermediate and final products received from activity proponents were closely reviewed by the Secretariat and experts within the Bank and feedback was provided for inclusion. One example of a deliverable that included PROFOR feedback was the Occasional Paper from the Center for International Forest Research (CIFOR): Tenure Rights and Beyond: Community Access to Forest Resources in Latin America, a deliverable of the Forest Resource Access and Livelihoods activity. As an example of ensuring quality at the design phase, the secretariat worked with two overlapping proposals from Indufor and a joint International Institute for Environment and Development (IIED)/CIFOR one to maximize the outcomes. The latter process resulted in the agreement that Indufor would work from the results of IIED’s project (summarizing lessons of the project’s contribution to a forestry climate strategy for Southern Africa) to prepare a “climate strategy report”. The needed collaboration throughout the implementation of IIED’s activity and in the dissemination afterwards was clearly stipulated in Terms of Reference.

Communications and Knowledge Management In 2008, a major communications undertaking was the support given to the Global Forest Leaders Forum (see Networking and Coordination further below) which could only be successful if strong and balanced stakeholder and leadership participation took place. An active communications part in the Forum also helped to correct some Indigenous Peoples’ criticism of the World Bank at the conference, which could have undermined the outcomes of the participatory process. Communications also lent support to the development of the programmatic window, which had a strong information-sharing component. It also played a critical role in the networking and coordination which is described further below (in Portfolio Impacts and Achievements). There were several occasions for PROFOR to contribute to knowledge-sharing events over the course of 2008, and using outside gatherings to raise PROFOR’s profile. These include FAO's Asia-Pacific Forestry Week (April 21-25, Hanoi); Global Forest Leaders Forum (September 16-17, Washington); IUCN World Congress (October 6-10, Barcelona); Swiss Intercooperation's Forests, Landscape and Governance Workshop (October 29-30, Interlaken); and the CPF's Forest Day on sidelines of COP 14 (December 6, Poznan). This year, specific activities with a knowledge-sharing objective included the completion of the Ecosystem Marketplace Matrix (carried over from last year), the Cameroon Sector Policy Reform Report (carried over from last year), the Developing Certified Forests, Forest Products and Markets International Conference and the Global Forests Leaders Forum.

Secretariat-led KM. At the last meeting, it was agreed that as the World Bank organizes its forestry work and instruments further, PROFOR should play an important role as interface between climate change discussions and sustainable forest management. We tackled this objective by initiating a knowledge product that summarizes various PROFOR-funded land tenure studies ((specifically the CIFOR Honduras, China Tenure Reform, and the Brazil Land Administration studies) but with a specific focus on their relevance to sustainable implementation of REDD initiatives.

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Publication highlights from 2008 include the finalization of the Poverty-Forests Toolkit Case Studies and Synthesis, publishing the Financing Flows And Needs To Implement The Non-Legally Binding Instrument On All Types Of Forests. Work began and publishing the Poverty-Forests Linkages Toolkit., for which the final version incorporating the piloting phase was delivered in October 2008. Web. Because of security breaches at some of the World Bank’s more prominent sites, this year the World Bank mandated that websites for all World Bank-managed trust funds would need to be transferred to World Bank servers. For the PROFOR site, this process began in the second half of 2008 and has hampered our ability to update the site. The transfer should be finished by March 2009. The site will be able to maintain its independence and image branding but technical management of the site will need to be transferred to Bank information technology staff.

As mentioned before, PROFOR is also using the web to streamline its administrative processes and relations with activity proponents. Development of a special password-protected section for donors is also near completion. Here donors would be able to access their own agreement documents and consult activity reports.

The number of monthly unique visitors continues to grow, with the year’s average being 3,294 unique visitors per month.

Portfolio Achievements and Impacts

During the 2006 Advisory Board Meeting, it was recommended that PROFOR focus it analytical work on four areas:

- synthesizing and building upon an accumulation of knowledge, - informing policy debate at the national level, - informing policy debate at the international level, and - playing a networking and coordinating role among the forestry community (inside and outside the Bank). - developing innovative tools While complete details of each activity are included in the project summaries in Annex III, here we would like to highlight the impacts we have had in the above four domains.

Knowledge Synthesis Adaptation Study. The impacts of extreme climate events on natural systems and in turn the economy have been making headlines. The consequences of climate change are becoming more apparent daily, with potentially severe impacts on forests and livelihoods especially at lower altitudes in seasonally dry regions. Projected changes include gradual replacement of tropical forest by savannah-type vegetation forms with arid-land vegetation gaining prominence. This translates into significant biodiversity loss, lower incomes from agricultural and forest products, and increased rural hunger. The loss of such safety nets has significant social cost. Given the fact that an increasing proportion of the world’s forests are being owned and/or managed by communities, it is vitally important to support these forest-dependent peoples in their efforts to manage forest ecosystems to enhance the resilience of their livelihoods to climate change, maintain carbon forest stocks and increase carbon sequestration levels. PROFOR has chosen this area as its flagship activity, aiming to (i) improve understanding of the actual and potential role forests and trees play in climate change adaptation; (ii) mainstream policy relevant findings

Average of total monthly visitors2002-2008

542807

1,3921,877 2,067

2,680.50

3,294

2002

2003

2004

2005

2006

2007

2008

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into key policy processes and strategies (e.g., sector policy dialogue, CAS and PRSP); and (iii) explore mechanisms for private financing to stimulate tree-based adaptation strategies and climate sensitive forest management To date the work has included: review of national action plans for adaptation, and development of a methodological framework that examines the role of trees and forests in local adaptation strategies (focusing on the incremental risk associated with climate change). The latter part of this work builds on methods and approaches developed by partner organizations (e.g., IUFRO) and piloted within the Bank. Proposed outputs include: • Diagnostic tool for tree-based adaptation strategies (understanding when and how trees can be used, the

benefits and costs, and policy implications) • Assessments from the application of the diagnostic tool in the selected countries • Country-level state of knowledge briefs and policy briefs • Contributing data to existing database on adaptation strategies (e.g., World Bank climate change portal) It is expected that through an improved understanding of tree-based adaptation strategies in rural landscapes from this activity, tree-based adaptation strategies will be integrated into policy discussions in the selected countries (e.g., NFP, CAS and/or PRSP as relevant) and that climate change adaptation pilots could be integrated into Bank activities in selected countries Large-Scale Land Acquisition—Inventory, Policies, and Implications. Acquisition to large areas of land for production of agricultural commodities or provision of environmental amenities (but excluding mining) by large investors for use or ownership has recently attracted considerable interest. The sudden upsurge in interest has generated considerable challenges for many of the Bank’s client countries, especially in Africa, due to weak and fragmented institutional structures, shortages of technical capacity, and lack of readily available guidelines. Experience demonstrates that the stakes are high: cases where large-scale land acquisition undermined good governance, contributed to significant social tensions, and resulted in long-term and often irreversible shifts in countries’ structure that were not conducive to broad-based economic growth and poverty reduction are well documented.

To assist client countries who will be confronted with land acquisition requests and to provide guidance on how to deal with these in the short and medium term, PROFOR—in partnership with the World Bank’s Agriculture and Rural Development Department—is initiating an analytical study with several objectives:

Quantification: Information currently available on this issue is mostly based on rumors and press reports that have not been validated officially. To be able to identify broad trends, data on actual and pending land transfers, together with coordinates and a basic characterization of the projects involved, will be collected from responsible institutions in some 30 countries where investment in large-scale agriculture has surfaced as an important policy issue.

Policy review: Policies to deal with large scale acquisition of land (use) rights and the institutional structures to implement them are in many cases still rudimentary and not conducive to dealing with investment proposals in a transparent, objective, and authoritative way. A review of policies and institutional arrangements in the 30 study countries will help identify gaps and highlight realistic risks which can help improve outcomes in this regard.

Models and examples of financial and economic evaluation: Having investors provide information on a set of key economic parameters at an early stage could help screen out ill-considered speculative proposals, and minimize administrative overload and facilitate more detailed analysis of serious proposals. Also, rigorous financial and economic evaluation of proposed investments will be important to realistically assess risks, design contracts that provide incentives for all participants to help make programs successful, and allow quick checking of compliance. By conducting economic analyses as well as (proposed) contracts for a range of sample projects, the proposed activity will not only generate a database that can be drawn upon but also develop formats and manuals that can be applied on a broader basis.

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Social and environmental impact analysis: Ensuring that existing rights (especially secondary ones) are protected and externalities properly taken into account can make an important contribution to projects’ long-term sustainability. However, in situations with weak capacity where land rights are not formalized or demarcated on the ground, this is a significant challenge. To help, the activity will identify and analyze the extent to which good practice has been followed in existing projects. This will provide the basis for improvements and tentative conclusions on the expected impact of better adherence to such standards.

The proposed activity will provide a list of projects from official sources as well as an assessment of the policy framework, for each of approximately 30 countries. This information will then be used to determine whether sufficient information is available to proceed to a more detailed economic and social analysis that may be complemented by more in-depth research by the Bank’s Social Development Department. Country- and project-specific information, properly aggregated to ensure confidentiality, will be used to test the above hypotheses, identify best practice, and develop manuals or guidelines as required.

Informing Policy Debate: National Level Brazilian Amazon Land Administration Study: In 2007, PROFOR financed a World Bank-led study that sought to explain why Brazilian Amazon land management institutions are falling short of reconciling environmental management, economic growth and agrarian reform goals. The study’s main finding was that a race for property rights had generated a chaotic land tenure situation in the Brazilian Amazon. The study made recommendations including the need for strong cooperation and coordinated action among many stakeholders who have tended to not work together in the past—essentially a new type of social and political pact—to remove key obstacles to peaceful and sustainable land administration in the Amazon. It would need to focus on intensified efforts at reclaiming public land that is clearly the result of illegal acquisition, creating space for the consolidation and creation of protected areas and agrarian reform settlements. It also called for coordinated action towards regularization of land held under conditions of “good-faith” in areas where such occupation is appropriate--uniting the interests of economic development interests, environmentalists, and land reform proponents around a grand plan for regularization. While it was difficult to make political inroads with this study when it first came out, in recent months Brazilian Minister of Strategic Affairs Roberto Mangabeira Unger has taken up the report and is using most of the recommendations in his proposal for a land regularization program in the Amazon. He has also introduced a bill to create a new agency to do this. Piloting the Poverty-Forests Linkages Toolkit in Uganda: The piloting of the Toolkit (just completed in October 2008 and described in detail in Annex III) has had varying levels of policy uptake in the four pilot countries (Cameroon, Ghana, Madagascar and Uganda) with the strongest impact being Key successes achieved in Uganda are that elements of the PROFOR ‘Uganda Policy Brief Paper on Poverty-Forests Linkages’ have been picked up and used in key planning documents, including the “Five Year National Development Plan For Uganda – The Forestry Sub-Sector” and a flyer produced by the National Environment Management Authority designed to influence politicians in decisions over budget finance allocations. When the research team proposed to the government to present the toolkit findings at a workshop, Ministers from the Environment Sector felt this would not have lasting impact and preferred for the toolkit field data findings to be fed into the development planning process. Consequently the research team presented the findings to key actors in the Environment sector via a regular meeting with the GoU Environment & Natural resources Sector Working Group. The Group recommended the findings be fed into the forestry sub-sector paper. The forestry sub-sector paper feeds into the umbrella Environment Sector working group which in turn is presenting objectives, targets and budget requirements to the 5-year GoU ‘National Development Plan’ (NDP). The toolkit has already influenced qualitative indicators. The PROFOR research team consider they have influenced the paradigm thinking of the forestry sector (and its staff) by raising the importance of livelihoods,

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incomes and employment in the forestry sector 5-year paper and helping them see the substantive contribution of the sector to the formal and subsistence economy and the importance of presenting this to national planners and decision makers. Also the Ugandan Government Bureau of Statistics (UBOS) has started getting data via a ‘community information system’ at sub-county level.

Informing Policy Debate: International Level Analysis of Financing Flows and Needs to Implement the Non-Legally Binding Instrument on All Types of Forests. In order to provide systematic and objective inputs of the funding sources and gaps towards implementing the NLBI in preparation for deliberations at the UNFF's Ad-Hoc Expert Group on finance, PROFOR financed analysis that presented an overview of the specific elements of the NLBI, including national measures, multilateral assistance, international cooperation and corresponding existing sources, and drew conclusions on the gap between existing financing flows and actual needs. The study was requested by the Collaborative Partnership on Forests (CPF) and will serve as important input into UNFF-8 (April, 2009) which will consider means of implementation for sustainable management as a key issue for the effective implementation of the NLBI. The preliminary findings of the study were presented during the UNFF Ad Hoc Expert Group (AHEG) in November, 2008 and were well received. The primary finding was that there is a need for substantial new and additional funding from all sources to support SFM and make the NLBI implementation effective on the ground. Although many new promising mechanisms and sources are emerging, so far there is no serious deliberation to define and develop a SFM-specific funding mechanism or instrument. But in addition to these conclusions and processes, the report also looked at the needs and gaps in types of forest investment, sources of investment, and geographic gaps. These analyses have helped to structure the debate during the Global Forest Leaders Forum (see the description further below) and set the stage for the discussions around the design of the Forest Investment Program within the Climate Investment Funds.

Networking and Coordination

PROFOR’s support for the Global Forest Leaders Forum was a prime example of its ability to facilitate the representation of all stakeholders, including Indigenous Peoples and unions of small forest-owners, to participate in debates at the international level—the statement built out of the multi-stakeholder concensus was fed directly into COP14 and will be presented at COP15 in Copenhagen.

The process of promoting the Programmatic Window, by meeting with sectoral staff and their managers region by region, was also a way to share areas of research between regions and promote previously completed PROFOR analytical work. This year, to maintain the momentum, PROFOR compiled an end-of-year summary report of PROFOR’s portfolio to keep regional staff abreast of completed, ongoing and upcoming relevance from which they may glean ideas and knowledge. This product will also be customized for activity proponents (to improve networking and minimize duplication) and eventually for general outside audiences.

We have also used networking among activity proponents to improve output and impact quality and have contributed to promoting specific networking tools developed with PROFOR funds. For example, this year PROFOR initiated three activities (received through the request for proposal window) on improving rural livelihoods. All three activities were focused on small and medium scale forest enterprises. The PROFOR secretariat introduced the southern NGO, the American NGO and the British research organization working on the subject and had them integrate a specific component of their respective activities – i.e., offer lessons learned from their work to the development of the Forest Connect toolkit. This partnership has proven to be fruitful and resulted in each of these organizations expanding their respective networks, but more importantly created synergies for their activities.

PROFOR has facilitated networking within the World Bank more generally by, for example creating a shared internal calendar of global forestry-related events. Piloting this internally will help us determine its utility as a network facilitation tool for outside audiences. PROFOR also facilitated proponents’ ability to share their findings. For example, PROFOR helped Indufor find an appropriate side event at the COP14 in Poznan,

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Poland in which they could share findings from a community reforestation project they worked on under the PROFOR-funded activity “Designing a Framework for Carbon Payments for Afforestation/Reforestation in Small Scale Forest Plantations in Mozambique”.

Developing Innovative Tools The activity entitled Measuring Biodiversity and Forest Conservation, Production and Livelihood Outcomes in Multifunctional Agriculture-Forest Landscape Mosaics is using an innovative approach to share knowledge regarding landscape approaches. The online Landscape Measures Resource Center (LMRC) is a website that uses a blog format to enable interaction and feedback. It is being designed as a tool for adaptive management that resident leadership of multi-stakeholder platforms and their technical service providers can use together to foster meaningful communication and interaction. The simple-to-use methods available on the LMRC should assist stakeholders in assessing how their landscape performs in delivering a range of potential production, conservation and livelihood benefits, and how institutions in the landscape perform in coordinating efforts across sectors.

A similar approach was adopted for the Poverty Forest Linkages Toolkit. A blog has been set up on the PROFOR website where the toolkit is available, encouraging users to share lessons from their use of the toolkit with other users as well as share proposed amendments to specific tools. While this approach has a lot of potential in keeping the product current, improving its quality and facilitating interactions among users, there is now the need to market the use of the blog to the users of the product

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Budget and Funding Projections for PROFOR

The budget for calendar year 2008 and current commitments for the remaining approved projects in FY2009 (first half of CY09) are summarized in Table 1 below according to thematic area.

Known sources of funding are summarized in Table 2.

Table 1: Budget for Calendar Years 2008 and 2009

Actual Commitments carry-

over from CY08 Total

Thematic Area CY08 CY09 CY08 & CY09

Livelihoods $327,256 $368,703 $695,959

Governance $258,008 $49,230 $307,238

Financing SFM $426,216 $278,520 $704,736 Cross Sectoral Cooperation $267,896 $93,496 $361,392

Knowledge Management $153,467 $39,521 $192,988

Communication $88,335 $28,512 $116,847

Technical Staff $309,608 $309,608 $619,216 TF Administration fee (5%) $120,878 $120,878

Total $1,951,664 $1,167,590* $3,119,254

* The CY09 commitments include activities under the programmatic and catalytic windos but not the Request for Proposals.

Table 2: Sources of funding

* - This i s an ind i ca t i v e f i gure r epre s en t ing the t ime the ac t ing manager has a l l o t t ed to PROFOR management

Sources of Funding

Overall Commitments FY03-FY05 FY2006 FY2007 FY2008 FY2009 Total Balance

EC € 1,200,000 $573,972 $573,972 € 780,000Finland € 800,000 $239,920 $787,650 $463,954 $300,000 $1,791,524 0Germany € 180,000 $243,108 $243,108 0Italy € 210,000 $308,026 $339,360 $647,386 0Japan $900,000 $900,000 $900,000 0Netherlands $306,787 $306,787 0

Switzerland $875,000 $500,000 $250,000 $125,000 $875,000 0United Kingdom £2,750,000 $3,027,397 $881,550 $1,031,000 $4,939,947 £1,000,000Subtotal $4,667,317 $1,131,550 $1,155,758 $2,683,739 $639,360 $10,277,724World Bank $520,000 $280,000 $280,000 $140,000 $104000* $1,324,000Total $5,187,317 $1,411,550 $1,435,758 $2,823,739 $743,360 $11,601,724

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Leveraged Funds

PROFOR has been successful in leveraging additional funds at a rate of 1:1.2. Some activities that were notable in leveraging funds were:

Policies and Incentives for Miombo Management: This activity leveraged funds from the World Bank-administered Trust Fund for Environmentally and Socially Sustainable Development which contributed an additional $280,000. Forests-Poverty Linkages Toolkit. $535,000 came from the Bank-Netherlands Partnership Program (BNPP). Institutional Choice and Recognition in Forestry-Effects on the Formation and Consolidation of Local Democracy: The Netherlands Ministry of Foreign Affairs and Embassy to Senegal, as well as USAID, brought $188,855 to this activity. Analysis Of Forest Land Use Options For Reducing Carbon Emissions From Deforestation And Degradation: DFID, AusAID, and GTZ contributed $210,000. Certification of Ecosystems Markets: Private and bilateral donors committed an additional $373,500 to this activity. Measuring Biodiversity and Forest Conservation, Production and Livelihood Outcomes in Multifunctional Agriculture—Forest Landscape Mosaics: International NGOs and other organizations put in $344,688. We have leveraged $500,000 from TFESSD for the Adaptation flagship product that has been undertaken, on top of the $300,000 PROFOR proposes to contribute..

Staffing

In June 2008, PROFOR’s World Bank-financed Manager took up a new position at which point the Sustainable Development Network Forests Team Advisor became its acting manager. This year, PROFOR Secretariat was comprised of two PROFOR-financed full-time staff a communications officer, and a Natural Resource Economist.

Members of the Sustainable Development Network Forests Team contribute to PROFOR work regularly, as do World Bank regional staff and staff from the Carbon Finance Unit.

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Annex I. Overview Chart of Activities According to Thematic Area

This chart includes all activities that were in some way active during calendar year 2008. Additional information on the background and status of each activity is provided in Annex II

LIVELIHOODS

PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated end

Implemented by

Total Project

Cost

Commit-ment

Disbursed Total Commit-ment

Disbursed to Date

Origin WB Staff Time

Staff Expenses

Travel Expenses

Other Expenses

Forest Resource Access and Local Livelihoods

Regional (Bolivia, Brazil, Guatemala, Nicaragua)

CLOSED 04/12/2006 08/30/2008 CIFOR $238,704 $118,704 $118,704 $120,000 $120,000 n.a

Piloting the Poverty-Forest Linkages Toolkit to inform Poverty Reduction Strategy Processes

Regional (Cameroon, Ghana, Madagascar,and Uganda)

CLOSED 02/20/2007 09/30/2008 CIDT & IIED $565,713 $15,713 $15,713 $550,000 $550,000 Bank Netherlands Partnership Program (BNPP)

Private & Community Forestry developing livelihoods on the basis of secure property rights in selected countries of South East Europe ( SEE)

Regional (Albania, Macedonia, Serbia)

ACTIVE 01/18/2008 06/30/2009 CEPF $180,000 $150,000 $82,325 $30,000 $16,000 CEPF, FAO, SEUR

$44,772.90 $9,917.69 $27,634.46

Forest Enterprise Information Exchange (FEINEX): A pilot in India as part of the Forest Connect Alliance

Country-India

ACTIVE 06/19/2008 12/01/2009 CEFI $172,511.00 $156,011.00 $15,994.00 $16,500.00 $3,250.00 IIED, CEFI

$11,460.00 $2,825.00 $1,709.00

FOREST CONNECT: Developing a toolkit to Facilitate support for small and medium forest enterprises

Global ACTIVE 07/01/2008 06/30/2009 IIED $295,379.00 $152,852 $135,150.00 $142,527 $59,529.00 IIED, FAO, NFP Facility

$83,225.00 $802.00 $51,123.00

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Strengthening the Value Chain for indigenous and Community Forestry Operations Through Increased Investment and Use of the Technical Assistance

Regional ACTIVE 07/01/2008 12/30/2009 Rainforest Alliance

$254,224.00 $149,944.00 $104,280 Rainforest Alliance

Policies and Incentives for Miombo Management

Regional (Mozambique, Zambia, Tanzania)

CLOSED 01/01/2006 11/30/2007 ECA Region $309,000.00 $15,000.00 $13,139.00 $294,000.00 $294,000.00 TFESSD $6,869.00 $0.00 $6,398.00 $962.00

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GOVERNANCE

PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated end

Implemented by

Total Project

Cost

Commit-ment

Disbursed Total Commit-ment

Disbursed to Date

Origin WB Staff Time

Staff Expenses

Travel Expenses

Other Expenses

Informal Institutions and Forest Governance

Regional (Bolivia, Brazil, Guatemala, Nicaragua)

CLOSED 10/06/2006 08/30/2008 CIFOR $233,604 $118,604 $118,604 $115,000 $115,000

Institutional Choice and Recognition in Forestry: Effect on the formation and consolidation of local democracy (also call: Study on Role of Informal institution)

Global (Benin, Botswana, Brazil, China, India, Nicaragua, Malawi, Mali, Mozambique, Russia, Senegal, South Africa, Zambia)

CLOSED 10/17/2006 03/31/2008 WRI $322,855 $134,000 $134,000 $188,855 $188,855 NL Ministry of Foreign Affairs, NL Embassy to Senegal, USAID

Analysis of systematic reform in tenure, Rural institutions and Forest policy and regulations in China

Country - China

ACTIVE 02/01/2007 02/29/2008 EA Region $422,000 $270,000 $250,000 $152,000

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INNOVATIVE FINANCING FOR SFM

PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated end

Implemented by

Total Project

Cost

Commit-ment

Disbursed Total Commit-ment

Disbursed to Date

Origin WB Staff Time

Staff Expenses

Travel Expenses

Other Expenses

The Next Generation Certification of Ecosystem Services Markets

Global CLOSED 06/25/2007 03/31/2008 Forest Trends

$588,000 $125,000 $125,000 $463,000 $463,000 GTZ, FSC Global Fund, SYNGENTA, DFID

Designing a framework for carbon payments for afforestation/ reforestation in samll scale forest plantations in Mozambique: A contribution towards a forestry climate strategy for Southen Africa

Country-Mozambique

ACTIVE 06/16/2008 09/30/2009 Indufor $245,425 $150,000 $16,675 $95,425 $80,425 MFA, IIED

$1,000.00 $0.00 $15,675.00

Preparing for REDD in dry-land forests: Investigating the options and potential synergy for REDD payments in the Miombo Eco-region, southern Africa

Regional (Mozambique, Namibia, Zambia)

ACTIVE 07/24/2008 06/30/2009 IIED $198,270 $148,270 $29,965 $50,000 $0 CIFOR $18,740.00

$3,064.00 $8,161.00

United Nations Forum on Forests: Analysis of the NLBI on financial needs and available sources

Global CLOSED 06/01/2008 10/30/2009 World Bank $180,000 $180,000 $180,000 n.a n.a n.a

Analysis of the potential for reducing carbon emissions from Deforestation and Degradation (REDD)

Country - Indonesia

ACTIVE/ CLOSED

08/01/2007 09/30/2008 WB: $325,000 $125,000 $136,237 $200,000 $73,015 AusAid, Carbon Fund, WB/WWF Alliance, GOI

$94,152.69

$41,683.58

$400.70

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CROSS-SECTORAL

PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated end

Implemented by

Total Project

Cost

Commit-ment

Disbursed Total Commit-ment

Disbursed to Date

Origin WB Staff Time

Staff Expenses

Travel Expenses

Other Expenses

Measuring Biodiversity and Forest Conservation, Production and Livelihood Outcomes in Agricultural Landscape Mosaics

Global CLOSED 07/10/2006

06/30/2008 IUCN/FLR, WWF, Ecoagriculture

$504,688 $160,000 $160,000 $344,688 $344,688 EP, IUCN

Analyzing Paths to Sustainable in Indonesia: Small Holder Livelihoods and Adaptation Strategies at the forest edge

Country - Indonesia

ACTIVE 05/01/2007

01/30/2009 EAP Region: CSIRO

$430,000 $200,000 $194,191 $230,000 $220,000 Gov. of Indonesia in kind, AusAid

$177,320.00

$11,672.00

$5,199.00

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KNOWLEDGE MANAGEMENT AND NETWORKING

PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated end

Implemented by

Total Project

Cost

Commit-ment

Disbursed Total Commit-ment

Disbursed to Date

Origin WB Staff Time

Staff Expenses

Travel Expenses

Other Expenses

Mapping Emerging Ecosystem Service Markets: The Matrix. A strategic Planning Tool

Global CLOSED 12/01/2007

06/30/2008 Forest Trends

$28,000 $28,000 $28,000 $0 $0

China Certification Conference

Country - China

CLOSED 04/02/2008

05/31/2008 Rainforest Alliance

$64,500 $12,000 $12,000 $52,500 $52,500 Stora Enso, Suzano Corp, Other Funding

$6,000.00 $6,000.00

Publication of the Cameroon Sector Policy reform Report

Country - Cameroon

CLOSED 10/01/2007

06/30/2008 Africa Region: World Bank

$115,000 $45,000 $32,799 $70,000 $57,723 World Bank, Bank Netherlands partnership Program (BNPP)

$32,799.00

Global Forest Leaders Forum

Global ACTIVE 06/01/2008

12/01/2008 World Bank and TFD

$150,000 $130,000 $130,000 $20,000 $20,000 The Forest Dialogue

16

Annex II. Activity Reports for 2008

(as provided by PROFOR grant recipients)

Livelihoods

Forest Resource Access and Livelihoods Start date: May 2007 Status: CLOSED Proponent: CIFOR

1. Geographical focus

Regional: Brazil (State of Pará); Bolivia; Nicaragua and Guatemala.

2. Objective

This research project analyzes the ways in which institutional and governance relations in forestry constrain or promote improved livelihoods for poor sectors, through an examination of key variables affecting access to forest resources and their benefits.

The questions aim to identify ways in which access is gained, maintained and increased for each variable; the relationship among the variables, and the economic outcomes for the organization and its members.

3. Activity and output: progress to date

The conceptual framework and instruments for conducting the research were developed within a larger project effort that included additional funding and was carried out in Africa and Asia, the first CIFOR-Rights and Resources Initiative global research project designed to focus on cases where recent changes in forest tenure, regulations and access to markets for local communities have taken place.. This effort is what united this particular project with its ´twin´project on ¨Informal Institutions and Governance in Forest Communities.¨ (Contract No. 7140575).

To date, the materials related to the conceptual framework have been developed, all the field work has been completed, site reports finalized and duly the principal written output is being published. External reviewers have submitted comments and the research have addressed them. Final submission of the manuscript for publication as a CIFOR Occasional Paper (the highest quality level publication) has been done and is now in layout.

Local workshops were conducted at all of the sites to present findings to the communities and partner organizations involved. Several larger dissemination and policy events have already taken place in Bolivia and Brazil. Four papers based on this research were prepared by CIFOR staff and co-authors from partner organizations and presented at the Biennial Conference of the International Association of the Study of the Commons, in Cheltenham, England in July, 2008. Informal dissemination of this paper has taken place in Nicaragua and Guatemala due to interest by Bank, FAO and USAID staff. With the pooling of resources (IDRC/Ford funding) a series of larger and/or more policy-related events are to be undertaken in Guatemala, Nicaragua, and Bolivia, some that will engage Bank and other donor staff.

4. Findings (either preliminary or final)

The turn to rights-based approaches represents an attempt to bring values and politics – or justice and power – back into the debates and practice of development. It recognizes the shift from stakeholders to rights-holders, as with regard to indigenous people in forests. Human rights concerns shape the forest reform specifically in relation to demands for indigenous ancestral rights but also to issues of equity and land rights for the poor more generally. However, these reforms of tenure rights do not mean that they all embrace the rights-based approach, which involves shifting power relations.

The case studies demonstrate that important new tenure rights have been granted to forest-based communities and that, in some cases, improvements have been substantial with regard to tenure security over land and forest resources and to livelihoods benefits from those resources. At the same time, these new rights are shaped by a variety of conflicts and demands on forest resources, and their full potential is attenuated by the loss of rights incurred in the process of putting statutory rights into practice, or constructing the property rules, and by the difficulties associated with regulatory frameworks, credit and markets for forest products.

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In many cases, these tenure changes represent the recognition of traditional or historic rights to land and resources for populations that have been marginalized or excluded, and in others, they represent new opportunities for similarly marginalized poor populations. Second, while there is a clear correlation between forests and poor populations in Latin America, and secure access to forests and forest resources offers an opportunity, under the right circumstances, to alleviate poverty, there is evidence that communities have become more important agents for conservation.

New statutory rights do not automatically translate into actual rights. The role of the state, the capacity of communities and their organizations and allies to fight for their

rights and the construction of accountable authority among all of these actors is essential, not only in the formulation of the statutory right but also in its implementation.

On a spectrum with on one end, communities may be entities holding temporary use rights under a newly incorporated organization created specifically for that purpose; at the other end, they may be autonomous institutions with long experience in self-governance that have won recognition of permanent rights to territories already under customary control. Most cases appear on the continuum between these two extremes. How this is perceived – that is, the legitimacy of the reform – depends in part on what was there previously, which shapes the nature of demands, including the basis upon which it is formulated (e.g. ancestral rights, livelihoods, and so on).

It would appear that a temporary use right granted to a management organization – a right that can be withdrawn if regulations are violated – is essentially a privilege (as in the case of Petén, Guatemala), whereas the granting of permanent control rights to political-legal authorities is more likely to represent a substantial recognition of rights (as in the case of the RAAN, Nicaragua). In the latter, the granting of control rights over resources provides the material basis for the exercise of human rights.

Granting or recognition of substantial decision-making power to communities or territories, not all authorities are representative or accountable, hence these relations should be constructed and not assumed.

The role of the state, in the granting, implementation and protection of rights, is decisive in shaping outcomes. The rights-based approaches necessarily demand duties and accountability – particularly (though not only) the duty of the state to protect human rights and to be accountable for the implementation of policy. In none of the cases studied has the state played a particularly effective role in fulfilling its duty to defend community rights or the perimeter of the territory – at least not consistently. Greater attention is paid to establishing management regulations rather than defending community rights, though in the end weak state institutions may fail to enforce even these.

The process of constituting rights in practice encounters competing interests over the lands and resources claimed – or “won” – by communities. Exclusion rights that are weak, weakly enforced or constantly challenged by powerful outside interests force communities and their organizations to waste substantial resources fighting for or defending these rights, rather than focusing on strengthening the local organizations and capacities needed to improve livelihoods through the integral and innovative management of community forests.

Policy frameworks, so far, have generally failed to establish an enabling environment for the development of these management opportunities. Community forest enterprises have been promoted based on blueprints for organizations and resource extraction that require heavy external support and fail to build on the self-governance capabilities of smallholders and communities. Models, assumptions and regulatory frameworks are based on industrial-scale logging for international markets. Forest enterprises are established from outside with little understanding of deeper cultural issues such as ancestral rights to cultural reproduction.

More often, projects and policies working to promote enterprises lose sight of “community” in community enterprises. Yet “community” is precisely what makes them different. In the search for market solutions and the development of viable enterprises, it is important to put the social and cultural considerations of local governance institutions at center stage, for, in the end, these constitute the foundations of future sustainability.

5. Impacts

To be determined, as written materials are being published and events are underway.

6. Opportunities and/or obstacles/issues related to implementation of activity

Challenges: In Nicaragua, Hurricane Felix hit the research region at the height of the field work period, causing major setbacks in the work. The impact of the Hurricane radically changed the nature of the situation (more than 600,000 manzanas of contiguous forestland were uprooted or downed).

Opportunities: Given one of the original criterion for country and case selection was the political opportunity to help deepen and secure the rights gained by local communities to their forest resources and

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benefits, in most of the countries there has been a high level of receptivity by forest community organizations, NGOs and governments. Highlights are the cases of Bolivia and Guatemala. The Bolivian forest authorities and the leading indigenous Amazonian organization (CIDOB) have ´scooped up findings and recommendations before final products were presented. CIFOR staff has played the role of advisors to both and channeled inputs into multiple policy-making efforts during the entire project life. In Guatemala, results have been mostly helpful to the community concessionaire organizations to help them reflect critically on their own situation and to formulate policy proposals to the governmental authorities, in this case those related to conservation, tourism and agriculture, as well as donors. In both countries, the research sites –though tension-filled- are serving as milestones for learning and shaping national level policy with regard to forest governance, regulation and enterprise development.

7. Progress against milestones and indicators

Despite some delay, mostly related to the pace of the early stage of the larger project (conceptual clarification, design of instruments, etc) across the three regions of Africa, Asia and Latin America, a short project extension allowed the team to complete the full set of deliverables within the new time frame.

8. Changes to original activity time schedule

All changes to the original project goals and timeline were presented and accepted.

9. Next steps

No follow-up activities have been planned.

10. Replication potential

Very High. The importance of this type of work, that allows for the ‘mapping of tenure rights’ and then one of how rights are implemented by the holders is of crucial concern for many different actors, particularly with the advent of new policies and projects related to REDD and other Climate Change related efforts.

11. Budget

PROFOR Funding $ 118,704 Other sources $ 120,000 Total $ 238,704 PROFOR Funds used to date $ 118, 704 Total Funds used to date $ 238,704

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Piloting of Poverty-Forest Linkages Toolkit Start date: February 2007 Status: CLOSED Proponent: International Institute for Environment and Development (IIED) and the

Center for International Development and Training (CIDT)

1. Geographical focus Cameroon, Ghana, Madagascar, and Uganda 2. Objective The Poverty-Forests Linkages Toolkit was developed to provide a methodology for understanding the ways in which forests and forestry might contribute towards poverty alleviation. It is designed to be used by forestry staff, local government and non-government organization staff to collect information that can be delivered in an appropriate format to those responsible for updating or revising Poverty Reduction Strategy Papers, planning national forest programs, and monitoring attainment of the Millennium Development Goals. The activity under this phase set out to pilot-test the toolkit in four countries: Cameroon, Ghana, Madagascar, and Uganda. 3. Activity and output: progress to date The project has achieved the full set of activities and outputs described in the terms of reference agreed between PROFOR and the project consortium. These include: Selecting and training country study teams in rapid appraisal methodologies for Poverty-Forests linkages (as outlined in the toolkit). Training was straightforward and successful in all four countries, in which the country team leaders relied on different strategies to train and deploy the study teams. The teams of facilitators comprised a mix of professional facilitators and local people with above average education (e.g. teachers). Several cross-country lessons were learned about desirable qualities for facilitators and tips for training. These have been noted in the mid-term report and incorporated into the revised toolkit. Finally, international communications throughout the project were maintained through dedicated international contact points for each country team and a specially designed and maintained internet share-point to allow access by all country teams to all project documents and other resources on forests and poverty. Supporting and building the capacity of different stakeholders (forestry department and agency staff, local government and/or relevant NGOs) to provide strategic quality inputs on forest-poverty linkages to national policy processes in Cameroon, Ghana, Madagascar and Uganda, using the Poverty-Forests Linkages Toolkit. Involving key stakeholders from central government, the forestry industry, forest-dependent communities, local governments, NGOs and relevant groups from sectors of interest in the process and results of the Poverty-Forests linkages work. Capacity building was highly successful among the immediate project implementers and participants in the four countries at the district and national levels. Forestry department staff strongly welcomed the project and, in all four countries, mandated senior staff members to participate throughout the toolkit piloting process. Staff in PRS and statistics agencies maintained their interest in the process throughout, from advising on methodology and site selection through to receiving and responding to the findings. Likewise, officials in local government (both forestry and other departments) immediately responded to the focus of the toolkit on the nexus between poverty and forestry, which is highly relevant to their own work. The country study teams equipped these district level staff with the outputs of the toolkit to support their work on the ground and interactions with other districts and the national governments. Conducting detailed forest-livelihood studies with the persons trained in the four countries to feed into PRSPs and other national development policy planning activities (e.g., NFP). Detailed field-based studies were completed in the four countries and then collated and analyzed. These were supplemented by national-level analyses of the status of forests and poverty and the key processes, actors, content and upcoming opportunities in poverty reduction policies (above and beyond the PRS) and in forestry policies (again including broader conservation and environment policies where relevant). In each country, a policy brief was drafted summarizing and drawing conclusions and recommendations from the findings in multiple sites.

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Using the country study results to prepare a concise and quality report with policy and operational relevance on the issues surrounding implementation of the toolkit, PRSP reform and government support for the process. The project consortium made a collective decision to present findings, conclusions and recommendations from the toolkit in the form of a concise and visually attractive policy brief in each country. While this approach loses the full detail of the toolkit findings, it should ensure much wider readership and a longer shelf-life. Holding national level workshops with key stakeholders in each of the four countries. The country study teams held at least one formal presentation workshop each, plus a series of further presentations at meetings, seminars, workshops and other events at the national and district levels – primarily in response to demand from governmental and non-governmental stakeholders. Presentations of this type will continue well after the formal termination of this project. Evaluation. Parallel to the above activities, a structured process was put in place to evaluate the effectiveness of the toolkit from the perspective of toolkit field users, village-level participants and policy audiences at the district and national levels. The full approach to evaluation was presented in the mid-term report and was included again in the final report. The resulting feedback from users, village participants and policy makers has been used to inform the revision of the toolkit.

4. Findings Cameroon Perceptions of wealth and poverty among rural communities vary widely and do not reflect generally accepted standards. Local people take into account other considerations related to in-kind and cash value aimed at establishing the pride and dignity of the human being in his or her social environment (for example owning a block house, means of locomotion, land, domestic animals, children). Forests contribute significantly to household incomes in rural areas. Given that there is deprivation of the population, the forest is the last resort from which they can get food directly, and other items that they can sell to cover the cost of other needs (schooling of children, health care, investments, etc). This contribution of forests to village household incomes in forest zones depends on the region: more than 50 % in the South-East, compared to between 30% and 40% in the West (Mount Cameroon) region. For its part, agriculture also constitutes an important part of household revenues. It is higher in the South-East (between 55% and 61%) as compared to the West (between 33% and 43%). Other sources of income contribute less than 10% to the household incomes of the two regions – apart from menial jobs and especially trade by barter in the West (commodity for commodity). In the South-East, the proportion of cash that is derived from income from the forest is quite considerable for both rich and poor people (74%). Meanwhile the contribution of forest products is generally low for in-kind incomes (less than 20%). Forest products constitute the main cash and in-kind incomes of the communities of the South-East: more than 50 %, both for women and men, except for the wealthy of Massea who depend more on agriculture (cocoa farming). Generally, women’s dependence on forestry, both in the West and in the South-East, is more than 30 %. A number of factors contribute to the dependency rate of communities vis-à-vis to forests: o The more enclosed by forest, the higher the dependence of the communities on the forest. Villages

surveyed in the South-East depend more than 50 % on the forest compared to villages in the West where the average is 35 %.

o The level of sophistication of trade. In East Cameroon, trade is done without the circulation of money, and barter is the main form of trading. This trade is done generally to the detriment of village dwellers who sometimes, in order to obtain a box of matches or a cup of salt or a few painkiller tablets, might trade each of these items for a quarter of a game animal.

o The rate of forest degradation is also a factor that can influence community dependence on forests, in the sense that the more vegetation cover is reduced and species become rare, communities have no other choice but to turn towards other sources of income such as agriculture. This problem is taken most seriously in areas in which conservation and development actors have raised awareness. This is notably the case in the Mount Cameroon region where the famous Mount Cameroon Project has carried out awareness campaigns and promoted alternative livelihoods.

o Socio-cultural backgrounds and population density can also play a role regarding the dependence of a community on forest resources. Pygmies, for example, have always lived on hunting and gathering and their communities are attached to their culture. This may explain why the proportions of forest contribution to household incomes is higher in the East.

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Apart from the common physical forest products, rural populations also benefit from forest services that have not been evaluated for now with the toolkit. Participants in the field study noted how such services contribute to their wellbeing. Examples can be given of sacred sites where Baka pygmies carry out their jenghi, the pleasure of taking a walk in the forest, on a daily basis. Communities know their use rights and deplore the non-respect of the latter by other actors in the forest. They recognize the fact they also have obligations towards the forest, and they have an understanding (albeit mitigated) of the rights, obligations and benefits accruing to other actors. Village communities seem very aware of the issues of resource conservation and the notion of sustainable management, emphasizing the importance of the forest for their livelihood (especially for food, medication and housing) and of taking measures to conserve it. Nevertheless, the efforts that they are making to ensure forest sustainability are still very limited and could benefit from guidance. Poor consideration of the concerns of the population by other actors (state administration, private sector) because of the poor implementation of legal and institutional arrangements governing the access to and management of resources. Similarly, the population lacks access to basic needs. Ghana Forest products constitute an important direct source of income for the very poorest in rural communities. Households sell forest products to be able to meet a wide range of expenditures, including everyday purchases of sugar, salt, paraffin and occasionally medium-size expenses like clothes (including school uniforms). It is mainly poor women who are involved in these transactions, for whom forest products represent a significant source of cash. Income earned from the sale of forest products represented 20-30% of poor women’s’ total livelihoods in two of the sample villages. Sale of agricultural products such as tree crops (cocoa, citrus, and oil palm) cut across wealth categories for meeting medium and large expenses such as house construction, school fees, dowry costs and emergencies such as major illnesses. This was particularly true for wealthy men and women by whom forest products are widely used for many household investments. There are important in-community differences in the use of forest products. As a contribution to cash income, forest products appear to be more important for women than for men. This relationship holds as incomes and wealth status rise. The contribution of forest products to non-cash (i.e. subsistence) income sees an apparent reversal in the importance of forest products between the genders. The group where forest products make the highest contribution to their non-cash income is for ‘wealthy’ men. This result warrants further investigation, but suggests that issues of access to forest resources may be an important influencing factor. Forest products are linked to the growth of other sectors such as agricultural production, livestock rearing, construction, trade and health, yet the overarching enabling environment for rural economic transformation is not yet in place. The contribution of forest products to national development, including the attainment of the Ghana Poverty Reduction Strategy (GPRS II) and the Millennium Development Goals (MDGs), is grossly under-estimated at present, partly as a result of the failure to capture the linkages between forest resources and the growth of other rural-based sectors in existing national statistics. However, this contribution would be higher still if communities had access to appropriate and affordable technologies for value addition. The challenge remains for government to improve the enabling environment for rural economic transformation. Poor road infrastructure frustrates trade and marketing especially in the rainy season. The lack of electricity and other low-cost alternative energy sources continue to lead to the over-use of forest products for household energy. Poor governance and inadequate enforcement undermine the rule of law, which has negative repercussions for rural livelihoods and their transformation. It has emerged that in the communities where the toolkit was tested, many people consider the existing forest legislation and regulations to be good, but there was a lack of commitment from a range of stakeholders as far as enforcement is concerned. Corruption of government officials, timber contractors and local leaders all undermine the long-term sustainability of the benefit flows from forest products to all segments of society. Community members felt the direct benefits could be enhanced if, for example, their entitlements in the form of shared forest-related revenue payments were more timely and regular.

There is broad support for sustainable forest management. This was expressed in many ways, including cutting only dry (dead) trees for timber, selective harvesting of NTFPs, avoiding the use of fires within forests, and using selective traps for hunting wildlife. Communities are willing to trade duties in safeguarding

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the forest resource for direct economic benefits - a key ingredient for sustainable use resource agreements. This provides an opportunity for the promotion of collaborative forest management between government authorities and these communities. Using the Poverty-Forests Toolkit, communities can generate information to guide their participation in sustainable forest management.

Forests play a key role in sustaining environmental services and maintaining livelihoods capabilities such as checking soil erosion and the provision of good quality water. There is a need to have these valued and subsequently included in national economic indicators. The above findings suggest that the methodology employed in the poverty-forests linkages toolkit has much to contribute in terms of providing the evidence base for strategies addressing poverty reduction and forest conservation in Ghana. The toolkit should be further developed and applied as a tool of rural economic analysis. The Forestry Commission and other related agencies should adopt the toolkit for data gathering as an integral activity of collaborative forest management planning, and training institutions should popularize it among their students in order to carry out collaborative-related research. Donors, for their part, should support capacity building within the government and among Non-Governmental Organizations to make use of this tool in order to raise the voice of the poor in planning sustainable forest management and in encouraging the adoption of multi-purpose tree species on private land.

Madagascar Forest products contribute significantly to the incomes of rural households: to 26% of the total income in the humid forest zone and even more importantly to 30%, in the dry forest zone. The value of the contribution of the forest products is roughly to 56,000 Ariary (35 US$) per household per annum in the humid forest zone and 68,000 Ariary (42 US$) per household per annum in the dry forest zone. Given the high contribution of forests to rural incomes (subsistence and cash), forest products should be recognised and promoted as a major component of a diversified rural household strategy. A perhaps surprising finding is that forest products contribute more to rural household incomes in the dry forest domain than in the moist forest domain, where forestry and agricultural potential is higher. While the wet forests offer an abundance of products (in volume and varieties), the products of the dry forests have more commercial value on the local market because they become rare (due to advanced degradation and the distance of the forest). The implication for policy is for investment in forestry to be directed towards the development of silviculture in the dry forest domain as well as in the wet forest domain where most efforts are currently concentrated.

Much of the contribution of forest products to household incomes is invisible in national statistics because they contribute more to subsistence income (35-80%) than to cash income (4-30%).The periodic survey of households, in 2005 (L'Enquête Périodique des Ménages 2005 or EPM 2005) estimates the average contribution of non-cash income from non-agricultural enterprises, including forestry, to be only 0.2% of total household income, whereas the estimate in this study is 21% (the proportion of income that is non-cash multiplied by the proportion of forest’s contribution to non-cash income). There are several possible explanations for this difference, including (a) the EPM definition of agricultural products includes some of the products that the Forests-Poverty Toolkit defines as forest products, such as fruits, (b) the EPM figure includes urban households, which are expected to have a lower dependency on forest products, (c) the questions in the EPM do not extract the full range of forest products that are recorded in the Forests-Poverty Toolkit.

On average, forest products contribute more to cash income in the dry forest domain (21% of the total cash income) than in the moist forest domain (10% of the total cash income). In other words, the contribution of forestry to cash incomes is higher in dry areas than in moist areas, emphasizing the centrality of forest products to livelihoods in the drier parts of Madagascar and hence the priority for forest management in these areas. Promotion and support to the marketing of forest products may be especially effective in the dry forest domain as a means to help people out of poverty.

Forest products contribute to all sectors: food, agriculture (traditional fishing, farming), housing, domestic energy, water supply, tourism, crafts and trade. Forestry is thus integrated into all the key commitments of the MAP and investment in rural people’s use and management of forests will contribute to national development in multiple sectors. Forestry has a key role to play in achieving the “double green revolution”. The Information service of the Ministry of Environment, Water and Forests and Tourism (MEEFT) collects regular data relevant to forest livelihoods (e.g. resource abundance & management activities at commune-level). This data could be used much more effectively than it is at present to monitor the performance of forestry in achieving MAP.

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Overall, forest products are equally important to all rural people: to women and men, to poorer and less poor households, to those living near roads and markets and those living further from these infrastructures. The toolkit methodology provided a means to determine whether forestry contributes relatively more or less income to different social groups living in different localities. Results of the toolkit showed, perhaps surprisingly, that the contributions of forestry to livelihoods were equally high for all groups. Women and men did not differ in their level of dependence, although they tended to report higher reliance on different products (e.g. firewood for women and fish for men). Poorer and less poor households were also equally dependent on forest products. Regarding average income per household, the distribution of cash and non-cash income of the poor is almost the same as for the less poor. Similarly, households living close to roads and markets were found to be no less reliant on products collected from forests than those living in more isolated villages. These results suggest that even with expected trends in rural development under the MAP, which will deliver higher rural incomes and greater connectivity to markets by 2012, the importance of forest products to rural livelihoods will not decrease.

Rural communities are well aware of the values of forests not only for the goods they provide but especially for their ecological services, in particular the maintenance of water supplies. They recognise the importance of conserving forests and require development assistance rather than greater environmental enlightenment or awareness. Participants in the toolkit fieldwork demonstrated a sophisticated awareness of the ecological, economic and social values of forests, and of the negative impacts of practices such as tavy (slash-and-burn). The toolkit is designed to focus on forest products, but participants insisted on drawing attention to forests’ role in providing ecological services, most importantly the maintenance of water flows and prevention of erosion. The implication is that the current emphasis on environmental education and sensitization of rural residents to the value of conservation may be overstated. Rather, people need practical support in implementing development projects and self-help conservation initiatives that will enable them to reduce pressure on local natural resources.

People perceive multiple challenges to forest management. They would like to implement a mix of technical and institutional solutions, particularly the devolution of greater authority at the local level and the improvement of working relations between village and the decentralized technical services. The main challenges to successful forest management, identified in both the dry and moist forest domains, were the related threats of bushfires and tavy (shifting cultivation). Other notable problems include reduced water supplies, illicit extraction of forest products by outsider operators (e.g. charcoal businesses) and the permanent fear of attack by brigands of poorer women who travel deep into the forest to collect products. Local communities suggest that solutions to these problems should involve certain technical interventions, such as clearance of fire breaks to stop the spread of bushfires and investment in irrigation schemes to reduce the need for tavy. They also see the need for changes in institutions and governance to give a better platform for effective forest management. In particular, they see the need to review and reform the forest management policy and advise how the Forest Authority should be dispatched among each level of local governance to apply the principle of subsidiarity. In short, local communities would like to be able to express themselves more on forestry decisions relating to “their” forests, such as the allocation of licenses for extraction. Moreover, people seek fuller engagement in the land zoning decisions and other aspects of SAPM (System of Protected Areas in Madagascar, the government’s current major program to expand conservation). Since the SAPM’s success depends on the effective adhesion and engagement of the local populations, For this, a more adaptable schedule for providing appropriate forest management techniques and technologies appears necessary.

The poverty forest toolkit can be a helpful and profitable instrument in legitimizing the studies and research carried out by the stakeholders engaged in the execution of SAPM. At the same time, local communities require more transparency in the application of the new land tenure policy. In particular, they would like assurances that unexpected expenses in accessing land title will be minimized (e.g. the expenses of going back and forth between the village and the town for administrative papers). Uganda First, a key finding was that rural communities do not use the $1 standard available for daily expenditure to gauge poverty. Instead, they use a package of indicators that demonstrates the complex and multi-dimensional nature of rural poverty. By implication, poverty eradication requires a holistic and integrated approach to rural development, including its assessment. Access by rural communities to natural resource assets, including forests, is central to any poverty reduction strategy for Uganda. The subsistence economy was found to account for 52% of economic output of the sites in this study, while the cash economy for 48%. Compared to agricultural crops, which command a 1:1 ratio between the

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subsistence and cash economy, the forest products ratio of 3:1 implies that these are mainly used for subsistence. This phenomenon makes them almost invisible in the Poverty Reduction Strategy of the country, one of whose key objectives has been “to increase the ability of the poor to raise their incomes”. Although the monetary (cash) contribution to households from forest products was only 8% for the four sites, some groups and some sites registered a much higher contribution. This was true among the very poor/poor men and women of Ncundura (at 19% and 15% respectively), and among the very poor/poor men in Muhindura (at 20%). On the contrary, the dependency of average wealthy men and women on forest products to generate case remains much lower (6%). Forest products therefore constitute an importance direct source of income for the very poorest. As households become better off, their dependence on forest products begins to decline. In Kisoro and Kabale, the former indigenous forest Abatwa have not been fully resettled. Unless the government pursues a bold policy to resettle them, their continued dependence on forests for their livelihood could in the long-run be very counter-productive to sustainable forest management. Forest linkages to the growth of other sectors such as crop production, livestock rearing, construction, trade and health were considerable although there is no national system to measure these linkages. This underestimates the contribution of forests/forest products to national development. The contribution of the latter to the attainment of Millennium Development Goals (MDGs) would be higher if communities had access to appropriate and affordable technologies for value addition such as honey and timber processing. The improvement in rural physical infrastructure (e.g. roads, electricity) and provision of social services (e.g. education and health services) would also contribute to rural transformation. In Masindi, large areas of private natural forest were found to be under pressure from commercial agriculture. The government needs to identify a package of incentives including carbon finance so that households with private natural forests can conserve them instead of converting them to agriculture. Between 1971 and 1986, communities witnessed over-exploitation of forest products due to (i) the trans-border illegal trade known as “Magyendo” and (ii) institutional breakdown of the then Forestry Department (now National Forestry Authority) and local authorities. The main policy message is that poor governance and break-down of the rule of law has negative repercussions for rural livelihoods. A key finding from the listing of duties among communities is the desire for sustainability. This represents a considerable opportunity for the promotion of co-management arrangements in forestry between government authorities and the communities. Using the Poverty-Forests Toolkit, communities can generate information to guide their participation in sustainable forest management. The formulation of the 5-year National Development Plan should be cognizant of the findings in this paper, more so given that it has a developmental objective “to develop and optimally exploit the natural resource base and ensure environmental and economic sustainability”. 5. Impacts Cameroon The Forests-Poverty Toolkit findings have generated a strong interest in the role of forestry in poverty reduction in Cameroon. These findings have been presented to key actors in the Environment and Forestry sectors. They generated great deal of enthusiasm when they were presented to the PRS Committee and they will be taken into account in producing the new PRS document, which is still in the process of being drafted. GTZ, which is in charge of the management of funds for the implementation of PSFE, is adopting an abbreviated version of the Forests-Poverty Toolkit (reduced in numbers of indicators and parameters) to monitor and evaluate component 1 of PSFE. At the national workshop at which they were presented, attendees from different government departments, training institutions (ENEF de Mbalmayo, University of Yaounde I), NGOs and PRS committee members had the opportunity to discuss the implications of the toolkit findings for the Forest Environment Sector Program and the PRS and to offer practical and positive suggestions regarding the PSFE. These included including the Forests-Poverty Toolkit findings and a poverty map in the PSFE, providing indicators from the toolkit in the PSFE, adopting the PNFL legislation to the local situation, involving other authorities in developing the toolkit, strengthening the staff capacity of MINFOF and of other sectors which may use the toolkit, and making the findings available to MINFOF-MINEP. It was also agreed that the communities’ complaints should be taken account of in the PSFE.

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The toolkit findings give details of the forest products on which rural communities depend. Cameroon stands out among African countries in terms of the very high economic values derived from wild forest products. A key recommendation for enhancing the value of these products is to develop their processing and marketing potential so that people trained in the transformation of non-timber forest products will be able to expand their economic opportunities. In addition, information about the pressure that the community (especially the poor) puts on the natural resources strengthens the case for government to provide for the basic needs of and supply alternative livelihood opportunities to rural communities. Finally, further policy impact will occur when the Forests-Poverty Toolkit findings are supplemented by findings from the Livelihood & Landscapes (LLS) programme of IUCN, which is applying the toolkit in the Congo Basin Forest. Ghana The toolkit attracted early interest within policy circles in Accra, but it has to accommodate other pressing agendas in order to secure continued attention. Within the development community, the September 2008 meeting in Accra on Aid Effectiveness generated the most publicity following the completion of the toolkit testing phase. At the same time, negotiations between the Government and the European Commission over a Voluntary Partnership Agreement, which is part of the EU’s Forest Law Enforcement, Governance and Trade (FLEGT) initiative, has placed equally heavy demands on forest sector institutions. An important lesson to be learned is that the national policy space is finite and timing is critical to securing policymakers’ attention. Madagascar The findings of the Forests-Poverty Toolkit have generated a strong sense of forestry’s role in reducing poverty. At the national workshop at which the findings were presented, attendees from different government departments had the opportunity to discuss the implications of the findings for rural development through the Madagascar Action Plan (Madagascar’s Phase 2 PRS). The consensus was that governance is the main limitation on the extent to which forestry can effectively contribute to rural livelihoods. Drawing on the toolkit’s results, participants agreed that the main change that would be required in order to enhance the contribution of forestry would be for the forest administration at the district level to work more closely with communities. The consensus among government officials, however, was that it would not be possible to transfer full authority over local forests to village governments (fokontany), partly because of legal obstacles but mainly because of perceived lack of management capacity at the village level. Although full transfer of authority to the community level is unlikely in the near future, some district governments are strongly committed to working more closely with village governments and other local partners. The Regional Director for Environment in the Sofia District has been using the toolkit findings to mobilize new relationships with local partners and communities. The national workshop also entailed a discussion of how the toolkit could inform future data collection and indicators by government departments. The Director of the Division on Household Statistics in the National Statistics Agency observed that the Forests-Poverty Toolkit does not have quantitative credibility due to the small and non-random sampling frame, but that there was considerable scope to combine the approach of the toolkit with existing methods of data collection. He noted that while the toolkit is unsuitable for nationwide data collection, it could be an excellent basis for more specific studies, such as for the survey of the impacts of the SAPM conservation program that the Madagascar government is expected to commission. Two particular findings of the toolkit stood out for participants at the national workshop. The first was the major contribution of forestry to livelihoods in the dry forest zone, a contribution that has been systematically under-estimated in government policy. Participants agreed that a much greater recognition of and investment in this contribution would be important in helping to achieve the goals of the MAP in drier rural areas. The second important finding was the realization of forestry contributions across a spectrum of sectors. Workshop participants noted that the toolkit findings were not only relevant to “forestry,” but also raised broader issues related to poverty, water, agriculture, trade, land tenure, law, local governance, gender and education. Uganda The PROFOR research team in Uganda has been strategically aiming to use the toolkit to influence policy from the very beginning. A diagrammatic summary illustrating the linkages to country policy processes is given below. Accordingly, elements of the PROFOR ‘Uganda Policy Brief Paper on Poverty-Forests Linkages’ have been picked up and used in key planning documents:

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1. The executive summary of ‘THE FIVE YEAR NATIONAL DEVELOPMENT PLAN FOR UGANDA – The Forestry Sub-sector’. The overall Uganda NDP, which is still in the process of being drafted and has been delayed by a year, is due to be completed in early 2009. Fortunately, the PROFOR toolkit findings became available at exactly the same time when Environment sector Working Group planners were seeking up-to-date information to support their plans.

2. A one-page flyer produced by the National Environment Management Authority designed to influence politicians in decisions over budget finance allocations.

In Uganda, the research team proposed to present the toolkit findings at a workshop. However Government Ministers from the Environment Sector replied that this would not be time efficient and asked that the toolkit field data findings to be fed into the Development planning process. Consequently, the research team has presented the toolkit findings to key actors in the Environment sector via a regular meeting with the GoU Environment & Natural resources Sector Working Group. The Group recommended that the findings be taken into account in the forestry sub-sector paper on the basis of which the umbrella Environment Sector working group which will develop its objectives, targets and budget requirements for the 5-year GoU ‘National Development Plan’ (NDP). The NDP (previously PRSP or PEAP) will have 18 themes with a strong emphasis on competitive trade, economic growth, SME enterprise development and commercialization. Involving staff from the Forest sector in the toolkit training and field work has undoubtedly been helpful in getting issues related to livelihoods and employment in the forest sector highlighted within it. At the start of PROFOR research in Uganda, the National Planning Authority asked the team to base its research on the target indicators set under the forestry section in the 2005 published Vision 2035 Booklet. However, this publication has since been withdrawn because the indicators lacked national ownership and when they were presented in a national newspaper were criticized for being unrealistic and having been produced in Kampala offices without cross-checking with other stakeholders. As a result, the toolkit has not been used so far to set national level quantitative indicators of the NDP, which are still in the process of being developed. The toolkit has already influenced qualitative indicators. The PROFOR research team considers that they have influenced the paradigm thinking of the forestry sector (and its staff) by raising the importance of livelihoods, incomes and employment in the forestry-sector 5-year paper and by helping it to see the substantive contribution of the sector to the formal and subsistence economy and the importance of presenting this fact to national planners and decision makers. Also, the Ugandan Government Bureau of Statistics (UBOS) has started getting data via a ‘community information system’ at sub-county level. UBOS considers the ‘Participatory/Rapid Rural Appraisal’ methodology used in the PROFOR toolkit process to be appropriate for area-specific communities to monitor their own progress against their own indicators. Through a meeting with UBOS, the PROFOR research team showed the methodology used for field work data collection and the UBOS staff now intends to use and adapt the tools described in the field guide for its own rural community level information gathering. Concerning national level indicators, these have not been easy to agree on. The GoU wants fewer indicators which are ‘actionable’ and the process of honing down these indicators is still ongoing. A case study from toolkit testing field data is cited with quantitative figures in the policy brief to the National Environment Management Authority. Securing feedback from members of the Forestry Service and directing findings into GoU national planning processes has worked extremely well in Uganda. In addition, forestry staff from Uganda and members of the PROFOR research team have now been asked to assist with the development of the Rwanda national forest sector plan. Livelihoods and employment issues will be particularly pertinent, and it is anticipated that the PROFOR toolkit will be proposed as a means to collect community level forestry data. Hence this is evidence of its regional influence and impact. 6. Progress against milestones and indicators

The piloting program was completed according to schedule. 7. Opportunities and/or obstacles/issues related to implementation of activity 9. Next steps Cameroon The national workshop at which the Forests-Poverty Toolkit findings were presented also discussed the contribution of the follow-up and evaluation of DSRP by means of the new indicators outlined in the toolkit. The National Statistics Institute will launch a study in 2009 on the contribution of the forestry sector to the national economy and is considering use of the Forests-Poverty Toolkit as one of its survey tools. A

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Canadian team currently working in many sectors in Cameroon will assist in assessing the indicators including in the toolkit. Ghana Several platforms for discussing the policy messages of the Poverty-Forests Linkages Toolkit have emerged. First is the review of GPRS II implementation which will begin at the end of October and which is to involve policymakers responsible for directing the national poverty reduction strategy. Second is the revision of the forest sector master plan that is now underway. And third is the policy dialogue around sector budget support that is being led by the environment and natural resources Sector Working Group. With the main author of the national briefing paper now a member of this group, the conditions have become favorable for securing some policy engagement with the main findings of the toolkit in Ghana. Madagascar The national workshop on the Poverty-Forests Linkages toolkit resolved to convene a further specialized workshop for the MAP Secretariat to consider the broader implications of the. This workshop was scheduled for late September 2008. Participants at the national workshop also proposed a second, technical workshop to discuss the specific implications of the toolkit findings for developing new indicators to assess the progress of the MAP. Uganda The National Development Plan, which is scheduled to be completed in early 2009, is likely to incorporate findings from the Poverty-Forests Linkage Toolkit pilot projects, since these are being taken into consideration by the Environment sector Working Group tasked with helping to draft the plan. 10. Replication potential The team is exploring the possibility of applying the toolkit in other countries in Africa (including Liberia). The toolkit is already being widely used in individual activities and in the IUCN Livelihoods and Landscapes I initiative, and is also being promoted within the Bank for potential use. 11. Budget Table 1: Funding Overview

PROFOR Funding $ 15,713 Other sources : BNPP $ 550,000 TOTAL $ 565,713PROFOR Funds used to date $ 15,713 Total Funds used to date $ 565,713

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Private & Community Forestry-Developing Livelihoods on basis secure property rights in S.E. Europe Start date: January 2008 Status: ACTIVE Proponent: Confederation of European Forest Owners (CEPF) 1. Geographical focus South East Europe’s selected non-EU countries: Albania, Macedonia, Serbia

2. Objective 1. The livelihood approach in private and community forest policies will be strengthened - Valid without

change. 2. Contribution to enforcement of existing regulation and executing property rights to fight forest crimes –

Valid without change. 3. National forest programmes’ implementation assistance on private and community forestry aspects.

Valid without change. 4. Building up of networks for exchange at the sub-regional level. Valid without change. 3. Activity and output: progress to date Activities: Project information dissemination to partner organisations in the target countries – Done • Assessment and analysis of the status quo of private and community forestry assisted by national

consultants – Done • Kick-off conference with participation of the countries’ forestry stakeholders and experts of neighboring

countries. Done in cooperation with FAO UN EUR/SEUR and SNV – 30.06-02.07.2008, in Skopje, Macedonia (conference agenda attached-A1).

• Partner consultation s: done and continuously going on during project implementation in form of National Steering Groups (NSG information attached-A2)

Third project phase working plans agreed and available in Macedonia and Serbia and first draft made in Albania, to be précised by the end of January (see attached – A3).

• Preparation of the closing sub-regional conference: Ongoing – in cooperation with FAO SEUR and Ministry of Agriculture, Forestry and Water Management of Serbia. Host country shall be Serbia. Date: week Nr. 21/22 to be fixed by the end of January 2009.

Outputs available: - Status quo analysis available in all three countries in English and national language (pdf and printed) - Kick-off conference conclusions in English and national languages - Project web page developed and updated: see: www.cepf-eu.org under “activities in Central and

Eastern Europe” 4. Findings (either preliminary or final) Preliminary findings: To objective 1: livelihood approach is closely attached to property rights’ implementation. This is not yet

recognized in the countries by administration and decision makers. Socialist heritage in regulation and thinking is not yet mastered. The project triggers discussion on it however with other initiatives in the sub-region (SNV work on civil society strengthening). This issue shall be addressed in phase 3 of project implementation at the local and regional level events in the target countries.

To objective 3: nfp implementation in the countries suffers on structural problems of forestry to be addressed, further this is linked to personal concerns of the organizations in place. Progress and decision making on those structural changes is very slow therefore. These impacts however on the role of private forestry e.g. by the strong dominance of the state forest management organization acting also as forestry authority towards private forest owners.

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5. Impacts Project implementation is closely linked to SNV (Dutch Development Agency) and SIDA

(Swedish International Development Agency) activities on civil society development in the countries: Macedonia and Albania having a strong forestry component. Consultation especially with SNV is regularly ongoing and good (see MoU attached).

In Serbia links were established to the FAO GCP project "Forestry sector development in Serbia" financed by Finland and follow up is planned for the “Extension” GCP project.

Further close links are established to the work program of FAO SEUR on forestry in CEEC and the National Forest Program Facility. Consultation is regularly ongoing and good.

World Bank Country Offices are informed on the project in Albania and Serbia. Colleagues are part of the national project steering groups and informed according to needs: Mrs Dritta Dade (Albania) and Ms Olivera Jordanovic. (Serbia).

Private forestry stakeholders and forestry administration is interested on similar projects and activities in Kosovo, Montenegro and Bosnia and Herzegovina.

6. Progress against milestones and indicators

Milestones Indicator Status RemarkNSGs set up and operational in all three countries

NSGs regularly meet and functional

Achieved

NSG list attached

Status quo analysis elaborated

Analysis are available to kick-off conference

Achieved Studies introduced by authors at the conference

Kick-off conference conducted

Event took place Achieved 30.06-02.07.2008, Skopje/Macedonia. Agenda attached

Status quo analysis translated into national languages and printed

a) Electronic version available

b) Printed version available

Achieved Achieved in 2 cases out of 3.

Albanian study’s printing is in progress

Country level events plan of activity agreed and available (project phase 3)

a) Serbia plan available

b) Macedonia plan available

c) Albania plan available

Achieved Achieved Not achieved

Draft is available, agreement of the stakeholders to be expected by the end of January

7. Opportunities and/or obstacles/issues related to implementation of activity Opportunities: Synergies found to activities going on in the sub-region conducted by other international organisaitons,

such as SNV and FAO UN Formal policy processes in place at the national level to allocate activities within their frames (NFP/NFS

processes). Organization level of private forest owners achieved 2008 the threshold of getting active at the national

level and the NFP process in all countries even aims were defined differently according to development level.

Challenges: Macedonia: NFS process progress is very slow. Administration is hard to motivate in this situation and

support was unsure until more trust could be built up, which is now the case. Albania: process in place is out of the range of the project, as this is the decentralization and

privatization of forests. It was a challenge to allocate the relatively small project in this process. Final agreement is that events address areas of private forests only and not community forestry, which was too demanding. Administration is very difficult to motivate of international projects as many others are going on in Albania.

8. Changes to original activity time schedule

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Months (in the Form of a Bar Chart) Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

… Nr of Months

Activity 1: Preparation (intended) Subtotal (1) 1

(actual) 2Change 1 month Justification Delayed contracting procedure made necessary a longer preparation phase. Conclusion Implementation not hindered - activity took place. Activity 2: Project information dissemination to partner organisations in the target countries

(intended) Subtotal (2) 1 (actual) 2

Change 2 months Justification Delayed contracting made it necessary to send out final information and confirmation of the project

implementation with a delay of 2 months. Conclusion Implementation not hindered - activity took place. Activity 3: Status quo

analysis of forestry in the target countries

(intended) Subtotal (3) 3 (actual) 5

Change 2 months Justification Start up delay maintained. Conclusion Implementation not hindered - activity took place. SQAs got ready to the kick-off conference.

Intended activity time kept. Delay got caught up by the preparation phase time dedicated to phase 3.Activity 4: Kick-off conference

(intended) Subtotal (4) 1 (actual) 1

Change 2 months Justification Start up delay maintained. Conclusion Implementation not hindered - activity took place. Event co-organised with FAO and SNV. Intended

activity time kept. Delay got caught up by the preparation phase time dedicated to phase 3. Activity 5: National workshop implementation

(intended) Subtotal (5) 3 (actual) 4

Change Delay of 2 months and extension of phase by 1 month. Justification 7 weeks illness of main responsible project staff in the preparation phase to activity 5. Conclusion Activities of implementation prepared and agreed with the country partners. Implementation possible

in later project months. Delay will be caught up by the preparation phase and planned reserve time of implementation. Deadlines of the final phase shall be kept.

Activity 6: Closing project conference at the sub-regional scale

(intended) Subtotal (6) 1 (actual) 1

Change No change. Conclusion Conference to be held in Serbia.at the week nr 21/22 in cooperation with national partners and

FAO, SNV, WB Country Office Activity 7: Final reporting and

follow up planning

(intended)

Subtotal (7) 1

(actual) 1Change No change Conclusion Project to be ended according to contract and planning. Follow up to agree with national and

international partners.

9. Next steps Activity 5 shall be finished in project month nr 16. Activity 6 of the closing conference to be conducted in project month 17. Host country shall be Serbia.

Preparation is running. Date is agreed to be 3 days at week nr 21/22. Project partners informed and agreed on.

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Final reporting in project month nr 18 as planned. Follow up and opportunities: Private forestry stakeholders and forestry administration is interested on similar projects and activities in

Kosovo, Montenegro and Bosnia and Herzegovina. This would also offer chances to follow up on progress in the current project countries, especially as Bosnia and Montenegro has close links to forestry development in Serbia and the same relates of Kosovo to Macedonia and Albania.

Therefore a follow up project of similar scale and aims seems to be possible to set up in those countries. Representatives of these countries attended the kick-off conference and will be invited to the closing conference and will be interviewed on interest on a similar project involvement.

10. Replication potential Outside Europe: in countries where non-state forest property develops, e.g. after privatization or civil

society development and the countries address forestry in a national level development program (NFP like).

In Europe: in other non-EU South East European countries, like e.g. Montenegro, Kosovo and Bosnia and Herzegovina.

o Privatisation in forestry progresses and the private forest sector and the responsible administration fight similar problems as addressed in the current running project.

o National partners seem to be interested in a similar project addressing issues of non-state forestry as part of their national forestry development process.

o Also international organizations with similar synergic activities in the sub-region expressed their options of support as potential partners in case of follow up projects. SNV and FAO SEUR is positively viewing the possibility of a follow up project in the sub-region with the target countries as described above.

The potential for project replication in these countries is assessed as strong. 11. Budget Table 1: Funding Overview

PROFOR Funding $150,000 Other sources (list)

CEPF FAO SNV (estimated)

$5,000 $20,000 $5,000

TOTAL $180,000PROFOR Funds used to date $82,325.05 Total Funds used to date $98,325.05

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Forest Enterprise Information Exchange (FEINEX) : A pilot in India as part of the Forest Connect Initiative

Start date: May 2008 Status: ACTIVE Proponent: Community Enterprise Forum International (CEFI)

1. Geographical focus

India

2. Objective

As part of the Forest Connect alliance aimed at reducing poverty by linking small forest enterprises better to markets, service providers and policy processes the consultant will evaluate the most cost effective mechanisms to enable a service delivery environment and enhance quality of service provision for the growing number of SMEs in the forest domain.

3. Activity and output: progress to date

Activities

1) Project Set up and team development - The project secretariat has been set up at the current operating premises of CEFI in New Delhi.

Output: A team of project manager, research fellow and consultants are put in place to manage the initial set of deliverables.

2) Assessment of the agri business service delivery environment - This is a key area of work for the FEINEX initiative and activities were targeted in the project implementation states of Orissa, Maharashtra. The assessment exercise has been initiated for three categories of stakeholders a. Agriculture service extension system of the central and state governments – Comprising mainly of

Krishi Vigyan Kendras (KVK). The survey is currently underway and a working paper is expected by the end of January 2009 on the same.

b. Private Sector service delivery stakeholders – At least three of leading agribusiness corporates in India were assessed. A working paper would be ready for circulation by January 10, 2009

c. Producer perspective of service delivery (agribusiness segment) – Questionnaire is currently being developed for this assessment.

Outputs:

Working paper - Overview of Agribusiness Service Delivery in India Database of KVKs and their portfolio of services Plant disease outbreak and management information database Stakeholder database of current service providers and intermediaries

3) Develop a database of information and qualified service providers in three realms:

First level of identification of service providers and an advisory group formation process initiated.

Collaboration with government in Orissa and Maharashtra rolled out. Given that government exercises control on forests and produce emerging from forests, they are an important group of stakeholders to connect with for design, development and progressive usage of FEINEX as an information exchange.

Outputs:

Database generation already underway. 1000 entrepreneurs and service providers - 750 more contacted

Meetings held with forest secretaries and principal conservators of project implementation areas Workshop organised with multiple stakeholders (one in Bhubaneshwar, Orissa and one in Pune,

Maharashtra). 4) Share lessons learned via FEINEX through Forest Connect Alliance: use the FEINEX experience to

contribute to the development of toolkit for guidance being developed by Forest Connect.

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CEFI attended the first meeting of Forest Connect in Edinburgh. CEFI representative Leena Chakrabarti nominated to Steering Committee for FC Alliance and would support development of toolkit for SMFEs.

Outputs:

First meeting attended and preliminary sharing of concept as well as scope of work assessed Forest Connect Steering committee membership Commitment to develop two modules of the forest connect toolkit

4. Findings (either preliminary or final)

This is a very early stage of the project and only the first set of activities have started. Findings from the agribusiness service delivery assessment in India would be consolidated through the working papers.

5. Impacts

As mentioned the project is at a very early stage. However some initial progress has already been achieved which is expected to have impact within the period of project implementation.

1) Linkage established with Forest Connect supported by PROFOR. Experience on the SMFE sector in India shared. Service delivery to enterprises (forest) and experiential evidence was shared with the forest connect group which in the first phase has significantly informed the process. CEFI would develop communication and service delivery modules of toolkit for SMFEs.

2) CEFI engaged by governments of Orissa and Maharashtra to draw out the Five year Action Plans for state w.r.t forest produce. This opportunity has now been successfully used to promote FEINEX as a government action point for the states.

3) Support to pilot initiative in some areas has also been received from other donors. A plan is currently being drawn out for the engagement of UNDP in the process through the Small Grants Programme for India.

6. Progress against milestones and indicators

Milestone 1: Evaluation of the service delivery environment for agribusiness enterprise.

Progress: Primary research completed; assessment data collected; two working papers being developed; two referral workshops held. Overview report on Agribusiness Service Delivery in India to be circulated by January 10, 2009

Milestone 2: Develop a database of information and qualified service providers (in three realms).

Progress: Work has begun on this milestone. Database of at least 1000 stakeholders generated. Database for both states for the Government managed extension system participants also developed. Communication initiated with 700 more organisations and service providers to generate further information on stakeholders.

Milestone 3: Membership campaign for FEINEX.

Progress: This set of activities is due to start later according to the agreed timeline

Milestone 4: ICT platform of FEINEX operation

Progress: Not initiated

Milestone 5: Draft input to Forest Connect toolkit

Progress: First round of sharing completed through participation in the first toolkit development workshop, contribution made on the basis of experiential evidence in India. Specific contribution made in the area of communication platforms and service delivery to SMFEs. TOR drawn out with IIED and FAO for development of two modules within the toolkit framework for Forest Connect

The project implementation is at the preliminary stage and indicator based measurement of impact could only be tracked after March 2009.

7. Opportunities and/or obstacles/issues related to implementation of activity

Opportunity: A significant opportunity has arisen through CEFI’s engagement by State authorities where project is being implemented to draw out the fiver year action plan for the government. This has provided a key impetus to the initiative through its integration into the five-year plan of the state. Also at the same time CEFI is now working towards

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drawing the same action plan for five more states in India, which would provide a means of replicating the success of FEINEX once it is successfully piloted in the identified states.

Challenge: Heavy rains in eastern India during onset of project caused an initial delay in undertaking primary research activities. This caused a lag of about 45 days in delivering the first output of the project..

8. Changes to original activity time schedule

Months (in the Form of a Bar Chart)

Activities 1 2 3 4 5 6 7 8 9 10 11 12 - 18 Number of Months Activity 1: Subtotal (5)

(Intended) . (Actual)

Activity 2: Subtotal (2)(Intended) No change envisaged

(Actual) Activity 3: Subtotal (3)

(Intended) No Change envisaged(Actual)

Activity 4: Subtotal (4)(Intended) No change envisaged

(Actual)

Activity 5: Subtotal (5)(Intended) No change envisaged

(Actual)

9. Next steps

1) An advisory Committee cutting across stakeholders would be developed to set up a structured mode of feedback to the process of FEINEX development

2) Database of stakeholders under three realms being developed

3) Benchmarking parameters of service providers would be designed and tested through feedback of the advisory group and a core group of providers

4) ICT platform tenets would be designed

5) Series of working papers on different aspects of the initiative to be developed and circulated

10. Replication potential

Potential is expected to be high and some of the opportunities created at the beginning of the initiative and mentioned earlier in relevant sections have raised the hope of being able to replicate the project in other areas in India within the project period.

11. Budget

Table 1: Funding Overview

PROFOR Funding $ 156,011 Other sources IIED $ 6,500 CEFI $ 10,000 TOTAL $172,511PROFOR Funds as of 11/08) $ 15,994 Total Funds used to date $ 19,244

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Forest Connect: Developing a toolkit to facilitate support for forest SMEs Start date: May 2008 Status: ACTIVE Proponent: International Institute for Environment and Development (IIED)

1. Geographical focus

Global - with partners in Burkina Faso, Ghana, Guatemala, Guyana, Mozambique and Nepal (plus potential links to and inputs from a separately funded PROFOR proposal from Community enterprise Forum International, India, a separately funded PROFOR proposal in Mexico, Guatemala and Honduras from Rainforest Alliance). 2. Objective The project’s objective is to develop a toolkit for the facilitation of support for small and medium forest enterprises – helping to build social, economic and environmental sustainability amongst SMFEs and their associations by connecting them:

• to emerging markets - by strengthening associations and enhancing market links; • to service providers – by strengthening information about, and markets for, financial service and

business development service providers – based around sustainable practices; and, • to national forest programme (nfp) processes – by empowering them to shape policy processes that

control the broader business environment. Small and medium forest enterprises (SMFEs) and their associations offer particular advantages for poverty reduction. They accrue wealth locally, empower local entrepreneurship, strengthen social networks and engender local social and environmental accountability. But in least developed countries (LDCs), structures that connect with and support SMFEs and their associations are weak. The result is all too frequently social breakdown, economic failure and degradation of the forest resource on which SMFEs are based. This project addresses this lack of connectedness – based on substantial evidence of demand from in-country partners (and from linked initiatives in India plus unsolicited requests for support, which we currently cannot respond to in this proposal, but who may contribute to and make use of the final product - such as China, Democratic Republic of Congo, Ethiopia, Kenya, Mali and Sierra Leone). The anticipated outcome is less constrained and more sustainable SMFEs, served by flourishing financial service and business development service markets . 3. Activity and output: progress to date A background report “Supporting small forest enterprises – a cross-sectoral review of best practice” was prepared prior to the start of this project with some ideas for the main areas of guidance that might be needed to enhance support to small forest enterprises. It was published and distributed to Forest Connect project members early in the project in June 2008. An international networking site was launched prior to the project but substantially developed and populated with useful material on small forest enterprise support from June 2008 to December 2008. The 250 members from 48 countries have been alerted to the background report, as a featured report on this website (http://forestconnect.ning.com). Bimonthly email newsletters from this website have helped to encourage feedback on a range of issues – including the most appropriate training materials for supporters of small forest enterprises. An international workshop was held in Edinburgh from 2-4 July 2008 which brought together Forest Connect members from 12 countries with a range of expert resource persons in areas such as: access to finance, product development, producer group organization, business development services, agricultural and community forest business support programmes. Over three days the workshop (i) showcased country specific innovations in support of small forest enterprises, (ii) identified the underlying causes of problems in the struggle to support small forest enterprises, and (iii) prioritized areas where further guidance would be useful. The end result will be a toolkit framework that is truly demand driven. Each country team also identified local case studies which they felt would provide useful lessons for different elements of that future guidance material. A workshop report was produced and circulated widely, for example on the networking site and various other international SMFE sites (see http://www.iied.org/pubs/pdfs/G02295.pdf). Two important developments immediately followed the workshop. First, an international steering committee for the project was elected by Forest Connect members – with elected representatives from the Rainforest Alliance (Central America), ANSAB (Nepal), CEFI (India), TreeAid (Burkina Faso) and INAB (Guatemala)

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alongside IIED and FAO. Second, this steering committee helped both to shape the main areas in which further guidance was considered appropriate (from the workshop) into a toolkit framework, and to identify experts within the Forest Connect alliance who had the expertise required to write the initial draft of the toolkit modules. Approaches have now been made to lead authors for the toolkit modules with drafts expected by March 2009. The backbone of the Forest Connect project involves ongoing work to support small forest enterprises in 6 partner countries (Burkina Faso, Ghana, Guatemala, Guyana, Mozambique and Nepal) plus linked work through separate PROFOR projects in India (through CEFI) and Central America (through the Rainforest Alliance) In addition IIED and FAO separately support Forest Connect partners in China, Ethiopia, Lao PDR and Mali. Participation in the workshop has enabled each country team to focus on particular areas of work where they might contribute relevant findings to the toolkit guidance. For example, a recent diagnostic on small forest enterprises from Burkina Faso (http://api.ning.com/files/e*HwoOL5fQXaz8Q2HrZHGATxw4RuSgTIrAG5b08BAxIi1VpN*JEyT8SRG3HO965DJzh6uoCy5WnY3M9egfNPExYY6SxqzTir/SMFE_diagnostic_study_in_BF_ENG.pdf) and subsequent business plan development using the Market Access and Development (MA&D) will be used to contribute thinking on a guidance module on ‘Market literacy and understanding’. The mapping of service providers in the recent Guatemala diagnostic on small forest enterprises (http://api.ning.com/files/ERvUaX951KdmuUFsxiOlQkTRCCbqbv5wcSgP746rNAQDXV7BT9B8uVA5-rS-yCBILgYSYsw640vYSwnT3rXNQZku3bNzgCuY/DOCUMENTOFINALDIAGNOSTICOFORESTCONNECT.pdf) and further work to identify particular upgrading options will contribute towards a guidance module on ‘Mapping and benchmarking service providers’. The work in Nepal to strengthen producer organizations for specific forest products will contribute towards a guidance module on the same topic. Similar inputs could be detailed for all the partner countries. 4. Findings (either preliminary or final) While still preliminary in nature, our main findings to date have been a clear identification of the main areas in which further guidance is needed for organization attempting to support small forest enterprises. A toolkit framework has been developed both at the workshop and through subsequent inputs by Forest Connect partners – it includes at least the following elements: AUDIENCE 1. EXTERNAL AGENCIES

COMPONENT 1. FACILITATION CAPACITY BUILDING Module 1. Identifying national facilitation hub institutions Module 2. Managing an international peer-peer learning group or alliance Module 3. Setting up monitoring processes

AUDIENCE 2. NATIONAL FACILITATORS

COMPONENT 2. FACILITATION PLANNING Module 4. Introducing the ‘market system development’ approach Module 5. Small forest enterprise diagnostics and data collection Module 6. Mapping and benchmarking support services Module 7. Value chain analysis Module 8. Prioritisation and sequencing of activities Module 9. Designing communication strategies COMPONENT 3. FACILITATION IN ACTION Module 10. Developing market understanding and literacy Module 11. Product development Module 12. Business planning and the facilitation of business development services Module 13. Financial planning and the facilitation of financial services Module 14. Strengthening producer organisation governance and structures Module 15. Building in ecological sustainability from the start Module 16. Policy analysis for change

In support of the development of these guidance modules, almost all Forest Connect partners have now embarked on or completed a diagnostic of the types and numbers of SMFEs in their country / region – building databases for future reference. Many had mapped out potential service providers. Some had gone much further to support collective action within SMFE producer associations, identifying, benchmarking and linking service providers to them and exposing them to markets through newsletters, bulletin boards, mobile phone updates, buyer-seller meetings and trade fairs. Some were experimenting with tying support to Forest

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Connect membership based around particular ethical principles and criteria. Many had begun to establish local level contact points (e.g. at village level) often piggy-backing on existing government or private sector infrastructure. Most were working through value chain analysis towards clearer understanding of how forest production could be made more sustainable and how forest governance in favour of responsible SMFEs could be enhanced. National steering committees with newly established monitoring systems were also emerging in many cases in support of such aims. At the heart of Forest Connect is the notion of better linkages and communication for small forest enterprises. Barriers to communication have been documented in geography, language, culture, differential power, informality and mistrust and reciprocal lack of knowledge between SMFEs, service providers and decision makers. Getting the right information to the right people is being addressed by using a range of different media – from the high tech options emerging in countries such as China and India to the more routine pictorial and voice based services in some of the other partner countries. Greater emphasis was being placed on increasing the direct exposure of different actors (both market actors and decision makers) to one another through facilitated meetings, fairs and dialogue processes. In particular market information services were agreed to require more of such exposure, rather than relying solely on regular bursts of static information. 5. Impacts At PROFOR’s request, IIED have made every effort to build strong linkages with parallel PROFOR projects in India (CEFI) and Central America (Rainforest Alliance). Both teams were invited to and participated in the Forest Connect workshop held in Edinburgh. Project leaders on both sides have been independently elected onto the Forest Connect steering committee. CEFI is taking the lead on the development of the guidance module ‘Designing communication strategies’ as this reflects the core of their separate project. The Rainforest Alliance is leading the development of the guidance module ‘Building in sustainability from the start’. Country partners from Ghana, Guatemala and Mozambique have helped, through IIED, to inform the World Bank initiated ‘Growing Forest Partnerships’ initiative and Forest Connect alliance partners have been nominated to the Reference Group that will inform the initiatives development. The strong overlap between the GFP core countries and the Forest Connect alliances sphere of operation will help to build synergies between these initiatives. For example, in Mozambique, efforts are being made to help shape the IFC / World Bank’s forest financing initiative in favour of SMFEs. The Ghana team have been involved in the work leading to the historic signing of the VPA agreement which links to World Bank initiatives on fiscal reform. A range of links are emerging with investors such as Root Captial, Deutschebank or support organisations such as Agricord who have been active on the project’s networking site as they develop practical options to support SMFEs. A presentation was made to the nfp-facility’s country coaches in Rome in order to brief them on the activities envisaged within Forest Connect, the development of the toolkit and the need to role this out across various nfp-facility partner countries. Coaches have committed time for the review of the first draft of the toolkit module document as this is developed over the next five months. There have also been concerted efforts to increase the complementarity of the Forest Connect alliance activities and those of the EU, DGIS and DFID funded Forest Governance Learning Group (FGLG) which operates in seven African and three Asian countries. The latter network has an ongoing focus on social justice in forestry with a thematic emphasis on local rights and enterprise. Presentations on small forest enterprise support have helped inform recent international FGLG meetings and Burkina Faso, Ghana, India and Mozambique FGLG teams all have strong lines of work on small forest enterprises as do several FGLG partner countries currently outside the Forest Connect alliance such as Cameroon, Malawi, Uganda and Vietnam. 6. Progress against milestones and indicators The three original milestones are listed below. The first and second have been met and the third is anticipated to be met on schedule. The initial workshop was a few days later than originally planned owing to the rather protracted contract process at project initiation which made a June date impossible, but was successfully carried out nonetheless. The revised draft toolkit framework has been distributed to country teams who are all involved in contributing content and helping to develop the guidance modules through action learning. The lead authors of each of the 16 toolkit modules have been assigned and are currently active in preparing that content.

Milestone 1 – International workshop to revise draft modular framework for toolkit (end June 2008)

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Milestone 2 – Revised draft of toolkit modules distributed to country partners who begin active testing in-country (July 2008)

Milestone 3 – Development of content of toolkit modules in the light on in-country experience with particular emphasis on ‘external agencies’ audience (March 2009).

7. Opportunities and/or obstacles/issues related to implementation of activity Activities are progressing smoothly. There are obvious challenges to working across so many countries on such major challenges with such limited budgets, where the in-country capacity and contexts vary hugely. What for some partners is routine, for others represents a significant leap forward. But it is partly because of this diversity that the learning approach to the development of this toolkit is proving so effective. Each country team has expertise unique to it that can help the other teams move forward. Whether it is the: scale and nature of community engagement in Burkina Faso; the range of VPA related activities in Ghana; the political and service provider networking in Guatemala; the practical marketing approach in Guyana; the communications expertise in India, the land and commercial rights focus in Mozambique or the strong producer group empowerment activities in Nepal – each team has things to share that can benefit others. 8. Changes to original activity time schedule The original time schedule is inserted below. There have been no changes or delays except for the workshop being delayed a few days as described above – but this had no impact on ongoing activities.

PHASE 1 – YEAR 1 Months (in the Form of a Bar Chart Activities 1 2 3 4 5 6 7 8 9 1

0 11

12 Number of months

OUTPUT 1 – Draft toolkit modular framework Work on review and draft toolkit module outline

(actual) Initial workshop to discuss modules within the toolkit

Output 1 Subtotal: 2

(actual) OUTPUT 2 – Develop content of toolkit modules through in-country action learning

Develop content of toolkit modules with emphasis on external agencies audience

Output 2: Subtotal: 10

(actual)

9. Next steps Country teams are actively working to support SMFEs in their respective countries and capturing relevant guidance materials about how to do this to populate the toolkit framework by June 2009. Lead authors have been assigned and IIED are coordinating the compilation and editing of the toolkit with peer review from the Forest Connect steering committee. As soon as initial drafts are prepared they will be circulated to nfp-facility coaches and to the wider Forest Connect membership for comment. IIED are strongly committed to continuing interactions with world Bank staff on these issues – especially in bimonthly catalytic group meetings of the ‘Growing Forest Partnership’s’ initiative where small forest enterprise activities of the World Bank group, FAO, IUCN and IIED are exploring greater synergy 10. Replication potential There is very high potential for replication of the tools and tactics in support of small forest enterprise that will be captured in the toolkit. In part this is because the authors are all actively experimenting and doing these activities already – so the guidance is likely to be practical and relevant. In part replication is made more likely because we have been committed to build wider ownership of the toolkit through the review process which will help to increase the chances of uptake and use among the wider network of Forest Connect members in 47 countries. As draft toolkit modules are developed they will be posted to nfp-caoches and to the networking website for comment. The guidance in many cases draws on experiences from sectors beyond forestry and so is likely to be relevant both within and beyond the forest sector. 11. Budget Spending is going to plan, with expenditure complete for activity 1.1 and almost complete for activity 1.2. Slight underspend on the workshop has allowed us to put some additional costs towards local consultants (Forest Connect participants at the workshop) who are helping develop the toolkit guidance modules, for which work began at the workshop.

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Table 1: Funding Overview

PROFOR Funding $ 152,852 Other sources (list) IIED FAO (not on IIED books) NFP Facility(not on IIED books)

$ 103,477 $ 28,250 $ 10,800

TOTAL $ 295, 379PROFOR Funds used to date $ 135,150 Total Funds used to date $194,680

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Strengthening the value chain for indigenous and community Forestry operations Start date: May 2008 Status: ACTIVE Proponent: Rainforest Alliance

1. Geographical focus Global with specific examples from Mexico and Central America

2. Objective The objective of the proposed project is to build the case for increased investments in community and indigenous small- and medium-sized forestry enterprises (SMEs), and the provision of technical assistance for value-added processing in the certified forest product supply chain. This objective will be achieved through the development of three detailed case studies that capture experiences and data from Rainforest Alliance’s TREES (Training, Extension, Enterprises and Sourcing) program, which has been working with community and indigenous forestry operations in Mexico, Guatemala, and Honduras since 2002. Areas to be highlighted in the case studies include: Improved competitiveness for community and indigenous forest operations through improvements in primary processing that lower production costs while increasing product quality; Investments in wood kilns and secondary processing equipment that lead to increased employment opportunities, both overall and especially for women; and Development of secondary-level, community-owned businesses to aggregate supply, provide value-added processing services, attract buyers and/or market value added products. 3. Activity and output: progress to date Activity 1: Development of the three case studies of Ejido San Bernardino de Milpillas, Durango, Mexico; FORESCOM Petén, Guatemala, and Union of Agroforestry Cooperatives of the Rio Platano Biosphere Reserve, Honduras (UNICAF-BRP). : During the months of June and July 2008, a coordinator was identified to manage the production of the three case studies with similar data analysis and collection methods. Local consultants were also identified with the previous Rainforest Alliance experience and close working relationships with the communities to be highlighted. Through in-person meetings with key Rainforest Alliance forestry staff, a set of 16 tools and documents were compiled and reviewed to determine which had the best overall potential to be used globally. Similarly, key indicators were reviewed by which to frame the case studies. These will include baseline and after data, highlight the importance and impacts of investments, and underline the role of technical assistance. Such indicators are meant not just for donors but, more importantly, will serve as data for use by decision makers within the communities. The set of materials and indicators were discussed at in-person meetings in each country. Data collection for each country was standardized as much as possible, but each country presented unique situations and data collection needs, so some adjustment was necessary. Data to be collected in the case studies include:

1) Forest harvest indicators (what percentage of annual allowable cut was actually harvested, and in the case of tropical operations, percentages broken down by species);

2) Wood processing indicators, such as sawmilling yields, board foot per cubed meter (bf/m3), percentage of wood produced in different grade classes, and daily production (bf/person day);

3) Business capacity, as measured by number of workers, specialized positions, timely deliveries and investments;

4) Sales data, such as percent of sales to FSC buyers, average income per board foot and product mix. 4. Findings (either preliminary or final) By bringing together as much data as possible for analysis we will draw significant lessons from the three case studies. The time frame between baseline data and final data for the case studies will vary, with 3-4 years between data points for Mexico and Guatemala and only 1-2 years for Honduras. Some of the indicators will be combined to estimate large-impact figures, such as changes in overall income. Income changes will be influenced by many small indicators such as sawmilling efficiencies, changes in wood product quality and changes in product mixes. 5. Impacts

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The larger impact effects we hope to emphasize are: 1) changes in income (and how it was achieved); 2) return on investment; and 3) the role of technical assistance in bringing investments to their full potential. Furthermore, we plan to highlight the use of key tools used by the communities to diagnose, plan, and implement changes to their businesses. Rainforest Alliance attended the International Institute for Environment and Development (IIED) Forest Connect planning meeting in July 2008 and has recently been elected to serve as the external expert on the Forest Connect Alliance Steering Committee. We thank the World Bank’s Program on Forests (PROFOR) for putting us in touch with this excellent network. We will be reviewing some of the tools they are developing under PROFOR and will lead with one tool development.

6. Progress against milestones and indicators Key project milestones included the following. Activity 1: Establishment of field data collection schedule—Month 3 COMPLETED Drafting of case studies—Month 9 IN PROCESS Translating of case studies—Month 12 Printing of final case studies—Month 14 Activity 2: Attendance at IIED workshop—Month 3 Uploading of case studies—Month 15 Presentation at Guatemala Expo Forestal—Month 16 Presentation at Mexico Expo Forestal—Month 17 Presentation at World Forestry Congress—Month 17 Our project started in July 2008. We have completed the field data schedule and submitted a report to PROFOR on that process and the indicators to be collected. We have received and incorporated Profor’s suggestions on further indicators. The field data collection and draft case studies are in process. We are on schedule. 7. Opportunities and/or obstacles/issues related to implementation of activity There have been several opportunities. The first is greater collaborative work with IIED where we

are coordinating on tools for SMEs. In Mexico, the WB is developing a third phase community forest project (PROCYMEF) and is eager to see our Mexico case study and lessons learned which should help to quantify economic impact of PROCYMEF II and to inform design in the second phase.

8. Changes to original activity time schedule We are on schedule and do not at this time anticipate any changes to the schedule. The work did

not start in May as anticipated but rather July, after final signing of Profor contract. The IIED workshop was held in July 2008.

Months

Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 TotalActivity 1: Case studies 14Hire consultants

(intended) 2 (actual)

Establish field data collection schedule (intended) 2

(actual) Field data collection--Mexico

(intended) 2(actual)

Field data collection--Guatemala (intended) 2

(actual) Field data collection--Honduras

(intended) 2(actual)

Drafting of case studies (intended) 4

(actual) Case study review and finalization

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(intended) 1(actual)

Translation of case studies (intended) 2

(actual) Printing of case studies

(intended) 2(actual)

Activity 2: Workshops 3Attendance of IIED planning workshop

(intended) 1(actual)

Uploading of case studies and tools & websites

(intended) 1(actual)

Mexico Expo Forestal Presentation (intended) 1

(actual) Guatemala Expo Forestal Presentation

(intended) 1(actual)

XIII World Forestry Conference Presentation

(intended) 1(actual)

Reports due

(intended) 3(actual)

9. Next steps A highly competent field team is in place to start the field data collection. A thorough vetting of case study data and indicators has taken place with consultants and Rainforest Alliance field staff to ensure that each case study is covering the relevant issues. A chronogram of activities has been agreed upon and field work is underway. 10. Replication potential The variables being used to measure economic and social impact are relevant across many countries and regions within the forestry sector. The challenge in larger projects is how to get access to such detailed data which many SMEs don’t usually collect. CONAFOR in Mexico is interested to develop better impact indicators of their programs and we will be discussing with them how some of these indicators might be collected on a larger scale to look at the impact of country-level forestry projects.

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11. Budget Table 1: Funding Overview

PROFOR Funding $ 149,944 Rainforest Alliance Funding $ 104,280 TOTAL $ 254,223PROFOR Funds used to date $ Total Funds used to date $

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Policies and Incentives for Miombo Management Start date: 2007 Status: CLOSED but administratively active during 2008Proponent: World Bank

1. Geographical focus Southern Africa (Mozambique, Zambia, Tanzania.) 2. Objective The objective of this activity is to develop a framework for an improved understanding of the linkage between rural livelihoods and miombo woodlands, better to inform the development of social and economic policies which have poverty alleviation as their primary objective. 3. Activity and output: progress to date This activity has been completed. There are four primary sets of activities and outputs: household studies, national level analyses, technical assessments, and policy reviews. The project has been supporting several household studies, in Zambia and Mozambique. These have been designed to develop a clearer picture of the role of miombo woodlands in household consumption and is an outcome of intensive, seasonal structured household surveys, which have form the core of the original work supported by this project. These have been carried out following the methodology described in Cavendish (1999a,b and 2002), and developed further and modified by Campbell et al (2002). The first study, in two districts in Zambia, showed that even amongst so-called ‘farming households,’ income from collecting forest products (in Mufulira and Kabompo districts) was far more important in meeting households’ needs than the individual contributions of all other sectors. Rather than just being complementary to other activities, the study revealed that forest income is actually quite central to household livelihoods. At the same time, the study noted that these practices which enable households to make a living are likely not sustainable. Continued access to woodland resources is highly threatened by a number of factors that include high rates of deforestation, elite capture of high value resources, and poorly organized marketing of forest products. The second study, undertaken in villages located in the buffer zone of the Gorongosa National Park (GNP) in the Sofala Province, Mozambique considered similar dimensions to woodland resource use, but also examined the impact of household shocks (sickness and fire) on woodland resource dependence as well as the impact of a carbon sequestration PES scheme. In addition to confirming the high levels of dependence on woodland resources for household income, households experiencing shocks were more likely to depend on NTFPs for sale, than other households. Conversely, households participating in the PES scheme were less likely to depend on woodland resources for income than other households. Two national level assessments were carried out, the first in Zambia on the contribution of dry forests to economic development derived from a synthesis of empirical household studies, policy research, silvicultural and ecological studies, and other primary sources. This synthesis was modeled after studies described in Campbell (1996), as well as earlier Bank-financed studies such as Bradley and McNamara (1993) (which described the contribution of dry woodland management to the Zimbabwean economy). A second country case study reviewed community-based woodland management opportunities in Mozambique and synthesized the results of other primary studies. It focused on the fact that a strong policy objectives is supported only by a weak legal framework for community-based miombo management. A technical review has been completed which considered miombo silviculture, and how management systems could be improved or otherwise put in place to increase productivity. The review pointed out how much of our understanding of miombo silviculture is only weakly informed by an appreciation of their importance for rural poverty alleviation, and is instead, largely a reflection of earlier priorities on timber production. Finally, two policy papers have been completed. The first considers barriers and opportunities for miombo woodland management, and the second identifies the scope for policy reform specifically to more fully enable poor rural households to manage miombo woodlands. The findings have been edited and compiled into two volumes, and these in turn were reviewed and disseminated internally in the Bank. The first, Managing the Miombo Woodlands of Southern Africa: Policies, incentives and options for the rural poor summarizes the overall study’s findings in a short policy note. The second contains all of the technical outputs which were prepared with project support.

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4. Findings (either preliminary or final)

Findings are reviewed in the previous section. The research team convened in a workshop in Zambia in November 2007 to review overall project findings. The reports from the workshop are available on-line at: http://www.cifor.cgiar.org/miombo/index.htm 5. Impacts The various reports and studies which have been prepared have been consolidated into a regional piece of AAA for southern Africa, and are expected to give prominence to the importance of woodland management in household poverty alleviation strategies. PROFOR funding complemented TFESSD funding for this activity, and also leveraged additional financing via CIFOR’s Poverty and Environment Network. Specifically, PROFOR funding helped support the final Zambia workshop, and to begin editing of the final AAA. Agreement has been reached with the Bank publisher to publish the project’s findings. The papers are currently being peer reviewed with this objective in mind. Formal publication will likely take place some time in 2009. 6. Progress against milestones and indicators

The original milestones envisaged completion by end-November 2007. The final versions of the various individual outputs were produced at the end of December 2007, and were finalized after internal Bank review in April 2008. 7. Opportunities and/or obstacles/issues related to implementation of activity

The key and critical opportunity this project exploited was in establishing a partnership with CIFOR. This enabled us to tap into its regional network of researchers and institutions, and gave the activity a profile we might not otherwise have had. 8. Changes to original activity time schedule

There were no significant changes, per 6 above. 9. Next steps Outputs are to be edited into a volume for publication and dissemination. 10. Replication potential The model of working with the CG centers in developing and implementing a targeted program of policy and empirical research is well-established, but little used, Bank-wide. The benefits to doing so are significant, and the transactions costs are kept to a minimum if the framework has been agreed. 11. Budget

Table 1: Funding Overview PROFOR Funding $ 15,000 Other sources $ 294,000 Total $ 309,000 PROFOR Funds used to date $ 13,139 Total Funds used to date $ 307,139

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Governance

The Role of Informal Institutions and Forest Governance Start date: August 2007 Status: CLOSED Proponent: Center for International Forestry Research (CIFOR)

1. Geographical focus Regional: Brazil, State of Pará´; Bolivia; Nicaragua and Guatemala. (The countries and sites were shared with the ´twin´ project ¨Access and Livelihoods in Community Forests¨ ) 2. Objective The main goal was to generate recommendations for corrective measures that would decrease incentives for corrupt behavior and clientelism, which hamper the development of working rules as positive incentives. In this vein, better checks and balances will be explored among institutions working at different government levels through the design of institutional mechanisms to improve the performance of the organizations involved in forest resource use. 3. Activity and output: progress to date This effort is what united this particular project with its ´twin´project on ¨Informal Institutions and Governance in Forest Communities.¨ The conceptual framework and instruments for conducting the research were developed within a larger project that included additional funding and was also carried out in Africa and Asia. This was the first CIFOR-Rights and Resources Initiative global research project designed to focus on cases where recent changes in forest tenure, regulations and access to markets for local communities have taken place. Additional efforts were made to develop the analytic lens for understanding the role of informal institutions and their interface with formal ones for these same cases. The countries and cases were selected as representative of the most significant tenure reforms in the forest areas of Latin America. To date, the materials related to the conceptual framework and instruments have been turned into Profor, all the field work has been completed, site reports were finalized and duly submitted and the final comparative paper - the principal written output- is being published. External reviewers have submitted comments and the research have addressed them. Final submission of the manuscript for publication as part of the CIFOR – Governance Series will take place in September. Local workshops were conducted at all of the sites to present findings to the communities and partner organizations involved. Several larger dissemination and policy events have already taken place in Bolivia and Brazil. Four papers based on this research were prepared by CIFOR staff and co-authors from partner organizations and presented at the Biennial Conference of the International Association of the Study of the Commons, in Cheltenham, England in July, 2008. The pooling of resources (w/ IDRC/Ford funding) will allow for a series of larger and/or more policy events to be undertaken in Guatemala, Nicaragua, and Bolivia, some that will engage Bank and other donor staff. 4. Findings Attention to the ‘working rules’ constitute the key focal point for understanding how institutions shape social behavior in forest resource management and benefit generation and distribution. The dichotomy between formal and informal institutions take on relative importance, it is their interaction that matters in assessing human behavior. Four areas of behavior that affect forest resource use by smallholders and communities were examined a) the interface of statutory and practiced ‘rules of the game’ that guide how smallholders and communities control, allocate, legitimize and enforce land and forest tenure rights, b) local systems for forest resource use and management under the imposition of formal regulations, models c) smallholder interaction with markets, influenced by the constraints and opportunities produced by formal regulations, and market conditions that affect decision making and benefits.

The outcome of formalization of land rights in indigenous territories does not depend greatly on the content of formal rules – since most schemes tend to recognize customary rules – but in their modes of implementation. The approach to recognizing collective customary rights seems to have worked relatively well in the RAAN, Nicaragua but it has led to increasing conflict around tenure rights and land speculation in Guarayos, Bolivia. This is mainly due to the construction of new

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(informal) rules of the game, first for expanding the occupation of community settlements in claimed lands but with insecure rights, and second for certifying illegal rights of third parties inside the TCO. In contrast, in the RAAN informal rules arose for controlling the rights of third parties within indigenous land. In all cases, the growth of informal land markets, forbidden by law (formal rules) and tolerated by local informal rules, tends to become the primary mechanism for land redistribution, mainly in the areas more exposed to external agents.

Externally designed formal rules for regulating forest resources management face the highly constructed reality of informal rules guiding the behavior of both individual and social groups to land and forest resource access. Homogenous frames for regulating forest resource use neglect relatively complex realities and working rules for forest resources management that are already in place, which often are not conceived for operating in open market situations, requiring adaption to the new and evolving contexts greatly shaped by the enforcement of formal rules. Most proposed organizational solutions, inspired in entrepreneurial models, do not incorporate local institutional arrangements, and thus lead to new problems in land access, decision making for forest resource use, and benefit generation and distribution.

In most cases studied, there are a few formal rules embracing the management of non timber forest products (NTFP), and hence working rules for using these resources are largely influenced by existing informal rules which are relatively well developed (including hunting), as local populations tend to depend more on them for their local livelihoods. The formal rules devised for Reduced Impact Logging practices, are based on the model of large scale commercial logging, with implied intensive logging and silvicultural practices from an industrial scale and modus operandi. The results tend to be ‘cross-purposes’ in the field, reinforcing abandonment of the first and unnecessary complexity and time consuming to attain the second.

Smallholders and communities cannot afford the formulation of the Forest Management Plans or the transaction costs involved in their approval, complicated by the fact that the rules of the game neglect existing working rules, often tied to previously existing governance structures. The formal rules have tended to favor forest actors with better asset endowments and far greater bargaining power in the markets. Forest user groups must constitute formal enterprises and register them, pay the stipulated taxes and comply with labor regulations, all designed for larger scale operations. Compliance introduces bias in the markets excluding those with limited resources and conditions to fulfill such requests. As only forest products produced in compliance with the forestry regulations can be sold in the formal markets, those unable to comply face confiscation and thus are forced to seek informal and/or illegal markets. External support and subsidies have helped some local groups to overcome such barriers.

Noncompliance, however, is not necessarily an insurmountable obstacle for accessing timber markets due to the existence of extensive shadow networks, operating informally, that offer alternative market channels. These informal networks are problematic as they tend to concentrate economic benefits outside the communities. Nonetheless, communities engage extensively in informal markets with a diverse range of actors (i.e., local loggers, sawmill owners, forest concessionaires, timber companies), in order to avoid the formal rules. The result limits their power to negotiate and drives down the price of wood. Most forest actors engage in both formal and informal markets which makes it difficult to distinguish these entangled interactions in the market place.

Two broad trends arise related to the formalization of land tenure, implantation of forest management models in smallholder and community lands, and the development of timber markets. First, although local forest users have gained formal rights over their land and forest resources, most do not hold the management rights, limiting their decision-making regarding resource use. Second, this in turn restricts their capacity to capture the economic benefits of using such resources; their capacity to compete in the markets is mediated by the challenges of managerial skills, bargaining power, and market knowledge inherent in the industrial model, among others. Finally, structural limitations continue to be faced shaped by asymmetric power and information in the marketplace. Few external support policies and projects address this.

5. Impacts

To be determined, as written materials are being published and events are underway. 6. Opportunities and/or obstacles/issues related to implementation of activity Challenges: In Bolivia and Brazil access to the informal market networks that form the interface between community forests and industry is difficult and risky. Given that this ´informal´ realm of operations is often considered illegal, information sharing –particularly with respect to organizational ties and modus operandi- is not practiced. Future research on this topic would require additional time and methods in order to answer the

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questions fully. In Nicaragua, Hurricane Felix hit the research region at the height of the field work period, causing major setbacks in the work. The impact of the Hurricane radically changed the nature of the situation (more than 600,000 manzanas of contiguous forestland were uprooted or downed). Opportunities In most of the countries there has been a high level of receptivity by both forest community organizations, NGO´s and governments. Highlights are the cases of Bolivia and Guatemala. The Bolivian forest authorities and the leading indigenous Amazonian organization (CIDOB) have ´scooped´up findings and recommendations before final products were presented. CIFOR staff has played the role of advisors to both and channeled inputs into multiple policy-making efforts during the entire project life. In Guatemala, results have been mostly helpful to the community concessionaire organizations to help them reflect critically on their own situation and to formulate policy proposals to the governmental authorities, in this case those related to conservation, tourism and agriculture. In both countries, the research sites –though tension-filled- are serving as milestones for learning and shaping national level policy with regard to forest governance, regulation and enterprise development. 7. Progress against milestones and indicators Despite some delay, mostly related to the pace of the early stage of the larger project (conceptual clarification, design of instruments, etc) across the three regions, a short project extension allowed the team to complete the full set of deliverables within the new time frame. 8. Changes to original activity time schedule All changes to the original project goals and timeline were presented and accepted. 9. Next steps Covered above 10. Replication potential High. Time invested and lessons learned from conceptual and instrument development could be applied to new sites. Learning will be more systematically extracted from a broader set of sites to see broader trends that could better inform tenure reforms, forest resource management models and policy instruments. 11. Budget

PROFOR Funding $ 118,604 Other sources $ 115,000 Total $ 233,604 PROFOR Funds used to date $ 118,604 Total Funds used to date $ 233,604

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Institutional Choice and Recognition in Forestry: Effects on Formation and Consolidation of Local Democracy Start date: September 2006 Status: CLOSED Proponent: World Resources Institute (WRI)

1. Geographical focus: Global Benin, Botswana, Brazil, China, India, Nicaragua, Malawi, Mali, Mozambique, Russia, Senegal, South Africa, Zambia. 2. Objective: To identify means to support emerging local democratic institutions as a sustainable form of community inclusion in forestry. 3. Activity and output: progress to date PROFOR funding first supported the Bali Workshop (June – July 2006) where 17 commissioned cases were presented and lessons were drawn out. The workshop was followed by peer and project-leader comments and rewriting (October 06 – July 2007). Thirteen of the articles revised and resubmitted in October passed internal and external peer review by January. They were then edited by the project leader (Ribot) in collaboration with authors. At an August Synthesis Workshop, the editorial team—Ribot, Chhatre and Lankina—convened to finalize case articles and draft a synthesis article. Eight of the thirteen articles plus a new case from Indonesia were selected for a journal special issue and copy edited. This October WRI published 10 Institutional Choice Working Papers. The synthesis and nine articles will appear in the May 2008 special issue of Conservation and Society. A policy brief summarizing key findings and lessons learned (Annex A). The brief is an important outreach tool for this work. A policy dialogue was held on 28 April 2008 to discuss and disseminate these findings to practitioners, policy-makers and researchers in the Washington DC area (Annex B). 4. Final findings: Choose democracy: Choose to place public decisions with decision makers who are accountable and responsive to the local citizens. Where democratic local government does not exist, work to establish and enable local democracy. Build the public domain: Work to create a set of public powers directly or indirectly under the jurisdiction of elected local authorities. These powers make elected authorities worth engaging by enabling them to be responsive to local needs and aspirations. They constitute what we call ‘the public domain’, e.g. the space of public interaction that constitutes the space of democracy. Build citizenship: Support the right and provide the means for local people to influence the authorities that govern them—channels of communication and recourse. Inform citizens of the powers and obligations their representatives have and of the means available to citizens for holding their leaders accountable. Promote equity: Systematically partner with local organizations representing all classes—with an emphasis on organizations of the poor. Level the playing field through policies that affirmatively favor the poor, women and marginalized groups. Enable local representatives to exercise their rights as public decision makers: Create safe means for representative local authorities to sanction and demand resources from and take recourse against line ministries and other intervening agencies so they are able to exercise their role as local representatives. Help local governments to engage in collective bargaining for laws that favor the populations they govern: Enable local governments to bargain collectively with central government to ensure they are granted the rights they need to manage their forest and to insure that the rights they have been granted in law are transferred to them in practice. Facilitate representation of rural needs and aspirations in national legislatures.

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5. Impacts Influencing Donor Views: DFID’s Governance and Social Resource Development Center summarized IC findings from Ribot 2007 (Annex C) and drew out recommendations on their web page (http://www.gsdrc.org/go/display&type=Document&id=2733). Influencing Donor Investment: USAID’s Transformative Linkages initiative, ‘Translinks’, IQC called for IC research and improvement of IC in practice. Informing Donors, Practitioners and Researchers: Invited presentations of findings were made to: USAID Biodiversity Team; NORAD Governance Team, Bonn International Center for Conversion (co-sponsored by GTZ); Max Planck Institute for Social Anthropology; University of Tokyo; The World Bank Sustainable Development Network Week & Learning Week; Universities of Illinois, Michigan, and Florida; Center for International Forestry Research Workshop on Forest Governance and Decentralization in Africa (keynote), and Woodrow Wilson International Center for Scholars. Findings of the IC work will be presented at International Association for the Study of Commons biennial meeting. Influencing Language (and hopefully practice) at WB. The IC concept is now being used at the World Bank by CDD task team leaders. This is the IC project leader’s observation since the IC Sustainable Development Network talk (above). Direct Use of Findings: IC project leader is using findings in advising The World Bank’s “Africa Local Council Oversight and Social Accountability” (ALCOSA) project in Uganda, Tanzania, Ethiopia, and Kenya (Director: Serdar Yilmaz). UNDP Poverty-Environment Initiative cited Jesse Ribot’s decentralization work as key literature in this field. IUCN used Ribot’s decentralization work to shape its program on law, policy and governance in West and Central Africa. 6. Opportunities and/or obstacles/issues related to implementation The results are sufficiently robust to develop guidelines for forestry interventions to assure they support local democracy (see ‘next steps’). 7. Progress against milestones and indicators Original Milestones Indicators of Progress

1. Knowledge production

-Identified promising arrangements for increasing local representation in forestry decision making, and -Generated knowledge about effects of different institutional mixes on representation. (Witnessed in documents.)

2. Policy recommendations

Presented in publications, DFID web page and policy brief (Annex A).

3. Diffusion

-23 IC publications -13 talks (Annex C).

4. Change on the ground

-advising WB ALCOSA project (see above).

5. Capacity building

-17 young policy researchers trained in IC analysis. -10 developed advanced skills in writing for publication.

8. Changes to original activity time schedule The project was extended through March 08 due to intensive supervisory and editing work with young policy researchers. 9. Next steps Citizenship and Public Domain as Critical Elements of Local Democracy. To support forestry interventions as a local democracy lever the project should deepen its study of 1) the formation of citizenship through decentralized forestry and 2) the role of forestry in the creation of an active public domain. Films in Local Language as a Teaching Tool. One film has been created on forestry decentralization using local actors, and another will be created this year. These will be screened in rural areas as a teaching tool, and to policy-makers and elected officials. These could be used as a model for other areas.

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International Association for the Study of Commons Presentation. A series of panels on authority and representation, and roundtable on property and authority in NRM. Diffusion. Further diffusion of findings and recommendations via publications and talks around the world. 10. Replication potential The project findings apply to decentralization reforms—writ large—across natural resource types and sectors. The publications, presentations, films and other media will ensure that results are disseminated to a broad audience. 11. Budget

PROFOR Funding $ 134,000

Other sources $ 188,855

Total $ 322,855

PROFOR Funds used to date $ 134,000

Total Funds used to date $ 322,855

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Reforms for China’s Collective Forests: Analytical Support on Tenure, Rural Institutions, Forest Policy and Regulation

UPDATE NOT AVAILABLE THIS REPORTING IS FROM 2007 Start date: September 2006 Status: ACTIVE Proponent: World Bank

Objective Understanding, defining and assessing tenure types and management models in collective forest areas; describing and assessing forest business models; reviewing farmers’ institutional and self-organized associations Activity and output: progress to date 1) Tenure study: field surveys have been carried out in 9 provinces and completed. More than 300 villages and 3000 households were surveyed. Field reports for each surveyed provinces were in the process of drafting (two reports are complete). An overview report of national tenure reform using surveyed information is almost complete. The goal is to have the first set of reports (one overview and 9 provincial field reports) drafted by end of January. 2) Forest business model: field survey in one province is finished and in the second designatied province is under preparation. The plan is to finish survey by end of December and draft report by January; 3) Farmer association: field survey is finished and report being under drafting. 4) Workshop on tenure and regulatory reform: the date was tentatively set on February 28-29 and needs to be confirmed by SFA. Findings Forest tenure: tenure types change during the reform for all 9 surveyed provinces were documented and have been reported to SFA. Results with regard to pattern change, determining factors and preliminary outcomes of tenure changes were also produced and reported in different forms to SFA. More details regarding findings are available in a draft report entitled Collective Forest Tenure Reform in China: General Report Based on Village Level Survey. [For PROFOR Donors’ information, this report is available upon request] Impacts 1) Team leaders have reported to SFA policy and legislation department several times with regard to findings and recommendations for the upcoming tenure reform resolution. Jintao Xu has been invited as exterior reviewer of the State Council Resolution on Collective Forest Tenure Reform. Xiaojie Weng of Fujian Society of Forest Economics participated in drafting and revision of the resolution. 2) Researchers have been invited to several government held workshops to report findings of tenure reform surveys. Opportunities and/or obstacles/issues related to implementation of activity Interests of central and local government on the tenure reform issues have been high and information from the surveys have been highly demanded by various government agencies. Progress against milestones and indicators It was expected that thematic reports and synthesis reports were complete by end of December. Currently draft thematic reports should be able to be done by this date and synthesis report done by end of January.

Changes to original activity time schedule Another major milestone was the workshop, initially scheduled in October. Currently it is postponed to early 2008 (end of February) due to political reason (time conflict with CPC 17th national congress). Next steps 1) Tenure study: Complete thematic report (provincial survey report and overview report. 2) Forest business model: complete survey in the second province and draft report by end of December; 3) Farmer association: complete report by end of December.

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4) Workshop: to be held in early 2008. Replication potential None Budget PROFOR Funding $250000 Other sources $ 0 Total $ 250,000 PROFOR Funds used to date $107,060 Total Funds used to date $ 107,060

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Enhanced Financing Alternatives for SFM

The Next Generation of Certification of Ecosystem Markets Start date: June 2007 Status: CLOSED Proponent: Forest Trends 1. Geographical focus Global, but with a primary focus on Latin America. 2. Objective To implement the planning phase of an initiative to promote combined certification of Payments for Ecosystem Services (PES) - for carbon, water and biodiversity – with certified forestry operations, focusing on emerging voluntary markets. The original objective has been modified to focus primarily on PES that are carbon-led with additional benefits (notably water and biodiversity conservation but also positive community impacts), given that greater market demand currently exists for such products, versus for PES for water and biodiversity. Additionally, certified agro-forestry operations have also been included.

3. Activity and output: progress to date Forest Trends held an initial planning workshop involving over 40 international experts involved with PES and forest and agro-forestry certification, and subsequently formed a steering committee from the participants to provide advice on the implementation of the subsequent activities. Forest Trends completed and submitted the analytical review of existing initiatives to combine forestry and agroforestry certifications with PES for carbon, water and biodiversity. Forest Trend’s has also completed interviews with leading PES market actors and has submitted the associated report to PROFOR, as part of the final report, which also provides an update regarding leading candidate sites identified by Forest Trends and its partner organizations in Latin America for the development of PES. Support for the development of PES in these sites is being supported by funding from GTZ for technical and marketing assistance to the selected initiatives. Forest Trends is currently seeking additional funding for the already selected and additional pilot sites from other donors. In a related vein, Forest Trends obtained funding to support the development of draft methodologies for Agriculture, Forestry and Other Land Uses (AFOLU) under the Voluntary Carbon Standard (VCS). These methodologies encompass: Sustainable Forestry Management, Afforestation/Reforestation/Revegetation, Agricultural Land Management, and Avoided Deforestation. Forest Trends anticipates that these methodologies will be validated in a number of the identified combined certification pilot sites. 4. Findings (either preliminary or final) The principal final findings are: 1) there is growing demand for forest-based and other land use carbon credits, and that the development of new methodologies, such as: the recently developed VCS/AFOLU; the VER+, developed by TUV-SUD; Plan Vivo/Earth Carbon, developed/being developed by the Edinburgh Centre for Carbon Management; and the Climate Community and Biodiversity Alliance design standards, are all helping to drive this demand; 2) In addition, new market products for ‘conservation carbon’, de-linked from the current focus on ‘additionality’, are also likely to emerge in the near future, further increasing demand; 3) Similarly, the increased attention to Reduced Emissions for Deforestation and Degradation (REDD) and Avoided Deforestation is fueling interest in LULUCF/AFOLU carbon credits, particularly those that have additional positive attributes, and this demand can be expected to grow in the future. Several national REDD strategies are being supported by the newly-created Forest Carbon Partnership Fund (FCPF), and large-scale REDD and avoided deforestation credits are already being certified in the voluntary markets by CCBA and others. Forest Trends is assisting the government of Liberia to implement its national REDD strategy, which has been approved for funding by the FCPF, and is also exploring the potential to assist the development of REDD/AD PES in the voluntary markets.

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4) However, there is also concern on the part of several market actors that the proliferation of standards and potential new products could complicate the process of communicating with and convincing new buyers to enter into these markets, and undermine future growth. 5) There is increasing need for practical guidance and assistance to be provided to forest and agro-forest owners/managers regarding how to analyze the potential of their forest/agro-forest holdings to determine their suitability for tapping into PES markets, and also for similar recommendations regarding alternative management practices that would qualify for PES ‘additionality’ and address ‘permanence’ issues (together the associated estimated costs and PES benefits), in order to inform the owners/managers’ decision-making and to help spur the growth of forest-/agro-forest-based PES. 5. Impacts Forest Trends has interacted with staff of the World Bank’s Biocarbon Fund, the FCPF, and with representatives of the IFC regarding the potential for linking the activity with their ongoing operations. In addition, the ongoing collaboration with GTZ and exploratory discussions with several donors, notably the Dutch Government, regarding the potential for supporting the expansion of the pilot activities offer good potential for increasing the scale of the proposed implementation activities. Moreover, Forest Trends plans to support a number of combined forest and PES certification initiatives under the auspices of the recently-approved large-scale grant from the GEF to promote the development of PES linked to the conservation of significant biodiversity. Forest Trends is awaiting the approval/acceptance of the final report submitted to PROFOR before disseminating the results with relevant audiences, notably via Forest Trends’ Ecosystem Marketplace and the Katoomba Group’s meetings and website. 6. Opportunities and/or obstacles/issues related to implementation of activity There is now a significant opportunity to validate the recently-developed methodological guidance and standards for forest- and agro-forest based carbon under the VCS, VER+ system, Plan Vivo/Earth Carbon, and the CCBA, in addition to under the Clean Development Mechanism, linked to sustainable forest/agro-forest certification. The main challenge experienced was scheduling interviews with a number of the market actors to obtain their views and recommendations; this delayed the submission of the final report due under the contract (which combined the synthesis of the interviews and recommendations regarding next steps i.e. the 2nd and 3rd deliverables under the contract). 7. Progress against milestones and indicators The original milestones and status of the indicators are as follows: 1. Signing of the contract; completed - $12,500 released. 2. Submission and acceptance of the Analytical Review; completed - $50,000 released 3. Submission of a report synthesizing the views and recommendations of leading PES and certification experts; submitted in August, 2008.

4. Submission of the final report, combined with the report on the interviews with PES and certification experts; submitted in August, 2008. 8. Changes to original activity time schedule The submission of the report synthesizing the views and recommendations of leading PES and certification and the final report was delayed. Both reports were submitted in a combined form, in August, 2008. 9. Next steps Upon official acceptance/approval of the final report by PROFOR, Forest Trends will disseminate the reports, and summaries of the major findings, developed under this contract with relevant audiences, notably via Forest Trends’ Ecosystem Marketplace and the Katoomba Groups’ international and regional meetings, and the Katoomba Group’s webpage. In addition, Forest Trends and the Katoomba group will utilize the findings of the reports, and the professional relationships established with various PES actors during the course of conducting the work, to inform and assist the development of new PES, including those that combine existing certification of natural resources with the certification of forest-carbon and other PES. In addition, the Tropical America Katoomba Group will provide increased resources for assistance to develop PES with the region, including a significant focus on support for existing certified community forest/agro-forest

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owners (or for those in the process of obtaining such certification) to obtain combined PES certification. Forest Trends also anticipates that under its recently-approved large-scale GEF grant several combined certification initiatives will be supported in other regions. 10. Replication potential As noted earlier, there is good potential for replication via the evolving work of the Katoomba Group to focus increasingly on providing technical assistance to community-based PES activities, and also via the funding provided by GTZ, GEF and other donors. 11. Budget

PROFOR Funding $ 125,000

Other sources $ 463,000

GTZ $168,000

FSC $75,000

GEF $70,000

SYNGENTA $50,000

DFID VCS $100,000

PROFOR Funds used to date $ 125,000

Total Funds used to date $ 588,000

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Designing A Framework for Carbon Payments for Afforestation/Reforestation in Small Scale Forest Plantations in Mozambique: A Contribution Towards A Forestry Climate Strategy For Southern Africa Start date: June 2008 Status: ACTIVE Proponent: Indufor 1. Geographical focus Mozambique, Zambézia Province and Southern Africa. 2. Objective A) to formulate a Carbon Payment Project in Zambézia Province, Mozambique. This will involve formulating a programmatic forestry sink project in Zambézia Province, Mozambique, which will benefit poor smallholder farmers and be managed locally in line with the national decentralization policy. It will focus on afforestation/reforestation. Specific objectives include:

• Guidance for shaping an organization to manage all aspects of a programmatic forestry sink

project, from technical assistance to paying farmers • Designing a payment scheme, which will keep to a minimum the costs involved in contracting,

monitoring carbon, transferring payments to individual farmers and enforcing contracts. The consultants will draw from the experience of existing payment for ecosystem services (PES) schemes, including the voluntary carbon market but take account of the local context.

B) to contribute to a Southern Africa climate strategy through a joint Indufor-IIED publication. This part of the objective is connected with: the IIED proposal to PROFOR entitled “Preparing for REDD in dry-land forests: Investigating the options and potential synergy for REDD payments in the Miombo Eco-region, Southern Africa”. The publication will summarize the outcomes and lessons of both projects to contribute to a forestry climate strategy for southern Africa. The publication will elaborate synergies between adaptation and mitigation in the forest sector to build a coherent climate approach for the region. 3. Activity and output: progress to date A. Carbon Payment Project in Zambézia Province, Mozambique 1. Prioritization of project areas: The consultants will identify and prioritize the areas suitable for a carbon sink project in Zambézia; 2. Scoping of key design issues: The consultant will review the experience of PES schemes; examine the measures employed by these schemes to reduce transaction costs, and capacity building of community institutions to take on tasks such as monitoring and record-keeping, as well as more general measures to build trust and increase community buy-in. This will form the basis of a preliminary set of design issues to discuss with local communities and with national level stakeholders. At this stage the consultants will also identify and contact key investors who would be willing to invest on the implementation of the project; 3. Conduct consultation: The consultant will carry out the consultations listed below. As an important element of this work is ensuring that local communities are engaged in the process and design of this activity, they should be consulted early in the process, not only after national level consultations. While the initial consultations need to occur in a focused manner (i.e., national and local consultations kept distinct), the consultant will ensure that the voice and interest of the community in these activities are clearly articulated and reflected in the discussions had at the national level. More specifically the different levels of consultations will entail: a. at National level: The consultants will organize meetings in Maputo with different national level stakeholders, such as government officials in the Ministry of Agriculture and the country’s Designated National Authority

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(DNA), and other potential actors such as financial institutions operating in rural areas. The discussions will focus on: • the prioritization of areas • the level of commitment to engage in this venture • feedback on key design issues b. with local communities and other stakeholders The consultant will carry out field visits to Zambézia for consultations with communities in the prioritized areas. The discussions will focus on: • explanation of basic climate change elements and the project goals • community attitudes to forestry and how it fits into their livelihood strategies • community interest to participate and main perceived constraints such as capacity gaps • feedback on design options for the managing organization and the payment scheme The consultant will hold meetings with other local stakeholders such as local government and institutes and community-based organizations working in the province, to get feedback on design options and to explore the possibility of their involvement in the management of the programmatic project. 4. Draft a programmatic project The consultants will draft a programmatic project looking at issues such as:

baseline, additionality, leakage, non-permanence, and appropriate methodology; the proposed format for the managing organization, including the skills required for its

employees, and most appropriate capacity building programs to address gaps in local expertise; and

design of the payment scheme. This will draw heavily on the local and national level consultations to produce a design that is suited to the local context.

5. Consultation on the draft programmatic project The consultant will discuss the draft programmatic project (including the proposals for managing organization and payment scheme) with national stakeholders and local communities by conducting national and local workshops respectively. 6. Finalization of programmatic project report Feedback from national level, local-level stakeholders, and donor community (specifically World Bank/PROFOR) will be addressed and incorporated in a final report and programmatic project design, which will be then introduced to potential investors. B. Climate strategy report The consultant will produce a publication in conjunction with the aforementioned IIED project that summarizes the outcomes of the outcomes and lessons of both projects to contribute to a forestry climate strategy for Southern Africa (with specifics for each country). In order to do this the consultant will:

work with colleagues from IIED involved in the aforementioned PROFOR project to write the climate strategy report;

closely follow the implementation of the IIED project and travel to an IIED workshop to follow the implementation of the IIED activity and help in the writing process of the climate strategy report;

travel to the UK to meet with IIED and finalize the publication; and coordinate publication and distribution of the document (200 of the 600 printed copies will be

made available to PROFOR). Submission of final reports associated with A and B above The consultant will follow the specifications on how the final publications will be provided (see section on deliverables)

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4. Findings (either preliminary or final) The project is still being implemented, but below are some preliminary findings: There is potential to develop an avoided deforestation and Afforestation/reforestation program (REDD-A/R

Program) in Zambézia with local communities with the purpose of generating carbon credits to be sold on international voluntary markets;

The study performed an initial screening and field analysis and identified that 4,800 ha (four thousand eight hundred hectares) has the potential to host both reforestation and avoided deforestation activities under a REDD-A/R Program in specific areas of Ile and Mocuba districts. However, in order to make the program operational, there are several barriers that need to be overcome.

In order to address these challenges and set up a Zambézia community carbon forestry program, the study proposes that a partnership is build by different players, which will be responsible for setting up the scheme and design it in a manner that some years down the line, the program is able to sustain itself and no longer depend on external aid.

This partnership should be composed of: 1. Local program/organization, which is aware of the local reality and can contribute to solving issues on the

ground; 2. Technical entity, which knowledge on tree species and their carbon content; 3. Climate change organization, with knowledge on international climate criteria, carbon markets, buyers and

verification schemes.

5. Impacts It is still very early to assess impacts. 6. Progress against milestones and indicators

A. Carbon Payment Project 1) Prioritization of project areas and scoping of key design issues: The consultants have begun to identify and prioritize the areas suitable for a carbon sink project in Zambézia. In turn, they have started their review of the experience of PES schemes, providing the basis for a preliminary set of design issues to discuss with local communities and with national level stakeholders. Finally, the consultants have also begun to identify sources of finance necessary to implement the project and the necessary investors, both in the public and the private sector.

2) National-level consultation carried out. The consultants carried out a national level consultation regarding the project. The list of stakeholders contacted include: National Director of Forestry, the Planning and Development Ministry, the Foreign Business Ministry of Finland, Provincial Directors, the PRODEZA technical team, the Designated National Authority (DNA) of Mozambique—MICOA, and a number of NGOs, including IUCN, WWF, Centro Terra Viva, Cruzeiro do Sul, and Forum Natureza em Perigo. 3) Consultation with local communities and other stakeholders carried out The consultants also carried out a workshop in Zambézia which included local and regional government representatives, communities’ members (which were later on visited on their land); local NGOs, a PRODEZA team, and other local organizations. 4) Draft a programmatic project The consultants are currently drafting the project/program based on the the activities carried so far. 5) Consultation on the Draft Programmatic Project To be performed in February, 2009 6.) Finalization of report Report due March 2009. B. Climate Strategy Publication 1. Draft Document 2. Final Publication Publication Report due 11 weeks from the termination of Indufor and IIED project (June 2009)

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The consultants have begun discussing a potential table of contents to the publication, but do not have anything concrete at this point. Deliverables:

Date Title1 September, 2008 Preliminary report with findings linked to prioritization of project

areas and scoping of key design issues 31 January, 2009 Draft a programmatic project report 31 March, 2009 Final programmatic project report 27 April, 2009 Draft climate strategy document 15 June, 2009 Final climate strategy document

7. Opportunities and/or obstacles/issues related to implementation of activity One of the barriers the consultants faced while implementing this project is related to the difficulty of working with Mozambique government. It was extremely challenging to contact some governmental representatives to discuss the project and convince them to attend the workshop. Another barrier was linked to the budget, as prices in Mozambique fluctuate very much (e.g. air tickets). 8. Changes to original activity time schedule

Weeks

Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 29 WeeksA) Carbon Payment Project Scoping phase

(intended) 3(actual)

National Consultation (intended) 4

(actual) Local consultation

(intended) 4(actual)

Program Project Draft (intended) 7

(actual) Draft Report

(intended) 10(actual)

Final Report (intended) 1

(actual) B.) Climate Strategy Publication Draft Document

(intended) 5(actual)

Final Publication (intended) 6

(actual)

9. Next steps

The project is yet to be completed. The consultants are currently drafting the programmatic project, which will be delivered late January and discussing the best approach to write the publication. 10. Replication potential Community forest carbon projects are very difficult to be set up, due to the innumerous challenges they face on the implementation phase such as lack of local knowledge and capacity, land tenure issues and competition of land uses with food security. This projects aims at describing a working project to be set up in Zambézia which will leave room to be extended into the various parts of the Province and maybe to other neighbor provinces in the future. In additional, the lessons learned can be used to set up similar ventures in neighbor countries, which share the same reality.

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11. Budget Table 1: Funding Overview

PROFOR Funding $ 150,000 Other sources: IIED in kind $ 15,000 Other sources: MFA Finland $ 80,425 TOTAL $245,425PROFOR Funds used to date $ 16,675 Total Funds used to date $ 97,100

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Preparing for REDD in dryland forests: Investigating the options and potential synergy for REDD payments in the Miombo Eco-region Start date: June 2008 Status: ACTIVE Proponent: International Institute for Environment and Development (IIED) and

Indufor 1. Geographical focus Miombo Ecoregion: Mozambique, Namibia, Zambia 2. Objective To improve understanding, among decision-makers in government, community-based organisations and the private sector, of the opportunities and challenges for pro-poor payments for avoided deforestation and degradation within national and regional contexts of the Miombo Ecoregion. It aims to inform and facilitate stakeholders’ awareness of the application of REDD payments in the national and regional context and the options for maximising pro-poor returns in these payments, drawing strongly on existing successes and lessons from the conservation sector. This increased awareness will build decision-makers’ capacity to build workable REDD mechanisms that maximise pro-poor returns, and to more effectively articulate their countries’ position on REDD at continental and international scales. 3. Activity and output: progress to date A draft background paper on the potential for pro-poor REDD in the Miombo ecoregion has been written and presented at the project inception workshop. The paper provides a summary of the main elements of REDD and the key issues and challenges for REDD. It puts these issues in the context of the Miombo ecoregion by highlighting the key drivers of land use change in this region that are pertinent to REDD as well as the main challenges for managing Miombo woodlands. It discusses the main models of community based natural resources management in the region that form a strong basis and lessons for pro-poor REDD in the miombo. An inception workshop was held in November to share the vision of the project with players in the region as well as getting feedback on the background paper. The workshop drew participants from Zambia, Namibia, Tanzania, Malawi and Mozambique. It also involved regional players Resource Africa, WWF Miombo Ecoregion Conservation Programme and the Centre for International Forestry Research (CIFOR). In fact, the partnership with CIFOR enabled the involvement of participants from Malawi and Tanzania in addition to the three countries that this project covers. The first part of the workshop was a general discussion on REDD issues from the perspectives of the regional players, informed by country representatives. The second part of the workshop focused on planning country studies. After the meeting, concrete activities and time lines for country studies were agreed on. The inception workshop also served to synergise this project with CIFOR’s work in the region. Specifically, this work will complement CIFOR’s technical work on REDD in the Miombo, while CIFOR’s country studies in Malawi and Namibia broadens the regional perspective of REDD. CIFOR’s engagement with the Common Market for East and Southern Africa (COMESA) provides a policy platform for targeting this project. An outline for a policy brief/communications flyer has been drafted, targeting country stakeholders and other policy platforms. This is based on the initial information available in the background paper as well as a common position between IIED and CIFOR under this project. 4. Findings (either preliminary or final) As country studies are only starting at the time of writing this report, no findings are available apart from the information in the draft background paper. A key message coming out of this paper, and from the inception workshop is on the lessons that can be learnt from community-based natural resources management schemes. The massive investment (time, financial and human resources) that have been put into these schemes points to the investment that is required for pro-poor REDD. The multiple land uses and the land tenure systems in the region complicate the value of alternative land uses that REDD either complement or compete with. Not all community-based natural resources management schemes have been successes, but in cases where there is potential, they provide REDD with a good platform to address the drivers of land use change while meeting the economic needs of poor communities. These are just some of the initial issues arising from the preliminary discussions and literature reviews, and will be addressed in detail as specific country studies progress. 5. Impacts

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(2-3 paragraphs describing any outcomes, and progress in mainstreaming or linking the activity with ongoing World Bank, PROFOR donors, or project activities and/or processes) 6. Progress against milestones and indicators

Milestone 1 – Regional workshop to discuss background paper and prepare national work-plans: This has been completed. Milestone 2 – Draft of national studies completed: Still to be completed as national studies are just starting Milestone 3 – National level workshops held to consider the results of the studies: Still to be done after national consultations Milestone 4 – Regional synthesis workshop held: Still to be done after national studies are completed. Planned for April 2009 Milestone 5 – Final draft of regional synthesis completed: Still to be done

7. Opportunities and/or obstacles/issues related to implementation of activity The project started in July instead of May 2008 as originally planned. Therefore the implementation of activities is behind original schedule, but within the time frame of the grant period. Obstacle: The initial partner for the Zambia country study could not participate in the planning meeting, and was not also available for the country study. However, a different participant from Zambia was able to participate in the inception workshop and planning meeting. CIFOR, who are based in Zambia, were able to help identify a partner to carry out the Zambia country study. Issue: The planning workshop identified the need to translate reports for Mozambique into Portuguese, and this was built into the work-plan and budget for the Mozambique country study. The implication on completion of final documents is not yet known, but serious delays are not expected. Opportunity: The partnership with CIFOR provided opportunities to strengthen this work and link it to on-going work in the region rather than a one-off study. CIFOR’s work on REDD in the miombo broadened the country coverage of this work with two additional countries. Their links with regional bodies such as COMESA, SADC provide useful entry points into policy making processes and platforms.

8. Changes to original activity time schedule

(Present original activity time schedule, and any changes and justifications for these changes. Please note that satisfactory implementation status and a concrete justification that describes how obstacles holding up the process have been/will be overcome is necessary for approval of proposed changes).

Months (in the Form of a Bar Chart)

Activities 1 2 3 4 5 6 7 8 9 10 11 12 Number of Months Activity 1: Prepare back-ground draft document

Staff already engaged in other pre-planned activities at the time of signing contract, causing a lag in starting this activity

(intended) 2

(actual) 2

Activity 2: Hold regional planning workshop

A date suitable for all participants, especially countries covered under the partnership with CIFOR

(intended) 1

(actual)

Activity 3: National studies identified

A result of the delayed planning workshop and identifying a new partner for Zambian study

(intended) 1

(actual)

Activity 4: National studies undertaken

Late start due to the delayed planning workshop

(intended) 3

(actual)

Activity 5: National summary workshop facilitated

Variance in date of implementation to ensure all national studies are ready at time of workshop

(intended) 1

(actual)

Activity 6: Regional synthesis workshop held

No variance expected

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(intended) 1

(actual)

Activity 7: Final document completed and distributed

No variance expected

(intended) 2

(actual)

9. Next steps The current activities are country literature reviews and stakeholder consultations, which will be followed by stakeholder workshops in all countries. A follow-up on Zambia is required as the country partner/consultant started work later than the others. CIFOR, who are based in Zambia, will provide the link to monitor progress. 10. Replication potential It is not possible at this stage of the project to assess the replicability of project activities in other countries. However, the incorporation of Malawi and Tanzania indicate potential for replicating similar studies. The future focus of similar studies to be assessed after the synthesis workshop. 11. Budget Table 1: Funding Overview

PROFOR Funding $ 148,270 Other sources: CIFOR $ 50,000 TOTAL $ 148,270PROFOR Funds used to date $ 29,965 Total Funds used to date $ 29,965

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Analysis of the NLBI on Financial Needs and Available Resources Start date: June 2008 Status: CLOSED Proponent: World Bank 1. Geographical focus Global 2. Objective The project is intended to provide systematic and objective analysis of the funding sources and gaps vis-à-vis the NLBI in order to assist effective preparations of the documents for and deliberations at the planned AHEG on finance. This would present an overview of the specific elements of the NLBI, including GOFs, national measures and international cooperation and corresponding (related) existing sources, and lessons learned. The goal was to provide substantive inputs in the preparation of official documents for the AHEG, and preliminary preparations for the UNFF8. 3. Activity and output: progress to date Under the overall guidance of the AGF and the direct supervision of Secretariat officers, the consultant provided intellectual leadership, overall content management and cohesion to the project in order to ensure that its objectives were met and the outputs delivered in excellent quality and on time. This included providing policy advice to the AGF and the Director/Officer-in-Charge of the UNFF Secretariat on investment flows and finance schemes; developing a methodology for the mapping exercise and reviewing relevant background material; presenting an inception plan; conducting analysis of the availability and scope of current funding sources; reviewing new developments in the climate change regime relating to forest finance and accessing sources and mechanisms for implementing the NLBI; identifying sources of funding for the various countries according to multiple criteria, as well as identifying funding gaps; producing draft reports with recommendations; preparing preliminary findings for the country-led initiative, and preparing a final report to the AGF and UNFF Secretariat, with a view to recommending further steps to be considered by the AHEG and UNFF8. The study also reviewed the thematic (planted forests, capacity building, processing, natural forest management, protected areas, etc.) and regional focus (Africa, Low Forest Cover Countries, etc.) of the flow of funding/investment from the above sources, as well as presented a short description of the governance structures of multilateral funding sources/mechanisms (e.g., GEF, WB, etc.) These findings have been compiled in a comprehensive analytical report on existing funding sources, their relation to the provisions of the NLBI, requirements and gaps, current trends and preliminary projections for the future regarding forest-related finance. 4. Findings (either preliminary or final) There is a need for substantial new and additional funding from all sources to support SFM and make the NLBI implementation effective on the ground. Although many new promising mechanisms and sources are emerging, so far there is no serious deliberation to define and develop a SFM-specific funding mechanism or instrument. Although ODA for forests appears to have a modestly increasing trend in the past few years, the gap between the needs and funding is still very wide. ODA to forests has increased only in the case of a few bilateral donors and some multilateral financing institutions. The sustainability of increased ODA is therefore not assured. To make progress to achieve GOF4 in mobilising more resources, concerted efforts are needed from both donor and recipient countries. ODA should play a substantially stronger role in future forest financing. Increased contributions, including to sectoral aid programmes and policy development lending, would be needed in future forest financing to ensure that the financing gap is not expanding further. Because of other pressing priorities in national development, the forest sector in many developing countries will continue to face challenges in mobilising new public funding for forests. Without explicit linkage with forests in poverty reduction strategies and broader national development plans, there is unlikely to be an increase in explicit demand for, and thereby supply of, ODA to forests. Contribution of forests to poverty reduction and dependency of the poor on forests need further clarification to justify allocation of ODA to forests (including budgetary support).

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5. Impacts The study was requested by the Collaborative Partnership on Forests (CPF) and will serve as important input into UNFF-8 (April, 2009) which will consider means of implementation for sustainable management as a key issue for the effective implementation of the NLBI. The findings were already presented during the UNFF Ad Hoc Expert Group (AHEG) in November, 2008 and were well received. The needs and gaps identified lin the analysis (types of forest investment, sources of investment, and geographic gaps) have helped to structure the debate during the design of the Forest Investment Program within the Climate Investment Funds, and identify gaps that the FIP could fill. 6. Progress against milestones and indicators The project was completed on schedule. The final report was submitted by the consultant in October 2008. 7. Opportunities and/or obstacles/issues related to implementation of activity None 8. Changes to original activity time schedule

Months

Activities 1 2 3 4 5 6 Number of Months Finalizing of TOR for mapping exercise (intended) 1

(actual) Contracting Consultant (intended)

(actual) Inception Report (intended)

(actual) Comments on Inception Report (intended)

(actual) Submission of Draft Report (intended)

(actual) Comments on Draft Report (intended)

(actual) Submission of Draft Final Report (intended)

(actual) Presentation of Preliminary Findings (intended)

(actual)Feedback from CLI (intended)

(actual) Submission of Final Report (intended)

(actual)

9. Next steps

There are no next steps associated with this activity, as it was meant to influence a specific process, but demand for the associated publication continues and therefore will continue to be shared. 10. Replication potential Not applicable 11. Budget Table 1: Funding Overview

PROFOR Funding $88,624.80 Other sources (list) $ TOTAL $88,624.80 PROFOR Funds used to date $88,624.80 Total Funds used to date $88,624.80

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Analysis of Forest Land Use Options for Reducing Carbon Emissions from Deforestation and Degradation in Indonesia Start date: August 2007 Status: CLOSED but administratively active in 2008Proponent: World Bank 1. Geographical focus Indonesia 2. Objective Degradation (REDD) in Indonesia‘ s major forest land use types and to identify pilot projects for testing the potential of “avoided deforestation” payments. The project contributed directly to PROFOR’s goals of fostering innovative financing mechanisms in ways that will contribute to poverty alleviation. It also fitted well with the three main thrusts of the World Bank’s 2002 Revised Forest Strategy which are: to maximize the potential of sustainably managed forest resources to contribute to poverty alleviation, to sustainable economic growth and to protection of environmental services of both local and global importance. 3. Activity and output: progress to date This PROFOR project aimed to analyze the reduced level of emissions that could be anticipated through introduction of improved land use and land conversion strategies in five forest land use categories , namely: protected areas , production forests , forests being managed to provide raw material for the pulp and paper industry , for the oil palm industry and in peat lands. The Project made a significant contribution to financing a series of multi stakeholder studies that assessed options for adjusting historical approaches to forest conservation , sustainable forest management and forest land use. These studies analyzed how adjustment to forest conservation and land use strategies could lead to quantified and verifiable reduction in carbon emissions. Strong emphasis was given to linking climate change REDD initiatives to conservation and development strategies that would address poverty alleviation by engaging local communities as beneficiaries of programs for effective management of protected areas, for sustainable management of natural forests and for establishment by local communities and small holders of plantations and agro forestry crops such as oil palm on non forest and degraded lands. 4. Findings (either preliminary or final) The studies identified a series of “Readiness” capacity building activities for implementation beyond COP 13. These include strengthening of capacity for measurement and monitoring of forest change and carbon emissions, further exploration of potential carbon buyers and sellers, strengthened capacity for more effective forest governance (aimed especially at containment of illegal logging). They also include provision for further development and testing of REDD payment distribution mechanisms. They identified criteria and principles for selection of pilot projects for implementation between 2009 and 2012 that will create opportunities to test the effectiveness of those land use strategies that would be most likely to slow deforestation and degradation . The nine completed studies cover the following topics:

Measurements , Standard Setting and Monitoring REDD Scenarios and Carbon Markets Payment Mechanisms: Distribution and Institutional Arrangements. Improving the Management of Protection Forests through Reduced Emissions from Deforestation and

Degradation Strategies to Reduce Carbon Emissions from the Pulp , Paper and Plantations Sector Strategies to Reduce Carbon Emissions from the Oil Palm Sector Production Forest Land Use Strategy REDD Implementation on Peatlands. Consolidated Executive Summary: Comparative Strategies for Reducing Emissions from Deforestation

and Degradation

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5. Impacts The studies have contributed to improved understanding of climate change/ forest land use relationships. They provided input to the deliberations of a multi stakeholder Indonesia Forest Climate Alliance that includes representatives of Government ministries, Indonesia’s National Forest Council ( DKN), local communities, leading conservation agencies, forest and agribusiness-related private companies, and leading policy researchers. They have contributed substantive input to ongoing discussions relating to establishment of a World Bank managed Forest Carbon Partnership Facility. They have also provided useful input to a World Bank initiated and ongoing independent consultative process that is reviewing possibilities for creation of a Forest Investment Program that would build on the experience already gained through the Bank’s earlier partnerships with PROFOR, The World Bank/WWF Alliance and the EU funded Forest Law and Governance Program ( FLEG). 6. Progress against milestones and indicators Mid August 2007—Technical Workshop of experts and stakeholders involved in development of methodology met to discuss studies design, finalization of consultants, timetable for implementation, budgetary requirements and proposed arrangements for coordination of the emerging results. Mid August 2007 through end October—Study was implemented Late October 2007—Meeting of study experts stakeholders held to discuss emerging conclusions. Mid-November 2007—Meeting of stakeholders held to consolidate conclusions and to develop recommendations for follow up action in a format suitable for presentation to COP 13 December 2007 – Draft of consolidated study was launched through two-day Ministry of Forestry event at COP 13 in Bali July 2008 – Final consolidated report was delivered to the Ministry of Forestry 7. Opportunities and/or obstacles/issues related to implementation of activity Past governance in Indonesia was marked by a lack of accountability to local communities and local governments, and one of today’s challenges for the Indonesian forestry sector is to overcome this legacy. A decentralization process has significantly increased the role of local governments in decision making, but in the forestry sector the process has also been characterized by a large amount of uncertainty over roles and lack of local government preparedness. The Indonesia Forest Climate Alliance and Indonesia’s National Forest Council ( the DKN), have demonstrated Indonesia’s ability to bring together a diverse range of local and national forestry stakeholders and DKN’s potential to influence national forest land use policy . To summarize, the project has created a springboard from which to launch a pipeline of follow up readiness and demonstration project activities that will link REDD strategies to cross-cutting issues such as land-use, poverty alleviation protection of indigenous peoples; rights and governance. 8. Changes to original activity time schedule As the project had to deliver its main product in time for the COP 13 meeting, it was necessary to adhere to the planned time schedule. Despite the ambitious scope, it was possible to do so.

Months

Activities 1 2 3 4 5 6 7 8 9 10 11 12 Number of Months

Development of TORs assembling Study Teams

(intended and actual) Workshops to ensure GOI ownership and proposed scope of studies

(intended and actual) Drafting of Studies

(intended and actual) Workshops to review findings

(intended and actual) Consolidation of presen-tations for COP 13 and elaboration post COP13

(intended and actual)

9. Next steps The completed studies were synthesized into presentations that were made by GOI to COP 13. Further elaboration of the findings from the process of consultation and analysis undertaken prior to COP13 will took place during the first half of 2008.

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The Ministry of Forestry then began the process of converting the consolidated report and other inputs into a Ministerial regulation on Indonesia’s REDD program and a Ministerial decree establishing a REDD Commission. The Ministry is also discussing the payment distribution mechanism with the Ministry of Finance and the regulation of the REDD market with the National Climate Change Council. The regulation and decree have yet to be signed by the Minister as of December 2008. At the same time, REDD demonstration project preparation has gone ahead through the initiatives of local governments, NGOs, carbon trading firms, and the private sector. At least 16 REDD demonstration projects are in various stages of preparation, covering several million hectares of forest throughout Indonesia. Demonstration activities in Aceh and Central Kalimantan have received financing and there is strong political support for specific projects in other provinces. Readiness is also moving forward. The GOI has prepared a proposal for implementation of a Forest Resource Information System as part of Indonesia’s National Carbon Accounting System. Australia has pledged up to A$10 million for readiness investments with additional support coming from Japan and GTZ. Indonesia is also planning to join the Forest Carbon Partnership Facility and will submit an R-Plan during the first quarter of 2009. Finally, the country will be represented on the working group that is designing the Forest Investment Program. 10. Replication potential The experience gained by Indonesia in developing recommendations for an REDD program has relevance for many of the other rain forest countries that are interested in pursuing possibilities for accessing REDD Credits. The Indonesian experience and consolidated report have been shared with the Forest Carbon Partnership Facility, ASEAN and other countries outside the region through conferences, meetings and individual contacts/requests for information. The groundwork prepared by Indonesia has helped to accelerate readiness preparation in many of these countries. 11. Budget Table 1: Funding Overview

PROFOR Funding $ 125,000 Other sources (list) $ 200,000

Carbon Fund WB/WWF Alliance

Government of Indonesia TOTAL $ 325,000PROFOR Funds used to date $ 136,236.97 Total Funds used to date $ 209,251.75

DFID and Ausaid provided $1,000,000 for additional TA, consultation and communication activities in preparation of COP13 and for immediate follow-up

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Cross-Sectoral Cooperation

Measuring Biodiversity and Forest Conservation Production and Livelihood Outcomes in Multifunctional Agriculture: Forest Landscape Mosaics Start date: July 2007 Status: CLOSED Proponent: Ecoagriculture 1. Geographical focus Global; with field activities in The Congo, Ghana, Uganda, Kenya, Honduras and Indonesia. 2. Objective Developing methods for assessing the performance of landscape mosaics that integrate conservation, production and livelihoods goals 3. Activity and output: progress to date The project has completed the four activities specified in the Concept Note, May 4th, 2006, as follows: 1. We jointly developed a framework protocol that accommodates different methodological approaches for

measuring and monitoring key landscape attributes that are common to ecoagriculture and forest landscape conservation and restoration, consisting of Principles for Stakeholder Negotiation and Adaptation of Landscape Level Outcomes. See Annex 1. From this common framework we explored two complementary methodological approaches in parallel:

a. IUCN, with WWF and other Forest Landscape Restoration (FLR) partners, focused on mechanisms for

facilitating multi-stakeholder negotiations to help diverse stakeholder groups realize a shared negotiated vision of a given landscape, and on locally adapted methodologies and indicators to measure progress and outcomes at the landscape scale.

b. EP, in collaboration with institutions from diverse sectors in its Landscape Measures Initiative (LMI) International Steering Committee (ISC), has developed an outcome measures toolkit to assist multi-stakeholder groups define and measure the impacts of ecoagriculture/ forest landscape restoration on productivity, local livelihoods, institutions, and ecosystem services and biodiversity. The online toolkit is referred to as the Landscape Measures Resource Center (LMRC) and can be accessed at www.landscapemeasures.org. The LMRC presents a range of potentially useful indicators and methods that may be of interest to different stakeholders in mosaic landscapes, and a process for adapting these and inventing others. It also provides a platform for interaction among users and developers of stakeholder-based landscape measures approaches and tools. Tools that have been developed through the FLR-EP collaboration are posted on the LMRC.

IUCN and EP teams collaborated directly in this work in one landscape, on the Uganda side of Mt. Elgon. After the Mt Elgon meeting members of the two groups continued to interact through email and telephone exchanges, and at a meeting associated with the Convention on Biological Diversity (CBD) – see Activity 2 below. In this way, findings have been pooled with a view to improving and validating an overall landscape measures approach that is rooted in stakeholder engagement (Stakeholder-based Landscape Measures Approach).

2. Workshop to review lessons learned and draft methods: IUCN convened a workshop at the Convention

of Parties (COP) of the CBD, attended by Ecoagriculture Partners and representatives of other international and national initiatives that are attempting to address integrated land-use planning and conflict resolution from a landscape perspective. Deliberations are incorporated into the discussion on findings, below. See Annex 2 for a brief report on the workshop.

3. Field testing and adaptive management: Landscape assessment methods and indicators developed

under the common framework (Stakeholder-based Landscape Measures Approach) have been tested in seven landscapes: Mt Elgon, Uganda; Kijabe, Kenya; River Mubuku in the Rwenzori region of Uganda; Southwestern Ghana; The Congo Basin (Central African Republic, SE Cameroon and N. Congo); Malinau, Indonesia (East Kalimantan); and Esparza, Costa Rica. See Annex 3 for details.

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4. Integration and dissemination of lessons learned and case study outcomes. Project participants in the

study landscapes assessed their experience in developing outcome measures through landscape-based workshops, and through Ecoagriculture Leadership courses in E. Africa and Costa Rica. Lessons learned from the application of specific methodological approaches in all 7 landscapes are presented in Annex 4: Lessons Learned from Field Testing Landscape Assessment Methods. The cases are presented also in the LMRC (www.landscapemeasures.org Case Study section), and they are highlighted in a special issue of ArborVitae that has been drafted (see Annex 5) to summarize the EP-IUCN experience with the Stakeholder-based Landscape Measures Approach.

4. Findings There is a divergence between advocates of expert-driven indicator sets and those who favor participatory processes. We conclude that tracking must draw upon both participatory methods and some use of expert tools such as remote sensing. Experts have had trouble reaching agreement on indicators and it has been difficult to reconcile the different sectoral and disciplinary perspectives. Expert driven approaches discourage buy-in from local stakeholders. Locally constructed indicator sets are less scientifically rigorous, but lead to more meaningful debates and probably better decisions. Landscape is an inherently visual construct. It follows that visually-aided approaches to assessing landscape performance are appealing to stakeholders. It is evident that they engender interest and ‘buy-in’. Visualization processes and tools that have met with success include stakeholder-scripted video, artist-aided drawings of scenarios and desired outcomes, repeat photography, ground-based photo-monitoring, and GIS maps. Visually-aided conceptual tools/models are more useful in conveying complex ideas than written or numeric descriptions. Structured discussion of scenarios is a key element in stakeholder assessment and negotiation. It is important to develop and discuss best and worst case scenarios to engage stakeholders in meaningful conversation. There is some evidence that discussion around scenarios directly affects behavior. Simulation modeling approaches to generating scenarios work well provided the commitment and skills are available locally. Training on participatory modeling of landscape processes found enthusiastic support for the dissemination of the technologies. Visualization approaches to generating scenarios have been the most successful and have been enthusiastically adopted by stakeholder groups in several landscapes. These techniques are user friendly and get rapid local buy-in. Scoring tools based on 5 to 10 point scales, and using radar diagram output formats, are simple and adaptable ways to engaging stakeholders in assessing multiple dimensions of landscape performance simultaneously. GIS can be a relatively efficient, cost-effective means of creating compelling information about land pattern and what it means about relationships between production, conservation and livelihood conditions. Its use is now becoming much more widespread and local government authorities in many of the areas where Ecoagriculturel Partners and IUCN/LLS have been working have GIS capacity. As satellite data sources become increasingly available at lower costs, most projects are also making use of these technologies and many local government and resource management agencies now use satellite remote sensed images. In situations where local capacity in these sectors is limited it will be worthwhile in to invest in training and provision of software. If local institutions are to continue landscape scale interventions autonomously they will need GIS and remote sensing skills and materials. As a complement to, or where local capacity to use GIS and remote sensing is not available, we have found ground-based spatial analysis methods that include repeat photo-monitoring to be promising. Potentially these can be integrated with remote GIS data when they are available. But these simple ground-based techniques are powerful in their own right as ways of getting the buy-in of local stakeholders. Sophisticated techniques tend to empower the technicians and disempower local people. Optimal results are obtained by the deployment of an appropriate mix of these techniques according to local circumstances. In all of the landscapes where EP and IUCN have worked we have used all of the above techniques. A great deal of innovation is occurring in stakeholder-oriented approaches to multifunctional landscape assessment and management, which inevitably will lead to better integration between participatory and expert, science-based approaches. Concerted effort is needed now, to marry the two approaches. Skilled facilitation is essential.

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It is not realistic to expect measurement (or knowledge generation in general) to substantially aid stakeholders in negotiating landscape level land use agreements in the absence of enforceable regulatory frameworks. The capacity to enforce agreements and resolve conflicts and the presence of technically competent sectoral institutions is an essential ingredient in these processes. This capacity is lacking in many LDCs and building it is essential as a basis of any improved NRM. 6. Opportunities and/or obstacles/issues related to implementation of activity The process of multistakeholder negotiation and the application of many of the techniques for generating indicator sets is time-consuming. As they develop locally relevant monitoring systems, multi-stakeholder groups benefit from regular access to facilitators and people experienced in landscape tracking methods. Rates of change of indicators at a landscape scale are slow and it is necessary to wait for at least a year to make repeat measures to determine if the interventions are having any impact on the ground. Modeling, visualization and spatially-referenced analysis skills need further development. 7. Progress against milestones and indicators

None specified. 8. Changes to original activity time schedule PROFOR authorized a no-cost extension of the project from November 2007 until June 2008 to allow time for a useful level of field testing of key methods. An interim (progress) report was submitted in November. 9. Next steps Publication of Arbor Vitae in September, 2008. On-going development of the LMRC. Capacity development activity organized around LMRC at IUCN World Conservation Congress (WCC), October 2008. Half day learning workshops on modeling of landscapes and on visualization tools are planned for the WCC, as well as a 1.5 hour session on ways to use the LMRC. Joint activity being planned between EP and Livelihoods & Landscapes IUCN in Meso-America, to field test elements of the LMRC in shade coffee producing landscapes of Guatemala. Financial resources provided, capacity development for natural resource professionals in landscapes, worldwide, based on combination of face to face workshops and facilitated distance learning platform. 10. Replication potential Preliminary work is being developed at a number of sites where IUCN and WWF are attempting landscape scale interventions. WWF already is adopting some of these approaches at field locations. The Landscape Measures Steering Committee is committed to replicating viable methods through their various programs. 11. Budget

PROFOR Funding $ 160,000.00 Other sources: EP $ 299,133.40

IUCN $ 45,555.00 Total $ 504,688.40 PROFOR Funds used to date $ 160,000.00 Total Funds used to date $ 504,688.40

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Analyzing Paths to Sustainability in Indonesia: Smallholder Livelihoods and Adaptation Strategies at the Forest Edge Start date: May 2007 Status: ACTIVE Proponent: World Bank 1. Geographical focus East Kalimantan, Indonesia 2. Objective To conduct analytical and descriptive work for a case study in East Kalimantan that will identify economic agents’ behavioral responses around the use of natural resources, including forests and their products, in response to potential economic or energy policy changes. This case study contributes to an agent-based model (see fact sheet, attached) that captures household level behavioral responses. This model is contributing to a larger framework of multi-scale modeling of macro policy changes under consideration at national level. This work is helping national and regional economic development planning agencies to understand better how macro-scale policy reforms can have significant effects (positive and negative) on natural resources and the environment, as well as on the communities that depend on them. In 2008, we received approval also to contribute similar effort toward a case study report for Central Java. 3. Activity and output: progress to date The case study has been developed by consultants based on household surveys and interviews conducted by field teams managed by the Centre for Social Forestry (CSF) at the Mulawarman University in Samarinda, in coordination with CSIRO and World Bank. A draft case study report and a draft ABM modeling scenario report have been prepared. The case study report incorporates information about household adaptation strategies (for example, in response to fuel price changes) and results from an expert consultation workshop to review interim findings. Progress is reported regularly to Bappenas and key stakeholder agencies through status reports, workshops, and working group meetings. Analyses that contributed to the case study included: an overall profile of East Kalimantan, its resources, people and position in national development context; analysis of the population and individuals’ resource use patterns based on a typology of households; and detailed interviews with household representatives to develop behavioral responses (adaptation approaches) for relevant macro policy changes for each typology. The household survey and typology were completed based on queries about livelihood strategies (= What do you do?) and their motivations for choosing these strategies? (=Why do you do what you do?). 3,000 households were surveyed (chosen to be statistically representative) in six districts: Kota Samarinda, Kota Balikpapan, Kabupaten Paser, Kabupaten Kutai Kartanegara, Kabupaten Panajam Paser Utara, and Kabupaten Kutai Barat. Based on cluster analysis, 3 main types of agents were identified, each with several subtypes, for a total of 19 household typologies for the region. Profiles for each household typology were developed based on the characteristics households have in common within each cluster. Then, typologies and behavioral responses were enriched through 560 follow up interviews with a subset of households. All of these results were used to develop behavioral responses functions for households, which contributed to the agent behavior in the model (which also included geographical, socioeconomic, and biophysical data). The model was developed in consultation with a team of ‘champions’ in the National Planning Agency, and training was provided in its use (partially funded by PROFOR). Champions are now working with consultants to fun policy relevant scenarios as a contribution to the Medium Term Development Plan 2010-2014. Some of the scenarios and findings are highlighted in the scenario report. The final case study report will synthesize highlights from the behavioral/survey component of the work and from the modeling/scenario component of the work. 4. Findings (either preliminary or final) Based on the workshop response, regional policy makers are now engaged in the modeling process from the ground up. The classification of typologies and sets of behavioral response strategies for each household typology for each macro policy change can already directly help policy makers to understand potential responses to macro level policies. Policy makers anticipate that the agent-based model will benefit local governments (specifically the provincial level economic development planning agency (Bappeda)) by providing an analytical tool for understanding the consequences of macro-policy decisions on dynamics within a region. The model is spatially explicit, enabling

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users to analyze economic, social and environmental dynamics between and within districts. The model provides a tool for regional planning in the context of macro-policy decisions and will quantify results in diagrams, and visualize results in maps. The policy makers are intrigued by the prospect of a modeling approach that allows them to ‘test run’ new policy scenarios and so avoid unforeseen consequences especially for the environment and natural resources. A baseline analysis of users’ impressions and project impact (May 2008) found that policy makers were engaged in the process, interested in the results, and ready to commit staff time to apply the models and incorporate findings into NR planning processes. 5. Impacts The project has already had a distinct impact on communication pathways and institutional relationships between Bappenas and its counterpart agencies. Through the case study, policy makers at regional and national level are fully engaged in a dialogue process in the real world application of this multi-tier modeling approach. Working groups regularly bring together officials from planning and economic development agencies at regional and national level. These working group meetings and workshops provide a venue where ideas from the field can be discussed at the center, where central officials can see real impacts in the field, and where the modeling framework can focus their attention on specific policies and responses of economic agents managing resources. Trained champions at central and regional level are now developing policy papers based on scenario analysis as a contribution to the medium term planning process and document, to be published by BAPPENAS in CY 2009. This growing engagement will be important for building the findings and results into the national development planning and budgeting context over the next year. The GoI’s medium-term planning cycle calls for a new strategic plan for the period 2010-2014, corresponding to the term of the next elected government. The project is contributing to the GOI policy framework which is aiming to promote environmental sustainability, which has already been incorporated as a thematic focus in the WB Country Partnership Strategy for Indonesia. Furthermore, both the macro and micro side (case study and agent based modeling) of the project will be able to say useful things about the impact of policies related to climate change (change in energy pricing, etc), so that will be another benefit that goes beyond the original intention when the project was conceived. 6. Progress against milestones and indicators

ProgressActivities Kalimantan Central Java

Household Survey Design Completed Completed Household Survey Implemented Completed Completed Detailed Interviews Completed Completed ABM Model Design Completed Completed Biophysical Model Components Completed In Progress Agent Response Functions Completed In Progress Training on Agent Based Model Completed Completed Draft and Trials of Model Completed Development of Scenarios In Progress Modeling Analysis and Policy Papers In Progress

7. Opportunities and/or obstacles/issues related to implementation of activity In addition to the opportunity to link to the national planning process (outlined above), there is also an opportunity to link case study results to ongoing discussions about climate change (mitigation, adaptation, and energy use) in the national development planning process. For example, the field based component (being supported by PROFOR) will contribute to an understanding of agents’ energy use and adaptation efforts, as well as their responses to relative price changes, including forest use. The typology work will also provide a richer understanding of societal winners and losers in the face of climate change impacts or mitigation policies (e.g., higher fuel prices). These linkages have been recognized and a workshop and other venues are planned for presenting results. The project has faced and overcome some difficulties in establishing engagement with key agencies, which has now been overcome, partly due to the long term placement of senior project scientist and Indonesian liaison officer in close proximity to BAPPENAS. Of course, the project must also compete for agency attention against other priority issues, including increasing fuel prices, and now financial crisis. This increases the relevance of the project results and raises the profile among policy makers, but also increases pressure for time bound results. Linking results to development planning process and climate change discussions is raising the profile of the work.

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8. Changes to original activity time schedule Efforts have been made to shorten the timeline for delivery of major outputs to coincide with Bappenas’ need for inputs to the National Development Planning Process by end 2008. The GOI planning schedule was tightened, then relaxed, so that most detailed discussions are now planned for CY 2009, though planning workshops are already beginning at BAPPENAS. Some delays in field work and survey results have delayed model development and readiness for policy analysis. Delays in scheduling training and workshops with Government counterparts have delayed the scenario development and analysis process.

Months (begin May 2007)

Activities 1- 2

3- 4

5- 6

7- 8

9- 10

11- 12

13- 14

15- 16

17- 18

19- 20

21- 22

23- 24

No of Months

Activity 1: Household Survey Design, Implementation and Interviews (intended)

(actual)

Activity 2: ABM Model Design: Biophysical, Agent Response Functions, Coding, Calibration (intended)

(actual)

Activity 3: Training on Agent Based Model, Develop network of champions (intended)

(actual)

Activity 4: Development of Scenarios: Model runs, trials, workshops (intended)

(actual)

Activity 5: Modeling Analysis and Policy Papers (intended)

(actual) 9. Next steps Draft case study report for Kaltim (previously submitted) to be refined and improved, taking account of

highlights of the scenario modeling results. Late January 2009. Draft scenario synthesis report to be developed and refined in collaboration with BAPPENAS champions.

For delivery in late January 2009. Intensive workshops on modeling results with Bappenas Core Team, Regional Planning Agencies, Regional

Universities. Dec – Jan 2009. Completion of ABM model for Central Java (Jepara) and similar process of training, workshops, scenario

development, and case study report. Feb-Jun 2009. Presentation of results at national and regional workshops with more senior policy makers. April - May

2009. 10. Replication potential Based on the success and interest in the Kalimantan case study, BAPPENAS and the working groups are now actively developing a second case study site in Central Java (Jepara and surrounding districts). This area was chosen because it represents a more populous and urbanizing area on Java, but still with strong links to natural resource use, both through timber and rattan imports for the furniture industry and through the fisheries industry, which is a key livelihood strategy for many households. This case study will expand the reach of the approach and provide a useful regional cross check that will strengthen confidence in the results. The project has also stimulated demand for more work and case studies, as well as capacity development activities to improve the uptake of the model and results and the ability of staff to use the models and report on policy relevant scenarios. This is being considered as a potential “Phase 3” of the project. 11. Budget Table 1: Funding Overview (as of Dec 16)

PROFOR Funding $200,000

GOI (in kind) $10,000

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AUSAID – CSIRO $220,000

TOTAL $430,000

PROFOR Funds Used To Date $ 194,191

Total Funds Used to Date $ 414,191

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Knowledge Management and Networking

Mapping Emerging Ecosystem Service Markets Matrix

Start date: January 2008 Status: CLOSED Proponent: Forest Trends 1. Geographical focus

Global 2. Objective Using the Ecosystem Marketplace Matrix as the framework, take an in-depth look at the state of environmental markets through a comprehensive scoping study. Make the Ecosystem Marketplace Matrix the premier source of information on ecosystem service markets. 3. Activity and output: progress to date The in-depth study resulted in a state-of-the-art PES Matrix chart, report, and summary brief. The Matrix chart and report were both published on the Ecosystem Marketplace homepage along with a feature article summarizing the Matrix publications immediately following the Katoomba XII in DC – historically a period of high traffic to the site. The Matrix feature article, chart, and report will be featured in the EM newsletter in the coming week. The Ecosystem Marketplace receives an average of 35,000 visitors a month (1 Million hits) and the newsletter goes out to over 5,000 subscribers. During the Katoomba event, two Matrix posters were displayed and print copies of the report handed out. 4. Findings The findings are broad in scope and complex. A few examples of trends uncovered during this process are: - While most PES markets are growing at approximately 10 to 20 percent a year, the carbon markets are

skyrocketing at 200 to 700 percent a year. The Voluntary Carbon market, where the lion’s share of the land use and land use change and forestry project take place, is growing at a faster rate than the regulated carbon market.

- The participants and experts surveyed believe existing markets have the potential to address in a significant way the global environmental issues of biodiversity loss, water pollution and climate change – but may not be living up to their potential. One major stumbling block continues to be transparent information and capacity

- To achieve the sustainable management of ecosystem services, PES schemes must be designed and implemented carefully, intelligently, and adaptively.

- An important aspect across all of these markets will be to ensure that the communities and small scale producers are able to actively participate and benefit from ecosystem service markets. This will mean developing instruments to provide support, such as aggregation services to communities, shaping regulation to engage local small-scale providers, and clarifying tenure and user rights associated with these new opportunities.

5. Impacts The matrix and its mothership the Ecosystem Marketplace are building on this work and launching a Forest Carbon Portal. We have already reached out to the World Bank and its proposed FCP and Forest Investment Fund. This set of analysis is also the basis of a workshop we are hosting with DfID on ecosystem service markets and poverty reduction. 6. Opportunities and/or obstacles/issues related to implementation of activity

The main challenge with this activity is staying current in a landscape of payments and markets that are still emerging, changing rapidly, and spread out across geography and institutions. The opportunity we are capitalizing on is using the Matrix to create an infrastructure network of specialized and regional expert to maintain a flow of market information in this rapidly shifting landscape.

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7. Progress against milestones and indicators We achieved all goals: updated the matrix from expert consultation, and published and disseminated the tool in a

variety of formats (chart, report, and summary brief). 8. Changes to original activity time schedule

N/A 9. Next steps In the coming months we would like to develop an on-line interface for the PES Matrix from which a user may easily browse the complex information as well as log on and contribute information and knowledge. Also, we have shared the matrix with Bloomberg and they have used it to begin to develop their strategy around covering these markets. We hope to build on this relationship to partner with their expertise to further develop the living document strategy for this work. 10. Replication potential There is great replication potential for this tool, specifically at the country or regional levels. Currently the Matrix is made up of high-level summary information for the global ecosystem service markets. Using this same architecture to map regional or country payments and markets could be tremendously useful for policy makers, land owners, and local and foreign investment. 11. Budget

PROFOR Funding $28,000 Other sources $0 Total $28,000 PROFOR Funds used to date $28,000 Total Funds used to date $28,000

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Global Forest Leaders Forum Start date: June 2008 Status: CLOSED Proponent: World Bank

1. Geographical focus Global 2. Objective The world’s forests have immense potential to address the causes and consequences of climate change and achieve the Millennium Development Goals (MDGs). Carbon emissions from deforestation contribute significantly to climate change and, in turn, climate change has significant impacts on the vitality of forests. Deforestation is rooted in a complex web of direct and underlying causes, which, in many cases, may also lie outside the forest sector. To maximize the potential of sustainably managed forests to contain global warming, a network of private sector and civil society leaders united in seeking solutions to the challenges facing global forests called The Forests Dialogue (TFD) [in which the World Bank participates] began a series of dialogues in Bali in 2007. The objective of the dialogue was to develop key issues from which to base a future outcome-oriented, dialogue-based initiative that would strive to make a real impact on future climate arrangements. Convinced that the solutions to climate change must be closely integrated with strategies for overcoming poverty, economic development, and environmental protection the World Bank participated robustly in this process. To finalize the dialogue process and to obtain buy-in from political, institutional, private sector and civil society leaders, the World Bank, with PROFOR’s support, agreed to host a forum of forest leaders. World Bank participation at the highest levels lent legitimacy to the process. it will be necessary to reach understandings on a number of politically difficult policy reforms. These include effective forest governance and land tenure reforms that will protect indigenous peoples’ rights and facilitate community participation. It will also be necessary to create an enabling environment to sustain measures against deforestation and attract responsible private sector investment. 3. Activity and output: progress to date Activity 1: Here, five Briefing Notes were prepared to guide discussions during the main activity, The Global Forest Leaders Forum (see immediately below). The briefing papers were entitled:

- A Coherent Approach to Forests and Land Use - Main Drivers of Deforestation Outside the Forest Sector - Addressing the Demand for Good Forest Governance for REDD - Tenure, Property and Carbon Rights - Financing Capacity Building in Counties and Stakeholder Groups

Activity 2: The main output under this activity was a conference entitled The Global Forest Leaders Forum held at the World Bank from September 16-17, 2008. It convened approximately 250 CEOs of forest industrial companies, heads of leading conservation agencies and local community organizations, leaders of indigenous people groups, representatives of financing institutions and private foundations to review forest sector strategy options for addressing climate change through multi-stakeholder approaches. Organized by the World Bank and The Forests Dialogue and with the co-sponsorship of the International Union for Conservation of Nature (IUCN), the World Business Council for Sustainable Development (WBCSD), the World Resources Institute (WRI), the Forum developed (building on progress made through the three TFD preceding dialogues) and adopted a common vision for the positive role sustainable forest management can play in addressing climate.

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4. Findings (either preliminary or final) Five guiding principles were developed and compiled as a consensus statement supported by the very diverse group of stakeholders through a facilitated process . Throughout the Initiative, participants agreed on a number of key messages. They include: Forests have a unique ability to simultaneously reduce greenhouse gas emissions, capture carbon, and

reduce the vulnerability of people and ecosystems to climate change. Forests store a vast amount of carbon. Conserving this store by reducing deforestation and forest

degradation and promoting sustainable forest management must be one the world’s highest priorities. Restoring forests and planting new forests greatly increases the forest-based carbon store. Sustainably

managed forests not only retain their carbon, they also support the livelihoods of millions of rural people and deliver many products and ecosystem services such as the clean water and wildlife habitat that societies need.

Sustainably harvested forest products and wood-based bioenergy can reduce greenhouse gas emissions by substituting high emission materials such as petrol, steel or concrete for neutral or low emission, renewable ones.

For forests to fully achieve their potential to address climate change their governance must be improved and processes established to empower disenfranchised people, including Indigenous Peoples.

To more effectively communicate the forest’s climate change mitigation opportunities, the group established five principles that should guide all those concerned including climate negotiators:

1. Ensure that forest-related climate change options support sustainable development in both forest-rich and forest-poor countries.

2. Tackle the drivers of deforestation that lie outside the forests sector. 3. Support transparent, inclusive, and accountable forest governance. 4. Encourage local processes to clarify and strengthen tenure, property, and carbon rights. 5. Provide substantial additional funding to build the capacity to put the above principles into practice

5. Impacts Several leaders at the Forum pledged to incorporate the five guiding principles into their own forestry work. The statement, entitled Beyond REDD: The Role of Forests in Climate Change was presented to the press and thousands of participants at IUCN’s World Congress in Barcelona Spain in October 2008 and at UNFCCC COP 14 in Poznan, Poland in December 2008. Members of TFD also met with Brazil’s Minister Figueiredo Machado who is tasked with creating the first working draft of the document to be signed at for the CoP 15. He was very supportive of the dialogue process’s efforts and appreciated the unique depth and breadth of this consensus Statement. 6. Progress against milestones and indicators The conference took place as planned. 7. Opportunities and/or obstacles/issues related to implementation of activity None 9. Changes to original activity time schedule

Months

Activities 1 2 3 4 5 6 Number of Months Activity 1: Preparation of briefing notes (intended and actual)

1

Activity 2: Conference Preparation (intended) (actual) 4

Conference and follow-up (intended) (actual) 1

9. Next steps

The statement is still being shared with various stakeholders in a desire to ensure that the principles appear in negitations at COP15. 10. Replication potential

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Not applicable 11. Budget Table 1: Funding Overview

PROFOR Funding $ 116,809.68 Other sources (list) WB $ 10,852 TOTAL $126,852.68 PROFOR Funds used to date $$ 116,809.68 Total Funds used to date $126,852.68

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Developing Certified Forests, Forest Products and Markets for China: International Conference Start date: February 2008 Status: CLOSED Proponent: Rainforest Alliance 1. Geographical focus China 2. Objective The objective of the conference is to provide perspectives on the current state of certified forest products for China. We will explore the drive towards sustainable forest management inside China and those countries that supply China and explore opportunities to positively support the journey towards more sustainable forest management and development of certified forest products markets (domestic in China and international export). 3. Activity and output: progress to date The recent “Developing Certified Forests, Forest Products, and Markets Conference,” which took place on April 2-3, 2008 in Beijing, China brought together more than 45 speakers and over 240 people from industry, government, financial institutions, NGOs, and academia. The conference aimed to explore to market trends for certified forest products focusing on the important role China plays both domestically and globally. Over the course of the conference landowners, manufacturers and retailers and goverments illustrated their innovations in supply/sourcing strategies . We learned from companies like Tembec, the worlds largest owner of Forest Steardship Council-certified land, and a major supplier of pulp, about the ways certification has helped them secure their supply chain, promote their products, improve their processes and grow their reputation as an industry leader. The Chinese governement State Forestry Administration showed us how they engage multiple stakeholders to address social and environmental issues within the forestry sector. We also heard from companies like B&Q Stores and Nature Flooring, a Chinese flooring company,about their motives for committing to certifying their supply chains.. 4. Findings (either preliminary or final) Key trends that emerged at the conference include: 1. The role of government is increasing. Iternational initiatives like FLEG (Forest Law Enforcement and

Governance) address the global problems with illegal timber, while national governments can drive demand by enacting procurement policies that favor certified products, and influencing responsible performance through tax and customs policies and by increasing support of certification as a solution.

2. Businesses now recognize that certification is a powerful way to manage risk in the supply chain, access emerging “green” markets, be responsible to their shareholders and stakeholders (workers, communities), and stay competitive in a volatile and dynamic business climate.

3. Third-party independent certification of sustainable practices has trumped unverified company claims, industry-backed compliance schemes and even government regulatory mechanisms as a way to build trust among customers, buyers and shareholders.

5. Impacts All conf participants are contacted on a regular basis to keep them informed about developments and opportunities with FSC and other certification schemes. The awareness is expanding and we aim to be involved in many levels of the growth of Certification in China and the rest of the Asia Pacific region. Rainforest Alliance is currently the premier provider of certification training in the world, as well as supporting companies to develop sustainable, certified supply chains. 6. Progress against milestones and indicators The conference impacted an "A-list" of conference speakers and panel members and attendees from industry/government/academia both within China and internationally (conference will be conducted in both English and Chinese). We expected 200 people and hosted more than 240. Expected outcomes included improved knowledge and more in-depth dialogue in the following areas:

Global and regional forests & forest products markets

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Greening forest management & supply chains China’s role in the forestry & the forest products marketplace Demand drivers for Chinese forest products Sourcing and supply perspectives in furniture, paper/packaging and construction sectors Support for development of certified forests and products for China Current/promising buyer approaches Current/promising supplier approaches

All the above was achieved. 7. Opportunities and/or obstacles/issues related to implementation of activity Some resistance by the Chinese government tried to limit our use of media to cover the event, but in the end we achieved tremendous coverage in a variety of publications. Other than this all went smoothly. Media attending: International Media: Business Week, Reuters, Associated Press Chinese Media: Beijing Times, China Youth Daily, China Business News, International Business Daily, China Securities News, Asian Business Leader, China Economic Herald, China Enterprise News, China Green Times, Industry News Department, China Green Pictorial See links to articles already written about the event:

a. http://www.chron.com/disp/story.mpl/ap/fn/5668189.html b. http://paper.cs.com.cn/html/2008-04/07/content_14995052.htm c. http://www.forestry.gov.cn/subpage/content.asp?lm_Tname=zwgk&lmdm=4000&f_lmname=%E6

%94%BF%E5%8A%A1%E5%85%AC%E5%BC%80&id=4343 8. Changes to original activity time schedule No changes to original schedule 9. Next steps We hope to engage funding to support the further pursuit of sustainable supply chains by companies either funding this goal internally or perhaps as a condition of development funding they receive. We think a followup conference in the next 18 months that focuses on key industry sectors, convening to discuss supply issues in pursuing certified sources is in discussion. 10. Replication potential This is possible but would require a concerted amount of funding to launch this project again in another region. 11. Budget Table 1: Funding Overview

PROFOR Funding $12,000 Partners $25,000 Stora Enso $5000 Suzano Corp $2500 SINO FOREST 5000 HSBC 5000 TUITIONS 10000 Total $64,500Total PROFOR funds used to date $12,000 Total Funds used to date $ 64,500

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Cameroon Sector Policy Reform Report Start date: February 2008 Status: CLOSED but administratively active during 2008Proponent: World Bank 1. Geographical focus Cameroon 2. Objective The study analyses the process of forest sector reform in Cameroon: its phasing, technical, political, and economic drivers, achievements, shortcomings, and lessons learned. It highlights the role the Bank played in the process, and address concerns expressed by various actors at different junctures. The past 10 years of forest sector reforms yielded many important lessons and are likely to significantly influence the work of the WB in this delicate area of policy dialogue with its client countries especially in Africa. 3. Activity and output: progress to date Consultation with the Government representatives, the major donor partners, NGOs (WWF, IUCN, REM,

CED) as well as research institutes (CIFOR, CIRAD). Editing of report in English Translation of the Report in French Editing of the report in French

4. Findings (either preliminary or final) Most of the forest countries in Central Africa region (COMIFAC members) are in the process of reforming their forest sector. Cameroon’s reform record particularly rich and important because it is more advanced than comparable processes in other countries and has inspired reforms neighboring countries important. The reports presents findings in several important areas: community forestry, industrial forestry, sectoral governance, to name a few. 5. Impacts

The report has not been published yet and discussing its impact is too early. It is expected that this work will cast more light on complex reform processes and will allow accelerating progress and avoiding mistakes both in Cameroon and other countries. .

6. Progress against milestones and indicators

External Review Editing/re-writing of report in English Translation of the Report in French Editing of the report in French

7. Opportunities and/or obstacles/issues related to implementation of activity The activities for which PROFOR support has been sought did not present particular difficulties The challenges of the Cameroon forest reform process are highlighted in the body of the report soon to be published.

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8. Changes to original activity time schedule

Months (in the Form of a Bar Chart)

Activities 1 2 3 4 5 6 7 8 9 10 11 12… Number of Months

Activity 1: Consultations (GoC, partners, NGOs, etc)

(intended) (actual) 1

Activity 2: Editing, adaptation and lay out of the english version

(intended) (actual) 2

Activity 3: Translation in French

(intended) Same (actual) 1

Activity 4: Publication Subtotal (2) (intended)

Same(actual) 4

Overall Total

9. Next steps

Publication of Report in English Publication of Report in French Presentation of Report in Cameroon Dissemination of Report .

10. Replication potential. Significant Potential is confirmed the report will be published as part of the Directions in Development Series of the World Bank. The publication will carry the PROFOR LOGO

11. Budget

Table 1: Funding Overview PROFOR Funding $ 45,000 Other sources (list) $25,000 BB – CMU , Capacity Development $15,000BNPP $30,000 TOTAL $115,000 PROFOR Funds used to date $32,799,45 Total Funds used to date $ 90,522.45