Forests Sourcebook - HCV Resource Network

Box 3.3
Global Forest and Trade Network
Box 3.4
The Forestry Sector Development Project
for Vietnam
The Global Forest and Trade Network (GFTN), an
initiative of the World Wildlife Fund (WWF), has
supported the development of community-based
forest management in Latin America (see also note
1.2, Community-Based Forest Management). Initiatives
have included capacity building for chainof-custody
tracking in the lowland tropical hardwood
forests of Peru, and the Nicaraguan Forest
Finance Fund, a novel financial mechanism aimed
at creating incentives for producers and processors
dedicated to responsible forest management and
trade. In Bolivia, the GFTN has been involved in
developing a strategy for increasing the demand
for responsibly produced wood products, primarily
from indigenous communities, via responsible
purchase policies and related market links to manufacturers
and other members of the GFTN (for
example, retailers in consumer countries).
Source: Authors’ compilation using Sander 2007.
Encourage expansion of wood supply by private and
community forest owners. Global fiber supply is shifting
toward the southern hemisphere and China. Possibilities
need to be explored for World Bank forestry projects and
investment policies to support International Finance Corporation
(IFC) private sector forest plantation investment
in Argentina, Brazil, Chile, China, Ecuador, India, Indonesia,
Mozambique, South Africa, Tanzania, Thailand,
Uruguay, and Vietnam (see also chapter 2, Engaging the Private
Sector in Forest Sector Development). Developing
innovative approaches that facilitate certification of smallholder
forest management, and improving access to highprice
markets for certified small-scale producers, are
regarded as important components.
This project, financed by the International Development
Association with cofinancing from the
Global Environment Facility, the Netherlands, Finland,
and the European Commission, was
approved in 2004, and emphasizes the participation
of smallholders in the establishment of plantations,
aiming to ensure the sustainable management
of plantation forests and the conservation of
biodiversity in special-use forests. To this end, the
project’s scope includes the following aspects: (i)
improvement of the environment for sustainable
forestry development and biodiversity conservation;
(ii) provision of attractive incentive packages
to mainly poor farming households to plant trees
on a sustainable basis to generate additional
income and employment; (iii) making small, competitive
grants available for effectively managing
priority special-use forests of international importance;
(iv) establishment of a credit line for participating
farmers; (v) enhancement of capacity and
capability at regional, provincial, and district levels;
and (vi) establishment of support services to
monitor and evaluate impact and outcomes.
Implementation of the project started in 2005.
Source: World Bank 2004b.
Facilitating sustainable management of natural
forests. Improving and extending responsible forest management
according to the principles and criteria demanded
by the World Bank’s Operational Policy on Forests (OP
4.36) is the principal entry point and vehicle by which the
World Bank can improve forestry outcomes.To meet future
wood demand, the productivity of natural forests that serve
production purposes must be improved. Securing appropriate
structure, balance, and composition of the flows of
resources into and out of the forestry sector is the most difficult
challenge to forestry in most World Bank client countries.
Achieving sustainable management of natural forests
requires significant reinvestment of revenues received from
the extraction of wood. Meaningful stakeholder consultations
also need to be maintained to ensure that socially
endorsed goals and objectives are achieved (see also chapter
10, Consultation and Communications in Forest Activities,
and chapter 12, Applying OP 4.10 on Indigenous Peoples).
Enhance technical capacity for natural forest management
and plantation development. The technical
capacity in many World Bank client countries is not sufficient
to meet internationally acceptable standards for SFM.
This is often evident even in the lack of timely collection
and management of relevant and accurate data needed for
forest management, such as forest area, forest types,
resource stock inventories, growth and yield tables, biodiversity
mapping, and so forth. Research on lesser-known
species to increase management efficiency and productivity
CHAPTER 3: MEETING THE GROWING DEMAND FOR FOREST PRODUCTS 101