A neo-institutional economic analysis of policies and
policy instrument governing non timber forest
products and agro fore...
Outline
1. Introduction: problem &
research question
2. Theoretical lens and study
objectives
3. Method : choice of study
...
1.Introduction
Household
income
Sustainable
development
Forest Agroforestry
Food
security
Domestication
Subsistence
needs
...
1.Introduction
1. Longer time lags for trees to
reach maturity
2. Appropriate technologies are
poorly known
3.. Adverse or...
Main research question
1.Introduction
What formal policies/strategies and regulations currently
exist to address NTFP in C...
Theoretical lens
Neo-institutional economics: multi disciplinary
economics, history, sociology, law, business org and poli...
Theoretical lens operationalised
2.Theoreticallens&studyobjectives
7
1994 Forestry Law
and 1995 Decree
of application
Poli...
Research objectives
Four main themes:
(i) Appraise existing policies governing AFTP/NTFP
sectors
(ii) Assess the effect of...
Choice of products
3.Methodology
9
Gnetum spp: 3518 tons (10.5 m $) sold to
Nigeria annually by sea
Ricinodendron heudelot...
Study sites
3.Methodology
10
Choice of respondents
3.Methodology
11
Producers
N= 394
• Qualitative content analysis
12
4.Results
Results objective 1:
analysis of existing policies
2
3
3
6
6
7
0 5 10
NTFP
Agr...
Analysis of policy instruments - legislation
4.Results
13
• Clear definition of AFTP/NTFP
• Ownership and access to resour...
Results objective 2:
effect of existing policies on agroforestry
• Farmers perceptions
4.Results
14
0%
10%
20%
30%
40%
50%...
Partial conclusions
• Low level of awareness and enforcement of law at
producers levels – what is its relevance?
• Despite...
Results objective 3:
land and tree tenure security
4.Results
16
• Village resident : this is my land sir what are you doin...
Farmers perception of land and tenure security as
factors of agroforestry development
4.Results
17
Formal rules
• Ownershi...
4.Results
18
16%
84%
Farmers’ attitudes towards
land titles
No ( Negative )
Yes ( Positive)
29% 27%
6%
17% 21%
%
5%
10%
15...
Tenure security & tree planting
4.Results
19
45
4
55
96
0
20
40
60
80
100
120
Tenure security based
on fear of eviction
No...
Partial conclusions
• Farmers have positive attitude towards land titles however,
• Where customs are intact = customary t...
General conclusions and policy implications
• Specific strategy/ program are needed to
develop, guide and implement agrofo...
Further research: getting the institutions right
How do we design optimal and efficient formal
institutions and institutio...
Thank you for listening
23
Results objective 4:
market access
• Traders’ possession of permits & informal taxes
– 70 traders operate illegally
4.Resu...
Estimated costs borne by farmer groups
4.Results
25
Process assessed Case study group
Number of steps to compile files 10
...
4.Results
26
1.7%
annual turn
over
9%
37%
54%
0% 20% 40% 60%
Government
Economic
operators
Police and
Forestry
Partial con...
Options to motivate compliance based on
choice experiment
Attributes Option 1 Option 2 Option 3 Option 4 None
Decentralise...
Results from choice experiment
4.Results
28
Attribute Change Implicit willingness
to pay
Complicated to simplified 22.00
S...
General conclusions and policy implications
• Specific strategy/ program are needed to develop, guide and
implement agrofo...
Further research: getting the institutions right
• Producers level:
– How do we design optimal and efficient formal
instit...
Thank you for listening
31
32
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A neo-institutional economic analysis of policies and policy instrument governing non-timber forest products and agro forestry development in Cameroon

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A neo-institutional economic analysis of policies and policy instrument governing non-timber forest products and agro forestry development in Cameroon

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A neo-institutional economic analysis of policies and policy instrument governing non-timber forest products and agro forestry development in Cameroon

  1. 1. A neo-institutional economic analysis of policies and policy instrument governing non timber forest products and agro forestry development in Cameroon Divine Foundjem Tita June 18, 2013 ICRAF Yaounde, Cameroon 1
  2. 2. Outline 1. Introduction: problem & research question 2. Theoretical lens and study objectives 3. Method : choice of study sites & products 4. Results 5. Conclusions & policy implications 2
  3. 3. 1.Introduction Household income Sustainable development Forest Agroforestry Food security Domestication Subsistence needs NTFP AFTP 3
  4. 4. 1.Introduction 1. Longer time lags for trees to reach maturity 2. Appropriate technologies are poorly known 3.. Adverse or no national policies 4. Legal constraints from sister government sectors Globally, and for Cameroon potential of NTFP and AFTP to livelihoods and sustainable development are yet to be exploited 3.. Adverse or no national policies 4. Legal constraints from sister government sectors Globally, and for Cameroon potential of NTFP and AFTP to livelihoods and sustainable development are yet to be exploited What is the problem? 4 2. Appropriate technologies are poorly known 1. Longer time lags for trees to reach maturity Call on national governments to device appropriate policies and institutions
  5. 5. Main research question 1.Introduction What formal policies/strategies and regulations currently exist to address NTFP in Cameroon and how do they influence agroforestry development ? 5
  6. 6. Theoretical lens Neo-institutional economics: multi disciplinary economics, history, sociology, law, business org and political science 2.Theoreticallens&studyobjectives Economic performance Formal: policies, strategies, regulati ons, legislation Institutions = rules of the game Informal: norms, culture, values, et hics 6
  7. 7. Theoretical lens operationalised 2.Theoreticallens&studyobjectives 7 1994 Forestry Law and 1995 Decree of application PolicyInstruments Customary laws, norms ,values , culture Access to Trees, Land , NTFP, AFTP Producers perception • secured property rights • incentives to invest in AFTP •increased revenue Traders access to permits •reduced TCs •reduced corruption,/rent seeking •profits/net margins •self compliance with permits 1974 Land Ordinance /land titles Government policy on poverty reduction and sustainable exploitation of natural resources including NTFP National and International Research NationalandInternationalNGOs Interaction of formal & informal institutions Chapter 6 Outcomes
  8. 8. Research objectives Four main themes: (i) Appraise existing policies governing AFTP/NTFP sectors (ii) Assess the effect of existing policy on agroforestry development- farmer perspectives (iii) Analyse interaction between formal and informal rules regulating land and trees 2.Theoreticallens&studyobjectives 8
  9. 9. Choice of products 3.Methodology 9 Gnetum spp: 3518 tons (10.5 m $) sold to Nigeria annually by sea Ricinodendron heudelotii: annual trade within Cameroon ~ 750,000 $ Irvingia spp: 8.5 m $ annually from one comm forest Cola spp: annual export estimated at 165,000 $
  10. 10. Study sites 3.Methodology 10
  11. 11. Choice of respondents 3.Methodology 11 Producers N= 394
  12. 12. • Qualitative content analysis 12 4.Results Results objective 1: analysis of existing policies 2 3 3 6 6 7 0 5 10 NTFP Agriculture PRSP GESP RDSP PSFE Forest Number Policydocuments 6 5 4 4 4 3 1 0 1 2 3 4 5 6 7 Partial conclusion: Government of Cameroon is committed to include NTFP and AFTP in its economic and sustainable development policy • Number of policy documents addressing the issue
  13. 13. Analysis of policy instruments - legislation 4.Results 13 • Clear definition of AFTP/NTFP • Ownership and access to resources • Economic and usufruct rights Analysis focused on • No distinction between NTFP and AFTP • Permits are required to sell NTFP & indirectly AFTP What did we find • Disincentive to agroforestry development • Conclusions are based on theory • Farmers’ opinion required Partial conclusion
  14. 14. Results objective 2: effect of existing policies on agroforestry • Farmers perceptions 4.Results 14 0% 10% 20% 30% 40% 50% 60% 70% 80% Permits (AFTP = NTFP) WTA Certficates of origin for AFTP Intentions to plant trees if AFTP=NTFP 76% 39% 41% Yes No AFTP= NTFP (Yes ) Accept certificate of origin (Yes ) Will not plant trees if AFTP = NTFP Group (yes ) ns ns +ve (**) Education -ve(**) ns +ve(**) No of trees planted ns ns +ve (**) Experience ns ns -ve (**) Region of origin (savannah) -ve(**) -ve(**) ns
  15. 15. Partial conclusions • Low level of awareness and enforcement of law at producers levels – what is its relevance? • Despite negative attitudes towards policy instruments, a majority will continue to plant trees • Number that may not plant trees is too large to be neglected 4.Results 15
  16. 16. Results objective 3: land and tree tenure security 4.Results 16 • Village resident : this is my land sir what are you doing here? • City man: I am developing the land. Who are you and who says it is your land? • Village resident: I am the owner of this land, i have been farming the land • for the past 30 years • City man: how did you get the land? • Village resident: My father gave it to me • City man: And how did your father get the land? • Village resident: I don’t know, what I know is that he planted that tree and he owns this land unfortunately Mr. Tom who could testify died last year • City man: Sorry my friend, this land was given to me by father who got it from his father who fought the Meta people and seized the land from them during the German colonial period • City man continues: I am now on retirement and have come to the village to develop my land. And then the conflict begins, who owns the land based on formal law and by custom? (adopted from Bromely 1989. P 220)
  17. 17. Farmers perception of land and tenure security as factors of agroforestry development 4.Results 17 Formal rules • Ownership of land is sanctioned by a title deed • Land with no deed = National land • Trees on land with no title deed belongs to the state Informal rules • First occupant owns the land • Tree planting symbolises ownership Which of the two • Guarantee security over land and trees ? • Favours agroforestry? • Role of cultural differences?
  18. 18. 4.Results 18 16% 84% Farmers’ attitudes towards land titles No ( Negative ) Yes ( Positive) 29% 27% 6% 17% 21% % 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% North West West Centre South East Preferences for formal or customary systems Formal system Customary system 41% 59% Belief of ownership (Individual) Positive attitude towards land titles Preference for customary systems Land conflict (yes ) +ve(*) +ve(***) -ve(*) Form of leadership (forest) +ve(**) ns -ve(**) Population density +ve(**) ns ns 0% 20% 40% 60% 80% 100% 120% NorthWest West Centre South East Total Region of orgin of village Government Community/chiefs Individuals Farmer’s perception of ownership
  19. 19. Tenure security & tree planting 4.Results 19 45 4 55 96 0 20 40 60 80 100 120 Tenure security based on fear of eviction No yes Disincentive to agroforestry ? Fear of eviction: yes = 3% Land availability: yes = 23%
  20. 20. Partial conclusions • Farmers have positive attitude towards land titles however, • Where customs are intact = customary tenure is more preferred • Where there have been cases of land conflict = title deed is preferred • Fear of eviction not a threat to tree planting, land availability may be the problem • Current customary systems guarantees security and favours tree planting • Study supports evolutionary land rights theory • The state needs to protect existing customary ownership and rights with simplified procedures to obtain land titles 4.Results 20
  21. 21. General conclusions and policy implications • Specific strategy/ program are needed to develop, guide and implement agroforestry strategies • Subsequent policies, regulations/legislation should make the distinction between AFTP and NTFP e.g certificates of origin • Customary rights to land needs to be protected e.g by simplifying access to land titles 5.Conclusions&policyimplications 21
  22. 22. Further research: getting the institutions right How do we design optimal and efficient formal institutions and institutional arrangements to: - manage land and trees, - that will also protect, consolidate - and correct existing customary systems? 5.Conclusions&policyimplications 22
  23. 23. Thank you for listening 23
  24. 24. Results objective 4: market access • Traders’ possession of permits & informal taxes – 70 traders operate illegally 4.Results 24 Prefer to rent permit (illegal) and pay informal taxes If Perceived TCs Bribe = No permit+Rents>
  25. 25. Estimated costs borne by farmer groups 4.Results 25 Process assessed Case study group Number of steps to compile files 10 Time to process file (days ) About 98 Amount of money to process file About 1.3 million FCFA (1$= 500FCFA) Duration to monitor files in the capital city 4 years Cost to monitor files 12, 130,000 FCFA
  26. 26. 4.Results 26 1.7% annual turn over 9% 37% 54% 0% 20% 40% 60% Government Economic operators Police and Forestry Partial conclusions • Permit system :  characterised by high TCs  encourage rent seeking  and unofficial taxes (bribes) • Decision not to comply is a rational choice by traders to overcome TCs
  27. 27. Options to motivate compliance based on choice experiment Attributes Option 1 Option 2 Option 3 Option 4 None Decentralised /centralised simplified/ complicated Joint or individual Transferability of permit Duration of permit 1 year 3 years 1 year 3 years Regeneration tax 20 FCFA 5 FCFA 10 FCFA 20 FCFA Choose one □ □ □ □ □X 4.Results 27
  28. 28. Results from choice experiment 4.Results 28 Attribute Change Implicit willingness to pay Complicated to simplified 22.00 Single to joint 9.80 No transfer to traders based transfer 8.80 No transfer to government based transfer 6.80 Increase in duration of permit by one year 5.60
  29. 29. General conclusions and policy implications • Specific strategy/ program are needed to develop, guide and implement agroforestry strategies • Subsequent policies, regulations/legislation should make the distinction between AFTP and NTFP e.g certificates of origin • Customary rights to land needs to be protected e.g by simplifying access to land titles • Reduce TCs e.g simplify access to NTFP permits • Reduce rent seeking and unofficial taxes in the governance of permits 5.Conclusions&policyimplications 29
  30. 30. Further research: getting the institutions right • Producers level: – How do we design optimal and efficient formal institutions and institutional arrangements to manage land and trees, that will also consolidate and correct existing customary systems? • Traders level: – What are the most appropriate reforms to improve the regulatory mechanisms governing permits and to reduce corruption and rent seeking 5.Conclusions&policyimplications 30
  31. 31. Thank you for listening 31
  32. 32. 32

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