Building profitable and sustainable community forest enterprises: Enabling conditions

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Duncan Macqueen …

Duncan Macqueen

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

More in: Education
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Transcript

  • 1. Duncan Macqueen International Institute for Environment and Development (IIED)
  • 2.
    • 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
    Context of this paper
  • 3.
    • Introduction
    • Foundation: secure commercial rights
    • Scaffolding: organisation
    • Concrete: business skills
    • Examples – 12 countries
    Structure of this presentation
  • 4. 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.
  • 5.
    • 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.”
    Foundation: secure commercial rights
  • 6.
    • 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 -
    Secure commercial rights cont.
  • 7. Scaffolding: social organisation Production Aggregation Marketing Intelligence The Market Key functions
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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.
  • 12. 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.
  • 13. 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
  • 14. 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
  • 15. 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.
  • 16. 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
  • 17. Thanks!
    • http://forestconnect.ning.com