Forests Sourcebook - HCV Resource Network

Box 2.10
Supporting Forest Enterprise Associations
in Brazil
In Brazil, the National Institute for Colonisation
and Land Reform requires settlers to register an
association to access government titles to land,
housing, and infrastructure. Many of these associations
became dormant after this obligation
passed, but some, such as the Association of the
Settlement Project California, have gone on to
consolidate their associations and pursue members’
interests, and having a representative body
has allowed potential partners to engage.
For example, the NGO GTA (Amazon Working
Group) has built milk and pork agro-industry facilities
and fruit and honey processing units. Electricity
was supplied through a government program
called “Light in the Countryside.” Adult education
was supplied through a government education program.
Association members experimented with
outgrowing soybeans, but are now looking for government
support for biofuel production.
Source: Figueiredo and others 2006.
grievances—in more extreme cases providing the motive
and means for financing conflict (Kaimowitz 2005). In
certain circumstances, putting local resources into local
hands may be most appropriate. Local SMFEs generally
have a greater understanding of local social and political
contexts, stronger links with local civil society, and a greater
commitment to operating in a specific area than do largescale
enterprises. Inappropriate forest land allocation to
large players (even if justified by more sustainable forest
management) may undermine local control and its “silent
social responsibility” and generate conflict (Ozinga 2004).
LESSONS LEARNED AND RECOMMENDATIONS
FOR PRACTITIONERS
Invest in understanding SMFEs and, if appropriate,
initially work with pilots. Information on SMFEs in
developing countries is often inadequate, especially for
NTFPs (Thomas and others 2003), and it takes time to collect
information and assess the impact of policies on SMFEs in
the field (Johnstone, Cau, and Norfolk 2004; Johnstone and
others 2004). SMFE staff are also usually heavily timeconstrained
and risk averse. Hidden constraints can prevent
expansion of forest product activities. Available time, cultural
roles, social priorities, and misconceptions or mistrust of the
language of economic development can affect outcomes.
Tools to get to know entrepreneurs are essential (Mangal and
Forte 2005). Smaller trial interventions with a long time
frame may be necessary for initial implementation.
Ensure that interventions are based on demand-driven
approaches rather than approaches to supplying
capacity. Trying to make what sells is invariably better than
trying to sell what can be made. Too often the focus of SMFE
programs is supply driven—for example, trying to create
employment or raise income levels (Artur and Kanji 2005).
Partnerships between large firms and SMFEs can help
to overcome some of the capacity deficits that constrain
vertical adaptation and specialization. Fair deals that balance
resource supply with technological exchange from the large
firm is a model that has worked in instances where it is in the
interest of both sides. However, it must be assumed that
negotiations are stacked in favor of large firms; thus, specific
tools and processes should be used to equip SMFEs for
negotiating (Joaquim, Norfolk, and Macqueen 2005).
Work with existing enterprise associations. The vast
majority of SMFEs link themselves in some way to
associations that help to shape the policy environment,
reduce transaction costs, and invest in adaptive strategies to
take advantage of new opportunities. Good information can
be found about what makes associations work well (for
example, Agrawal 2001). Working with trusted intermediaries
to support the specific training needs identified by
associations is fundamental to SMFE support (Macqueen,
Figueiredo et al. 2006; Macqueen, Vermeulen et al. 2005).
Give preferential support to forms of enterprise
that are designed to achieve progressive social and
environmental objectives. For some enterprises, such as
associations, cooperatives, and nonprofit companies linked to
marginalized groups, these objectives are as important as
profit, and it is worth providing preferential support to or
procurement policies for such aims (Macqueen 2006). Tools
such as Fair Trade already exist that favor cooperative forms
of enterprise or particular marginalized groups (for example,
black economic empowerment procurement policies in
South Africa or equivalents for First Nations in Canada).
Establish cross-agency coordination to simplify,
stabilize, and implement pro-SMFE policies and
support programs. In many countries, the burden of
80 CHAPTER 2: ENGAGING THE PRIVATE SECTOR IN FOREST SECTOR DEVELOPMENT