Forests Sourcebook - HCV Resource Network

Historically, low-income producers have been at a disadvantage
in accessing markets, leading to a need to address
this issue by jointly building on local human and natural
capital assets, and building the institutional framework for
good governance and distributive aspects of growth over
time (see figure 1.2; Dürr 2002; Scherr, White, and
Kaimowitz 2003, 2004; Sunderlin, Dewi, and Puntodewo
2006).
OPERATIONAL ASPECTS
There are many opportunities for forest management models
to scale up the benefits they deliver for forest conservation
and the rural poor or low-income producers. However,
large gaps exist in information and experience and there are
major challenges in finding the right market niches, supporting
local forest businesses, and reforming policies to
enable profitable market participation by local people.
Addressing these challenges will require coordinated action
by governments, international institutions, conservation
and development organizations, and community producer
organizations. Such action is necessary to level the playing
field for low- income producers and give them a real chance
to succeed.
Two areas that would benefit from interventions in collaboration
with client governments are removal of policy
barriers and development of forest businesses.
Potential measures for removing policy barriers include
the following (based on Scherr, White, and Kaimowitz 2003,
2004; Sunderlin, Dewi, and Puntodewo 2006):
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■
■
■
■
■
Secure forest access and tenure rights of local people (see
note 1.4, Property and Access Rights).
Remove state monopolies and other controls on harvest
and marketing that are common in several Bank client
countries. However, decisions on the extent and phasing
of deregulation need to carefully consider potential
impacts on Indigenous Peoples and other forestdependent
communities and provide for capacitybuilding
initiatives to avoid adverse effects and enhance
their benefits from deregulation.
Remove or revise regulatory barriers and excessive regulation
that limits local forest producers from using their
own or public forests. For example, in some regions of
India, 10 separate permits are required for community
forest producers to complete a timber sale. In other
countries, indigenous communities have long-term
rights to extensive tracts of natural forest, but they do not
have the right to commercially exploit them.
Revoke policies that discriminate against small producers
(see box 1.22). For example, in Bolivia forest policy
reforms have included formal recognition of indigenous
groups’ forest rights, lowered concession fees for smallscale
forest producers, and simplified the process for
accessing municipal forests.
Facilitate the creation of forest user associations or producer
groups to create economies of scale and to increase
bargaining power (see note 2.2, Small and Medium
Enterprises).
Actively involve local producers in forest policy negotiations
with private industry, government agencies, and
Figure 1.2
Forest Market Development Strategy for Low-Income Producers
Local people
• Forest communities
• Public forest users
• Small-scale farmers
• Landless workers
Commercial
market
opportunities
• Low-grade timber
• High-value timber
• Industrial pulpwood
• Certified wood
• Nontimber forest
products
• Processed products
• Payments for
ecosystem services
Local
comparative
advantages
• Control of forest
resources
• Lower costs
structure
• Forest management
capacity
• Lower supply risks
• Attractive to socially
responsible markets
Develop forest business
• Improve market position
• Strengthen producers
• Forge business partnerships
• Pursue new financing
• Encourage business
service providers
• Establish enterprise
development programs
• Target education and
research
Remove policy barriers
• Secure local rights
• Reduce regulatory burden
• “Level playing field”
• Involve producers in
policy negotiations
• Protect the poorest
Outcomes
Reduce
poverty
Increase
market
supply
Conserve,
restore
forest
resources
Source: Scherr, White, and Kaimowitz 2004.
NOTE 1.5: MAKING MARKETS WORK FOR THE FOREST-DEPENDENT POOR 57