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Scandinavian Society of Forest Economics Saariselkä, Finland Tuesday, 14 August 2007 COEVOLUTION OF FINNISH FORESTRY AND SOCIETY FROM PREINDUSTRIAL TO INDUSTRIAL FORESTRY Dr Matti Palo Independent Scientist [email protected] www.metla.fi/pp/MPal/

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Page 1: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Scandinavian Society of Forest Economics Saariselkä, Finland Tuesday, 14 August 2007

COEVOLUTION OF FINNISH FORESTRY AND SOCIETY FROM PREINDUSTRIAL TO INDUSTRIAL FORESTRY

Dr Matti Palo Independent Scientist [email protected] www.metla.fi/pp/MPal/

Page 2: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION
Page 3: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

WORLD FORESTS, SOCIETY AND ENVIRONMENT

BOOKS DURING WFSE

1. Palo, M. and Mery, G. (eds.) 1996. Sustainable Forestry Challenges for Developing Countries. Kluwer Academic Publishers, Environmental Science and Technology Library Vol. 10. Dordrecht/Boston/London. 384 p.

2. Palo, M. and Uusivuori, J. (eds.) 1999.World Forests, Society and Environment. Kluwer Academic Publishers. World Forests Book Series Volume I. Dordrecht/Boston/London. 404 p.

3. Michie, B. and Kin, S. 1999. A global study of regional trade flows of five groups of forest products. WFSE­Research Program. Helsinki. 79 p.

4. Palo, M. (ed.) 1999. Global Scenarios and Policies on Forest Transitions and Carbon Fluxes. UNU/WIDER. World Development Studies 15, Helsinki. 166 p.

5. Palo, M. and H. Vanhanen (eds.). 2000 (forthcoming). World Forests from Deforestation to Transition? Kluwer Academic Publishers. World Forests Book Series Volume II. Dordrecht/Boston/London. 218 p.

6. Palo, M., Uusivuori, J. and Mery, G. (eds.) 2001.. World Forests, Markets and Policies. Kluwer Academic Publishers. World Forests Book Series Volume III. Dordrecht/Boston/London. 405 p.

7. Wardle, P, Jansky, L., Mery, G., Palo, M., Uusivuori, J. and Vanhanen H. (Eds.) 2003. World forests, society and environment – Executive Summary. United Nations University. Tokyo. 53 p. METLA 2000

Page 4: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Matti Palo, 14 August, 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHODS AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

Page 5: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

WORLD FORESTS, SOCIETY AND ENVIRONMENT

METLA

Page 6: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Forest area in the tropics 1960­2050

By Palo and Lehto 2000. Data sources: FAO FORIS 1999, World Bank 1998, United Nations 1998.

0

500

1000

1500

2000

2500

1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Updated Forest area Low Pantropical Scenario High Pantropical Scenario Low Continental Scenario High Continental Scenario Low Trend

High Trend

(million hectares)

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Total forest cover (% of land area) (number of countries in brackets)

> 70 % (8) 60 to 69 % (10) 50 to 59 % (15) 40 to 49 % (16) 30 to 39 % (22) 20 to 29 % (34) 10 to 19 % (21) 0 to 9 % (42)

(1)

Total forest cover as % of total land area in 168 countries in 2000 (updated 2000 data of FAO SOFO 2005).

Page 8: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

in 2003

Page 9: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Korean Society of Forest Economics Conference, 23 June 2004 Jeju Island, Korea

SUSTAINABLE FORESTRY TRANSITIONS IN COSTA RICA, FINLAND, JAPAN AND KOREA: CASE STUDIES AND COMPARATIVE ANALYSES

Research Project Plan for 2004­2006 by

Matti Palo, Yeo­Chang Youn, SNU and Guillermo A. Navarro CATIE, Costa Rica

Page 10: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

PURPOSE OF THE RESEARCH PROJECT

• The first purpose of this research project is to analyse the evolution of closing down deforestation and transitions to Sustained Yield Forestry and towards Sustainable Forest Management in the four successful case study countries. The aims are both to describe and explain these evolutions separately, but with the same methodology, in each country..

• The second purpose is to make a comparative analysis of the case study countries in order to find out the possible generalizations against our theoretical framework of common underlying causes of overcoming deforestation and transition by the successful cases and of continuing deforestation by the unsuccessful cases.

• The third purpose is to make policy proposals based on our study findings in support of closing down deforestation and of supporting transitions of countries towards sustainable forestry in our contemporary world.

• The fourth purpose is to effectively disseminate our findings and contribute to human capacity building, particularly for governments in developing countries, intergovernmental organizations, ODA­bodies, academics, NGOs and media.

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CONLUSIONS 1 • EFFECTIVE DE JURE LEGISLATION TO SUPPORT SUSTAINED

TIMBER YIELD IN FINLAND WAS MOBILIZED IN 1917, INTENSIFIED IN 1928 AND COMPLETED IN 1950.

• DE FACTO SUSTAINED TIMBER YIELD/INCREASING GROWING STOCK WAS ACHIEVED IN FINLAND BEFORE THE DE JURE TRANSITION, ALREADY FOR A CENTURY AGO !!

• THIS TRANSITION WAS A CONSEQUENCE OF INCREASES IN VALUE OF FORESTS BASED ON INCREASING EXPORT DEMAND, A GREAT LAND REFORM 1776­1900, FOREST SERVICE SINCE 1851 AND FORESTRY COLLEGE SINCE 1858. • OUR HYPOTHESES ON THE KEY ROLES OF POLICIES, MARKETS, COMMUNITY AND KNOWLEDGE INSTITUTIONS, PROPERTY RIGHTS AND THE VALUE OF FORESTS FOR SUSTAINABILITY BECAME STRENGTHENED. • AS PRESUMED INTERNATIONAL POLICIES HAD FUNDAMENTAL IMPLICATIONS AT THE NATIONAL LEVEL IN STRENGTHENING THESE PROCESSES PRIMARILY AT THE BILATERAL LEVEL.

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CONLUSIONS 2 ­ THE FINDINGS OF THE CASE STUDY OF FINLAND CAN BE GENERALIZED AGAINST ITS THEORY. THE SAME THEORY IS RELEVANT ALSO FOR TROPICAL DEFORESTATION. THEREFORE, WE MAY DRAW PILOT INFERENCES ALSO ON THE TROPICS. ­ ACCORDINGLY, A BALANCED APPLICATION OF POLICY, MARKET, KNOWLEDGE AND COMMUNITY INSTITUTIONS AS WELL AS STRONG AND CLEAR PROPERTY RIGHTS WITH INCREASING VALUE OF THE REMAINING FORESTS ARE FUNDAMENTAL FACTORS IN DECELRATING TROPICAL DEFORESTATION. ­ MOST TROPICAL FORESTS ARE RUN BY SOCIALISTIC FORESTRY UNDER CORRUPTION AND OPEN ACCESS, WHERE DEFORESTATION IS CONTINUING WITHOUT ANY ’INVISIBLE HAND’­EFFECT OF INCREASING VALUE OF REMAINING FORESTS. ­ AFTER 62 YEARS OF FAO­ACIVITIES AND TWO DECADES OF GLOBAL FOREST POLITICS NO DECELERATION IN TROPICAL DEFORESTATION HAS BEEN OBSERVED. SUSTAINED TIMBER YIELD IN TROPICS WILL REMAIN A DISTANT DREAM

Page 13: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Matti Palo, 14 August, 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHOD AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

Page 14: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Box 1. The typology of preindustrial forestry, industrial forestry and postindustrial forestry (Mather 2001, Pirot et al. 2000)

1. PREINDUSTRIAL FORESTRY: subsistence; open access prevailing ­traditional knowledge ­common property – closed access in restricted scale ­colonization: state ownership–open access­deforestation

1a. Traditional pre­industrial forestry: hunting, fishing, shifting cultivating, gathering of firewood, food, medical plants, etc.

1b. Agrarian forestry: clearing of forests for agriculture, agro­forestry, grazing of cattle, fodder, shelter belts, other support to agriculture

2. INDUSTRIAL FORESTRY: sustained or progressive yield of timber; private property prevailing, industrial use of wood prevailing

­ scientific forestry knowledge, forester education: paradigm formation 3. POSTINDUSTRIAL FORESTRY: sustainable forest

management/forest ecosystem management ­ scientific ecological, sociological, forestry knowledge, forest ecosystem

education, paradigm transition; prevailing private ownership, common and public properties in minority.

Page 15: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

SUSTAINABLE FOREST

MANAGEMENT SYSTEM

Property Property Institutions Institutions

Market Institutions

Knowledge Institutions

Community Institutions

State Regulatory Institutions

Figure 3. Roles of property rights, knowledge and local communities along with state and markets in support of sustainable forestry.

Page 16: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Resource Management Regimes

• Open access

• Common property

• Public property

• Private property

Page 17: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Guidelines for design of property rights

• Full specification of rights & obligations • Separability of rights • Transferability • Exclusivity • Investment security • Enforceability • Equitable distribution • Flexibility

Page 18: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

COEVOLUTION

”TWO EVOLVING POPULATIONS COEVOLVE IF AND ONLY IF THEY BOTH HAVE A SIGNIFICANT CAUSAL IMPACT ON EACH OTHER’S ABILITY TO PERSIST” (Murman 2003)

Page 19: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Ecological conditions

Socio­econo­ mic factors

Political factors

Cultural factors

Forest ecosystem

Forestry Forest policy

Forest information

External world Wars, technology, output and input markets, regimes, paradigms, conventions, know­how, exemplars

Finland

FORESTRY SECTOR

SOCIETY

Figure 4. Model of coevolution of forestry sector and society towards sustainability with impacts from the external world (modified from Palo 1993). Key: solid line = causal impact, dashed line = information flow.

Page 20: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

The EuropeanAssociation of Environmental History Conference Matti Palo, 17 February 2005, Firenze

LONGITUDINAL CASE STUDY (Yin 2003):

­ ”Studying the same single case at two or more different points of time.”

”How certain conditions change over time, and the desired time intervals to be selected would reflect the presumed

stages at which the changes would reveal themselves.”

­ A cross of a contemporary case study and a historical study?

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Page 22: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

DEFORESTAT ION AND

DEGRADATION

DIRECT LOCAL AGENTS

AGR ICULTURE

COLON IZATION

SH IFT ING CULTIVAT ION

GRAZING

FUELWOOD

LOGG ING

INFRASTRUCTURE

HUMAN W ELFARE

FOREST ­BASED DEVELOPMENT

INTERNATIONAL TRADE

HUMAN POPULAT ION DOMEST IC DEMANDS

TECHNOLOGY ACCESSIB IL ITY

INTERNAT IONAL POLIT ICS

Po lit ical instability o f goverm ent

Va lue o f forests

Tenure : asymmetric , uncertain

Corruption

Market fa ilu res

Government fa ilu res

Pub lic incentives

Traditional comm ons

Open access

Access ib le forest area C lim ate and o ther

na tural factors

Energy produc tion and phys ical infrastructure

Agricu ltu ral p roduction

+

­

+ +

­

­ +

­ +

+ +

+

+ +

+ ­

+

+

­

+

­

+ +

+ +

+

­

+

+

+

+

+

­

+

+

+

+

­

+

­ ­

­

+

+

+

+ +

Cum

ulative causation forces

National political factors

International factors

Page 23: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Matti Palo, 14 August, 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHOD AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

Page 24: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Foto 1.

Page 25: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Figure 5a. Shifting cultivation in Finland in 1860 (Heikinheimo 1914) .

Page 26: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Evolution of forestry legislation 1240­1917 in Finland with population and income per capita

1200

1300

1400

1500

1600

1700

1800

1900

0 1 2 3 4 5 6 Total Population (millions)

1917 FORESTRY ACT: NO DEFORESTATION/ STATE FORESTER ADMINISTRATION 1886 FORESTRY ACT: NO DEFORESTATION/ POLICE ADMINISTRATION 1858 Forestry College 1857 Liberalization of steam­powered sawmills 1851 STATE FORESTRY ADMINISTRATION; REGULATION OF SAWMILLS 1805 Forestry act 1793 Forestry act 1789 Liberalization of farmer forest owners 1757 GRAND LAND REFORM (IMPLEMENTATION 1775­1935) 1739 Liberalization of sawmills 1734 MOST COMPREHENSIVE FORESTRY ACT 1683 Forestry acts supervised by Department of Mining 1647 FIRST COMPREHENSIVE FORESTRY ACT 1634 First forestry (hunting) administration

1577 Protecting oak from shifting cultivation 1542 King Gustav Vasa declared wildernesses as state forests

1442 King Kristoffer: beginning of state forests; control of hunting; protection of fruit trees/oaks, beeches and apple trees

1347 King Magnus Eriksson: village common forest; illegal use of forest

Oral traditions prevailed before laws in writing and forestry conflicts were solved at provincial tings

GNP/capita (Volume Index, from 1860­) 0 100

Autonomous

Finland under

Russia

Kingdom of S

weden

Page 27: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Box 5. THE PRIVATE FORESTRY ACT OF 1917

1. ”Forest shall not be logged in such a way that natural regeneration would be risked.”

2. ”Young coniferous forest should not be logged in conflict with rational thinning.”

3. Implementation by provincial forester, provincial and municipal forestry boards, subordinated to State Forest Service.

4. Obligatory reporting to a municipal forestry board about forthcoming commercial logging.

5. Sanctions by provincial forestry boards: logging ban; the value of illegally logged timber lost, if the ban is violated.

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Vested interests Reference group External groups

Acceptance of the law

Implementation

Motivation of local actors

Group activity

Changes in socio­economic and technological environment, corruption

Law

Changed behavior of local actors

Changes in the forest

Figure 5. A model of transition from de jure to de facto situation under a new law (modified from Stjernquist 1973).

Page 29: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Evolution of forestry legislation in independent Finland with population and income per capita

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

0 1 2 3 4 5 6 Total Population (millions)

1998 LIBERALIZATION OF FOREST HOLDING MARKET 1997 GENERAL FORESTRY ACT; NATURE CONSERVATION ACT; forest improvement act amendment 1994 State forest administration renewal as a business enterprise 1993 Forest taxation; amendment in private forestry supervision 1990 Amendment in Private Forestry act

1982 Forestry Faculty University of Joensuu

1976 National parks

1967 Amendments in Private Forestry and Forest Improvement acts 1964 Minimum wage regulation for loggers 1961 Fresh water act

1951 Forest Management Associations

1943 Reforestation of degraded forests

1938 National parks 1935 Roundwood scaling act 1928 Private Forestry act: no deforestation/ semi­private forester administration 1928 Forest Improvement act; protection of housing of loggers 1924 Regulation of forest holding market 1922 Colonization act; forest taxation act 1918 Liberalization of tenants 1917 Forestry act: no deforestation/ state forester administration

GNP/capita (Volume Index, 1926=100) 0 1000

Page 30: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Matti Palo, 14 August 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHOD AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

Page 31: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Total Population

0

1

2

3

4

5

6

1750 1800 1850 1900 1950 2000

GNP/capita

Total P

opulation (m

illions)

0

200

400

600

800

1000

GNP/capita (V

olum

e Index, 1926=100)

Growing stock of timber, total population and GNP/capita in Finland

Growing stock of timber

Data sources: Statistics Finland, Bank of Finland.

Data source: Myllyntaus et al. 1998.

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0

20

40

60

80

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990

mill. m 3

Drain

Increment

Increment and drain of growing stock of trees in Finland, 1900­2000

Data source: Sevola 2000.

Page 33: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

FROM DEFORESTATION TO TRANSITION VIA MARKETS

0

100 Forest area /total land area (% ) Deflated Stumpage Price (USD)

Natural + Plantation forest (% )

Natural forest (% ) Plantation forest (% )

Price of standing timber or fuelwood (USD)

Economic development

Page 34: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Figure 5b.Shifting cultivation in Finland in 1913 (Heikinheimo 1914)

Page 35: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Foto 2.

Page 36: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

The same site as in Photo 7a but in the 1990s (Erkki Oksanen).

Page 37: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Foto 3.

Page 38: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

SUSTAINABLE FOREST

MANAGEMENT SYSTEM

Property Property Institutions Institutions

Market Institutions

Knowledge Institutions

Community Institutions

State Regulatory Institutions

Figure 3. Roles of property rights, knowledge and local communities along with state and markets in support of sustainable forestry.

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METLA 2003

TERMINATING DEFORESTATION 1 (1870­1920)

1. PROPERTY INSTITUTIONS

­ GREAT LAND REFORM (isojako) 1776­

­ LIBERATION OF FARMER FOREST OWNERS 1789

2. STATE REGULATORY INSTITUTIONS ­ STATE FOREST SERVICE (metsähallinto) 1851­

­ GENERAL FORESTRY LAW 1886 (weak de facto impact)

3. MARKET INSTITUTIONS (most important) ­ INCREASING REAL STUMPAGE PRICES AND VALUE OF FORESTS

­ INCREASING INCOMES TO FARMER FOREST OWNERS

­ INCREASING AGRICULTURAL PRODUCTIVITY

­ DECREASING PRICES AND INCREASING IMPORTS OF GRAINS

­ INCREASING LOGGING AND GENERAL LEVEL OF INCOME

­ INCREASING INDUSTRIALIZATION AND URBANIZATION

­ SLOWING DOWN OF POPULATION GROWTH

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TERMINATING DEFORESTATION 2 (1870­1920)

4. COMMUNITY INSTITUTIONS

­ Finnish Society of Forestry (Finska Forstsällskapet) 1879­ ­ Two state sponsored consultants to support private forestry 1898­ ­ Society of Silviculture (Metsänhoitoyhdistys) Tapio 1907­ ­ Local Forestry Management Associations 1907­

5. KNOWLEDGE INSTITUTIONS

­ Two textbooks on forestry by Finns 1830 and 1851 ­ 20 Finnish students graduated in forestry in Tharant 1850­1860 ­ College of Forestry 1858­1907 ­ University School of Forestry 1908­ ­ Forest ranger schools 1875/1905­

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Real stumpage prices of saw logs in Finland, 1920­1960

Fi markka/cubic foot in 1964 prices

2.0 %/a

0,00

0,50

1,00

1,50

2,00

1920 1930 1940 1950 1960

Data source: Sivonen 1970.

Page 42: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Matti Palo, 14 August 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHOD AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

Page 43: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

0

20

40

60

1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990

Industrial wood

Total

Non­industrial wood

mill. m 3

Utilization of roundwood in Finland, 1860­2000

Data source: Sevola 2000.

Page 44: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Matti Palo, 14 August 2007

OUTLINE

1. INTRODUCTION

2. THEORETICAL FRAME

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

Page 45: Scandinavian Society of Forest Economics Saariselk ä, Finland … · 2007-08-28 · Scandinavian Society of Forest Economics Saariselk ä, Finland Tuesday, 14 August 2007 COEVOLUTION

Ecological conditions

Socio­econo­ mic factors

Political factors

Cultural factors

Forest ecosystem

Forestry Forest policy

Forest information

External world Wars, technology, output and input markets, regimes, paradigms, conventions, know­how, exemplars

Finland

FORESTRY SECTOR

SOCIETY

Figure 4. Model of coevolution of forestry sector and society towards sustainability with impacts from the external world (modified from Palo 1993). Key: solid line = causal impact, dashed line = information flow.

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Figure 7.The share of forest products of the value of total exports from Finland 1860­1996 (Seppälä et al. 1980, Statistics Finland 1983­1997).

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Total value of exports of Finland, 1970­2003

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INTERNATIONAL FOREST POLITICS IN 1700­1959

­ INTERNATIONAL WARS AND COLONIZATION FOR TIMBER HUNT BY BRITAIN, FRANCE, GERMANY, USA, ITALY, JAPAN, RUSSIA, NETHERLANDS, BELGIUM IN PARTICULAR

­TRANSFERS OF GERMAN FORESTRY PARADIGM TO RUSSIA, DENMARK, INDIA, JAPAN, NORWAY, SWEDEN, FINLAND, USA, CANADA, etc.

­ EXCHANGES OF STUDENTS AND TEACHERS, OTHER CONSULTANCES, RESEARCH FINDINGS AND TEXTBOOKS

­1892 IUFRO WAS ESTABLISHED AMONG THE GERMAN SPEAKING NATIONS ­ 1927 WORLD FORESTRY CONGRESS I IN ROMA

­ IN 1932: TIMBER TRADE MEETING OF EXPERTS IN GENEVE BY THE LEAGUE OF NATIONS ­ IN 1932: COMITE INTERNATIONAL DE BOIS CIB WAS ESTABLISHED IN VIENNA

­ 1935 IN COPENHAGEN AND 1936 IN HELSINKI: CONVENTION OF THE EUROPEAN TIMBER EXPORTERS

­1936 WORLD FORESTRY CONGRESS II IN BUDAPEST ­1939 IN BERLIN: CENTRE INTERNATIONAL DE SYLVICULTURE CIS

­ 1939 WORLD FORESTRY INSTITUTE IN THARANT/HAMBURG ­1945 IN ROMA: FAO ESTABLISHED A DIVISION OF FORESTRY AS A WORLD FOREST

STATISTICS CLEARING HOUSE ­­ 1948 IN HELSINKI: WORLD FORESTRY CONGRESS III: ”PROGRESSIVE FORESTRY”

­1954 IN DEHRA DUN, INDIA: WORLD FORESTRY CONGRESS IV

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Labor input in forestry

Figure 15. Labor input in Finnish forestry since 1860.(Elovirta 1987)

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Felling a tree by a two­man manual saw (for big trees) in the early 20 th century. Most logging took place during winter.

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Bucking a tree by one­man manual saw of wooden frames, which was used for small trees. Work efficiency study is going on.

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Felling a tree with steel­framed manual saw.

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Debarking a log with a manual tool (petkele).

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Extraction of logs by a horse and sledge. Snow and frost lowered the costs of extraction.

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Metsätalo/Forest Building in 1939 in the downtown Helsinki.

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Matti Palo, 14 August 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHOD AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

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CONLUSIONS 1 • EFFECTIVE DE JURE LEGISLATION TO SUPPORT SUSTAINED

TIMBER YIELD IN FINLAND WAS MOBILIZED IN 1917, INTENSIFIED IN 1928 AND COMPLETED IN 1950.

• DE FACTO SUSTAINED TIMBER YIELD/INCREASING GROWING STOCK WAS ACHIEVED IN FINLAND BEFORE THE DE JURE TRANSITION, ALREADY FOR A CENTURY AGO !!

• THIS TRANSITION WAS A CONSEQUENCE OF INCREASES IN VALUE OF FORESTS BASED ON INCREASING EXPORT DEMAND, A GREAT LAND REFORM 1776­1900, FOREST SERVICE SINCE 1851 AND FORESTRY COLLEGE SINCE 1858. • OUR HYPOTHESES ON THE KEY ROLES OF POLICIES, MARKETS, COMMUNITY AND KNOWLEDGE INSTITUTIONS, PROPERTY RIGHTS AND THE VALUE OF FORESTS FOR SUSTAINABILITY BECAME STRENGTHENED. • AS PRESUMED INTERNATIONAL POLICIES HAD FUNDAMENTAL IMPLICATIONS AT THE NATIONAL LEVEL IN STRENGTHENING THESE PROCESSES PRIMARILY AT THE BILATERAL LEVEL.

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CONLUSIONS 2 ­ THE FINDINGS OF THE CASE STUDY OF FINLAND CAN BE GENERALIZED AGAINST ITS THEORY. THE SAME THEORY IS RELEVANT ALSO FOR TROPICAL DEFORESTATION. THEREFORE, WE MAY DRAW PILOT INFERENCES ALSO ON THE TROPICS. ­ ACCORDINGLY, A BALANCED APPLICATION OF POLICY, MARKET, KNOWLEDGE AND COMMUNITY INSTITUTIONS AS WELL AS STRONG AND CLEAR PROPERTY RIGHTS WITH INCREASING VALUE OF THE REMAINING FORESTS ARE FUNDAMENTAL FACTORS IN DECELRATING TROPICAL DEFORESTATION. ­ MOST TROPICAL FORESTS ARE RUN BY SOCIALISTIC FORESTRY UNDER CORRUPTION AND OPEN ACCESS, WHERE DEFORESTATION IS CONTINUING WITHOUT ANY ’INVISIBLE HAND’­EFFECT OF INCREASING VALUE OF REMAINING FORESTS. ­ AFTER 62 YEARS OF FAO­ACIVITIES AND TWO DECADES OF GLOBAL FOREST POLITICS NO DECELERATION IN TROPICAL DEFORESTATION HAS BEEN OBSERVED. SUSTAINED TIMBER YIELD IN TROPICS WILL REMAIN A DISTANT DREAM

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Forest area in the tropics 1960­2050

By Palo and Lehto 2000. Data sources: FAO FORIS 1999, World Bank 1998, United Nations 1998.

0

500

1000

1500

2000

2500

1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Updated Forest area Low Pantropical Scenario High Pantropical Scenario Low Continental Scenario High Continental Scenario Low Trend

High Trend

(million hectares)

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DEFORESTAT ION AND

DEGRADATION

DIRECT LOCAL AGENTS

AGR ICULTURE

COLON IZATION

SH IFT ING CULTIVAT ION

GRAZING

FUELWOOD

LOGG ING

INFRASTRUCTURE

HUMAN W ELFARE

FOREST ­BASED DEVELOPMENT

INTERNATIONAL TRADE

HUMAN POPULAT ION DOMEST IC DEMANDS

TECHNOLOGY ACCESSIB IL ITY

INTERNAT IONAL POLIT ICS

Po lit ical instability o f goverm ent

Va lue o f forests

Tenure : asymmetric , uncertain

Corruption

Market fa ilu res

Government fa ilu res

Pub lic incentives

Traditional comm ons

Open access

Access ib le forest area C lim ate and o ther

na tural factors

Energy produc tion and phys ical infrastructure

Agricu ltu ral p roduction

+

­

+ +

­

­ +

­ +

+ +

+

+ +

+ ­

+

+

­

+

­

+ +

+ +

+

­

+

+

+

+

+

­

+

+

+

+

­

+

­ ­

­

+

+

+

+ +

Cum

ulative causation forces

National political factors

International factors

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REFERENCES 1

­ Palo, M., Youn, Y­C. and Navarro, G. 2004. Evolution and transitions to sustainable forestry in Costa Rica, Finland, Japan and Korea. A Research Plan. Seoul. 37 p.

­ Palo, M. 2006. Coevolution of forestry and society in Finland: from preindustrial to industrial forestry. In Rauhalahti, M. (Ed.): Essays on the history of Finnish forestry. Vuosilusto 2004­2005. Metsähistorian seura ry. Lusto. Punkaharju. Finland.

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References 2

­ Palo, M. 2004. POVERTY REDUCTION BY TROPICAL FORESTS: rhetoric or a viable option? In Sim, H. C., Appanah, S. and Youn, Y. C. (Eds.): Forests for poverty reduction: Opportunities for Clean Development Mechanism, environmental services and biodiversity, p. 7­ 24. FAO Regional Office. Bankok.

­ Palo, M. and Lehto, E. 2005. Poverty reduction by tropical forests? In Tyynelä, T. and Pelkonen, P. (Eds.): In search of a total value for forests. Silva Carelica 50, p. 44­61.

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Matti Palo, 14 August 2007

OUTLINE

1. INTRODUCTION

2. THEORY, METHOD AND DATA

3. SUSTAINED YIELD OF TIMBER ­ Transition de jure 1917­1950 ­ Tansition de facto 1900­1910

4. TRANSITION TO INDUSTRIAL FORESTRY

5. ROLES OF FOREIGN AND DOMESTIC FACTORS

6. CONLUSIONS AND DISCUSSION

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European Association of Environmental History Conference, 17 February 2005 Firenze

KIITOKSET MIELENKIINNOSTA! THANKS FOR YOUR ATTENTION! Dr Matti Palo Independent Scientist [email protected]

www.metla.fi/pp/MPal/

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Foto 4.

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YOUR QUESTIONS &

COMMENTS ?