Two decades of community forestry in Nepal: What have we learned?

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Two decades of community forestry in Nepal: What have we learned? Analysis of the harvesting regime of 178 cluster CFUGs indicate that there is an increased trend of the harvested timber both in terms of the number of groups and the volume of timber In 2006, 120 CFUGs harvested 85,758 cubic feet (some 2,428 m³), whereas in 2010 the number reached 150 CFUGs, which collectively harvested 174,337 cubic feet (some 4,936 m³) timber. Nevertheless, harvesting rates still fall well below prescribed allowable cuts, indicating that CFUGs are more conservative than the Department of Forests. In conclusion, much experience and many lessons have been generated from NSCFP’s support for forest-based enterprises. The challenges in each value chain are different, although there are common threads. One is the diffi culty of breaking into markets that are already well controlled by existing companies. A more fundamental and critical one is the offer of local wage labour opportunities - always seen as an important aspect of being pro-poor, with the disadvantaged having priority. Figures indicate that DAGs took up nearly 20,000 days of employment in NSCFP-supported forest-based enterprises in the fi scal year 2009-2010. Yet for three districts, this is small amount. Rather than simply generating paid labour opportunities, the real challenge has proven to be the generation of jobs that pay well, regularly and reliably, and thus allow those concerned to work with dignity. Given that alternative options exist (especially out-migration), until forest-based enterprises can offer good employment conditions they will tend to struggle in meeting their labour needs. Finally, there are many policy issues – evidenced by obstructive rules and regulations – that effectively inhibit opportunities for CFUGs to establish viable commercial enterprises. General forest policy issues are discussed n the fi nal section. Key issues for the future • Whilst the tripartite arrangement of enterprises in which shares are held by the identifi ed poor, CFUGs, and private investors did not prove highly successful in all cases, the concept of promoting equitable enterprises remains valid. Future efforts should focus on promoting business partnerships between CFUGs and private concerns, with a professional manager employed to take daily management decisions, and strategic decisions taken by a representative board of directors. The directors should also be aware that the payment of dividends to CFUG members as soon as possible after establishment is a crucial factor in establishing a sense of ownership in the enterprise. • Focusing on specifi c value chains is essential to understand the intricacies of supply and demand. Through this understanding, decisions can be taken on which interventions where along the chain hold greatest potential to increase profi ts for the CFUGs. Using this lens, particularly opportunities for the poor and disadvantaged can also be identifi ed. • The maximisation of commercial opportunities for CFUGs should be a clear policy priority. With this, there should be a thorough assessment and re-writing of the numerous rules, regulations and other obstacles currently 68
Two decades of community forestry in Nepal: What have we learned? inhibiting CFUGs from generating the income that they could. This issue requires strong collaboration between different stakeholders in pushing for policy change – including members of the private sector, convinced members of the Ministry and Department of Forests, the Department of Cottage Industries, Ministry of Environment and advocacy organisations such as FECOFUN. • The timber value chain remains the most potentially lucrative for CFUGs and thus it is important that continued support is given for CFUGs wishing to exploit their timber resources. • Business services remain poorly developed in the project area, and in rural parts of Nepal more generally. There is a need for further support in developing such services – offering advice on matters ranging from the writing of business plans to value chain analysis, market assessment, product development, etc. • In order to be attractive employers, forest-based enterprises need to give greater consideration to workforce management – making clear, mutually binding offers that guarantee a minimum number of days labour at a certain rate. Limited advance payment (as sometimes done in competing offers) might be considered as a means to enhance employee commitment. 69
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TWO DECADES OF COMMUNITY FORESTRY I
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Namdu, Dolakha, 1989 Namdu, Dolakha
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FOREWORD Over 20 years ago, the Swi
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List of Abbreviations AIDS : Acquir
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CONTENTS Foreword .................
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1. INTRODUCTION Two decades of comm
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Two decades of community forestry i
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Two decades of community forestry in Nepal: What have we learned?

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