The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR

use mechanized processing, and a variety of labor-saving devices (peeling, splitting
and coring machines; steam tanks; hydraulic bending machines; staple guns; roof
tracks to move furniture around the factory; spray booths for finishing; etc.). However,
there are natural limitations to mechanization. Many stages in the manufacturing
process can still be done better and more cheaply by hand. Labor costs and perhaps
raw material supply insecurity prevent further mechanization, though there are
numerous processes that could technically be mechanized.
There has also been a large increase in the input of skill. The exporters pay
careful attention to market demands, and act and react with rapidly changing designs
and strong marketing input.
One furniture and handicrafts manufacturer in the Philippines boasts of having
1 000 designs. A Chinese company in Guangzhou claims to have 10 000! In order to
increase the skill input into their production, furniture manufacturers in Indonesia
have hired Filipino factory managers and laborers (the Filipinos are widely regarded
as being the best designers and craft workers in the region). Some furniture factories
in Laos have hired an experienced Vietnamese manager and 15 skilled Vietnamese
workers at triple the local salary.
As with production scale increases, increases in mechanization also drives the
demand for more regular raw material supplies. For, manufacturers with higher capital
investments cannot afford any down time.
Still, the vast majority of bamboo and rattan processing enterprises are familyrun
microenterprises using extremely rudimentary technology and, in many cases,
turning out serviceable but rustic products that have limited appeal outside of local
markets. There is scope for increasing the returns to the labor and materials used
through improved preservation, processing and finishing technologies, improved
designs, and better marketing.
Policy Issues
Governments have three main kinds of tools available to implement policy:
regulations, fiscal incentives and direct investment. The most important policy tools
that have been used in the cases examined here are regulations. Most of the regulations
identified as having important impacts on the bamboo and rattan PCS are within the
forestry or agriculture sector, but some important cross-sectoral issues were also
identified. Fiscal incentives are used to a limited extent. For example, 'special deposits'
are used in the Philippines as a means to encourage replanting. Tax incentives in the
manufacturing industry have also bee noted. The main channels of direct investment
in the bamboo and rattan sectors appear to be state management of forest resources,
assistance to industry and research (limited).
Important regulatory mechanisms include harvesting licences and limits,
restrictions on the movement of raw material, harvesting regulations, requirements
73