Forests Sourcebook - HCV Resource Network

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the transformation process has leadership, top-level
management commitment, and broadly based stakeholder
participation;
implementation is carried out through an independent
and influential change team or steering committee;
structure follows strategy: careful planning should set the
foundation, but determination and speed are necessary
for success during implementation;
“quick win” achievable subtargets are set to help create
and maintain momentum;
people are actively engaged to build ownership from the
very beginning of the change journey;
second- and third-level management, key to success, adequately
buy in; and
communication and information, essential for both internal
and external audiences, are professionally prepared.
Capacity considerations. Reforms of forest institutions
must be linked to building necessary capacity. The management
objectives for service delivery organizations are to
provide forest goods and services for forest industries and
for households while maintaining the forest’s ability to provide
public goods (such as watershed protection and biodiversity
conservation). Implicit in the idea of forest organizations
as service delivery institutions is that their services
are provided to meet the demands of both private and community
forest users. Some forest institutions may have the
necessary capacity and simply require redeployment of
these capacities. In most cases, however, the requisite capacity
is not available, underscoring the importance of appropriate
training.
Assessing success. Measures should be in place to assess
the success of institutional reforms. Measurement of success
could be based on overall sectoral performance, including
improved forest management, greater investment and job
creation in the industry, stronger financial performance of
both private and public institutions, better environmental
protection, improved protected area management, and
greater benefit for civil society. However, even in the bestrun
forest management organizations, these parameters are
seldom assessed in any systematic way. Thus, innovative
approaches to assessing performance must be introduced
that enable policy makers to determine whether public
expenditures are achieving desired outcomes (see box 5.11).
LESSONS LEARNED AND RECOMMENDATIONS
Box 5.10
Measures for Transparent Budget Procedures
Measures proposed for countries in transition in
Europe and Central Asia to increase transparent
budget procedures and enhance accounting systems
include the following:
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To assign the responsibility for controlling forest
harvesting and management to state forest administration.
To determine appropriate funding for state forest
management, physical targets for forest management
and environmental conservation should be
defined, and necessary investment requirements and
operational costs assessed. Funding requirements
may include ensuring cost efficiency of forest operations
by using subcontractors from the private sector
when possible; carrying out independent
research on efficiency factors; establishing the transfer
to the state budget based on a residual amount
determined by deducting estimated costs from total
Source: PROFOR 2003.
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revenue (allowing efficiency gains to remain in the
organization as an incentive for improved performance).
Financial auditing through accredited third-party
auditors should be arranged.
An independent budget for the entity managing
state forests should be established (to assist in
increasing productivity and efficiency in state forest
management). The budget should be associated
with well-defined obligations toward the state
budget, and development of salary schemes should
be based on staff performance to reduce incentives
for corruption.
Marketing of timber and nonwood forest products
based on competitive bidding should be arranged to
establish fair, market-based prices; ensure open and
equal access to timber and nonwood resources for
potential beneficiaries at equitable conditions; and
limit monopolistic features in resource supply.
170 CHAPTER 5: IMPROVING FOREST GOVERNANCE