CIFOR Scientist Louis Putzel gives an introduction of the initial findings and implications of CIFOR's research on "Chinese investments in sectors affecting forests and livelihoods in Africa" with case studies from the Congo Basin (Cameroon, Democratic Republic of Cong, Gabon) and the Miombo Woodlands (Mozambique, Zambia, Zimbabwe.

1. THINKING beyond the canopy
Forest-related implications of Chinese
trade and investment in Africa across
sectors: Introduction to case studies
Photo: G. Schoneveld

2. THINKING beyond the canopy
 Research on three main trends:
• Growing demand for primary goods (e.g., crop
commodities, timber, minerals) from major emerging
economies driven by industrialization, food
consumption and increased income levels
• Increasing investment in large-scale land and forest
acquisition linked to a growing role played by
transnational corporations in production
• Informal or Illegal timber harvesting and trade
CIFOR’s work on Global Trade and
Investment

3. THINKING beyond the canopy
Project on China’s Trade and
Investment in Africa
 Understand the social, economic and environmental
effects of Chinese investment in sectors affecting forests
and livelihoods in Africa (e.g. forestry, mining, agriculture)
 Promote better management of forests and improved
livelihoods of communities through understanding the
governance of investments, lands, forest management,
and trade
 Enable governments and development agencies to
increase the economic benefits from developing Africa’s
forests and raw materials

4. THINKING beyond the canopy
Preliminary publications
DATA AND INFORMATION SHARING JOURNAL ARTICLES

5. THINKING beyond the canopy
0
10
20
30
40
50
60
0
5
10
15
20
25
30
OFDI Flows Policy Number
Stage Analysis of China OFDI Policy
Market opening Controling of ODFI
SFA Overseas
SFM Guideline
Going out policy
Billion USD
Phase 1: 1979-1990: Tentative development
China formally recognized the legal status of overseas investments and several
tentative but favorable policies were published to facilitate OFDI activities.
Phase 2: 1991-2001: Sporadic development
Restrictive policies were published to control the large-scale investments.
Phase 3: 2002 – present: Fast and stable development
“Going out” strategy was implemented and the whole policy system was
reformed to promote the OFDI. Regulatory activities were also strengthened.

6. Early investments and growing political relations

7. Today... roads, railways, dams, retail,
immigration, resource extraction, imports…
Photo: G. Schoneveld

8. Two different regions in
Africa:
1.Congo Basin
(Cameroon, DRC, Gabon)
2. Miombo Woodlands
(Mozambique, Zambia,
Zimbabwe)
Research Areas

9. THINKING beyond the canopy
Framework for selection of cases
A. Timber Industry B. Small-scale/informal/artisanal
sector
• Cross-country
comparisons of
large scale timber
• Comparisons
of large-scale
to small
scale timber
industry
• Cross-sector
comparisons of
small-
scale/informal
business models
• Timber
• Agriculture
• Mining
(Going “Legit”?) (Going Local?)
Social and environmental effects of Chinese vs. non-Chinese activity in:

10. Marie-Luce BiaZafinikamia & Christian Mvogo
Household research methodology: Measuring
Differences
Large-scale vs. large scale
DID = ( A-D) – (B-C)

11.  Larger and State-owned companies are more likely to follow
a set of established industry norms including
• Forest management plans
• Environmental impact assessments and mitigation
requirements
 Small-scale companies likely to follow local informal
practices
 There is still a high degree of interaction between large-
scale/formal and small-scale/informal
 There is a significant migration event (individual & small
scale) in process, which is not governed by multinational
corporate policies, international norms, or Chinese laws and
policies
Initial project findings

12. Implications
 Green guidelines established by multinationals and
investment banks have potential to mitigate effects of large-
scale investment
• Workers conditions
• Environmental impacts
• Local land and resource rights??
 Small-scale and informal activities are an issue of national
and local level regulation unless market-based instruments
are effective
• Certifications, moratoria on illegal goods, etc.
 Lack of pro-poor land tenure and access rights in much of
sub-Saharan Africa underlies ongoing environmental
damage and sub-optimal livelihood outcomes

13. Towards Greener Investment in
Africa
 Understanding of current nature of corporate interests in
Africa
 Understanding of existing legal norms and their efficacy in
improving environmental outcomes
 Understanding of how colonial history has affected
development trajectories and avoid repeating mistakes of
the past
 Understanding of degree of vulnerability of human
populations: land rights, resource ownership, economic
change