Collective Forest Tenure Reform under Village Democracy

Conference on Forests and Common LandsRights, Conflicts, FRA and PESACollective Forest Tenure Reformunder Village DemocracyOverview and Preliminary AnalysisJintao Xu, Peking UniversityDec 18, 2012, New Delhi, IndiaSPWD, RRI

Potential Impacts• Forest Management– Incentives for farmer and private sector investment– Better protection– Higher productivity– Forest policy reform– International supply chain• Farmer Livelihood– Income and income structure– Labor allocation– Capacity for investment• Social and Political Stability– Equity– Relationship between farmers and government– Village governance

Policy and Research QuestionsHow the reforms were conducted at County\Township\Village Level--Are farmer forest tenure stronger?--Reform conducted with due process?--Stakeholder attitude?What are the impacts?--Do farmers harvest them all?--Do farmers plant?--Are farmers better off directly?--Impacts on farmer labor allocation?--Impact on forestland market?--Impact on farmer social organization?--Impact on State Forest Reform?Needs for future policy and regulatory adjustment/reform?--Forest regulation reform? Logging quota?--Regulation on forestland transfer/market.--Regulation on farmer association.--Policy on farmer financing

Forest Tenure in China• Two ownership types• State• ~42% forest area and 68% volume;Managed by state forest enterprises and farms• Collective• 58% area and 32% volume• Growing share of timber production• Diversified management schemes

Two Rounds of Tenure Reform• First Round: 1981-1986– A fluctuating processin Collective Forests– Different level of progresses among provinces– Tenure remains controversial Issue• Second Round: 2000-,– 2003-2007, 14 provinces announced new reform policy– In July 2008, Central Government Reform Policy wasdeclared, conclusion of the policy change process– By 2010, 20 provinces with reform policies

What’s New• Fujian• Local Initiatives to National Consolidation• “Village Autonomy”• Longer contract• Rich rights• Forest Certificates

Two Rounds of Repeated Surveys时 间 Time 省 份 Province 县 County 乡 Town 村 Village 农 户 HH2006.3-4 福 建 Fujian 12 36 72 7202006.5 江 西 Jiangxi 5 15 30 3002006.10-11 浙 江 Zhejiang 6 18 36 3602007.4 安 徽 Anhui 5 15 30 3002007.4 湖 南 Hunan 5 15 30 3002007.5-6 辽 宁 Liaoning 5 15 30 3002007.5-6 山 东 Shandong 5 15 30 3002007.8 云 南 Yunnan 6 12 30 600总 数 Total 49 141 288 3180

Forest Distribution in China

Changes in Share of Each Forest Tenure Type(Units: %)percent0 20 40 60 80 1004543442000315685020053212415120102159263200020104363834812005201080718420008071842005160607820100323922000100318682138620062010Progress of ReformTenure Share Change 2000-2010Fujian Jiangxi Zhejiang AnhuiIndividualNatural ClusterCollectivePartnerOutsiderpercent0 20 40 60 80 100320491Changes in Share of Each Forest Tenure Type(Units: %)12049335238720002006201028219843231237557932061200020062010Hunan Liaoning Shandong YunnanIndividualNatural ClusterCollective459047397054344062200020062010PartnerOutsider80320609017470134151256200020062010

Annual Harvest by Villages (m3)500.00450.00400.00350.00300.00250.00200.00150.00100.0050.000.0089 107 107441198155 134 14111115156 48 685713 282000 2003 2005 2010 2000 2003 2005 2010 2000 2003 2005 2010 2000 2003 2006 2010FJ JX ZJ AHIndividual Partner Nat Vil Outsider Collective1400.001200.001000.00800.00600.00400.00200.000.001,17456 67 84 81 46 53 98 110 22 31 17 40 121 92 1782000 2003 2006 2010 2000 2003 2006 2010 2000 2003 2006 2010 2000 2003 2006 2010HN LN SD YNIndividual Partner Nat Vil Outsider Collective

Annual Forestation by Villages (ha)25.0020.0015.0010.005.000.001612147 68 89 9724331 22000 2003 2005 2010 2000 2003 2005 2010 2000 2003 2005 2010 2000 2003 2006 2010FJ JX ZJ AHIndividual Partner Nat Vil Outsider Collective160.00140.00120.00100.0080.0060.0040.0020.000.0058691 9 5 61829 25 3443161 3 2 12000 2003 2006 2010 2000 2003 2006 2010 2000 2003 2006 2010 2000 2003 2006 2010HN LN SD YNIndividual Partner Nat Vil Outsider Collective

Income Structure Change 2000-2010Breakdown Anuual Income per Captia by Sources(Unit: %)(%)0 20 40 60 80 100578791113133938 344652557770233235333337307238161397635491191110121117 1531454241464546514557521358313033263934 35372728181915114 46 5736713373966235125253 42000 2005 2010 2000 20052010 20002005 2010 20002005 2010 2000 2005 2010 2000 2005 2010 2000 20052010 20002005 2010FJ JX ZJ AH HN LN SD YNForestAgricultureNon-agricultureOthers7242643

Results from Preliminary Analyses• Tenure Choice– Dominated by rural governance structure• Afforestation– Reform increased forestation area by 8%• Labor Allocation– Safety net effect for better educated farmers– Labor tying effect for ordinary farmers– Enhance self-employment15

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Tenure Share Change (2000-2010)(village average, ha)1800.001600.001400.001200.001000.00800.00600.00400.00200.000.002000 2006 2010 2000 2006 2010 2000 2006 2010 2000 2006 2010 2000 2006 2010 2000 2006 2010 2000 2006 2010 2000 2006 2010FJ JX ZJ AH HN LN SD YNIndividual Partner Nat Vil Outsider Collective

Rural p.c. Income Change 2000-20100 10,000 20,000 30,000 40,000674Breakdown of Annual Income Per Captia by Sources(Units:RMB)FJ JX ZJ Anhui Hunan LN SD YN2000 2005 2010 2000 2005 2010 2000 2005 2010 2000 2005 2010 2000 2005 2010 2000 2005 2010 2000 2005 2010 2000 2005 2010179259531737436647595494 29323055 391125326853713873264218810505919415716071610 22630841913532437924311486693949961381 30751134673627517783182148641491108496056443662665207Forest1474No-agriculture111949863322387314185141804661675261503121687900AgricultureOthers2592966744905338116749793599377732162310497137842721407709635063625077902239992641572695883103621539739074762142112891357943323135595779