Building profitable and sustainable community forest enterprises: Enabling conditions
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Transcript of Building profitable and sustainable community forest enterprises: Enabling conditions
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Duncan MacqueenInternational Institute for Environment and Development (IIED)
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Context of this paper
• Forest connect alliance
• Work in: Brazil, Burkina Faso, China, Ethiopia, Gambia, Ghana, Guatemala, Guyana, India, Lao PDR, Malawi, Mozambique, Nepal, South Africa, Uganda.
• Input to DRC (RDC) model for community forestry
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Structure of this presentation
• Introduction
• Foundation: secure commercial rights
• Scaffolding: organisation
• Concrete: business skills
• Examples – 12 countries
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Introduction• Political trends - 22% South 40% north
• Economic reality– 90% of enterprises and 50% employment . No rights = informality (Kozak, 2007)
• Impacts? – Rights = enterprises, forests and communities flourish (Molnar et al. 2007)
• But…the picture is mixed - Forest Connect partners suggested that to commercial rights you need to add social organisation and business skills.
• Why? – Isolation from each other, markets, service providers and policy makers.
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Foundation: secure commercial rights• For whom? Rightsholders –
Families (IFFA), Communities (GACF), Indigenous peoples (IAITPTF).
• For what? CFE “Entity undertaking commercial exchanges based on forest or trees, overseen in a self-defining community, by a credible representative body suited to act as certificate holder and which can claim legitimacy in terms of people and area, that generates and redistributes profits within that community.”
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Secure commercial rights cont.
Secure:• Duration – sufficient incentive to invest
• Assurance - without confusion over multiple use rights, land / forests, subsistence / commercial
• Robustness – defensible in law
• Exclusivity - no overlapping concessions, mining rights etc
• Simplicity -
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Scaffolding: social organisation
Production Aggregation
MarketingIntelligence
The Market
Key functions
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Social organisation cont.
• Abundant commercial forest resources ~ poverty (Sunderlin et al. 2007) Why organisation matters…
• Defining and staffing business roles
• Business registration
• Management and record keeping
• Scale efficiencies / bargaining power
• Marketing and advocacy
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Concrete: business skills • Range – (i) Large numbers of very
small, low-input low-output enterprises that proliferate to meet household needs; to (ii) smaller numbers of more productive enterprises
• Market research• Business roles• Competition and upgrading• Record keeping (e.g. investment
proposals)• Appropriate business models
• Autonomy and facilitation
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Examples – promising (ex Mex. / Nepal)
• SWEDEN
• Secure commercial rights – Forest Act 1903
• Social organisation – 4 associations = 110,000 members = 6.3 million hectares (~50 ha)
• Business skills – sawmills, pulp and paper, bio-energy
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Examples - promising
• CHINA
• Secure commercial rights – “Three fixes”, “Resolution on accelerating forest development, 2003”
• Social organisation – 37 million ha to 57 million households. China National Forest Industry Association + provincials
• Business skills – 2003 Small and medium enterprise promotion law.
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Examples - promising
• GUATEMALA (Peten)
• Secure commercial rights – 1989 CONAP - 17 step process for concessions (FSC required)
• Social organisation – ACOFOP, 1996, 22 community members, 15 FSC certified concessions, 560,000ha
• Business skills – FORESCOM , 2004, business training, marketing etc.
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Examples – works in progress
• BRAZIL
• Secure commercial rights – 2001 National Forest Programme various provision for ‘community forests’ e.g. RESEX, Settlement reserva legal…bureaucratic
• Social organisation – Some – e.g. Cooperfloresta in Acre with 5 communities
• Business skills – Evolving fast but limited formal support, marginally profitable at small scales
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Examples – works in progress
• INDONESIA
• Secure commercial rights – 1998 Reformasi and 1999 Law on regional government. New Forest Law…national / district tensions (e.g. Wonosobo, Java)
• Social organisation – Some – e.g. Communication Forum on Community Forestry (FKKM)
• Business skills – Limited, and often project specific e.g. Teak
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Examples – works in progress
• MOZAMBIQUE
• Secure commercial rights – 1997 Land Law exemplary - 1999 Forest Law less so
• Social organisation – Many projects on CBNRM but few formal associations – only 3 community Simple Licences
• Business skills – At rural level, very basic.
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Conclusions
• Advocacy for rights (e.g. Rights-holders initiative, Rights and Resources Initiative, Self-mobilisation, FIPPU – rise up etc.)
• Facilitation of social organisation - second level business organisations (IFFA but in developing countries?)
• Invest in facilitating business skills development (e.g. Forest Connect mainstreamed)
• Keep an eye on where the money (= threat /opportunity) is going e.g. forestry is now primarily an ENERGY business
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Thanks!
http://forestconnect.ning.com