Duncan Macqueen International Institute for Environment and Development (IIED)
<ul><li>Forest connect alliance </li></ul><ul><li>Work in:  Brazil, Burkina Faso, China, Ethiopia, Gambia, Ghana, Guatemal...
<ul><li>Introduction </li></ul><ul><li>Foundation: secure commercial rights </li></ul><ul><li>Scaffolding:  organisation <...
Introduction <ul><li>Political trends -  22% South 40% north  </li></ul><ul><li>Economic reality – 90% of enterprises and ...
<ul><li>For whom? Rightsholders –  Families (IFFA), Communities (GACF), Indigenous peoples (IAITPTF). </li></ul><ul><li>Fo...
<ul><li>Secure: </li></ul><ul><li>Duration – sufficient incentive to invest </li></ul><ul><li>Assurance -  without confusi...
Scaffolding: social organisation Production Aggregation Marketing Intelligence The Market Key functions
Social organisation cont.   <ul><li>Abundant commercial forest resources ~ poverty (Sunderlin et al. 2007) Why organisatio...
Concrete: business skills   <ul><li>Range  – (i) Large numbers of very small, low-input low-output enterprises that prolif...
Examples – promising (ex Mex. / Nepal) <ul><li>SWEDEN  </li></ul><ul><li>Secure commercial rights  – Forest Act 1903 </li>...
Examples - promising <ul><li>CHINA </li></ul><ul><li>Secure commercial rights  – “Three fixes”, “Resolution on acceleratin...
Examples - promising <ul><li>GUATEMALA (Peten) </li></ul><ul><li>Secure commercial rights  – 1989 CONAP  - 17 step process...
Examples – works in progress <ul><li>BRAZIL </li></ul><ul><li>Secure commercial rights  – 2001 National Forest Programme v...
Examples – works in progress <ul><li>INDONESIA </li></ul><ul><li>Secure commercial rights  – 1998 Reformasi and 1999 Law o...
Examples – works in progress <ul><li>MOZAMBIQUE </li></ul><ul><li>Secure commercial rights  – 1997 Land Law  exemplary - 1...
Conclusions <ul><li>Advocacy for rights (e.g. Rights-holders initiative, Rights and Resources Initiative, Self-mobilisatio...
Thanks! <ul><li>http://forestconnect.ning.com </li></ul>
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Building profitable and sustainable community forest enterprises: Enabling conditions

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Duncan Macqueen

Presentation for the conference on
Taking stock of smallholders and community forestry
Montpellier France
March 24-26, 2010

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Building profitable and sustainable community forest enterprises: Enabling conditions

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

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