Forests Sourcebook - HCV Resource Network

such as designing a transparent concession system; establishing
an accounting system; defining the role of each
stakeholder in the sector; and setting up a strategic planning
process to provide guidance for a future forest
resource management system that is transparent, participatory,
and analytical.
Separating administrative and management functions.
Efforts should be made to eliminate potential conflicts
of interest and to ensure independence, transparency,
and neutrality of the public forest administration. This can
be done by removing direct administrative and financial
links between entities responsible for public functions and
state forest management (see box 5.9).
Accountability of forest institutions. A mechanism
for ensuring accountability of forest institutions should be
created, perhaps through the creation of a management
board that supervises the activities of the entity managing
state forests. The board should include representatives from
different relevant government agencies or ministries, as well
as professionals with qualifications in forestry, environmental
conservation, and corporate management.
Accountability also requires transparent budget procedures
and accounting systems that match corporate standards
(see box 5.10). These procedures, however, should be
achievable and realistic.
Change management. A good strategy and structure are not
sufficient to guarantee successful reform; it also requires people
to align with the new direction, to bring life into the new
structures, and to commit to strive for new goals. A strategic
change-management approach can be a valuable investment
for the future of an organization. Change management is a
systematic approach to dealing with change from the very
beginning of a change program and during all planning and
implementation stages. Change management links the perspective
of the organization with the perspective of the individual
employee. Change management can increase the speed
of implementation of a change project and decrease the costs.
Effective change management requires that
Box 5.9
Reducing Conflict of Interest in Forest Management: An Example from Countries in Transition
In several countries in transition in Europe and Central
Asia, earlier institutional arrangements in the
forests sector suffered from conflicts of interest
because the same body was both supervising and controlling
its own operations. To remove this conflict,
the proposed institutional structure separated these
two functions. With this arrangement, forest administration,
as part of its enforcement function, supervises
Separation of Supervision and Control
Ministry of Agriculture, Environment,
or Natural Resources
and controls how forests are managed, whether owned
by the state (and managed by the state forest enterprise)
or by private forest owners (see box figure). A
separate control activity for financial flows should also
be maintained or set up, either through an independent
government body or accredited private auditors,
which typically are used in many Western European
countries.
Board
Forest
Administration
Control of
forest
management
State Forest
Enterprise
Financial
control
Auditor
Source: World Bank 2005.
NOTE 5.2: REFORMING FOREST INSTITUTIONS 169