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Small Scale, Large ImpactsTransforming Central and West African Forest Tenure and Industry to Improve Sustainable Development, Growth, and Governance

Augusta Molnar, Peter Mbile, Solange Bandiaky,

Rob Kozak, Kerstin Canby, and Marina France

THE RIGHTS AND RESOURCES INITIATIVE

The Rights and Resources Initiative (RRI) is a strategic coalition comprised of international, regional, and community

organizations engaged in development, research and conservation to advance forest tenure, policy and market re-

forms globally.

The mission of the Rights and Resources Initiative is to support local communities’ and indigenous peoples’ struggles

against poverty and marginalization by promoting greater global commitment and action towards policy, market and

legal reforms that secure their rights to own, control, and benefit from natural resources, especially land and forests.

RRI is coordinated by the Rights and Resources Group, a non-profit organization based in Washington, D.C.

For more information, please visit www.rightsandresources.org.

THE UNIVERSITY OF BRITISH COLUMBIA

The University of British Columbia Faculty of Forestry is committed to meeting future challenges in forestry through

in-depth, cutting edge research. UBC’s forest education is keeping pace with changing social values and an increas-

ingly knowledge-based forest sector. For more information, please visit www.forestry.ubc.ca.

FOREST TRENDS

Forest Trends is a Washington D.C.-based international non-profit organization. It’s mission is four-fold: to expand

the value of forests to society; to promote sustainable forest management and conservation by creating and captur-

ing market values for ecosystem services; to support innovative projects and companies that are developing these

markets; and to enhance the livelihoods of local communities living in and around those forests. For more information,

please visit www.forest-trends.org.

Rights and Resources Initiative

Washington DC

Small Scale, Large Impacts © 2010 Rights and Resources Initiative.

Reproduction permitted with attribution

The views presented here are those of the authors and are not necessarily shared by coalition partners or by DFID, the Ford Foundation, the Ministry for

Foreign Affairs of Finland, Norad, SDC, or Sida, all of whom have generously supported this work.

Photography Credit: Justin Bull, 2007 (Kumasi, Ghana)

RRI PARTNERS

RRI SUPPORTERS

for people and forests

ACICAFOC

Small Scale, Large ImpactsTransforming Central and West African Forest Tenure and Industry to Improve Sustainable Development, Growth, and Governance

AUGUSTA MOLNAR, PETER MBILE, SOLANGE BANDIAKY, ROB KOZAK, KERSTIN CANBY, AND

MARINA FRANCE

CONTENTS

LIST OF BOXES, FIGURES, AND TABLES VI

ACRONYMS AND ABBREVIATIONS VII

ACKNOWLEDGMENTS VIII

PREFACE VIIII

1. INTRODUCTION 1

2. THE TENURE TRANSITION IN CENTRAL AND WEST AFRICA 3

2.1 THEEXISTINGSYSTEMOFTENUREINCENTRALANDWESTAFRICA 3

2.2 IMPLICATIONSOFTHETENURETRANSITION 5

3. THE FOREST ECONOMY IN CENTRAL AND WEST AFRICA 7

3.1 THEROLEOFTHEINDUSTRIALCONCESSIONSSECTORINTHEREGION 7

3.2THEROLEOFSMFEsINTHEFORESTECONOMY 12

4. LIMITATIONS OF THE INDUSTRIAL CONCESSIONS MODEL: ISSUES AND ALTERNATIVES 16

5. TRANSITIONS IN TENURE AND MARKETS: NEW OPPORTUNITIES FOR AFRICA 20

5.1THEGLOBALANDDOMESTICMARKETPLACE:ANEWBALANCEOF

LARGEANDSMALLENTERPRISEANDOWNERSHIP 20

5.2 WHATRANGEOFENTERPRISESEMERGEWHENFOREST-TENUREREFORMS

RECOGNIZECOMMUNITYANDLOCALRIGHTSTOFORESTS? 23

6. TRANSFORMING THE AFRICAN FOREST INDUSTRY TO ADVANCE DEVELOPMENT,

GROWTH, AND GOVERNANCE 27

6.1SUMMARYANALYSIS 27

6.2CHALLENGESANDRECOMMENDATIONSFORMOVINGFORWARD 28

ANNEX: KEY RRI ATEMs BRIEFS AND RELATED PUBLICATIONS 31

ENDNOTES 33

V

VI

LIST OF BOXES

BOX1.ASHORTHISTORYOFCONCESSIONAIRESINAFRICA 11

BOX2.“INFORMAL”NTFPsAREBIGBUSINESSINCENTRALANDWESTAFRICA 14

BOX3.RESEARCHONECONOMIESDOMINATEDBYRAWMATERIALEXPORTSQUESTIONS

LONG-TERMGROWTH 17

BOX4.AFRICANBUSINESSOWNERSFACEDISTINCTDISADVANTAGESCOMPARED

WITHTHOSEINOTHERDEVELOPINGREGIONS 18

BOX5.COMPARATIVECASEOFMEXICOCOMMUNITYENTERPRISES 23

LIST OF FIGURES

FIGURE1.CHINA’SFORESTPRODUCTIMPORTSFROMAFRICA,BYVOLUME&TYPE 8

FIGURE2.CURRENTEXTENTOFPLANTATION-BASEDEXPORTSFROMTHETROPICS(E.G.,THE

REPUBLICOFCONGO)ANDTEMPERATEREGIONS(E.G.,SOUTHAFRICA),BYVOLUME&ORIGIN 8

FIGURE3.MAJORAFRICANEXPORTERSOFFORESTPRODUCTSTOCHINA,BYVOLUME 10

FIGURE4.VALUEOFEQUATORIALGUINEA’SPRIMARYCOMMODITYEXPORTS 10

FIGURE5.COMPARISONOFFORESTAREASGAZETTEDFORPRODUCTIONANDUNDER

MANAGEMENT,CENTRALAFRICA 11

FIGURE6.SOURCESOFWOODSUPPLYFORGHANA’SDOMESTICMARKET,2005 13

FIGURE7.AVERAGEANNUALGDPGROWTHOFITTOPRODUCERCOUNTRIESVSNON-ITTO

PRODUCERCOUNTRIES,1975AND2004 17

FIGURE8.CAMEROON’SWOODEXPORTSBYDESTINATION&TYPE 18

FIGURE9.GOVERNANCEINDICATORS,ITTOPRODUCERCOUNTRIESVSOTHERDEVELOPING

COUNTRIES 19

FIGURE10.ACOMPARISONOFCHINA’SWOOD-BASEDEXPORTSTOAFRICAANDAFRICA’SWOOD-BASED

EXPORTSTOCHINA 21

LIST OF TABLES

TABLE1.ENGLISHANDFRENCHTENURECONCEPTSANDTERMS 5

TABLE2.DIRECTEMPLOYMENTINTHEFORMALSECTOR(CONCESSIONS) 22

TABLE3.SOMEKEYFINDINGSONTHECHARACTERISTICSANDSIGNIFICANCEOFAFRICANSMALL-SCALE

FORESTPRODUCTSENTERPRISES 22

TABLE4.SOMEKEYFINDINGSONTHECHARACTERISTICSANDSIGNIFICANCEOFSMFEs 22

LIST OF BOXES, FIGURES, AND TABLES

VII

ACRONYMS AND ABBREVIATIONS

AIDS AcquiredImmuneDeficiencySyndrome

ATEMs AlternativeTenureandEnterpriseModels

CAFT CoopérativeAgroForestièredelaTrinationale

CAR CentralAfricanRepublic

CED CenterfortheEnvironmentandDevelopment,Cameroon

CIB CongolaiseIndustrielledesBois

CIF Cost,InsuranceandFreight

CIFOR CenterforInternationalForestryResearch

CIRAD CenterforRuralandAgriculturalDevelopmentResearch

CFA CentralAfricanFranc

CFE communityforestenterprise

COMIFAC CentralAfricanCommissiononForests

DFID DepartmentforInternationalDevelopment,UnitedKingdom

DLH DalhoffLarsenandHornemanGroup

DRC DemocraticRepublicoftheCongo

ECOWAS EconomicCommunityofWestAfricanStates

FAO FoodandAgricultureOrganizationoftheUnitedNations

FLEGT forestlawenforcement,governance,andtrade

GDP grossdomesticproduct

HIV HumanImmunodeficiencyVirus

ICRAF WorldAgroforestryCentre

IIED InternationalInstituteforEnvironmentandDevelopment

ITTO InternationalTropicalTimberOrganization

IUCN InternationalUnionforConservationofNature

NACO NationalConsultancyonExtensionServices&Training,TheGambia

NGO non-governmentalorganization

NTFP non-timberforestproduct

NORAD NorwegianAgencyforDevelopmentCooperation

PRSP povertyreductionstrategyplan

RRI RightsandResourcesInitiative

SDC SwissAgencyforDevelopmentandCooperation

SIDA SwedishInternationalDevelopmentCooperationAgency

SME small-andmedium-scaleenterprise

SMFE small-andmedium-scaleforestenterprise

SSFE small-scaleforestproductsenterprises

U.N. UnitedNations

U.S. UnitedStatesofAmerica

U.K. UnitedKingdom

VPA voluntarypartnershipagreement

VIII

ACKNOWLEDGMENTS

TheauthorsthankthemanyorganizationsandindividualsinCentralandWestAfricawhocollabo-

ratedonthebackgroundstudiesanddialoguesthatarethebasisofthissynthesisreport.Inparticularwe

recognizethesupportandeffortsofthecasestudyandcontextualstudyauthors,whowerepartofthefirst

phaseofworkonnewenterprisemodelsemergingfromtenurereform(anRRIstrategicanalysisinitiative

called“AlternateTenureandEnterpriseModels”,orATEMS).Theyare:AlainKarsenty,GeneBirikorang,Rob

Kozak,PhilReneOyono,PatricePa’ah,JoelKiyulu,CécileNdjebet,AdewaleAdeleke,Anne-SophieSamjee,

AndrewDavis,DieudonneAlemagi,AndyWhite,BocarKante,MercyOwusuAnsah,CletoNdikumagenge,

FrancisColee,BelmondTchoumba,KanimangCamara,SergeKombo,MartinBiyong,BrigitteAnsom,Samuel

Assembe,GilbertNdzomo-Abanda,andHermannEssoumba.StewartMaginnis,StephenKelleher,JohnHud-

son,MatthiasRhein,PatriceBigombe,AnicetJeanLeonMinsoumaBodo,AlfredBrownell,SamuelNguiffo,

LizAldenWily,andJustinBullwereinstrumentalintheconceptualizationoftheATEMsworkinAfricaandin

organizingworkshopsanddialoguestodefineandadvancethework.

Inadditiontothecasestudiesandcontextualstudies,thissynthesisdrawsonthefollowingthree

workscommissionedbyRRI:Birikorang,G.2007.SummaryOverviewReportoftheStatusofForestIndustry

andTradeinCentralandWestAfrica;Karsenty,A.2007.OverviewofIndustrialForestConcessionsandCon-

cession-BasedIndustryinCentralandWestAfrica,andConsiderationsofAlternatives;andKozak,R.2007.

SmallandMediumForestEnterprises:InstrumentsofChangeintheDevelopingWorld,RRIandUniversityof

BritishColumbia.WeappreciatethestrongfinancialsupportofDFID,SIDA,thecoreRRIfunders(theNeth-

erlands,throughIUCN),andtheorganizationalsupportofIUCN,ICRAF,CIFOR,CIRAD,CameroonEcology,

GreenAdvocates,CenterforEnvironmentandDevelopment,CivicResponse,andtheMinistryofForestsand

Wildlife,Cameroon.WeappreciatetheeditorialcommentsandassistanceofAlastairSarre,JeffreyHatcher

andLopakaPurdy.

VIIII

PREFACE

Africafacesadauntingsetofimmediatechallenges—ahighincidenceanddensityofpoverty,the

continuedspreadofinfectiousdiseasessuchasHIV/AIDS,pocketsofviolentorthreatenedconflicts,anda

numberofcountriesinfragilepost-conflictsituations.Climatechangeisalreadydrivingshiftsinproduc-

tionsystems,andsociallysoundadaptationismademoredifficultbytheinsecurityoflandandresource

tenurethatexistsacrossmuchofAfrica.

Afternearlyhalfacenturyofindependence,manyAfricancountriesareonlynowstartingthetransi-

tiontopostcolonialmodelsoftenureregimesthatclarifyownershipandaccessrightstolandandother

naturalresourcesandenableeffectiveadministration.

Thechallengesfortransformingthesectoraregreat.Forestedcountriesinthetropicshavehighlevels

ofcorruptionandillegallogging,strongvestedinterestsinthestatusquo,andrelativelyweakandpoliti-

callydisempoweredlocalconstituencies.Debatesaboutclimatechangehavebroughtanewglobalfocus

ontheforestsofCentralandWestAfrica,bothfortheopportunitiestheyofferforcarboncapturethrough

incentive-basedavoideddeforestationanddegradationandforissuesaroundadaptationtoclimatechange

andbiodiversityconservation.

Globally,shiftsintheforesteconomiesofotherforestedcountriestowardsnewproductsandmarkets

callintoquestionmuchoftheconventionalwisdomabouttherelationbetweenforestsandeconomic

growth,tenure,andindustry.Indeed,thedominant,formallyprivileged,subsidized,andexport-oriented

industrialconcessionsmodelcontinuestodemonstratedisappointingshortcomingsinitsabilitytodeliver

expectedreturns,ruralgrowth,increasedjobsandservices,anddiversifiedlocalandregionaleconomies.

Inparallel,politicaleconomistsanddevelopmentinstitutionsliketheWorldBankarerethinkingthere-

lationshipbetweenresourceextractionandsustainableandequitableeconomicgrowthanddevelopment.

Inmanyoftheresource-richcountriesofCentralandWestAfrica,thecurrentmodelofforestdevelopment

essentiallydividestheforestintoeitherprotectedareasorindustrialloggingconcessions.Indoingso

itestablishesaco-dependencyinthepoliticaleconomy,wheretherationaleforconventionalprotected

areasistocomplementandoffsetthedamageofindustrialactivitiesandviceversa.Thisresultsinahighly

unequalsituationleavingnorealpoliticaloreconomicspaceforlocalpeopletovoiceorpursuetheirown

landtraditions,aspirations,oreconomicgoals.Further,insuchanalyses,fewdevelopingcountrieswhose

economiesarepropelledprimarilybynon-renewablenaturalresourceextractionandtimberexportsshow

positiveper-capitagrowthtrendstoamorediversifiedeconomy.

DevelopmenteconomistslearnedanimportantlessoninLatinAmericainthe1990s,thateconomic

growthmustbecommensuratelyhigherincountrieswithhighinequalitythaninthosewithrelativelylow

inequality(e.g.China)ifgrowthistoleadtosignificantreductionsinpoverty.Inmostdevelopedforested

countries,small-andmedium-scaleforestenterprises(SMFEs)constitutethemajorityofemployersandthe

largestshareofforest-sectoractivity.Despitetheon-goingconsolidationofbigindustryandbigcapital,

smallholderforestownershipandsmallenterprisespredominate.

Thisreportpresentsabodyofnewevidenceontheformalandinformalforestindustryandmarketin

CentralandWestAfrica.Mostimportantly,thisanalysisshowsthattransitionsinbothregionalandglobal

marketspresentnewandimportantopportunitiesforSMFEs.WhilenumerousacrossCentralandWest

Africa,SMFEsareconstrainedbyregulations,alackofgovernmentrecognitionandsupport,andanuneven

playingfieldthatadvantageslarge,state-sponsoredindustry.

X

PromisingopportunitiesforSMFEsinCentralandWestAfricaincludedomesticandregionalmarkets,

bothofwhichareexperiencingincreaseddemand,andinselectedexportnichesforvaluablenon-timber

andprocessedwoods.SMFEshavealreadycontributedsubstantiallytoequity,forestconservation,and

povertyreduction.Supportingtheirdevelopmentandsuspendingpublicsupportforlarge-scaleindustrial

concessionsshouldbekeyprioritiesofgovernmentsandcivilsocietyacrosstheregion.

ItisourhopethatthisreportcontributestothetransformationoftheforestsectorinAfricatoone

thatnurturessustainabledevelopment,equitablegrowth,anddemocraticgovernance.

AndyWhite

Coordinator,RightsandResourcesInitiative

1

Introduction1Forests have been claimed by the state and

allocated to large industry and protected areas,

for most of modern history, with limited concern

for the rights or benefits of the people living in

and around them. Atenuretransitionunderway

inmanyforestedcountriesinthetropics,which

recognizesgreaterrightsforlocalpeople,has

importantimplicationsforthefuturedevelopment

offorestindustriesandforesteconomies.This

transitionisjustbeginningtoscaleupinAfrica.

Currently,two-thirdsoftheforestsinLatinAmerica

andone-thirdoftheforestsinAsiaarelocally

ownedoradministered—muchofitbycommuni-

ties.Massiveshiftstowardslocalownershipand

managementhaveoccurredinbothregionsover

thepastthreedecades,andthetrendiscontinuing

becauseofthesustaineddemandsofcommunities

andlocalpeopleandthedemonstratedpositiveim-

pactsofsuchshiftsonforestresourcegovernance.

InAfrica,incontrast,statesstillclaimmostforest

ownership—lessthan2%offorestsareofficially

ownedoradministeredbycommunitiesorlocal

people.Therehas,however,beenasignificantde-

volutionofforestrightsinTanzania,Mozambique,

Kenya,andtheSaheliancountries.

In Central and West Africa, administrative

rights over forest management are increasingly

being decentralized to local governments. This

isoccurringinresponsetopoliticalandsocial

developmentssuchasthegreateraccountability

ofcentralgovernmentsbroughtaboutbyreforms,

emergingsocialmovementsrespondingtomore

liberalpoliciesonpoliticalpluralismandfreedom

ofassociation,internationalpressure,andactiv-

ismfromcivil-societyadvocatesandconservation

lobbies.Thisexpansionofopportunityhasspurred

newbusinessenterprisesinruralfuelwoodharvest-

ing,value-addedwoodprocessing,andnon-timber

forestproduct(NTFP)-basedoperations,andnewre-

lationshipsbetweensettledandpastoralpeoples.

Somegovernmentsareseekingtostrengthen

thecapacityoflocalgovernancesystemsandto

dealwithissuessuchaselitecapture,genderand

minorityimbalance,unevensocialcapital,multiple

vestedinterestsoverscarcelandandresources,a

diversityofland-useandsettlementpatterns,and

changingruralaspirations.

In Central and West Africa, customary use

rights over forests, which were weakly supported

in the post-independence forest codes, are now

being re-examined.Typically,statepoliciesand

regulationshavefavoredstatutoryrightsover

customaryrights,therightsofsedentarypopula-

tionsovertranshumantormarginalpopulations,

andtherightsofmenoverwomen.Forest-tenure

reformshaveoftenbeenpartialandcontradic-

tory,1andthestatecontinuestoplayastrong

roleinmanagementdecisions,imposingcomplex

regulatoryframeworksandcontrollinglocalactors’

accesstomarkets.Newexperimentswithcom-

munityforestenterprises(CFEs)areunderway,

however,andthereisgrowingrecognitionofthe

webofcustomarytenureregimesinforestsandfor-

estlandscapes.2Legalreformisactivelycontinuing

inCameroon,Liberia,andtheDemocraticRepublic

oftheCongo(DRC).Regionalpolicymakersare

SMALL SCALE, LARGE IMPACTS2

drawingongrowingexperienceincountrieslike

Tanzania,Niger,Botswana,andGhanaandaretak-

ingnoticeofregionalland-tenurepolicyinitiatives

(e.g.theAfricanUnionLandPolicyInitiative).There

isgrowinginternaldebateonreformmodelsand

theappropriateroleofthestate.3

Transitions in both regional African and

global markets also present new and important

opportunities for small-scale forest management

and enterprises—including for fuelwood and char-

coal, NTFPs, and artisanal timber processing. Local

populationsthatarehighlydependentonforests

forlivelihoodsandincomeshavecomplexharvest-

ing,production,andmarketingnetworks,manyin

informalorofficiallyillegalsectors.Regionaldemo-

graphicsmeanthatdomesticandregionalmarkets

areexpandingmuchmorequicklythanglobal

demandforhigh-qualitylogsandprocessedlumber.

Whilerecoveringfromtheeconomicdownturn,the

conventionalwood-exportsector—longtheprior-

ityfocusofgovernmentsupport—struggleswitha

backwardmovementinvalue-addedexports,mean-

ingthatAfricanproducerscedeprofitsandjobs

createdfurtherupthevaluechaintoChinaand

itsregionalsuppliers.Atthesametime,agrowing

numberofconcessionairesandinvestorsinAfrica

arefromemergingmarketeconomies—China,the

MiddleEast,andSouthandEastAsia—whichfocus

onclientsandmarketsthatarelessconcernedwith

forestequityorsustainabilitythantheconcession-

airestheyarereplacing.4

Tounderstandthepotentialforthetransfor-

mationoftenureandmarketsforpeopleandforest

economiesinCentralandWestAfrica,andthe

opportunitiesthatsuchatransformationpresents

forreachingtheMillenniumDevelopmentGoals,in-

creasingequity,andconservingforests,thisreport:

�� Analyzesexistingconventionalforest

economiesinCentralandWestAfrica,summariz-

ingevidenceoftheircontributiontogrowth,social

development,andemployment;

�� Situatesforesteconomiesinthecontextof

recentmacroeconomicanalysesofextractive

economiesandgrowth;

�� Examineskeytenureandmarkettrendsand

theirimplicationsforpotentialtransformation;

�� Examinesnewevidenceonsmall-andmedium-

scaleforestenterprises(SMFEs),theirpotential

contributiontosocio-economicdevelopment,and

thescopeforexpansion;

�� Examinestherelevanceofglobalexperience

highlightingtheroleofSMFEsandCFEsinecono-

miesandthechangingopportunitiesforenterprise

andtrade;and

�� Reportsonthereflectionsandrecommenda-

tionsemanatingfromaregionalconferenceheld

todeliberateonthenationalandregionalimplica-

tionsofatenuretransformationandthepotential

riseofSMFEs.

This report, from the first phase of an RRI

strategic analysis initiative, Alternative Tenure

and Enterprise Models (ATEMs), synthesizes the

learningfromasetofcriticalanalysestoassessthe

potentialscopeforalternativestotheconventional

industrialconcessionsmodelofforestdevelop-

mentinCentralandWestAfrica.AspartofATEMs,

diversecasestudiesatverydifferentscalesin

CentralandWestAfrica—supportedbybackground

globalanalysesanddrawingonlessonsfrom

outsideAfrica—werecarriedouttoexaminethe

linkbetweentenureandindustry.Theyfoundthat,

givenconducivepoliciesandregulations,SFMEs

canparticipateatmultiplelevelsinthevaluechain,

may(inaggregate)generatemorerevenueandin-

comethanindustrialconcessions,andcantapthe

changingdemandfortimberandwoodproducts

andNTFPsindomestic,regional,andinternational

markets.

A Central and West Africa regional confer-

ence, sponsored by the International Tropical

Timber Organization (ITTO), the Food and Agricul-

ture Organization of the United Nations (FAO) and

RRI, and hosted by the Government of Cameroon,

was held in May 2009todeliberateontheevidence

producedandissuesraisedbyATEMSandtobring

relevantadditionalknowledgetobeartoassess

theirregionalimplications.Theresultingrichsetof

regionalrecommendationsbyregionalstakehold-

ersformpartoftheconclusionsofthisreport.

3

The Tenure Transition in Central and West Africa2

Africa has strong systems of customary land

and forest rights and complex social systems of

usage and management rights. CentralandWest

Africacomprise23countries,330millionpeople,

and1,200millionhectaresofforests5andcontains

closeto50%ofAfrica’snaturalforests.6About90%

ofthecontinent’srainforestsarelocatedinCentral

andWestAfrica,including80%inCentralAfrica.

DRCaloneaccountsfor53%offorestcoverinthe

subregion,anditandthreeothers—CentralAfrican

Republic(CAR),theRepublicoftheCongo(“the

Congo”),andCameroon—accountfor72%.

Morethanthree-quartersofAfrica’sforest

landsaredesignated,bystatute,asstate-owned,

althoughinsomecountriestherehasbeenan

increaseinstatutorycommunityownership(e.g.

Tanzania7)andformalcommunitymanagement

(e.g.Cameroon).InmostofAfrica,tenureissubject

tolegalpluralism,whereformallawdominates

overcustomarysystemsandfunctionallylimitsthe

rightsofcommunitiestoaccessandownwhatthey

considertobetheirnaturalresources.Centraland

WestAfricancountrieshavebeenslowtorepeal

lawsandregulationsinheritedfromcolonialtimes

and,unlikemanyothercountriesintheglobal

South,haveonlyrecentlybegunre-evaluating

theextenttowhichsuchlawsareinthenational

interest.Moreover,followingahistoricadministra-

tivepattern,governmentinstitutionshavebeen

structuredinamannerthatseparatestheregula-

tionandmanagementofagriculturallandfrom

thatofothernaturalresources,suchastimberand

minerals.

A transition away from colonial-era forest

policies and legal regulations has been long in

coming to Central and West Africa, and still only

a limited number of countries have made funda-

mental reforms to forest-tenure regimes.InAfrica

moregenerally,foresttenureshiftsaretakingplace

throughthelegitimizationandrecognitionoftradi-

tionalandcustomarytenuresystemsvis-à-visstatu-

torytenureandthroughongoingdecentralization

processesthatsupportdemocraticdecentraliza-

tion(ordevolution).Thenascentforesttransitionin

CentralandWestAfricaincludesarethinkingofthe

roleofforestagenciesandapotentialdevolution

oftheirresponsibilitiesforadministeringforest

landsoutsidethepermanentforestestate.Italso

involvesarecognitionofcustomarygovernance

anduserightsaswellasrightsoverenvironmental,

social,andeconomicbenefitsinforestsintheper-

manentforestestate,includingbenefitsfromsome

already-presentagriculturaluses.

African forest-tenure reforms are being influ-

enced by a recent set of regional initiatives on land

and tenure reform,notablythelandpolicyinitiative

oftheAfricanUnionanddeliberationsinother

regionalforums(e.g.theEconomicCommunityof

2.1 THE EXISTING SYSTEM OF TENURE IN CENTRAL AND WEST AFRICA

SMALL SCALE, LARGE IMPACTS4

WestAfricanStates—ECOWAS—andtheCentral

AfricanCommissiononForests—COMIFAC).8The

AfricanUnionhasdeclaredlandreformasitsfirst

priority,andECOWASandCOMIFAChaveprioritized

governanceandthediversificationofforestman-

agementandforesteconomieswithinsubregional

convergenceplans.9Tenurereformisontheagenda

foranumberofreasons,includingtheincreasingly

clearlinkbetweenconflictandlandandresource

rights;thelimitedeffectiveorganizationaland

enforcementcapacityofforestagencies;andthe

needtolayamoresolidfoundationforbroadsocial,

economic,andequitabledevelopment.InCentral

Africa,newforestpoliciesandlawsinCameroon,

DRC,Gabon,EquatorialGuinea,CAR,andtheCongo

aremorerespectfuloftherightsoflocalcommuni-

tiesinforestmanagement,butmanyarestillbeing

formulatedandfewreallyimproveoncolonial-era

legislation.Decentralization—bothpoliticaland

administrative—remainsatopicofdiscussionbut

hasyettobeimplementedinthesecountries.

In francophone West Africa, tropical forest

lands were influenced by French tenure and forest

management regimesthatrecognizestateand

privateownership(eitherindividualorcorpo-

rate)butnotcustomaryrightsbasedonadiverse

bundleoftenureandrights.Inmanycountriesin

theSahel,decentralizationprocessesincludethe

devolutionofauthorityforthemanagementand

administrationofforestsandotherrenewable

naturalresourcestolocalgovernmententitiesand

collectivecustomaryentities,butareintheearly

stagesoftransitiontowardsclearlocalauthority.In

Mali,the2002TenureLawrecognizescustomaryin-

stitutionsandusagerightsandgrantscommunities

andindividualstherighttopossessforests,while

the2007forestpolicyreaffirmedthegovernment’s

commitmenttopromotingcommunityforestman-

agement.Niger,whichneighborsMali,hasperhaps

movedthefurthesttowardsacomprehensivelegal

arrangementandprocessforlocalresourcecontrol.

InGhana,landisvestedmainlyinrecognizedcus-

tomaryinstitutions,butvaluablenaturalresources,

suchashigh-valuehardwoodtrees,areunderstate

control.

Tenureandsectoralforestreformsaretaking

placeinanumberofAfricancountriesinresponse

toagrowingmovementofcommunitiesclaim-

ingrightstoparticipateinprocessesregarding

resourceuseandconservation,butarebeing

hinderedbytheslowimplementationofnewlaws

andcodes.Reformsarealsotakingplacetoupdate

revenuecollection,tariffstructures,andfiscal

measuresinresponsetoinitiativesforimproved

governance(e.g.theEuropeanUnion’sForestLaw

Enforcement,GovernanceandTrade—FLEGT—Ac-

tionPlan)andnewglobalissuessuchasclimate-

changemitigationandadaptationandtheglobal

financialcrisis.

Sincethe1990s,someCentralAfricancoun-

tries—mostnotablyCameroon—haverestructured

theirforestrypoliciestorecognizetherightsof

localcommunitiestoresourcesandtotransferor

delegatepowersoverforestresourcesandfinancial

benefitsaccruingfromcommercialexploitationto

localcommunities.Anumberoflawsandpolicies

havebeenpassed,including:Cameroon’sForestry

Legislation(1994);DRC’sForestryCode(2002);the

Congo’sForestryCode(2000);(iv)CAR’sForestry

Code(2001);Gabon’sForestryCode(2001);and

EquatorialGuinea’sForestryCode(2002).However,

whiletheselawsandpoliciesfosterasharingof

rights,theydonotchangeownership.Underthe

legalpluralismoperatinginmostcountries,forest

lawdominatesovercustomarysystems,regardless

ofactuallanduseorpractice.

Unlikethepropertyortenureownership

rightsinEnglish-languagesystems,whichinvolve

twodistinctconcepts(“ownership”and“prop-

erty”),French-languagesystemshaveonlyone

word(propriété)thatentailsanabsoluterightof

alienation.TheEnglishconceptofpropertyallows

onlyexclusionrights,asevidentintheusefullistof

English-andFrench-languageequivalentsshown

inTable1.10IntheFrancophonecountries,asthe

tablebelowindicates,thebundleofrightsattached

to“propriété”isbydefinitionamorecomplete

bundlethaninAnglophonesystems,whereanyofa

rangeofthebundleofrightscanbeincluded.This

encouragestheStatetodefineitscontroloverfor-

5

estsasmoreabsolute,andtobereluctanttocede

ownershipforfearoflackingalegalmechanismto

controlforestmanagement.InbothFrancophone

andAnglophoneuseanduserrightsexist,butin

Anglophonecountries,theStateismorewillingto

cedeownershipandcontrolmanagementthrough

aseparatesetofenvironmentalcodesorregula-

tionsgoverninguseandpreventingalienation.

Unlikeurbanandagriculturallandtenure,forest

landownershipcanincludeaprohibitiononeither

alienationorland-usechange—intheseeventuali-

ties,ownershipisusuallymandatedtoreturnto

thestate.Thisprocessisdistinctfromconcession

arrangementswithforestindustry,wherestate

forestsareleasedundervaryingagreementsto

private-sectoractorsorparastatalorganizations

butremainstate-ownedandadministered.

CountriesinWestAfricahaveundertakenle-

galreformstoupdatelegislationbasedonFrench

tenureandmanagementregimesthatrecognize

state,private,andcommunity-ownedforests.Le-

galreformstofacilitatenaturalresourcemanage-

mentbycommunitieshavebeenlimitedandthe

legalunderpinningsforcommunityforestryand

treeplantingonfarmsareweak.Forestreforms

arefurtherchallengedbecausegovernment

institutionsarestructuredinsuchawaythatthe

regulationandmanagementofagriculturalland

istreatedseparatelytothatofvaluablenatural

resourcessuchastimberandminerals,andthe

recourseavailabletosmallholderfarmersis

limited.Giventheirgreaterfiscalrevenuestreams,

agenciesinchargeofminingandenergyare

generallymorepowerfulthanthoseinchargeof

forestry,andhaveinmanycountriesgivenconces-

sionrightstoextractivecompaniesthatoverlap

alreadyestablishedforestreserveorconcession

arrangements.

English concept French equivalent concept

Tenure Tenure (old) or maîtrise (foncière ou fruitière)

Landtenure Maîtrise foncière

Tenurerights Droits de tenure (old) or maîtrises foncières et fruitières

Landrights Droits fonciers

Ownership Propriété (exclusive et absolue)

Propertyrights Droits d’appropriation

Propertyrégimes Régimes d’appropriation or régime de droits

Commonproperty Propriété commune

Userights Droits d’usage

Userrights Droits des utilisateurs

Source: Roy, Karsenty, and Bertrand, 1996 (as cited in endnote 10).

TABLE1.ENGLISHANDFRENCHTENURECONCEPTSANDTERMS

2.2 IMPLICATIONS OF THE TENURE TRANSITION

The tenure transition contradicts and

undermines the dominant economic and conser-

vation models, which are based on the full state

ownership and control of forest resources and an

export-led, industrial concessions model.InDRC,

Tanzania,CAR,Gabon,Cameroon,andMozambique,

thetotalareaofforestlandsunderconcession

is78.1millionhectares.Incontrast,theareaof

SMALL SCALE, LARGE IMPACTS6

forestlandsformallydesignatedfororownedby

communitiesandindigenousgroupsis7.23million

hectares,orlessthanone-tenthofconcession

lands.InCameroon,onlyforestsinthenon-perma-

nentforestestatearedesignatedforcommunities

andindigenousgroups,eventhoughcustomary

rightspersistwithinthepermanentforestestate.11

InLiberia,acommunityrightslawwassignedinto

lawin2009,butithasyettobeimplemented.A

Liberianlandcommissionwascreatedrecently

andithasbroughtnationwideattentiontothe

issueoflandtenure,butthereisnocurrentdefini-

tionofwhatareincludedinorrelatedtoother

categoriesoflandrights.InCameroon,morethan

2600communitieshavebeenmappedwithinthe

boundariesofexistingindustrialconcessionsand

protectedareas.Manyofthosecommunitieshave

extensiveandoverlappingsystemsofagriculture

andforestresourceuseandlong-standingcustom-

aryarrangements,buttheirstatutorytenureand

rightsareill-defined.Moreover,whileCameroonian

communitieshaverecognizedusagerightsinwhat

iszonedasnon-permanentforestland,theirchoice

ofenterprisebywhichtheycanmakeuseofsuch

rightsisoftenhighlyrestrictedbyregulationorits

discretionaryapplication.

In some countries, the state-run protected-

areas model has created an additional barrier to

the exercise of local customary rights to the forest

and to the evolution of SMFEs through commu-

nity-based or smallholder forest management. In

manycurrentandplannedprotectedareas,custom-

arytenureandrightsareunaddressed,asituation

thatundermineslocalforestknowledge,liveli-

hoods,anduses.Onlyrarelyisasustainablemodel

ofmanagementorco-management—consistent

withinternationalenvironmentalstandards—in

place.Formanylocalpeople,parksandindustrial

concessionsaretwosidesofthesamecoin;both

reducetheareaofforestinthecommunitydomain,

providehighlyinadequatefinancialresourcesto

fundtheintendedinstitutionalframework,and

underminethepotentialforforestcommunitiesto

adapttheirlivelihoodsandenhanceconservation

andsustainabledevelopment.12

A major challenge is the equitable integra-

tion of the interests and decision-making author-

ity of women, pastoralists, and other vulnerable

or semi-nomadic peoples. Stateauthoritiesoften

continuetomaintainregulatoryinfluenceover

decentralizedforestmanagement,includingcom-

munity-basedinitiatives,throughmanagement

interventionsandothermechanismsdeliveredvia

forestrydepartments.

The region is thus undergoing a dynamic ten-

ure transition that is being undermined by many

challenges,includingalackofpoliticalwill,limited

governmentcapacity,thepoororganizationand

articulationofsupportivesocialmovements,weak

infrastructure,andanabsenceofmechanismsand

fundingforbroad,multi-stakeholderdialogue.

Thereareopportunitiestoharmonizedecen-

tralizedforestmanagementwithlandlaw,ashas

beenachievedinTanzaniaandMozambique.To

dosorequireslearninghowbesttoembedfor-

estrightsinthecontextofoveralltenureandto

legallysupportcommunitytenure.Italsorequires

anapproachtogovernancethatrecognizesthe

diverseinterestswithincommunitiesandthere-

spectiverolesofstateandcustomarygovernance

structures.

Now, 50 years after the independence of the

African states, there are new, historic opportuni-

ties for diverse combinations of tenure and rights

(such as community ownership, co-management,

and state ownership with customary use rights)

that make possible new business models. Itisin

thiscontextthatdiversemodelsofsmall-scaleand

community-basedforestenterprisesareevolving.

Butfortheseopportunitiestoberealized,com-

munitiesmustbelegallyabletonegotiateand

defendtheirrightstolandandresources—whether

recognizedstatutorilyorthroughsystemsoflegal

pluralism—withoutthestatepredeterminingthe

structureoftheenterprisethroughatop-heavy

systemofregulation.

7

The Forest Economy in Central and West Africa3

The export-oriented industrial concessions

model of forest development has been justified on

the grounds that it will optimize the contribution

of forests to national economic development, gov-

ernment revenue streams, and the development of

rural communities. Thismodelwas—andinsome

casesstillis—seenasasolutiontothesustainable

managementoflargeareasofforestswithlimited

administrativecoverageanddifficultaccess(Box1).

Theexpectationwasthatestablishingastableand

concentratedflowofhigh-valueexporttimberfrom

forestswouldsupportanationalprocessingindus-

tryintheprivatesectorthatwouldaddvalue,jobs,

andincomeandtherebyhelptoreducepoverty.13

Together, Central and West Africa produce ap-

proximately 15% of the tropical timber in the global

market, but much of it is in the form of unprocessed

products.Interestingly,onlyfourcountries—Nige-

ria,Gabon,Cameroon,andCôted’Ivoire—produced

80%ofthisamountin2006,eventhoughtheyrepre-

sentonly22%oftheregion’sforestcover.14

Current global trade in tropical timber is

worth US$11 billion per year (US$8 billion in logs

and sawnwood), of which African products make

up US$2.7 billion (including nearly half—US$1.2

billion—of the log trade value). In2001,thetotal

accumulatedvalueofexportsfromCentralAfrica

contributed15%togrossdomesticproduct(GDP)in

thesubregion.15Ofproducercountriesinthethree

tropicalregions,thoseinAfricacontinuetoexport

thelargestvolumeoftropicallogscomparedtopro-

cessedprimaryproducts.In2008,forexample,log

exportscomprised20%ofAfrica’slogproduction

and46%ofitstotalexportvolume.InAsia,bycom-

parison,logexportsmadeupabout11%oftotal

logproductionandjustover25%oftotalprimary

productexportvolume.16

TwonewtrendsinAfricaaretheparallelexport

ofplantationwoodfromthenon-tropicalforestpro-

ducingcountries,asevidencedinthetablecompar-

ingplantationexportsfromtheRepublicofCongo

withthoseofSouthAfrica–asignificantportionof

whichgotoChina,mainlyaspulpandwoodchips.

There are ten ITTO producer member coun-

tries in Africa, but most of the region’s high-value-

added exports originate in only two of them:50%

ofexportedplywoodisproducedinGhanaand

mostexportedveneerisproducedinCôted’Ivoire.

Evenso,Cameroonisabetterperformerthan

Ghanainbothproductsegmentsonthebasisof

unitvalue,sellingitsveneersandplywoodatclose

tothreetimesGhana’sunitvalue(probablydueto

thehigherqualityoftherawmaterial).

Several important trends in Central and West

Africa are affecting the participation of foreign

companies and capital in concessions and the size

of companies engaged in the export sector.17One

istheincreasedemphasisonthelegalityoftimber

3.1 THE ROLE OF THE INDUSTRIAL CONCESSIONS SECTOR

IN THE REGION

SMALL SCALE, LARGE IMPACTS8

FIGURE1.CHINA’SFORESTPRODUCTIMPORTSFROMAFRICA,BYVOLUME&TYPE

 

 

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Impo

rts (m

illio

n m

3 ro

undw

ood

equi

vale

nt)

Other Paper Sawn wood Pulp Logs

FIGURE2.CURRENTEXTENTOFPLANTATION-BASEDEXPORTSFROMTHETROPICS(E.G.,THEREPUBLICOF

CONGO)ANDTEMPERATEREGIONS(E.G.,SOUTHAFRICA),BYVOLUME&ORIGIN

Source: Canby et al. forthcoming.18 China Customs Statistical Yearbook, Eurostat, World Trade Atlas, and other data, compiled by James Hewitt.

Note: Exports from African countries to the world. Excludes Madagascar (whose exports were negligible compared to the other three countries during the period shown), and fuel wood and teak from all countries.)

 

0

2

4

6

8

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009f

Estim

ated

roun

dwoo

d eq

uiva

lent

vol

ume

(milli

on m

3)

Congo (Brazzaville):

Pulplogs

Wood chips

Pulp

South Africa:

Timber products

Paper

Paper

Pulp

Wood chips

Source: Hewitt.

9

exportstobothEurope—throughtheEuropean

Union’sFLEGTActionPlanandvoluntarypartner-

shipagreements(VPAs)—andtheUnitedStates

(U.S.)—givenanamendmenttotheLaceyActman-

datinglegalwoodsupply.Thisemphasisonlegality

hascombinedwiththereform,bynationalgovern-

ments,ofconcessionandrevenuepoliciesand

themorestringentapplicationoflegalcontract,

management,andaccountingrequirements.Both

trendsfavortheconcentrationofcapitalandthera-

tionalizationofcompanymanagementandoutlets

(inordertoreducethefixed-costsburdenofconces-

sionfees).Thereisatrend,therefore,towardsthe

greaterconcentrationofconcessionownership,

notless.Forexample,oneofthelargestcompanies

operatinginCentralAfrica,DalhoffLarsenand

HornemanGroup-Nordisk(DLH),recentlytookover

CongolaiseIndustrielledesBois(CIB),thelargest

concessionaireoperatingintheCongo.19

One impact of this trend has been an increase

in the concession area certified to international

standards in Central and West Africa (from3million

hectaresin2008to5millionhectaresin2010).An-

other impact, however, is potentially negative—the

exitofsmaller(includingnationallyowned)compa-

nies,sincesuchcompaniesfinditdifficultandcostly

tocomplywiththemorestringentrequirementsor

tobribetheirwayaroundthem.Anoutcomeofthe

needtoreachsufficientscaleisthedevelopmentof

newbusinessalliancesandarestructuringofthe

sectordrivenbyexport-orientedcompanies.

There is pressure to increase in-country value-

added processing throughout the region in order to

generate more jobs and export revenues and to com-

ply with rising European Union and U.S. standards,

butthishasnotbeeneasytopromotegivenAsia’s

growingdemandforminimallyprocessedtimber.

Acounter-trendtohigherstandardsettingandthe

expansionofcertificationhasbeenthegrowing

numberofnon-Europeaninvestorsandtransnational

companiesbecomingestablishedintheregionwitha

focusonexportingtoemergingmarketeconomies.

Gabon,forexample,recentlyadoptedapolicyto

stopexportinglogs,startingin2009,butbymid2010

therewereindicationsthatsomeconcessionaires

wouldsoonerleavetheirconcessionsthaninvestin

additionalsawnwoodprocessing.Industryfigures

showthat,overall,sawnwoodprocessinginGabo-

neseexportoperationscurrentlyrunsataloss.20

Moreover,giventheimpactofthe2008global

economicdownturn,thesawnwood,plywood,and

particleboardsegmentsseemunlikelytoexpandin

thenearterm.Totalwoodexportdemandstarted

torecoverin2009andAfricanexportsareexpected

toreturntopre-downturnlevelsin2010,butwith

littlegrowthinvalue-addition(Figure1andFigure

3showthisforexportstoChina).Investmentin

processingcapacityinAfricahasbeenflatsincea

seriesofEuropeaninvestmentsatleastadecade

ago.Manyinvestorshavechangedbusinessstrate-

gies,concentratingharvestingonasubsetoftheir

concessionsandrealigningtheiroverallfootprint

intheregion.Infact,severalcertifiedEuropean

concessionsarecurrentlyforsale.CIB’sconcession

acquiredbyDLHmayagainbesold,andhasalready

recentlyfired680outof1600employees(and50%

oftheforeignstaff)DLHhasincurredlargefinancial

lossesandwantstorefocusitsactivityontrading:

theothertimbercompaniescontrolledbyDLHin

thesubregion—GabonaiseIndustrielledesBoisand

CompagnieForestièredesAbeilles,bothinGabon—

arealsoforsale,withpotentialbuyershailingfrom

AsianorMiddle-Easterncountrieswherethereis

limiteddemandformeetinghighsocialorenviron-

mentalstandards.21

Forest revenues continue to be an important

source of income for Central and West African

governments, even those with important mining

and hydrocarbon revenues.Annualrevenuefrom

foresttaxesrangesfromUS$3.85millioninDRC,

wheremostoftheindustrialconcessionshavebeen

cancelledaspartofreformsandrezoning,toUS$40

millioninCameroonanduptoUS$50millionin

Gabon.Intermsofthenon-oilcontributiontoGDP,

thedirectaddedvalueprovidedbytheformalfor-

estsectorrangesfrom3.2%inCameroonand6.4%

inGabonto10%intheCongo.Tax-collectionrates

arestillbelowpotentialmaximumrates,butthey

haveimprovedrecentlyincountriessuchasthe

CongoandCameroon.Evenwiththesehigherfiscal

SMALL SCALE, LARGE IMPACTS10

revenues,however,woodexportsinkeycountries

generateonlyafractionoftheactualandpotential

fiscalrevenuesderivedfromminingandpetro-

leum.IntheCongo,forexample,revenuesfromthe

wood-exportsectorareonly1%oftheoreticaloil

revenues;thus,theyarefinanciallyimportantbut

notnearlytotheextentofnon-renewables.24The

situationissimilarinEquatorialGuinea(Figure4).

Another result of the 2008 global financial

crisis, which is explored in more detail below, is

an increased interest among national government

policymakers in opportunities in the domestic and

FIGURE3.MAJORAFRICANEXPORTERSOFFORESTPRODUCTSTOCHINA,BYVOLUME

Source: Canby et al. forthcoming.22

 

 

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Impo

rts (m

illio

n m

3 ro

undw

ood

equi

vale

nt)

Liberia Equatorial Guinea Swaziland Mozambique Cameroon Congo-Brazzaville South Africa Gabon Other

FIGURE4.VALUEOFEQUATORIALGUINEA’SPRIMARYCOMMODITYEXPORTS

Source: China Customs Statistical Yearbook, Eurostat, World Trade Atlas, and other data, compiled by James Hewitt.23

Source: China Customs Statistical Yearbook, Eurostat, World Trade Atlas, and other data, compiled by James Hewitt.

 

11

regional wood industry.Inthepast,thishasbeen

largelyseparatefromtheexportindustrybecause

nationalpricesaretoolowtoattractexporting

companies.Historically,therefore,thenationaland

regionalmarketshavenotbeenofkeyinterestto

financeortradeministries,particularlywhenmany

actorsoperateintheinformalsector,wherethey

donotpaytaxes.25

AsignificantgapremainsintheCongoBasin

countriesbetweensustainableforestmanagement

standardsandpractice.Acomparisonofallthefor-

estareasgazettedandallocatedforindustrialtim-

berconcessionsinFigure5belowshowsthatwhile

therehasbeensignificantadvanceinanumberof

countriesintheregiontoestablishsoundforest

managementplansfortheareasallocatedtocom-

panies,thereisstillabiggapbetweenmanagement

planrequirementsandachievementsinpractice,

withonlytheCentralAfricanRepublicdeveloping

plansforthemajorityofitsconcessionedareas

thusfar.

BOX1.ASHORTHISTORYOFCONCESSIONAIRESINAFRICA

Duringthecolonialera,concessionairesweregrantedrightstoagiven(andgenerallylarge)areaby

Europeangovernments,forwhichtheyreceivedprivilegestousenaturalresourcesasprivateassets,

enjoyatrademonopolyontheresourcestheyextracted,levytaxes,andimplementinequitablelabor

practices.Followingindependence,therelationshipbetweenprivateactorsandstatesgradually

becamemorebalanced.Overtimefromthe1980sonwards,concessionaireswererequestedtobear

responsibilitiespreviouslybornebygovernments,suchasthemanagementofproductionforestsand

theoversightofsomepartsofterritorieswhereforestconcessionswereprominent.Today,concession-

aireshavediverserequirements,eithertechnical(e.g.preparingloggingorforestmanagementplans

followinggivennormsandguidelines,orcommittingtoperformspecifictasks),economic(e.g.build-

ingaprocessingunitofagivensizeorcreatingandmaintainingroadnetworksoflocalandregional

importance),social(e.g.creatingjobsintheloggingarea,thedeliveryofgoodsandservicestolocal

administrations,authorities,orpopulations,orthelaunchingof“social”projectsforlocalpopulations),

fiscal(e.g.payingspecificfeesandtaxesinadditiontothegeneralfiscalregimeofcompaniesandindi-

viduals),orenvironmental(e.g.fightingillegalhuntingandpoachinginsidetheconcessionarea).

FIGURE5.COMPARISONOFFORESTAREASGAZETTEDFORPRODUCTIONANDUNDERMANAGEMENT,

CENTRALAFRICA

Source: Karsenty et al., 2007.

 

0  

20,000,000  

40,000,000  

60,000,000  

80,000,000  

100,000,000  

120,000,000  

140,000,000  

Dense  forest  area  

Produc6on  forests  

Area  gaze:ed  for  

exploita6on  

Area  under  forest  mgmt  process  

Mgmt  plan  submi:ed/  agreed  

Hectares  

SMALL SCALE, LARGE IMPACTS12

While industrial concessions are the main

focus of forest-related economic policies, it is

the small-scale operators who, collectively, are

the main contributors to production, value, and

employment in the forest sector.Mostdomestic

andregionalwoodsupplycomesfromsmall-and

medium-scalesuppliers,manyofwhomharvest

alongtheroadsoriginallycreatedbylogging

concessionaires.Thesesuppliersarenotwell-mon-

itoredandthereforearedifficulttoregulate.With-

outlegalsanction,mostarethereforeconsidered

tobepartofaninformaleconomy,evadingofficial

registrationandthepaymentofrequiredfees

eitherbecauseoflowmarginsorbecausetheycan-

notconformtoregulationsdesignedforadifferent

typeofindustrialmodel.Fewfurnitureorwood-

workingshopsinGhana,forexample,qualifyfor

licensestooperateintheurbanareasinwhichthey

arelocated,andmanyharvesterscarryouttheir

loggingwithouttherequisite—butimpossible-to-

obtain—managementplans.

The informal sector is important and dominant

throughout the region for subsistence, domestic,

and regional trade in a diversity of wood products

and NTFPs.Inthemorepopulatedcountries,such

asCôted’Ivoire,Cameroon,DRC,LiberiaandGhana,

officialandunofficialfigures—wheretheyexist—

indicatethattheinformalwoodsectorcontributes

bothpermanentandseasonalemploymentthatis

anorderofmagnitudelargerthanthatcontributed

bytheformalsector.Officialdatafromtheformal

Ghanawoodsectorindicatethatitprovides50,000

jobs,whileBirikorangetal.26documentatleast

another54,000indirectemploymentinwoodhar-

vestingandhaulage,bringingthetotaltomorethan

100,000jobs,withoutcountinginformalprocessing

andvalue-addedactivities.Subsequentsurveysbya

teamofresearchersbuildinguponthisearlystudy,

estimatesthattheinformalsectorgeneratesmany

morethanthese54,000jobs,closerto450,000jobs

intheharvesting,haulingandsmall-scalemillingof

woodalone.Thesamesurveysdocumentanother

2.5millionfullorpart-timejobsinallwoodandnon-

woodforestproductrelatedactivity.27

The informal wood sector in Cameroon is

a large contributor to the rural economy, with

a financial gain of 26 billion CFA francs per year

(compared to the 6 billion CFA francs per year col-

lected from the “annual area fee”).28Recentstudies

showthatCameroon’sestimatedannualsalesof

timberinthedomesticmarketamountto930,000

m3peryear,mostofwhichissuppliedbytheinfor-

malsector.29

Moreover,theinformalproductionofcaneand

rattanfurnitureandanumberofotherpromising

NTFPshasgreatimportanceforemploymentand

incomes(generating,forexample,300,000part-time

andfull-timejobsinthecaneandrattansector).Yet

suchproductionisnotrealizingmaximumpoten-

tialreturnsnoroperatinginanenvironmentthat

providesincentivesforsustainability.Caneand

rattanisalsoahigh-valueNTFPinGhana,whichem-

ploys2,000weavers(addingnewlytrainedpeople

regularly)andthousandsofharvesters(eachearn-

ing,onaverage,US$8perday,whichisthreetimes

thedailyminimumwage).30

But the informal sector struggles against

an adverse regulatory environment that favors

large-scale operators over the operations of local

people and limits the ability and/or incentives of

small-scale operators to harvest raw materials

sustainably.31Thereareanestimated8,000small-

scaleloggersinDRC(aCongoleseassociationof

small-scaleloggershasbeenestablished),harvest-

inganestimated1.5–2.4millionm3peryear,which

constitutes500,000m3ofsawnwoodwithamarket

valueofUS$100million.32Reportedly,103lumber

marketsoperateinKinshasa,Matadi,andBoma;33

thesearelinkedintomultiplevaluechainsbut

havenomeansofattaininglegalityunderexisting

regulatorypoliciesandsystems.Cameroonhas

beenexperimentingwithcommunityforestrysince

3.2 THE ROLE OF SMFEs IN THE FOREST ECONOMY

13

the1994forestlawbecameeffective,butitsscope

isstilllimitedbothinareaandinthecategories

offorestthatcanberecognizedforlocalmanage-

ment,andtherearefundamentalconstraints

relatedtoregulationsaroundorganizationalstruc-

ture.Moreover,whilecommunityforestrytakes

placeinalandscapecontext,theruleslimitintegra-

tionwithortheoptimizationofagroforestryand

NTFPproductionsystems.

The importance and prevalence of the

informal wood sector is increasingly being ac-

knowledged publicly, and West African countries

in particular are actively seeking ways to bring

informal operators into the legal sector.InLiberia,

asystemoftemporarypermitsmanagedbythe

ForestDevelopmentAgencywassetupduringthe

reconstructionperiodafterthecivilwartoenable

informalpit-sawyers,mostofwhomwereex-

combatants,tochainsaw-millcommercialtimber

harvestedincustomarycommunityforestsand

state-ownedforestlands.Thisallowedthemto

supplytimberforthereconstructioneffortasan

alternativetowoodfromstateconcessions,since

anexportloggingbanwasimposedbyUnited

Nationsandtheinterimgovernmentafterthe

Taylorregimefell.Subsequentlyalimitednum-

berofharvestingarrangements(limitedlogging

contractsandaconcessioncalledFMC)havebeen

approvedbytheInter-MinisterialConcessions

Committee,butmostwoodstillcomesfromthis

source.Apreliminaryassessmentoftheseopera-

tionsinvariouscountiesfoundthemtobeimpor-

tantinbuildingpeaceandsecurity,byproviding

jobsforagrowingnumberofex-combatants(for

example,3,500pit-sawyersandtheirassistants

wereemployedinRiverCessCountyalone)andby

supportingawell-organizedunionthatmanaged

logcollection,sorting,andmarketing.35Asmany

as560timbertradersinLiberiamaybedealing

inchainsaw-milledwoodandthetotalvolumeof

timbertradedannuallyisestimatedtobebetween

about86,000m3and201,000m3;basedonthisrange

therecouldbebetween1,800and16,000people

employedbychainsawmilling,withtheprobable

numberaround5,000.36

In Ghana, the informal wood sector contrib-

utes 70% of the value of export earnings with

much less investment and is the main source of

domestic wood supply.37Moreover,SMFEsinthe

countrycontributeanestimated5%ofGDP,while

theformalindustrycontributesonly2%.Thearbi-

trarysuspensionofsmall-scalelogginginGhana

between1999to2006artificiallyspikedthevolume

ofloggingconductedillegallybysmall-scale

enterprises,sinceformerlylegitimateenterprises

becameillegal.38Figure6illustratestheimportance

FIGURE6.SOURCESOFWOODSUPPLYFORGHANA’SDOMESTICMARKET,2005

Source: Birikorang et al. 2007.34

Formal sector (all products)

13%Imports (wood products)

34%

Illegal chain saw lumber53%

SMALL SCALE, LARGE IMPACTS14

BOX2.“INFORMAL”NTFPs AREBIGBUSINESSINCENTRALANDWESTAFRICA

In Cameroon about 3,000 of the 8,000 known plant species have valuable uses (Mbile 2008). A study of

140 NTFPs indicates that they contribute 7.5 timesmoretotheregionaleconomiesofnorthwestand

southwestCameroonthandotimberproducts(VanDorpetal.2000).Anotherstudy,basedoninforma-

tionfrom426NTFPtradersinCameroon(whocomprised26%oftheestimated1,100tradersoperating

in25marketsinthemaindistrictsofCameroon’shumidforestzone),estimatedthathalf-yearsalesof

NTFPsin1995–96wereworthUS$1.9million(Perezetal.1999).Thisisreportedlyaconservativeesti-

mate,asothersignificantproducts—suchasPrunus africanabark(soldtopharmaceuticalcompanies

forthetreatmentofprostateglandproblems),rattan(Laccospermaspp.)andRaphiapalm(usedfor

basketryandfurniture)—werenotincludedinthestudy.Usingdatafromthe1991–92Ghanaliving

standardssurvey,itwasestimatedthattotalhouseholdexpenditureonnineNTFPproductswasover

US$200million(Townson1995inArnold1996).

AstudyintheGambiashowedthatasimilarlyhighdiversityofNTFPsaremarketed.A2005surveyof26

villagesand72community-basedenterprisesrevealed484interest-groupmembersfocusedonthefol-

lowingproducts:fuelwood,logs/timber,honey,netto,palmoil,treenurseryproduction,kemboposts,

handicrafts,Rhunpalmsplits,andeco-tourismandforestwalks(ThomaandCamara2005).TheCongo

andDRClikewisehaveahighlivelihoodandtradedependenceonNTFPs.Bushmeatandotheranimal

proteinssuchasfish,caterpillars,andhoney,areimportantsourcesoffoodandcashincome,withcat-

erpillarsandhoneysometimesgeneratinghigherincomesperhectareinDRCthanagriculturalcrops.

Sources:

Mbile,Peter.2008.ForestIndustry&TradeinCameroon:CurrentSituation,Trends&Prospects.Acon-

textreportandanalysisproducedfortheRightsandResourcesInitiative.

VanDorp,M.,R.Niemeijer,andD.Offermans.2000.Measuringthesocio-economicvalueofNTFPsona

regionalornationallevel:CasestudyforNorth-WestandSouth-WestCameroon.EuropeanTropical

ForestResearchNetworkNews,No.32,Winter2000–2001.

Perez,M.,O.Ndoye,andA.Eyebe.1999.MarketingofNon-woodForestProductsintheHumidForest

ZoneofCameroon.FAO.

Townson,I.M.1995.PatternsofNon-timberForestProductsEnterpriseActivityintheForestZoneof

SouthernGhana.ReporttotheODAForestryResearchProgramme.OxfordForestryInstitute,Oxford.

Arnold,M.1996.Economicfactorsinfarmeradoptionofforestproductactivities.Paperpresentedat

theInternationalConferenceonDomesticationandCommercializationofNon-timberForestProd-

uctsinAgro-forestrySystems,FAO.

Thoma,W.andK.Camara.2005.CommunityForestryEnterprises—ACaseStudyoftheGambia.ITTO,

ForestTrends,andRRI.

15

ofwoodobtained(illegally)onasmallscaleto

Ghana’swoodsupply.

Wood is not the only component of the

informal forest economy that generates important

jobs, revenue, and trade. In aggregate, NTFPs,

including bushmeat, are also important con-

tributors.High-valueNTFPssuchasbushmango,

Gnetumleaves,thefruitsandmedicinalbarkofthe

Africancherry,andcolanutaretradedthroughout

CentralandWestAfrica,generatingmillionsof

dollarsintrade,bothregionallyandtohigh-value

marketsinEuropeandelsewherecomprising

residentsofAfricanorigin(Box2).Womenareim-

portantparticipantsintheNTFPeconomy,whichis

notthecaseintheformalandmuchoftheinformal

woodeconomies.Sincesomuchofthetradeis

domesticorinformal,therearenoaccuratestatis-

ticsofit.39ArecentanalysisinCameroonindicated

that,simplygivenlegalaccess,thesaleofforest

productsbyforestsmallholdersandcommunities

couldgenerateaverageannualhouseholdrevenues

ofUS$80–100,butthiscouldbemuchhigherwith

achangetoimprovemarketsaccessandparticipa-

tioninvalue-addedprocessing,gradingoraggrega-

tionofsupplyandlinkstofinance.40

In the less-forested countries of West Africa,

NTFPs are still significant contributors to income

streams and subsistence well-being.IntheSahel,

fuelwood,charcoal,karité(sheabutter),andhoney

arehigh-valueNTFPsthataretradedbothformally

andinformally.Statisticsareweakinmanycoun-

triesonthesignificanceofthisincomenationally.

Anestimated40,000householdsinNairobi,Kenya,

sellcharcoal,whilecharcoal-makinginZambiagen-

erates40,000jobs41;theproductionandmarketing

ofNTFPsinWestAfricawouldnodoubtgenerate

comparableemployment.

16

Whileforest-sectorreformsareunderwayin

thecountriesoftheCongoBasin,atthecurrent

rateofchangeitwouldtakethosecountriesover

260yearstoachieveasimilarproportionoflegal

communitycontroloverforeststothatachievedin

Amazoniancountries.42

About46timesmoreforestareaisallocated

toindustrialconcessionsthantocommunitiesin

CentralandWestAfrica.Eveninthenon-gazetted

forestlandszonedbythestate,smallholdersand

communitiesfaceseriousrestrictionsintheirabil-

itytodeveloptheirforestenterprises.Asof2008,

publicforestlandisdesignatedforusebycom-

munitiesinonlytwocountries—Cameroonandthe

Congo.Noforestareasarerecognizedinstatutory

lawasowned(eithercollectivelyorindividually)by

communitiesorindigenouspeoples.

Thepredominanceofindustrialconcessions

intheforestlandscapesofCentralandWestAfrica

posesproblemsforhumanrightsbecauseitdenies

traditionalpeoples(includingindigenouspeoples)

theircustomaryrightsofownership,access,use,

and/orgovernance.Inparallel,arichsetofmacro-

economicandpovertystudiesproducedinthelast

decadehasfoundthat,inmanycountriesinthe

region,themodelofexport-orientedindustrialcon-

cessionscontributeslittletowidelysharedgrowth

ordevelopment.43Studies on growth, the resource

curse, forest corruption, and China’s pro-poor

growth lessons for Africa all document the serious

challenges faced by export-led, concessions-domi-

nated forest economies in supporting widespread

growth and rural poverty reduction.

Wherever there is a lack of economic transfer

of earnings from industrial concessions to growth

elsewhere in the economy, there are perpetual

problemsofcorruptioninthecontrolandalloca-

tionofconcessions;conservativevestedinterests;

thepoordistributionofrevenuestolocallevels;

alackofeconomicdiversification;barriersto

smallenterprisesfornavigatingtheformalsector,

leadingtothecriminalizationofmostdomestic

operators;flatornegativepercapitagrowth;and

limitedpovertyreductionorruraldevelopmentin

andaroundforestareas.Thisisnottosaythatin-

dustrialconcessionsneednotbepartoftheoverall

foresteconomy,butwheretheypredominatethey

displaceother,morepro-pooreconomicactivity

whilenotdeliveringdevelopment.44

In general, the economic growth of forested

countries that are also net wood exporters has

lagged behind that of the developing world as

a whole.InAfrica,andtoalesserextentLatin

AmericaandtheCaribbean,net-wood-exporting

countriespostgrowthratesthatarewellbelow

average.Between1974and2005,theaverageGDP

percapitagrowthofsuchcountriesinAfricawas

-1.0%,whileinnet-wood-importingcountriesitwas

0.7%(Figure7).

With the lack of competitiveness of African

producers in the trade of value-added wood prod-

ucts, the global economy is not favoring Africa.

Trendsininvestmentandtradeindicatethattradi-

tionalwood-exportingcountriesinAfricawillfind

ithardtoattractcapitalforprocessing(andrelated

infrastructure)andtocompetewithestablished

Limitations of the Industrial Concessions Model: Issues and Alternatives4

17

industriesandmarketandsupplychainsthatare

alreadycompetitiveelsewhere(Box3andBox4).

Indeed,itisthehigher-incomeAfricancountries

withlimitednaturalforestbutrelativelygood

infrastructureandexpandingcommercialwood

plantationsthatareestablishingthemostvigorous

tradewithChinaandtherestofAsia—exporting

pulpandparticleboardandimportingfurnitureand

otherprocessedwoodproducts.Thetraditional

wood-exportingcountriesareattractingadifferent

kindofcapital—onefocusedmoreonshort-term

profitthroughnative-forestextraction.Figure8,for

example,showsthatwhileCameroon’ssawnwood

exportsareincreasingasapercentageoftotal

BOX3.RESEARCHONECONOMIESDOMINATEDBYRAWMATERIALEXPORTSQUESTIONSLONG-TERM

GROWTH

“Researchontheimpactofagglomerationeconomiesonproductioncostandinternationalcom-

petitivenessstronglysuggeststhatlate-comerstoindustrialization,suchasAfrica’snaturalresource

exporters,sufferfromcompetitivedisadvantagelinkedtothespatialdistributionofglobalindustry.…

Notsurprisingly,then,thedatashowthatAfrica’smineralricheconomiestrailboththeAfricaregional

averageandtheleastdevelopedcountriesingeneralinkeyindicatorsofindustrialdynamism.”

Source: Page, John. 2008. Rowing against the current: the diversification challenge in Africa’s resource-rich economies. Global Economy and Development Working Paper 29 December 2008. Paper prepared for the Africa Economic Research Consortium 20th Anniversary Conference, September 15-17, 2008, Nairobi, Kenya. Brookings: Washington, D.C.

FIGURE7.AVERAGEANNUALGDPGROWTHOFITTOPRODUCERCOUNTRIESVSNON-ITTOPRODUCER

COUNTRIES,1975AND2004

Source: Samjee and Davis, 2007.45

 

 

SMALL SCALE, LARGE IMPACTS18

tradetotheEuropeanUnion,itsgrowingtradewith

Chinaisbasedpredominantlyonlogexports.

ThoseAfricancountriesthatarenetwood

exportersandalsoITTOproducermembersnotonly

shownegativeeconomicgrowth,theyalsoperform

poorlyinarangeofquality-of-governanceindicators

(Figure9).Whileitisnotpossibletoshowacausal

relationshipbetweenthedominationofanexport-

ledwoodindustryandgovernance,sevenoftheten

AfricanITTOproducercountriesareamongthelow-

est35countriesinthe2010FailedStatesIndex,scor-

ingespeciallylowon“sharedgrowth”.46AfricanITTO

producercountriesalsoreturnlowscoresonother

governanceindices—includingthatofTransparency

International,47thesurveyof“freedomintheworld”

carriedoutannuallybyFreedomHouse,48andalist

compiledbyAldenWily(2008)49oncurrentstate-level

conflictsrelatedtotenureinsecurity.

Insummary,therealityofthepredominant

industrialconcessionsmodeldoesnotapproach

BOX4.AFRICANBUSINESSOWNERSFACEDISTINCTDISADVANTAGESCOMPAREDWITHTHOSEINOTHER

DEVELOPINGREGIONS

Ingeneral,studiesofAfricanmarketsshowthatsmall-andmedium-scale,autochthonousAfricanbusi-

nessownersfaceaspecificsetofdisadvantages.Theirenterprisesperformmorepoorlythanforeignor

foreign-descententerprises,asituationcorrelatedtotheirmorelimitedaccesstonetworksproviding

investmentstoinformation.Thismakesithardforthemtoestablishareputation,controltransaction

costs,andmeetregulatoryhurdles.Overall,thecostofdoingbusinessinAfricais20–40%higherthan

thecostinotherdevelopingregions.In2006–07,theaveragerankofAfricancountriesintheWorld

Bank’sDoingBusinessindicatorswas136(where1=thebestenvironment),whilelow-incomeAfrican

exportersaveragedarankof161.

FIGURE8.CAMEROON’SWOODEXPORTSBYDESTINATION&TYPE

Source: China Customs Statistical Yearbook, Eurostat, World Trade Atlas, and other data, compiled by James Hewitt.

 

19

theideal,evenwiththeincreasednumberofcerti-

fiedoperatorsintheregion.AsianbuyersofAfrican

woodareinterestedmainlyinlogsandminimally

processedlumber.ThesegmentedtradewithChina

andEuropeconcentrateshigher-payingmanu-

facturingjobsandrevenuesinthedestination

countries,withmostrevenuescapturedbyforeign

investors.Thereisaminorityofheavilycommit-

tedandresponsiblecompaniesandoperators,but

themajorityisstillnotmanagingassignedareas

sustainablyandallowspovertytoincreaseinand

aroundforestareas.Vestedinterestsinthepublic

andprivatesectorscontinuetopromotetheindus-

trialconcessionsmodel,andthedevelopmentcom-

munityhasmadeonlylimitedeffortstoencourage

alternatives.

Somecountriesrecognizethatconventional

modelsfocusedonexport-orientedindustrial

concessionsarenotcontributingtoeithertheir

growthortheirneedforbroad-basedemployment

andenterpriseopportunities,andareseeking

newpolicies.Countrieswithalongerhistoryof

industrialforestry,suchasGhana,arefindingthat

industrialconcessionsareasunsetindustrythatis

competitiveonlyonaconfinedandever-reducing

forestareaandneitherincreasesemploymentnor

addsproductvalue.51Ghanaisengagedindefining

aprocesstoimprovethelegalityandsustainability

ofthedomesticinformalwoodindustrythrough

theEuropeanUnion’sFLEGT/VPAplatform,recog-

nizingthatanon-conventionalforestindustryis

needed.TheGovernmentofDRChasalsogreatly

reducedtheareaofgovernment-allocatedconces-

sionsaspartofitscurrentreformprocess,explor-

ingtherightsofandopportunitiesforcommunities

livinginandaroundtheforests;itiscurtailing

planstoexpandindustrialconcessionsgrantedby

thestatebeyondthecurrentlyapproved9.4million

hectares.52

Thefollowingsectionlooksatthenewop-

portunitiesemerginginCentralandWestAfrica

inthewakeoftenurereforms,andspeculateson

thehealthierforesteconomythatcouldemergeif

SMFEsaregiventheirdue.

FIGURE9.GOVERNANCEINDICATORS,ITTOPRODUCERCOUNTRIESVSOTHERDEVELOPINGCOUNTRIES

Source: Samjee and Davis, 2007.50

 

20

Transitions in Tenure and Markets: New Opportunities for Africa5

New thinking in Africa on the role of con-

ventional and non-conventional industry models

mirrors analyses of trends in global production

and the shifting and expanding opportunities

available in the domestic and regional markets of

developing countries. Whatisoftenmisunderstood

bypolicymakersinpoor,developingcountriesis

thatforestindustriesinhigh-andmiddle-income

forestedcountriesarealreadydominatedbySMFEs

(includingCFEs),notbylargeindustry.Theforest

economiesofhigh-andmiddle-incomecoun-

tries—includingtheU.S.,Europe,Brazil,India,and

Indonesia—areheavilyweightedtowardsSMFEs53

inboththeshareofforestrevenuesandemploy-

ment.Apartfromthecapital-intensivelarge-scale

pulpandpaperindustry,mostwoodandnon-wood

marketchainsinthesecountriesaredominatedby

SMFEsandwillcontinuetobeso.Africanproducer

countriescanonlymakeoptimalpolicychoicesif

theypayattentiontothese,moreglobal,trends.

The nature of demand for forest products has

shifted dramatically in the past two decades.The

pulpandpaperindustryhasbecomeincreasingly

concentratedamongfewer,largerplayersandis

suppliedincreasinglybyplantationwoodgrown

intemperateclimaticzonesthrougharangeof

ownershipandtenurearrangements.Thissegment

hasaverydifferentstructureandmarketdemand

tothatofsawnwoodandhigh-valuetropicalwood

products,andaverydifferentstructuretodiverse

NTFPmarkets.

Growth in overall demand for forest products

is actually greater in the lower- and middle-income

countries—where the population, and specifically

the urban population, continues to grow—than

in developed countries, which have experienced

a demographic shift towards an older population.

Tradeisalsogrowingamongdevelopingcountries,

andbetweendevelopingcountriesandthosewith

emergingeconomies,withnewdriversanddemand

criteria.Today,Africa’s(mainlyunprocessed)wood

exportstoChinaarematchedbyChina’sexports

of(processed)woodproductstoAfrica(Figure10).

However,mostofthelattergotonon-producer

countriesinAfrica,reducingregionaldemandfor

locallymanufacturedproducts.’54Otheremerging

economiesarewaitinginthewings;India,forex-

ample,isbeginningtopositionitselfmorestrongly

inAfricaandisseekingnewkindsofinvestments

andproductranges.

Domestic and regional markets in develop-

ing countries continue to expand. Thesemarkets,

includingthoseinsub-SaharanAfrica,arecreating

opportunitiesforahostofforest-basedproducts,

includingthosewhereSMFEsalreadypredomi-

nate.Theexpandingdomesticfuelwoodandwood

marketsaredominatedbySMFEsthatoperate

separatelytotheexportsector.Whilemarketsfor

5.1 THE GLOBAL AND DOMESTIC MARKETPLACE: A NEW BALANCE

OF LARGE AND SMALL ENTERPRISE AND OWNERSHIP

21

individualNTFPsarenot,ontheirown,significant

innationalaccounts,theiraggregationindicatesa

dramaticincreaseintheirpotentialtocontributeto

GDP.OfficialstatisticsonNTFPsandtheirmarkets

arehistoricallypoor,thereforemaskingthese

trends;thosedatathatexistareunreliable,and

entiresub-setsofproductsareuncounted.Inreal-

ity,NTFPsareahighlysignificantpartoftheforest

economiesofalmostallforestedcountries(albeit,

indevelopingcountries,mostlyintheinformal

sector).Productsandenterprisesarediverseand

includesubsistenceaswellascommercialtrade

incondiments,medicinalproducts,healthfoods,

traditionalplant-basedfoods,oils,andfibers,and

abroadrangeofanimalproductsandbushmeat,

includinginsects.NTFPsarenotonlyimportant

indevelopingcountries.Estimatesoftheannual

valueoftheseandotherNTFPstotheeconomyof

BritishColumbia(aprovinceofCanada)alonearein

therangeofUS$280million.56AstheInternational

InstituteforEnvironmentandDevelopmentputit

soaptly,“Smallenterpriseisbig!”57

SMFEs are not necessarily less efficient than

larger enterprises. DatafromEurope,theAmericas,

Indonesia,andIndiaallindicateahighlypositive

relationshipbetweenSMFEsandreturnsoncapital

andlabor,andstrongbenefitsthroughthegenera-

tionofemploymentandtheinvestmentofearnings

insocialaswellaseconomicgoods.Casestudies

offurnitureSMFEsinIndonesia,forexample,show

thatifexpandedtomeetdemand,SMFEscould

deliver12%ofthetotalexportvaluefromonly3%

ofthelogsharvestedforthatpurpose,giventhat

thefurnitureindustryinIndonesiaproducesthree

timesasmuchexportincomeasequivalentloguse

inpanelsandsawnwood,andsignificantlymore

thanpulpandpaper.58InChina,87%offoresten-

terprisesareSMFEs,whichcreate90%ofthevalue

generated.

Heavily industrialized forested countries in

the North generate most of their forest employ-

ment through SMFEs.In the European Union,

where 90% of forest-related firms employ fewer

than 20 workers, SMFEs contribute over 50% of

forest-sector employment.59In the U.S., SMFEs

in the sawmilling sector alone contribute 37.4%

of forest-sector employment.Incomparison,

industrialconcessionsinCentralandWestAfrica

FIGURE10.ACOMPARISONOFCHINA’SWOOD-BASEDEXPORTSTOAFRICAANDAFRICA’SWOOD-BASED

EXPORTSTOCHINA

Source: Canby et al. forthcoming55

 

Trad

e vo

lum

e (‘0

00 m

3 )

SMALL SCALE, LARGE IMPACTS22

generateatotalof135,000jobs(Table2)—without

visibleSMFEparticipationorsignificantnewlabor

absorptionintheformalsector.

In countries like Finland and the U.S., where

forestry has long been a major economic activity,

thesector’srelativecontributiontotheeconomy

isdeclining.EveninFinland,wheretheforest

economystillcontributes17%ofGDP,thefocusis

increasinglyonthediversificationofforestuse—

towards,forexample,bioenergy,tourism,recre-

ationandwater.

Cameroon Gabon Congo DRC CAREquatorial

Guinea

Côte

d’IvoireGhana Liberia TOTAL

13,000 11,500 6,500 15,000 4,000 2,000* 25,000 50,000 8,000** 135,000

Source: Karsenty 2007,60 except:* Lebedys, 2004.61 ** UN Security Council, 2003.62

TABLE2.DIRECTEMPLOYMENTINTHEFORMALSECTOR(CONCESSIONS)

TABLE3.SOMEKEYFINDINGSONTHECHARACTERISTICSANDSIGNIFICANCEOFAFRICANSMALL-SCALEFORESTPRODUCTSENTERPRISES

Botswana Kenya Lesotho Malawi Swaziland Zimbabwe

Numberofsmall-scaleforestproducts

enterprises(SSFEs)1,026 127,774 5,561 80,335 17,505 175,004

NumberofSSFEsasaproportionoftotal

numberofSSFEs2.0% 14.1% 5.8% 14.1% 35.3% 20.7%

EmploymentinSSFEs 1,893 350,416 10,420 132,178 30,571 237,136

EmploymentinSSFEsasaproportionofall

small-scaleenterprises2.1% 17.2% 6.7% 13.1% 32.3% 18.5%

Averageannualemploymentgrowthrateof

small-scaleforestproductsenterprises33.2% 23.3% 5.3% 10.7% 5.5% 4.0%

Source: Based on Arnold et al., 1994.63

Brazil China Guyana India South Africa Uganda

%

NumberofSMFEsasaproportion

oftotalforestenterprises98 871 932 87–98 33–95 Nodata

NumberofSMFEemployeesas

proportionoftotalforestemploy-

ment

49–70 50 753 974 25 60

SMFErevenuesasaproportionof

totalforestrevenues75 43 50 825 3 60

1 All forest enterprises; 2 All forest production enterprises; 3 Forest harvesting; 4 Safety match manufacturing; 5 Sawnwood production

Source: Mayers, James and Duncan Macqueen, 2007.64

TABLE4.SOMEKEYFINDINGSONTHECHARACTERISTICSANDSIGNIFICANCEOFSMFEs

23

The evidence from limited case material

and extensive experience in other countries (e.g.

China, India, Indonesia, Mexico, and Western Eu-

rope) suggests that the potential for the develop-

ment of SMFEs is quite high in Central and West

Africa.Ashiftinmodeltooneinvolvingamorelim-

itedallocationofforeststolargeindustrialconces-

sions—withappropriateattentiontothefostering

ofgenderandculturalequityandself-sustaining

enterprises—isessentialforachievingtheMillen-

niumDevelopmentGoalsandrespectingrights

andculturalaspirations.Itwouldalsopromotea

healthiereconomy,improvethestewardshipofthe

region’sforestresources,andreducethethreatof

conflict.Box5shows,inthecaseofMexico,that

SMFEscanhelptotransformruraleconomies.

Securingcommunities’rightstolandand

resourcesisimportantbutinsufficienttoimprovelive-

lihoodsandconservenaturalresources.Thosecommu-

nitiesneedalsotosustainablymanagetheirlandsand

forestsandtocompetitivelyenterthemarketplacefor

forestproductsandservices.65Asthefollowingsection

demonstrates,therearemanyopportunitiesinCentral

andWestAfricaformutuallybeneficialpartnerships

betweencommunityandsmallholderenterprises,the

privatesectorandgovernments.

BOX5.COMPARATIVECASEOFMEXICOCOMMUNITYENTERPRISES

Mexicoisawell-knownexampleofaforesteconomybasedontheownershipofthemajority(morethan80%)offorestlandby

indigenouscommunitiesandland-reformcollectives(ejidos).Thisforestcontributesthelion’sshareofnationalforestconserva-

tionvalues,complementingpublicprotectedareas,andsustainsdiverselivelihoodsandSMFEsrootedincommunitymanagement

structures.Asaresultofhistoricaldistrust oflargeindustryamongcommunitiesandejidos,therearefewprivate–communityjoint

ventures,andmosthigh-valueprocessingindustriesaresuppliedbyimportedwoodfromSouthernConecountriesorBrazil.None-

theless,themorethan2,000CFEswithlegalloggingpermitssupplyarangeofdomesticmarketsandlog-sortingyardsandhaveen-

abledcommunitiestodiversifyeconomically.CFEsalsoprovidesocialinfrastructureandjobsandfinanceforestconservationand

management,whichhashadenormousbenefitsforthestateinforegonedisasterreliefandconservationinvestment.Thediversity

oftheopportunitiesavailabletoCFEshasbeenakeyfactorenablingthemtoemergeandthrive.Whilecollaborationbetweenthe

privateandcommunitysectorsmayincreaseinthefuture,therearemanyotheroptionsforbuildingtheforesteconomy—taking

intoaccountthemultiplerolesandvaluesofforestsandtherealityofculturallyembeddedrurallivelihoods.

Source: Community Forestry Conservation and Development Program (PROCYMAF) II Annual Report. 2008. Mexico City: Government of Mexico (CONAFOR); World Bank. 2009, Implementation Completion Report, Mexico. Washington, D.C.: World Bank.

5.2 WHAT RANGE OF ENTERPRISES EMERGE WHEN FOREST-TENURE

REFORMS RECOGNIZE COMMUNITY AND LOCAL RIGHTS

TO FORESTS?

Thetenuretransitionthatisbeginningtotake

placeinCentralandWestAfricaintheownership

andadministrationofforestlandcreatesanimpor-

tantsetofopportunitiesforSMFEs,includingCFEs.

FUTURE SCOPE FOR SFMEs IN CENTRAL AND

WEST AFRICA

Central and West Africa are rich in forest uses,

livelihoods and SMFEs—both smallholder and

community—but this is not being captured in the

SMALL SCALE, LARGE IMPACTS24

official forest-sector data that guides policymak-

ers.Examplesinothercountriesundergoingreform

intheregion—e.g.Gambia,Rwanda,Burundi,and

BurkinaFaso—documentthepotentialoftraded

NTFPstogenerateemploymentandincomeaswell

ascontributetolocalsubsistencelivelihoods.66

Productswithpromisingprojectionsthatare

tradedbothregionallyandbeyondincludehoney,

karité,moringa,rattanandcanefurniture,and

neemandothermedicinalproductsfromplanted

treestandsandnaturalforests.Governmentsin

Saheliancountriesaretestingmoreparticipatory

waysoforganizingruralfuelwoodmarkets.67Ahost

ofNTFPshavehightradevaluedomesticallyand

withintheregion.Increasingly,NTFPsarealsose-

curingvaluableexportmarketsinEuropeancoun-

tries,wherelargeAfricanimmigrantpopulations

seektomaintaintheirconsumptionoftraditional

foodstuffs,artisanalcrafts,andmedicinalproducts.

SMFEs generate multiple benefit streams,

including local employment, income streams in

small-scale manufacturing in urban areas, and

investments in social infrastructure such as health

and housing. Communitiesalsoprovideimportant,

unremuneratedenvironmentalservicesbyinvest-

inginforestmanagementactivitiessuchasfire

controlandpatrolsagainstencroachmentorother

illegalactivities.

InCentralandWestAfrica,governments

remainreluctanttorecognizethepervasiveand

importantroleoftheinformalsectorintheirforest

economiesandtheneedtobetterintegratethis

scaleandsetofactors.Instead,theyrelegatethe

bulkofSMFEcommercetoillegality,eitherbylaw

orbyapplyingabarrageofcostlyregulationsand

requirements.Thereisalackofreliabledatashow-

ingtheimportantrolethatthisinformalsectoral-

readyplays,andcouldplay,inforestmanagement

anddevelopment.Facedwithalackofinformation

tothecontrary,policymakersworrythat,intheab-

senceofforeigninvestment,thereareinsufficient

numbersoflocalpeopleintheforesttoassume

managementortoestablishtheminimuminfra-

structurerequired.Thisisarealissueinasubsetof

forestareas,butoverallthereisevidencethatthere

ismuchgreaterroomfordiverseapproachesto

forest-basedeconomicactivity.

Some options pertaining to scope and po-

tential are evident in other countries that have

greatly reduced poverty while developing a robust

rural and forest economy.Anumberofpolicymes-

sagesemergefromtheliteratureonthesuccess

Chinahashadincombatingpoverty.Whilegrowth

intheexport-ledmanufacturingsectorthereclearly

playedaroleinreducingpovertyinthe1990sbyab-

sorbingsurpluslaborfromruralareas,intheearly

stagesofChina’sreformprocessthepoverty-reduc-

tion“heavylifting”wasdonebytheruraleconomy.

China’sgrowth-promotingreformsofthelate1970s

andonwardsstartedintheruraleconomy,where,

atthattime,povertywasaswidespreadasalmost

anywhereelseintheworld.Theinitialeconomic

agentsofchangewerecountlesssmallholders,

whoincreasedtheiroutputinresponsetonewly

unleashedmarketincentives.Induecourse,the

policyemphasisswitchedtothenon-farmurban

economy,andthesubsequentabsorptionofrural

laborwasclearlyimportantforcontinuedprogress

inpovertyreduction.Now,inChina,alargenumber

offorestsmallholderssupplyindustrywithhigh-

qualityplantationandnaturalforestproductsand,

inanumberofforestprovinces,forestryatthe

communelevelisamajorsourceofincome.Allthis

stemsfromtheexpansionofreformsinthelate

1970stothelarge-scaleforestsector.68

STEPS TOWARDS AN ENABLING

ENVIRONMENT FOR SMFEs

Among the many factors that influence the

transformation towards community forest-based

entrepreneurship, the nature of the rights of

forest communities to access, manage, and com-

mercially exploit forest resources stands out. The

distributionandallocationoftenurerightsshape

thetypeofforestindustrythatisestablished

anddeterminethedegreetowhichthatindustry

contributestosocialandeconomicdevelopment.

SMFEscannotgrowwithoutcleartenuresecurity

overtheforestlandsuponwhichtheenterprises

25

arebased.Guaranteedaccesstoresourcesisa

necessaryconditionforthedevelopmentofall

SMFEs,whethersmallholder,family,orcommunity-

based.Suchaccessmustberecognizedlegallyand

enforcedbytherelevantauthorities.

Secure tenure will not, on its own, guarantee

the successful emergence or growth of SMFEs,

however.Anenablingenvironmenthasotherele-

ments.Forexample,accesstomarketsandmarket

informationisessential:SMFEsareoftenhampered

intheireffortstoaccesslocal,national,andinter-

nationalmarketsbyalackofinformationandby

regulatoryandotherbarriers.Experiencehasshown

thatsupportforproductandmarketdevelopment

significantlyimprovestheperformanceofSMFEs.

The supportive role of government and

private technical service providers can be key, as

long as the model is one of building capacity and

solving start-up problems rather than substi-

tuting leadership and control. Thecasestudies

conductedaspartofATEMSidentifiedanumberof

factorsforsuccess,whichmirrorlessonsinother

studiesonSMFEsinAfricaandelsewhere.These

includesecurelegaltenureovertheresource;

traininginproductdevelopment,marketing,and

financialmanagement;accesstocredit;accessto

markets;connectionstootherentrepreneurs;and

theenforcementofregulationsthatreduceillegal

andunfairmarketcompetitionwithoutcreating

requirementsforSMFEsthataretoocostlytomeet

orthatdelayreturnsfortoolong.

Women are leaders in the generation of in-

come from NTFPs.Womenplayanimportantrolein

thedevelopmentandrunningofSMFEs,especially

thoserelatedtoNTFPsandwood-basedbioenergy,

withmajorbenefitsforlocaleconomies.Insuf-

ficienteffortisbeingmade,however,tosupport

theroleofwomeninforestmanagement.Provid-

ingsupportforwomen’snetworksandcollective

forestenterprisescanhelpthemtosolveproblems,

strengtheninstitutions,andgarnermarketshare.

The state plays a key role in supporting or

hindering the development of SMFEs.Despitetheir

socio-economicimportance,SMFEs,andCFEsin

particular,arefarfromachievingtheirfullpoten-

tialcontributiontolocalandnationaleconomies.

Thestatecanplayanimportantroleinencourag-

ingSMFEs,includingbyprovidingincentivesand

technicalsupport.

STEPS TOWARDS CHANGING THE STRUCTURE

OF THE FOREST INDUSTRY

Transformation is not only about support-

ing the emergence and growth of SMFEs; it is

also about transforming the forest tenure and

industry structure towards a healthier blend of

large- and small-scale enterprises and community,

private, and public ownership. Atthesametime

thatgovernmentscantakepositivestepstoenable

theemergenceanddevelopmentofSMFEs,they

canalsochangethestructureoftheforestindustry

towardsamorediversemixoflargeandsmallen-

terprises(andimprovedrelationsbetweenthem),

andamorebalancedmixofdomestically,region-

ally,andgloballyorientedforest-producttrade.

Suchatransformationrequiresare-evaluation

ofthemodelsandprocessesbywhichforestlands

areallocatedandgoverned,includingtheindustrial

concessionsmodelandthemodelsofconservation

thatgovernprotectedareasandtheirbuffers.

Where industrial-scale forest concessions are

viable, there are multiple ways to create synergies

with small-scale operations—whereby small-

scale operators can take advantage of industrial

infrastructure or training in industry skills. Com-

munitiescandevelopmeaningfulpartnershipswith

industrial-scaleconcessionsinmanywaysthatben-

efitruraleconomies.Therearealsomanyarrange-

mentsrelatingsmall-,community-,andindustrial-

scaleinvestorsandenterprisesatvariouspointsin

thevalueandmarketchains.Whilethecertification

ofindustrialconcessionsandtheirexportchainhas

madeanimportantcontributiontobenefitstreams

forruralcommunities,globaltrendsindicatea

muchmorediversestructureintheglobalforest

economyinthefutureandaverydifferentfuture

blendofscales.Certificationcanclearlycontribute,

butonlyaslongasisdoesnotbecomeabarrierto

smaller-scaleentryintothevaluechain.

SMALL SCALE, LARGE IMPACTS26

Overall, in many countries a new analysis is

needed to properly identify the potential of the

forest sector at all scales to contribute to equi-

table economic growth, rural development, and

poverty reduction, and to identify an appropri-

ate tenure and regulatory framework that helps

forest economies to diversify beyond a narrow,

export-led base.Thereisaseverebiasinconven-

tionalanalysesoftheforestsectorthatfavorthe

industrialconcessionsmodel,albeitwithimprove-

ments.Thisgreatlylimitsnotonlythepolicyand

economicdirectionsconsideredbygovernments

andtheprivatesectorbutalsotheinterventions

proposedbyandwithdonorsandmultilateral

financeinstitutionstopromotesustainableforest

developmentintheregion.Countriesneedbetter

analysesoftheforesteconomyandthecapacity

ofSMFEstodeliverbothquantityorquality;they

alsoneedabetterunderstandingofthepotential

ofdomesticandregionalmarkets.Manylessons

havebeenlearnedregionallyandgloballyonways

toavoidtheover-harvestingoffragileNTFPsandto

overcomethebarriersandconstraintstoproduc-

tion,processing,marketing,equity,andlegality;

theseshouldbebetterdisseminated.

27

Transforming the African Forest Industry to Advance Development, Growth, and Governance 6

CentralandWestAfricancountriesundergoing

tenureandforestpolicyreformsaimforthegreater

incorporationofcustomarytenureandrightsover

forestresourcesandtodecentralizeadministration

andmanagementtolocalgovernments(including

traditionalauthorities).Awiderangeofoptions

forsuchreformsareavailablethatwillensurethat

forestsplayamorepositiveroleinpovertyreduction,

climateadaptability,equitablegrowth,andimproved

governance.However,achievingsuchchangemeans

aradicaldeparturefrommanyassumptionsthat

havepreviouslyshapedlegalandpolicyframeworks

fortenure,governance,andeconomicactivities.

Theexport-orientedindustrialconcessions

modelthatstillpredominatesinmanycountries

inCentralandWestAfricaisnotcontributingto

widelysharedgrowthorsustainabledevelopment.

Ratherthanservingasasteppingstonetovertical

integrationanddiversificationorasadriverofna-

tionalgrowth(asfrequentlystatedinthepoverty

reductionstrategyplans—PRSPs—offorested

countries),thewood-exporttradetypicallyby-

passeslocalprocessingoperatorsandcontributes

inonlyalimitedwaytoemployment.Moreover,

woodproductionbyindustrialconcessions,mostly

forglobalexport,isnotbeingcomplemented

byalegalsupplytomeetdomesticandregional

demand.Theindustrialconcessionsmodelisalso

characterizedbypervasivecorruptionandby

benefitsthatareskewedtowardselitevestedinter-

ests—duetotheopportunitiesavailableforbusi-

nessoperatorsandgovernmentofficialstoexploit

thelackoftransparencyinconcessiontransactions

andthediscretionaryapplicationofnormsand

regulations.Theseproblemsarecommontomany

resource-richeconomiesandareverydifficultto

changewithoutfundamentalinstitutionalreforms

thataresensitivetotherealitiesofthespecific

country.

Certificationhascreatedanincentivefora

significantandgrowingsetofcompaniestoadhere

toworthyperformance,management,andbenefit-

sharingstandards.Itisconcentrated,however,in

concessionslinkedtoEuropeanorU.S.marketsand

doesnotaddressdomesticandregionalmarketor

employmenttrade-offs.Moreover,givencurrent

markettrends,thegrowthindemandwillcomein-

creasinglyfromAsianandMiddleEasterninvestors,

wherecertificationisnotyetimportant.

Inotherforestedcountriesthatunderwent

significanttenurereformmuchearlier,SMFEsplay

acriticalanddominantroleinforestindustryand

theoveralleconomy.Inanumberofhigher-income

countries,includingtheU.S.andinEurope,SMFEs

generatethebulkofforest-sectoremployment,give

ahighreturnperunitofforestproductextracted,

andmakeimportantcontributionstolocalincome

streamsandsocialneeds.

6.1 SUMMARY ANALYSIS

SMALL SCALE, LARGE IMPACTS28

SMFEsandCFEsarealreadyanimportantpartof

rurallandscapesinCentralandWestAfrica,andcould

bemoreimportant.Non-officialornon-aggregatedof-

ficialdatashowthatthereisarobustinformalforest

economybasedonwoodandnon-woodharvesting

andsmall-scaleindividualandcollectiveenterprises.

Domesticlumbersupply,thefurniture-making

industry,NTFPsforfoodstuffs,condiments,medicinal

andcosmeticuses,andrawfibermaterialallhaveex-

tensivelocaluseandcomplexregionalmarketchains,

somereachingmarketsgeneratedbyimmigrantsof

AfricanorigininEuropeandelsewhere.Therearealso

nichefair-tradeandorganicNTFPexportmarkets.

Theseoptionsandproductscontinuetobepoorly

appreciated,andarerarelyfactoredintoeconomicor

forestpoliciesandreformdialogues.

Unlikeindustrialconcessions,SFMEsare

intrinsicallytiedtothecommunitiesinwhichthey

arelocated,provideneededgoodsandservices,

andgeneratewealththatstayswithincommuni-

ties.Theyalsocreatemoreopportunitiesforlocal

employmentandaremorelinkedtodomestic

processingindustries,addingvaluetotimberand

leadingtoindirectmultipliereffects.Thus,SMFEs

havethepotentialtocontributestronglytopoverty

alleviation,socialandeconomicdevelopment,and

thesustainabilityofforesteconomies.

Whiletheroleofforestsisrecognizedinmany

PRSPs,therehavebeeninsignificantmeasuresor

reformstosupportthatrole.69Thelackoftenure

(ownership,access,use,andtraderights)instate

forestlandsmakesitdifficultforsemi-nomadic

forestpeoplestolegallygatherforestproductsfor

traditionalsubsistence.Moreover,restrictionson

tenureandusebyforest-dependentpopulations

limittheemergenceandexpansionofenterprises

thatcouldotherwiseuseforestsasacapitalasset.

Alackofclarityovertenureincreasesconflict

amongandbetweengroupsandobstructsimpor-

tantopportunitiesforpovertyreduction.

InMay2009,CentralandWestAfricangovern-

mentofficials,researchers,andrepresentativesof

communitisandcivil-societyorganizationsmetin

Yaoundé,Cameroon,attheInternationalConfer-

enceonForestGovernance,TenureandEnterprise:

NewOpportunitiesforLivelihoodsandWealth

inCentralandWestAfrica.Amongotherthings,

participantsdeliberatedoncurrenttrendsand

opportunitiesintenureandforest-sectorreform

andtheirimplicationsforthefutureofforest

enterprise.Theyidentifiedanumberofchallenges

toreformintheircountriesandmadearangeof

recommendationsforreachingtheirgoals.Someof

thesearepresentedbelow.

CHALLENGES

Attitudes are hard to change. Strongvoicesin

governmentandtheprivatesectorwhofavorthe

traditionalforest-developmentmodelorfearthat

industrialconcessionsmaybeasunsetindustryare

earmarkingtheforestsforotherextractiveandsub-

soilactivities,commercialplantations,andenergy

infrastructure.

Corruption is a serious problem, andgovern-

mentinstitutionsarenotstructuredtodeliverthe

kindofoversightandservicesneeded.

Socio-cultural variation requires flexible solu-

tions.Thereisgreatsocio-politicalvariationinthe

subregion.Settlementandlivelihoodspatternsare

complex,withmultipleethnicgroupsanddifferent

hierarchiesofpowerandinfluence,arealitythat

givesgovernmentspauseindevolvingthecontrol

offoreststowardaformoflocalgovernancethat

mayendupbeingcontrolledbylocalelitesorthat

mayselectivelyexcludemarginalpeoples.Somear-

eashaverelativelystrongcustomarygovernancein

favorofbalancedforestmanagementanduse,and

6.2 CHALLENGES AND RECOMMENDATIONS FOR MOVING FORWARD

29

strongtraditionsofmediatingcompetinginterests

andconflicts,whileotherswillneedprocessesto

supporttheriseofinclusiveandeffectiveresource

governance.

Regulatory, skill, and market barriers must

be addressed. SMFEsfacemanybarrierstotheir

emergenceandsuccess,includingpoorinfrastruc-

ture;limitedcontactswithandinformationabout

markets;alackoforganizationalandtechnical

capacity;andapersistingregulatoryframework

thatimposeshighcostsandcomplicatedrequire-

ments.Taxstructures,fiscalmechanisms,and

regulatoryframeworksforforestaccessanduse,

management,andprocessingindustriesareallin

needofreview.

Social movements and community networks

are weak. Representativecommunity-basedorgani-

zationsandnon-governmentalorganizationsactive

intheforestsectorexist,buthigher-level,represen-

tativeorganizationsarefew,andtheirnetworks

tendtobeweakordominatedbytheobjectivesof

outsideprojectsordonors.

Existing models of support for community

forestry have been “boutique” and focused on a

limited set of highly orchestrated models. They

havefailedtocreateabroadunderstandingwithin

communitiesandsocialorganizationsoftheop-

portunitiesforandpotentialdirectionofSMFEs,

includingCFEs.

Databases are fragmented and administered

by different agencies. Governments,researchers,

andcivilsocietyhavelimitedunderstandingofthe

contributionofdifferentforestactivitiesandprod-

uctstotheoveralleconomyortofuturedemandin

domesticorregionalmarkets.

Disadvantaged actors—such as women and

vulnerable minorities—have very limited access

toforestresources,markets,information,finance,

technology,anddecision-making.

RECOMMENDATIONS FOR GOVERNMENTS

ENGAGED IN REFORMS

Anumberofpossibleinterventionsandpolicy

changescanbemadetoimprovebusinessand

institutionalframeworksandallowmultipletenure

andenterprisemodelstothriveandinteract.Each

setofactorshasaspecificroletoplay,asindicated

below.

Set targets for transferring the administra-

tion or ownership of public forests to the local

level on a significant scale and over a reasonable

time frame.Forest-tenuresecurityhasimplica-

tionsforpeace,security,andgovernanceaswellas

economies.Ministriesoffinanceandthevarious

sectoralagenciesneedtorecognizethepay-offs

frommoving,withinareasonabletimeframe,toa

newforest-tenureregimewhichempowerscustom-

aryforestrights-holdersandlocalgovernance

structureswhileestablishingthebasisforsustain-

ableforestmanagementandavibranteconomy.

Forest-tenurereformshouldbeintegratedwithin

otherland-tenurereformsalreadyunderway.

Pursue a rights-based approach and recog-

nize customary forest rights-holders. Recogni-

tionneedstogobeyond‘customaryusage’and

‘axerights’totheunderlyinggovernancesystems

aroundtenureandrights.Toolssuchascommunity

capacitybuilding,participatoryrightsmapping,

andnegotiationplatformsshouldbeusedtoad-

dressconflictsandavoidelitecapture.

Analyze the market and forest economyinthe

countrieswhereSMFEspredominatetoidentify

alternativestothecurrentpredominanceofthe

industrialconcessionsmodelandtolegalizealarge

portionofwhatisnowconsideredillegalwithinthe

informaleconomy.

Seek to foster systems of smart regulations

whichrethinktheroleofthestateasregulatorand

areappropriatetotherangeofforestownersand

administrators,theruralandforesteconomies,and

thescaleofextractionandenterprise.

RECOMMENDATIONS FOR FOREST PRODUCER

COMMUNITIES AND NETWORKS

Exchange information with like-minded com-

munities and organizations on existing oppor-

tunities to modify and scale up SMFEs and CFEs,

includingsmall-scaleloggers,NTFPcollectorsand

SMALL SCALE, LARGE IMPACTS30

traders,thefuelwoodandinformalwoodmarkets,

andthewood,fiber,furniture,andotherprocessing

industries,toencourageenvironmentalcompliance

andboosteconomicandsocialreturns.

Seek out lessons from other countries and

regions on how forest producers acting collec-

tively havegainedbetteraccesstomarkets;market

information;supportforcapacitybuildingand

strengthenedorganizationaroundenterprises;

greaterequityforwomenandvulnerablecommu-

nitymembers;andaccesstocreditandinfrastruc-

ture.

Use networking strategicallytolearnabout

andanalyzenewmarketsandopportunities,influ-

encedonorthinkinginglobalfora,andengage

governmentpolicymakersnationallyinthedevel-

opmentofsupportivepoliciesandsmarterregula-

tionsforforestenterprisesandcommunity-driven

conservation.

RECOMMENDATIONS FOR DONOR AND

GOVERNMENT INVESTMENT AND PROGRAM

DESIGN

Avoid piloting that creates “boutique” or

artificial CFEs that can neither be sustained over

time nor provide replicable options at scale. Learn

fromdevelopedforestedcountriesinwhichSMFEs

arethepredominantemployersandconstitutethe

largestshareofforestenterprisesastohowtheir

foresteconomiesdevelopedovertime,andgainan

understandingofthediversityofmodelsthathave

workedinvariouscountriesandforestlandscapes.

Invest in the appropriate infrastructure for

a more diversified forest industry, lookingatal-

ternativetechnologiesforenergy,production,and

transportation,andthepotentialforcommunity–

companypartnershipsthataremutuallybeneficial.

Seek to create preferential markets for com-

munity productsthatarenotlimitedtoforest-man-

agementcertificationandincludinggovernment

procurementpreferences.

Invest in building the capacity of SMFEs and

community forest governanceasdirectlyaspos-

sibleratherthanthroughintermediaries—recog-

nizingthevalueofhorizontallearningandstrategic

networksdrivenbycommunity-basedorganiza-

tions.

31

ANNEX: Key RRI ATEMS briefs and related publications

ATEMs OVERVIEWS AND COUNTRY CONTEXT STUDIES

Social Policies of Forest Concessionaries in West and Central Africa. AlainKarsenty.November2008.RRIand

CIRAD.

Small and medium forest enterprises: Instruments of change in the developing world. RobertKozak.2007.

RRIandUniversityofBritishColumbia.

Summary Overview Report of the Status of Forest Industry and Trade in Central and West Africa.Gene

Birikorang,2007.

Contributions from Large-Scale Forest Concessions and Small-Scale Forest Enterprises in Central and West

Africa. NiruYadav.2008.

Comparison of economic growth and governance between high forest and low forest countries. Briefing

Note. Anne-SophieSamjeeandAndrewDavis.September2007.

Alternative Tenure and Enterprises: Ghana Country Context Study. GeneBirikorang,Mar.2008.RRIandHam-

iltonConsultingCompany.

Overview of the History of Forest Policy Property Rights Industry and Trade in Cameroon and Opportunities,

Restraints and Recommendations for Community Forest Enterprise Development in Cameroon. Peter

Mbile,etal2008.RRIandICRAF.

ForestProductsTradeBetweenChinaandAfrica:AnAnalysisofImportsandExports.Canby,Kerstin,James

Hewitt,JordanSauer,EugeniaKatsigrisandXiufangSun,Forthcoming.2010update.ForestTrends,Wash-

ington,D.C.http://www.forest-trends.org.

ATEMs CASE STUDY BRIEFS

ENGLISH-LANGUAGE BRIEFS

Cameroon:Alternate Tenure and Enterprise Models in Cameroon: Community Forests in the Context of Com-

munity Rights and Forest Landscapes. PeterMbilewithGilbertNdzomo-Abanda,HermannEssoumba,and

AnicetMinsoumaBodo.May2009.

TheGambia:The Gambia: Alternative Tenure and Enterprise Models.KanimangCamara.May2009.RRIand

NACO.

Ghana:Alternative Tenure and Enterprise Models in Ghana.KwesiBeduMensah,YawPoku,MercyOwusu

Ansah,GeneBirikorang.May2009.

Ghana:Alternative Tenure and Enterprises in Ghana.GeneBirikorang,KwesiBeduMensah,YawPoku,and

MercyOwusuAnsah.May2009.

Liberia:Pit-Sawing Operation in River Cess County, Liberia: Promising Models for Small-Scale Forest Enter-

prises.FrancisK.Colee.May2009.RRIandGreenAdvocates.

FRENCH-LANGUAGE ATEMs CASE STUDY BRIEFS

BritishColumbia:Gestion communautaire des ressources forestières en Colombie Britannique, Canada : Le

cas des premières nations.BelmondTchoumba,CécileNdjebet.May2009.CED,CameroonEcologyand

RRI.

32

BurkinaFaso:Amélioration de l’équité et des moyens de subsistance dans la foresterie communautaire au

Burkina Faso.BocarKante.May2009.CIFORandRRI.

Burundi:Propriété alternative et modèles des Petites et Moyennes Entreprises Forestières pour la crois-

sance économique en faveur des pauvres en Afrique centrale et Occidentale : cas de l’association des tra-

dipraticiens (ATRAPRABU) du Burundi.DiomèdeManirakiza,SalvatorNdabirorere,CletoNdikumanenge,

ThaddéeHabiyambereetChantalWandja.January2009.

Guatemala:Guatemala : Etudes des Cas sur les Modèles Alternatifs de Propriété Foncière et Entreprises

Forestières.PatriceAndréPa’ah;MarikeMichel.May2009.CAFTandRRI.

Rwanda:Propriété alternative et modèles des Petites et Moyennes Entreprises Forestières pour la crois-

sance économique en faveur des pauvres en Afrique centrale et Occidentale : cas de la coopérative

« moringa growers » (Rwanda).DiomèdeManirakiza,SalvatorNdabirorere,CletoNdikumanenge,Thaddée

HabiyambereetChantalWandja.January2009.IUCNandRRI.

LISTENING, LEARNING, AND SHARING LAUNCH (LLSL) AFRICA DOCUMENTS

Are Secure Rights to Forests Enough for Rural People to Really Benefit? – Some Lessons from Africa.Barrow,

Edmund,JKamugisha-Ruhombe,IsildaNhantumbo,ReneOyono,andMouminiSavadogo.(Drawnfrom

IUCN-RRIreport:Barrow,etal.,2008,“GovernmentsareDevolvingResponsibilityforForestManagement

inAfrica,butareruralpeopleabletotakeontheirRights?.”http://www.rightsandresources.org.andfrom

Barrowetal,2007.RRIandIUCN.http://cmsdata.iucn.org/downloads/rri_2008_1_14_03_ed_africa_llsl_

presentation.pdf

Forests Are Important to the Rural People of Africa – Some Empirical Data.Barrow,Edmund,Kamugisha-

RuhombeJones,IsildaNhantumbo,ReneOyono,MouminiSavadogo.May2009.RRIandIUCN.http://www.

rightsandresources.org

*Allpublicationsareavailableathttp://www.rightsandresources.org/publications.php

33

1 Larson,AnneM.,DeborahBarry,GangaRamDahalandCarolJ.Colfer,ed.2009.ForestsforPeople:CommunityRightsandFor-

estTenureReform.London:Earthscan.Ch10.

2 Mbile,Peter,withGilbertNdzomo-Abanda,HermannEssoumbaandAnicetMinsoumaBoda,2008.AnOverviewofHistoryand

EvolutionofForestPolicy,PropertyRights,IndustryandTradeinCameroon.Washington,D.C.:RightsandResourcesInitiative.

http://www.rightsandresources.org

3 Conventionalpolicywisdominotherregionshasarguedthatthemoreexternalthecausesofdeforestation,themorethat

reformshouldseektostrengthenthecommunity’sexclusionandinternalrule-makingrightswhileprovidingappropriatefo-

rumsfornegotiationwithpoor,externalusers(seeMwangiandDohrn2008);themoreinternalthecauses,thegreatertherole

forthestate.Mwangi,EstherandStephanDohrn.2008.SecuringAccesstoDrylandsResourcesforMultipleUsersinAfrica:A

ReviewofRecentResearch.Washington,D.C.:ConsultativeGrouponInternationalAgriculturalResearchSystemwideProgram

onCollectiveActionandPropertyRightsandInternationalFoodPolicyResearchInstitute.

4 Karsenty,Alain.2007.OverviewofIndustrialForestConcessionsandConcession-BasedIndustryinCentralandWestAfrica

andConsiderationsofAlternatives.Paris:AgriculturalResearchforDevelopment(CIRAD)andWashington,D.C.:RightsandRe-

sourcesInitiative.Hatcher,Jeffrey,LukeBaileyandWilliamD.Sunderlin,2009.WhoOwnstheForestsofAfrica?AnIntroduction

totheForestTenureTransitioninAfrica,2002–2008.Washington,D.C.:RightsandResourcesInitiative.http://www.rightsandre-

sources.org

5 Tchoundjeu,Zac.2009.ICRAFpresentationontreedomesticationofCentralAfricanspecies,fortheConferenceSahelWork-

shopMovingBeyondForestryLawsThroughCollectiveLearningandActionorganizedbytheWorldAgroforestryCentre–West

andCentralAfrica,5–9May,Bamako,Mali.

6 Mbile,Peter,etal.2008.Ascitedinendnote2.

7 Hatcher,Jeffrey,LukeBaileyandWilliamD.Sunderlin,2009a.TropicalForestTenureAssessment:Trends,ChallengesandOppor-

tunities,RightsandResourcesInitiative.http://www.rightsandresources.org.Sunderlin,WilliamD.,JeffreyHatcher,andMegan

Liddle.2008.FromExclusiontoOwnership?ChallengesandOpportunitiesinAdvancingForestTenureReform.WashingtonD.C.:

RightsandResourcesInitiative.http://www.rightsandresources.org/documents/files/doc_1075.pdf

8 Interestinthetransitionishigh—ITTO,theGovernmentofCameroon,RRI,FAO,CIFOR,ICRAF,andIUCNorganizedtheInterna-

tionalConferenceonForestGovernance,TenureandEnterprise:NewOpportunitiesforLivelihoodsandWealthinCentraland

WestAfricainMay2009,where250participantsoutlinedtargetsandrecommendationsfornewreformsbuiltontherecogni-

tionofcustomaryrightsandsupportiveofdiverselivelihoodsandincomestrategies.Documentsrelatedtotheconference

canbefoundathttp://www.rightsandresources.org/events.php?id=74

9 Forexample,theCOMIFACConvergencePlan,whichwasadoptedbytheHeadsofStateofCentralAfricain2005,definesa

commonregionalinterventionstrategyforthecountriesofthesubregionandtheirinternationaldevelopmentpartners.

http://www.cbfp.org/comifac_en2.html

10 LeRoyE.,A.KarsentyA.,andA.BertrandA.(1996),.LasécurisationfoncièreenAfrique,pourunegestionviabledesressources

renouvelables,Paris:Karthala(22-24bdArago,75013Paris).

11 Hatcheretal,2009a.Ascitedinendnote7.

12 Governmentbudgetsforprotectedareasarelessthan€1perhectare,withinternationalfundingonlyaddingabout€1–1.5

perhectare(deWasseigeetal.2009).Evenwiththepromiseofclimate-mitigationfunding,itishighlyunlikelythatthecurrent

modelofconservationisviable,giventhatdevelopedcountriesspendmorethanUS$1000perhectare(Green1997).deWas-

seigeC.,D.Devers,P.deMarcken,R.Eba’aAtyi,R.NasiandPh.Mayaux,eds.2009.TheForestsoftheCongoBasin—Stateofthe

Forest2008.Luxembourg:PublicationsOfficeoftheEuropeanUnion;Green1997[pleaseprovidereferenceinformation.]

13 Karsenty2007(ascitedinendnote4);Kozak,Robert.2007.SmallandMediumForestEnterprises:InstrumentsofChangeinthe

DevelopingWorld.Washington,D.C.:RightsandResourcesInitiativeandUniversityofBritishColumbia.

14 Birikorang,Gene.2007.SummaryOverviewReportoftheStatusofForestIndustryandTradeinCentralandWestAfrica,Wash-

ington,D.C.:RightsandResourcesInitiative.

Endnotes

34

15 Karsenty,Alain2005.WoodinCentralAfrica:Aproblemofgovernance.AfricanPerspectives,Geopolitics17:97–11.

16 ITTO.2008.AnnualReviewandAssessmentoftheWorldTimberSituation,2008.DocumentGI-7/08.Yokohama:International

TropicalTimberOrganization.www.itto.or.jp

17 Karsenty2007.Ascitedinendnote4.

18 Canby,Kerstin,JamesHewitt,JordanSauer,EugeniaKatsigrisandXiufangSun,Forthcoming.ForestProductsTradeBetween

ChinaandAfrica:AnAnalysisofImportsandExports.2010update.ForestTrends,Washington,D.C.http://www.forest-trends.

org.

19 Karsenty,Alain.2010.LargeScaleAcquisitionsofRightsinForestLands-Africa.CIRADandRRIbackgroundpaperforforthcom-

ingCommercialPressuresonLandstudy,InternationalLandCoalition,Washington,D.C.,http://www.rightsandresources.org.

20 Canbyetal.2010.Ascitedinendnote18.

21 Karsenty2010.Ascitedinendnote19..

22 Canbyetal.2010.Ascitedinendnote18.

23 Ibid.

24 Birikorang2007.Ascitedinendnote14.

25 Ibid.

26 Ibid.

27 Osei-Tutu,P.,Nketiah,K.,Kyereh,B.,Owusu-Ansah,M.andFaniyan,J.(2010)Hiddenforestryrevealed:Characteristics,con-

straintsandopportunitiesforsmallandmediumforestenterprisesinGhana.IIEDSmallandMediumForestEnterpriseSeries

No.27.TropenbosInternationalandInternationalInstituteforEnvironmentandDevelopment,London,UK.

28 LescuyerG.,P.O.Cerutti,S.Assembe,E.EssianeMendoula,J.Nguiebouri,J.P.Ondoua.2009.Thetimberdomesticsectorin

Cameroon:Preliminaryanalysisandissues.In:RegionalWorkshoponChainsawLumberinginWestAfrica,25–26May2009,Ac-

cra,Ghana;Cerutti,P.O,G.Lescuyer,E.NguiebouriandP.P.Ondoua.2009.ThedomesticTimbersectorintheCongoBasin,2009.

Presentationat14thIllegalLoggingUpdateandStakeholderConsultation,ChathamHouse,London,23June2009.

29 Ibid.

30 Birikorang,Gene,MercyOwasu-Ansah,KwesiBeduMensah,,andYawPoku2008.AlternativeTenureandEnterprisesinGhana:

ACountryContextStudy.HamiltonResourcesandConsulting.RRIWorkingPaper.Washington,D.C.:RightsandResources

Initiative,http://www.rightsandresources.org.

31 Osie-Tutu,P.2010.Ascitedinendnote27.

32 Djiré,A.2003.Lesecteurinformelduboisd’œuvre.Rapportd’appuiàlarevueéconomiquedusecteurforestierenRDC.Rapport

technique,CIRAD.MinistèredesFinances,RépubliqueDémocratiqueduCongo.

33 CerrutiP.O.andL.Tacconi.2006.Forests,Illegality,andlivelihoodsinCameroon.CIFORWorkingPaper35.Bogor:Centerfor

InternationalForestryResearch.www.cifor.cgiar.org/publications/pdf_files/WPapers/WP-35.pdf

34 Birikorang2007.Ascitedinendnote14.

35 Blackett,Hugh,AiahLebbieandEmanuelMarfo.2009.ChainsawLogginginLiberia:AnAnalysisofChainsawLogging(Pit-

Sawing)intheNaturalForestsofLiberiaTowardsAMoreSustainableProduction.Monrovia:ForestryDevelopmentAuthority;

Colee,Francis.2008.Pit-SawingOperationsinRiverCessCounty,Liberia:PromisingModelsforSmall-ScaleForestEnterprises.

Workingpaper.RRIandGreenAdvocates,http://www.rightsandresources.org.

36 Ibid.

37 Birikorangetal.2008.Ascitedinendnote30.

38 Birikorangetal.2008.Ascitedinendnote29;Birikorang,G.,C.P.Hansen,andT.Treue.2007.CurrentTaxationSystem,Ghana

ForestryCommission,http://www.vpa-livelihoods.org/.

39 Ndoye,O.andA.Awono.2005.TheMarketsofNon-timberForestProductsintheProvincesofEquateurandBandundu,DRC.

CIFORCentralAfricaRegionalOffice.Yaoundé:CenterforInternationalForestryResearch;Mbile,Peter.2008.ForestIndustry&

TradeinCameroon:CurrentSituation,Trends&Prospects.AContextReportandAnalysis.RRIWorkingPaper.Washington,D.C.:

RightsandResourcesInitiative.www.rightsandresources.org

35

40 Oyono,P.R.,M.BiyongandS.Kombo.2009b.LesNouvellesNichesdeDroitsForestiersCommunautairesauCameroun:Effets

CumulatifssurlesMoyensdeSubsistanceetLesFormesLocalesdeVulnérabilité.Rapportderecherche.Yaoundé:Centerfor

InternationalForestryResearch.

41 Djiré,A.2003.Lesecteurinformelduboisd’œuvre.Rapportd’appuiàlarevueéconomiquedusecteurforestierenRDC.Rapport

technique,CIRAD.MinistèredesFinances,RépubliqueDémocratiqueduCongo;Barrow,Edmund,Kamugisha-RuhombeJones,

IsildaNhantumbo,ReneOyono,MouminiSavadogo.2009.ForestsareImportanttotheRuralPeopleofAfrica–SomeEmpirical

Data.May2009.RRIandIUCN.http://www.rightsandresources.org;WorldBank,CIFORandCIRAC.2007.ForestsinaPost-

ConflictDemocraticRepublicofCongo:AnalysisofaPriorityAgenda.Washington,D.C.:WorldBank.http://go.worldbank.org/

OJZ1CBO740

42 Hatcheretal.2009a:17.Ascitedinendnote7.

43 Collier,Paul,2006.TheBottomBillion:WhythePoorestCountriesareFailingandWhatCanbeDoneAboutIt.Oxford:Oxford

UniversityPress;Page,John.2008.RowingAgainsttheCurrent:theDiversificationChallengeinAfrica’sResource-richEcono-

mies.GlobalEconomyandDevelopmentWorkingPaper,29December2008.PaperpreparedfortheAfricaEconomicResearch

Consortium20thAnniversaryConference,15–17September2008,Nairobi,Kenya.Washington,D.C.:Brookings;Ravallion,

Martin.2008.AreThereLessonsforAfricafromChina’sSuccessagainstPoverty?WorldBankPolicyResearchWorkingpaper

4463;Counsell,Simon.2007.Forricher,forpoorer:loggingandlivelihoodsintheCongoBasin.InConcessionstoPoverty:The

Environmental,SocialandEconomicImpactsofIndustrialLoggingConcessionsinAfrica’sRainforests.TheRainforestFounda-

tion,UK.

44 Kolstad,IvarandTinaSøreide.2009.Corruptioninnaturalresourcemanagement:Implicationsforpolicymakers.Michelsen

Institute,Norway.AvailablethroughScienceDirect–www.sciencedirect.com.

45 Samjee,Anne-SophieandAndrewDavis,2007.ComparisonofEconomicGrowthandGovernancebetweenHighForestandLow

ForestCountries.RRIBriefingNote.Washington,D.C.:RightsandResourcesInitiative;Easterly,William.2009.TheElusiveQuest

forGrowth:Economists’AdventuresandMisadventuresintheTropics.Cambridge:MassachusettsInstituteofTechnology.

46 TheFundforPeaceFailedStateIndex.http://www.fundforpeace.org/web/index.php?option=com_content&task=view&id=99&

Itemid=140.

47 TransparencyInternational.2008.CorruptionsPerceptionsIndex2009.TransparencyInternational.http://www.transparency.

org/policy_research/surveys_indices/cpi/2009.

48 FreedomHouse.FreedomintheWorld2008.FreedomHouse.http://www.freedomhouse.org/template.cfm?page=351&ana_

page=352&year=2009

49 Wily,LizAlden.Forthcoming.CurrentConflictsAroundtheWorld.

50 SamjeeandDavis2007.Ascitedinendnote45.

51 Birikorangetal.2008.Ascitedinendnote30.

52 WorldBank,CIFORandCIRAD.2007.ForestsinaPost-ConflictDemocraticRepublicofCongo:AnalysisofaPriorityAgenda.

Washington,D.C.:WorldBank.http://go.worldbank.org/OJZ1CBO740

53 EuropedefinesSMEsasenterpriseswithfewerthan250employeesandrevenuesoflessthan€50millionperyear,withno

morethan25%ownershipbyoutsideinterests[EuropeanCommission.2007.EnterpriseandIndustry:SMEDefinition.Accessed

April3,2007athttp://europa.eu.int/comm/enterprise/enterprise_policy/sme_definition/index_en.htm. Cited in Kozak, R 2007.

For developing countries, Mayers (2006) provides a working definition of an SMFE as “a business operation aimed at making a

profit from forest-linked activity, employing 10–100 full-time employees, or with an annual turnover of US$10,000–US$30 million,

or with an annual roundwood consumption of 3,000–20,000 m3. Mayers, J. 2006. Small- and Medium-Sized Forestry Enterprises.

International Tropical Timber Organization (ITTO) Tropical Forest Update 16/2(2006):10-11.” Macqueen (undated) defines SMEs

within the context of sustainable development as those enterprises “with less than 100 employees without any lower cut-off.”

Macqueen (2004) defines SMEs as enterprises “employing 10–99 full time employees or with a fixed capital investment of

US$1,000–500,000.” Macqueen, D. 2004. Associations of Small and Medium Forest Enterprise: An Initial Review of Issues for Local

Livelihoods and Sustainability. International Institute for Environment and Development (IIED), Briefing Paper. London, UK.

Spantigati and Springfors (2005) provide a more general definition: “[forest-based] enterprises whose economic activities are

undertaken mainly at the individual or household level, usually employing members of the family or close relatives and neigh-

bors, and where salaried labor is negligible.” Spantigati, P. and A. Springfors. 2005. Microfinance and Forest-Based Small-Scale

Enterprises. Food and Agricultural Organization (FAO) of the United Nations, Forestry Paper 146. Rome, Italy As cited in Kozak, R

36

2007.

54 Canbyetal.Ascitedinendnote18.

55 Ibid.

56 Sinclair,Tedder,DarcyMitchellandAnnHillyer.2002.PropertyRightsintheSustainableManagementofNon-timberForest

Products.Vancouver:BritishColumbiaMinistryofForests.

57 Mayers,JamesandDuncanMacqueen.2007.TheBigSignificanceofSmallForestryEnterprises.PaperpresentedattheWest

andCentralAfricaTropicalForestInvestmentForum:IssuesandOpportunitiesforInvestmentinNaturalTropicalForests,

28–30August2007,Accra,Ghana.http://api.ning.com/files/6OFZobIPdyIUFbEsCPCqswA3O4C9EVpF3xVAV7XjoMU_/FIF2007.pdf

58 BRIK(BadanRevitalisasiIndustriKehutanan—ForestindustryRevitalizationBody).2007.PersonalcommunicationbyMatthias

Rhein;Elson,Dominic.2007.PlantingTrees,GrowingBusinesses:TheRoleofMicro,SmallandMediumSizedEnterprisesinthe

RevitalizationoftheForestrySectorinIndonesia:APolicyBrief.Jakarta:InternationalFinanceCorporationandDewanKehuta-

nanNasional.

59 Hazely,C.2000.Forest-BasedandRelatedIndustriesoftheEuropeanUnion—IndustrialDistrictsClustersandAgglomerations.

Helsinki:ResearchInstituteoftheFinnishEconomy,citedinKozak2007(ascitedinendnote13).

60 Karsenty2007.Ascitedinendnote4.

61 Lebedys,Arvydas.2004.Forestfinance:Trendsandcurrentstatusofthecontributionoftheforestrysectortonational

economies.Rome:FAO,ForestProductsandEconomicsDivision.http://www.fao.org/documents/pub_dett.asp?lang+en&pub_

id+176973

62 U.N.SecurityCouncil.2003.Letterdated7August2003fromtheActingChairmanoftheSecurityCouncilCommitteeestab-

lishedpursuanttoresolution1343(2001)concerningLiberiaaddressedtothePresidentoftheSecurityCouncil.(S/2003/77963).

OfficialRecord.http://www.un.org/Docs/journal/asp/ws.asp?m=S/2003/779

62 Arnold,Michael,GunnarKohlin,ReidarPerssonandGillShepherd.2003.Fuelwoodrevisited:Whathaschangedinthelast

decade?CIFROROccasionalPaperNo39.Bogor:CIFOR.http://cifor.cgiar.org/publications/pdf_files/infobrief/006-Infobrief.pdf

64 MayersandMacqueen.2007.Ascitedinendnote57.

65 Kozak2007.Ascitedinendnote13;Macqueen,Duncan.2008.SupportingSmallForestEnterprises—ACross-sectoralReview

ofBestPractice.IIEDSmallandMediumForestryEnterpriseSeriesNo.23.London:InternationalInstituteofEnvironmentand

Development.

66 Barrow,Edmund,J.Kamugisha-Ruhombe,IsildaNhantumbo,ReneOyono,andMouminiSavadogo.AreSecureRightstoForests

EnoughforRuralPeopletoReallyBenefit?SomeLessonsfromAfrica.RRIBrief.Washington,D.C.:RightsandResourcesInitia-

tive.

67 Kante,Bocar,2009.BurkinaFaso:Améliorationdel’équitéetdesmoyensdesubsistancedanslaforesteriecommunautaireau

BurkinaFaso.CIFORandRRI.Washington,D.C.,http://www.rightsandresources.org.

68 Ravallion2008.Ascitedinendnote43.

69 Macauley,HaroldRoy.2009.Integratingnaturalresourcesinpovertyalleviationstrategies(PRSPs).Paperpresentedatthe

SahelworkshopMovingBeyondForestLawsThroughCollectiveLearningandAction,Bamako,Mali,May2009;Bojo,Janand

ChandraReddy.2003.PovertyReductionStrategiesandtheMillenniumDevelopmentGoalonEnvironmentalSustainability.

WorldBankWorkingPaper92.Washington,D.C.:WorldBank.

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