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					                                                                                                                         ISSN 0041-6436




                                                                                                                         233
                 Food and Agriculture                    An international journal                             Vol. 60
                 Organization                            of forestry and forest
                 of the United Nations                   industries                                           2009/3




Editor: A. Perlis                                    Contents
Editorial Advisory Board:
T. Hofer, R.M. Martin, A. Perlis,
E. Rametsteiner, S. Rose, P. van Lierop,
                                                     Editorial                                                                     2
P. Vantomme, M.L. Wilkie                             C.T.S. Nair and R. Rutt
Emeritus Advisers:
J. Ball, I.J. Bourke, C. Palmberg-Lerche,            Creating forestry jobs to boost the economy and build a green future          3
L. Russo
Regional Advisers:
                                                         T. Presas
F. Bojang, C. Carneiro, P. Durst                         Financial meltdown and the future of the forest products industry        11

Unasylva is published in English, French and         R. Taylor
Spanish. Payment is no longer required. Free         Crisis in the wood products industry and markets:
subscriptions can be obtained by sending an          perspectives from North America                                             13
e-mail to unasylva@fao.org
  Subscription requests from institutions (e.g.      A.R. Kimbell and H. Brown
libraries, companies, organizations, universities)   Restoring hope: the United States Forest Service’s economic
rather than individuals are preferred to make the    recovery programme                                                          23
journal accessible to more readers.
  All issues of Unasylva are available online        I. Tomaselli
free of charge at www.fao.org/forestry/unasylva
  Comments and queries are welcome:
                                                     How forest plantations can contribute to economic renewal
unasylva@fao.org                                     in South America                                                            29

Reproduction and dissemination of material           J.R. Matta
in this publication for educational or other         Rebuilding rural India: potential for further investments in
non-commercial purposes are authorized               forestry and green jobs                                                     36
without any prior written permission from the
copyright holders provided the source is fully           J.L. Atienza, Jr
acknowledged. Reproduction of material in                The Philippines’ Upland Development Program:
this publication for resale or other commercial          cushioning the impacts of global financial crisis and climate
purposes is prohibited without written permission
of the Chief, Electronic Publishing Policy and           change through green jobs                                                42
Support Branch, Communication Division,
FAO.
                                                     Q. Ma, J. Liu and W. Du
  Articles express the views of their authors,       How Chinese forestry is coping with the challenges of global
not necessarily those of FAO.                        economic downturn                                                           43
  Designations employed and presentation of
material do not imply the expression of any          J.C. Tieguhong, O. Ndoye, P. Vantomme, J. Zwolinski and J. Masuch
opinion on the part of FAO concerning the legal      Coping with crisis in Central Africa: enhanced role for non-wood
or development status of any country, territory,     forest products                                                             49
city or area or of its authorities, or concerning
the delimitation of its frontiers or boundaries.         R.N. Heath and S. Chipeta
  The FAO publications reviewed in Unasylva              Global economic crisis and long-term development:
may be ordered from any of the FAO sales
agents listed on the inside back cover. FAO              a view from the South African forestry sector                            55
will process orders from countries where there
are no sales agents. Contact the Sales and
                                                     FAO Forestry                                                                56
Marketing Group, Communication Division,             World of Forestry                                                           61
FAO, Viale delle Terme di Caracalla, 00153
Rome, Italy.                                         Books                                                                       64
Tel.: (+39) 06 57051;
Fax: (+39) 06 5705 3360;
Telex: 625852/625853/610181 FAO I;
E-mail: publications-sales@fao.org


Cover photos:
ILO/e6475 & e6476/T. Falise
                                                        editorial



Green jobs                                                          the United States Forest Service is investing these funds in
                                                                    programmes to restore forests and protect them from fire and
                                                                    other threats, to improve recreational facilities and to provide
                                                                    jobs for youth.


I
     n 2009 the world confronts financial and economic crisis.        In South America, forest industry is an important contributor
     What does it mean for the forest sector, and what can the      to gross domestic product (GDP) in several highly forested
     sector do to respond?                                          countries. I. Tomaselli examines the potential for developing
  The United Nations Secretary-General, in his report to the        forestry’s role in economic renewal in the region, focusing on
Conference on the World Financial and Economic Crisis and           the contribution of forest plantations to employment.
Its Impact on Development in June 2009, estimated that global         Turning to Asia and the Pacific, J.R. Matta examines the
per capita income could drop by 3.7 percent in 2009. Rising         variety of jobs that could be created in India by increasing
unemployment could push hundreds of millions of people into         the allotment of funds to forestry under the National Rural
poverty, especially in developing countries.                        Employment Guarantee Act, which guarantees 100 days of
  The crisis has already had dire effects on the forest sector      employment to India’s rural population. Such investment would
globally, including depressed demand for forest products,           also help to meet national afforestation goals.
industry slowdowns and closures. Reduced investments and              J.L. Atienza, Jr briefly describes the Upland Development
budget cutbacks could make it increasingly difficult to obtain      Program in the Philippines, introduced in 2009 to cushion
financing for forest conservation and management. There is a        the impact of the global financial crisis, mitigate hunger and
risk that the crisis could distract attention and funding away      enhance adaptation to climate change. The programme will
from crucial global problems of climate change and environ-         create thousands of jobs in restoring forests and watersheds,
mental degradation.                                                 and is also linked to programmes providing support for small-
  The resolution adopted by the UN General Assembly at the          scale forest enterprise.
June conference recognizes that “the response to the crisis           In China, the global financial crisis has already put the brakes
presents an opportunity to promote green economy initiatives ...    on the forestry sector’s extremely rapid growth of recent years.
[which] should address sustainable development and environ-         Decreased demand for forest products has resulted in industry
mental challenges and opportunities, including climate change       slowdowns and closures, with small and medium-sized wood-
mitigation and adaptation, financing and technology transfer to     processing enterprises hit hardest. Q. Ma, J. Liu and W. Du
developing countries and sustainable forest management”.            analyse the policy adopted by the government to stimulate
                                                                    investment in the forest sector, expand domestic demand and


A
          s part of World Forest Week (16 to 20 March 2009;         create a favourable environment for enterprise.
          see page 56), FAO held a special event on “Impacts of       The crisis has also taken a heavy toll in Africa, with reduced
          Global Economic Turbulence on the Forest Sector”,         demand from importing countries forcing companies to close
which explored the opportunities to invest in forest-based job      concessions and lay off workers. Such crises accentuate the
creation. The first five articles in this issue of Unasylva are     dependence of rural communities on non-wood forest products
adapted from presentations at that event.                           (NWFPs) for self-employment, income and sustenance. J.C.
  The overview article, by C.T.S. Nair and R. Rutt, asserts that    Tieguhong et al. describe the development of a legal framework
targeted public investment in forestry could generate about 10      for commercial use of NWFPs in Central Africa, to safeguard
million new jobs around the world, and examines the invest-         people’s rights of access and to avoid possible negative impacts
ment costs required.                                                from intensified use of the forest.
  T. Presas briefly outlines the challenges and opportunities         Finally, R.N. Heath and S. Chipeta outline crisis response
posed by the crisis from the industry point of view. She notes      measures proposed in South Africa, including accelerated
that the recession is likely to alter the structure and business    implementation of labour-intensive programmes in rehabili-
models of the global forest products industry – and that industry   tating degraded woodlands, controlling invasive species and
should be preparing for these changes now.                          managing fire. The authors stress that measures to safeguard
  A graph-filled article by R. Taylor illustrates concisely how     domestic industries and jobs must not unintentionally jeopardize
the crisis has hit the wood industry in North America. Taylor       growth in other countries and in the world economy.
traces how the collapse of the housing market was paralleled


                                                                    W
by a collapse in construction and in wood products markets. He                  hether sooner or later, this crisis will pass. But
then describes options for industry, forest owners and govern-                  the messages of this Unasylva issue will remain
ments to help the forest sector gain strength from the crisis.                  pertinent. With strategic investment, forestry can
  In the United States, early in 2009 the American Recovery         contribute much to employment, to livelihood support, to
and Reinvestment Act authorized US$1.15 billion for stimulus        environmental renewal and to climate change mitigation and
projects in forestry. A.R. Kimbell and H. Brown describe how        adaptation.
                                                                           3




                Creating forestry jobs to boost the economy and
                              build a green future
                                                         C.T.S. Nair and R. Rutt




  Targeted public investment in

                                                   S
                                                          tarting from early 2008, the world           by governments and central banks, there
  forestry could generate about                           has been witnessing one of the               are considerable uncertainties about sus-
  10 million new jobs around the                          worst economic crises since the              tained recovery. Under the most optimis-
  world.                                           Great Depression of the 1930s. Losses in            tic scenario an upturn in many countries
                                                   financial markets worth trillions of United         may start in 2010 or 2011, but the pos-
                                                   States dollars have spread through econo-           sibility of further economic decline and
                                                   mies worldwide, leading to reductions in            a prolonged, anaemic recovery cannot
                                                   production, employment, incomes and                 be completely ruled out.
                                                   consumer demand. Growth rates of all                  Major consequences of the economic
                                                   economies have been revised downwards               decline include factory closures on an
                                                   (UN, 2009). Although as of summer 2009              unprecedented scale, consequent job cuts
                                                   the decline has slowed and some of the              and a rapid increase in unemployment
                                                   emerging economies are showing signs                (Figure 1). Global unemployment, esti-
                                                   of recovery thanks to measures adopted              mated at about 180 million in 2007, is

                                                   1
                                                   World unemployment trends (in millions)


                                                        250
                                                                                                                            Near East

                                                                                                                            Latin America and
                                                        200                                                                 the Caribbean
                                                                                                                            Central and southeastern
                                                                                                                            Europe (non-EU) and
                                                                                                                            Commonwealth of
                                                        150
                                                                                                                            Independent States
                                                                                                                            Developed economies

                                                        100                                                                 Africa

                                                                                                                            Asia and the Pacific
                                                                                                                            (excluding Japan)
                                                         50



                                                          0
                                                                2007       2008       2009       2009       2009
                                                                                    Scenario 1 Scenario 2 Scenario 3

                                                      Scenario 1 was generated using the historical relationship between economic growth and
  C.T.S. Nair is Chief Economist and Rebecca          vulnerable employment at the country level between 1991 and 2008, together with the International
  Rutt is Consultant in the Forest Economics and      Monetary Fund (IMF) gross domestic product (GDP) growth projections for 2009.
  Policy Division, Forestry Department, FAO,          Scenario 2 was generated based on the relationship between economic growth and vulnerable
  Rome.                                               employment during the worst observed economic downturn in each country, applied to the 2009 IMF
                                                      GDP growth projections.
                                                      Scenario 3 was generated by taking the worst observed year-on-year increase in each country’s
  This article was developed from a background        vulnerable employment rate and assuming the same increase would occur simultaneously in all
  paper prepared for the special event “Impacts       economies in 2009.
  of Global Economic Turbulence on the Forest
  Sector” at the nineteenth session of the FAO        Source: ILO, 2009.
  Committee on Forestry, Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                                   4




                 projected to increase to nearly 210 mil-      (including for migrant workers), its          change. Forestry could have a positive
                 lion in 2009, or even as high as 239          decline has contributed substantially to      role in the economic stabilization efforts,
                 million in the worst-case scenario (ILO,      increased unemployment. Growing rural         particularly through job creation and the
                 2009). Job losses among migrant work-         unemployment could increase pressure          rebuilding of the natural capital base.
                 ers from developing countries, who are        on forests and woodlands, leading to
                 particularly vulnerable, lead to reverse      deforestation and degradation. Declining      FORESTRY IN THE ECONOMIC
                 migration to their home countries (often      demand for wood and wood products             STIMULUS PACKAGE
                 to rural areas), reduced remittances, loss    could also reduce investments in sustain-     Employment generation
                 of livelihood and increasing poverty and      able forest management by governments,        Job creation remains the foremost con-
                 food insecurity. At the national level, an    industries and smallholders, adversely        cern for most countries as economies
                 exodus of unemployed urban workers            affecting future wood supplies and envi-      contract and joblessness increases. As
                 back to their villages is aggravating rural   ronmental services.                           the credit squeeze reduces fund avail-
                 unemployment and underemployment in             In response to the economic crisis, a       ability, much of the focus will be on job
                 many countries.                               number of governments have initiated          creation in sectors with high labour–
                   In the forest sector, the economic down-    economic stimulus packages to bail out        capital ratios. Forestry’s potential for
                 turn presents particular challenges (FAO,     financial institutions and to stimulate       employment generation stems from
                 2009). The slump in the construction sec-     production and consumption. By early          several factors:
                 tor, especially in many developed coun-       2009, the total value of the various stimu-     •	Low	capital	requirements. With the
                 tries (for example in the United States       lus packages amounted to over US$3                exception of some forest industries
                 of America, where annual housing starts       trillion (Gallagher, 2009). Employment            such as pulp and paper and panel
                 declined by about 80 percent between          generation through public works is an             products, forestry is labour intensive
                 January 2006 and January 2009), led           important thrust of many of the stimulus          with relatively low capital invest-
                 to a drastic reduction in demand for          packages. An increase in jobs is expected         ment. Labour and land are the key
                 wood products. Production, trade and          to enhance income, increase consump-              inputs in the production of wood and
                 employment have been scaled down in           tion and thus stimulate production and            non-wood forest products, and envi-
                 response to the low demand. Since the         further employment, helping to break              ronmental services and investments
                 construction sector is a major employer       the downward spiral.                              in upstream (primary) forestry activi-
                                                                 The strategies of a number of countries         ties are able to generate more jobs
                 With declining demand for wood                emphasize movement towards a green                than most other sectors. An annual
                 and wood products, there is a
                 danger that governments, industries
                                                               future, with the aim of stimulating sec-          outlay of US$1 million in forest man-
                 and smallholders could reduce                 tors that will create real assets, improve        agement (including agroforestry)
                 investments in sustainable forest             energy efficiency, increase the use of            could generate from 500 to 1 000
                 management, putting future wood
                 supplies and environmental services
                                                               renewable resources and combat climate            jobs in many developing countries,
                 at risk (log barge, Indonesia)
FAO/FO-5709/P. DURST




                                                                                                                                      Unasylva 233, Vol. 60, 2009
                                                                      5




       and 20 to 100 in most developed and
       middle-income countries.                          Public investments for employment generation in forestry
     •	Multiplier	 effect. Since a major
       share of a worker’s income goes to         Employment generation through forestry activities has played an important role in
       the purchase of goods and services,        addressing recession in several instances.
       mainly at the local level, every one         The Civilian Conservation Corps (CCC), established in the United States of America
       job created in forestry generates          in 1933, was one of the most popular programmes of the New Deal providing relief and
       an additional 1.5 to 2.5 jobs in the       recovery from the Great Depression. The CCC reforested timberlands, fought forest fires,
       economy.                                   built public roads and maintained public parks. The assets built during that time have
     •	Flexibility	 and	 adaptability	 in	        provided a solid base for nature conservation and management in the United States. Several
       diverse	 situations. The variety of        other countries (for example New Zealand) took up reforestation and afforestation work
       the tasks required and the levels of       as a strategy for addressing the high level of unemployment during the same period.
       technology available offer various           Most of the forests in Japan were established as part of the reconstruction programme
       employment options. For example,           after the Second World War. During the war these forests were logged heavily. The post-




                                                                                                                                            FAO/FO-6178/G. ALLARD
       planting could be undertaken as an         war investments in plantations helped to improve the country’s forest cover and at the
       extremely labour-intensive opera-          same time provided substantial employment to local communities.
       tion if there are no labour constraints,     In India, forestry employment is one focus of the National Rural Employment Guarantee
       or it could be partially mechanized        Act (see article by Matta in this issue), launched in 2005. The act guarantees 100 days of
       depending on the relative costs of         employment for all unemployed adult members of a family. Afforestation and drought
       labour and other inputs.                   proofing are integral components. During the period 2006 to 2008, this legislation provided
    There is a long history of job generation     2.3 billion person-days of work to rural households in a variety of rural asset creating
  through public investments in forestry          activities, at a cost of US$6 billion. Recognizing its positive impact, the government has
  (see Box). Although the current situation       increased the outlay for 2009–2010 to about US$8 billion.
  differs from past economic downturns, a
  number of countries have included job
  creation in forestry as an integral part        extent illegal logging), yet there was no     tation. Carbon sequestration by newly
  of their economic recovery plans – for          concomitant increase in investments in        planted trees on farms and in forests
  example Canada, Chile, China (see arti-         forest management, especially in devel-       would help to compensate the emissions
  cle by Ma, Liu and Du in this issue), India     oping countries.                              from deforestation and degradation. Pro-
  (see article by Matta), the Republic of           As industry contracts and demand            viding employment in forestry activities
  Korea and the United States (see article        for wood remains subdued, increased           would have the double advantage of:
  by Kimbell and Brown).                          investment in rebuilding the forest asset        • slowing down deforestation and deg-
                                                  base starts to make better sense. While            radation that would have taken place
  Rebuilding natural assets                       forest owners (governments, private                in the absence of employment;
  Even before the economic crisis,                owners, enterprises and communities)             • augmenting carbon sequestration
  increased reliance on industrial and ser-       are likely to scale down their investments         through increased tree planting and
  vices sectors for income and employment         in response to declining wood demand,              improved management of forests.
  had to some extent reduced investments          it becomes critical to enhance invest-        Better fuel management would reduce
  in primary sectors, including forestry.         ments in forest management, especially        the frequency and intensity of forest
  Within forestry, wood processing and log-       to ensure that the future supply of pro-      fires and consequent carbon emissions.
  ging have received the most investments         ducts and services is sustained.              Rebuilding the natural resource base is
  in view of their high returns and short                                                       a major step in moving towards a “green
  payback periods, while management of            Climate change mitigation and                 economy”.
  forests has received much less atten-           adaptation
  tion; this is particularly true for tropical    Employment generation through                 MORE JOBS IN FORESTRY
  forests and especially where more profit-       upstream forestry activities – affores-       Currently the total employment in the
  able land-use options are available. An         tation, reforestation, improved manage-       formal forestry sector (the officially
  economic boom in the past few years             ment of natural forests, conservation,        reported figures for wood production,
  had increased the demand for wood and           watershed protection, agroforestry,           wood processing, the pulp and paper
  wood products, resulting in the expan-          urban forestry, etc. – directly contributes   industry and furniture production) is
  sion of wood processing (and to some            to climate change mitigation and adap-        estimated at about 18.2 million (full-




Unasylva 233, Vol. 60, 2009
                                                                           6




                                                   specific conditions at the national and              cific local conditions, knowledge and
    3.9 million                                    local levels, a wide array of job creation           skills, could be important sources of
       21%                           5.5 million
                                        30%        projects and programmes could help alle-             employment. Most countries have sub-
                                                   viate the current unemployment problem               stantial experience in afforestation and
             Wood
           production        Wood
                                                   and at the same time improve the man-                reforestation and could scale up these
                           processing              agement of land and forest resources,                activities. Annual plantation establish-
                                                   including the creation of new assets                 ment (excluding assisted regeneration
                                                   (Table). Because most of these activi-               in semi-natural forests) is about 2.5 mil-
           Paper                                   ties are seasonal and undertaken over                lion hectares (FAO, 2006). Taking into
          industry
                        Furniture
                                                   short periods, full-time employment                  account the availability of suitable land
                        industry                   requires a combination of activities.                and the institutional capacity, the rate
                                                   Landowners often have a diverse array                of establishment of productive and pro-
   4.4 million                      4.5 million    of income sources, and forestry could                tective plantations could be doubled or
      24%                              25%         augment income from other sources,                   tripled annually.
  Source: FAO, 2008.                               especially when these are affected by
2                                                  the economic downturn. For some rural                Maintenance and improvement of
Employment in the formal                           households, even a few days of forestry              existing planted forests
forestry sector
                                                   work could help to increase income and               The total extent of planted forests in 2006
                                                   alleviate poverty.                                   was estimated as 271 million hectares
time equivalent) (Figure 2). Although a                                                                 (more or less equally divided between
significant share of the jobs in forestry,         Afforestation and reforestation                      plantations and semi-natural forests
especially in developing countries, is             Afforestation and reforestation, includ-             established through assisted natural
in the informal sector, no reliable esti-          ing reclamation of degraded or deserti-              regeneration). In many countries vast
mates are available on the extent of such          fied lands, offer the greatest scope for             tracts of planted forests have not been
employment. The International Labour               job creation, particularly where rural               maintained properly and investment in
Organization (ILO, 2001) has “guess-               unemployment or underemployment is                   their maintenance has been declining.
timated” that about 63 percent of total            high and vast tracts of degraded land                Even routine maintenance operations –
forestry employment is in the “invisible           are available. Land preparation, produc-             weeding, cleaning, thinning and prun-
sector”, including woodfuel production,            tion of planting material and planting               ing – are often neglected, with negative
for which disaggregated data on formal             and maintenance, adapted to the spe-                 consequences for productivity. Although
and informal production are not avail-
able, as well as the numerous forestry
enterprises in the informal arena. On              Potential new jobs in sustainable management of forests and level of investment
this basis, total employment in the forest         required (annual targets for an initial five-year period)
sector could be as high as about 49 mil-            Activity                                New jobs          Annual target area    Approximate
                                                                                        (million, full-time      (million ha)       annual outlay
lion (FAO, 2008).                                                                         equivalent)                                (billion US$)
  No disaggregated data on employment               Afforestation, reforestation and
in forest management are available. Of              desertification control                    4–5                     5                     8
the estimated 3.9 million jobs in wood              Improvement of productivity of
                                                    existing planted forests                 0.5–1.0                 10                      1
production, most are in logging, i.e.
production of industrial roundwood                  Watershed improvement                      1–3                     1                     6
and fuelwood removal, through formal
                                                    Indigenous forest management               1–2                     4                     5
arrangements. Probably not more than
                                                    Forest conservation                        2–3                   20                      7
one-fourth to one-half of production jobs
                                                    Agroforestry                            0.5–0.75                   2                     1
involve planting and management of
forests and woodlands.                              Fire management                         1.0–1.25                 10                      5

  Although this employment estimate
                                                    Urban and peri-urban forestry            0.1–0.5                 0.1                     2
is not precise, it does indicate the low
                                                    Skill improvement of forestry and
level of effort given to managing forests           wood industry workers                      0.05                                          1
sustainably, suggesting substantial scope
to scale up activities. Depending on the            Total                                   10.1–16.5                                      36




                                                                                                                                   Unasylva 233, Vol. 60, 2009
                                                                   7




  low productivity is often partly due to
  poor quality of planting stock, regular
  maintenance operations can improve
  productivity (or at least prevent further
  decline) and hold enormous potential for
  job creation. Increased productivity will
  also decrease the pressure to expand the
  plantation area to meet future growth in
  wood demand.

  Watershed improvement
  In view of the highly degraded condition
  of many watersheds and growing con-
  cern about declining supply and quality




                                                                                                                                          FAO/FO-5186/L. FEROUKI
  of water, watershed improvement will
  be a major area of job generation invest-
  ment in most countries, using techniques
  appropriate to the specific ecological,
  social and economic conditions. In addi-                                                                               Afforestation and
  tion to afforestation, watershed improve-     the use of traditional knowledge of local                           reforestation offer the
                                                                                                                    greatest scope for job
  ment may involve construction of water        communities and the adoption of techno-
                                                                                                              creation, particularly where
  and soil conservation structures such as      logies appropriate to local conditions.                            rural unemployment is
  check dams, contour trenches and ter-                                                                            high and vast tracts of
                                                                                                              degraded land are available
  races, which is highly labour intensive.      Forest conservation
                                                                                                                 (watering nursery plants
  Again, these activities will help improve     Despite the increasing demand for                              for desertification control,
  the natural asset base while generating       environmental services, investment in                                             Senegal)
  employment.                                   forest conservation has been limited (see
                                                Box, page 8). Conservation activities
  Management of natural forests                 that could be scaled up include demar-      While demand for wood
                                                                                            remains subdued,
  Natural forests are important for environ-    cating boundaries of protected areas,       attention can be turned
  mental services – e.g. watershed protec-      maintaining paths and trails, devel-        to maintenance and
  tion, conservation of biodiversity, carbon    oping recreation sites and establish-       improvement of existing
                                                                                            planted forests (weed
  sequestration – and for wood production       ing nature education and information        control in a forest
  (especially in the tropics), although their   centres. Employing local community          plantation, Chile)
  role in the latter is declining in view of    members in such activities could ensure
  expanding wood supplies from planted          the effective protection of conserva-
  forests. Investment in the management         tion areas. Considering that the world’s
  of natural forests, however, has been         protected areas extend over about 1.9
  negligible. Vast tracts of logged-over        billion hectares, even a modest effort to
  secondary forests remain unmanaged            improve accessible areas could provide
  and are becoming degraded, especially         employment to many thousands of peo-
  in the context of mounting human pres-        ple. As economies recover and income
  sures. In many countries the condition of     increases, the demand for recreation
  these forests and their environmental ser-    will increase and the investments in
  vices could be improved through assisted      improving the infrastructure and other
  regeneration and “close-to-nature” forest     facilities will be quickly recouped.
  management based on better understand-
                                                                                                                                          FAO/FO-5109/S. BISOFFI




  ing of ecosystem processes. Sustainably       Agroforestry
  managed secondary forests could also          Tree growing has been an integral part of
  produce high-quality timber for niche         various farming systems providing a wide
  markets. Here again there is scope for        array of products, including non-wood




Unasylva 233, Vol. 60, 2009
                                                                                    8




                                                                                                         In view of growing concern
                                                                                                         about water quality
                                                                                                         and supply, watershed
                                                                                                         improvement will be a major
                                                                                                         area for investment in jobs
                                                                                                         (measuring soil erosion,
                                                                                                         Thailand)




                                                                                                           qualified hands who would otherwise
                                                                                                           remain unemployed and be at risk of
                                                                                                           losing their skills. It could also help save
FAO/FO-6417/M. KASHIO




                                                                                                           resources and enhance worker safety and
                                                                                                           eventually income.
                                                                                                             Employment opportunities also exist in
                                                                                                           research and development, for example,
                                                                                                           in more energy- and material-efficient
                  forest products. In many countries farm-    ning, establishment and management of        “green technologies” and organiza-
                  grown trees have become the most impor-     urban and peri-urban green spaces could      tional management, which may lead to
                  tant source of wood supply. With secure     not only provide an antidote to growing      improved forestry practices and compet-
                  tenure and expanding local demand,          urban employment, but also improve           itive advantage. Investment in research
                  agroforestry can be expanded and exist-     urban living conditions.                     and development could alter the nature
                  ing practices improved. Although this                                                    of forestry jobs in the future.
                  may not generate full-time employment,      Skill development of forest and forest
                  it will help to reduce poverty of farm      industry workers                             OVERVIEW OF ANNUAL COSTS
                  households.                                 In many countries forestry and forest        Summing up, the annual outlay for
                                                              industry workers have little or no for-      rebuilding the forest asset base, focus-
                  Fire management                             mal training and insufficient skill lev-     ing on the activities indicated above,
                  With the increased severity and fre-        els. The lull in demand for products         would be approximately US$36 billion,
                  quency of forest fires, attributed partly   could be an opportune time for upgrad-       distributed among activities as shown in
                  to climate change but also to failure to    ing skills and introducing new techno-       the Table on page 6. This could gene-
                  implement appropriate fuel management       logies. A systematic programme of skill      rate about 10 to 16 million jobs, largely
                  practices, forest fires have become an      development would require instructors,       depending on local conditions, espe-
                  important source of carbon emissions.       creating employment opportunities for        cially costs of inputs. More jobs can be
                  Fuel management to reduce the inci-
                  dence and severity of fires could also
                  increase employment, including for local                      Investment in protected area management
                  communities. Activities would depend
                  on the local conditions, but many are       The annual expenditure on protected area management in the decade 2000–2010 is
                  labour intensive.                           estimated as about US$6.5 billion globally, and most of this is in developed countries.
                                                              In many countries the expenditure on protected area management has declined. In
                  Urban and peri-urban green spaces           eastern Africa the outlay on protected area management is less than US$3 per hectare.
                  With growing urban populations, the         According to one estimate of the financing needed for protected area management,
                  demand for urban green space is increas-    US$45 billion per year would be needed to secure an expanded network of terrestrial
                  ing rapidly. Many city administrations      and marine protected areas. According to another estimate, protected area management
                  are developing parks and other green        in developing countries alone will require about US$12 billion to $13 billion per year
                  spaces to improve the urban environ-        over the next decade.
                  ment, yet these efforts could be expanded
                                                              Source: IUCN, 2006.
                  in many places. Job creation in plan-




                                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                                   9




                                  Fuel management work
                               helps reduce the incidence
                                     and severity of forest
                                  wildfire, thus lessening
                                         carbon emissions
                              (prescribed fire to establish
                                      a control line off of a
                                 firebreak, United States)




                                                                                                                                                     BUGWOOD.ORG/0016350/J.H. MILLER, US FOREST SERVICE
  generated in developing countries where
  wages are relatively low.
    Tomaselli (2006) estimated annual
  investments in the forest sector to be
  about US$64 billion, of which about
  US$46 billion go to downstream forest
  industry and trade, while US$18 bil-
  lion go to upstream forest management,
  establishment of plantations and harvest-                     tiatives for reducing emissions from          More importantly, such investments
  ing – with logging often accounting for                       deforestation and forest degradation in     could help rebuild natural assets that
  a major share of the upstream invest-                         developing countries (REDD) could be        have been severely depleted in the past.
  ment. No disaggregated information is                         expected to more than double this figure    Unemployment and lack of income have
  available on the share invested in forest                     (see Box below).                            been major factors contributing to de-
  management, nor are there reliable esti-                                                                  forestation and forest degradation in
  mates of the costs of sustainable forest                      CONCLUSIONS                                 most countries. Employment in sustain-
  management. Tomaselli estimated that                          Rapidly escalating unemployment and         able forest management thus has a double
  sustainable forest management would                           its social and economic consequences are    benefit: while it builds the natural asset
  require an investment of about US$31                          a major concern as countries grapple with   base, it also reduces the deforestation
  billion per year. Implementation of ini-                      the ongoing economic crisis. Sustainable    and degradation that often occur when
                                                                forest management could become an           other income-earning opportunities are
                                                                integral component of employment gen-       absent. Based on the current costs of sus-
      Costs of reducing emissions                               eration efforts and offers some unique      tainable forest management activities,
     from deforestation and forest                              advantages in fulfilling a number of        10 million jobs could help to establish,
       degradation in developing                                economic, social and environmental          restore or improve about 8 to 10 mil-
          countries (REDD)                                      objectives.                                 lion hectares of forests and woodlands,
                                                                  Targeted public investments could gen-    reversing deforestation and degradation.
  The estimated costs of implementing REDD                      erate about 10 million new jobs in affor-   Such employment would also strengthen
  depend on the level of the emission reduc-                    estation, reforestation, management of      the management of protected areas,
  tion required and the unit cost of CO2. The                   natural forests, establishment and man-     improve watersheds, create new urban
  annual cost of a 50 percent reduction of                      agement of urban and peri-urban green       and peri-urban green spaces and reduce
  emissions from deforestation could be about                   spaces, improvement of watersheds, pro-     the incidence of fire.
  US$17 billion to $33 billion for the period                   tection of forests from fire and building     The establishment of new forests and
  2005–2030. This estimate includes the up-                     roads, trails and recreation sites.         woodlands and improved management
  front capacity-building costs, opportunity                      Such investments could absorb unem-       of existing forests would directly con-
  costs and protection costs. The profitability                 ployed or recently dismissed workers,       tribute to climate change mitigation and
  of alternative land uses will be a major factor               increasing their income and consumption     adaptation. Both the reduction in de-
  determining the rent that will have to be paid                and contributing to arresting the down-     forestation and the establishment of new
  to carbon credit suppliers under REDD.                        ward economic spiral. Most of these         planted forests and farm woodlots would
                                                                jobs would be in rural areas, where they    improve carbon sequestration and stor-
  Source: Eliasch, 2008.
                                                                would help raise living standards.          age. Improved fuel management could




Unasylva 233, Vol. 60, 2009
                                                                10




reduce the incidence and severity of                                                        ILO. 2001. Globalization and sustainability:
forest fires, further helping to reduce                                                       the forest and wood industries on the move.
carbon emissions.                                                                             Geneva, Switzerland, International Labour
  Employment in forestry activities can                Bibliography                           Organization.
provide a much-needed “quick-fix”. By                                                       ILO. 2009. Global employment trends
rebuilding the natural resource base and   Eliasch, J. 2008. Climate change: financing        update, May 2009. Geneva, Switzerland.
enhancing the supply of goods and ser-       global forests – Eliasch Review. Kew,            Available at: www.ilo.org/wcmsp5/groups/
vices, the initial investments will also     UK, Government of the United Kingdom.            public/---dgreports/---dcomm/documents/
pave the way for long-term employment.       Available at: www.occ.gov.uk/activities/         publication/wcms_106504.pdf
A number of countries have already           eliasch.htm                                    IUCN. 2006. Sustainable financing of protected
included forestry as an important compo-   FAO. 2006. Global planted forests thematic         areas: a global review of challenges
nent of their current economic stimulus      study: results and analysis. Planted Forests     and options. Gland, Switzerland, World
packages, with particular focus on job       and Trees Working Paper FP/38. Rome.             Conservation Union (now International
creation. Stepping up of such efforts      FAO. 2008. Contribution of the forestry sector     Union for the Conservation of Nature).
by all countries could have positive         to national economies, 1990–2006, by A.          Available at: app.iucn.org/dbtw-wpd/
economic, social and environmental           Lebedys. Forest Finance Working Paper            edocs/PAG-013.pdf
impacts. New jobs will be tailored to        FSFM/ACC/08. Rome.                             Tomaselli, I. 2006. Brief study on funding
the specific conditions in each country,   FAO. 2009. State of the World’s Forests            and finance for forestry and forest-based
to make the most of local resources and      2009. Rome.                                      sector – final report. Prepared for the
institutional capacities. u                Gallagher, K.P. 2009. A global survey of           United Nations Forum on Forests (UNFF).
                                             stimulus plans. Post to online Global            Curitiba, Brazil.
                                             Crisis Debate, Macroeconomics theme.           UN. 2009. World economic situation and
                                             Available at: www.VoxEU.org/index.               prospects 2009. New York, United
                                             php?q=node/3156                                  Nations. u




                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                            11




                                                                                                                                                           ILO/E6931/M. CROzET; ILO/C1313 & C0024/ J. MAILLARD
                                                                                                                            With curtailment in the forest

  Financial meltdown                                  The perfect storm seems to be upon the world.
                                                      The forest industries are not sheltered from it;
                                                                                                                                  products sector evident
                                                                                                                               around the world, now is a
                                                                                                                                time for industry to focus
  and the future of                                   they are only too aware of it. But the current
                                                      recession creates opportunities as well as
                                                                                                                                   on efficiency, for better
                                                                                                                         positioning when the crisis ends

  the forest products                                 threats for the forest product industries.                          (wood industry workers, Egypt,
                                                                                                                                           Bolivia, Gabon)
                                                        In 2008, the World Bank forecasted that by
  industry                                            2030, global gross domestic product (GDP)
                                                      could more than double to US$73 trillion,
                                                      largely as a result of economic growth in           to restructure, focusing on efficiency across
  T. Presas                                           developing nations. Such economic growth            all aspects of operations – from raw material
                                                      would have translated into extra demand for         mobilization to product design to production –
                                                      forest products. But given the current situation,   and ensuring the right products for the market.
  Some observations on the                            that growth will most probably be delayed.          The crisis will be over one day, and when that
  challenges and opportunities                          The effects are already evident. From             happens, the most efficient players will still
  presented by the financial crisis –                 October 2008 to March 2009, demand for              be in the game.
  an industry viewpoint.                              wood and paper products declined profoundly.          Temporary unemployment is an occasion for
                                                      New housing starts and home repairs have            governments to work with industry to invest in
                                                      dropped. Paper markets are suffering from a         training and education to prepare the work-
                                                      drop in advertising and the reduced production      force for the future. The industry needs skilled
                                                      of many newspapers and magazines. With              people and knowledgeable employees.
                                                      trade slowed, less packaging is needed.               One forecast that is not likely to prove wrong
                                                        Curtailment in the forest products sector is      is the projected increase of the Earth’s popu-
                                                      evident around the world, especially in rural       lation by 1 billion every 15 years. Population
                                                      areas, where the sector is often one of the         growth has typically been one of the primary
                                                      only employers.                                     drivers of demand for forest products. Although
                                                        Cutbacks in manufacturing of all kinds of         that link is likely to be less linear than it has
                                                      products across all sectors could mean the          been in the past, with economic recovery a
                                                      return of workers to rural areas. In some parts     rapid expansion of demand for forest products
                                                      of the world the result could be increased          can be expected in the future, particularly for
                                                      attention to sustainable forest management,         tissue, packaging and solid wood.
  Teresa Presas is Managing Director of the           particularly by small forest owners. In other
  Confederation of European Paper Industries          parts of the world, however, reverse migra-         Challenge of competition for land
  (CEPI), Brussels, Belgium, and President of
  the International Council of Forest and Paper       tion could result in increased smallholder          As food demand grows, more land is being
  Associations (ICFPA).                               agriculture on forest land.                         turned over to agriculture. This trend is inten-
                                                                                                          sified by the increasing demand for agricul-
  From a presentation to the special event “Impacts   A time for change                                   tural land to produce energy crops (such as
  of Global Economic Turbulence on the Forest         As dramatic as the current situation may            corn or sugar cane for ethanol, or soybean
  Sector” at the nineteenth session of the FAO        sound, this is also the moment for industry         for biodiesel), often driven by government
  Committee on Forestry, Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                         12




policies to increase the supply of renewable        and an existing use of biomass-based energy       challenging time ahead. They must develop
energy to mitigate climate change and ensure        as some of the sector’s major assets.             policies that not only create jobs and stimulate
energy supplies.                                                                                      economic growth, but also reduce carbon
  Competition between food demand and               Climate change concerns                           emissions and achieve energy independence.
energy demand puts increasing pressure              Actions to minimize the effects of climate        In many countries, the huge plans announced
on land use. In many regions forest land is         change are being implemented in an uneven         to address the economic situation will provide
also suitable for agriculture or energy crops.      way around the world. Companies operating in      the forest sector with great opportunities. The
In New Zealand, for example, expansion of           countries with strong climate change policies     Republic of Korea has announced a Green
agriculture has resulted in a net decrease in       (e.g. in the European Union) are subject to       New Deal plan to invest US$38 billion over
forest cover over the past three years, revers-     extra taxation and thus disadvantaged from        the next four years to create almost 1 million
ing the previously established trend of steady      a cost perspective. There is also a risk that     jobs. Japan has plans to expand its green busi-
increase in forest land.                            some countries or regions may attempt to          ness sector to US$1 trillion by 2020, creating
  Competition for land may provide strong           counterbalance this disadvantage with pro-        800 000 new jobs. China has allocated around
incentives to increase productivity on the exist-   tectionist trade measures.                        a third of its US$580 billion recovery plan to
ing land base. The comparative advantage in           It is imperative that the successor to the      green measures. The Canadian Government
wood production is already shifting back to         Kyoto Protocol be transparent and equitable       is investing US$170 million to build up green
regions where land is abundant or relatively        at the global level to ensure that companies      innovation and green products. Apart from the
unattractive for other uses, such as large          operating in each of the major trading areas      Canadian example not all of these investments
South American countries (e.g. Chile) and           are subject to the same rules.                    are in forests, but many can be.
northern boreal forest regions.                       There is a risk that the current economic         Investments, environmental values, public
                                                    situation could slow down the pace of efforts     behaviour, new business opportunities – all
Opportunities in bioenergy                          to regulate climate change. Public priority       these will help society survive today’s perfect
Climate change and energy security priorities       has shifted to the economy, and short-term        storm. The forest industries are in a better posi-
will continue to drive innovation in the forest     risks to economic well-being and employ-          tion than most. The sector already focuses on
products sector as industries seek to increase      ment may not be tolerated. A global climate       the sustainability dimension and on enabling
the use of bioenergy in production processes        change agreement rests on financing, as does      climate change mitigation. The economics
and to find other ways of reducing energy con-      reversing deforestation and forest degrada-       of sustainability as a key asset of the sector
sumption and CO2 emissions. Governments             tion. Under today’s conditions, the billions of   must be proved at a large scale as reliance
around the world are putting incentives in          dollars needed for these are competing with       on renewable energy increases and carbon
place to expand bioenergy production, explor-       national recovery plans.                          neutrality becomes more imperative.
ing ways to make better use of forest waste,          Growing public consciousness of climate           It is likely that the global recession will alter
to mobilize more wood in a sustainable way          change could have a positive impact on            the structure of the global forest products
and in some cases to develop direct forest-         demand for forest products, as their low life-    industry and bring about different business
to-fuel bioenergy products (whether through         time carbon footprint relative to alternative     models. Now is the time to prepare for these
fuelwood or biomass plantations or through          materials becomes more widely recognized.         changes and to undertake the reforms that
biorefineries to create ethanol from cellulose).    Public recognition is needed of the fact that     are needed, at both the business and policy
The promise of cellulosic ethanol with its high     harvesting trees does not add to CO2 emis-        levels.
fuel efficiency has yet to be realized in a com-    sions – that the carbon remains stored in
mercial setting, but governments and industry       harvested wood products. Increasingly, sus-
will continue to invest in the development of       tainable forest management certification is
the needed technology.                              seen by buyers as a minimum requirement
  This is a huge opportunity for the forest         to ensure that products have been produced
products sector, provided there is enough           sustainably. Forest land may become more
access to raw material for different uses –         valued for its environmental services such
and provided the sector is able to drive the        as biodiversity and carbon storage, and as
process and not leave it to the energy or           a source of renewable fuel.
chemical companies. The sector is in a good
position to take the lead, having knowledge         New impetus for sustainability
of the material, the infrastructure to move         The global recession might provide an oppor-
around large volumes of wood, a tradition of        tunity to reinforce the concept of sustain-
sourcing from a multitude of small suppliers        ability in the economy. World leaders have a




                                                                                                                                    Unasylva 233, Vol. 60, 2009
                                                                             13




             Crisis in the wood products industry and markets:
                      perspectives from North America
                                                                        R. Taylor




  The collapse of the housing market

                                                          T
                                                                  he recent collapse of the hous-
  and the economy has hit the North                               ing and wood products markets             Evolution of a crisis
  American forestry sector hard,                                  in the United States of America
  but industry, forest owners and                         was the outcome of years of easy credit
                                                                                                       Weak demand drives housing supply
  governments have options for                            (subprime mortgages), lack of lending
                                                                                                               and prices lower
  helping the sector gain strength                        discipline (greed), underqualification of




                                                                                                                      ➡
  from the crisis.                                        home buyers for loans and overbuilding
                                                                                                       Building product demand and trade
                                                          of homes, all of which led to a credit
                                                                                                                    collapse
                                                          crunch (Figure 1). The net result was




                                                                                                                      ➡
                                                          a collapse of finance and the economy
                                                                                                         Building product prices collapse
                                                          in the United States, which eventually




                                                                                                                      ➡
                                                          transformed into a global collapse.
                                                                                                      The supply chain reduces its purchases
                                                            Consequences for the forest and wood




                                                                                                                      ➡
                                                          products sector in North America have
                                                                                                          Employment and wages erode
                                                          included industry cutbacks, unem-



                                                                                                                      ➡ ➡
                                                          ployment, drops in production, trade
                                                                                                           GDP and the economy slow
                                                          slowdowns and loss of consumer con-
                                                          fidence. This article traces the impacts
                                                                                                         End result: mill curtailment and
                                                          (summarized in the Box) and identifies
                                                                                                                     job losses
                                                          some initiatives and opportunities for
                                                          enabling the sector to survive the crisis
                                                          and emerge stronger.

                                Collapse in the United
                                States housing market
                              and construction sector
                                  has led to decreased
                                 production, cutbacks
                                   and unemployment
                                 in the wood products
                              industry (homebuilders,
                                  Seattle, Washington,
                                         United States)




  Russell Taylor is President of the International
  Wood Markets Group, Inc., Vancouver, British
                                                                                                                                               WIKIMEDIA COMMONS/J. MABEL




  Columbia, Canada.


  This article was developed from a presentation at
  the special event “Impacts of Global Economic
  Turbulence on the Forest Sector” at the nineteenth
  session of the FAO Committee on Forestry,
  Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                   14




1
Collapse of the housing market


                  After overbuilding,
             housing starts collapsed     Monthly                                                                                        Unsold homes
                                          housing starts                                                                               (month’s supply)
                                          210                                                                                                           14

                                                           Single family housing starts
                                          180              Single family unsold new homes                                                               12


                                          150                                                                                                           10


                                          120                                                                                                           8


                                            90                                                                                                          6


                                            60                                                                                                          4


                                            30                                                                                                          2


                                             0                                                                                                          0
                                                    2000      2001       2002       2003       2004       2005       2006       2007        2008

                                          Source: United States Census Bureau, 2009.

                                                         Subprime mortgages created too many unqualified buyers.



            Home prices became too
             high relative to owners’      Income and price set to
                         ability to pay    index of 100 in 1990
                                            240

                                                            Existing home price
                                            220             New home price
                                                            Median family income
                                            200


                                            180


                                            160


                                            140


                                            120


                                            100
                                                  1990      1992       1994      1996       1998      2000       2002       2004       2006      2008
                                                                                                                                               9 months


                                          Source: National Association of Home Builders, 2009a; National Association of Realtors, 2009.




                                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                       15




Housing prices dropped;
    rate of price changes     Case Shiller Home Price Index (existing homes)
peaked much earlier than      (% change, year over year)
           housing starts
                               0.20


                               0.15


                               0.10

                               0.05


                                  0

                              -0.05


                              -0.10

                              -0.15


                              -0.20
                                        2000         2001      2002     2003         2004       2005   2006     2007        2008
                                                                                    Quarter


                              Source: Standard & Poor’s Financial Services, 2009.




  Housing starts in North
 America plunge; Europe       Total housing starts
                              (1 000 units)
          also in trouble
                              2 400


                              2 200

                              2 000

                              1 800


                              1 600

                              1 400

                              1 200


                              1 000

                                                     Europe
                                800
                                                     North America

                                600
                                       1998    1999     2000    2001    2002 2003        2004    2005 2006    2007   2008    2009


                              Source: Canada Mortgage and Housing Corporation, 2009; Euroconstruct, 2009; National Association
                              of Home Builders, 2009a.




Unasylva 233, Vol. 60, 2009
                                                                       16




CRISIS IMPACTS                                    poor financial results from the reces-          ing will again tumble after stabilizing
Housing and the economy                           sion (Table). The Conference Board of           in the first months of 2009.
The collapse of the United States housing         Canada (2009) predicts that the forest            In March 2009, consumer confidence
market has had the following impacts.             products industry in Canada will lose           among United States consumers was
  •	Deteriorating	economy. Gross do-              another US$675 million to US$1 billion          near a 28-year low, reflecting mount-
    mestic product (GDP) dropped 3.8              dollars in 2009.                                ing job losses and a deepening reces-
    percent in the fourth quarter of 2008,          Canadian exports are down dramati-            sion. Builder confidence in the market
    reaching its lowest level since 1982.         cally, as the United States is its major        for newly built single-family homes
    Housing directly contributed -0.85            trading partner in forest products.             remained just above its all-time low as
    percent to GDP in that quarter.                                                               economic woes continued to take their
  •	Declining	 house	 prices. Existing            Labour market: workers hit hard                 toll on potential buyers (National Asso-
    homes for sale had a median sale              In the United States, from January 2006         ciation of Home Builders, 2009b). The
    price of US$170 300, a 14.8 percent           to February 2009, job losses in wood pro-       index held steady at a reading of 9 in
    decline from January 2008, and the            ducts manufacturing totalled 126 000 – or       March, marking the fifth consecutive
    lowest since March 2003.                      22 percent of the total industry employ-        month of single-digit readings; the low
  •	Improving	 housing	 affordability	            ment (United States Bureau of Labor             was 8.5 in December 2008.
    index. For first-time buyers, afford-         Statistics, 2009). The job market for non-
    ability has improved substantially.           farm workers continued to worsen after          ISSUES, OPTIONS AND
    As housing prices fall, mortgage              the United States economy lost 651 000          OPPORTUNITIES
    rates remain at near all-time lows,           jobs in February 2009 alone. More than          It is clear that the United States economy,
    and the United States Government’s            600 000 workers filed claims for jobless        housing sector and forest industry are in
    stimulus package features a first-            benefits in February 2009, the worst per-       trouble. The situation is bad, and it will
    time home buyer tax credit. Nation-           formance since 1982. The unemployment           probably get worse. However, a number
    wide housing affordability surged at          rate jumped to a 25-year high of 8.1 percent    of circumstances and initiatives could
    year-end 2008 to its highest level in         and could be headed to 10 percent before        create opportunities in the forest and
    at least five years (National Associa-        a correction occurs (Figure 3).                 wood products sector.
    tion of Home Builders, 2009a).                  In the state of Arkansas, employment in
                                                  the timber industry has fallen to 32 000        Short-term options for industry
Wood products industry                            in 2008 as compared with 44 000 ten             Options for industry are limited in the
In the United States, production cut-             years ago, a decline of 25 percent. In          short term. The inevitable choice is to
backs and consumption declines have               Montana, there were 2 726 production            reduce timber harvests and let the wood
been significant in nearly every segment          workers employed at sawmills in the             grow. This is a time for cutting output,
of the wood products industry through             fourth quarter of 2008, down 20 percent         shutting down excess capacity, cutting
mid-2009 (Figure 2):                              from 2005, and wages were down 17               costs, conserving cash, reducing lead
   • softwood timber demand is down               percent over the same period.                   times and shrinking inventory.
     50 percent since 2005;                         In Canada, forest industry in the prov-         New export markets could be explored,
   • hardwood timber is down more than            ince of British Columbia has had some           such as the European Union, Brazil,
     35 percent;                                  20 000 layoffs since its peak in 2004, los-     China, India, the Russian Federation
   • structural panels are down 37 percent        ing 20 percent of its total employees.          and Near Eastern countries. However,
     since 2005;                                                                                  as they are also in a downturn, the key
   • engineered wood products are down            Consumers and builders                          to success will be to take advantage of
     30 percent.                                  The biggest drop in wealth on record has        favourable currency exchange rates and
  In Canada, the forest, paper and pack-          shaken Americans as home and stock              shipping rates where possible.
aging industries are seeing extremely             values plunge, raising the risk that spend-       The time is right for diversifying into
                                                                                                  new products. The recession provides
Net earnings of forest, paper and packaging industries                                            an opportunity to explore options for
Year            Western Canada              Eastern Canada                     Canada             wood-based biofuels, other “green” pro-
         (million Can$) (million US$) (million Can$) (million US$) (million Can$) (million US$)   ducts, niche or specialty products and
2007           -386            -350        -106           -95           -492            -445      non-housing wood products.
2008           -641            -580        -954          -870         -1 595         -1 450
                                                                                                    Industries would do well to reposi-
Source: PricewaterhouseCoopers, 2009.
                                                                                                  tion themselves in the supply chain,




                                                                                                                           Unasylva 233, Vol. 60, 2009
                                                                                                                           17




                                                                                                                                                  Options for industry are
                                                                                                                                                  limited in the short term –
                                                                                                                                                  the inevitable choice is to
                                                                                                                                                  reduce timber harvests
                                                                                                                                                  and let the wood grow
                                                                                                                                                  (Pinus strobus forest,
BUGWOOD.ORG/1479027/S. KATOVICH, UNITED STATES FOREST SERVICE




                                                                                                                                                  United States)




                                                      shortening their distance from the end        Government initiatives                          ing code, which previously limited the
                                                      of the chain. They would be advised           Canada. The Bank of Canada (Canada’s            construction of residential wood struc-
                                                      to strengthen their relationships with        central bank) has cut its interest rate to      tures to four storeys, will now permit
                                                      core customers.                               0.5 percent, the lowest in history. This is     them to rise to six storeys, encouraging
                                                        In brief, industries can take advantage     down 4 percent since December 2007.             more wood consumption.
                                                      of the slowdown to re-engineer their          The Job Opportunities Program, a US$24            The 2009–2010 budget of the Province
                                                      markets, their products, their business       million initiative funded by the Govern-        of New Brunswick, published in March
                                                      and their staffing.                           ment of Canada and the Province of              2009, proposes silviculture projects in
                                                                                                    British Columbia, will help to support          addition to tax cuts, investment credits
                                                      Forest owner options                          British Columbia’s forest workers and           and energy rebates (Province of New
                                                      Forest owners could take the opportunity      their families to reduce the impact of          Brunswick, 2009).
                                                      to invest in long-term productivity and       current layoffs.                                  The Canadian Government is funding
                                                      sustainability of forest lands. As asset        The Federal Home Renovation Pro-              silviculture and research and develop-
                                                      prices reach bottom, some good values         gram provides a tax credit of 10 percent        ment programmes and wood products
                                                      are expected in the acquisition of forest     on approved projects.                           market development initiatives. And
                                                      land. Now would be a good time to invest        Changes to British Columbia’s build-          further initiatives are expected.
                                                      in silviculture and forest rehabilitation.
                                                        Companies must correctly position              British Columbia’s
                                                                                                              building code
                                                      themselves to take advantage of new                   has limited the
                                                      markets, for example in biofuels, green              construction of
                                                      building and climate change mitiga-                 residential wood
                                                                                                         structures to four
                                                      tion. Forest certification is a form of               storeys but will
                                                      long-term market positioning. Forest             now permit them to
                                                      owners could take advantage of growing            rise to six storeys,
                                                                                                        encouraging more
                                                      opportunities in carbon trading.                 wood consumption
                                                        Forest owners should be selective in          (wood construction,
                                                      their acquisitions or investments, and            Vancouver, British
                                                                                                       Columbia, Canada)
                                                      time them carefully.
                                                        In these uncertain times, it is important
                                                      to guard against illegal logging in poor
                                                                                                                                                                                           G. DUPRIEz




                                                      business cycles, as there will be more
                                                      temptation to engage in illicit trade.




 Unasylva 233, Vol. 60, 2009
                                                                        18




2
Impact of drop in housing demand on wood products sector


             Sawnwood consumption
              collapses by 50 percent         Million m3                                                                                      Million board feet
                  in the United States;      128                                                                                                         80 000
                    eroding in Canada
                                                            Canada
                                             112                                                                                                         70 000
                                                            United States

                                              96                                                                                                         60 000


                                              80                                                                                                         50 000


                                              64                                                                                                         40 000


                                              48                                                                                                         30 000


                                              32                                                                                                         20 000


                                              16                                                                                                         10 000


                                                0                                                                                                        0
                                                    1990    1992     1994     1996      1998      2000    2002     2004     2006       2008       2010




                                                Source: Council of Forest Industries, 2009; Western Wood Products Association, 2009.
                                                Forecast for 2009 and 2010, International Wood Markets Group, 2009.




               Oriented strand board
             (OSB) production down,           Million m3                                                                                      Million square feet
                especially in Canada          23                                                                                                         28 000

                                                            Canada
                                              20            United States                                                                                24 000


                                              16                                                                                                          20 000


                                              13                                                                                                         16 000


                                              10                                                                                                         12 000


                                               7                                                                                                             8 000


                                               3                                                                                                             4 000


                                               0                                                                                                             0
                                                    1990    1992       1994      1996      1998      2000        2002     2004         2006       2008




                                                Source: International Wood Markets Group, 2009.




                                                                                                                                          Unasylva 233, Vol. 60, 2009
                                                                            19




        Global sawnwood
       consumption down          Million m3 – net                                                                    Billion board feet – net
       and expected to fall      350                                                                                                       148
            further in 2009

                                 300                                                                                                       127


                                 250                                                                                                       106


                                 200                                                                                                       85
                Rest of world
                        Japan
                                 150                                                                                                       63
       Russian Federation/
           Commonwealth
     of Independent States
                  Europe         100                                                                                                       42
                      Canada
                United States     50                                                                                                       21


                                    0                                                                                                      0
                                         1991     1993     1995      1997       1999     2001      2003       2005       2007       2009

                                  Source: International Wood Markets Group, 2009; FAO, 2009.


                                          Early reports indicate a bigger decline for Europe in 2009 than shown.



           More slowdowns
          in sawn softwood      1 000 m3 – net                                                                    Billion board feet – nominal
           exports between                                                                                                                 3 000
                                4 800
              North America
                and Europe                            Europe to North America
                                                      North America to Europe
                                4 000                                                                                                      2 500



                                3 200                                                                                                      2 000



                                2 400                                                                                                      1 500



                                1 600                                                                                                      1 000



                                  800                                                                                                      500



                                     0                                                                                                     0
                                         1991       1993     1995      1997       1999      2001       2003       2005       2007

                                  Source: USDA Foreign Agricultural Service, 2009; International Wood Markets Group, 2009.


                                                 Weak demand and low prices are problematic for exporters.




Unasylva 233, Vol. 60, 2009
                                                                     20




3
Impact on the labour market


               Soaring unemployment
                  in the United States:        % unemployment
                heading for 10 percent
                                                9



                                                8



                                                7



                                                6



                                                5



                                                4



                                                3
                                                1999      2000      2001      2002      2003      2004    2005   2006    2007    2008       2009



                                            Source: United States Bureau of Labor Statistics, 2009.




United	States.	The President’s US$275       government agreed to buy mortgages and                    can be put to work to establish plantations
billion Homeowner Affordability and         other assets from financial institutions.                 or improve forests, increasing their value.
Stability Plan aims to support between      It has encouraged banks to lend among                     Labour is the biggest cost component.
7 million and 9 million existing home-      themselves again, but it has done little to               Initiatives that involve improvements to
owners who might otherwise be at risk       unfreeze consumer credit markets or to                    forest land can range from silviculture to
of foreclosure. Slowing the rate of fore-   resolve how to renegotiate the estimated                  salvage to reclamation.
closures is intended to stabilize hous-     US$2 trillion of toxic mortgages that                       The United States industry can position
ing prices, which in turn should benefit    need to be discounted or written off.                     itself to take advantage of the coming
all homeowners, encourage qualified           The United States economic stimulus                     economic stimulus, including exten-
buyers to enter the market and give         package includes expanded tax credits                     sion of unemployment benefits and
homebuilders enough confidence to           for energy-efficient home improve-                        green energy investments, by expand-
buy upward. The plan has three main         ments. The idea is to put more money                      ing investment in forests with worker
components:                                 in consumers’ pockets by providing                        programmes.
   • supporting homeowners who are cur-     financial incentives for homeowners to                      Funded programmes could grow the
     rent with their payments but cannot    “go green”. However, this part of the                     market by increasing wood consumption
     refinance;                             programme is not expected to have a                       to displace competing materials.
   • supporting “at-risk” homeowners        great impact, since it is not yet a priority                The obvious short-term benefit is in
     who are current on their payments      in the eyes of consumers.                                 putting people back to work. The obvious
     but are at imminent risk of default;     Here, too, more initiatives are expected.               long-term benefits include raising the
   • boosting credit availability for all                                                             productivity of forest land, sequestering
     mortgages by allocating an addi-       Government initiatives and forests                        carbon, maintaining wildlife, clean air,
     tional US$200 billion.                 Forestry is especially well placed to con-                clean water and other environmental
  The Troubled Asset Relief Program is      tribute to economic renewal and could cre-                benefits, while improving economic
a bail-out programme through which the      ate many, many jobs. Unemployed workers                   well being.




                                                                                                                                Unasylva 233, Vol. 60, 2009
                                                                              21




  Non-farm payrolls in the
    United States plunge             Cumulative worker
                                     net change                                              Month
                                     (1 000)
                                           1/2008      3/2008            5/2008        7/2008        9/2008     11/2008     1/2009
                                         0

                                     -500


                                   -1 000

                                   -1 500

                                   -2 000


                                   -2 500

                                   -3 000


                                   -3 500

                                   -4 000

                                    -4 500



                                   Source: United States Bureau of Labor Statistics, 2009.




    A fundamental question, however,                   • in making the most of the unemployed,                  Columbia, Canada. Available at: www.cofi.
  is what is the real cost of government                 through work programmes;                               org/library_and_resources/order_form.htm
  funded or make-work programmes for                   • in providing a solution for climate                  Euroconstruct. 2009. Prospects for the
  forestry. It is necessary to ascertain                 change and reducing greenhouse gas                     European construction markets 2009–2011:
  that the social benefits outweigh the                  emissions;                                             the crisis in the European construction
  net financial costs.                                 • in opportunities for bioenergy. u                      market. Summary report. Vienna, Austria.
                                                                                                                Available at: www.euroconstruct.org/
  SUMMARY                                                                                                       publications/publications.php
  The key to a stronger United States                                                                         FAO. 2009. FAOSTAT database. Rome.
  economy is strengthening of banking                                                                           Available at: faostat.fao.org
  and credit markets, which will not occur                                                                    International Wood Markets Group.
  until housing prices stabilize. A key                            Bibliography                                 2009. Wood Markets International
  question is whether the latest stimulus                                                                       Monthly Report 2009. Available at: www.
  package (including the Homeowner                  Canada Mortgage and Housing                                 woodmarkets.com
  Affordability and Stability Plan) will              Corporation. 2009. Statistics and data.                 National Association of Home Builders.
  help bring about this stability. If it sta-         Ottawa, Canada. Available at: www.cmhc.                   2009a. NAHB/Wells Fargo Housing
  bilizes prices at an artificial level, then         ca/en/inpr/homain/stda/index.cfm                          Opportunity Index. Washington, DC, USA.
  the stability will probably not last. It          Conference Board of Canada. 2009.                           Available at: www.nahb.org/hoi
  is likely that the situation for United             Canada’s wood products industry: industrial             National Association of Home Builders.
  States housing and wood products will               outlook spring 2009. Ottawa, Canada.                      2009b. NAHB/Wells Fargo Housing
  get worse before it gets better in 2010.            Available at: www.conferenceboard.ca/                     Market Index. Washington, DC, USA.
  It is still early in North America for              documents.aspx?DID=3110                                   Available at: www.nahb.org/hmi
  a real plan. But in the meantime, the             Council of Forest Industries. 2009. Statistics            National Association of Realtors. 2009.
  forest sector has a role:                           Canada Reports. Vancouver, British                        Housing and economic indicators. Chicago,




Unasylva 233, Vol. 60, 2009
                                                                   22




  Illinois, USA. Available at: www.realtor.     Available at: www.gnb.ca/0160/budget/           Washington, DC, USA. Available at: www.
  org/research/research/ecoindicator            buddoc2009/index-e.asp                          census.gov/const/www/newresconstindex.
PricewaterhouseCoopers. 2009. Global          Standard & Poor’s Financial Services.             html
  forest and paper industry: net earnings.      2009. S&P/Case-Shiller home price indices.    USDA Foreign Agricultural Service. 2009.
  Quarterly Summary Reports. Vancouver,         Available at: www2.standardandpoors.            Wood products. Washington, DC, USA,
  British Columbia, Canada. Available           com/portal/site/sp                              United States Department of Agriculture.
  at: www.pwc.com/CA/en/forest-paper-         United States Bureau of Labor Statistics.         Available at: www.fas.usda.gov/ffpd/
  packaging/global-net-earnings-summary.        2009. Labor force statistics from the           forest.asp
  jhtml                                         current population survey. Washington, DC,    Western Wood Products Association.
Province of New Brunswick. 2009. Budget         USA. Available at: www.bls.gov/data             2009. Lumber Track. Portland, Oregon.
  2009–2010: Leadership for a stronger        United States Census Bureau. 2009. New            Available at: www2.wwpa.org/SERVICES/
  economy – toward self-sufficiency.            residential construction (building permits,     StatisticalReports/tabid/431/Default.aspx u
  Fredericton, New Brunswick, Canada.           housing starts and housing completions).




                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                           23




           Restoring hope: the United States Forest Service’s
                   economic recovery programme
                                                          A.R. Kimbell and H. Brown




  To ease the burden of recession,

                                                       I
                                                            n 2008, the United States of America      ever, housing starts fell again, as did
  the United States of America is                           plunged into what some have called        new home sales; yet major banks such
  investing in projects that restore                        its worst economic crisis since the       as Wells Fargo recorded profits for the
  and protect forests, improve                         1930s (Elliott, 2008; Hilsenrath, Serena       first quarter of 2009. Nevertheless, even
  recreational facilities and put                      and Paletta, 2008). A financial crisis         a recovering economy will continue to
  young people to work.                                beginning in 2007 triggered a deepening        shed jobs until demand for labour catches
                                                       recession in 2008–2009 as lenders lost         up. Some economists foresee unemploy-
                                                       confidence in borrowers’ ability to repay.     ment rates climbing into the double digits
                                                       Major financial institutions tottered at the   by 2010 (Clark, 2009).
                                                       brink of ruin, and some entirely failed.         What can the United States Forest
                                                       With credit markets frozen, pillars of the     Service do to help?
                                                       United States economy such as the auto
                                                       industry struggled to survive.                 OPPORTUNITIES FOR STIMULUS
                                                         From January 2008 to January 2009,           PROJECTS
                                                       most economic indicators plummeted,            The mission of the United States Forest
                                                       from wholesale trade (down 15.4 per-           Service is to sustain the health, diversity
                                                       cent), to new construction (down 9.1           and productivity of the nation’s forests
                                                       percent), to new housing starts (down          and grasslands to meet the needs of
                                                       56.3 percent), to retail trade and food        present and future generations. The
                                                       services (down 9.7 percent) (United            agency fulfills its mission through public
                                                       States Census Bureau, 2009). Stock mar-        land management, conservation-related
                                                       kets plunged, losing up to 40 percent of       research and extension services for pri-
                                                       their value; in early 2009, the Dow Jones      vate forest landowners. All three areas
                                                       industrial average reached its lowest          hold promise for creating jobs and stimu-
                                                       level since 1997. From October 2008 to         lating local economies.
                                                       March 2009, the United States economy            The Forest Service manages a system of
                                                       lost more than 3.7 million jobs (Bureau        national forests and grasslands covering
                                                       of Labor Statistics, 2009), raising the        77 million hectares, about 8 percent of
                                                       level of unemployment to 8.5 percent,          the United States land area (Map). These
                                                       the highest since 1983. Many people            public lands are spread across 43 of
                                                       lost their homes; by December 2008,            the nation’s 56 states and territories,
                                                       almost 12 percent of United States mort-       from Alaska to Puerto Rico. With almost
                                                       gages were delinquent or in foreclosure        29 000 full-time employees, the Forest
  Abigail R. Kimbell, at the time this article was     (OECD, 2009).                                  Service already provides some of the
  written, was Chief of the United States Forest         In February 2009, hope-inducing signs        best, most dependable rural jobs in the
  Service, Washington, DC.                             of recovery appeared. Manufacturers’           United States. Many of the communities
  Hutch Brown is a Policy Analyst for the United
  States Forest Service, Washington, DC.               shipments, inventories and orders, after       most affected by the economic downturn
                                                       six consecutive monthly declines, rose         are located near national forests and
                                                       by 1.8 percent (United States Census           grasslands, and agency employees are
  This article was developed from a presentation at
  the special event “Impacts of Global Economic        Bureau, 2009); new housing starts              woven into the community fabric; they
  Turbulence on the Forest Sector” at the nineteenth   climbed by 17.2 percent and new home           know local needs, and they have the local
  session of the FAO Committee on Forestry,            sales by 8.2 percent. In March, how-           capacity to provide project planning,
  Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                                                               24




                                                                                                                                     A LEGACY OF SOCIAL SERVICE:
                                                                                                                                     THE CIVILIAN CONSERVATION
                                                                                                                                     CORPS
                                                                                                                                     The United States Forest Service has
                                                                                                                                     a long history of serving the nation by
                                                                                                                                     creating new jobs. In 1929, a financial
                                                                                                                                     crisis triggered a worldwide depression
                                                                                                                                     of staggering proportions, which lasted
                                                                                                                                     about ten years in the United States. At
                                                                                                                                     the height of the crisis, almost a quarter of
                                                                                                                                     the United States workforce was unem-
                                                                                                                                     ployed. In response, President Franklin
UNITED STATES FOREST SERVICE




                                                                                                                                     D. Roosevelt established the Emergency
                                                                                                                                     Conservation Work Act, better known as
                                                                                                                                     the Civilian Conservation Corps (CCC).
                                                                                                                                     Its purpose was to provide jobs; stimu-
                                                                                                                                     late spending; reverse deforestation,
                               Note: Green areas are national forests; orange areas are national grasslands.                         soil erosion and other forms of natural
                         United States National Forest System                                                                        resource degradation; and build roads,
                                                                                                                                     trails, campgrounds and other infrastruc-
                         training, employment, equipment and                            federal, state and local partners to forge   ture on public lands.
                         logistical support.                                            a highly effective interagency system of       From 1933 to 1942, the United States
                           Forest Service researchers work closely                      wildland fire management. In addition,       Department of Labor enrolled millions
                         with national forest managers to plan                          municipalities across the United States      of unemployed citizens for six-month
                         fuels and forest health treatments for                         manage about 28 million hectares of          terms of service in one of the most
                         landscapes beleaguered by such grow-                           urban forests. The Forest Service works      successful public works programmes
                         ing threats as invasive species, pest and                      with municipal governments nationwide        in United States history. The Forest
                         disease infestations and uncharacteristi-                      to protect and restore neighbourhood         Service administered more than half of
                         cally severe wildfires, all exacerbated by                     trees and parks.                             all CCC projects, thereby expanding
                         climate change. Researchers also moni-                           The opportunities to provide new jobs      the agency’s mission focus to include
                         tor project results and seek more effi-                        and stimulate the economy are vast. The      social service on a national scale.
                         cient and cost-effective ways to convert                       National Forest System alone has a deficit   Among other accomplishments, CCC
                         removed biomass into energy, partly to                         in deferred capital maintenance of more      planted more than 3 billion trees, built
                         offset fossil fuel use. Such research and                      than US$5.1 billion for roads, bridges,      more than 97 000 miles (156 000 km)
                         monitoring needs and activities might                          trails, campgrounds and other facilities     of road, erected more than 3 470 fire
                         translate into stimulus jobs.                                  in need of repair (USFS, 2008). Although     towers and devoted more than 4.2 mil-
                           Agency extension programmes might                            forests in the United States are generally   lion person-days to fighting wildfires
                         also contribute. From its inception in                         on a path towards sustainability (USFS,      and more than 7.1 million person-days
                         1905, the Forest Service has worked                            2004), many require treatment. A 2002        to restoring watersheds and enhancing
                         closely with states and private forest                         study, for example, found that about         wildlife habitat (Civilian Conservation
                         landowners to improve forest health                            159 million hectares nationwide were         Corps Legacy, 2009).
                         nationwide. About 57 percent of forest                         at moderate to high risk of especially         CCC ended in 1942, but the Forest
                         lands in the United States are privately                       severe wildfires (Schmidt et al., 2002).     Service later reaffirmed its commit-
                         owned, primarily by small non-industrial                       By one estimate, treatment for the at-       ment to social service through a series
                         private landowners. The agency has pro-                        risk area of the National Forest System      of legacy programmes. The agency cur-
                         vided them with financial support and                          alone (about 29 million hectares) would      rently administers the Job Corps, a train-
                         technical assistance through the states,                       cost US$12.4 billion (USFS, 2000). As        ing programme for young people from
                         each of which is responsible for regu-                         the Forest Service prepares to help the      disadvantaged backgrounds; the Youth
                         lating commercial forestry and private                         nation address the current recession, it     Conservation Corps, a summer employ-
                         forest use within its own borders. The                         can choose from a plethora of potential      ment programme for teenagers; and the
                         Forest Service has also worked with                            green investments.                           Senior Community Service Employment




                                                                                                                                                               Unasylva 233, Vol. 60, 2009
                                                                                25




                                The Civilian Conservation
                                 Corps (CCC) created jobs
                                  during the depression of
                                the 1930s: a crew going to
                               fight invasive gypsy moth,
                              attacking oak forests in the
                              northeastern United States




                                                                                                                                                     BUGWOOD.ORG/1275050/USFS ARCHIVE
  Program, a volunteer programme for                         spending, almost four times more than        percent of its ARRA funds for projects
  older citizens. All three programmes                       the US$1.15 billion in stimulus funding      in 21 states (USFS, 2009a). Projects
  involve conservation-related training                      available to the agency. The national        are of four kinds: restoring resources
  and work on or near national forests                       coordinators have prioritized the propos-    on public lands; improving recreational
  and grasslands. The agency’s legacy of                     als according to criteria ranging from       facilities, partly to promote safety and
  social service puts the Forest Service                     project readiness, to biophysical meas-      health; creating opportunities for youth;
  in an ideal position to respond to the                     ures, to local unemployment levels.          and reducing fire risk to communities
  current economic crisis.                                     It was essential to move quickly. The      while restoring ecosystems to health.
                                                             faster unemployed citizens could go
  AMERICAN RECOVERY AND                                      back to work, the greater the economic       Restoring resources
  REINVESTMENT ACT: FOREST                                   stimulus would be. However, stimu-           ARRA projects will improve a range of
  SERVICE ROLE                                               lus spending was designed to balance         resources on public lands, both natural
  In February 2009, the President of the                     urgency against the need for account-        and infrastructural. Some projects will
  United States signed the American                          ability and cost-effectiveness. Accord-      rebuild vital access roads to make them
  Recovery and Reinvestment Act (ARRA)                       ingly, the focus has been on projects        safer for forest visitors and local resi-
  into law. The act authorized US$787                        that are “shovel ready” – ready to start     dents alike, particularly in the event of an
  billion in tax adjustments and stimulus                    without the need for more planning and       emergency. Other projects are designed
  spending, including US$1.15 billion for                    consultation. Work on approved projects      to improve water quality in lakes and
  projects administered by the Forest                        has begun quickly and will usually be        streams or to restore critical fish habitat
  Service. The agency’s efforts will, in                     completed within two to three years.         and passage.
  time, put tens of thousands of unem-                         The new stimulus jobs are in the private     In Alaska, for example, the commu-
  ployed Americans back to work. The                         sector. Although they are not designed to    nity of Hoonah depends on a crum-
  overarching purpose mirrors that of the                    be permanent, they might open doors to       bling forest road for its lifeline to vital
  authorizing legislation: to create as many                 a career in conservation while providing     forest resources in the Tongass National
  jobs as quickly as possible and get money                  workers with new and valuable skills         Forest. Culverts installed long before the
  flowing through the economy again.                         and opportunities that they might oth-       advent of modern design often plug up
    Local managers from all three branches                   erwise not have had. Projects are wide       during heavy rains, threatening to wash
  of the Forest Service (National Forest                     ranging, from cleaning up abandoned          out whole sections of road. The Forest
  System; Research and Development;                          minelands in remote areas to restoring       Service is spending US$1.45 million
  State and Private Forestry) have submit-                   forests in rural areas or in major metro-    in ARRA funds to resurface 18 miles
  ted more than 2 500 project proposals to                   politan centres.                             (29 km) of road, eliminate another 20
  the agency’s economic recovery coor-                         Within five weeks after the President      miles (32 km) of unneeded road and
  dinators. The proposals are collectively                   signed the authorizing legislation, the      remove or replace 120 deficient culverts.
  worth about US$4 billion in stimulus                       Forest Service had already disbursed 10      This work will help improve stream




Unasylva 233, Vol. 60, 2009
                                                                                                    26




                                                                                                         A rebuilt culvert       use, thereby stimulating local businesses
                                                                                                         in the Umpqua           across eastern Kentucky.
                                                                                                         National Forest,
                                                                                                         Oregon: many              Some ARRA projects are designed to
                                                                                                         Forest Service          make recreational facilities “greener”,
                                                                                                         projects funded         for example by retrofitting buildings with
                                                                                                         under the American
                                                                                                         Recovery and            new energy-efficient windows. A project
                                                                                                         Reinvestment            in Alabama will upgrade a research
                                                                                                         Act are designed        laboratory to meet standards set by the
                                                                                                         to improve water
UMPQUA NATIONAL FOREST/L. BERNSTEIN




                                                                                                         quality and restore     United States Green Building Council
                                                                                                         critical fish habitat   (under a certification programme called
                                                                                                         and passage             Leadership in Energy and Environmental
                                                                                                                                 Design for Existing Buildings). Such
                                                                                                                                 upgrades include digital controls as well
                                                                                                                                 as new heating and air conditioning sys-
                                                                                                                                 tems and new measures for saving water
                                                                                                                                 and managing waste.

                               quality and reopen ten blocked fish pas-       In January 2009, for example, an ice               Creating opportunities for youth
                               sages so that salmon will regain access      storm ravaged eastern Kentucky, shutting             California is one of the states hardest
                               to many miles of upstream spawning           down much of the Daniel Boone National               hit by recession; its unemployment rate
                               habitat.                                     Forest. This area is heavily dependent on            in February 2009 already exceeded 10
                                 Most ARRA projects involve construc-       tourism as a driver of the local economy,            percent (Lifsher, 2009). Recessions tend
                               tion; these tend to create more jobs at      especially since the failure of a local              to hit young people especially hard by
                               higher wages than other project types        sawmill and a car parts manufacturer.                causing elimination of entry-level jobs.
                               (USFS, 2009b, 2009c). Such projects          The Forest Service invested more than                Fortunately, California has a network of
                               provide work for skilled equipment           half a million dollars of ARRA funds                 programmes with roots in the old CCC,
                               operators and construction workers in        to repair storm damage throughout the                including AmeriCorps, the California
                               hard-hit rural areas while sustaining a      forest. Using local labour, the agency is            Conservation Corps, the Los Angeles
                               critical sector of the economy.              clearing forest roads, removing hazard               Conservation Corps and the Urban Youth
                                                                            trees and making trails passable again.              Conservation Corps.
                               Improving recreational facilities            These jobs are putting people back to                  National forests cover 20 percent of
                               Outdoor recreation is tremendously           work at a variety of skill levels. By mak-           California’s land area, with all kinds
                               popular in the United States. Each year,     ing it possible to reopen the national               of job opportunities: trails in need of
                               the national forests and grasslands alone    forest in time for summer 2009, the                  work, recreational areas in need of
                               record about 200 million visits. Espe-       Forest Service revitalized recreational              repair, facilities in need of maintenance,
                               cially when times are hard, a week or
                               two spent hiking, fishing, camping or                  Fishing in the
                                                                               Apache-Sitgreaves
                               birdwatching in a national forest can               National Forest,
                               be an attractive low-cost alternative to         Arizona: recovery
                               an expensive resort holiday. However,             funds are used to
                                                                                    revitalize forest
                               visitors rightly expect good access and         recreation, offering
                                                                                                                                                                                 APACHE-SITGREAVES NATIONAL FOREST/B. DYKSTRA




                               safe facilities, and weather alone can                  inexpensive
                               confound their expectations.                       opportunities for
                                                                                 relaxation in hard
                                 In the heavily forested eastern United     times and stimulating
                               States, winter often brings devastating            local businesses
                               ice storms. Downed branches and trees
                               can block roads into the national forests,
                               making trails, campgrounds and other
                               recreational facilities not only inacces-
                               sible, but also unusable until the damage
                               is repaired.




                                                                                                                                                          Unasylva 233, Vol. 60, 2009
                                                                                               27




                                                           Young people
                                                        restoring habitat
                                                         for endangered
                                                      species, Colorado:
                                                      youth employment
                                                       programmes help
                                                           young people
                                                         learn new skills
                                                      while gaining work
                                                           experience in




                                                                                                                                                                      ARAPAHO-ROOSEVELT NATIONAL FOREST/W.R. MAGWIRE
                                                           conservation




                           hazardous fuels in need of reduction,
                           etc. The Forest Service has released
                           US$3.75 million in ARRA funding for
                           such projects across the state, employ-
                           ing hundreds of young people through
                           the existing network of youth corps. By
                           restoring forests, rebuilding recreational
                           facilities and making communities safer
                           from wildfire, young people are learning         current conditions, destruction by fire          Such projects create critical jobs in
                           new skills while gaining experience and          could reach 5 million hectares per             rural areas, and they are highly cost effec-
                           insight into conservation.                       year.                                          tive. Economic studies have shown that
                                                                              The Forest Service is using ARRA funds       ecological restoration generates more
                           Reducing fire risk and restoring forest          to address the threat by reducing excess       jobs than any other project type (USFS,
                           health                                           fuels and restoring forest health. In the      2009c). Moreover, the biomass removed
                           Since the 1980s, fire seasons in the             Humboldt National Forest in Nevada, for        can be used for bioenergy, creating still
                           United States have gotten steadily worse.        example, the agency has spent US$1.3           more jobs. In Nevada, for example, a
                           Some fires now reach catastrophic pro-           million to treat about 3 120 ha of forest      local mill used removed biomass to
                           portions unheard of a generation ago,            and rangeland, partly to reduce the risk       manufacture wood pellets, helping to
                           spreading across 200 000 ha or more              of catastrophic fire. Forest health treat-     mitigate climate change by offsetting
                           and costing billions of dollars in dam-          ments in Nevada’s pine and mixed-con-          fossil fuel use. Funds no longer needed
                           age to homes and communities. In 2004            ifer ecosystems entail removing excess         for rebuilding burnt homes and com-
                           and 2005, more than 3 million hectares           vegetation, incidentally helping forests       munity structures can instead be used
                           burned nationwide; in 2006 and 2007,             adapt to climate change in a region where      to help the economy recover.
                           more than 3.5 million hectares. Under            water is already in short supply.
                                                                                                                           RESTORING HOPE
                                                                                                  Prescribed burning       Projects like these – rebuilding infra-
                                                                                                  to sustain open
                                                                                                  ponderosa pine
                                                                                                                           structure, putting young people to work,
                                                                                                  woodland, Montana:       restoring forests to health, and protecting
                                                                                                  recovery funds are       homes and communities – offer hope for
                                                                                                  used to help diminish
                                                                                                  wildfire risk by
                                                                                                                           the future. Of course, the Forest Service
                                                                                                  reducing excess fuels    has only just begun; project implemen-
                                                                                                  and to restore forest    tation is still under way. The American
                                                                                                  health while creating
                                                                                                  critical jobs in rural
                                                                                                                           Recovery and Reinvestment Act was
CUSTER NATIONAL FOREST/D. SASSE




                                                                                                  areas                    designed as a one-time shot in the arm
                                                                                                                           for an ailing economy. No one knows
                                                                                                                           for sure how effective it will be. Moreo-
                                                                                                                           ver, ARRA projects will barely dent the
                                                                                                                           multi-billion-dollar funding backlogs for
                                                                                                                           fuels and forest health treatments as well
                                                                                                                           as roadwork and facilities construction




Unasylva 233, Vol. 60, 2009
                                                                 28




and maintenance in the national forests                                                       United States Census Bureau. 2009.
and grasslands.                                                                                 Manufacturing, mining, and construction
  Yet the signs of success are mounting:                                                        statistics: New residential construction
by putting people back to work, helping                  Bibliography                           (building permits, housing starts, and
families bridge hard times and getting                                                          housing completions). Washington,
money flowing through the economy           Bureau of Labor Statistics. 2009. Economy           DC, USA, United States Department
again, the Forest Service is helping to       at a glance. Washington, DC, USA, United          of Commerce. Internet document,
ease the burden of recession in tangible      States Department of Labor. Internet              available at: www.census.gov/const/www/
ways. Perhaps even more important are         document, available at: www.bls.gov/eag/          newresconstindex_excel.html
the intangible ways in which the agency       eag.us.htm                                      USFS. 2000. Protecting people and sustaining
is helping. Business leaders understand     Civilian Conservation Corps Legacy. 2009.           resources in fire-adapted ecosystems:
that the state of the national economy        CCC brief history. Internet document,             a cohesive strategy. The Forest Service
greatly depends on the national state of      available at: www.ccclegacy.org/CCC_              management response to the General
mind (Hill, 2009). Fear can grind eco-        brief_history.htm                                 Accounting Office Report GAO/RCED-99-
nomic activity to a halt when lenders are   Clark, A. 2009. Bleak outlook for U.S.              65. Administrative report. Washington,
afraid to extend credit and consumers         workers as jobless rate hits 26-year              DC, USA, United States Forest Service
are afraid to spend money. At a time of       high. The Guardian, 4 April. Available            (USFS).
widespread caution and doubt, ARRA is         at: www.guardian.co.uk/business/2009/           USFS. 2004. National report on sustainable
designed to restore hope and instil con-      apr/04/us-unemployment-rate-soars                 forests – 2003. FS-766. Washington, DC,
fidence. Every project puts workers on      Elliott, L. 2008. A financial crisis unmatched      USA.
the ground for local people to see; every     since the Great Depression, analysts            USFS. 2008. Financial statement, required
project leaves lasting results for people     say. The Guardian, 18 March. Available            supplementary information: deferred
to talk about after the workers are gone.     at: www.guardian.co.uk/business/2008/             maintenance. Administrative report.
By modelling a spirit of optimism and         mar/18/creditcrunch.marketturmoil1                Washington, DC, USA.
enterprise, the Forest Service is subtly    Hill, S. Jr. 2009. Let’s fix our economic state   USFS. 2009a. Forest Service ARRA
setting the stage for recovery, inspiring     of mind. Manufacturing Business Technology,       projects by states. Administrative report.
a “can-do” attitude that, in time, can        1 March. Available at: www.mbtmag.com/            Washington, DC, USA. Available at:
bring renewed prosperity.                     article/CA6650035.html                            fs.usda.gov/Internet/FSE_DOCUMENTS/
  The United States Forest Service is       Hilsenrath, J., Serena, N.G. & Paletta, D.          stelprdb5053328.pdf
investing in the future. People still         2008. Worst crisis since ’30s, with no end      USFS. 2009b. Forest Service activities and
marvel over the sound stone structures        yet in sight. The Wall Street Journal, 18         the American Recovery and Reinvestment
built by the old CCC, many of which           September. Available at: online.wsj.com/          Act of 2009: estimating measures of
have become historic landmarks. The           article/SB122169431617549947.html                 economic distress. Administrative report.
many stimulus projects carried out under    Lifsher, M. 2009. California unemployment           Washington, DC, USA.
ARRA, like those of CCC, will provide         rate reaches 10.1%. Los Angeles Times,          USFS. 2009c. Forest Service activities and
lasting benefits to people. Ultimately,       28 February. Available at: www.latimes.           the American Recovery and Reinvestment
they will help the Forest Service ful-        com/business/la-fi-california-jobs28-             Act of 2009: differentiating economic
fil its mission by delivering a range of      2009feb28,0,3811550.story                         benefits from investments across project
ecosystem services for generations to       OECD. 2009. Interim economic outlook,               types. Administrative report. Washington,
come.u                                        March 2009: country note – United                 DC, USA. u
                                              States. Paris, France, Organization
                                              for Economic Co-operation and
                                              Development. Available at: www.oecd.
                                              org/dataoecd/17/7/42441022.pdf
                                            Schmidt, K.M., Menakis, J.P., Hardy,
                                              C.C., Hann, W.J. & Bunnell, D.L. 2002.
                                              Development of coarse-scale spatial data for
                                              wildland fire and fuel management. General
                                              Technical Report RMRS-87. Fort Collins,
                                              Colorado, USA, United States Forest Service,
                                              Rocky Mountain Research Station.




                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                            29




           How forest plantations can contribute to economic
                      renewal in South America
                                                                     I. Tomaselli




  In those South American countries

                                                       A
                                                                  lthough the current economic        provide raw material to a competitive
  where forest plantations are                                    crisis began in the United States   timber industry, contributing to the sus-
  important or have potential for                                 of America, it is now affecting     tainable development of the region.
  development, investment in them is                   most countries around the world. Demand          This article describes the impacts of
  one option for creating jobs.                        and prices are declining, economic activi-     the global financial crisis on the region’s
                                                       ties are slowing down and unemployment         economy and the forest sector in par-
                                                       is increasing. Almost one year after the       ticular, and examines the potential for
                                                       crisis started, there is no consensus on       creating jobs based on a forest plantation
                                                       how the global economy will be affected        programme.
                                                       and when recovery will start.
                                                         Crisis in South America started in late      IMPACTS OF FINANCIAL CRISIS IN
                                                       2008. Large economies in the region            SOUTH AMERICA
                                                       have seen demand for and prices of             Most countries in the region have not
                                                       their exported products decline. For-          properly assessed the impact of the cri-
                                                       eign direct investment has decreased           sis on their economies or the potential
                                                       and capital repatriation and dividend          implications for their societies or, in some
                                                       remittances have increased, contributing       countries, for their eventual political sta-
                                                       to the devaluation of national curren-         bility. Furthermore, as in other parts of
                                                       cies, economic slowing and increasing          the world, opinion diverges on the likely
                                                       unemployment.                                  duration of the crisis and the efficacy
                                                         The forest sector is important in several    of measures taken by governments to
                                                       countries in the region, and forest-based      reverse the current downward trend.
                                                       activities have potential for develop-           The impacts of the crisis vary among the
                                                       ment. Investment in forest plantations         world’s countries depending on several
                                                       is one option for generating employment        factors. South American economies, for
                                                       in the region in a relatively short time.      instance, with a few exceptions, are less
                                                       In the long-term, forest plantations can       globalized than those of most developed

                                                          Workers in a large-
                                                              scale nursery,
                                                           Brazil: plantation
                                                              establishment
                                                        involves high labour
                                                                     demand




  Ivan Tomaselli is Director, STCP Engenharia de
  Projetos Ltda, Curitiba, Brazil.
                                                                                                                                                 FAO/FO-5154/VERACEL CO.




  This article was developed from a presentation at
  the special event “Impacts of Global Economic
  Turbulence on the Forest Sector” at the nineteenth
  session of the FAO Committee on Forestry,
  Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                                          30




TABLE 1. Importance of exports: Brazil compared with some Asian economies,                                                                       manufactured goods are also a problem.
2007                                                                                                                                             Car exports from Brazil, as from Mexico,
 Country                                   Exports                            Exports as percent of GDP                                          were almost halved in volume over the
                                         (billion US$)                                                                                           first few months of 2009. These are some
 Brazil                                        200                                                               15                              examples of the breadth of the crisis in
 Malaysia                                      196                                                               49                              geographic and sectoral terms.
 Singapore                                     350                                                               66                                The intensity of the crisis in South
 Taiwan (Province of China)                    273                                                               36                              America varies among countries. In early
 Republic of Korea                             458                                                               35                              March 2009, Brazil officially announced
Source: CIA, 2009.                                                                                                                               that in the last three months of 2008 the
                                                                                                                                                 country’s GDP declined by 3.6 percent
and rapidly developing countries; thus          omies to varying degrees. It is estimated                                                        compared with the previous quarter,
international trade represents a relatively     that exports from the region in 2009 will                                                        and further reductions were expected
small share of the national gross domestic      be about 30 percent lower in value than                                                          to take place during the first months of
product (GDP).                                  in 2008. Based on the contribution of                                                            2009 (Patu and Fagundes, 2009). This
  Brazil has the largest economy of             exports to local economic development,                                                           places Brazil as one of the most affected
the region, but in spite of its efforts to      Patu and Fagundes (2009) predicted that                                                          countries in the world (Figure 1). In
increase international trade, its exports in    the decline in exports alone could limit                                                         other South American countries, such
2008 reached a little more than US$200          the region’s economic growth in 2009 to                                                          as Argentina, the impact (so far) has
billion, representing not more than 15          less than 1 percent, with some countries                                                         been less intense.
percent of the country’s GDP. In con-           expected to enter a recession.                                                                     The strong reduction of economic activ-
trast, in most Asian countries exports are        Bolivia, Ecuador and Venezuela have                                                            ity in Brazil shows that reduction in inter-
higher in both absolute and relative terms      seen their export earnings strongly                                                              national trade is not the only factor affect-
(Table 1). The Asian Development Bank           affected by the drop in oil and gas prices.                                                      ing economies around the world. Capital
(Pilling, 2009) estimates that 60 percent       Bolivia, Brazil and Chile are affected by                                                        movements around the world are possibly
of the final consumption of Asian pro-          the reduction of demand for and prices                                                           even more important than exports. In
ducts takes place in developed countries,       of minerals in the international market.                                                         South American countries, as in other
and this is a good indicator of how Asian       Argentina and Brazil face enormous                                                               developing and emerging countries,
countries have been participating in the        reductions of earnings from agricultural                                                         foreign direct investments are quickly
globalization process.                          exports as prices of soybeans and other
  The economic downturn that has taken          agriculture commodities have declined.                                                                                                                   1
hold in importing developed countries is        In the relatively developed South Ameri-                                                                                        GDP reduction in selected
                                                                                                                                                                                 countries during the last
thus expected to affect South American          can economies, declines in exports of
                                                                                                                                                                              quarter of 2008 as compared
countries less than Asia’s export-oriented                                                                                                                                       with the previous quarter
countries. China, Japan and the Republic
                                                                                          (Province of China)




of Korea reported reductions of around
                                                                      Republic of Korea




                                                                                                                                                                          Czech Republic




30 percent or more in their exports in
the first few months of 2009; declining
                                                                                                                         Indonesia




                                                                                                                                                                                                          Argentina
                                                                                                                                                                                           Australia
                                                           Thailand




                                                                                                                                              Belgium




                                                                                                                                                                 Canada




exports are expected to translate into a
                                                                                                                                     Mexico
                                                                                          Taiwan




                                                                                                                                                        France




                                                                                                                                                                                                                      Austria
                                                                                                                Brazil




drop in economic growth of 2 to 7 per-
                                                      0
cent in some Asian economies.
                                                                                                                                                                                                          -0.3        -0.2
  Most South American countries’                     -1                                                                                                                    -0.6            -0.5
                                                                                                                                                                 -0.8
exports, on the other hand, are based                                                                                                         -1.3      -1.2
                                                     -2
on commodities. The increase in inter-
                                                     -3                                                                              -2.7
national commodity prices over the past
few years was largely associated with                -4                                                         -3.6     -3.6
the growing demand for raw materials                 -5
in Asian countries, where demand is                                                         -5.4
                                                     -6               -5.6
now declining.                                             -6.1
  The decline in commodity demand and                -7

prices is affecting South American econ-             Source: Patu and Fagundes, 2009.




                                                                                                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                               31




                                     Forestry is Chile’s
                                second most important
                                     economic activity,
                                 contributing more than
                              3 percent to national GDP




  declining. Transnational companies have
  increased the repatriation of capital and
  remittances of dividends to solve liquid-
  ity problems faced by operations in other
  parts of the world. One example is the




                                                                                                                                                   FAO/FO-5094/E. BEUKER
  car industry in Brazil, a highly profitable
  operation that sent several billion dollars
  to company headquarters in the first few
  months of 2009.
    The International Labour Organiza-
  tion (ILO) (cited by Schwartz, 2009)                     South American countries depreciated          down of economic activity in the United
  estimates that another 50 million people                 over the last months of 2008. Deprecia-       States, Europe and Asia. With the decline
  around the world will be unemployed                      tion has partly helped to compensate          in demand and prices of pulp, paper
  in 2009. Growing unemployment in                         for the lower international prices and to     and wood products, many companies
  developed economies will have an                         maintain export volumes, especially in        in Brazil and Chile have reduced their
  impact in those developing countries                     countries where commodity exports are         production, while some have phased out
  that had had high rates of emigration.                   important. On the other hand, the devalu-     their activities and most have postponed
  Remittances by migrant workers to their                  ation of the local currency has contrib-      or cancelled new investments.
  countries will be reduced, and unem-                     uted to further decline in international        The devaluation of the Brazilian cur-
  ployed migrant workers will return to                    prices of some goods, and has created         rency against the United States dollar at
  their home countries; thus unemploy-                     a burden for companies that financed          the end of 2008 had a strong impact on
  ment will basically be transferred to the                investments and have payments due in          the forest industry. Temporary benefits
  developing world. Some countries in                      foreign currency.                             that might have resulted from the devalu-
  South America and Central America will                                                                 ation, such as a gain in competitiveness
  be particularly affected. Mexicans work-                 SOUTH AMERICAN FOREST                         in international markets, were lost as
  ing overseas sent home around US$24                      SECTOR AND THE CRISIS                         prices declined at basically the same rate.
  billion in 2008 (Gazeta Mercantil, 2009),                Forestry is an important economic sec-        The quick change of the markets and the
  which represents a significant share of                  tor for many South American coun-             devaluation of the local currency under-
  the country’s GDP. Ecuador and many                      tries, especially Chile, Brazil and more      mined the financial strategy of leading
  Central American countries also have a                   recently Uruguay. The Chilean forest          companies, causing Aracruz Celulose,
  significant percentage of their citizens                 industry contributes more than 3 per-         for example, to postpone its investment
  working abroad, mainly in the United                     cent to national GDP and approximately        plans and restructure its debts.
  States and Europe. These countries can                   7 percent of total exports (INFOR, 2009);       The strong decline in the housing sector
  expect a reduction in capital inflow and                 it is the country’s second most important     in the United States, an important market
  an increase in unemployment.                             economic activity. In Brazil, the forest      for South American producers, caused
    Because of several factors (includ-                    sector accounts for more than 3 percent       the region’s softwood timber exports to
  ing reduction of foreign investments,                    of GDP and around 5 percent of total          the United States to collapse. In volume
  uncertainties, dividend remittances and                  exports (ABRAF, 2009).                        terms, 2008 global imports of softwood
  capital repatriation by transnational                      The region’s forest sector has been         timber declined by 31 percent compared
  companies), national currencies of some                  directly and indirectly affected by a slow-   with 2007 (Random Lengths, 2009a). In




Unasylva 233, Vol. 60, 2009
                                                                                             32




                                                                                               2                       Brazil and Chile, prices dropped around
                                                                                               Change in United
                                                                                                                       30 percent in the second half of 2008

                                           Honduras
              Argentina




                                                                                               States softwood




                                                               Uruguay
                                                                                                                       (Figure 3) and are now down to the levels


                                                      Mexico
                                                                                               timber imports from
                          Brazil


                                   Chile


                                                                                               the main South and      of 2005–2006. Most of the price reduc-
         0                                                                                     Central American
                                                                                               exporting countries,
                                                                                                                       tion reported for 2008 is related to the
       -10                                                                                     2007 to 2008 (%)        devaluation of the local currencies, as
       -20                                                                                                             prices in local currency have changed
                                                                                                                       little. The exchange rate in the first
       -30
                                                                                 World
                                                                                                                       quarter of 2009 was stable, and prices
       -40                                                                       average                               in United States dollars continued to
       -50                                                                                                             decline. In the second semester of 2009,
                                                                                                                       local currencies of most South American
       -60
                                                                                                                       countries started to appreciate and prices
       -70                                                                                                             tended to be stable.

   Source: Random Lengths, 2009a.                                                                                      FOREST SECTOR INVESTMENTS
                                                                                                                       IN SOUTH AMERICA AND THE
Central America, exports from Honduras                                   try, mainly in Brazil and Bolivia; it has     GLOBAL CRISIS
dropped more than 60 percent – a strong                                  also affected South American timber           Recent and future investments
impact for a relatively small economy                                    exporters, as China’s imports of tropical     Most of the ongoing and announced
(Figure 2). Several sawmills in South                                    hardwoods for use in flooring declined        investments in the region’s forest sec-
American producing countries have                                        in terms of volume and price.                 tor are linked to forest plantations in
had to shut down. This situation is not                                    The social and economic implications        Brazil, Chile and Uruguay. In Brazil,
expected to change much in 2009.                                         of the global crisis for the forest sec-      direct domestic investments are the most
  The structural wood panels sector has                                  tor, at the national and regional levels,     important, while in Chile and Uruguay
undergone a similar decline. United                                      have not yet been thoroughly assessed.        the main investors are foreign compa-
States imports of softwood plywood in                                    There are indications that the impact will    nies. The pulp and paper industry is the
2008 were 25 percent lower in volume                                     be significant in Bolivia, Brazil, Chile,     largest investor in all three countries, but
in 2008 than in 2007, the lowest since                                   Uruguay and parts of Argentina. Within        institutional and other private investors
2002. In 2008, South America supplied                                    each country, regions where the forest        are gaining importance.
94 percent of all United States softwood                                 sector makes an important contribution          The forest sector investments in
plywood imports, Chile currently being                                   to the local economy are expected to          Brazil over the past five years have been
the main exporter. Imports from Brazil,                                  be most affected by the reduction in          largely associated with the expansion of
the leader from 2003 to 2007, dropped 44                                 demand for and prices of forest pro-          the pulp and paper, reconstituted pan-
percent, while those from Uruguay were                                   ducts. For example, in Paraná State,          els (medium-density fibreboard and
reduced by almost 50 percent. Prices of                                  Brazil, where the forest sector contri-       particleboard) and charcoal-based pig
structural wood panels dropped by 20                                     butes around 5 percent to GDP, employ-        iron industries. As shown in Figure 4,
percent from 2007 to 2008. Thus exports                                  ment in the timber industry was reduced       forest sector investments in the country
of structural wood panels to the United                                  by 21 percent in 2008. In Brazil as a         dropped 26 percent from 2007 to 2008,
States lost around 45 percent in value                                   whole, however, the reduction in employ-      and companies’ projected investments
(Random Lengths, 2009b).                                                 ment was less – 6 percent – with pulp         for the subsequent five-year period
  Other important markets for South                                      and paper, reconstituted panels and the       dropped 36 percent.
American forest industries have also                                     charcoal-based pig iron industry taken          Uruguay has received immense invest-
collapsed. Imports of mouldings by the                                   into account (ABRAF, 2009). Most of the       ments in the forest sector over the past
United States were significantly reduced                                 reduction was associated with reductions      few years, but investments in the country
in 2008, and Brazil and Chile (the main                                  in forest plantation activities by the pig    have slowed down as a result of the global
moulding exporters in the region) have                                   iron industry.                                financial crisis (Wood Resources Inter-
shut down mills. Decline in the demand                                     As in other parts of the world, prices of   national, 2009). The Finnish company
for and prices of flooring material in                                   forest products have diminished in most       Botnia, which had recently invested in a
the United States and other importing                                    South American countries in line with the     pulp mill with a capacity of around 1 mil-
markets has affected the flooring indus-                                 reductions in international demand. In        lion tonnes per year, has reduced produc-




                                                                                                                                                 Unasylva 233, Vol. 60, 2009
                                                                              33




                                                                                3                        Peru and Colombia are considering
                                                                                Recent wood fibre
                                                                                prices in Brazil
                                                                                                       the implementation of forest plantation
    US$/oven-dry tonne
    (delivered)                              Brazil                             and Chile              programmes, but have not yet developed
         120
                                                                                                       structured plans.
         100
                                                                                                       Forest plantations and employment
           80
                                                                                                       Forest plantations are long-term invest-
           60                                                                                          ments. In a short time, a well-struc-
           40                              Coniferous pulp logs                                        tured plantation programme can create
           20                              Non-coniferous pulp logs                                    (directly and indirectly) permanent jobs
            0
                                                                                                       in rural areas, helping to mitigate the
                 2007/1 2007/2 2007/3 2007/4 2008/1 2008/2 2008/3 2008/4                               effects of financial crisis. But it will also
                                        Quarter                                                        foster socio-economic development in
                                                                                                       the long term, attracting investment in
                                            Chile                                                      wood processing activities that facili-
         120                                                                                           tates the creation of a cluster, gener-
         100
                                                                                                       ating employment in the industry and
                                                                                                       services.
           80
                                                                                                         The investment required to establish
           60
                                                                                                       and manage a forest plantation and gen-
           40                                                                                          erate employment varies largely in the
           20                                                                                          region, depending on the local soil and
            0                                                                                          climate conditions, tree species, techno-
                 2007/1 2007/2 2007/3 2007/4 2008/1 2008/2 2008/3 2008/4                               logy, forest management requirements
                                        Quarter                                                        and work productivity, among other fac-
                                                                                                       tors. For example, the establishment of
       Source: Wood Resources International, 2009.
                                                                                                       large-scale, fast-growing plantations by
                                                                                                       the pulp industry tends to generate less
  4                                                        tion because of the weak markets. ENCE,     employment than smaller-scale long-
  Impacts of the crisis                                    a Spanish paper company, has encoun-        rotation plantations established to pro-
  on forest sector
  investments in Brazil
                                                           tered a slowdown in investment for a        duce high-quality timber for the solid
                                                           planned pulp mill. Portucel Soporcel,       wood industry. The balance between
                          Investments                      a Portuguese paper company, faces the       capital and labour requirements may
        Billion US$                                        same problem in establishing a planned      vary. For example, mechanization can
            4
                       3.4
                                                           pulp and paper mill in Uruguay.             be used for planting in flat terrain, while
            3                 -26% 2.5                       In 2007, Ecuador adopted a National       on slopes most operations are manual.
            2
                                                           Plan for Forestation and Reforestation      Soil variations from site to site have
                                                           which includes a target of establishing     implications for soil preparation, ferti-
            1
                                                           1 million hectares of new plantations       lization, weed control and other costs.
            0
                      2007          2008
                                                           over the next 20 years (Tomaselli, 2008).   Some species require more fertilizers
                                                           The forest sector was made one of the       and chemicals than others.
                  Projected investments                    ten priority development sectors, and         Table 2 presents a cost range for
                  for the next five years                  US$75 million from the national budget      establishing and managing plantations
          15                                               was made available for direct investment    in Brazil, which could also be applied
                      11.5
          10                                               in plantations. However, because of the     to other countries of the region. The
                              -36% 7.4
                                                           need to revise the government budget        information is derived from actual
           5                                               in view of the financial crisis, only a     operations based on manual and
           0                                               small amount was invested in forest         mechanized planting of pine and
                      2007          2008                   plantations in 2008; most of the allo-      eucalyptus in different locations,
                                                           cation was transferred to other priority    managed for the solid wood industry
       Source: ABRAF, 2009; STCP, 2009.                    programmes.                                 (larger-diameter logs). Investments are




Unasylva 233, Vol. 60, 2009
                                                                   34




TABLE 2. Forest plantation costs in          70 000 people would be employed in                    benefits that the plantations would gen-
Brazil (pine and eucalyptus)                 the fifth year. The total accumulated                 erate in the future. The Corporation for
 Investment phase                Range       investment required to implement                      Export and Investment Promotion of
                                (US$/ha)     such a programme over a five-year                     Ecuador (CORPEI) estimates that the
 Planting                     1 100–1 600    period would reach around US$480                      plantation programme has the poten-
 First year (maintenance)       210–550      million (Figure 6). The annual invest-                tial to generate over US$2.5 billion
 Second year (maintenance)      130–340      ment would tend to stabilize at about                 annually based on trade of products
 Following years                 90–130      US$120 million after year five.                       in international markets (Tomaselli,
 Total (full rotation)        2 500–3 700      Based on this simulation, for each job              2007). The expansion of forest plan-
Source: STCP, 2009.                          created, Ecuador would have invested                  tations is the only option for sustain-
                                             less than US$5 000 per year, a relatively             ing the development of the country’s
TABLE 3. Labour demand in forest             small amount considering the immedi-                  forest industry and making its export
plantation, Brazil                           ate social benefits and especially the                programme feasible.
 Investment phase            Labour demand
                               (person/ha)                        5
 Planting                     0.025–0.132      Simulation of direct     Direct employment
 First year (maintenance)     0.010–0.047    employment potential       (1 000)
                                              based on Ecuador’s
 Second year (maintenance)    0.005–0.040                                25
                                                  forest plantation                                                                            23
 Following years              0.010–0.015              programme
Source: STCP, 2009.                                                      20

heavily concentrated in the first two to                                                                                                17.5
                                                                         15
three years. The total investment for
one full rotation varies from US$2 500                                                                                   13
                                                                         10
to US$3 700 per hectare. In Brazil,                                                                         9
rotations for solid wood are relatively                                                      6.6
                                                                          5
short – 12 to 14 years for eucalyptus
and 18 to 20 years for pine.
                                                                          0
  Table 3 shows the direct labour                                                        1             2                3           4                5
                                                                                                                Year
demand created in establishing and
managing forest plantations in Brazil,                                  Note: Simulation based on manual planting of 50 000 ha per year to
                                                                        be managed for solid wood products.
excluding jobs created indirectly at
the nursery, in the supply chain and in
harvesting operations. The demand for                              6
workers is mostly concentrated in the                     Estimated     Million US$
                                              investments required
plantation establishment phase. It can            for implementing
                                                                        600
be estimated that for each direct job in                  Ecuador’s
                                                   forest plantation    500                                                                    479
planting and management operations,
                                                        programme
two indirect jobs are created.                                          400                                                       369
  Figure 5 presents a simulation of
                                                                        300                                            262
direct job creation if Ecuador (as an
example) were to plant 50 000 ha of                                     200                            160
forest plantations per year as part of its
strategy to reduce the socio-economic                                   100               70
                                                                                                            90              102         107 110
impact of the financial crisis. It pre-
                                                                          0
dicts that employment in the forest                                                      1              2               3           4                5
sector would gradually increase so that
                                                                                                                Year
at the fifth year around 23 000 new
                                                                                                           Annual investment
direct jobs (in forest plantation estab-
                                                                                                           Cumulative investment
lishment and management operations)
would have been created. If indirect                                    Note: Estimates based on 50 000 ha per year planted and managed
                                                                        for solid wood products.
jobs are considered as well, around




                                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                      35




  CONCLUSIONS AND
  RECOMMENDATIONS
  The global financial crisis is affecting
  economies around the world; unem-                          Bibliography
  ployment is growing and developing
  countries will need to find strategies for    ABRAF. 2009. Anuário Estatístico da ABRAF
  mitigating the social impacts. For some          2009 [ABRAF Statistical Yearbook 2009].
  South American countries, part of the            Brasilia, Brazil, Associação Brasileira de
  solution can be found in the forest sector.      Produtores de Florestas Plantadas.
  Forest plantations are a competitive busi-    CIA. 2009. The World Factbook. Washington,
  ness in the region, and their expansion          DC, USA, Central Intelligence Agency.
  can immediately increase employment.             Available at: www.cia.gov/library/
  The investment capital can come from             publications/the-world-factbook/index.
  government incentives, local or interna-         html
  tional financing programmes or direct         Gazeta	Mercantil. 2009. Queda nas remessas do
  investments from private investors.              emigrante é mau sinal [Drop in remittances
    The cost involved in a plantation              by immigrants bodes badly]. 17 February,
  establishment programme will most                p. A2.
  probably be equivalent to that of any         INFOR. 2009. Anuario Forestal 2008. Boletin
  social programme that would be put in            Estatístico 121. Santiago, Chile, Instituto
  place to support unemployed workers.             Forestal (INFOR).
  The difference is that while mitigating       Patu, G. & Fagundes, A. 2009. Crise bate
  the social effects of the crisis, the pro-       mais forte no país e PIB cai 3.6% [Crisis hits
  gramme would also be creating value.             stronger in the country and GDP drops 3.6%].
    In order to ensure that future benefits        Folha de São Paulo, 11 March, p. B1.
  are maximized and sustainable, planta-        Pilling, D. 2009. Asia and the crisis: unlucky
  tion establishment needs to be part of a         numbers. Financial Times, 9 February.
  long-term development strategy; this is       Random	 Lengths. 2009a. US imports of
  more important than job generation in the        softwood lumber. 42(3): 8.
  short term. In this case relatively short     Random	 Lengths.	 2009b. US plywood
  economic cycles cannot be considered,            imports fall 25%, Chile now largest
  although adjustments can be made over            supplier. 42(5): 2.
  the long term to accommodate eventual         Schwartz, N.D. 2009. Perda de empregos
  market changes.                                  ameaça a estabilidade [Job losses threaten
    Several countries in South America,            stability]. Gazeta Mercantil, 27 February,
  including Brazil, Chile and Uruguay,             p. D7.
  have already demonstrated the effec-          STCP. 2009. Internal database. Curitiba,
  tiveness of including support for the            Brazil, STCP Engenharia de Projetos Ltda.
  establishment of large plantations in the     Tomaselli, I. 2007. Potencial forestal del
  national development strategy. These             Ecuador. Presentation to a seminar, Quito,
  countries are currently the main re-             Ecuador, April.
  ceivers of direct investments in the forest   Tomaselli, I. 2008. Análisis de los desarrollos
  sector in the region. As a result, in these      recientes relacionados al sector forestal.
  countries the forest sector is an important      Proyecto Proforestal, Producto 1. Quito,
  contributor to national socio-economic           Ecuador, Corporation for Export and
  development. u                                   Investment Promotion of Ecuador
                                                   (CORPEI).
                                                Wood Resources International. 2009.
                                                   Sawlog and pulpwood markets 4Q/08 –
                                                   Latin America. Wood Resource Quarterly,
                                                   21(4): 33. u




Unasylva 233, Vol. 60, 2009
                                                             36




               Rebuilding rural India: potential for further
                 investments in forestry and green jobs
                                                       J.R. Matta




A moderate increase in funds

                                         G
                                                   reen jobs are receiving unprec-        Most of the growth in non-agricultural
allocated to forestry under India’s                edented attention as signs of a      employment has been in the informal
National Rural Employment                          more sustainable economy and         sector and in low-productivity self-
Guarantee Act could revitalize           a society that conserves the environ-          employment activities such as petty
the rural economy and the                ment for present and future generations        trade, hotel management and construc-
environment.                             (ILO, 2008). The current economic crisis       tion. The share of the manufacturing
                                         presents unique opportunities for moving       sector has increased only marginally
                                         towards a greener future by giving a major     (NSSO, 2008). Many people are unable
                                         thrust to the forest sector that will gener-   to find regular employment and must
                                         ate employment, create real and durable        resort to self-employment, which is often
                                         assets and help rebuild rural India. Unem-     precarious and therefore likely to be
                                         ployment has been a serious problem in         distress driven (Centre for Science and
                                         India since well before the current crisis,    Environment, 2008). As the current trend
                                         and it is a major cause of political and       of more women seeking jobs continues,
                                         social unrest. Creating employment could       the number of unemployed will increase
                                         also help resolve societal conflicts.          further. To meet the growing demand
                                           India is the fourth largest economy          for additional jobs, the growth in non-
                                         in the world by gross domestic product         agricultural employment would need to
                                         (GDP, measured on a purchasing power           accelerate to around 6 percent.
                                         parity basis) and has achieved an aver-          This article analyses the benefits that
                                         age annual growth rate of 7.5 percent          India could obtain by investing about
                                         in GDP in the current decade. However,         US$4 billion in forestry, in terms of
                                         despite this extraordinary growth, the         employment as well as other social, eco-
                                         overall unemployment rate in the for-          nomic and environmental benefits.
                                         mal sector increased from 6.1 percent
                                         in 1994 to 8.3 percent in 2005 (Ministry       IMPACTS OF THE CURRENT
                                         of Finance, 2009). Although job oppor-         ECONOMIC CRISIS
                                         tunities increased, the labour force grew      The economic downturn that began to
                                         faster, at a rate of 2.8 percent between       affect advanced economies in mid-2007
                                         2000 and 2005, leaving about 35 million        has exacerbated the unemployment situ-
                                         unemployed as of 2005. The informal            ation in India through pernicious feed-
                                         sector, lacking social security coverage,      back loops (Mohan, 2008). The total net
                                         constitutes 93 percent of the country’s        capital inflows to India, for example, fell
                                         workforce (EPWRF, 2009). The situa-            from US$17.3 billion in the period April
                                         tion is particularly grim in rural areas       to June 2007 to US$13.2 billion in the
                                         where 74 percent of India’s unemployed         same months of 2008. The investment
                                         population is located. With traditional        demand has decelerated and the index of
                                         farming becoming economically less             industrial production has shown nega-
                                         viable, and the recent economic down-          tive growth. The software industry was
                                         turn rendering several thousand workers        severely affected, and exports declined
Jagannadha Rao Matta is Conservator of   jobless, the condition of rural people has     as a result. The crisis has particularly
Forests, Tamil Nadu Forest Department,   become even worse.                             slowed down the services sector, India’s
Chennai, India.




                                                                                                                 Unasylva 233, Vol. 60, 2009
                                                                     37




  prime growth engine in recent years            CURRENT FORESTRY SITUATION
  (Subbarao, 2009). It has also had nega-        IN INDIA                                                 Forestry imports
  tive consequences for construction,            Resource challenges
                                                 India has a forest area of 67.7 million        India’s forest product imports accounted
  transport and communication, trade and
                                                 hectares, or 22.8 percent of the country’s     for US$1.6 billion in 2001, as compared
  the hotel and restaurant sector, signifi-
                                                 land area (FAO, 2006). Forestry is the         with exports of US$94 million. India is
  cantly moderating GDP growth (Mohan,
                                                 second largest land use after agriculture      the third largest importer of tropical logs,
  2008). According to the Indian Labour
                                                 and accounts for about 1.5 percent of          mostly from Malaysia and Indonesia but
  Ministry, the total employment in eight
                                                 the nation’s GDP (World Bank, 2006). A         with increasing supplies from Africa. In
  key sectors of the economy fell from
                                                 fourth of India’s population, or roughly       2000–2001, the import value of pulp and
  16.2 million to 15.7 million between
                                                 250 million people, depend on forests          paper alone was US$800 million, and it is
  September and December 2008. Some
                                                 either wholly or partially for their liveli-   projected to reach US$3.2 billion by 2011
  trade unions put the number of jobs lost
                                                 hoods; of these, residents of the forest       (National Forest Commission, 2006).
  at 2 million. The average earnings of
  Indians also declined by 3.5 percent           fringes, which make up the majority, are
  during the last quarter of 2008 (Indian        among the poorest and most vulnerable          lion people engaged in fuelwood trade
  Express, 2009).                                groups.                                        (both formally and informally) worth
    The economic crisis has also led to            Thanks to afforestation and reforesta-       over US$17 billion. But in 2006, har-
  substantial reverse migration. From the        tion efforts, India is one of the only coun-   vested fuelwood exceeded the amount
  city of Surat alone, for example, it is        tries in South Asia to have maintained         that could sustainably be removed from
  said that 200 000 to 400 000 workers in        its forest cover in recent years. Yet the      forests by 139 million metric tonnes
  the diamond industry have returned to          country’s forests are under tremendous         (National Forest Commission, 2006).
  their villages (EPWRF, 2009). Similarly,       pressure. About 41 percent of the forest         Almost 33 million hectares of forest
  half of Bangalore’s migrant construction       is degraded to some extent. About 78           plantations were established from 1951
  workers (about 500 000) left the city in       percent of the forest area is subject to       to 1999 (see Box left). Yet wood-based
  search of employment elsewhere. The            heavy grazing, and 50 percent is exposed       industries are plagued by severe short-
  job losses were primarily among con-           to wildfires. Shifting cultivation threat-     age of raw material to meet steeply
  tractors and low-paid workers in the           ens another 10 million hectares (National      rising demand. India is a net importer
  informal sector. The return of thousands       Forest Commission, 2006). The loss of          of forest products (see Box above). The
  of unemployed workers has had a nega-          forests leads to irreversible erosion,         deficit in timber supply, which was
  tive impact on the quality of life in rural    reduced soil fertility, diminished water       estimated to be about 39 million cubic
  areas that were already under severe           catchment function, downstream flood-          metres in 2006, is also partially met from
  economic stress. This situation calls for      ing, diminished biodiversity and addi-         unrecorded removals from natural and
  a serious rethinking of rural develop-         tional rural poverty.                          planted forests.
  ment priorities and an immediate effort          Non-wood forest products (NWFPs)
  to promote employment opportunities            are an important source of livelihoods         Forest policy initiatives
  across the country.                            for millions of forest-dependent peo-          The Ministry of Environment and
                                                 ple and account for 75 percent of total        Forests has set a goal of enhancing
                                                 forest export revenue. Yet as their eco-       forest and tree cover to 33 percent of
        Forest plantations in India              nomic potential has improved, they have        the nation’s geographical area. The
                                                 become overexploited.                          government spends roughly 4 percent
  The area under forest plantations in India       The nation also faces significant def-       of the national GDP (in nominal terms)
  is about 32.57 million hectares, which         icits in terms of meeting its growing          towards this end, through the flagship
  accounts for 17 percent of the global forest   fodder, fuel and timber needs. Forests         National Afforestation Programme
  plantation area and is the second largest in   provide grazing for over 50 percent of         (US$250 million invested during the
  the world after China. India has the largest   India’s 500 million livestock, and 175 to      tenth Five Year Plan, 2002–2007)
  share of teak and rosewood plantations in      200 million tonnes of green fodder are         and other national initiatives such as
  the world. Industrial plantations account      collected annually. About 75 percent of        the Grants-in-Aid for Greening India
  for 37 percent of total plantations and play   all forest production in India is fuelwood,    scheme and the recently launched Gram
  a major part in supplying raw material to      mostly collected from natural forests.         Van Yojana to support tree planting
  wood-based industries (National Forest         Forestry is the largest employer in the        on community and non-forest public
  Commission, 2006).                             Indian energy sector, with about 11 mil-       lands. State governments have also




Unasylva 233, Vol. 60, 2009
                                                                   38




                                                                                                                                             TAMIL NADU FOREST DEPARTMENT
The National Rural
Employment Guarantee Act                       ing on average US$20 000. Since April         forestry could be included more fully
promotes water conservation
                                               2008, NREGA has been extended to all          to help trigger real economic growth.
activities such as the
construction of percolation                    596 districts in the country (Ministry of     Indeed, the National Forest Commission
ponds and water harvest                        Finance, 2009) and around US$6 billion        has recommended a substantial increase
channels in forest fringes to
                                               is expected to be spent on it annually. As    in the allocation of funds to forestry and
recharge groundwater and
help local agriculture                         of April 2009, about 45 million work-         watershed operations, to reach 20 per-
                                               ers, half of them women, were provided        cent of Rural Development Programme
taken up afforestation, reforestation and      employment under the act (Ministry of         funding.
biodiversity conservation projects.            Rural Development, 2009).                       Even a moderate increase in NREGA
  Participatory forest management is             Since the main thrust of NREGA is           funds allocated to forestry could easily
implemented on a large scale through           enhancing the natural resource base in        generate about US$4 billion in five years.
Joint Forest Management, which involves        rural areas, it is regarded as the world’s    Based on the employment already gen-
villagers collaborating with government        largest ecological restoration programme      erated by NREGA, it can be estimated
forest departments in forest protection        (Centre for Science and Environment,          that an investment of this size could cre-
and restoration, in exchange for a share       2008). Many villages have already ben-        ate about 1 533 million person-days of
of the products such as NWFPs and small        efited from its support to water conser-      employment. If a job is expected to pro-
timber. By February 2007, 100 000 local        vation programmes – critical in rainfed       vide 150 to 200 days of employment in
village institutions were managing 22          areas of India, which sustain 40 percent      a year (since year-round employment is
million hectares of forests.                   of the nation’s population. A good water      not anticipated in forestry and other rural
                                               harvesting structure can aid in growing       sectors), this investment could create
A KEY RURAL EMPLOYMENT                         a supplementary crop, and 1 hectare of        8 million to 10 million jobs. And besides
INITIATIVE                                     irrigation can create additional employ-      NREGA, there are also other regular
The National Rural Employment Guar-            ment for 2.5 persons.                         forestry programmes with a strong focus
antee Act (NREGA) of 2005 legally                However, a major challenge currently        on employment generation.
guarantees 100 days of employment to           facing NREGA is the insufficient atten-         Forest activities can be taken up on
India’s rural population – the first nation-   tion given to the sustainability of the       three types of land as follows.
wide employment scheme of this kind.           employment opportunities generated.
The act is significant in three ways: it       In view of the target-based approach,         On areas currently classified as forests
aims at eradicating acute poverty in vil-      implementation of the act emphasizes          These forests are typically meant to meet
lages by ensuring that the poorest of the      easily executable works such as road          the national conservation objectives and
poor are given sufficient employment; it       building (Centre for Science and Envi-        livelihood needs of forest-fringe com-
aids in empowering local governments,          ronment, 2008).                               munities through Joint Forest Manage-
as the act’s implementation is vested with                                                   ment. Natural forests are also important
them; and it supports activities that create   POTENTIAL FOR CREATING JOBS                   for the continued provision of environ-
productive assets that could potentially       IN FORESTRY                                   mental goods and services.
make villages self-sustaining. During          Currently, activities related to tree plan-      •	Forest	restoration. Degraded forests
2006–2007, more than 100 000 villages          tation and drought proofing account for            need to be substantially restored to
implemented the scheme, each spend-            around 8 percent of NREGA funding, but             improve their productivity. Mainte-




                                                                                                                      Unasylva 233, Vol. 60, 2009
                                                                   39




                                                   cover – e.g. fire protection, forest      this category can be made available for
         Forestry as a community                   boundary consolidation and creation       tree planting.
                enterprise                         of infrastructure such as watchtow-          •	Biological	 barriers	 against	 natu-
                                                   ers – are essential. Systematic forest         ral	calamities.	Coastal shelterbelts
  With just 20 hectares under production,          monitoring and database manage-                can mitigate against natural disas-
  a community could remove up to 5 m3 per          ment are also needed to improve                ters such as tsunamis, which have
  year of sawlogs from a high-quality Sal          forest planning and management.                devastated several areas in India.
  (Shorea	 robusta) forest and earn annual       •	Biodiversity	conservation.	Protected           Biological barriers are also a means
  gross revenues of US$15 000 (based on an         areas and other ecologically sensi-            of adapting to the adverse effects
  average market price of US$150 per cubic         tive locations need to be system-              of global warming. Mangroves and
  metre). This would represent an additional       atically managed with additional               coastal wetlands need enrichment.
  income of US$150 a year if shared among          investments to improve habitat for           •	Urban	forestry. India is urbanizing
  100 households (World Bank, 2006).               wildlife, to establish wildlife corri-         fast, and urban forests could offer a
                                                   dors where necessary and to provide            host of environmental services to city
       nance operations such as weeding,           appropriate compensation for dam-              dwellers such as social, aesthetic and
       thinning and tending and regenera-          age caused by wildlife to humans               microclimate benefits, in addition to
       tion activities such as land prepara-       and agricultural crops.                        mitigating urban pollution.
       tion, nursery production and plant-       •	Watershed	 rehabilitation.	 Forests          •	Tree	planting	on	roadsides	and	other	
       ing also employ a large number of           form critical catchments to many               vacant	areas. Increased tree cover
       people. The areas under Joint Forest        important water systems and as such            on common areas could enhance tree
       Management could particularly ben-          are of immense value to drought-               cover for carbon sequestration, pro-
       efit from enhanced investments to           prone India. In addition, the runoff           mote a conservation ethic among the
       improve productivity and manage-            from forested highlands generates              public and augment local wood, fuel
       ment. The income from community-            hydropower. Watershed rehabilita-              and fodder supplies.
       managed forests could rise from an          tion activities such as contour trench-
       estimated US$222 million in 2004            ing, gully plugging, check dam con-       On private lands
       to approximately US$2 billion per           struction and planting with suitable      As economic efficiency and competi-
       annum in 2020 (see Box above).              species are labour intensive.             tiveness become increasingly important,
     •	Enhanced	 forest	 protection	 and	                                                    private-sector involvement in wood pro-
       management.	 Measures to protect        On other public and community lands           duction is gaining prominence (Nair,
       and maintain the existing forest        Areas in this category include public         2008). Currently the private forest plan-
                                               lands, mangroves and wetlands along           tation area in India is just 6 million
  Restoration activities such                  the coast, barren areas often classified as   hectares. To meet the increasing demand
  as land preparation, nursery
  production and planting employ
                                               wastelands, areas along roads, highways       for wood and wood products, farmers
  a large number of people –                   and canal banks, and other institutional      and private industries need to be engaged
  degraded forest in Tamil Nadu in             areas such as school and office campuses.     in tree growing through farm forestry,
  1997 (left, background) and view
  of the same forest in 2004 after
                                               About 12 million hectares of land in          agroforestry and large-scale plantation
  restoration
                                                                                                                                       TAMIL NADU FOREST DEPARTMENT




Unasylva 233, Vol. 60, 2009
                                                                 40




                                                                                                                                            TAMIL NADU FOREST DEPARTMENT
Check dams and other water
harvest structures to control                     ronmental hazards associated with        vention of deforestation and degradation
erosion are labour intensive
to construct
                                                  their consumption. It is necessary       and augmenting carbon sequestration
                                                  to explore suitable species, areas       will contribute to climate change miti-
forestry. Appropriate agroforestry mod-           and strategies for raising large-scale   gation efforts. Agroforestry, for exam-
els can enhance the nation’s forest and           energy plantations.                      ple, has the potential to sequester up
tree cover by 5 percent (National Forest                                                   to 25 tonnes of carbon per hectare per
Commission, 2006). In southern China,         IMPLICATIONS OF THE                          year. Use of bioenergy will contribute
farm forestry contributes as much as 40       INVESTMENTS                                  to reduced greenhouse gas emissions
percent of farm income (World Bank,           The potential benefits of investing in       while reducing India’s dependence on
2006). The following areas require par-       forestry and progressing towards a           imported oil. (Of India’s total imports
ticular attention.                            green economy are manifold. Jobs can         of US$24.38 billion during September
   •	Wood-based	 industry. Additional         be provided for millions of unemployed       2008, US$9 billion were spent on crude
     raw material needs of the pulp           rural people right at their doorstep. The    oil.) Controlling wildfires would also
     and paper sector alone, for exam-        enhanced resource base could also lead       help to reduce carbon emissions while
     ple, require tree crops on 1.1 mil-      to new enterprises and infrastructure        conserving critical biodiversity.
     lion hectares, which could provide       in wood product industries, biore-             More importantly, additional liveli-
     employment to over 0.55 million          fineries, aromatic oil extraction, etc.      hood opportunities in forest-fringe
     families (Centre for Science and         Income earned through more jobs could        villages will mitigate social unrest and
     Environment, 2008).                      be expected to enhance consumption,          civil agitation.
   •	NWFPs. The domestic market value         which would stimulate production and
     for forest products of medicinal         further employment. The revitalization       CONCLUSIONS
     value is about US$1 billion, while       of villages would also alleviate pressures   Despite the phenomenal economic growth
     the global export market value for       on cities for employment. Forestry jobs      the country has witnessed in recent years,
     the same is US$62 billion. India’s       require less capital and other inputs than   chronic unemployment has become a per-
     current share of the global market,      jobs in other sectors such as information    vasive feature of rural India. The current
     however, is a meagre 0.5 percent,        technology. They vary widely in terms        economic downturn has worsened the
     which indicates tremendous poten-        of the nature of operations and level of     plight of rural people, aggravating loss
     tial for the increased cultivation and   technology, and they are adaptable to        of livelihoods, poverty and social dis-
     sustainable production of NWFP           local conditions and capacities.             turbances. A movement towards a green
     resources.                                 Investing in green jobs would also help    future, predicated on enhancing the use
   •	Bioenergy. Commercial biomass-           achieve the goal of bringing 33 percent      of renewable resources and mitigating the
     based energy is expected to have a       of the country’s area under green cover,     adverse affects of climate change, could
     significant role in meeting India’s      while rendering environmental benefits.      provide impetus to the forest sector, create
     growing energy needs. The country        A “Green India” was one of the eight pri-    real and durable assets and help rescue
     has been hard hit in recent years by     orities identified by the National Action    rural India from this crisis.
     the increasing prices of fossil fuels,   Plan on Climate Change announced by            Complementarity between poverty
     uncertainty in supplies and the envi-    the Prime Minister in June 2008. Pre-        reduction and meeting critical national




                                                                                                                     Unasylva 233, Vol. 60, 2009
                                                                     41




  conservation goals makes forestry an            com/news/earnings-of-workers-fall-by-
  excellent means for rural economic              3.45-in-q3-report/433693
  growth in India. Increased investment         Ministry of Finance, Government of
  in forestry and its integration in pro-         India. 2009. Economic survey 2007–2008.
  grammes such as NREGA and other                 New Delhi, India. Available at: www.
  economic recovery packages could help           indiabudget.nic.in/es2007-08/social.htm
  revitalize the rural economy.                 Ministry of Rural Development,
    A moderate increase in NREGA funds            Government of India. 2009. National
  allocated to forestry, as recommended           Rural Employment Guarantee Act. New
  by the National Forest Commission,              Delhi, India. Available at: www.nrega.
  could generate about US$4 billion in            nic.in
  five years. By investing this amount          Mohan, R. 2008. Global financial crisis
  to improve degraded forests, promote            and key risks: impact on India and Asia.
  agroforestry and enhance the green              Remarks prepared for the IMF–FSF
  cover of the country, India could create        [International Monetary Fund–Financial
  8 to 10 million jobs. Besides rendering         Stability Forum] High-Level Meeting on
  significant social, economic and envi-          the Recent Financial Turmoil and Policy
  ronmental benefits, this strategy could         Responses, Washington, DC, USA, 9
  also provide better focus and direction         October. Available at: rbidocs.rbi.org.in/
  to current employment programmes.               rdocs/Speeches/PDFs/87784.pdf
  The timing seems to be right to give          Nair, C.T.S. 2008. Public sector forestry
  forestry a prime place in India’s pursuit       agencies at the cross-roads: are they fading
  of more equitable, inclusive and sustain-       into irrelevance? In Re-inventing forestry
  able development.u                              agencies – experiences of institutional
                                                  restructuring in Asia and the Pacific, pp.
                                                  7–17. Bangkok, Thailand, FAO Regional
                                                  Office for Asia and the Pacific. Available
                                                  at: www.fao.org/docrep/010/ai412e/
                                                  ai412e00.htm
                                                National Forest Commission. 2006. Report
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    sustainable forest management. FAO          World Bank. 2006. Unlocking opportunities
    Forestry Paper No. 147. Rome.                 for forest-dependent people in India. Report
  ILO. 2008. Green jobs: facts and figures.       No. 34481–IN. Washington, DC, USA. u
    Geneva, Switzerland, International Labour
    Organization.
  Indian	Express. 2009. Earnings of workers
    fall by 3.45 percent in Q3: Report. 12
    March. Available at: www.indianexpress.




Unasylva 233, Vol. 60, 2009
                                                                                                        42




                                         The Philippines’                         The Department of Environment and Natural
                                                                                  Resources in the Philippines has created the
                                                                                                                                      and is envisioned to expand existing initiatives
                                                                                                                                      consistent with the country’s Medium-Term

                                         Upland                                   Upland Development Program in support of
                                                                                  the government’s Economic Resiliency Plan,
                                                                                                                                      Development Plan (2004–2010).
                                                                                                                                        Funding will be used for specific activi-
                                         Development                              launched in February 2009 to cushion the            ties such as establishment and operation of
                                                                                  impact of the global financial crisis on the        nurseries, development of forest plantations
                                         Program:                                 Filipino people. The programme aims to              and agroforestry farms, rehabilitation of river
                                                                                  improve incomes in upland areas and mitigate        banks, enrichment planting of inadequately
                                         cushioning the                           hunger, while also enhancing the country’s          stocked areas and assisted natural regenera-

                                         impacts of global                        capacity to adapt to climate change. Forestry
                                                                                  has a major place in meeting both challenges,
                                                                                                                                      tion, as well as forest maintenance and protec-
                                                                                                                                      tion through patrol work. In these activities

                                         financial crisis and                     since upland populations are highly depen-
                                                                                  dent on forest resources for subsistence and
                                                                                                                                      the Department of Environment and Natural
                                                                                                                                      Resources will partner above all with peoples’
                                         climate change                           livelihood, and forests serve as a natural          organizations engaged with the department
                                                                                  carbon sink.                                        under community-based forest and resource
                                         through green jobs                          The target of the Upland Development             management agreements. Other partners will
                                                                                  Program is to create more than 52 000 jobs          include local government units, communities
                                                                                  for farmers in upland and coastal areas, in         and civil society organizations involved in
                                         J.L. Atienza, Jr                         conjunction with the government’s Compre-           rehabilitation activities, and smallholders who
                                                                                  hensive Livelihood and Emergency Employ-            can benefit from soil and water conservation
                                                                                  ment Programme. The government provides             activities in their landholdings.
                                         A new programme will create              farm inputs including tree seedlings, organic         An interesting feature of the programme is
                                         thousands of jobs in restoring           fertilizers and other implements. The farmers’      its strong support to the government’s hunger
                                         forests and watersheds, helping to       contribution is their labour, for which they will   mitigation and poverty alleviation programmes
                                         mitigate hunger and poverty.             be paid. This strategy enables people in the        – for example, by helping to meet the raw
                                                                                  uplands to devote their time and energies           material requirements of industries involved
                                                                                  wholly to the rehabilitation of the environment     in the Trade and Industry Department’s “One
                                                                                  while earning in the process.                       Town One Product” scheme, which encour-
                                                                                     In 2009, the Philippine Government has           ages towns to specialize in a single product
                                                                                  allotted 1.5 billion pesos (roughly US$30 mil-      according to local comparative advantage in
                                                                                  lion) for the implementation of the programme,      resources and skills. The scheme’s intent is to
                                                                                  which will cover more than 52 000 hectares of       ramp up production while promoting entrepre-
                                      Jose L. Atienza, Jr is Secretary of the     180 watersheds supporting major river basins        neurship and creating income opportunities,
                                      Department of Environment and Natural
                                                                                  and protected areas. The Upland Development         especially for micro, small and medium-sized
                                      Resources, Government of the Philippines,
                                      Quezon City, the Philippines.               Program integrates other upland programmes          enterprises. The Upland Development Pro-
                                                                                                                                      gram’s linkage to this scheme ensures ready
                                                                                                           Upland Development         markets for the products generated under the
                                                                                                           Program site at
                                                                                                                                      programme, further enhancing livelihoods of
                                                                                                           Mount Kitangland
                                                                                                           Range Natural Park,        people’s organization members.
                                                                                                           the Philippines              The stark reality of global financial crisis
                                                                                                                                      and climate change increases the urgency of
DENR PROTECTED AREA SUPERINTENDENT, BUKIDON




                                                                                                                                      involving and empowering upland communi-
                                                                                                                                      ties to carry out the imperatives of conserva-
                                                                                                                                      tion, protection and sustainable utilization of
                                                                                                                                      forest lands. To this end, the Upland Devel-
                                                                                                                                      opment Program aims to transform poverty
                                                                                                                                      into self-sufficiency and degradation into
                                                                                                                                      restoration.
                                                                                                                                        For more information, see: forestry.denr.gov.ph/
                                                                                                                                      SUDP.htm




                                                                                                                                                                   Unasylva 233, Vol. 60, 2009
                                                                       43




         How Chinese forestry is coping with the challenges
                 of global economic downturn
                                                        Q. Ma, J. Liu and W. Du




  China’s domestic economic

                                                   T
                                                            he global financial crisis is creat-     The economic development of forestry
  stimulus package aims to                                  ing severe challenges for Chinese      in China has greatly depended on external
  encourage consumption of                                  forestry, and especially for small     trade; timber imports have increased by
  wood and wood products; raise                    and medium-sized wood-processing                on average 30 percent per year over the
  investment in afforestation,                     enterprises. Exports of forest products,        past ten years. In 2007, China imported
  reforestation and protection of                  domestic demand for forest products             around 37 million cubic metres of logs as
  natural forests; and support forest              and timber prices have dropped sharply          well as wood pulp, waste paper and other
  enterprise through reduced taxes                 since 2008. Some small and medium-              paper and wood products equivalent to
  and other benefits.                              sized forest enterprises have closed down       about 180 million cubic metres of logs;
                                                   (SFA, 2008a).                                   these imports accounted for 47 percent of
                                                     The Chinese government has adopted            China’s total wood consumption (SFA,
                                                   a financial and monetary stimulus policy        2008a). The import and export of China’s
                                                   to cope with the crisis. Measures in the        main forest products amounted to US$63
                                                   forest sector include increasing invest-        billion in 2008 (US$27 billion of imports
                                                   ment and expanding domestic demand              and US$36 billion of exports), account-
                                                   to create a favourable environment for          ing for 35 percent of the total output of
                                                   enterprises to develop and to respond to        the forest sector. In total trade value of
                                                   the challenges. This article discusses the      forest products, China ranked second
                                                   impact of the financial crisis on China’s       in the world after the United States of
                                                   forest industry and the strategies and con-     America (SFA, 2008a).
                                                   crete actions taken by the forest sector.
                                                                                                   IMPACTS OF THE FINANCIAL
                                                   A SECTOR OF RAPID GROWTH                        CRISIS
                                                   The forestry sector in China has devel-         Since the second half of 2008, the nega-
                                                   oped rapidly along with the fast overall        tive impacts of the international financial
                                                   growth of the national economy. The             crisis have overlapped with accumulated
                                                   total output value of the sector reached        problems caused by the overwhelmingly
                                                   US$180 billion in 2007. The average             rapid expansion of the forest industry. An
                                                   growth rate of production in the forestry       objective look at the economic situation
                                                   sector, including primary, secondary and        could assist governments and enterprises
                                                   tertiary industry, was 20.6 percent per         in formulating appropriate policies and
                                                   year from 1997 to 2007 (SFA, 2008b).            actions.
                                                   China has become a leading country in
                                                   the production, consumption, import and         Decreased trade
  Qiang Ma is a Ph.D. candidate in the School of
  Forestry Economics and Management, Beijing
                                                   export of forest products in general and        The world economy is in recession as
  Forestry University, Beijing, China, and is      is the world’s top exporter of wood-based       a consequence of the financial crisis.
  Forestry Officer in the Forest Economics and     panels (FAO, 2009) and wood furniture           United States and European purchasing
  Policy Division, Forestry Department, FAO,
  Rome.
                                                   (UNECE and FAO, 2008). The scale of             power has decreased drastically. The
  Jinglong Liu is Professor in the School of       the country’s forest industry has also          construction industry, which has been
  Agricultural Economics and Rural Development,    expanded; more than 15 000 forest enter-        a major consumer of forest products,
  Renmin University of China, Beijing, China.
  Wenxian Du is a Ph.D. candidate in the same
                                                   prises now have at least US$730 000 of          experienced a severe downturn. The
  school.                                          annual sales each (Jia, 2009).                  United States dollar has continued to




Unasylva 233, Vol. 60, 2009
                                                                                 44




                 depreciate against the Chinese yuan.         in terms of export value, it accounted for   percent, larch by 15.2 percent and euca-
                 All these factors have direct impacts on     30.7 percent of the total national value     lyptus by 12.3 percent. The price of euca-
                 China’s trade in forest products.            of major forest products in 2008. But        lyptus in zhangzhou, Fujian Province,
                   China’s foreign trade in forest products   for the first time in the past ten years,    fell 25 percent, from US$95 to $72 per
                 rose by 9.6 percent in 2008. However,        furniture export volume declined nota-       cubic metre, between September and
                 the growth rate decreased by 12.9 per-       bly (14.4 percent) because of reduced        December 2008. The price of poplar
                 centage points (i.e. by 57 percent) from     imports by the United States, Japan and      veneer fell 16.7 percent, and the price of
                 2007. The import value of forest products    European countries. The growth rate          eucalyptus veneer declined 12.1 percent
                 grew 14 percent, and their export value      of furniture export value fell by 18.6       during the same period. The export price
                 rose 6 percent. The total trade value of     percent (China Customs, 2009). China’s       of wood-based panels fell 25 percent
                 major forest products represented 2.5        imports of roundwood (the main forest        and the export price of wooden flooring
                 percent of the national total in 2008,       product import over the past decade)         fell 30 percent from January to October
                 dropping 0.18 percent from 2007 (China       decreased for the first time in 2008, by     2008 (SFA, 2008a).
                 Customs, 2009).                              20.3 percent compared with the same
                   Imports of logs and wood-based pan-        period in 2007.                              Slowed production and closures
                 els and exports of wooden furniture,                                                      With the cooling of market demand, pro-
                 plywood and wood flooring are the            Unbalanced market                            duction has fallen in the wood process-
                 most significantly affected by the cur-      Domestic roundwood demand is lower           ing and wood-based panel, wooden fur-
                 rent economic crisis (SFA, 2009). All        than supply, causing lower prices of         niture and pulp and paper industries.
                 went down in both volume and value           raw materials and wood products from         These products accounted for about 48
                 except for furniture, whose export value     month to month. The domestic property        percent of the total gross added value
                 increased slightly (3.1 percent) because     market remains depressed, resulting in       of the forestry sector in 2008; therefore
                 of price increases from 2007 to 2008.        reduced demand for processed wood            their slowed pace of development has
                 Wooden furniture is among China’s            products. The reduced price of timber        great impact on the value of the sector.
                 most important forest product exports;       has not stimulated demand, and the sup-      For the first ten months of 2008, China’s
                                                              ply backlog continues to grow. Between       wood processing industries suffered a
                 The economic crisis has                      August and November 2008, average            total approximate loss of US$5 billion
                 caused a drop in exports                     roundwood prices in the provinces of         (Global Wood, 2009). The reduced
                 and export prices of
                 Chinese wood products                        Jilin and Shandong decreased notably         export prices of wood-based panels
                 such as flooring, leading to                 – poplar by 4.4 percent, birch by 15.3       and wooden flooring have caused many
                 industry closures                                                                         processing and exporting enterprises to
                                                                                                           close or temporarily stop production
                                                                                                           (see Box opposite). About 20 percent of
                                                                                                           flooring enterprises are facing difficul-
                                                                                                           ties in surviving. More than 50 percent
                                                                                                           of plywood businesses and nearly 65
                                                                                                           percent of primary wood processing
                                                                                                           enterprises have stopped production,
                                                                                                           creating a state of semi-shutdown in
                                                                                                           China (SFA, 2008a). In addition, about
                                                                                                           7 000 furniture enterprises were reported
                                                                                                           to have closed from January to October
                                                                                                           2008 (ITTO, 2009).

                                                                                                           Exchange rate fluctuations
                                                                                                           Exchange rate fluctuations have had
                                                                                                           impacts on enterprise efficiency. The
FAO/FO-6940/J. CARLE




                                                                                                           United States dollar and the euro are
                                                                                                           expected to depreciate further in 2009,
                                                                                                           while the Chinese yuan is expected to
                                                                                                           appreciate. Because of the depreciation




                                                                                                                                    Unasylva 233, Vol. 60, 2009
                                                                     45




                                                                                                ers returning to forest areas from cities
                          Slowdowns and shutdowns: some statistics                              (SFA, 2008a).
                                 from Guangxi Province                                            To boost farmers’ income, the State
                                                                                                Forestry Administration has also intro-
  In 2008, prices of major forest products decreased by about 15 to 20 percent in Guangxi
                                                                                                duced a key measure promoting invest-
  Province. Some 30 to 40 percent of eucalyptus-based plywood enterprises ceased or slowed
                                                                                                ment from the central budget of the
  production because of poor sales. Pine-based plywood enterprises stopped producing, with
                                                                                                Forest Ecological Benefit Compensation
  the exception of a few large businesses producing more than 10 000 m3 per year. In the
                                                                                                Fund, established in 2001. In 2008, 46.6
  peeled veneer industry, about 300 enterprises (45 percent of the total) closed down. The
                                                                                                million hectares of public-benefit forests
  rosin industry is in a slump because of shrinking raw material resources and prices; in the
                                                                                                were incorporated into the compensation
  second half of 2008, rosin production was reduced by 30 to 40 percent compared with the
                                                                                                scheme, with investment of US$500 mil-
  same period of the previous year (Forestry Department of Guangxi Province, 2008).
                                                                                                lion from the fund’s central budget. This
                                                                                                investment included US$290 million
                                                                                                for 26.5 million hectares of collective
  of the United States dollar, the export        investment, stimulate domestic demand          forests, benefiting 20 million families
  value of the China Jilin Forest Industry       and provide a more favourable environ-         and 70 million forest farmers.
  Group Co. Ltd, which was US$75 million         ment for forest enterprise.                      The State Forestry Administration will
  in 2008, will be reduced by US$5 mil-            The central government rapidly pro-          assist with the alleviation of some of the
  lion in 2009. Exchange rate fluctuations       vided a supplementary investment of            problems faced by forest enterprises in
  resulted in losses of US$2.3 million in        US$530 million in the fourth quarter           China. The first measure is to continue
  income in 2008 for Xinyuan Wood and            of 2008, focusing on projects to protect       the policy of reimbursement of the value-
  Forest Hill Wood of the Yanbian Forestry       the natural forests and to establish forest
  Corporation (Forestry Industry of Jilin        plantations designated for environmen-                                      As one means of
  Province, 2009).                               tal protection, including afforestation                                  providing jobs, the
                                                                                                                       Chinese Government
                                                 and reforestation of 2.6 million hec-
                                                                                                                     is boosting investment
  Economic and social impacts                    tares. The newly increased investment                                   in forests, including
  The effects of the crisis in the forest        is expected to boost local and commu-                                       establishment of
                                                                                                                             protective forest
  industry are having wider repercussions        nal input by US$1.4 billion, to provide
                                                                                                                     plantations (mangrove
  for the economy and society. In key            jobs for about 1.2 million rural workers                                 nursery for coastal
  State-owned forest regions, forestry           every year and to employ former farm-                                     protection, Hainan
                                                                                                                                    Province)
  accounts for a large proportion of the
  local economy. Disruption of develop-
  ment in the forest industry has been
  affecting other related industries, and
  local economic development has slowed
  down as a result.
    The financial crisis has also had nega-
  tive impacts on forest dwellers’ liveli-
  hoods and on social stability. Industry
  closures and slowdowns have resulted
  in drastic unemployment and thus in
  local social instability. Reduced income
  and decreased purchasing power have
  restrained increases in consumption. The
  consequent decrease in internal demand
  has also inhibited social development in
  forest areas.
                                                                                                                                                 FAO/FO-6959/J. CARLE




  FACING THE CHALLENGES
  The State Forestry Administration is
  taking a number of measures to increase




Unasylva 233, Vol. 60, 2009
                                                                                   46




                                                                                                           Enterprises using wood
                                                                                                           processing residues
                                                                                                           and small-diameter
                                                                                                           wood will benefit from
                                                                                                           reimbursement of value-
                                                                                                           added tax (eucalyptus
                                                                                                           residues processed into
                                                                                                           chips for use in pulp and
                                                                                                           paper production)




                                                                                                             importing countries such as the United
                                                                                                             States, Japan and the European Union
                                                                                                             (EU) to improve market access for forest
                                                                                                             products.
                                                                                                               Finally, local governments and enter-
                                                                                                             prises are taking various measures to
FAO/FO-6953/J. CARLE




                                                                                                             increase capacity to cope with the chal-
                                                                                                             lenges of financial crisis, such as enhanc-
                                                                                                             ing the raw material base, promoting
                                                                                                             new technology and expanding domestic
                                                                                                             and international markets, for example
                 added tax (VAT) for producers, which        for furniture products increased from 11        through increased product quality and
                 has rebated nearly US$14.4 million          to 13 percent. The rebate for some paper        value added (see Box below). To reduce
                 annually to forest industry enterprises.    products was increased from between             market risks, the use of both domestic
                 Industries producing products using         0.5 and 11 percent to 13 percent. The           and foreign capital to develop both mar-
                 wood processing residues and small-         government is also negotiating with             kets is encouraged.
                 diameter wood also benefit from the
                 same tax policy. The second measure is
                 to aid forest industries by lending with           Pizhou’s government pushes development of panel industry
                 reduced interest rates. In 2008, a total
                 of US$1.26 billion was loaned with a        Pizhou City in Jiangsu Province is one of the four main centres of wood-based panel
                 reduced interest of US$60 million in        processing in China. It has more than 3 000 wood processing enterprises and more than
                 total. In 2009, US$4.5 billion will be      2 200 downstream production lines, which are worth US$2.3 billion in output value. In
                 loaned with the interest rate reduced by    response to the economic slowdown, the city government has taken a variety of measures
                 2 percentage points; the US$90 million      to enhance the area’s international competitiveness and its capacity to mitigate risks.
                 of reduced interest will be paid from the     First, the city has strengthened its industrial raw material base through rapid expansion of
                 State budget. Third, the import of seeds    the local forest area. In early 2009, Pizhou had a total of 2.8 million cubic metres of poplar
                 and provenances of plants and animals       stocks, which guarantee the sustainable development of the local forest industry.
                 to be used as propagation material was        Second, the leading enterprises are supported by new technology. The city government
                 exempted from the VAT on imports. In        has implemented strategies to accelerate technology development and expand the scale of
                 2008, a total of about US$3 million was     production, to develop large-scale forest industry as a driving force of the economy.
                 exempted (SFA, 2008a).                        Third, the city has worked to keep its international market and to expand the domestic
                   The State Forestry Administration is      market. Pizhou is the source of up to 70 percent of national wood-based panel exports. To
                 also taking some measures to stabilize      maintain international cooperation, the city government has set up representative sales
                 wood product exports. A main measure        offices and established selling agent relationships with companies in France, Germany,
                 is to increase the rates of the export      the Republic of Korea and the United States, as well as ten export ports. The govern-
                 tax rebate for 117 wood product items.      ment is expanding the domestic market by establishing new sales offices in 12 large and
                 These items include bamboo products,        mid-sized cities and by setting up 40 Web sites for small and medium-scale enterprises
                 wood-based panels and flooring pro-         to strengthen the exchange of market information on wood-based panels.
                 ducts, for which the export tax rebate
                                                             Source: ITTO, 2009.
                 increased from 5 to 9 percent. The rebate




                                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                                47




                              Enterprises are increasing
                                    capacity to cope with
                                 financial crisis through
                               measures to enhance the
                                   raw material base and
                               promote new technology
                                (vegetative propagation
                                     of young eucalyptus
                                    for high-productivity
                                             plantations)




  DISCUSSION
  The past rapid growth of Chinese pro-
  duction and trade was the result of mul-
  tiple factors, including the low cost of
  labour, technological innovation and the
  development of complete production




                                                                                                                                                   FAO/FO-6946/J. CARLE
  chains. However, since 2008 China has
  encountered some obstacles:
     • non-tariff trade barriers, such as re-
       cently established EU regulations
       for wood and wood products requir-
       ing all the commercial companies                     China will be pressed to maintain its             has been and will mostly likely con-
       in the production chain to submit                    increased share in the international mar-         tinue to be a dominant country in the
       documents certifying the legality                    ket over a long period.                           forestry sector, its exports cannot
       of the raw material – which entails                    Therefore, the authors suggest a need           exceed its imports because China
       additional costs to producers;                       to adjust the rapid growth of China’s             needs to meet domestic demand for
     • enterprises’ lack of confidence be-                  forest industry. The financial crisis can         roundwood and other primary pro-
       cause of trade barriers and a rise in                provide an opportunity:                           ducts rather than seek significant
       the price of raw material;                              • to improve technology, promote               export growth.
     • shrinkage of domestic demand for                          branding and increase the produc-          Furniture exports improved in March
       wood and wood products, especially                        tion scale of forest industry enter-     2009 and showed positive growth com-
       caused by the reduction of investments                    prises;                                  pared with the same month in 2008
       in fixed assets and real estate;                        • to refine the physical distribution      (China Customs, 2009). Although this
     • increased costs of coastal land (where                    of the supply chain, for instance the    may suggest that furniture has been one
       the majority of forest industries are                     closeness of processing enterprises      of the first industries to recover, the
       located), environmental protection                        to markets, since in the furniture       apparent recovery is the result of the
       and labour benefits;                                      industry, for example, transport is      factors mentioned above such as the
     • greatly increased cost of labour.                         the greatest contributor to the cost     export tax rebate policy, stabilization
    The current economic crisis actually                         of the end product;                      of labour prices, the decrease of inter-
  provides opportunities for the Chinese                       • to transfer low value-added produc-      national timber prices and the financial
  forest industry insofar as the domestic                        tion chains to the country of origin     stimulus programme.
  economic stimulus package is expected                          of the raw material, in order to avoid     The crisis also provides a strategic
  to generate consumption of wood and                            the constraints of importing raw ma-     opportunity for addressing problems of
  wood products and to provide benefits                          terials, and to encourage enhanced       wealth distribution and poverty in forest
  such as the continuous reduction of taxes                      cooperation and coordination among       regions, where poor living conditions
  and fees for forestry (e.g. the export tax                     enterprises (although it is crucial to   include problems of transportation, edu-
  rebate) and lower labour costs. This is                        adapt enterprises to advanced indus-     cation, health and culture. Salaries in
  thus a unique and strategic period for the                     trial production processes);             State-owned forest regions are among
  Chinese forest industry to develop and                       • to analyse the strengths and weak-       the country’s lowest, and more than half
  become competitive in global markets.                          nesses of the forest processing indus-   of China’s poor population lives in forest
  However, with trade in decline at present,                     try – recognizing that while China       areas. Over the long term, the large sums




Unasylva 233, Vol. 60, 2009
                                                                   48




invested by the government in forests        directly contribute to climate change                Available at: www.forestry.gov.cn/
and forestry to overcome the financial       mitigation and adaptation efforts. Such              distribution/2009/01/15/ldzq_1000-2009-
crisis will have a high return rate by       investments provide a large number of                01-15-1233.html [In Chinese]
increasing farmers’ incomes, promot-         jobs, which could absorb unemployed                SFA. 2008a. News releases by Mr Cao of the
ing farmer employment and maintaining        workers, specifically those returning                State Forestry Administration. Beijing,
social stability, while also improving the   from cities to rural areas, increasing               China, State Forestry Administration.
environment.                                 their income and consumption. Forestry               Available at: politics.people.com.cn/
  For example, in Jiangxi Province the       could contribute to economic renewal                 GB/1026/8574064.html [In Chinese]
total output of forestry in 2008 was         in unique ways, and could provide a                SFA. 2008b. Annual report of forestry
US$11.1 billion, with an average net         turning point in converting China from               development in China. Beijing, China,
income per farmer of US$99.6, account-       a fast-growing economy into a green                  China’s Forestry Publishing House. [In
ing for 14.9 percent of the province’s       economy. u                                           Chinese]
average rural net income. Jiangxi                                                               SFA. 2009. Rapid report of the financial crisis
Province had 6.8 million former farm-                                                             impacting on China’s forestry enterprises.
ers working in cities, but because of                                                             Beijing, China. [In Chinese]
the economic crisis 1.2 million of them                                                         UNECE (United Nations Economic
have returned to their rural homes since                                                          Commission for Europe) & FAO. 2008.
June 2008. Large-scale afforestation                      Bibliography                            Forest Products Annual Market Review
and reforestation programmes in the                                                               2007–2008. New York, USA & Geneva,
province have absorbed many of these         China Customs. 2009. Statistics. Available           Switzerland, UN. Available at: www.unece.
returnees, including about 18 000 large         at: www.customs.gov.cn                            org/timber/mis/fpama.htm u
and relatively wealthy forest households     FAO. 2009. ForestSTAT statistical database.
each with more than 3.3 ha of forests,          Available at: faostat.fao.org
and 130 000 returned farm workers (Hu,       Forestry Department of Guangxi Province.
2009). Increased investment in forestry         2008. Impacts of global financial crisis on
by the central government has helped to         forestry production in Guangxi Autonomous
reduce disparities in wealth distribution       Region. Available at: www.hnforestry.gov.
and local development.                          cn/listinfo.aspx?ID=193078 [In Chinese]
                                             Forestry Industry of Jilin Province. 2009.
CONCLUSION                                      Analysis and policy suggestions to the
The current economic crisis provides            forestry industry of Jilin Province under
both challenges and opportunities for           the impact of the financial crisis. Available
Chinese forestry. The domestic eco-             at: www.jllycy.com [In Chinese]
nomic stimulus measures are expected         Global Wood. 2009. Financial downturn
to increase investment in forestry at both      brings losses for China’s forest products
the central and local levels, and policies      trade. Available at: www.globalwood.org/
are being established to minimize the           market1/aaw20090101d.htm
negative impacts of the economic cri-        Hu, A. 2009. Proposition for “expanding
sis on forestry and to promote forestry         domestic demand” to speed up forestry
development.                                    development. Forestry Economics, 2: 3–5.
  The economic downturn also pro-               [In Chinese]
vides unique opportunities for devel-        ITTO. 2009. Tropical Timber Market Report,
oping more sustainable approaches in            16–28 February 2009. 14(4). Yokohama,
forest management. The investments by           Japan, International Tropical Timber
central and local governments in forest         Organization.
plantations for environmental protec-        Jia, Z. 2009. Get a clear understanding of the
tion programmes and as a source of raw          new situation, seize the new opportunities,
material for wood industry will help to         create a new comprehensive stage of
rebuild natural assets. Furthermore, the        scientific development for modern forestry.
establishment of forest plantations and         Speech at the meeting of Directors-
improved management of forests will             General of various forestry departments.




                                                                                                                            Unasylva 233, Vol. 60, 2009
                                                                          49




     Coping with crisis in Central Africa: enhanced role for
                  non-wood forest products
                     J.C. Tieguhong, O. Ndoye, P. Vantomme, S. Grouwels, J. Zwolinski and J. Masuch




  Examples from Cameroon and

                                                      T
                                                               he current financial and economic    lation. For resilience in times of crisis,
  other countries highlight the                                crisis has directly and indirectly   many rural communities depend on the
  capacity of non-wood forest                                  affected the drivers of Africa’s     presence of accessible economic oppor-
  products to provide employment,                     recent growth performance (AfDB,              tunities such as the collection of non-
  income and sustenance in times                      2009). Demand for and prices of African       wood forest products (NWFPs) (Arnold
  of crisis – given a suitable legal                  commodities are falling, capital flows        and Townson, 1998).
  framework to help safeguard                         are declining, and promised increased           In a region where forests cover 44.6
  local access and prevent resource                   aid has not materialized. Through con-        percent of the land area (FAO, 2009),
  depletion.                                          tagion, the crisis has affected financial     about 60 percent of the rural population
                                                      markets, foreign exchange markets and         depends on access to forests to meet
                                                      commodity markets – the last being            their daily needs in terms of subsistence,
                                                      of particular importance for forest           employment and cash income (Arnold
                                                      products.                                     and Ruiz-Pérez, 1998; Tieguhong and
                                                        In Central Africa – considered in this      Ndoye, 2004, 2006; Tieguhong and
                                                      article as the ten member countries of        zwolinski, 2008). The main products
                                                      the Central African Forests Commis-           extracted by forest-dwelling people are
                                                      sion (COMIFAC): Burundi, Cameroon,            fuelwood, poles and NWFPs, including
                                                      Central African Republic, Chad, Congo,        bushmeat. Political, economic, technical
                                                      Democratic Republic of the Congo,             and legal entry requirements for earning
                                                      Equatorial Guinea, Gabon, Rwanda and
                                                      Sao Tome and Principe – the crisis has                               A Baka pygmy family
                                                      taken a heavy toll on the economies                                completely dependent
                                                                                                                                on the forest for
                                                      that are highly dependent on natural                                    housing and food:
                                                      resources. Several extractive indus-                                   about 60 percent of
                                                      tries in the Democratic Republic of the                             the rural population in
                                                                                                                         Central Africa depends
                                                      Congo, the Central African Republic and                            on access to forests to
                                                      Cameroon have cancelled or postponed                                meet their daily needs
  Julius C. Tieguhong is with the Technical           projects. Closure of 70 mining companies
  Training and Research Centre for Development
  (TTRECED), Yaounde, Cameroon.                       in the Kantaga region of the Democratic
  Ousseynou Ndoye is Regional Coordinator of          Republic of the Congo, for instance, led
  the FAO project “Mobilization and Capacity          to a loss of up to 200 000 jobs between
  Building of Small and Medium Enterprises
  involved in Non-Wood Forest Products value          the end of 2008 and mid-2009. The recent
  chains in Central Africa”, Yaounde, Cameroon.       crisis is also having serious impacts on
  Paul Vantomme is Senior Forestry Officer (Non-      the timber sector as orders for timber
  Wood Forest Products), and Sophie Grouwels
  is Forestry Officer (Small-Scale Enterprise         from importing countries diminish and
  Development), Forestry Department, FAO,             logging and timber processing companies
  Rome.                                               are forced to cut costs, close concessions
  J. Zwolinski is Head of the Forestry Programme,
  Faculty of Science and Agriculture, University of   and lay off workers.
  Kwazulu-Natal, Scottsville, South Africa.             Apart from the overall macroeconomic
  J. Masuch is FAO Associate Professional Officer     impacts, the crisis presents a gloomy
                                                                                                                                                J.C. TIEGUHONG




  with the project “Contribution of Non-Wood
  Forest Products to Poverty Alleviation and Food     situation for rural households, which
  Security”, Yaounde, Cameroon.                       make up 62 percent of the region’s popu-




Unasylva 233, Vol. 60, 2009
                                                                       50




income from NWFP gathering are rela-          in cities had to return to their villages,              (Tieguhong and Ndoye, 2006). Research
tively few (in comparison with timber         and NWFPs began to substitute now                       in Cameroon has shown that NWFPs
enterprise, for example). Particularly        less affordable products. For example,                  are of great economic importance to
in times of crisis, NWFPs are a major         the currency devaluation increased the                  rural households, traders and the national
source of supplementary income and            price of beer and whiskey and made palm                 economy (Ndoye and Tieguhong, 2004;
work for those unable to obtain formal        wine more attractive; and the price of                  Tieguhong and Ndoye, 2006) (Table).
or other sufficient employment; they          pharmaceutical products increased, so                   Between 1999 and 2003, the regenera-
also provide food, medication and other       rural dwellers and poor urban house-                    tion tax owed to the Cameroon Govern-
products for household and subsistence        holds increasingly turned to herbal medi-               ment by NWFP licensees (10 CFA francs
use, thus acting as a “safety net”. But       cines for their health care (Ndoye and                  [US$0.02] per kilogram of NWFP har-
economic crisis can aggravate conflict        Tieguhong, 2004).                                       vested and sold, ostensibly for replanting
among users (and between subsistence            Before the current crisis, the region’s               harvested plants) was alone worth over
and commercial users) by creating             gross domestic product (GDP) per capita                 350 million CFA francs (US$700 000)
increased dependence on and competi-          was already low, ranging from US$107 in                 (Betti, 2004) – and this figure does not
tion for NWFP resources.                      the Democratic Republic of the Congo to                 take into account other taxes, e.g. on
  This article reviews the importance of      US$5 915 in Equatorial Guinea (where                    exports and on NWFP processing indus-
NWFPs as a source of self-employment,         oil exploration has raised per capita GDP               tries. The international market value of
income, livelihood and sustenance in          from previously among the lowest in the                 NWFPs in Cameroon is also significant.
Central Africa, with particular refer-        region). Apart from Equatorial Guinea,                  For example, export value for 206 tonnes
ence to Cameroon and the Democratic           which has an annual GDP growth rate                     of Dacryodes edulis (an edible fruit rich
Republic of the Congo. It outlines how        of just over 16 percent, growth rates are               in fats and oils) to France and Belgium in
free access to forest resources must be       below 5 percent; the Central African                    1999 amounted to US$1.7 million. The
guaranteed for poor forest-dependent          Republic is in recession with –0.8 per-                 annual market value of D. edulis fruits
people so as to reduce poverty and help       cent growth. Meanwhile, the region’s                    in Cameroon was estimated at over US$7
diminish the negative impacts of the          population (almost 117 million in 2006)                 million (Awono et al., 2002).
global financial and economic crisis for      continues to grow quickly, at an average
rural households. Finally, it describes the   annual rate of 2.5 percent (FAO, 2009).                 Household economies
development of a legal framework for                                                                  The importance of NWFPs in Central
commercial use of NWFPs, to safeguard         ECONOMIC CONTRIBUTION OF                                Africa is most visible at the household
people’s rights of access and prevent         NON-WOOD FOREST PRODUCTS                                level. For instance, Tieguhong (2009)
depletion of the resources.                   National economies                                      found that in five villages surrounding
                                              In Central African countries, data on                   Lobeke National Park in Cameroon,
NOT THE FIRST CRISIS                          NWFPs are not included in national                      household-consumed goods represented
The countries of Central Africa already       production and trade statistics, so their               44.6 percent of the cash flow to sur-
experienced more than one economic            contribution to GDP is poorly known                     veyed households. Goods associated with
crisis in the mid-1980s and the devalua-
tion by 100 percent of the local currency     Some NWFPs of high economic value in Cameroon
(the CFA franc) in the mid-1990s. Rural        Product                          Part of plant used              Use                 Value
                                                                                                                                    (US$)
people’s reliance on NWFPs increased as
a result. In Cameroon, for example, the        Edible plantsa

crisis lowered the financial profitability     Cola acuminata                         Seed               Snack, stimulant,        212 000
                                                                                                         aphrodisiac
of cocoa in the international market, and
                                               Dacryodes edulis                       Fruit              Food (vegetable)         244 000
induced rural communities to diversify
their income sources (to minimize the          Irvingia spp.                          Seed               Condiment                302 000

risk associated with cocoa farming)            Ricinodendron heudelotii               Seed               Condiment                460 000
(Ndoye and Kaimowitz, 2000) and to             Medicinal plantsb
turn increasingly to NWFPs for income          Pausinystalia johimbe                  Bark               Aphrodisiac,             600 000
(Tieguhong and Ndoye, 2004). Further-                                                                    stimulant, tonic

more, the economic crisis increased the        Prunus africana                        Bark               Prostate treatment       700 000

level of poverty in rural areas as many       Source: Ndoye, 1995 (edible plants); CARPE, 2001 (medicinal plants).
                                              a
                                                January to July in the humid forest region.
people who had had minimum-wage jobs          b
                                                Annual value at national level.




                                                                                                                               Unasylva 233, Vol. 60, 2009
                                                                                             51




  shelter and food security dominated the                                       In Cameroon,
                                                                         fruits of Dacryodes
  income generated by the households,                                      edulis are of great
  with forest products being the main and                              economic importance
  most valuable source of them (Tieguhong                                    to the economy,
                                                                         with annual market
  and zwolinski, 2008) (Figures 1 and 2).                                 value estimated at
  NWFPs were also found to constitute                                      over US$7 million
  the main source of income for 39 per-                                  (Makenene market)
  cent of women in Nko’ongop village,
  located at the periphery of Campo
  Ma’an National Park in South Cameroon
  (Sonne, 2001).
    In Équateur Province of the Democratic
  Republic of the Congo, charcoal, palm
  wine and edible leaves of Gnetum spp.
  are the NWFPs that provide the high-
  est profit to traders, averaging US$216,
  $166 and $131 per month, respectively.
  These profits are higher than the aver-
  age wage of secondary school teachers
  (US$50 to $70). In the same province,
  households selling six NWFPs (Maran-




                                                                                                                                                                   O. NDOYE
  thaceae leaves, caterpillars, mushrooms,
  charcoal, Gnetum spp., palm wine)
  obtained, on average, a monthly revenue                              of US$84, comparable to that of a civil            gained an average monthly income of
                                                                       servant (US$80) (Ndoye et al., 2007). In           US$270, which is higher than that of a
  1
                                                                       Bandundu Province, traders in these same           medical doctor (US$190 to $250).
  Mean annual household                                                products gained a profit of US$40 per
  income by activities                                                 month. Traders from Bandundu export-               Employment
  registered in villages near
  Lobeke National Park in
                                                                       ing leaves of Gnetum spp. to Kinshasa              NWFPs have a major role in rural
  Cameroon (US$)                                                                                                          employment and income generation,
                                                                                                                          mostly in the informal sector. A survey
                                                                                                                          of a heavily forested zone in southern
                         Forest goods                                                               239.3a
                                                                                                                          Ghana showed that 10 percent of the
                              Agriculture                                      135.2b                                     rural population gains some income
                                                                                                                          from activities in the NWFP value chain
                         Wage labour                                        117.3c                                        (Arnold and Townson, 1998). If a similar
                                                                                                                          percentage is assumed in Central Africa,
               Grants and donations                               77.2d
                                                                                                                          it can be estimated that about 6.5 mil-
                   Livestock rearing
                                                                 75d
                                                                                                                          lion people in the region are engaged in
                and animal products
                                                                                                                          NWFP activities (based on population
        Small business enterprises                             61.6d                                                      estimates from FAO, 2009).
                                                                                                                            Rural women are particularly involved
            Fishing and aquaculture                    24.5e                                                              in gathering and processing NWFPs and
                      Prospecting for                                                                                     are likely to be the main beneficiaries or
                                                3.7f
                    gold and minerals                                                                                     losers from forest resource management
                                            0            50        100         150        200      250         300        interventions in Central Africa that may
                                                                              Income                                      affect free access to the forests. In Cam-
       Source: Tieguhong and Zwolinski, 2008.                                                                             eroon, for example, women represent 51
       Note: Means with different letters (a–f) are statistically significant at 5 percent level. For example, the mean   percent of the population, but more than
       income from forest goods is statistically different from the mean income from agriculture, while the mean
       income from grants and donations is statistically the same as that from livestock rearing and animal products.     70 percent of them live in rural areas
                                                                                                                          and exploit natural resources to meet




Unasylva 233, Vol. 60, 2009
                                                                             52




                                                                              2                       these resources; the increasing access
                                                                              The most important
                               Bamboo
                                                                              forest products in
                                                                                                      to trade (national, regional and global)
                         Poles          Rattan
                                1.6%                                                                  facilitated by the expanding network of
                         2.1%           1.5%                                  terms of income and/
                                                 Three other                  or subsistence for
                                                  products
                                                                                                      roads and logging tracks; or the surge
                                                                              households surveyed
      Honey          Nuts                           2.5%                      in villages near
                                                                                                      in subsistence and commercial demand
      2.6%           2.6%
                                                                              Lobeke National Park,   arising from the ongoing recession in
   Woven products                                                             Cameroon                the timber sector. The national forest
                                                               Wild fruits
       2.8%                                                     34.5%                                 codes and legislation elaborated in the
  Medicinal plants                                                                                    1990s did not address these weaknesses
       3.1%
                                                                                                      of the traditional regulatory framework,
                                                                                                      partly because they were more geared to
  Wild vegetables                                                                                     timber products.
        3.4%                                                                                            Through a fully participatory process
                                                                                                      within a recently completed regional
        Woodfuels                                                                                     project (2006–2008), major forest stake-
         17.6%                                                                                        holders and representatives of govern-
                                                                                                      ments, the private sector and local peo-
                                                                                                      ple’s associations in Central Africa have
                                                                                                      developed innovative model legislation
                                                 Bushmeat                                             governing the subsistence and commer-
                                                  25.6%
   Source: Tieguhong, 2009.                                                                           cial use of NWFPs in Central Africa. The
                                                                                                      model law – Directives sous-régionales
the livelihood needs of their families.           LEGAL AND INSTITUTIONAL                             rélatives à la gestion durable des produits
More than 94 percent of 1 100 NWFP                DIMENSIONS                                          forestiers non ligneux d’origine végétale
traders surveyed in rural and urban mar-          As long as NWFPs were primarily used                en Afrique centrale (FAO, 2008) – is
kets in Cameroon were women (Ndoye,               for subsistence, centuries-old informal             designed to promote business develop-
Ruiz-Pérez and Eyebe, 1997). In the               rules and customary practices were                  ment but also to protect the rights of the
Democratic Republic of the Congo, more            sufficient for overall use and steward-             weakest segments of society to access
women than men were observed to par-              ship of the forests by many diverse                 forest resources for their subsistence
ticipate in the bushmeat trade (Tshombe           user groups. However, the traditional               needs. It serves as a blueprint that can
et al., 2000); women represented 80               regulatory framework is no longer                   be adapted to national circumstances
percent of bushmeat traders in Kinshasa           adequate to deal with the needs of                  for integration in national forest legis-
markets (Ndona, 2004).                            increasing populations; the complexi-               lation. The model law was endorsed by
  Domestication of wild resources (see            ties of expanding commercial use of                 all COMIFAC countries in November
Box) presents a promising opportunity
for investment and for employment (or                   Rural women are
                                                    particularly involved
self-employment) for local farmers and                      in gathering,
NWFP gatherers – who may well be the                     processing and
same. However, neither domestication                   selling non-wood
                                                         forest products
nor increasing the gathering and hunting          (women selling leaves
pressure of NWFP species can go on in                 of Gnetum spp. in
an unregulated way, as it may exclude                  Kinshasa market,
                                                   Democratic Republic
the weakest members of rural society                       of the Congo)
from continuing their NWFP gathering
activities for subsistence and income
generation. Furthermore, unregulated
exploitation of any NWFP may lead to
overharvesting of the species and forest
degradation. Hence the need to put in
place a regulatory framework governing
                                                                                                                                                      O. NDOYE




access to the forests for all users.




                                                                                                                               Unasylva 233, Vol. 60, 2009
                                                                    53




  2008. Cameroon and the Democratic                 ties and procedures for implementa-        CONCLUSION AND
  Republic of the Congo are already in the          tion of the law.                           RECOMMENDATIONS
  process of adapting and implementing            Additional institutional support to          As a consequence of economic crisis, the
  the legislation at the national level, and    increase the contribution of NWFPs             pressure on many NWFPs has increased,
  three more countries (Congo, Gabon            might include:                                 which could lead to overexploitation
  and the Central African Republic) are           • capacity-building for actors involved      of these species. But with sustainable
  beginning to do so.                               in NWFP value chains;                      harvesting techniques and domestica-
    The model legislation is intended to          • promotion of local community               tion, the economic and ecological ben-
  supplement relevant traditional custom-           participation in all aspects of forest     efits could be substantial. The NWFP
  ary rights and enables self-employment            management, and sharing of benefits        sector could benefit substantially from
  in commercialization of NWFPs to                  derived from forest products;              investment and the development of local
  become formal and legal. It covers:             • analysis of institutional factors that     technologies, increased quality stand-
     • access to NWFPs: user rights and             favour or disadvantage access to           ards and recognition of property rights of
       norms and procedures for obtaining           benefits along the value chain;            local communities. The main problem is
       harvesting titles;                         • initiatives to ensure access to re-        to translate policies from official, well-
     • NWFP market chains: procedures               sources and to empower weaker rural        designed texts into concrete develop-
       for harvesting, transport, processing        populations and minority groups,           ment activities on the ground.
       and commercialization;                       especially once NWFP values be-              Domestication of species providing
     • fiscal arrangements: taxation, spe-          come important;                            NWFPs offers great potential as an
       cial funds;                                • dissemination and implementation           income and/or employment source, but
     • infractions and sanctions;                   of the legal framework, including          it requires large investments which are
     • institutional arrangements and capa-         identification of inequities in trade      not easily available during a financial
       city building;                               transactions in terms of selected          crisis, and definitely not to poor forest
     • identification of competent authori-         commodity chains.                          dependent people. “Small is beautiful”,
                                                                                               and it is likely to be through small-scale
                                                                                               investment that the NWFP sector can
                                 Opportunity for investors:                                    contribute most during the current cri-
                          domestication of NWFP-producing species                              sis. The sector involves numerous col-
                                                                                               lectors, using simple tools and requir-
  Since the economic crises of the 1980s, cocoa farmers in the humid forest zone of            ing little investment, who can easily
  Cameroon have diversified their farm income by planting Irvingia spp. and Ricinodendron	     adapt to changing economic patterns
  heudelotii, both used as condiments (Tieguhong and Ndoye, 2006). Between 1996 and            to improve their livelihoods. However,
  2003, the average price of 1 kg of the fruits from these species in the Yaounde region of    an appropriate legal and institutional
  Cameroon was 200 percent higher than the average price of 1 kg of cocoa beans (Ndoye         framework must be in place to prevent
  and Tieguhong, 2004). This comparison suggests that NWFPs should not be overlooked           the weakest segments of society from
  as a source of income generation in Central Africa.                                          exclusion and to avoid resource degra-
    Another exciting NWFP with potential that could be developed further is Prunus	africana,   dation. The NWFP model law project in
  whose bark has medicinal uses. P.	africana is a major economic resource in many countries    Central Africa has piloted a participatory
  of East, West and Central Africa; it is already cultivated, but only on a small scale to     process for incorporating rights-based
  date. According to Tchoundjeu (2004), the world market requires about 5 million trees        legislation into national government
  of P.	africana	in cultivation to satisfy demand. This could come from 1 farmer growing       programmes – a prerequisite for sup-
  5 million trees, 10 farmers growing 500 000 trees, 100 farmers growing 50 000 trees, 1 000   porting self-employment and small-scale
  farmers growing 5 000 trees, 10 000 farmers growing 500 trees, 100 000 farmers growing       enterprises; and it has demonstrated the
  50 trees or 1 million farmers growing 5 trees. Economic analysis (Tieguhong and Ndoye,       value of involving regional structures
  in preparation) shows that 10 000 farmers (with average age of 30 years and average          (in this case COMIFAC) to facilitate
  household size of two) each growing 500 trees of	P.	africana to maturity and exploiting      harmonization and collaboration among
  their bark following sustainable harvesting methods with rotation of five years, would       the countries of a region, enabling them
  each earn an average sustainable annual income of 975 254 CFA francs (US$1 950), more        to have a comparable basis for their rules
  than twice the country’s per capita income. Perhaps investment of a few million dollars      and laws. u
  would suffice to realize this potential in less than two decades.




Unasylva 233, Vol. 60, 2009
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                                                  FAO. 2009. State of the World Forests 2009.         medicinal plants of West and Central Africa.
                                                    Rome.                                             In Proceedings of the fifth Conference on
                                                  Ndona, G.J.C. 2004. Contribution socio-             Central African Moist Forest Ecosystems
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  Global economic                                         the economy to grow and create jobs in
                                                          the future;
                                                                                                         Based on commitments made in the char-
                                                                                                       ter, the Forestry Branch has requested addi-

  crisis and long-term                                  • maintaining the planned high levels of
                                                          investment in public sector infrastructure
                                                                                                       tional funding of 100 million rands (US$12
                                                                                                       million) from treasury to restore degraded
  development:                                            and encouraging private-sector actors to     forests and restock temporarily unplanted
                                                          maintain and increase their fixed direct     areas of about 17 000 ha. It is envisaged that
  a view from the                                         investment;                                  these efforts will absorb some retrenched
                                                        • ensuring that interventions are timely and   workers and also cater for an increase in
  South African                                           appropriately targeted and tailored.         afforested land, while also helping to combat

  forestry sector                                      The Department of Agriculture, Forestry and
                                                     Fisheries endorses a combination of mea-
                                                                                                       the negative effects of climate change.
                                                                                                         The forest industry is the fourth largest
                                                     sures for public and private-sector employ-       exporter in South Africa. From a macroeco-
                                                     ment and training to help avoid massive job       nomic point of view, the government recog-
  R.N. Heath and S. Chipeta                          losses in the period ahead. Under the auspices    nizes the value of a competitive exchange
                                                     of the Expanded Public Works Programme,           rate. With the rand currently depreciated,
                                                     the Forest Department will accelerate imple-      there are opportunities to increase employ-
  While safeguarding domestic                        mentation of labour-intensive programmes          ment and generate export commodities in
  industries and jobs, crisis                        such as Working for Woodlands (to reha-           the forest sector. The national response to
  mitigation policies and measures                   bilitate degraded woodlands), Working for         the global economic slowdown is to rebuild
  should also help to build growth                   Water (a programme for removing invasive          local industrial capacity and avoid deindus-
  prospects for the world economy.                   species) and Working on Fire. Through these       trialization during the period ahead. Critical
                                                     programmes appropriate training courses will      to such a strategy is the need to improve
                                                     be offered, accredited by the relevant authori-   the competitiveness and performance of key
  The world financial system meltdown and            ties. Equitable representation of unemployed      local industries, particularly of vulnerable
  resulting economic crisis have caused a            youth, women and disabled people will be          sectors and small businesses.
  growth crisis in African economies. A great        sought to satisfy social as well as environ-        Countries and the international commu-
  concern is that the growth crisis may degene-      mental needs. So far (to August 2009), South      nity need to monitor and review their crisis
  rate into a development crisis as the recession    Africa has announced a major public invest-       mitigation policies and measures carefully
  deepens. Like other developing countries           ment programme of approximately 787 bil-          to ensure that while safeguarding domestic
  which are strongly integrated in the world         lion rands (US$101 billion) over the three        industries and jobs, they do not unintention-
  economy and significantly dependent on its         financial years to March 2012 to assist in        ally constrain trade growth, which could
  good health, South Africa has been affected        these processes.                                  undermine the economic growth prospects
  by the sharp fall in demand for its export           The Forestry Sector Transformation Charter      of other countries. Given the intricacies of
  products and the drop in prices of key export      which was approved by Parliament in 2008          the crisis, this is an opportune time to review
  commodities.                                       (see www2.dwaf.gov.za/webapp/Documents/           development strategies. The impact of the
    The South African Government has pro-            ForestSectorCharterSection9Gazzette.pdf)          crisis on international trade and investment
  posed a number of broad principles to govern       provides a framework for efforts to abate the     must be addressed as a key element of the
  South Africa’s response to the crisis. These       current crisis. The charter guides the diversi-   multilateral agenda. Individual countries
  include:                                           fication of products and development of new       must also put in place development strate-
    • avoiding placing the burden of the downturn    products to widen market access. Further-         gies that can mitigate the negative effects
       unfairly on the poor and the vulnerable;      more, it steers financial support of emerging     of the crisis on economic growth and devel-
    • protecting and supporting activities           and small, medium and micro enterprises           opment. Governments must emphasize a
       aimed at strengthening the capacity of        (SMMEs). The Department of Agriculture,           focus on development gains.
                                                     Forestry and Fisheries is developing a contract
                                                     with the Industrial Development Corporation
                                                     (IDC) to administer soft loans to SMMEs in
                                                     forestry. In addition to enabling coordinated
  Sebueng Chipeta is Chief Director, Forestry        and accelerated financing of SMMEs, the
  Regulation and Oversight, and Ronald N.
  Heath is Assistant Director, Forestry Policy and   funds secured from IDC will be used to avoid
  Strategy, in the Forestry Branch, Department of    job losses and increase employment in the
  Agriculture, Forestry and Fisheries, Pretoria,     forest sector.
  South Africa.




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                                                                               fao forestry


                        COFO 2009/World Forest Week
                        “Forests in a changing world” was the overall theme of the
                        nineteenth session of the Committee on Forestry (COFO), held
                        at FAO headquarters in Rome from 16 to 20 March 2009. Under
                        the banner of the first World Forest Week, the biennial forestry
                        meeting of FAO member countries was expanded to welcome the
                        participation of many partner organizations. The event attracted
                        over 550 participants.
                          The keynote speaker was Gro Harlem Brundtland, the United
                        Nations Secretary-General’s Special Envoy on Climate Change,
                        formerly Prime Minister of Norway and head of the World




                                                                                                                                                                               IISD/D. BIRCHALL
                        Commission on Environment and Development (best known for
                        developing the broad political concept of sustainable development,
                        published in the 1987 report Our common future). In her address,
                        Brundtland called for mutually supportive forest and climate               A giant chair donated by Federlegno, the Italian Wood Industry
                        change policies and emphasized the imperative of including                 Federation, towers over the COFO exhibit in the FAO atrium – a reminder
                                                                                                   that using wood is good
                        forests in a post-Kyoto Protocol climate agreement, noting that
                        reducing deforestation and forest degradation would be the most
                        cost-effective way to address climate change. She underlined,              forestry agencies need to adapt to economic, political, social,
                        however, that the future agreement must also safeguard the rights          environmental and technological changes at all levels, so as to
                        of forest-dependent people.                                                become more responsive to society’s needs and more efficient in
                          Sustainable forest management in relation to climate change              delivery of economic and environmental services.
                        was one of the two main topics addressed at COFO. Presentations              In parallel to sessions presenting official COFO agenda items,
                        noted that climate change concerns raise potential for financing           approximately 20 special World Forest Week events were held to
                        forest management activities – particularly through the inclusion          enable greater participation by intergovernmental organizations
                        of a mechanism for reducing emissions from deforestation and               and more informal, off-the-record discussion among countries.
                        degradation (REDD) in the post-2012 climate change agreement.              Topics included, among others, the future of public forestry
                        Delegates emphasized that any REDD arrangement must take into              research; new perspectives in forestry education; fire and climate
                        account the range of values forests provide.                               change; forest adaptation to climate change; and access to
                          The discussions underscored the linkages between sustainable             financing for sustainable forest management. Featured speakers
                        forest management and REDD, and stressed that to adapt to                  included leaders and representatives of many CPF partner
                        and mitigate climate change, sufficient financial resources must           organizations.
                        be devoted to sustainable forest management. The joint climate               One of the special events was a dialogue among heads of forestry
                        change strategy presented by the Collaborative Partnership on              departments, which gave participants an opportunity to discuss
                        Forests (CPF) (see Unasylva 231/232, p. 87) underlined the need            the challenges they face – such as budget constraints; changing
                        for the forestry community to present a united front to ensure that        societal and stakeholder expectations, needs and activities; shifting
                        sustainable forest management is included in the prospective               government priorities and structures; and environmental stresses
                        climate agreement.                                                         such as climate change, fires, pathogens and pests – and to
                          The second main theme at COFO was institutional change in                share innovations for dealing with them, including creative funding
                        a dynamic world. The discussions focused on how public sector              processes and partnerships with the private sector.
                                                                                                     Finally, a special session addressed the impacts of global
                                                                      Gro Harlem                   economic turbulence on the forest sector. Panelists raised
                                                                      Brundtland delivers
                                                                                                   concerns that the global economic downturn would be likely to
                                                                      keynote speech
                                                                      at the nineteenth            lead to reductions in investment and wood supply, job losses and
                                                                      session of the FAO           overexploitation of forest resources for subsistence. However a
                                                                      Committee
FAO/11977U6531/G. NAPOLETANO




                                                                                                   main thrust of the session was to highlight the role that sustainable
                                                                      on Forestry,
                                                                      17 March 2009                forest management can play in responding to the crisis. The
                                                                                                   central message was that investment in forestry could not only
                                                                                                   create millions of jobs, but would address climate change at the
                                                                                                   same time. This session provided the basis for many of the articles
                                                                                                   in this issue of Unasylva.




                                                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                              57




                                                              fao forestry



                                          FAO Strategy for Forests and Forestry endorsed
  At its nineteenth session, the Committee on Forestry (COFO) endorsed             Focus on results
  the new FAO Strategy for Forests and Forestry, which was developed               At the Conference of FAO in November 2008, member countries
  through a consultative process as requested by the eighteenth ses-               approved in principle a revised strategic framework based on 11 stra-
  sion of the committee in 2007.                                                   tegic objectives for the Organization as a whole; these include one
    The new strategy is aligned with ongoing reforms in FAO, and in                forestry-specific objective: “Sustainable management of forests and
  particular with the new framework of results-based management                    trees”. The FAO Draft Strategic Framework 2010–2019 identifies six
  adopted by the Organization in accord with the recommendations of                main organizational results directed towards meeting this objective:
  an Independent External Evaluation carried out from 2005 to 2008.                   • Policy and practice affecting forests and forestry are based on
  The FAO reforms are being implemented through an Immediate Plan                       timely and reliable information.
  of Action adopted in November 2008.                                                 • Policy and practice affecting forests and forestry are reinforced
    The new strategy for forests outlines three global goals for society                by international cooperation and debate.
  as a whole. Paraphrased, these include:                                             • Institutions governing forests are strengthened and decision-
    • informed, coordinated, transparent and participatory decision-making              making improved, including involvement of forest stakeholders
        across sectors, based on timely and accurate information;                       in the development of forest policies and legislation, thereby
    • increased contribution of trees, forests and forestry to livelihoods,             enhancing an enabling environment for investment in forestry
        poverty alleviation, food security and sustainable supply of                    and forest industries. Forestry is better integrated into national
        raw materials and energy, and increased recognition of these                    development plans and processes, considering interfaces between
        benefits;                                                                       forests and other land uses.
    • good forest management practices, leading to increased forest                   • Sustainable management of forests and trees is more broadly
        resources and thus a greater contribution of forests and trees to               adopted, leading to reductions in deforestation and forest degrada-
        mitigating climate change, combating desertification, conserving                tion and increased contributions of forests and trees to improve
        biodiversity and ensuring water quality – as well as increased                  livelihoods and to contribute to climate change mitigation and
        recognition of these ecosystem services.                                        adaptation.
    The strategy identifies nine core functions of FAO in forestry:                   • Social and economic values and livelihood benefits of forests and
    • providing long-term perspectives and leadership in monitoring                     trees are enhanced, and markets for forest products and services
        and assessing trends in forest resources and services, and the                  contribute to making forestry a more economically viable land-use
        production, consumption and trade of forest products;                           option.
    • generating, disseminating and applying information and know-                    • Environmental values of forests, trees outside forests and for-
        ledge, including statistics.                                                    estry are better realized; strategies for conservation of forest
    • leading the development of voluntary guidelines, supporting the                   biodiversity and genetic resources, climate change mitigation
        development of national legal instruments, and promoting their                  and adaptation, rehabilitation of degraded lands, and water and
        implementation;                                                                 wildlife management are effectively implemented.
    • articulating policy and strategy options and advice to improve the           These results cannot be achieved by FAO alone, but FAO can make a
        social, economic, and environmental aspects of forest develop-             significant contribution. For each result, the strategy identifies priori-
        ment and conservation;                                                     ties to guide FAO during the period 2010–2013. Specific outcomes
    • providing technical support to promote technology transfer, cata-            and indicators are being developed under the the FAO Medium-Term
        lyse change and build effective and sustainable institutional              Plan, and progress will be monitored and reported to FAO governing
        capacity for sustainable forest management;                                bodies, including COFO.
    • undertaking advocacy and communication to mobilize political will
        and to promote global recognition of required actions to achieve
        sustainable forest management;
    • bringing integrated interdisciplinary and innovative approaches
        to bear on work in the forest sector and in other key sectors that
        have an impact on forests;
    • working through strong partnerships and alliances where joint
        action is needed;
    • facilitating linkages between national, regional and global levels.




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                                                           fao forestry


Industry committee ponders impacts of financial                                   The day before the ACPWP meeting, FAO also hosted the
crisis                                                                          annual meeting of the International Council of Forest and Paper
The global economic decline was high on the agenda when the                     Associations (ICFPA).
Advisory Committee on Paper and Wood Products (ACPWP), one                        For more information about ACPWP, see: www.fao.org/
of FAO’s statutory bodies in forestry, met at FAO headquarters in               forestry/51819
Rome for its fiftieth session on 26 May 2009.
  The committee, comprising senior executives from the private
industry sector worldwide, meets yearly to provide guidance to                  Forest tenure, governance and enterprise in Central
FAO on issues relevant to the paper and forest products industry,               and West Africa
in support of member countries’ efforts to progress towards                     In Central and West Africa, as in many regions, weak governance
sustainable development.                                                        and insecure tenure rights often undermine the contributions of
  Country reports prepared by ACPWP members highlighted                         forestry to local, national and regional livelihoods and economies,
emerging issues and business developments over the preceding                    and to the health of the environment. Clarification and recognition
year. The main emerging issues were identified as climate change;               of tenure rights can open up opportunities for forest communities
potential market imbalances due to emission trading schemes;                    to invest in and enhance the sustainable use of forests.
water supply and quality; certification issues, including the difficulty          At the International Conference on Community Forest
of certifying smallholdings; the energy market; and corporate                   Management and Enterprise, held in Brazil in 2007, African
social responsibility.                                                          participants called for a follow-up conference to chart a time-
  The most important business development identified in the                     bound plan for systematically expanding community forest tenure,
country reports was without question the precarious economic                    management and enterprise in Africa to agreed, achievable
situation, which had resulted in difficulties in obtaining loans, loss          targets by 2015. To this end, the Ministry of Forests and Wildlife
of retail sales and consumer confidence and decreased advertising               of Cameroon hosted the conference Forest Tenure, Governance
expenditures. Lower production costs and raw material prices were               and Enterprise: New Opportunities for Livelihoods and Wealth
seen to provide relief, but lower freight rates were exacerbating               in Central and West Africa, from 25 to 29 May in Yaounde,
competition. The committee noted that the exceptionally uncertain               Cameroon. The objective of the conference was to catalyse
economic situation calls for a rapid ability to adjust, as well as for          new and wider-ranging actions by governments and civil society
measures to improve productivity and competitiveness. As export                 organizations towards more secure land and forest tenure in the
demand wanes, cost competitiveness becomes increasingly                         region.
important.                                                                        The meeting was organized by FAO, the International Tropical
  The session that focused on the impacts of the financial crisis               Timber Organization (ITTO), the Rights and Resources Initiative
on the forest industry also looked at some ways out of the                      (RRI), the International Union for the Conservation of Nature
crisis, with particular attention to green building and to closer               (IUCN), the Center for International Forestry Research (CIFOR),
integration of biofuels and green chemicals with forest industries.             the World Agroforestry Centre (ICRAF), Intercooperation, the
Increased building with wood and substitution of wood for non-                  Global Alliance of Community Forestry (GACF) and the Central
renewable building materials were perceived as a potential basis                African Forests Commission (COMIFAC). It attracted close to 250
for a renaissance in sawmilling and woodworking industries, for                 participants from all regions.
example, especially in Europe. Some of the leading international                  The conference comprised nine sessions addressing:
forest corporations have announced intentions to integrate biofuel                • current status of tenure and emerging lessons from ongoing
production in pulp mill processes. Biorefinery technologies being                   reform;
pursued include production of biodiesel, bioethanol and heavy                     • tenure reform – experiences and lessons from other countries
fuel oils from forest residual biomass such as bark, stumps and                     (with positive examples from Brazil, China, Guatemala, Mexico,
branches; and synthesis and purification of gas from wood. In                       Mozambique, Nepal, the United Republic of Tanzania);
terms of the more traditional wood energy market, the downturn in                 • the role and perspectives of forest communities in the forest
wood prices bodes well for wood pellet manufacturing.                               reform process;
  Another session addressed the need for industry to work                         • tools and strategies for recognizing and mapping rights;
together to communicate positive messages and reverse public                      • the role of tenure and governance in climate change mitigation
misperceptions about wood and wood industries.                                      and adaptation;
  The committee also reviewed industry-relevant developments                      • experiences with conventional and alternative tenure and wood-
related to forests and climate change, and avenues for                              based enterprises;
engagement of forest industry in ongoing climate change                           • experience with extraction and management of non-wood forest
negotiations.                                                                       products;




                                                                                                                                 Unasylva 233, Vol. 60, 2009
                                                                          59




                                                           fao forestry


     • reforming land tenure – how to ensure effective reforms and             Yunnan Province (southwestern China) to promote CBFiM in
       implementation;                                                         China and elsewhere in Asia, via the use of local and global
     • next steps to accelerate reforms in Central and West Africa.            examples. In Asia the frequency and intensity of fires, and the
    The conference concluded with agreement on a time-bound set                severity of pollution problems from the associated smoke and
  of activities for implementation by governments and social actors,           haze, has increased over the past 30 years. In China, forest fires
  the “Objective 2015”. These activities include:                              are largest and most numerous in remote, highly forested regions
     • prioritizing forest tenure reform as a national development             of Heilongjiang, Inner Mongolia, Yunnan, Guangxi and Guizhou,
       issue in all African countries by 2015;                                 where climates are extreme (including extreme wind events) and
     • reversing the assumption that all lands are State owned;                both access and fire prevention and control facilities are limited.
     • recognizing the human rights of all ethnic and minority peoples         At the workshop, forest fire scientists, managers, policy-makers
       by 2015, including their rights to land and access to resources;        and non-governmental organizations from Northeast Asia sought
     • empowering communities to claim their rights by expanding               viable fire management options for their particular socio-cultural,
       participatory mapping of community land rights before                   environmental and geographic conditions.
       development of land use plans and zoning;                                  CBFiM is based on the following principles, which have been
     • setting ambitious targets for community ownership of forest             developed since 2001 by Project FireFight South East Asia
       lands (e.g. a percentage to be reached by 2015) through                 (an initiative of the World Wide Fund for Nature [WWF] and
       multistakeholder processes, and developing strategies and               the International Union for the Conservation of Nature [IUCN])
       plans to achieve those targets;                                         together with FAO, the Global Fire Monitoring Center and
     • addressing constraints to community and small-scale                     German, Thai and United States government agencies; the
       enterprises, markets and trade, to aim towards at least                 principles have been tested in tropical, temperate and savannah
       quadrupling community incomes from all forest operations by             environments. Fire management:
       2015;                                                                       • should focus on people, not on equipment or legal
     • strengthening political will and action to advance forest tenure              constructs;
       reforms;                                                                    • requires a sense of ownership, without which people’s
     • setting up mechanisms for monitoring and following up on the                  motivation to participate will be eroded;
       Objective 2015.                                                             • can be adapted to use local and indigenous knowledge,
    Further information about the conference is available at:                        taking caution to ensure that the adaptations can fit within a
  www.itto.int/en/workshop_detail/id=44270000                                        rapidly evolving environment;
                                                                                   • benefits from communities’ tendency to focus on prevention
                                                                                     over suppression;
  Moving ahead with community-based fire                                           • draws on the strengths of and balance between community
  management                                                                         members and government agencies.
  Every year fires affect an estimated 350 million hectares of land,              For more information about CBFiM, see: www.fao.org/forestry/
  with damage to property, natural resources and livelihoods, and              firemanagement
  frequently with loss of life. Uncontrolled vegetation fires also                Publications on CBFiM can be viewed at: www.fao.org/
  contribute to global warming, air pollution, desertification and             forestry/35893
  loss of biodiversity. Developing countries are often the most
  susceptible.
    Fire management cannot be fully shouldered by government                   Ken King, 1929–2008
  agencies or communities alone. FAO therefore promotes                        FAO has recently learned of the death of Ken King, Assistant
  community-based fire management (CBFiM) – an approach in                     Director-General of the FAO Forestry Department from 1974 to
  which a local community (with or without the collaboration of                1978, on 30 July 2008 in Georgetown, Guyana.
  other stakeholders) has substantial involvement in deciding the                Kenneth Fitzgerald Stanislaus King was born in Georgetown,
  objectives and practices involved in preventing, controlling or              Guyana (then British Guiana) on 22 August 1929. After completing
  using fires. CBFiM can be especially effective in those places               his secondary education he began his career as a Forestry Officer
  where ignition by humans is the primary cause of wildfires. Over             in the Guyana Forest Department, but resigned to continue his
  the past five years, FAO and The Nature Conservancy (TNC)                    education in the United Kingdom. He gained a forestry degree
  have been jointly preparing and presenting training programmes               at Bangor University, Wales, and a law degree from London
  and workshops to disseminate the approach.                                   University, both in the same year (1956). In 1963 he obtained
    In March 2009, for example, FAO, TNC and the China State                   a doctoral degree in forestry economics from the University of
  Forestry Administration held a workshop in Xishungbanna,                     Oxford with a thesis on land use in the tropics.




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                                                        fao forestry


  King joined FAO in 1964, working first on a project in Nigeria            needs of rural populations, materially strengthening the community
to help establish a forestry faculty at the University of Ibadan. In        forestry component of its work.
1968 he became Chief of the Development Planning Section in                   In 1978, he left FAO to become the first Director-General of the
the Forestry and Forest Products Division at FAO headquarters in            International Council for Research in Agroforestry (ICRAF) (now
Rome. In 1970, he became Forestry and Land Use Officer in the               the World Agroforestry Centre) in Nairobi, Kenya. This position
FAO/World Bank Cooperative Programme.In 1972, King returned                 was followed by an appointment as United Nations Development
to Guyana to serve in his country’s government, as Vice-Chairman            Programme (UNDP) Regional Representative in Addis Ababa, Ethiopia.
of the Guyana State Corporation (GUYSTAC), an umbrella                        In 1991, he returned to Guyana, occupying in the years that
organization overseeing public enterprises, and then as Minister of         followed a number of ministerial and political leadership positions.
Economic Development.                                                       From 2002 to 2004, he was his country’s Ambassador to Belgium
  However, frustrated by difficulties in implementing the national          and Permanent Representative to the European Union. But while
development plan, whose preparation he had led, King returned               in Belgium his health deteriorated; he resigned his post to undergo
to FAO in 1974, this time as Assistant Director-General in charge           treatment in Saint Lucia.
of the Forestry Department. During his tenure in this position, the           Ken King’s wife Joyce had died in 2005. They are survived by a
department added programmes oriented towards meeting the                    son and a daughter.




                                                                                                                              Unasylva 233, Vol. 60, 2009
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                                                                         world of forestry


                        UNFF continues search for solution on financing for                        sustainable forest management. Participants divided into two
                        sustainable forest management                                              working groups to deliberate on these and other issues.
                        Over 600 participants attended the eighth session of the United              Working Group 1 focused on forests in a changing environment,
                        Nations Forum on Forests (UNFF-8), held from 20 April to 1 May             regional inputs and enhanced cooperation. Substantial time
                        2009 at United Nations headquarters in New York, United States of          was devoted to forests and climate change, in particular the
                        America. Seeking agreement on how to finance the implementation            relationship between measures for reducing emissions from
                        of the Non-legally Binding Instrument on All Types of Forests              deforestation and forest degradation (REDD) and sustainable
                        (NLBI), established at UNFF-7, was the main task at hand.                  forest management. Many delegates stressed the need for
                          UNFF was established in 2000 as a subsidiary body of the                 adequate consideration of sustainable forest management in
                        United Nations Economic and Social Council (ECOSOC), with the              REDD policies, including ensuring that policies for climate change
                        main objective of promoting the management, conservation and               mitigation and forest financing consider the multiple values of
                        sustainable development of all types of forests by:                        forests and the whole range of forest products. Some delegates
                           • facilitating implementation of forest-related agreements and          expressed the hope that UNFF could provide an opportunity to
                             fostering a common understanding on sustainable forest                give a holistic perspective on forests and climate change to the
                             management;                                                           outside world, including the climate change convention.
                           • providing for continued policy development and dialogue                 Working Group 2 covered means of implementation, progress
                             among governments, international organizations, and major             towards sustainable forest management and forest law
                             groups, in a holistic, comprehensive and integrated manner;           enforcement and governance (FLEG) as a cross-cutting issue.
                           • enhancing cooperation and policy and programme                        On the subject of financing, however, delegates were unable
                             coordination on forest-related issues;                                to reach agreement. The developing countries favoured the
                           • monitoring, assessing and reporting on progress towards,              establishment of a global forest fund, while donor countries
                             and strengthening political commitment for, sustainable forest        would prefer a facilitative process to enhance access to current
                             management.                                                           funding and create enabling conditions for investment. Delegates
                          UNFF-8 had two main themes. Under the theme “forests in a                eventually agreed on the establishment of an Ad Hoc Expert
                        changing environment”, delegates addressed issues of forests               Group to consider the establishment of a voluntary global forest
                        and climate change, forest loss and degradation, desertification           fund. This group will submit a preliminary report to UNFF-9 and
                        and biodiversity conservation. The second theme, “means of                 final recommendations to UNFF-10. The resolution adopted after a
                        implementation for sustainable forest management” embraced                 final all-night session contains bracketed text for negotiation at the
                        transfer of technology, capacity building and financing for                forum’s next session.
                                                                                                     During the meeting, delegates also participated in two
                                                                                                   multistakeholder dialogues which addressed the participation of
                                                                                                   women, youth and indigenous people in decision-making. Panel
                                                                                                   discussions were held on forests and biodiversity, climate change
                                                                                                   and desertification, the financial crisis and regional perspectives
                                                                                                   on forests in a changing environment.
                                                                                                     The ninth session of UNFF will be held in New York from
                                                                                                   24 January to 4 February 2011 with the theme “People, livelihoods
                                                                                                   and poverty eradication”.
                                                                                                     More information, documents and the report of the session can
                                                                                                   be viewed at: www.un.org/esa/forests/index.html



                                                                                                   A forest road to Copenhagen
                                                                                                   Climate change negotiators have been meeting throughout 2009
                                                                                                   in the run-up to the final negotiation of a post-2012 agreement to
FAO/FO-6013/W. PATHARAKOMOL




                                                                                                   follow the Kyoto Protocol – due to be concluded in Copenhagen,
                                                                                                   Denmark, from 7 to 18 December 2009, at the fifteenth session
                                                                                                   of the Conference of the Parties (COP-15) to the United Nations
                                                                                                   Framework Convention on Climate Change (UNFCCC).
                                                                                                     Deliberations on the text for agreement at Copenhagen are being
                                                                                                   carried out by two working groups:




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                                                   world of forestry


   • the Ad Hoc Working Group on Long-term Cooperative Action                       support. Instead of assuming loss of all carbon from trees at
      under the Convention (AWG-LCA), which is responsible for                      the time of their harvesting, carbon emissions from harvested
      the Bali Action Plan discussions on UNFCCC’s total long-term                  wood products would be discounted over time to reflect
      emission reduction targets and actions on mitigation;                         carbon stored in long-lived wood products (construction
   • the Ad Hoc Working Group on Further Commitments for                            wood, furniture, etc.). Some environmental groups object to
      Annex I Parties under the Kyoto Protocol (AWG-KP).                            this, on the grounds that it would lead to increased use of
  The ad hoc working groups convened from 29 March to                               wood products and thence to deforestation – objections that
8 April 2009 in Bonn, Germany; again in Bonn from 1 to 12 June; and                 erroneously equate sustainable harvesting with deforestation,
in informal intersessional consultations from 10 to 14 August. Further              and neglect the carbon mitigation benefits of substituting wood
meetings of the working groups will take place 1 to 12 September in                 for other more energy-intensive materials such as concrete
Bangkok, Thailand, and 2 to 6 November in Barcelona, Spain.                         or steel. Higher demand for harvested wood products could
  Many of the discussions are of interest to the forest sector,                     also provide incentives for more sustainable management of
particularly negotiation (under AWG-LCA) of a mechanism for                         forests in developed countries.
reducing emissions from deforestation and forest degradation                     •	 Accounting for forest management. Under the Kyoto
(REDD). Major issues to be resolved include the form of a financial                 Protocol, Annex I countries can choose to include carbon
incentive mechanism (fund, market-based or mixed) and whether                       stock changes due to forest management in their national
REDD could be used for generating carbon offsets.                                   greenhouse gas accounting. Alternative accounting methods
  The scope of REDD activities is also under discussion. There                      are being proposed for those that select this option, which
appears to be widespread support for a “REDD-Plus” instrument                       could result in greater incentives for managing forest lands
(covering REDD plus conservation, sustainable management of                         sustainably.
forests and enhancement of forest stocks) and some support for                   •	 Land-based accounting. Some parties propose that Annex I
REDD-Plus-Plus (which would also address activities outside                         countries should include greenhouse gas emissions and
the forest sector that drive deforestation and forest degradation).                 removals from all land-based activities rather than only select
Support for these expanded proposals is consistent with the call                    ones. Related issues under discussion concern natural
by the Collaborative Partnership on Forests (CPF) for a more                        disturbances and non-permanence, as well as greenhouse
comprehensive approach to REDD.                                                     gas accounting in wetlands.
  Some environmental groups recommend excluding production                      Discussions on adaptation have remained relatively general,
forests from REDD, claiming that REDD funds should not be used                laying out principles for action. There is agreement that adaptation
to subsidize industrial logging operations. Negotiators recognize,            efforts should reflect country priorities; that priority should be given
however, that excluding production forests from a REDD                        to the most vulnerable countries and the most vulnerable people
instrument could actually undercut efforts to reduce deforestation            within countries; that funding should be sufficient, additional to
and forest degradation, since a REDD-Plus mechanism would                     official development assistance (ODA) and equitably distributed;
require carbon accounting in all forests and thus provide an                  and that implementation and impact of adaptation programmes
incentive for their improved management. Such a mechanism                     should be monitored, reported and verified.
would also help avoid leakage (i.e. loss of carbon from one site
because of mitigation actions taken elsewhere).
  Support for a phased approach to REDD (from readiness to                    World’s three largest tropical forest regions to
early actions to full implementation with measuring, reporting and            collaborate on biodiversity conservation
verification) and for a mix of market and non-market financing                At a meeting in Montreal, Canada, from 8 to 10 July 2009, the
appears to be emerging. Many parties have emphasized the need                 intergovernmental regional organizations representing the world’s
to ensure that REDD activities respect the rights of indigenous               three largest tropical forest regions – the Amazon Cooperation
people and forest-based communities and safeguard biodiversity.               Treaty Organization (ACTO), the Association of South-East Asian
  Possible expansion of the scope of the Clean Development                    Nations (ASEAN) and the Central Africa Forests Commission
Mechanism, to include agriculture and other forest activities in              (COMIFAC) – agreed to work more closely in the conservation and
addition to afforestation and reforestation, has also been receiving          sustainable management of tropical forests and biodiversity.
increased attention in recent months.                                           Amazonia, Southeast Asia and Central Africa together contain
  Several issues under discussion in AWG-KP would have                        more than 80 percent of the world’s tropical forests and an
implications for the forestry sector in Annex I (developed)                   estimated two-thirds of all terrestrial species. To promote
countries:                                                                    sharing of the regions’ different experiences and approaches in
   •	 Harvested wood products. Inclusion of harvested wood                    conservation of their rich forest biodiversity, the Secretariat of
      products in carbon accounting by Annex I Parties is gaining             the Convention on Biological Diversity (CBD), in collaboration




                                                                                                                                   Unasylva 233, Vol. 60, 2009
                                                                        63




                                                   world of forestry


  with Germany, facilitated a meeting among the three regional               knowledge, strategies and experiences. They agreed to continue
  organizations on South-South cooperation and sustainable forest            developing their cooperation through participation in major events,
  management, with a focus on forest biodiversity. In addition               exchange of experts and technical and managerial expertise,
  to experts from the three organizations, participants included             coordination of programmes and projects, and sharing and
  international partners of CBD such as the Secretariat of the United        learning from successful initiatives.
  Nations Forum on Forests, representatives of Parties to CBD and              The meeting was held in the context of the implementation of the
  resource persons.                                                          Bonn mandate on South-South Cooperation. The CBD Secretariat
    Sustainable forest management is a key objective of all three            convened a similar meeting in 2006.
  of these regional organizations. The participants exchanged




Unasylva 233, Vol. 60, 2009
                                                                                         64




                                                                                  books


Guidance for drafting forest fire legislation                                                 member countries on how to improve their forest legislation. It
  Forest fires and the law – guide for national drafters based on the Fire Management         identifies emerging trends and singles out best practices and
  Voluntary Guidelines. E. Morgera & M.T. Cirelli. 2009. FAO Legislative Study No. 99.        innovative legal solutions, taking as examples national and
  Rome, FAO. ISBN 978-92-5-106151-0.                                                          subnational legislation in a representative group of countries from
Forest fires can threaten livelihoods, ecosystems and landscapes.                             different regions, having different ecosystems and different legal
Fire management is the discipline of using fire to achieve land-                              traditions.
management and land-use objectives, while safeguarding life,                                    The study concludes with key recommendations designed to
property and resources such as forests and other vegetation                                   help drafters of national legislation ensure that legal measures
in rural areas. It encompasses prevention, preparedness, early                                on forest fires are supportive of a holistic approach to fire
warning, detection and mobilization, suppression and restoration                              management.
(including research and technology transfer). It entails the                                    The publication is also available online at: www.fao.org/
appropriate use of natural or human-caused fire in maintaining                                docrep/011/i0488e/i0488e00.htm
ecological values and the integrity of certain ecosystems, and the
use of fire to reduce the accumulation of natural fuel and residues
from commercial and non-commercial activities.                                                Bees – not only for honey
   Starting in 2003, FAO coordinated a multistakeholder process                                 Bees and their role in forest livelihoods – a guide to the services provided by bees and

to develop Fire Management Voluntary Guidelines as part of a                                    the sustainable harvesting, processing and marketing of their products. N. Bradbear.

global strategy for international cooperation in fire management.                               2009. Non-wood Forest Products No. 19. Rome, FAO. ISBN 978-92-5-106276-0.

The guidelines set out non-legally binding principles and                                     Bees are a fantastic resource: they are essential for sustaining the
internationally accepted strategic actions to address the                                     environment because they pollinate flowering plants; they sustain
cultural, social, environmental and economic dimensions of                                    agriculture by pollinating crops; and they provide honey and other
fire management at all levels. They can serve as a checklist                                  products that sustain the livelihoods of forest-dependent people
to strengthen and implement policies, legal and regulatory                                    in almost every country on earth. In many parts of the world,
frameworks, plans and procedures, and provide a basis for                                     significant volumes of honey are still obtained by plundering wild
their development where these do not exist. Principle 8 of the                                colonies of bees, while elsewhere beekeeping is practised as a
voluntary guidelines clearly recognizes the role of legislation in                            highly developed skill.
supporting and institutionalizing forest fire management. Indeed                                This book provides insight into the many ways in which bees and
fire prevention and suppression are often hampered by unclear                                 beekeeping contribute to people’s livelihoods, and considers how
lines of institutional responsibilities and by conflicting policies and                       to strengthen this contribution. It provides basic information on
legislation.                                                                                  managing wild bees and on the use of their products. Its aim is to
   Using the Fire Management Voluntary Guidelines as a                                        promote more sustainable beekeeping practices which will better
foundation, the present publication systematically identifies the                             sustain forest-dependent livelihoods in the developing world.
elements of a coherent national legal framework on forest fires,                                After describing the main bee species and introducing their
capitalizing on the experience gained by FAO in advising                                      importance in nature, the publication outlines the importance of




                                                                                                                                                                Unasylva 233, Vol. 60, 2009
                                                                                     65




                                                                                 books


  apiculture for rural livelihoods and describes considerations in                           The publication scrutinizes some of the key drivers behind forest
  honey hunting and beekeeping. It reviews the impact of beekeeping                       loss and reviews some of the best practices for sustainable forest
  on management and conservation of forests and the value of bees                         management, including participatory management and economic
  for crop pollination.                                                                   incentives. It reviews the importance of forests for people’s
    Next it turns to the products from bees – honey, beeswax,                             livelihoods, examining topics such as forests and food security,
  pollen, propolis, royal jelly and others – considered at both                           forests and conflict, and forests and indigenous people.
  subsistence and commercial levels. It examines their production,                           The book also analyses the role of forests with regard to today’s
  value addition, trade and marketing, as well as constraints to their                    most pressing environmental issues, including climate change,
  development.                                                                            loss of biodiversity, land-use pressure, trade, air pollution, energy
    Particular attention is given to further development of the                           and biofuels. It reviews the main environmental functions provided
  potential for managing wild bee species in developing countries.                        by forests in support of human well-being, including regulation of
    The text is supplemented with case studies from around the                            the hydrological cycle and microclimate.
  world, 12 pages of colour plates and a glossary of apiculture terms.                       Finally Vital forest graphics highlights legal and economic tools
    The publication is available online at: www.fao.org/docrep/012/                       that have been implemented to help conserve the forests and
  i0842e/i0842e00.htm                                                                     secure the livelihoods of forest-dependent communities.
                                                                                             This book is of general interest and will be especially useful
                                                                                          to those seeking graphic evidence for key forest concepts. It is
  Graphic overview of forest issues                                                       available electronically at: www.grida.no/_res/site/file/publications/
      Vital forest graphics. 2009. Nairobi, Kenya, UNEP; Rome, FAO; New York, USA,        vital_forest_graphics.pdf
     UNFF. ISBN 978-92-807-2903-0 (UNEP); 978-92-5-106264-7 (FAO).

  The United Nations Environment Programme (UNEP) Vital
  Graphics series presents critical environmental issues in a simple                      Adaptation panel’s assessment
  and immediate way through the use of extensive graphics. To help                          Adaptation of forests and people to climate change – a global assessment report.

  communicate the value of forests to policy-makers and the wider                           R. Seppälä, A. Buck & P. Katila, eds. 2009. IUFRO World Series Vol. 22. Helsinki,

  public, UNEP, FAO and the United Nations Forum on Forests                                 Finland, IUFRO. ISBN 978-3-901347-80-1.

  (UNFF) joined efforts to produce the present volume in the series,                      The Global Forest Expert Panels (GFEP) initiative of the
  which analyses, synthesizes and illustrates two dozen topical                           Collaborative Partnership on Forests is a new mechanism for
  forest issues, mostly presented as two-page spreads.                                    providing objective and independent scientific assessments of
    Vital forest graphics first sets the stage by looking at what                         key forest-related issues to support international processes and
  defines a forest. It provides an overview of global trends in forest                    decision-making at the global level. It is led and coordinated by the
  cover and challenges in forest conservation and management,                             International Union of Forest Research Organizations (IUFRO).
  then focusing in on the world’s four largest forest ecosystems: the                     Adaptation of forests and people to climate change is its first
  tropical forests of the Amazon, the Congo Basin and Southeast                           product, prepared by an Expert Panel on Adaptation of Forests
  Asia, and the boreal forests.                                                           to Climate Change comprising 35 scientists and experts from




Unasylva 233, Vol. 60, 2009
                                                                                   66




                                                                                  books


different forest-related disciplines and different parts of the
world.
  The publication is divided into two main parts. The first analyses
past and future impacts and vulnerabilities, both environmental
and socio-economic. The second assesses adaptation options; it
includes a chapter on current adaptation measures and policies,
and another on management for adaptation.
  The assessment notes that climate change over the past half-
century has already affected forest ecosystems and could cause
them to be lost entirely if carbon emissions are not reduced
substantially. In a vicious circle, the loss of forests releases
great quantities of carbon to the atmosphere, causing further
climate change. The publication notes that climate change could
increase the supply of timber in some regions, but elsewhere its
negative impacts on forest goods and services will have social and
economic consequences for forest-dependent people, especially
those living in poverty.
  The authors emphasize that sustainable forest management is                           book. This revised and expanded edition of the 1996 original
essential for reducing the vulnerability of forests and people to                       covers in 36 chapters and about 1 500 pages a large cross-section
climate change. Since there is no universally applicable measure                        of subjects and disciplines of great use to the modern forester.
for adapting forests to climate change, forest managers must                            Although written for the Canadian forestry context, and more
have sufficient flexibility to deploy the adaptation measures most                      precisely for Quebec, it also contains many sections that will be of
appropriate for their local situations. Secure land tenure and forest                   interest to an international audience of forestry professionals, such
user rights and sufficient financial incentives are important. Finally,                 as excellent chapters on forest biometeorology and hydrology,
the authors stress that unmitigated climate change could exceed the                     a significant ensemble of chapters on different aspects of forest
adaptive capacity of many forests during the course of the present                      measurement and monitoring, and many texts of interest on
century. Large reductions in greenhouse gas emissions from fossil                       technical aspects of forest harvesting. The last section on wood
fuels and deforestation are therefore needed to ensure that forests                     technology starts with a chapter on the management of the value
retain their capacity to mitigate and adapt to climate change.                          chain, an industrial management principle that clearly transcends
  There are still major gaps in knowledge about the impacts of                          national boundaries.
climate change on forests and people and about how adaptation                             This massive storehouse of information will be useful as a
actions can best be tailored to local conditions. This book provides                    teaching tool and a reference work, and is a worthwhile addition to
a solid basis for discussion and further research, thus contributing                    a forester’s library. It is available only in French.
to the development of effective adaptation strategies.
  The assessment also forms the basis of a policy brief entitled
Making forests fit for climate change – a global view of climate-                       How to reduce the impact of logging on biodiversity
change impacts on forests and people and options for adaptation,                          ITTO/IUCN guidelines for the conservation and sustainable use of biodiversity in

prepared especially for policy- and decision-makers. Both                                 tropical timber production forests. 2009. ITTO Policy Development Series No. 17.

publications are available at: www.iufro.org/science/gfep                                 Yokohama, Japan, ITTO & IUCN. ISBN 4-902045-41-9.
                                                                                        Natural tropical forests are enormously important for the
                                                                                        conservation of biodiversity, containing perhaps 80 percent
A compendium of principles and knowledge in                                             or more of the world’s terrestrial species. This publication is
forestry                                                                                concerned with the 90 percent of tropical forests that are outside
  Manuel de foresterie – nouvelle édition entièrement revue et augmentée. 2009.         protected areas and may be used for the cyclical extraction of
  Quebec, Canada, Éditions MultiMondes. ISBN 978-2-89544-138-0.                         timber and other products. It sets out the specific actions that
The forestry profession covers a large variety of disciplines.                          policy-makers, forest managers and other stakeholders should
Today’s foresters must master a more diversified field of                               take to prevent logging in tropical forests from posing a threat to
knowledge and deal with a greater breadth of issues than their                          biodiversity.
predecessors, traditionally concerned for the most part with the                          The International Tropical Timber Council first adopted guidelines
tending and harvesting of forests.                                                      on conserving biological diversity in tropical production forests
  The Manuel de foresterie is a unique – and uniquely large –                           in 1993. This updated version, produced through a consultative




                                                                                                                                                         Unasylva 233, Vol. 60, 2009
                                                                      67




                                                              books


                                                                           developments in certification, land rights and benefit sharing,
                                                                           payment for ecosystem services, forest law and governance, trade
                                                                           liberalization and the sourcing of wood from planted forests. The
                                                                           physical environment has also undergone change, for example
                                                                           from changing climate. One of the most important messages in the
                                                                           guidelines is that forest managers must be capable of monitoring
                                                                           changes in both biodiversity and society’s requirements for
                                                                           biodiversity and of adapting their management accordingly.
                                                                              Part I provides background and introduces key concepts. The
                                                                           heart of the book is Part II, which gives 11 principles, 46 guidelines
                                                                           and numerous related priority actions for biodiversity conservation,
                                                                           consistent with the principles of sustainable forest management.
                                                                           Part III gives advice on implementing the guidelines, addressing
                                                                           for example training and incentives. A glossary defines key terms.
                                                                           Annexes include specific cases from Central Africa, Cameroon,
                                                                           Indonesia, Guyana, Brazil, the Philippines, Malaysia and Ghana.
                                                                              The revised guidelines were drafted by a core team of
  process, takes account of the great changes that have taken place        biodiversity specialists and then evaluated in the field among
  since then in public awareness, practice and policy related to           timber companies, forest agencies and local communities in four
  biodiversity.                                                            producer countries. An expert panel met in 2007 to further revise
    These changes include developments in scientific knowledge             the guidelines in light of the field evaluation.
  of conservation biology; the adoption of large-scale, landscape             This publication will provide forest policy-makers, owners and
  approaches to conservation; better technologies for observing            managers with excellent guidance on how best to reduce their
  changes in forest systems and greater knowledge of species               impacts on biodiversity in tropical timber production forests. The
  distribution and ecology. They include international policy              application of these guidelines will help countries implement their
  developments such as the Convention on Biological Diversity              obligations under CBD.
  (CBD) Expanded Programme of Work on Forest Biological                       The publication is available online at: www.itto.int/policypapers_
  Diversity and CBD’s adoption of the ecosystem approach; and              guidelines




Unasylva 233, Vol. 60, 2009
                                                        editorial



Green jobs                                                          the United States Forest Service is investing these funds in
                                                                    programmes to restore forests and protect them from fire and
                                                                    other threats, to improve recreational facilities and to provide
                                                                    jobs for youth.


I
     n 2009 the world confronts financial and economic crisis.        In South America, forest industry is an important contributor
     What does it mean for the forest sector, and what can the      to gross domestic product (GDP) in several highly forested
     sector do to respond?                                          countries. I. Tomaselli examines the potential for developing
  The United Nations Secretary-General, in his report to the        forestry’s role in economic renewal in the region, focusing on
Conference on the World Financial and Economic Crisis and           the contribution of forest plantations to employment.
Its Impact on Development in June 2009, estimated that global         Turning to Asia and the Pacific, J.R. Matta examines the
per capita income could drop by 3.7 percent in 2009. Rising         variety of jobs that could be created in India by increasing
unemployment could push hundreds of millions of people into         the allotment of funds to forestry under the National Rural
poverty, especially in developing countries.                        Employment Guarantee Act, which guarantees 100 days of
  The crisis has already had dire effects on the forest sector      employment to India’s rural population. Such investment would
globally, including depressed demand for forest products,           also help to meet national afforestation goals.
industry slowdowns and closures. Reduced investments and              J.L. Atienza, Jr briefly describes the Upland Development
budget cutbacks could make it increasingly difficult to obtain      Program in the Philippines, introduced in 2009 to cushion
financing for forest conservation and management. There is a        the impact of the global financial crisis, mitigate hunger and
risk that the crisis could distract attention and funding away      enhance adaptation to climate change. The programme will
from crucial global problems of climate change and environ-         create thousands of jobs in restoring forests and watersheds,
mental degradation.                                                 and is also linked to programmes providing support for small-
  The resolution adopted by the UN General Assembly at the          scale forest enterprise.
June conference recognizes that “the response to the crisis           In China, the global financial crisis has already put the brakes
presents an opportunity to promote green economy initiatives ...    on the forestry sector’s extremely rapid growth of recent years.
[which] should address sustainable development and environ-         Decreased demand for forest products has resulted in industry
mental challenges and opportunities, including climate change       slowdowns and closures, with small and medium-sized wood-
mitigation and adaptation, financing and technology transfer to     processing enterprises hit hardest. Q. Ma, J. Liu and W. Du
developing countries and sustainable forest management”.            analyse the policy adopted by the government to stimulate
                                                                    investment in the forest sector, expand domestic demand and


A
          s part of World Forest Week (16 to 20 March 2009;         create a favourable environment for enterprise.
          see page 56), FAO held a special event on “Impacts of       The crisis has also taken a heavy toll in Africa, with reduced
          Global Economic Turbulence on the Forest Sector”,         demand from importing countries forcing companies to close
which explored the opportunities to invest in forest-based job      concessions and lay off workers. Such crises accentuate the
creation. The first five articles in this issue of Unasylva are     dependence of rural communities on non-wood forest products
adapted from presentations at that event.                           (NWFPs) for self-employment, income and sustenance. J.C.
  The overview article, by C.T.S. Nair and R. Rutt, asserts that    Tieguhong et al. describe the development of a legal framework
targeted public investment in forestry could generate about 10      for commercial use of NWFPs in Central Africa, to safeguard
million new jobs around the world, and examines the invest-         people’s rights of access and to avoid possible negative impacts
ment costs required.                                                from intensified use of the forest.
  T. Presas briefly outlines the challenges and opportunities         Finally, R.N. Heath and S. Chipeta outline crisis response
posed by the crisis from the industry point of view. She notes      measures proposed in South Africa, including accelerated
that the recession is likely to alter the structure and business    implementation of labour-intensive programmes in rehabili-
models of the global forest products industry – and that industry   tating degraded woodlands, controlling invasive species and
should be preparing for these changes now.                          managing fire. The authors stress that measures to safeguard
  A graph-filled article by R. Taylor illustrates concisely how     domestic industries and jobs must not unintentionally jeopardize
the crisis has hit the wood industry in North America. Taylor       growth in other countries and in the world economy.
traces how the collapse of the housing market was paralleled


                                                                    W
by a collapse in construction and in wood products markets. He                  hether sooner or later, this crisis will pass. But
then describes options for industry, forest owners and govern-                  the messages of this Unasylva issue will remain
ments to help the forest sector gain strength from the crisis.                  pertinent. With strategic investment, forestry can
  In the United States, early in 2009 the American Recovery         contribute much to employment, to livelihood support, to
and Reinvestment Act authorized US$1.15 billion for stimulus        environmental renewal and to climate change mitigation and
projects in forestry. A.R. Kimbell and H. Brown describe how        adaptation.
                                                                           3




                Creating forestry jobs to boost the economy and
                              build a green future
                                                         C.T.S. Nair and R. Rutt




  Targeted public investment in

                                                   S
                                                          tarting from early 2008, the world           by governments and central banks, there
  forestry could generate about                           has been witnessing one of the               are considerable uncertainties about sus-
  10 million new jobs around the                          worst economic crises since the              tained recovery. Under the most optimis-
  world.                                           Great Depression of the 1930s. Losses in            tic scenario an upturn in many countries
                                                   financial markets worth trillions of United         may start in 2010 or 2011, but the pos-
                                                   States dollars have spread through econo-           sibility of further economic decline and
                                                   mies worldwide, leading to reductions in            a prolonged, anaemic recovery cannot
                                                   production, employment, incomes and                 be completely ruled out.
                                                   consumer demand. Growth rates of all                  Major consequences of the economic
                                                   economies have been revised downwards               decline include factory closures on an
                                                   (UN, 2009). Although as of summer 2009              unprecedented scale, consequent job cuts
                                                   the decline has slowed and some of the              and a rapid increase in unemployment
                                                   emerging economies are showing signs                (Figure 1). Global unemployment, esti-
                                                   of recovery thanks to measures adopted              mated at about 180 million in 2007, is

                                                   1
                                                   World unemployment trends (in millions)


                                                        250
                                                                                                                            Near East

                                                                                                                            Latin America and
                                                        200                                                                 the Caribbean
                                                                                                                            Central and southeastern
                                                                                                                            Europe (non-EU) and
                                                                                                                            Commonwealth of
                                                        150
                                                                                                                            Independent States
                                                                                                                            Developed economies

                                                        100                                                                 Africa

                                                                                                                            Asia and the Pacific
                                                                                                                            (excluding Japan)
                                                         50



                                                          0
                                                                2007       2008       2009       2009       2009
                                                                                    Scenario 1 Scenario 2 Scenario 3

                                                      Scenario 1 was generated using the historical relationship between economic growth and
  C.T.S. Nair is Chief Economist and Rebecca          vulnerable employment at the country level between 1991 and 2008, together with the International
  Rutt is Consultant in the Forest Economics and      Monetary Fund (IMF) gross domestic product (GDP) growth projections for 2009.
  Policy Division, Forestry Department, FAO,          Scenario 2 was generated based on the relationship between economic growth and vulnerable
  Rome.                                               employment during the worst observed economic downturn in each country, applied to the 2009 IMF
                                                      GDP growth projections.
                                                      Scenario 3 was generated by taking the worst observed year-on-year increase in each country’s
  This article was developed from a background        vulnerable employment rate and assuming the same increase would occur simultaneously in all
  paper prepared for the special event “Impacts       economies in 2009.
  of Global Economic Turbulence on the Forest
  Sector” at the nineteenth session of the FAO        Source: ILO, 2009.
  Committee on Forestry, Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                                   4




                 projected to increase to nearly 210 mil-      (including for migrant workers), its          change. Forestry could have a positive
                 lion in 2009, or even as high as 239          decline has contributed substantially to      role in the economic stabilization efforts,
                 million in the worst-case scenario (ILO,      increased unemployment. Growing rural         particularly through job creation and the
                 2009). Job losses among migrant work-         unemployment could increase pressure          rebuilding of the natural capital base.
                 ers from developing countries, who are        on forests and woodlands, leading to
                 particularly vulnerable, lead to reverse      deforestation and degradation. Declining      FORESTRY IN THE ECONOMIC
                 migration to their home countries (often      demand for wood and wood products             STIMULUS PACKAGE
                 to rural areas), reduced remittances, loss    could also reduce investments in sustain-     Employment generation
                 of livelihood and increasing poverty and      able forest management by governments,        Job creation remains the foremost con-
                 food insecurity. At the national level, an    industries and smallholders, adversely        cern for most countries as economies
                 exodus of unemployed urban workers            affecting future wood supplies and envi-      contract and joblessness increases. As
                 back to their villages is aggravating rural   ronmental services.                           the credit squeeze reduces fund avail-
                 unemployment and underemployment in             In response to the economic crisis, a       ability, much of the focus will be on job
                 many countries.                               number of governments have initiated          creation in sectors with high labour–
                   In the forest sector, the economic down-    economic stimulus packages to bail out        capital ratios. Forestry’s potential for
                 turn presents particular challenges (FAO,     financial institutions and to stimulate       employment generation stems from
                 2009). The slump in the construction sec-     production and consumption. By early          several factors:
                 tor, especially in many developed coun-       2009, the total value of the various stimu-     •	Low	capital	requirements. With the
                 tries (for example in the United States       lus packages amounted to over US$3                exception of some forest industries
                 of America, where annual housing starts       trillion (Gallagher, 2009). Employment            such as pulp and paper and panel
                 declined by about 80 percent between          generation through public works is an             products, forestry is labour intensive
                 January 2006 and January 2009), led           important thrust of many of the stimulus          with relatively low capital invest-
                 to a drastic reduction in demand for          packages. An increase in jobs is expected         ment. Labour and land are the key
                 wood products. Production, trade and          to enhance income, increase consump-              inputs in the production of wood and
                 employment have been scaled down in           tion and thus stimulate production and            non-wood forest products, and envi-
                 response to the low demand. Since the         further employment, helping to break              ronmental services and investments
                 construction sector is a major employer       the downward spiral.                              in upstream (primary) forestry activi-
                                                                 The strategies of a number of countries         ties are able to generate more jobs
                 With declining demand for wood                emphasize movement towards a green                than most other sectors. An annual
                 and wood products, there is a
                 danger that governments, industries
                                                               future, with the aim of stimulating sec-          outlay of US$1 million in forest man-
                 and smallholders could reduce                 tors that will create real assets, improve        agement (including agroforestry)
                 investments in sustainable forest             energy efficiency, increase the use of            could generate from 500 to 1 000
                 management, putting future wood
                 supplies and environmental services
                                                               renewable resources and combat climate            jobs in many developing countries,
                 at risk (log barge, Indonesia)
FAO/FO-5709/P. DURST




                                                                                                                                      Unasylva 233, Vol. 60, 2009
                                                                      5




       and 20 to 100 in most developed and
       middle-income countries.                          Public investments for employment generation in forestry
     •	Multiplier	 effect. Since a major
       share of a worker’s income goes to         Employment generation through forestry activities has played an important role in
       the purchase of goods and services,        addressing recession in several instances.
       mainly at the local level, every one         The Civilian Conservation Corps (CCC), established in the United States of America
       job created in forestry generates          in 1933, was one of the most popular programmes of the New Deal providing relief and
       an additional 1.5 to 2.5 jobs in the       recovery from the Great Depression. The CCC reforested timberlands, fought forest fires,
       economy.                                   built public roads and maintained public parks. The assets built during that time have
     •	Flexibility	 and	 adaptability	 in	        provided a solid base for nature conservation and management in the United States. Several
       diverse	 situations. The variety of        other countries (for example New Zealand) took up reforestation and afforestation work
       the tasks required and the levels of       as a strategy for addressing the high level of unemployment during the same period.
       technology available offer various           Most of the forests in Japan were established as part of the reconstruction programme
       employment options. For example,           after the Second World War. During the war these forests were logged heavily. The post-




                                                                                                                                            FAO/FO-6178/G. ALLARD
       planting could be undertaken as an         war investments in plantations helped to improve the country’s forest cover and at the
       extremely labour-intensive opera-          same time provided substantial employment to local communities.
       tion if there are no labour constraints,     In India, forestry employment is one focus of the National Rural Employment Guarantee
       or it could be partially mechanized        Act (see article by Matta in this issue), launched in 2005. The act guarantees 100 days of
       depending on the relative costs of         employment for all unemployed adult members of a family. Afforestation and drought
       labour and other inputs.                   proofing are integral components. During the period 2006 to 2008, this legislation provided
    There is a long history of job generation     2.3 billion person-days of work to rural households in a variety of rural asset creating
  through public investments in forestry          activities, at a cost of US$6 billion. Recognizing its positive impact, the government has
  (see Box). Although the current situation       increased the outlay for 2009–2010 to about US$8 billion.
  differs from past economic downturns, a
  number of countries have included job
  creation in forestry as an integral part        extent illegal logging), yet there was no     tation. Carbon sequestration by newly
  of their economic recovery plans – for          concomitant increase in investments in        planted trees on farms and in forests
  example Canada, Chile, China (see arti-         forest management, especially in devel-       would help to compensate the emissions
  cle by Ma, Liu and Du in this issue), India     oping countries.                              from deforestation and degradation. Pro-
  (see article by Matta), the Republic of           As industry contracts and demand            viding employment in forestry activities
  Korea and the United States (see article        for wood remains subdued, increased           would have the double advantage of:
  by Kimbell and Brown).                          investment in rebuilding the forest asset        • slowing down deforestation and deg-
                                                  base starts to make better sense. While            radation that would have taken place
  Rebuilding natural assets                       forest owners (governments, private                in the absence of employment;
  Even before the economic crisis,                owners, enterprises and communities)             • augmenting carbon sequestration
  increased reliance on industrial and ser-       are likely to scale down their investments         through increased tree planting and
  vices sectors for income and employment         in response to declining wood demand,              improved management of forests.
  had to some extent reduced investments          it becomes critical to enhance invest-        Better fuel management would reduce
  in primary sectors, including forestry.         ments in forest management, especially        the frequency and intensity of forest
  Within forestry, wood processing and log-       to ensure that the future supply of pro-      fires and consequent carbon emissions.
  ging have received the most investments         ducts and services is sustained.              Rebuilding the natural resource base is
  in view of their high returns and short                                                       a major step in moving towards a “green
  payback periods, while management of            Climate change mitigation and                 economy”.
  forests has received much less atten-           adaptation
  tion; this is particularly true for tropical    Employment generation through                 MORE JOBS IN FORESTRY
  forests and especially where more profit-       upstream forestry activities – affores-       Currently the total employment in the
  able land-use options are available. An         tation, reforestation, improved manage-       formal forestry sector (the officially
  economic boom in the past few years             ment of natural forests, conservation,        reported figures for wood production,
  had increased the demand for wood and           watershed protection, agroforestry,           wood processing, the pulp and paper
  wood products, resulting in the expan-          urban forestry, etc. – directly contributes   industry and furniture production) is
  sion of wood processing (and to some            to climate change mitigation and adap-        estimated at about 18.2 million (full-




Unasylva 233, Vol. 60, 2009
                                                                           6




                                                   specific conditions at the national and              cific local conditions, knowledge and
    3.9 million                                    local levels, a wide array of job creation           skills, could be important sources of
       21%                           5.5 million
                                        30%        projects and programmes could help alle-             employment. Most countries have sub-
                                                   viate the current unemployment problem               stantial experience in afforestation and
             Wood
           production        Wood
                                                   and at the same time improve the man-                reforestation and could scale up these
                           processing              agement of land and forest resources,                activities. Annual plantation establish-
                                                   including the creation of new assets                 ment (excluding assisted regeneration
                                                   (Table). Because most of these activi-               in semi-natural forests) is about 2.5 mil-
           Paper                                   ties are seasonal and undertaken over                lion hectares (FAO, 2006). Taking into
          industry
                        Furniture
                                                   short periods, full-time employment                  account the availability of suitable land
                        industry                   requires a combination of activities.                and the institutional capacity, the rate
                                                   Landowners often have a diverse array                of establishment of productive and pro-
   4.4 million                      4.5 million    of income sources, and forestry could                tective plantations could be doubled or
      24%                              25%         augment income from other sources,                   tripled annually.
  Source: FAO, 2008.                               especially when these are affected by
2                                                  the economic downturn. For some rural                Maintenance and improvement of
Employment in the formal                           households, even a few days of forestry              existing planted forests
forestry sector
                                                   work could help to increase income and               The total extent of planted forests in 2006
                                                   alleviate poverty.                                   was estimated as 271 million hectares
time equivalent) (Figure 2). Although a                                                                 (more or less equally divided between
significant share of the jobs in forestry,         Afforestation and reforestation                      plantations and semi-natural forests
especially in developing countries, is             Afforestation and reforestation, includ-             established through assisted natural
in the informal sector, no reliable esti-          ing reclamation of degraded or deserti-              regeneration). In many countries vast
mates are available on the extent of such          fied lands, offer the greatest scope for             tracts of planted forests have not been
employment. The International Labour               job creation, particularly where rural               maintained properly and investment in
Organization (ILO, 2001) has “guess-               unemployment or underemployment is                   their maintenance has been declining.
timated” that about 63 percent of total            high and vast tracts of degraded land                Even routine maintenance operations –
forestry employment is in the “invisible           are available. Land preparation, produc-             weeding, cleaning, thinning and prun-
sector”, including woodfuel production,            tion of planting material and planting               ing – are often neglected, with negative
for which disaggregated data on formal             and maintenance, adapted to the spe-                 consequences for productivity. Although
and informal production are not avail-
able, as well as the numerous forestry
enterprises in the informal arena. On              Potential new jobs in sustainable management of forests and level of investment
this basis, total employment in the forest         required (annual targets for an initial five-year period)
sector could be as high as about 49 mil-            Activity                                New jobs          Annual target area    Approximate
                                                                                        (million, full-time      (million ha)       annual outlay
lion (FAO, 2008).                                                                         equivalent)                                (billion US$)
  No disaggregated data on employment               Afforestation, reforestation and
in forest management are available. Of              desertification control                    4–5                     5                     8
the estimated 3.9 million jobs in wood              Improvement of productivity of
                                                    existing planted forests                 0.5–1.0                 10                      1
production, most are in logging, i.e.
production of industrial roundwood                  Watershed improvement                      1–3                     1                     6
and fuelwood removal, through formal
                                                    Indigenous forest management               1–2                     4                     5
arrangements. Probably not more than
                                                    Forest conservation                        2–3                   20                      7
one-fourth to one-half of production jobs
                                                    Agroforestry                            0.5–0.75                   2                     1
involve planting and management of
forests and woodlands.                              Fire management                         1.0–1.25                 10                      5

  Although this employment estimate
                                                    Urban and peri-urban forestry            0.1–0.5                 0.1                     2
is not precise, it does indicate the low
                                                    Skill improvement of forestry and
level of effort given to managing forests           wood industry workers                      0.05                                          1
sustainably, suggesting substantial scope
to scale up activities. Depending on the            Total                                   10.1–16.5                                      36




                                                                                                                                   Unasylva 233, Vol. 60, 2009
                                                                   7




  low productivity is often partly due to
  poor quality of planting stock, regular
  maintenance operations can improve
  productivity (or at least prevent further
  decline) and hold enormous potential for
  job creation. Increased productivity will
  also decrease the pressure to expand the
  plantation area to meet future growth in
  wood demand.

  Watershed improvement
  In view of the highly degraded condition
  of many watersheds and growing con-
  cern about declining supply and quality




                                                                                                                                          FAO/FO-5186/L. FEROUKI
  of water, watershed improvement will
  be a major area of job generation invest-
  ment in most countries, using techniques
  appropriate to the specific ecological,
  social and economic conditions. In addi-                                                                               Afforestation and
  tion to afforestation, watershed improve-     the use of traditional knowledge of local                           reforestation offer the
                                                                                                                    greatest scope for job
  ment may involve construction of water        communities and the adoption of techno-
                                                                                                              creation, particularly where
  and soil conservation structures such as      logies appropriate to local conditions.                            rural unemployment is
  check dams, contour trenches and ter-                                                                            high and vast tracts of
                                                                                                              degraded land are available
  races, which is highly labour intensive.      Forest conservation
                                                                                                                 (watering nursery plants
  Again, these activities will help improve     Despite the increasing demand for                              for desertification control,
  the natural asset base while generating       environmental services, investment in                                             Senegal)
  employment.                                   forest conservation has been limited (see
                                                Box, page 8). Conservation activities
  Management of natural forests                 that could be scaled up include demar-      While demand for wood
                                                                                            remains subdued,
  Natural forests are important for environ-    cating boundaries of protected areas,       attention can be turned
  mental services – e.g. watershed protec-      maintaining paths and trails, devel-        to maintenance and
  tion, conservation of biodiversity, carbon    oping recreation sites and establish-       improvement of existing
                                                                                            planted forests (weed
  sequestration – and for wood production       ing nature education and information        control in a forest
  (especially in the tropics), although their   centres. Employing local community          plantation, Chile)
  role in the latter is declining in view of    members in such activities could ensure
  expanding wood supplies from planted          the effective protection of conserva-
  forests. Investment in the management         tion areas. Considering that the world’s
  of natural forests, however, has been         protected areas extend over about 1.9
  negligible. Vast tracts of logged-over        billion hectares, even a modest effort to
  secondary forests remain unmanaged            improve accessible areas could provide
  and are becoming degraded, especially         employment to many thousands of peo-
  in the context of mounting human pres-        ple. As economies recover and income
  sures. In many countries the condition of     increases, the demand for recreation
  these forests and their environmental ser-    will increase and the investments in
  vices could be improved through assisted      improving the infrastructure and other
  regeneration and “close-to-nature” forest     facilities will be quickly recouped.
  management based on better understand-
                                                                                                                                          FAO/FO-5109/S. BISOFFI




  ing of ecosystem processes. Sustainably       Agroforestry
  managed secondary forests could also          Tree growing has been an integral part of
  produce high-quality timber for niche         various farming systems providing a wide
  markets. Here again there is scope for        array of products, including non-wood




Unasylva 233, Vol. 60, 2009
                                                                                    8




                                                                                                         In view of growing concern
                                                                                                         about water quality
                                                                                                         and supply, watershed
                                                                                                         improvement will be a major
                                                                                                         area for investment in jobs
                                                                                                         (measuring soil erosion,
                                                                                                         Thailand)




                                                                                                           qualified hands who would otherwise
                                                                                                           remain unemployed and be at risk of
                                                                                                           losing their skills. It could also help save
FAO/FO-6417/M. KASHIO




                                                                                                           resources and enhance worker safety and
                                                                                                           eventually income.
                                                                                                             Employment opportunities also exist in
                                                                                                           research and development, for example,
                                                                                                           in more energy- and material-efficient
                  forest products. In many countries farm-    ning, establishment and management of        “green technologies” and organiza-
                  grown trees have become the most impor-     urban and peri-urban green spaces could      tional management, which may lead to
                  tant source of wood supply. With secure     not only provide an antidote to growing      improved forestry practices and compet-
                  tenure and expanding local demand,          urban employment, but also improve           itive advantage. Investment in research
                  agroforestry can be expanded and exist-     urban living conditions.                     and development could alter the nature
                  ing practices improved. Although this                                                    of forestry jobs in the future.
                  may not generate full-time employment,      Skill development of forest and forest
                  it will help to reduce poverty of farm      industry workers                             OVERVIEW OF ANNUAL COSTS
                  households.                                 In many countries forestry and forest        Summing up, the annual outlay for
                                                              industry workers have little or no for-      rebuilding the forest asset base, focus-
                  Fire management                             mal training and insufficient skill lev-     ing on the activities indicated above,
                  With the increased severity and fre-        els. The lull in demand for products         would be approximately US$36 billion,
                  quency of forest fires, attributed partly   could be an opportune time for upgrad-       distributed among activities as shown in
                  to climate change but also to failure to    ing skills and introducing new techno-       the Table on page 6. This could gene-
                  implement appropriate fuel management       logies. A systematic programme of skill      rate about 10 to 16 million jobs, largely
                  practices, forest fires have become an      development would require instructors,       depending on local conditions, espe-
                  important source of carbon emissions.       creating employment opportunities for        cially costs of inputs. More jobs can be
                  Fuel management to reduce the inci-
                  dence and severity of fires could also
                  increase employment, including for local                      Investment in protected area management
                  communities. Activities would depend
                  on the local conditions, but many are       The annual expenditure on protected area management in the decade 2000–2010 is
                  labour intensive.                           estimated as about US$6.5 billion globally, and most of this is in developed countries.
                                                              In many countries the expenditure on protected area management has declined. In
                  Urban and peri-urban green spaces           eastern Africa the outlay on protected area management is less than US$3 per hectare.
                  With growing urban populations, the         According to one estimate of the financing needed for protected area management,
                  demand for urban green space is increas-    US$45 billion per year would be needed to secure an expanded network of terrestrial
                  ing rapidly. Many city administrations      and marine protected areas. According to another estimate, protected area management
                  are developing parks and other green        in developing countries alone will require about US$12 billion to $13 billion per year
                  spaces to improve the urban environ-        over the next decade.
                  ment, yet these efforts could be expanded
                                                              Source: IUCN, 2006.
                  in many places. Job creation in plan-




                                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                                   9




                                  Fuel management work
                               helps reduce the incidence
                                     and severity of forest
                                  wildfire, thus lessening
                                         carbon emissions
                              (prescribed fire to establish
                                      a control line off of a
                                 firebreak, United States)




                                                                                                                                                     BUGWOOD.ORG/0016350/J.H. MILLER, US FOREST SERVICE
  generated in developing countries where
  wages are relatively low.
    Tomaselli (2006) estimated annual
  investments in the forest sector to be
  about US$64 billion, of which about
  US$46 billion go to downstream forest
  industry and trade, while US$18 bil-
  lion go to upstream forest management,
  establishment of plantations and harvest-                     tiatives for reducing emissions from          More importantly, such investments
  ing – with logging often accounting for                       deforestation and forest degradation in     could help rebuild natural assets that
  a major share of the upstream invest-                         developing countries (REDD) could be        have been severely depleted in the past.
  ment. No disaggregated information is                         expected to more than double this figure    Unemployment and lack of income have
  available on the share invested in forest                     (see Box below).                            been major factors contributing to de-
  management, nor are there reliable esti-                                                                  forestation and forest degradation in
  mates of the costs of sustainable forest                      CONCLUSIONS                                 most countries. Employment in sustain-
  management. Tomaselli estimated that                          Rapidly escalating unemployment and         able forest management thus has a double
  sustainable forest management would                           its social and economic consequences are    benefit: while it builds the natural asset
  require an investment of about US$31                          a major concern as countries grapple with   base, it also reduces the deforestation
  billion per year. Implementation of ini-                      the ongoing economic crisis. Sustainable    and degradation that often occur when
                                                                forest management could become an           other income-earning opportunities are
                                                                integral component of employment gen-       absent. Based on the current costs of sus-
      Costs of reducing emissions                               eration efforts and offers some unique      tainable forest management activities,
     from deforestation and forest                              advantages in fulfilling a number of        10 million jobs could help to establish,
       degradation in developing                                economic, social and environmental          restore or improve about 8 to 10 mil-
          countries (REDD)                                      objectives.                                 lion hectares of forests and woodlands,
                                                                  Targeted public investments could gen-    reversing deforestation and degradation.
  The estimated costs of implementing REDD                      erate about 10 million new jobs in affor-   Such employment would also strengthen
  depend on the level of the emission reduc-                    estation, reforestation, management of      the management of protected areas,
  tion required and the unit cost of CO2. The                   natural forests, establishment and man-     improve watersheds, create new urban
  annual cost of a 50 percent reduction of                      agement of urban and peri-urban green       and peri-urban green spaces and reduce
  emissions from deforestation could be about                   spaces, improvement of watersheds, pro-     the incidence of fire.
  US$17 billion to $33 billion for the period                   tection of forests from fire and building     The establishment of new forests and
  2005–2030. This estimate includes the up-                     roads, trails and recreation sites.         woodlands and improved management
  front capacity-building costs, opportunity                      Such investments could absorb unem-       of existing forests would directly con-
  costs and protection costs. The profitability                 ployed or recently dismissed workers,       tribute to climate change mitigation and
  of alternative land uses will be a major factor               increasing their income and consumption     adaptation. Both the reduction in de-
  determining the rent that will have to be paid                and contributing to arresting the down-     forestation and the establishment of new
  to carbon credit suppliers under REDD.                        ward economic spiral. Most of these         planted forests and farm woodlots would
                                                                jobs would be in rural areas, where they    improve carbon sequestration and stor-
  Source: Eliasch, 2008.
                                                                would help raise living standards.          age. Improved fuel management could




Unasylva 233, Vol. 60, 2009
                                                                10




reduce the incidence and severity of                                                        ILO. 2001. Globalization and sustainability:
forest fires, further helping to reduce                                                       the forest and wood industries on the move.
carbon emissions.                                                                             Geneva, Switzerland, International Labour
  Employment in forestry activities can                Bibliography                           Organization.
provide a much-needed “quick-fix”. By                                                       ILO. 2009. Global employment trends
rebuilding the natural resource base and   Eliasch, J. 2008. Climate change: financing        update, May 2009. Geneva, Switzerland.
enhancing the supply of goods and ser-       global forests – Eliasch Review. Kew,            Available at: www.ilo.org/wcmsp5/groups/
vices, the initial investments will also     UK, Government of the United Kingdom.            public/---dgreports/---dcomm/documents/
pave the way for long-term employment.       Available at: www.occ.gov.uk/activities/         publication/wcms_106504.pdf
A number of countries have already           eliasch.htm                                    IUCN. 2006. Sustainable financing of protected
included forestry as an important compo-   FAO. 2006. Global planted forests thematic         areas: a global review of challenges
nent of their current economic stimulus      study: results and analysis. Planted Forests     and options. Gland, Switzerland, World
packages, with particular focus on job       and Trees Working Paper FP/38. Rome.             Conservation Union (now International
creation. Stepping up of such efforts      FAO. 2008. Contribution of the forestry sector     Union for the Conservation of Nature).
by all countries could have positive         to national economies, 1990–2006, by A.          Available at: app.iucn.org/dbtw-wpd/
economic, social and environmental           Lebedys. Forest Finance Working Paper            edocs/PAG-013.pdf
impacts. New jobs will be tailored to        FSFM/ACC/08. Rome.                             Tomaselli, I. 2006. Brief study on funding
the specific conditions in each country,   FAO. 2009. State of the World’s Forests            and finance for forestry and forest-based
to make the most of local resources and      2009. Rome.                                      sector – final report. Prepared for the
institutional capacities. u                Gallagher, K.P. 2009. A global survey of           United Nations Forum on Forests (UNFF).
                                             stimulus plans. Post to online Global            Curitiba, Brazil.
                                             Crisis Debate, Macroeconomics theme.           UN. 2009. World economic situation and
                                             Available at: www.VoxEU.org/index.               prospects 2009. New York, United
                                             php?q=node/3156                                  Nations. u




                                                                                                                       Unasylva 233, Vol. 60, 2009
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                                                                                                                                                           ILO/E6931/M. CROzET; ILO/C1313 & C0024/ J. MAILLARD
                                                                                                                            With curtailment in the forest

  Financial meltdown                                  The perfect storm seems to be upon the world.
                                                      The forest industries are not sheltered from it;
                                                                                                                                  products sector evident
                                                                                                                               around the world, now is a
                                                                                                                                time for industry to focus
  and the future of                                   they are only too aware of it. But the current
                                                      recession creates opportunities as well as
                                                                                                                                   on efficiency, for better
                                                                                                                         positioning when the crisis ends

  the forest products                                 threats for the forest product industries.                          (wood industry workers, Egypt,
                                                                                                                                           Bolivia, Gabon)
                                                        In 2008, the World Bank forecasted that by
  industry                                            2030, global gross domestic product (GDP)
                                                      could more than double to US$73 trillion,
                                                      largely as a result of economic growth in           to restructure, focusing on efficiency across
  T. Presas                                           developing nations. Such economic growth            all aspects of operations – from raw material
                                                      would have translated into extra demand for         mobilization to product design to production –
                                                      forest products. But given the current situation,   and ensuring the right products for the market.
  Some observations on the                            that growth will most probably be delayed.          The crisis will be over one day, and when that
  challenges and opportunities                          The effects are already evident. From             happens, the most efficient players will still
  presented by the financial crisis –                 October 2008 to March 2009, demand for              be in the game.
  an industry viewpoint.                              wood and paper products declined profoundly.          Temporary unemployment is an occasion for
                                                      New housing starts and home repairs have            governments to work with industry to invest in
                                                      dropped. Paper markets are suffering from a         training and education to prepare the work-
                                                      drop in advertising and the reduced production      force for the future. The industry needs skilled
                                                      of many newspapers and magazines. With              people and knowledgeable employees.
                                                      trade slowed, less packaging is needed.               One forecast that is not likely to prove wrong
                                                        Curtailment in the forest products sector is      is the projected increase of the Earth’s popu-
                                                      evident around the world, especially in rural       lation by 1 billion every 15 years. Population
                                                      areas, where the sector is often one of the         growth has typically been one of the primary
                                                      only employers.                                     drivers of demand for forest products. Although
                                                        Cutbacks in manufacturing of all kinds of         that link is likely to be less linear than it has
                                                      products across all sectors could mean the          been in the past, with economic recovery a
                                                      return of workers to rural areas. In some parts     rapid expansion of demand for forest products
                                                      of the world the result could be increased          can be expected in the future, particularly for
                                                      attention to sustainable forest management,         tissue, packaging and solid wood.
  Teresa Presas is Managing Director of the           particularly by small forest owners. In other
  Confederation of European Paper Industries          parts of the world, however, reverse migra-         Challenge of competition for land
  (CEPI), Brussels, Belgium, and President of
  the International Council of Forest and Paper       tion could result in increased smallholder          As food demand grows, more land is being
  Associations (ICFPA).                               agriculture on forest land.                         turned over to agriculture. This trend is inten-
                                                                                                          sified by the increasing demand for agricul-
  From a presentation to the special event “Impacts   A time for change                                   tural land to produce energy crops (such as
  of Global Economic Turbulence on the Forest         As dramatic as the current situation may            corn or sugar cane for ethanol, or soybean
  Sector” at the nineteenth session of the FAO        sound, this is also the moment for industry         for biodiesel), often driven by government
  Committee on Forestry, Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                         12




policies to increase the supply of renewable        and an existing use of biomass-based energy       challenging time ahead. They must develop
energy to mitigate climate change and ensure        as some of the sector’s major assets.             policies that not only create jobs and stimulate
energy supplies.                                                                                      economic growth, but also reduce carbon
  Competition between food demand and               Climate change concerns                           emissions and achieve energy independence.
energy demand puts increasing pressure              Actions to minimize the effects of climate        In many countries, the huge plans announced
on land use. In many regions forest land is         change are being implemented in an uneven         to address the economic situation will provide
also suitable for agriculture or energy crops.      way around the world. Companies operating in      the forest sector with great opportunities. The
In New Zealand, for example, expansion of           countries with strong climate change policies     Republic of Korea has announced a Green
agriculture has resulted in a net decrease in       (e.g. in the European Union) are subject to       New Deal plan to invest US$38 billion over
forest cover over the past three years, revers-     extra taxation and thus disadvantaged from        the next four years to create almost 1 million
ing the previously established trend of steady      a cost perspective. There is also a risk that     jobs. Japan has plans to expand its green busi-
increase in forest land.                            some countries or regions may attempt to          ness sector to US$1 trillion by 2020, creating
  Competition for land may provide strong           counterbalance this disadvantage with pro-        800 000 new jobs. China has allocated around
incentives to increase productivity on the exist-   tectionist trade measures.                        a third of its US$580 billion recovery plan to
ing land base. The comparative advantage in           It is imperative that the successor to the      green measures. The Canadian Government
wood production is already shifting back to         Kyoto Protocol be transparent and equitable       is investing US$170 million to build up green
regions where land is abundant or relatively        at the global level to ensure that companies      innovation and green products. Apart from the
unattractive for other uses, such as large          operating in each of the major trading areas      Canadian example not all of these investments
South American countries (e.g. Chile) and           are subject to the same rules.                    are in forests, but many can be.
northern boreal forest regions.                       There is a risk that the current economic         Investments, environmental values, public
                                                    situation could slow down the pace of efforts     behaviour, new business opportunities – all
Opportunities in bioenergy                          to regulate climate change. Public priority       these will help society survive today’s perfect
Climate change and energy security priorities       has shifted to the economy, and short-term        storm. The forest industries are in a better posi-
will continue to drive innovation in the forest     risks to economic well-being and employ-          tion than most. The sector already focuses on
products sector as industries seek to increase      ment may not be tolerated. A global climate       the sustainability dimension and on enabling
the use of bioenergy in production processes        change agreement rests on financing, as does      climate change mitigation. The economics
and to find other ways of reducing energy con-      reversing deforestation and forest degrada-       of sustainability as a key asset of the sector
sumption and CO2 emissions. Governments             tion. Under today’s conditions, the billions of   must be proved at a large scale as reliance
around the world are putting incentives in          dollars needed for these are competing with       on renewable energy increases and carbon
place to expand bioenergy production, explor-       national recovery plans.                          neutrality becomes more imperative.
ing ways to make better use of forest waste,          Growing public consciousness of climate           It is likely that the global recession will alter
to mobilize more wood in a sustainable way          change could have a positive impact on            the structure of the global forest products
and in some cases to develop direct forest-         demand for forest products, as their low life-    industry and bring about different business
to-fuel bioenergy products (whether through         time carbon footprint relative to alternative     models. Now is the time to prepare for these
fuelwood or biomass plantations or through          materials becomes more widely recognized.         changes and to undertake the reforms that
biorefineries to create ethanol from cellulose).    Public recognition is needed of the fact that     are needed, at both the business and policy
The promise of cellulosic ethanol with its high     harvesting trees does not add to CO2 emis-        levels.
fuel efficiency has yet to be realized in a com-    sions – that the carbon remains stored in
mercial setting, but governments and industry       harvested wood products. Increasingly, sus-
will continue to invest in the development of       tainable forest management certification is
the needed technology.                              seen by buyers as a minimum requirement
  This is a huge opportunity for the forest         to ensure that products have been produced
products sector, provided there is enough           sustainably. Forest land may become more
access to raw material for different uses –         valued for its environmental services such
and provided the sector is able to drive the        as biodiversity and carbon storage, and as
process and not leave it to the energy or           a source of renewable fuel.
chemical companies. The sector is in a good
position to take the lead, having knowledge         New impetus for sustainability
of the material, the infrastructure to move         The global recession might provide an oppor-
around large volumes of wood, a tradition of        tunity to reinforce the concept of sustain-
sourcing from a multitude of small suppliers        ability in the economy. World leaders have a




                                                                                                                                    Unasylva 233, Vol. 60, 2009
                                                                             13




             Crisis in the wood products industry and markets:
                      perspectives from North America
                                                                        R. Taylor




  The collapse of the housing market

                                                          T
                                                                  he recent collapse of the hous-
  and the economy has hit the North                               ing and wood products markets             Evolution of a crisis
  American forestry sector hard,                                  in the United States of America
  but industry, forest owners and                         was the outcome of years of easy credit
                                                                                                       Weak demand drives housing supply
  governments have options for                            (subprime mortgages), lack of lending
                                                                                                               and prices lower
  helping the sector gain strength                        discipline (greed), underqualification of




                                                                                                                      ➡
  from the crisis.                                        home buyers for loans and overbuilding
                                                                                                       Building product demand and trade
                                                          of homes, all of which led to a credit
                                                                                                                    collapse
                                                          crunch (Figure 1). The net result was




                                                                                                                      ➡
                                                          a collapse of finance and the economy
                                                                                                         Building product prices collapse
                                                          in the United States, which eventually




                                                                                                                      ➡
                                                          transformed into a global collapse.
                                                                                                      The supply chain reduces its purchases
                                                            Consequences for the forest and wood




                                                                                                                      ➡
                                                          products sector in North America have
                                                                                                          Employment and wages erode
                                                          included industry cutbacks, unem-



                                                                                                                      ➡ ➡
                                                          ployment, drops in production, trade
                                                                                                           GDP and the economy slow
                                                          slowdowns and loss of consumer con-
                                                          fidence. This article traces the impacts
                                                                                                         End result: mill curtailment and
                                                          (summarized in the Box) and identifies
                                                                                                                     job losses
                                                          some initiatives and opportunities for
                                                          enabling the sector to survive the crisis
                                                          and emerge stronger.

                                Collapse in the United
                                States housing market
                              and construction sector
                                  has led to decreased
                                 production, cutbacks
                                   and unemployment
                                 in the wood products
                              industry (homebuilders,
                                  Seattle, Washington,
                                         United States)




  Russell Taylor is President of the International
  Wood Markets Group, Inc., Vancouver, British
                                                                                                                                               WIKIMEDIA COMMONS/J. MABEL




  Columbia, Canada.


  This article was developed from a presentation at
  the special event “Impacts of Global Economic
  Turbulence on the Forest Sector” at the nineteenth
  session of the FAO Committee on Forestry,
  Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                   14




1
Collapse of the housing market


                  After overbuilding,
             housing starts collapsed     Monthly                                                                                        Unsold homes
                                          housing starts                                                                               (month’s supply)
                                          210                                                                                                           14

                                                           Single family housing starts
                                          180              Single family unsold new homes                                                               12


                                          150                                                                                                           10


                                          120                                                                                                           8


                                            90                                                                                                          6


                                            60                                                                                                          4


                                            30                                                                                                          2


                                             0                                                                                                          0
                                                    2000      2001       2002       2003       2004       2005       2006       2007        2008

                                          Source: United States Census Bureau, 2009.

                                                         Subprime mortgages created too many unqualified buyers.



            Home prices became too
             high relative to owners’      Income and price set to
                         ability to pay    index of 100 in 1990
                                            240

                                                            Existing home price
                                            220             New home price
                                                            Median family income
                                            200


                                            180


                                            160


                                            140


                                            120


                                            100
                                                  1990      1992       1994      1996       1998      2000       2002       2004       2006      2008
                                                                                                                                               9 months


                                          Source: National Association of Home Builders, 2009a; National Association of Realtors, 2009.




                                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                       15




Housing prices dropped;
    rate of price changes     Case Shiller Home Price Index (existing homes)
peaked much earlier than      (% change, year over year)
           housing starts
                               0.20


                               0.15


                               0.10

                               0.05


                                  0

                              -0.05


                              -0.10

                              -0.15


                              -0.20
                                        2000         2001      2002     2003         2004       2005   2006     2007        2008
                                                                                    Quarter


                              Source: Standard & Poor’s Financial Services, 2009.




  Housing starts in North
 America plunge; Europe       Total housing starts
                              (1 000 units)
          also in trouble
                              2 400


                              2 200

                              2 000

                              1 800


                              1 600

                              1 400

                              1 200


                              1 000

                                                     Europe
                                800
                                                     North America

                                600
                                       1998    1999     2000    2001    2002 2003        2004    2005 2006    2007   2008    2009


                              Source: Canada Mortgage and Housing Corporation, 2009; Euroconstruct, 2009; National Association
                              of Home Builders, 2009a.




Unasylva 233, Vol. 60, 2009
                                                                       16




CRISIS IMPACTS                                    poor financial results from the reces-          ing will again tumble after stabilizing
Housing and the economy                           sion (Table). The Conference Board of           in the first months of 2009.
The collapse of the United States housing         Canada (2009) predicts that the forest            In March 2009, consumer confidence
market has had the following impacts.             products industry in Canada will lose           among United States consumers was
  •	Deteriorating	economy. Gross do-              another US$675 million to US$1 billion          near a 28-year low, reflecting mount-
    mestic product (GDP) dropped 3.8              dollars in 2009.                                ing job losses and a deepening reces-
    percent in the fourth quarter of 2008,          Canadian exports are down dramati-            sion. Builder confidence in the market
    reaching its lowest level since 1982.         cally, as the United States is its major        for newly built single-family homes
    Housing directly contributed -0.85            trading partner in forest products.             remained just above its all-time low as
    percent to GDP in that quarter.                                                               economic woes continued to take their
  •	Declining	 house	 prices. Existing            Labour market: workers hit hard                 toll on potential buyers (National Asso-
    homes for sale had a median sale              In the United States, from January 2006         ciation of Home Builders, 2009b). The
    price of US$170 300, a 14.8 percent           to February 2009, job losses in wood pro-       index held steady at a reading of 9 in
    decline from January 2008, and the            ducts manufacturing totalled 126 000 – or       March, marking the fifth consecutive
    lowest since March 2003.                      22 percent of the total industry employ-        month of single-digit readings; the low
  •	Improving	 housing	 affordability	            ment (United States Bureau of Labor             was 8.5 in December 2008.
    index. For first-time buyers, afford-         Statistics, 2009). The job market for non-
    ability has improved substantially.           farm workers continued to worsen after          ISSUES, OPTIONS AND
    As housing prices fall, mortgage              the United States economy lost 651 000          OPPORTUNITIES
    rates remain at near all-time lows,           jobs in February 2009 alone. More than          It is clear that the United States economy,
    and the United States Government’s            600 000 workers filed claims for jobless        housing sector and forest industry are in
    stimulus package features a first-            benefits in February 2009, the worst per-       trouble. The situation is bad, and it will
    time home buyer tax credit. Nation-           formance since 1982. The unemployment           probably get worse. However, a number
    wide housing affordability surged at          rate jumped to a 25-year high of 8.1 percent    of circumstances and initiatives could
    year-end 2008 to its highest level in         and could be headed to 10 percent before        create opportunities in the forest and
    at least five years (National Associa-        a correction occurs (Figure 3).                 wood products sector.
    tion of Home Builders, 2009a).                  In the state of Arkansas, employment in
                                                  the timber industry has fallen to 32 000        Short-term options for industry
Wood products industry                            in 2008 as compared with 44 000 ten             Options for industry are limited in the
In the United States, production cut-             years ago, a decline of 25 percent. In          short term. The inevitable choice is to
backs and consumption declines have               Montana, there were 2 726 production            reduce timber harvests and let the wood
been significant in nearly every segment          workers employed at sawmills in the             grow. This is a time for cutting output,
of the wood products industry through             fourth quarter of 2008, down 20 percent         shutting down excess capacity, cutting
mid-2009 (Figure 2):                              from 2005, and wages were down 17               costs, conserving cash, reducing lead
   • softwood timber demand is down               percent over the same period.                   times and shrinking inventory.
     50 percent since 2005;                         In Canada, forest industry in the prov-         New export markets could be explored,
   • hardwood timber is down more than            ince of British Columbia has had some           such as the European Union, Brazil,
     35 percent;                                  20 000 layoffs since its peak in 2004, los-     China, India, the Russian Federation
   • structural panels are down 37 percent        ing 20 percent of its total employees.          and Near Eastern countries. However,
     since 2005;                                                                                  as they are also in a downturn, the key
   • engineered wood products are down            Consumers and builders                          to success will be to take advantage of
     30 percent.                                  The biggest drop in wealth on record has        favourable currency exchange rates and
  In Canada, the forest, paper and pack-          shaken Americans as home and stock              shipping rates where possible.
aging industries are seeing extremely             values plunge, raising the risk that spend-       The time is right for diversifying into
                                                                                                  new products. The recession provides
Net earnings of forest, paper and packaging industries                                            an opportunity to explore options for
Year            Western Canada              Eastern Canada                     Canada             wood-based biofuels, other “green” pro-
         (million Can$) (million US$) (million Can$) (million US$) (million Can$) (million US$)   ducts, niche or specialty products and
2007           -386            -350        -106           -95           -492            -445      non-housing wood products.
2008           -641            -580        -954          -870         -1 595         -1 450
                                                                                                    Industries would do well to reposi-
Source: PricewaterhouseCoopers, 2009.
                                                                                                  tion themselves in the supply chain,




                                                                                                                           Unasylva 233, Vol. 60, 2009
                                                                                                                           17




                                                                                                                                                  Options for industry are
                                                                                                                                                  limited in the short term –
                                                                                                                                                  the inevitable choice is to
                                                                                                                                                  reduce timber harvests
                                                                                                                                                  and let the wood grow
                                                                                                                                                  (Pinus strobus forest,
BUGWOOD.ORG/1479027/S. KATOVICH, UNITED STATES FOREST SERVICE




                                                                                                                                                  United States)




                                                      shortening their distance from the end        Government initiatives                          ing code, which previously limited the
                                                      of the chain. They would be advised           Canada. The Bank of Canada (Canada’s            construction of residential wood struc-
                                                      to strengthen their relationships with        central bank) has cut its interest rate to      tures to four storeys, will now permit
                                                      core customers.                               0.5 percent, the lowest in history. This is     them to rise to six storeys, encouraging
                                                        In brief, industries can take advantage     down 4 percent since December 2007.             more wood consumption.
                                                      of the slowdown to re-engineer their          The Job Opportunities Program, a US$24            The 2009–2010 budget of the Province
                                                      markets, their products, their business       million initiative funded by the Govern-        of New Brunswick, published in March
                                                      and their staffing.                           ment of Canada and the Province of              2009, proposes silviculture projects in
                                                                                                    British Columbia, will help to support          addition to tax cuts, investment credits
                                                      Forest owner options                          British Columbia’s forest workers and           and energy rebates (Province of New
                                                      Forest owners could take the opportunity      their families to reduce the impact of          Brunswick, 2009).
                                                      to invest in long-term productivity and       current layoffs.                                  The Canadian Government is funding
                                                      sustainability of forest lands. As asset        The Federal Home Renovation Pro-              silviculture and research and develop-
                                                      prices reach bottom, some good values         gram provides a tax credit of 10 percent        ment programmes and wood products
                                                      are expected in the acquisition of forest     on approved projects.                           market development initiatives. And
                                                      land. Now would be a good time to invest        Changes to British Columbia’s build-          further initiatives are expected.
                                                      in silviculture and forest rehabilitation.
                                                        Companies must correctly position              British Columbia’s
                                                                                                              building code
                                                      themselves to take advantage of new                   has limited the
                                                      markets, for example in biofuels, green              construction of
                                                      building and climate change mitiga-                 residential wood
                                                                                                         structures to four
                                                      tion. Forest certification is a form of               storeys but will
                                                      long-term market positioning. Forest             now permit them to
                                                      owners could take advantage of growing            rise to six storeys,
                                                                                                        encouraging more
                                                      opportunities in carbon trading.                 wood consumption
                                                        Forest owners should be selective in          (wood construction,
                                                      their acquisitions or investments, and            Vancouver, British
                                                                                                       Columbia, Canada)
                                                      time them carefully.
                                                        In these uncertain times, it is important
                                                      to guard against illegal logging in poor
                                                                                                                                                                                           G. DUPRIEz




                                                      business cycles, as there will be more
                                                      temptation to engage in illicit trade.




 Unasylva 233, Vol. 60, 2009
                                                                        18




2
Impact of drop in housing demand on wood products sector


             Sawnwood consumption
              collapses by 50 percent         Million m3                                                                                      Million board feet
                  in the United States;      128                                                                                                         80 000
                    eroding in Canada
                                                            Canada
                                             112                                                                                                         70 000
                                                            United States

                                              96                                                                                                         60 000


                                              80                                                                                                         50 000


                                              64                                                                                                         40 000


                                              48                                                                                                         30 000


                                              32                                                                                                         20 000


                                              16                                                                                                         10 000


                                                0                                                                                                        0
                                                    1990    1992     1994     1996      1998      2000    2002     2004     2006       2008       2010




                                                Source: Council of Forest Industries, 2009; Western Wood Products Association, 2009.
                                                Forecast for 2009 and 2010, International Wood Markets Group, 2009.




               Oriented strand board
             (OSB) production down,           Million m3                                                                                      Million square feet
                especially in Canada          23                                                                                                         28 000

                                                            Canada
                                              20            United States                                                                                24 000


                                              16                                                                                                          20 000


                                              13                                                                                                         16 000


                                              10                                                                                                         12 000


                                               7                                                                                                             8 000


                                               3                                                                                                             4 000


                                               0                                                                                                             0
                                                    1990    1992       1994      1996      1998      2000        2002     2004         2006       2008




                                                Source: International Wood Markets Group, 2009.




                                                                                                                                          Unasylva 233, Vol. 60, 2009
                                                                            19




        Global sawnwood
       consumption down          Million m3 – net                                                                    Billion board feet – net
       and expected to fall      350                                                                                                       148
            further in 2009

                                 300                                                                                                       127


                                 250                                                                                                       106


                                 200                                                                                                       85
                Rest of world
                        Japan
                                 150                                                                                                       63
       Russian Federation/
           Commonwealth
     of Independent States
                  Europe         100                                                                                                       42
                      Canada
                United States     50                                                                                                       21


                                    0                                                                                                      0
                                         1991     1993     1995      1997       1999     2001      2003       2005       2007       2009

                                  Source: International Wood Markets Group, 2009; FAO, 2009.


                                          Early reports indicate a bigger decline for Europe in 2009 than shown.



           More slowdowns
          in sawn softwood      1 000 m3 – net                                                                    Billion board feet – nominal
           exports between                                                                                                                 3 000
                                4 800
              North America
                and Europe                            Europe to North America
                                                      North America to Europe
                                4 000                                                                                                      2 500



                                3 200                                                                                                      2 000



                                2 400                                                                                                      1 500



                                1 600                                                                                                      1 000



                                  800                                                                                                      500



                                     0                                                                                                     0
                                         1991       1993     1995      1997       1999      2001       2003       2005       2007

                                  Source: USDA Foreign Agricultural Service, 2009; International Wood Markets Group, 2009.


                                                 Weak demand and low prices are problematic for exporters.




Unasylva 233, Vol. 60, 2009
                                                                     20




3
Impact on the labour market


               Soaring unemployment
                  in the United States:        % unemployment
                heading for 10 percent
                                                9



                                                8



                                                7



                                                6



                                                5



                                                4



                                                3
                                                1999      2000      2001      2002      2003      2004    2005   2006    2007    2008       2009



                                            Source: United States Bureau of Labor Statistics, 2009.




United	States.	The President’s US$275       government agreed to buy mortgages and                    can be put to work to establish plantations
billion Homeowner Affordability and         other assets from financial institutions.                 or improve forests, increasing their value.
Stability Plan aims to support between      It has encouraged banks to lend among                     Labour is the biggest cost component.
7 million and 9 million existing home-      themselves again, but it has done little to               Initiatives that involve improvements to
owners who might otherwise be at risk       unfreeze consumer credit markets or to                    forest land can range from silviculture to
of foreclosure. Slowing the rate of fore-   resolve how to renegotiate the estimated                  salvage to reclamation.
closures is intended to stabilize hous-     US$2 trillion of toxic mortgages that                       The United States industry can position
ing prices, which in turn should benefit    need to be discounted or written off.                     itself to take advantage of the coming
all homeowners, encourage qualified           The United States economic stimulus                     economic stimulus, including exten-
buyers to enter the market and give         package includes expanded tax credits                     sion of unemployment benefits and
homebuilders enough confidence to           for energy-efficient home improve-                        green energy investments, by expand-
buy upward. The plan has three main         ments. The idea is to put more money                      ing investment in forests with worker
components:                                 in consumers’ pockets by providing                        programmes.
   • supporting homeowners who are cur-     financial incentives for homeowners to                      Funded programmes could grow the
     rent with their payments but cannot    “go green”. However, this part of the                     market by increasing wood consumption
     refinance;                             programme is not expected to have a                       to displace competing materials.
   • supporting “at-risk” homeowners        great impact, since it is not yet a priority                The obvious short-term benefit is in
     who are current on their payments      in the eyes of consumers.                                 putting people back to work. The obvious
     but are at imminent risk of default;     Here, too, more initiatives are expected.               long-term benefits include raising the
   • boosting credit availability for all                                                             productivity of forest land, sequestering
     mortgages by allocating an addi-       Government initiatives and forests                        carbon, maintaining wildlife, clean air,
     tional US$200 billion.                 Forestry is especially well placed to con-                clean water and other environmental
  The Troubled Asset Relief Program is      tribute to economic renewal and could cre-                benefits, while improving economic
a bail-out programme through which the      ate many, many jobs. Unemployed workers                   well being.




                                                                                                                                Unasylva 233, Vol. 60, 2009
                                                                              21




  Non-farm payrolls in the
    United States plunge             Cumulative worker
                                     net change                                              Month
                                     (1 000)
                                           1/2008      3/2008            5/2008        7/2008        9/2008     11/2008     1/2009
                                         0

                                     -500


                                   -1 000

                                   -1 500

                                   -2 000


                                   -2 500

                                   -3 000


                                   -3 500

                                   -4 000

                                    -4 500



                                   Source: United States Bureau of Labor Statistics, 2009.




    A fundamental question, however,                   • in making the most of the unemployed,                  Columbia, Canada. Available at: www.cofi.
  is what is the real cost of government                 through work programmes;                               org/library_and_resources/order_form.htm
  funded or make-work programmes for                   • in providing a solution for climate                  Euroconstruct. 2009. Prospects for the
  forestry. It is necessary to ascertain                 change and reducing greenhouse gas                     European construction markets 2009–2011:
  that the social benefits outweigh the                  emissions;                                             the crisis in the European construction
  net financial costs.                                 • in opportunities for bioenergy. u                      market. Summary report. Vienna, Austria.
                                                                                                                Available at: www.euroconstruct.org/
  SUMMARY                                                                                                       publications/publications.php
  The key to a stronger United States                                                                         FAO. 2009. FAOSTAT database. Rome.
  economy is strengthening of banking                                                                           Available at: faostat.fao.org
  and credit markets, which will not occur                                                                    International Wood Markets Group.
  until housing prices stabilize. A key                            Bibliography                                 2009. Wood Markets International
  question is whether the latest stimulus                                                                       Monthly Report 2009. Available at: www.
  package (including the Homeowner                  Canada Mortgage and Housing                                 woodmarkets.com
  Affordability and Stability Plan) will              Corporation. 2009. Statistics and data.                 National Association of Home Builders.
  help bring about this stability. If it sta-         Ottawa, Canada. Available at: www.cmhc.                   2009a. NAHB/Wells Fargo Housing
  bilizes prices at an artificial level, then         ca/en/inpr/homain/stda/index.cfm                          Opportunity Index. Washington, DC, USA.
  the stability will probably not last. It          Conference Board of Canada. 2009.                           Available at: www.nahb.org/hoi
  is likely that the situation for United             Canada’s wood products industry: industrial             National Association of Home Builders.
  States housing and wood products will               outlook spring 2009. Ottawa, Canada.                      2009b. NAHB/Wells Fargo Housing
  get worse before it gets better in 2010.            Available at: www.conferenceboard.ca/                     Market Index. Washington, DC, USA.
  It is still early in North America for              documents.aspx?DID=3110                                   Available at: www.nahb.org/hmi
  a real plan. But in the meantime, the             Council of Forest Industries. 2009. Statistics            National Association of Realtors. 2009.
  forest sector has a role:                           Canada Reports. Vancouver, British                        Housing and economic indicators. Chicago,




Unasylva 233, Vol. 60, 2009
                                                                   22




  Illinois, USA. Available at: www.realtor.     Available at: www.gnb.ca/0160/budget/           Washington, DC, USA. Available at: www.
  org/research/research/ecoindicator            buddoc2009/index-e.asp                          census.gov/const/www/newresconstindex.
PricewaterhouseCoopers. 2009. Global          Standard & Poor’s Financial Services.             html
  forest and paper industry: net earnings.      2009. S&P/Case-Shiller home price indices.    USDA Foreign Agricultural Service. 2009.
  Quarterly Summary Reports. Vancouver,         Available at: www2.standardandpoors.            Wood products. Washington, DC, USA,
  British Columbia, Canada. Available           com/portal/site/sp                              United States Department of Agriculture.
  at: www.pwc.com/CA/en/forest-paper-         United States Bureau of Labor Statistics.         Available at: www.fas.usda.gov/ffpd/
  packaging/global-net-earnings-summary.        2009. Labor force statistics from the           forest.asp
  jhtml                                         current population survey. Washington, DC,    Western Wood Products Association.
Province of New Brunswick. 2009. Budget         USA. Available at: www.bls.gov/data             2009. Lumber Track. Portland, Oregon.
  2009–2010: Leadership for a stronger        United States Census Bureau. 2009. New            Available at: www2.wwpa.org/SERVICES/
  economy – toward self-sufficiency.            residential construction (building permits,     StatisticalReports/tabid/431/Default.aspx u
  Fredericton, New Brunswick, Canada.           housing starts and housing completions).




                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                           23




           Restoring hope: the United States Forest Service’s
                   economic recovery programme
                                                          A.R. Kimbell and H. Brown




  To ease the burden of recession,

                                                       I
                                                            n 2008, the United States of America      ever, housing starts fell again, as did
  the United States of America is                           plunged into what some have called        new home sales; yet major banks such
  investing in projects that restore                        its worst economic crisis since the       as Wells Fargo recorded profits for the
  and protect forests, improve                         1930s (Elliott, 2008; Hilsenrath, Serena       first quarter of 2009. Nevertheless, even
  recreational facilities and put                      and Paletta, 2008). A financial crisis         a recovering economy will continue to
  young people to work.                                beginning in 2007 triggered a deepening        shed jobs until demand for labour catches
                                                       recession in 2008–2009 as lenders lost         up. Some economists foresee unemploy-
                                                       confidence in borrowers’ ability to repay.     ment rates climbing into the double digits
                                                       Major financial institutions tottered at the   by 2010 (Clark, 2009).
                                                       brink of ruin, and some entirely failed.         What can the United States Forest
                                                       With credit markets frozen, pillars of the     Service do to help?
                                                       United States economy such as the auto
                                                       industry struggled to survive.                 OPPORTUNITIES FOR STIMULUS
                                                         From January 2008 to January 2009,           PROJECTS
                                                       most economic indicators plummeted,            The mission of the United States Forest
                                                       from wholesale trade (down 15.4 per-           Service is to sustain the health, diversity
                                                       cent), to new construction (down 9.1           and productivity of the nation’s forests
                                                       percent), to new housing starts (down          and grasslands to meet the needs of
                                                       56.3 percent), to retail trade and food        present and future generations. The
                                                       services (down 9.7 percent) (United            agency fulfills its mission through public
                                                       States Census Bureau, 2009). Stock mar-        land management, conservation-related
                                                       kets plunged, losing up to 40 percent of       research and extension services for pri-
                                                       their value; in early 2009, the Dow Jones      vate forest landowners. All three areas
                                                       industrial average reached its lowest          hold promise for creating jobs and stimu-
                                                       level since 1997. From October 2008 to         lating local economies.
                                                       March 2009, the United States economy            The Forest Service manages a system of
                                                       lost more than 3.7 million jobs (Bureau        national forests and grasslands covering
                                                       of Labor Statistics, 2009), raising the        77 million hectares, about 8 percent of
                                                       level of unemployment to 8.5 percent,          the United States land area (Map). These
                                                       the highest since 1983. Many people            public lands are spread across 43 of
                                                       lost their homes; by December 2008,            the nation’s 56 states and territories,
                                                       almost 12 percent of United States mort-       from Alaska to Puerto Rico. With almost
                                                       gages were delinquent or in foreclosure        29 000 full-time employees, the Forest
  Abigail R. Kimbell, at the time this article was     (OECD, 2009).                                  Service already provides some of the
  written, was Chief of the United States Forest         In February 2009, hope-inducing signs        best, most dependable rural jobs in the
  Service, Washington, DC.                             of recovery appeared. Manufacturers’           United States. Many of the communities
  Hutch Brown is a Policy Analyst for the United
  States Forest Service, Washington, DC.               shipments, inventories and orders, after       most affected by the economic downturn
                                                       six consecutive monthly declines, rose         are located near national forests and
                                                       by 1.8 percent (United States Census           grasslands, and agency employees are
  This article was developed from a presentation at
  the special event “Impacts of Global Economic        Bureau, 2009); new housing starts              woven into the community fabric; they
  Turbulence on the Forest Sector” at the nineteenth   climbed by 17.2 percent and new home           know local needs, and they have the local
  session of the FAO Committee on Forestry,            sales by 8.2 percent. In March, how-           capacity to provide project planning,
  Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                                                               24




                                                                                                                                     A LEGACY OF SOCIAL SERVICE:
                                                                                                                                     THE CIVILIAN CONSERVATION
                                                                                                                                     CORPS
                                                                                                                                     The United States Forest Service has
                                                                                                                                     a long history of serving the nation by
                                                                                                                                     creating new jobs. In 1929, a financial
                                                                                                                                     crisis triggered a worldwide depression
                                                                                                                                     of staggering proportions, which lasted
                                                                                                                                     about ten years in the United States. At
                                                                                                                                     the height of the crisis, almost a quarter of
                                                                                                                                     the United States workforce was unem-
                                                                                                                                     ployed. In response, President Franklin
UNITED STATES FOREST SERVICE




                                                                                                                                     D. Roosevelt established the Emergency
                                                                                                                                     Conservation Work Act, better known as
                                                                                                                                     the Civilian Conservation Corps (CCC).
                                                                                                                                     Its purpose was to provide jobs; stimu-
                                                                                                                                     late spending; reverse deforestation,
                               Note: Green areas are national forests; orange areas are national grasslands.                         soil erosion and other forms of natural
                         United States National Forest System                                                                        resource degradation; and build roads,
                                                                                                                                     trails, campgrounds and other infrastruc-
                         training, employment, equipment and                            federal, state and local partners to forge   ture on public lands.
                         logistical support.                                            a highly effective interagency system of       From 1933 to 1942, the United States
                           Forest Service researchers work closely                      wildland fire management. In addition,       Department of Labor enrolled millions
                         with national forest managers to plan                          municipalities across the United States      of unemployed citizens for six-month
                         fuels and forest health treatments for                         manage about 28 million hectares of          terms of service in one of the most
                         landscapes beleaguered by such grow-                           urban forests. The Forest Service works      successful public works programmes
                         ing threats as invasive species, pest and                      with municipal governments nationwide        in United States history. The Forest
                         disease infestations and uncharacteristi-                      to protect and restore neighbourhood         Service administered more than half of
                         cally severe wildfires, all exacerbated by                     trees and parks.                             all CCC projects, thereby expanding
                         climate change. Researchers also moni-                           The opportunities to provide new jobs      the agency’s mission focus to include
                         tor project results and seek more effi-                        and stimulate the economy are vast. The      social service on a national scale.
                         cient and cost-effective ways to convert                       National Forest System alone has a deficit   Among other accomplishments, CCC
                         removed biomass into energy, partly to                         in deferred capital maintenance of more      planted more than 3 billion trees, built
                         offset fossil fuel use. Such research and                      than US$5.1 billion for roads, bridges,      more than 97 000 miles (156 000 km)
                         monitoring needs and activities might                          trails, campgrounds and other facilities     of road, erected more than 3 470 fire
                         translate into stimulus jobs.                                  in need of repair (USFS, 2008). Although     towers and devoted more than 4.2 mil-
                           Agency extension programmes might                            forests in the United States are generally   lion person-days to fighting wildfires
                         also contribute. From its inception in                         on a path towards sustainability (USFS,      and more than 7.1 million person-days
                         1905, the Forest Service has worked                            2004), many require treatment. A 2002        to restoring watersheds and enhancing
                         closely with states and private forest                         study, for example, found that about         wildlife habitat (Civilian Conservation
                         landowners to improve forest health                            159 million hectares nationwide were         Corps Legacy, 2009).
                         nationwide. About 57 percent of forest                         at moderate to high risk of especially         CCC ended in 1942, but the Forest
                         lands in the United States are privately                       severe wildfires (Schmidt et al., 2002).     Service later reaffirmed its commit-
                         owned, primarily by small non-industrial                       By one estimate, treatment for the at-       ment to social service through a series
                         private landowners. The agency has pro-                        risk area of the National Forest System      of legacy programmes. The agency cur-
                         vided them with financial support and                          alone (about 29 million hectares) would      rently administers the Job Corps, a train-
                         technical assistance through the states,                       cost US$12.4 billion (USFS, 2000). As        ing programme for young people from
                         each of which is responsible for regu-                         the Forest Service prepares to help the      disadvantaged backgrounds; the Youth
                         lating commercial forestry and private                         nation address the current recession, it     Conservation Corps, a summer employ-
                         forest use within its own borders. The                         can choose from a plethora of potential      ment programme for teenagers; and the
                         Forest Service has also worked with                            green investments.                           Senior Community Service Employment




                                                                                                                                                               Unasylva 233, Vol. 60, 2009
                                                                                25




                                The Civilian Conservation
                                 Corps (CCC) created jobs
                                  during the depression of
                                the 1930s: a crew going to
                               fight invasive gypsy moth,
                              attacking oak forests in the
                              northeastern United States




                                                                                                                                                     BUGWOOD.ORG/1275050/USFS ARCHIVE
  Program, a volunteer programme for                         spending, almost four times more than        percent of its ARRA funds for projects
  older citizens. All three programmes                       the US$1.15 billion in stimulus funding      in 21 states (USFS, 2009a). Projects
  involve conservation-related training                      available to the agency. The national        are of four kinds: restoring resources
  and work on or near national forests                       coordinators have prioritized the propos-    on public lands; improving recreational
  and grasslands. The agency’s legacy of                     als according to criteria ranging from       facilities, partly to promote safety and
  social service puts the Forest Service                     project readiness, to biophysical meas-      health; creating opportunities for youth;
  in an ideal position to respond to the                     ures, to local unemployment levels.          and reducing fire risk to communities
  current economic crisis.                                     It was essential to move quickly. The      while restoring ecosystems to health.
                                                             faster unemployed citizens could go
  AMERICAN RECOVERY AND                                      back to work, the greater the economic       Restoring resources
  REINVESTMENT ACT: FOREST                                   stimulus would be. However, stimu-           ARRA projects will improve a range of
  SERVICE ROLE                                               lus spending was designed to balance         resources on public lands, both natural
  In February 2009, the President of the                     urgency against the need for account-        and infrastructural. Some projects will
  United States signed the American                          ability and cost-effectiveness. Accord-      rebuild vital access roads to make them
  Recovery and Reinvestment Act (ARRA)                       ingly, the focus has been on projects        safer for forest visitors and local resi-
  into law. The act authorized US$787                        that are “shovel ready” – ready to start     dents alike, particularly in the event of an
  billion in tax adjustments and stimulus                    without the need for more planning and       emergency. Other projects are designed
  spending, including US$1.15 billion for                    consultation. Work on approved projects      to improve water quality in lakes and
  projects administered by the Forest                        has begun quickly and will usually be        streams or to restore critical fish habitat
  Service. The agency’s efforts will, in                     completed within two to three years.         and passage.
  time, put tens of thousands of unem-                         The new stimulus jobs are in the private     In Alaska, for example, the commu-
  ployed Americans back to work. The                         sector. Although they are not designed to    nity of Hoonah depends on a crum-
  overarching purpose mirrors that of the                    be permanent, they might open doors to       bling forest road for its lifeline to vital
  authorizing legislation: to create as many                 a career in conservation while providing     forest resources in the Tongass National
  jobs as quickly as possible and get money                  workers with new and valuable skills         Forest. Culverts installed long before the
  flowing through the economy again.                         and opportunities that they might oth-       advent of modern design often plug up
    Local managers from all three branches                   erwise not have had. Projects are wide       during heavy rains, threatening to wash
  of the Forest Service (National Forest                     ranging, from cleaning up abandoned          out whole sections of road. The Forest
  System; Research and Development;                          minelands in remote areas to restoring       Service is spending US$1.45 million
  State and Private Forestry) have submit-                   forests in rural areas or in major metro-    in ARRA funds to resurface 18 miles
  ted more than 2 500 project proposals to                   politan centres.                             (29 km) of road, eliminate another 20
  the agency’s economic recovery coor-                         Within five weeks after the President      miles (32 km) of unneeded road and
  dinators. The proposals are collectively                   signed the authorizing legislation, the      remove or replace 120 deficient culverts.
  worth about US$4 billion in stimulus                       Forest Service had already disbursed 10      This work will help improve stream




Unasylva 233, Vol. 60, 2009
                                                                                                    26




                                                                                                         A rebuilt culvert       use, thereby stimulating local businesses
                                                                                                         in the Umpqua           across eastern Kentucky.
                                                                                                         National Forest,
                                                                                                         Oregon: many              Some ARRA projects are designed to
                                                                                                         Forest Service          make recreational facilities “greener”,
                                                                                                         projects funded         for example by retrofitting buildings with
                                                                                                         under the American
                                                                                                         Recovery and            new energy-efficient windows. A project
                                                                                                         Reinvestment            in Alabama will upgrade a research
                                                                                                         Act are designed        laboratory to meet standards set by the
                                                                                                         to improve water
UMPQUA NATIONAL FOREST/L. BERNSTEIN




                                                                                                         quality and restore     United States Green Building Council
                                                                                                         critical fish habitat   (under a certification programme called
                                                                                                         and passage             Leadership in Energy and Environmental
                                                                                                                                 Design for Existing Buildings). Such
                                                                                                                                 upgrades include digital controls as well
                                                                                                                                 as new heating and air conditioning sys-
                                                                                                                                 tems and new measures for saving water
                                                                                                                                 and managing waste.

                               quality and reopen ten blocked fish pas-       In January 2009, for example, an ice               Creating opportunities for youth
                               sages so that salmon will regain access      storm ravaged eastern Kentucky, shutting             California is one of the states hardest
                               to many miles of upstream spawning           down much of the Daniel Boone National               hit by recession; its unemployment rate
                               habitat.                                     Forest. This area is heavily dependent on            in February 2009 already exceeded 10
                                 Most ARRA projects involve construc-       tourism as a driver of the local economy,            percent (Lifsher, 2009). Recessions tend
                               tion; these tend to create more jobs at      especially since the failure of a local              to hit young people especially hard by
                               higher wages than other project types        sawmill and a car parts manufacturer.                causing elimination of entry-level jobs.
                               (USFS, 2009b, 2009c). Such projects          The Forest Service invested more than                Fortunately, California has a network of
                               provide work for skilled equipment           half a million dollars of ARRA funds                 programmes with roots in the old CCC,
                               operators and construction workers in        to repair storm damage throughout the                including AmeriCorps, the California
                               hard-hit rural areas while sustaining a      forest. Using local labour, the agency is            Conservation Corps, the Los Angeles
                               critical sector of the economy.              clearing forest roads, removing hazard               Conservation Corps and the Urban Youth
                                                                            trees and making trails passable again.              Conservation Corps.
                               Improving recreational facilities            These jobs are putting people back to                  National forests cover 20 percent of
                               Outdoor recreation is tremendously           work at a variety of skill levels. By mak-           California’s land area, with all kinds
                               popular in the United States. Each year,     ing it possible to reopen the national               of job opportunities: trails in need of
                               the national forests and grasslands alone    forest in time for summer 2009, the                  work, recreational areas in need of
                               record about 200 million visits. Espe-       Forest Service revitalized recreational              repair, facilities in need of maintenance,
                               cially when times are hard, a week or
                               two spent hiking, fishing, camping or                  Fishing in the
                                                                               Apache-Sitgreaves
                               birdwatching in a national forest can               National Forest,
                               be an attractive low-cost alternative to         Arizona: recovery
                               an expensive resort holiday. However,             funds are used to
                                                                                    revitalize forest
                               visitors rightly expect good access and         recreation, offering
                                                                                                                                                                                 APACHE-SITGREAVES NATIONAL FOREST/B. DYKSTRA




                               safe facilities, and weather alone can                  inexpensive
                               confound their expectations.                       opportunities for
                                                                                 relaxation in hard
                                 In the heavily forested eastern United     times and stimulating
                               States, winter often brings devastating            local businesses
                               ice storms. Downed branches and trees
                               can block roads into the national forests,
                               making trails, campgrounds and other
                               recreational facilities not only inacces-
                               sible, but also unusable until the damage
                               is repaired.




                                                                                                                                                          Unasylva 233, Vol. 60, 2009
                                                                                               27




                                                           Young people
                                                        restoring habitat
                                                         for endangered
                                                      species, Colorado:
                                                      youth employment
                                                       programmes help
                                                           young people
                                                         learn new skills
                                                      while gaining work
                                                           experience in




                                                                                                                                                                      ARAPAHO-ROOSEVELT NATIONAL FOREST/W.R. MAGWIRE
                                                           conservation




                           hazardous fuels in need of reduction,
                           etc. The Forest Service has released
                           US$3.75 million in ARRA funding for
                           such projects across the state, employ-
                           ing hundreds of young people through
                           the existing network of youth corps. By
                           restoring forests, rebuilding recreational
                           facilities and making communities safer
                           from wildfire, young people are learning         current conditions, destruction by fire          Such projects create critical jobs in
                           new skills while gaining experience and          could reach 5 million hectares per             rural areas, and they are highly cost effec-
                           insight into conservation.                       year.                                          tive. Economic studies have shown that
                                                                              The Forest Service is using ARRA funds       ecological restoration generates more
                           Reducing fire risk and restoring forest          to address the threat by reducing excess       jobs than any other project type (USFS,
                           health                                           fuels and restoring forest health. In the      2009c). Moreover, the biomass removed
                           Since the 1980s, fire seasons in the             Humboldt National Forest in Nevada, for        can be used for bioenergy, creating still
                           United States have gotten steadily worse.        example, the agency has spent US$1.3           more jobs. In Nevada, for example, a
                           Some fires now reach catastrophic pro-           million to treat about 3 120 ha of forest      local mill used removed biomass to
                           portions unheard of a generation ago,            and rangeland, partly to reduce the risk       manufacture wood pellets, helping to
                           spreading across 200 000 ha or more              of catastrophic fire. Forest health treat-     mitigate climate change by offsetting
                           and costing billions of dollars in dam-          ments in Nevada’s pine and mixed-con-          fossil fuel use. Funds no longer needed
                           age to homes and communities. In 2004            ifer ecosystems entail removing excess         for rebuilding burnt homes and com-
                           and 2005, more than 3 million hectares           vegetation, incidentally helping forests       munity structures can instead be used
                           burned nationwide; in 2006 and 2007,             adapt to climate change in a region where      to help the economy recover.
                           more than 3.5 million hectares. Under            water is already in short supply.
                                                                                                                           RESTORING HOPE
                                                                                                  Prescribed burning       Projects like these – rebuilding infra-
                                                                                                  to sustain open
                                                                                                  ponderosa pine
                                                                                                                           structure, putting young people to work,
                                                                                                  woodland, Montana:       restoring forests to health, and protecting
                                                                                                  recovery funds are       homes and communities – offer hope for
                                                                                                  used to help diminish
                                                                                                  wildfire risk by
                                                                                                                           the future. Of course, the Forest Service
                                                                                                  reducing excess fuels    has only just begun; project implemen-
                                                                                                  and to restore forest    tation is still under way. The American
                                                                                                  health while creating
                                                                                                  critical jobs in rural
                                                                                                                           Recovery and Reinvestment Act was
CUSTER NATIONAL FOREST/D. SASSE




                                                                                                  areas                    designed as a one-time shot in the arm
                                                                                                                           for an ailing economy. No one knows
                                                                                                                           for sure how effective it will be. Moreo-
                                                                                                                           ver, ARRA projects will barely dent the
                                                                                                                           multi-billion-dollar funding backlogs for
                                                                                                                           fuels and forest health treatments as well
                                                                                                                           as roadwork and facilities construction




Unasylva 233, Vol. 60, 2009
                                                                 28




and maintenance in the national forests                                                       United States Census Bureau. 2009.
and grasslands.                                                                                 Manufacturing, mining, and construction
  Yet the signs of success are mounting:                                                        statistics: New residential construction
by putting people back to work, helping                  Bibliography                           (building permits, housing starts, and
families bridge hard times and getting                                                          housing completions). Washington,
money flowing through the economy           Bureau of Labor Statistics. 2009. Economy           DC, USA, United States Department
again, the Forest Service is helping to       at a glance. Washington, DC, USA, United          of Commerce. Internet document,
ease the burden of recession in tangible      States Department of Labor. Internet              available at: www.census.gov/const/www/
ways. Perhaps even more important are         document, available at: www.bls.gov/eag/          newresconstindex_excel.html
the intangible ways in which the agency       eag.us.htm                                      USFS. 2000. Protecting people and sustaining
is helping. Business leaders understand     Civilian Conservation Corps Legacy. 2009.           resources in fire-adapted ecosystems:
that the state of the national economy        CCC brief history. Internet document,             a cohesive strategy. The Forest Service
greatly depends on the national state of      available at: www.ccclegacy.org/CCC_              management response to the General
mind (Hill, 2009). Fear can grind eco-        brief_history.htm                                 Accounting Office Report GAO/RCED-99-
nomic activity to a halt when lenders are   Clark, A. 2009. Bleak outlook for U.S.              65. Administrative report. Washington,
afraid to extend credit and consumers         workers as jobless rate hits 26-year              DC, USA, United States Forest Service
are afraid to spend money. At a time of       high. The Guardian, 4 April. Available            (USFS).
widespread caution and doubt, ARRA is         at: www.guardian.co.uk/business/2009/           USFS. 2004. National report on sustainable
designed to restore hope and instil con-      apr/04/us-unemployment-rate-soars                 forests – 2003. FS-766. Washington, DC,
fidence. Every project puts workers on      Elliott, L. 2008. A financial crisis unmatched      USA.
the ground for local people to see; every     since the Great Depression, analysts            USFS. 2008. Financial statement, required
project leaves lasting results for people     say. The Guardian, 18 March. Available            supplementary information: deferred
to talk about after the workers are gone.     at: www.guardian.co.uk/business/2008/             maintenance. Administrative report.
By modelling a spirit of optimism and         mar/18/creditcrunch.marketturmoil1                Washington, DC, USA.
enterprise, the Forest Service is subtly    Hill, S. Jr. 2009. Let’s fix our economic state   USFS. 2009a. Forest Service ARRA
setting the stage for recovery, inspiring     of mind. Manufacturing Business Technology,       projects by states. Administrative report.
a “can-do” attitude that, in time, can        1 March. Available at: www.mbtmag.com/            Washington, DC, USA. Available at:
bring renewed prosperity.                     article/CA6650035.html                            fs.usda.gov/Internet/FSE_DOCUMENTS/
  The United States Forest Service is       Hilsenrath, J., Serena, N.G. & Paletta, D.          stelprdb5053328.pdf
investing in the future. People still         2008. Worst crisis since ’30s, with no end      USFS. 2009b. Forest Service activities and
marvel over the sound stone structures        yet in sight. The Wall Street Journal, 18         the American Recovery and Reinvestment
built by the old CCC, many of which           September. Available at: online.wsj.com/          Act of 2009: estimating measures of
have become historic landmarks. The           article/SB122169431617549947.html                 economic distress. Administrative report.
many stimulus projects carried out under    Lifsher, M. 2009. California unemployment           Washington, DC, USA.
ARRA, like those of CCC, will provide         rate reaches 10.1%. Los Angeles Times,          USFS. 2009c. Forest Service activities and
lasting benefits to people. Ultimately,       28 February. Available at: www.latimes.           the American Recovery and Reinvestment
they will help the Forest Service ful-        com/business/la-fi-california-jobs28-             Act of 2009: differentiating economic
fil its mission by delivering a range of      2009feb28,0,3811550.story                         benefits from investments across project
ecosystem services for generations to       OECD. 2009. Interim economic outlook,               types. Administrative report. Washington,
come.u                                        March 2009: country note – United                 DC, USA. u
                                              States. Paris, France, Organization
                                              for Economic Co-operation and
                                              Development. Available at: www.oecd.
                                              org/dataoecd/17/7/42441022.pdf
                                            Schmidt, K.M., Menakis, J.P., Hardy,
                                              C.C., Hann, W.J. & Bunnell, D.L. 2002.
                                              Development of coarse-scale spatial data for
                                              wildland fire and fuel management. General
                                              Technical Report RMRS-87. Fort Collins,
                                              Colorado, USA, United States Forest Service,
                                              Rocky Mountain Research Station.




                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                            29




           How forest plantations can contribute to economic
                      renewal in South America
                                                                     I. Tomaselli




  In those South American countries

                                                       A
                                                                  lthough the current economic        provide raw material to a competitive
  where forest plantations are                                    crisis began in the United States   timber industry, contributing to the sus-
  important or have potential for                                 of America, it is now affecting     tainable development of the region.
  development, investment in them is                   most countries around the world. Demand          This article describes the impacts of
  one option for creating jobs.                        and prices are declining, economic activi-     the global financial crisis on the region’s
                                                       ties are slowing down and unemployment         economy and the forest sector in par-
                                                       is increasing. Almost one year after the       ticular, and examines the potential for
                                                       crisis started, there is no consensus on       creating jobs based on a forest plantation
                                                       how the global economy will be affected        programme.
                                                       and when recovery will start.
                                                         Crisis in South America started in late      IMPACTS OF FINANCIAL CRISIS IN
                                                       2008. Large economies in the region            SOUTH AMERICA
                                                       have seen demand for and prices of             Most countries in the region have not
                                                       their exported products decline. For-          properly assessed the impact of the cri-
                                                       eign direct investment has decreased           sis on their economies or the potential
                                                       and capital repatriation and dividend          implications for their societies or, in some
                                                       remittances have increased, contributing       countries, for their eventual political sta-
                                                       to the devaluation of national curren-         bility. Furthermore, as in other parts of
                                                       cies, economic slowing and increasing          the world, opinion diverges on the likely
                                                       unemployment.                                  duration of the crisis and the efficacy
                                                         The forest sector is important in several    of measures taken by governments to
                                                       countries in the region, and forest-based      reverse the current downward trend.
                                                       activities have potential for develop-           The impacts of the crisis vary among the
                                                       ment. Investment in forest plantations         world’s countries depending on several
                                                       is one option for generating employment        factors. South American economies, for
                                                       in the region in a relatively short time.      instance, with a few exceptions, are less
                                                       In the long-term, forest plantations can       globalized than those of most developed

                                                          Workers in a large-
                                                              scale nursery,
                                                           Brazil: plantation
                                                              establishment
                                                        involves high labour
                                                                     demand




  Ivan Tomaselli is Director, STCP Engenharia de
  Projetos Ltda, Curitiba, Brazil.
                                                                                                                                                 FAO/FO-5154/VERACEL CO.




  This article was developed from a presentation at
  the special event “Impacts of Global Economic
  Turbulence on the Forest Sector” at the nineteenth
  session of the FAO Committee on Forestry,
  Rome, 20 March 2009.




Unasylva 233, Vol. 60, 2009
                                                                                          30




TABLE 1. Importance of exports: Brazil compared with some Asian economies,                                                                       manufactured goods are also a problem.
2007                                                                                                                                             Car exports from Brazil, as from Mexico,
 Country                                   Exports                            Exports as percent of GDP                                          were almost halved in volume over the
                                         (billion US$)                                                                                           first few months of 2009. These are some
 Brazil                                        200                                                               15                              examples of the breadth of the crisis in
 Malaysia                                      196                                                               49                              geographic and sectoral terms.
 Singapore                                     350                                                               66                                The intensity of the crisis in South
 Taiwan (Province of China)                    273                                                               36                              America varies among countries. In early
 Republic of Korea                             458                                                               35                              March 2009, Brazil officially announced
Source: CIA, 2009.                                                                                                                               that in the last three months of 2008 the
                                                                                                                                                 country’s GDP declined by 3.6 percent
and rapidly developing countries; thus          omies to varying degrees. It is estimated                                                        compared with the previous quarter,
international trade represents a relatively     that exports from the region in 2009 will                                                        and further reductions were expected
small share of the national gross domestic      be about 30 percent lower in value than                                                          to take place during the first months of
product (GDP).                                  in 2008. Based on the contribution of                                                            2009 (Patu and Fagundes, 2009). This
  Brazil has the largest economy of             exports to local economic development,                                                           places Brazil as one of the most affected
the region, but in spite of its efforts to      Patu and Fagundes (2009) predicted that                                                          countries in the world (Figure 1). In
increase international trade, its exports in    the decline in exports alone could limit                                                         other South American countries, such
2008 reached a little more than US$200          the region’s economic growth in 2009 to                                                          as Argentina, the impact (so far) has
billion, representing not more than 15          less than 1 percent, with some countries                                                         been less intense.
percent of the country’s GDP. In con-           expected to enter a recession.                                                                     The strong reduction of economic activ-
trast, in most Asian countries exports are        Bolivia, Ecuador and Venezuela have                                                            ity in Brazil shows that reduction in inter-
higher in both absolute and relative terms      seen their export earnings strongly                                                              national trade is not the only factor affect-
(Table 1). The Asian Development Bank           affected by the drop in oil and gas prices.                                                      ing economies around the world. Capital
(Pilling, 2009) estimates that 60 percent       Bolivia, Brazil and Chile are affected by                                                        movements around the world are possibly
of the final consumption of Asian pro-          the reduction of demand for and prices                                                           even more important than exports. In
ducts takes place in developed countries,       of minerals in the international market.                                                         South American countries, as in other
and this is a good indicator of how Asian       Argentina and Brazil face enormous                                                               developing and emerging countries,
countries have been participating in the        reductions of earnings from agricultural                                                         foreign direct investments are quickly
globalization process.                          exports as prices of soybeans and other
  The economic downturn that has taken          agriculture commodities have declined.                                                                                                                   1
hold in importing developed countries is        In the relatively developed South Ameri-                                                                                        GDP reduction in selected
                                                                                                                                                                                 countries during the last
thus expected to affect South American          can economies, declines in exports of
                                                                                                                                                                              quarter of 2008 as compared
countries less than Asia’s export-oriented                                                                                                                                       with the previous quarter
countries. China, Japan and the Republic
                                                                                          (Province of China)




of Korea reported reductions of around
                                                                      Republic of Korea




                                                                                                                                                                          Czech Republic




30 percent or more in their exports in
the first few months of 2009; declining
                                                                                                                         Indonesia




                                                                                                                                                                                                          Argentina
                                                                                                                                                                                           Australia
                                                           Thailand




                                                                                                                                              Belgium




                                                                                                                                                                 Canada




exports are expected to translate into a
                                                                                                                                     Mexico
                                                                                          Taiwan




                                                                                                                                                        France




                                                                                                                                                                                                                      Austria
                                                                                                                Brazil




drop in economic growth of 2 to 7 per-
                                                      0
cent in some Asian economies.
                                                                                                                                                                                                          -0.3        -0.2
  Most South American countries’                     -1                                                                                                                    -0.6            -0.5
                                                                                                                                                                 -0.8
exports, on the other hand, are based                                                                                                         -1.3      -1.2
                                                     -2
on commodities. The increase in inter-
                                                     -3                                                                              -2.7
national commodity prices over the past
few years was largely associated with                -4                                                         -3.6     -3.6
the growing demand for raw materials                 -5
in Asian countries, where demand is                                                         -5.4
                                                     -6               -5.6
now declining.                                             -6.1
  The decline in commodity demand and                -7

prices is affecting South American econ-             Source: Patu and Fagundes, 2009.




                                                                                                                                                                                                       Unasylva 233, Vol. 60, 2009
                                                                               31




                                     Forestry is Chile’s
                                second most important
                                     economic activity,
                                 contributing more than
                              3 percent to national GDP




  declining. Transnational companies have
  increased the repatriation of capital and
  remittances of dividends to solve liquid-
  ity problems faced by operations in other
  parts of the world. One example is the




                                                                                                                                                   FAO/FO-5094/E. BEUKER
  car industry in Brazil, a highly profitable
  operation that sent several billion dollars
  to company headquarters in the first few
  months of 2009.
    The International Labour Organiza-
  tion (ILO) (cited by Schwartz, 2009)                     South American countries depreciated          down of economic activity in the United
  estimates that another 50 million people                 over the last months of 2008. Deprecia-       States, Europe and Asia. With the decline
  around the world will be unemployed                      tion has partly helped to compensate          in demand and prices of pulp, paper
  in 2009. Growing unemployment in                         for the lower international prices and to     and wood products, many companies
  developed economies will have an                         maintain export volumes, especially in        in Brazil and Chile have reduced their
  impact in those developing countries                     countries where commodity exports are         production, while some have phased out
  that had had high rates of emigration.                   important. On the other hand, the devalu-     their activities and most have postponed
  Remittances by migrant workers to their                  ation of the local currency has contrib-      or cancelled new investments.
  countries will be reduced, and unem-                     uted to further decline in international        The devaluation of the Brazilian cur-
  ployed migrant workers will return to                    prices of some goods, and has created         rency against the United States dollar at
  their home countries; thus unemploy-                     a burden for companies that financed          the end of 2008 had a strong impact on
  ment will basically be transferred to the                investments and have payments due in          the forest industry. Temporary benefits
  developing world. Some countries in                      foreign currency.                             that might have resulted from the devalu-
  South America and Central America will                                                                 ation, such as a gain in competitiveness
  be particularly affected. Mexicans work-                 SOUTH AMERICAN FOREST                         in international markets, were lost as
  ing overseas sent home around US$24                      SECTOR AND THE CRISIS                         prices declined at basically the same rate.
  billion in 2008 (Gazeta Mercantil, 2009),                Forestry is an important economic sec-        The quick change of the markets and the
  which represents a significant share of                  tor for many South American coun-             devaluation of the local currency under-
  the country’s GDP. Ecuador and many                      tries, especially Chile, Brazil and more      mined the financial strategy of leading
  Central American countries also have a                   recently Uruguay. The Chilean forest          companies, causing Aracruz Celulose,
  significant percentage of their citizens                 industry contributes more than 3 per-         for example, to postpone its investment
  working abroad, mainly in the United                     cent to national GDP and approximately        plans and restructure its debts.
  States and Europe. These countries can                   7 percent of total exports (INFOR, 2009);       The strong decline in the housing sector
  expect a reduction in capital inflow and                 it is the country’s second most important     in the United States, an important market
  an increase in unemployment.                             economic activity. In Brazil, the forest      for South American producers, caused
    Because of several factors (includ-                    sector accounts for more than 3 percent       the region’s softwood timber exports to
  ing reduction of foreign investments,                    of GDP and around 5 percent of total          the United States to collapse. In volume
  uncertainties, dividend remittances and                  exports (ABRAF, 2009).                        terms, 2008 global imports of softwood
  capital repatriation by transnational                      The region’s forest sector has been         timber declined by 31 percent compared
  companies), national currencies of some                  directly and indirectly affected by a slow-   with 2007 (Random Lengths, 2009a). In




Unasylva 233, Vol. 60, 2009
                                                                                             32




                                                                                               2                       Brazil and Chile, prices dropped around
                                                                                               Change in United
                                                                                                                       30 percent in the second half of 2008

                                           Honduras
              Argentina




                                                                                               States softwood




                                                               Uruguay
                                                                                                                       (Figure 3) and are now down to the levels


                                                      Mexico
                                                                                               timber imports from
                          Brazil


                                   Chile


                                                                                               the main South and      of 2005–2006. Most of the price reduc-
         0                                                                                     Central American
                                                                                               exporting countries,
                                                                                                                       tion reported for 2008 is related to the
       -10                                                                                     2007 to 2008 (%)        devaluation of the local currencies, as
       -20                                                                                                             prices in local currency have changed
                                                                                                                       little. The exchange rate in the first
       -30
                                                                                 World
                                                                                                                       quarter of 2009 was stable, and prices
       -40                                                                       average                               in United States dollars continued to
       -50                                                                                                             decline. In the second semester of 2009,
                                                                                                                       local currencies of most South American
       -60
                                                                                                                       countries started to appreciate and prices
       -70                                                                                                             tended to be stable.

   Source: Random Lengths, 2009a.                                                                                      FOREST SECTOR INVESTMENTS
                                                                                                                       IN SOUTH AMERICA AND THE
Central America, exports from Honduras                                   try, mainly in Brazil and Bolivia; it has     GLOBAL CRISIS
dropped more than 60 percent – a strong                                  also affected South American timber           Recent and future investments
impact for a relatively small economy                                    exporters, as China’s imports of tropical     Most of the ongoing and announced
(Figure 2). Several sawmills in South                                    hardwoods for use in flooring declined        investments in the region’s forest sec-
American producing countries have                                        in terms of volume and price.                 tor are linked to forest plantations in
had to shut down. This situation is not                                    The social and economic implications        Brazil, Chile and Uruguay. In Brazil,
expected to change much in 2009.                                         of the global crisis for the forest sec-      direct domestic investments are the most
  The structural wood panels sector has                                  tor, at the national and regional levels,     important, while in Chile and Uruguay
undergone a similar decline. United                                      have not yet been thoroughly assessed.        the main investors are foreign compa-
States imports of softwood plywood in                                    There are indications that the impact will    nies. The pulp and paper industry is the
2008 were 25 percent lower in volume                                     be significant in Bolivia, Brazil, Chile,     largest investor in all three countries, but
in 2008 than in 2007, the lowest since                                   Uruguay and parts of Argentina. Within        institutional and other private investors
2002. In 2008, South America supplied                                    each country, regions where the forest        are gaining importance.
94 percent of all United States softwood                                 sector makes an important contribution          The forest sector investments in
plywood imports, Chile currently being                                   to the local economy are expected to          Brazil over the past five years have been
the main exporter. Imports from Brazil,                                  be most affected by the reduction in          largely associated with the expansion of
the leader from 2003 to 2007, dropped 44                                 demand for and prices of forest pro-          the pulp and paper, reconstituted pan-
percent, while those from Uruguay were                                   ducts. For example, in Paraná State,          els (medium-density fibreboard and
reduced by almost 50 percent. Prices of                                  Brazil, where the forest sector contri-       particleboard) and charcoal-based pig
structural wood panels dropped by 20                                     butes around 5 percent to GDP, employ-        iron industries. As shown in Figure 4,
percent from 2007 to 2008. Thus exports                                  ment in the timber industry was reduced       forest sector investments in the country
of structural wood panels to the United                                  by 21 percent in 2008. In Brazil as a         dropped 26 percent from 2007 to 2008,
States lost around 45 percent in value                                   whole, however, the reduction in employ-      and companies’ projected investments
(Random Lengths, 2009b).                                                 ment was less – 6 percent – with pulp         for the subsequent five-year period
  Other important markets for South                                      and paper, reconstituted panels and the       dropped 36 percent.
American forest industries have also                                     charcoal-based pig iron industry taken          Uruguay has received immense invest-
collapsed. Imports of mouldings by the                                   into account (ABRAF, 2009). Most of the       ments in the forest sector over the past
United States were significantly reduced                                 reduction was associated with reductions      few years, but investments in the country
in 2008, and Brazil and Chile (the main                                  in forest plantation activities by the pig    have slowed down as a result of the global
moulding exporters in the region) have                                   iron industry.                                financial crisis (Wood Resources Inter-
shut down mills. Decline in the demand                                     As in other parts of the world, prices of   national, 2009). The Finnish company
for and prices of flooring material in                                   forest products have diminished in most       Botnia, which had recently invested in a
the United States and other importing                                    South American countries in line with the     pulp mill with a capacity of around 1 mil-
markets has affected the flooring indus-                                 reductions in international demand. In        lion tonnes per year, has reduced produc-




                                                                                                                                                 Unasylva 233, Vol. 60, 2009
                                                                              33




                                                                                3                        Peru and Colombia are considering
                                                                                Recent wood fibre
                                                                                prices in Brazil
                                                                                                       the implementation of forest plantation
    US$/oven-dry tonne
    (delivered)                              Brazil                             and Chile              programmes, but have not yet developed
         120
                                                                                                       structured plans.
         100
                                                                                                       Forest plantations and employment
           80
                                                                                                       Forest plantations are long-term invest-
           60                                                                                          ments. In a short time, a well-struc-
           40                              Coniferous pulp logs                                        tured plantation programme can create
           20                              Non-coniferous pulp logs                                    (directly and indirectly) permanent jobs
            0
                                                                                                       in rural areas, helping to mitigate the
                 2007/1 2007/2 2007/3 2007/4 2008/1 2008/2 2008/3 2008/4                               effects of financial crisis. But it will also
                                        Quarter                                                        foster socio-economic development in
                                                                                                       the long term, attracting investment in
                                            Chile                                                      wood processing activities that facili-
         120                                                                                           tates the creation of a cluster, gener-
         100
                                                                                                       ating employment in the industry and
                                                                                                       services.
           80
                                                                                                         The investment required to establish
           60
                                                                                                       and manage a forest plantation and gen-
           40                                                                                          erate employment varies largely in the
           20                                                                                          region, depending on the local soil and
            0                                                                                          climate conditions, tree species, techno-
                 2007/1 2007/2 2007/3 2007/4 2008/1 2008/2 2008/3 2008/4                               logy, forest management requirements
                                        Quarter                                                        and work productivity, among other fac-
                                                                                                       tors. For example, the establishment of
       Source: Wood Resources International, 2009.
                                                                                                       large-scale, fast-growing plantations by
                                                                                                       the pulp industry tends to generate less
  4                                                        tion because of the weak markets. ENCE,     employment than smaller-scale long-
  Impacts of the crisis                                    a Spanish paper company, has encoun-        rotation plantations established to pro-
  on forest sector
  investments in Brazil
                                                           tered a slowdown in investment for a        duce high-quality timber for the solid
                                                           planned pulp mill. Portucel Soporcel,       wood industry. The balance between
                          Investments                      a Portuguese paper company, faces the       capital and labour requirements may
        Billion US$                                        same problem in establishing a planned      vary. For example, mechanization can
            4
                       3.4
                                                           pulp and paper mill in Uruguay.             be used for planting in flat terrain, while
            3                 -26% 2.5                       In 2007, Ecuador adopted a National       on slopes most operations are manual.
            2
                                                           Plan for Forestation and Reforestation      Soil variations from site to site have
                                                           which includes a target of establishing     implications for soil preparation, ferti-
            1
                                                           1 million hectares of new plantations       lization, weed control and other costs.
            0
                      2007          2008
                                                           over the next 20 years (Tomaselli, 2008).   Some species require more fertilizers
                                                           The forest sector was made one of the       and chemicals than others.
                  Projected investments                    ten priority development sectors, and         Table 2 presents a cost range for
                  for the next five years                  US$75 million from the national budget      establishing and managing plantations
          15                                               was made available for direct investment    in Brazil, which could also be applied
                      11.5
          10                                               in plantations. However, because of the     to other countries of the region. The
                              -36% 7.4
                                                           need to revise the government budget        information is derived from actual
           5                                               in view of the financial crisis, only a     operations based on manual and
           0                                               small amount was invested in forest         mechanized planting of pine and
                      2007          2008                   plantations in 2008; most of the allo-      eucalyptus in different locations,
                                                           cation was transferred to other priority    managed for the solid wood industry
       Source: ABRAF, 2009; STCP, 2009.                    programmes.                                 (larger-diameter logs). Investments are




Unasylva 233, Vol. 60, 2009
                                                                   34




TABLE 2. Forest plantation costs in          70 000 people would be employed in                    benefits that the plantations would gen-
Brazil (pine and eucalyptus)                 the fifth year. The total accumulated                 erate in the future. The Corporation for
 Investment phase                Range       investment required to implement                      Export and Investment Promotion of
                                (US$/ha)     such a programme over a five-year                     Ecuador (CORPEI) estimates that the
 Planting                     1 100–1 600    period would reach around US$480                      plantation programme has the poten-
 First year (maintenance)       210–550      million (Figure 6). The annual invest-                tial to generate over US$2.5 billion
 Second year (maintenance)      130–340      ment would tend to stabilize at about                 annually based on trade of products
 Following years                 90–130      US$120 million after year five.                       in international markets (Tomaselli,
 Total (full rotation)        2 500–3 700      Based on this simulation, for each job              2007). The expansion of forest plan-
Source: STCP, 2009.                          created, Ecuador would have invested                  tations is the only option for sustain-
                                             less than US$5 000 per year, a relatively             ing the development of the country’s
TABLE 3. Labour demand in forest             small amount considering the immedi-                  forest industry and making its export
plantation, Brazil                           ate social benefits and especially the                programme feasible.
 Investment phase            Labour demand
                               (person/ha)                        5
 Planting                     0.025–0.132      Simulation of direct     Direct employment
 First year (maintenance)     0.010–0.047    employment potential       (1 000)
                                              based on Ecuador’s
 Second year (maintenance)    0.005–0.040                                25
                                                  forest plantation                                                                            23
 Following years              0.010–0.015              programme
Source: STCP, 2009.                                                      20

heavily concentrated in the first two to                                                                                                17.5
                                                                         15
three years. The total investment for
one full rotation varies from US$2 500                                                                                   13
                                                                         10
to US$3 700 per hectare. In Brazil,                                                                         9
rotations for solid wood are relatively                                                      6.6
                                                                          5
short – 12 to 14 years for eucalyptus
and 18 to 20 years for pine.
                                                                          0
  Table 3 shows the direct labour                                                        1             2                3           4                5
                                                                                                                Year
demand created in establishing and
managing forest plantations in Brazil,                                  Note: Simulation based on manual planting of 50 000 ha per year to
                                                                        be managed for solid wood products.
excluding jobs created indirectly at
the nursery, in the supply chain and in
harvesting operations. The demand for                              6
workers is mostly concentrated in the                     Estimated     Million US$
                                              investments required
plantation establishment phase. It can            for implementing
                                                                        600
be estimated that for each direct job in                  Ecuador’s
                                                   forest plantation    500                                                                    479
planting and management operations,
                                                        programme
two indirect jobs are created.                                          400                                                       369
  Figure 5 presents a simulation of
                                                                        300                                            262
direct job creation if Ecuador (as an
example) were to plant 50 000 ha of                                     200                            160
forest plantations per year as part of its
strategy to reduce the socio-economic                                   100               70
                                                                                                            90              102         107 110
impact of the financial crisis. It pre-
                                                                          0
dicts that employment in the forest                                                      1              2               3           4                5
sector would gradually increase so that
                                                                                                                Year
at the fifth year around 23 000 new
                                                                                                           Annual investment
direct jobs (in forest plantation estab-
                                                                                                           Cumulative investment
lishment and management operations)
would have been created. If indirect                                    Note: Estimates based on 50 000 ha per year planted and managed
                                                                        for solid wood products.
jobs are considered as well, around




                                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                      35




  CONCLUSIONS AND
  RECOMMENDATIONS
  The global financial crisis is affecting
  economies around the world; unem-                          Bibliography
  ployment is growing and developing
  countries will need to find strategies for    ABRAF. 2009. Anuário Estatístico da ABRAF
  mitigating the social impacts. For some          2009 [ABRAF Statistical Yearbook 2009].
  South American countries, part of the            Brasilia, Brazil, Associação Brasileira de
  solution can be found in the forest sector.      Produtores de Florestas Plantadas.
  Forest plantations are a competitive busi-    CIA. 2009. The World Factbook. Washington,
  ness in the region, and their expansion          DC, USA, Central Intelligence Agency.
  can immediately increase employment.             Available at: www.cia.gov/library/
  The investment capital can come from             publications/the-world-factbook/index.
  government incentives, local or interna-         html
  tional financing programmes or direct         Gazeta	Mercantil. 2009. Queda nas remessas do
  investments from private investors.              emigrante é mau sinal [Drop in remittances
    The cost involved in a plantation              by immigrants bodes badly]. 17 February,
  establishment programme will most                p. A2.
  probably be equivalent to that of any         INFOR. 2009. Anuario Forestal 2008. Boletin
  social programme that would be put in            Estatístico 121. Santiago, Chile, Instituto
  place to support unemployed workers.             Forestal (INFOR).
  The difference is that while mitigating       Patu, G. & Fagundes, A. 2009. Crise bate
  the social effects of the crisis, the pro-       mais forte no país e PIB cai 3.6% [Crisis hits
  gramme would also be creating value.             stronger in the country and GDP drops 3.6%].
    In order to ensure that future benefits        Folha de São Paulo, 11 March, p. B1.
  are maximized and sustainable, planta-        Pilling, D. 2009. Asia and the crisis: unlucky
  tion establishment needs to be part of a         numbers. Financial Times, 9 February.
  long-term development strategy; this is       Random	 Lengths. 2009a. US imports of
  more important than job generation in the        softwood lumber. 42(3): 8.
  short term. In this case relatively short     Random	 Lengths.	 2009b. US plywood
  economic cycles cannot be considered,            imports fall 25%, Chile now largest
  although adjustments can be made over            supplier. 42(5): 2.
  the long term to accommodate eventual         Schwartz, N.D. 2009. Perda de empregos
  market changes.                                  ameaça a estabilidade [Job losses threaten
    Several countries in South America,            stability]. Gazeta Mercantil, 27 February,
  including Brazil, Chile and Uruguay,             p. D7.
  have already demonstrated the effec-          STCP. 2009. Internal database. Curitiba,
  tiveness of including support for the            Brazil, STCP Engenharia de Projetos Ltda.
  establishment of large plantations in the     Tomaselli, I. 2007. Potencial forestal del
  national development strategy. These             Ecuador. Presentation to a seminar, Quito,
  countries are currently the main re-             Ecuador, April.
  ceivers of direct investments in the forest   Tomaselli, I. 2008. Análisis de los desarrollos
  sector in the region. As a result, in these      recientes relacionados al sector forestal.
  countries the forest sector is an important      Proyecto Proforestal, Producto 1. Quito,
  contributor to national socio-economic           Ecuador, Corporation for Export and
  development. u                                   Investment Promotion of Ecuador
                                                   (CORPEI).
                                                Wood Resources International. 2009.
                                                   Sawlog and pulpwood markets 4Q/08 –
                                                   Latin America. Wood Resource Quarterly,
                                                   21(4): 33. u




Unasylva 233, Vol. 60, 2009
                                                             36




               Rebuilding rural India: potential for further
                 investments in forestry and green jobs
                                                       J.R. Matta




A moderate increase in funds

                                         G
                                                   reen jobs are receiving unprec-        Most of the growth in non-agricultural
allocated to forestry under India’s                edented attention as signs of a      employment has been in the informal
National Rural Employment                          more sustainable economy and         sector and in low-productivity self-
Guarantee Act could revitalize           a society that conserves the environ-          employment activities such as petty
the rural economy and the                ment for present and future generations        trade, hotel management and construc-
environment.                             (ILO, 2008). The current economic crisis       tion. The share of the manufacturing
                                         presents unique opportunities for moving       sector has increased only marginally
                                         towards a greener future by giving a major     (NSSO, 2008). Many people are unable
                                         thrust to the forest sector that will gener-   to find regular employment and must
                                         ate employment, create real and durable        resort to self-employment, which is often
                                         assets and help rebuild rural India. Unem-     precarious and therefore likely to be
                                         ployment has been a serious problem in         distress driven (Centre for Science and
                                         India since well before the current crisis,    Environment, 2008). As the current trend
                                         and it is a major cause of political and       of more women seeking jobs continues,
                                         social unrest. Creating employment could       the number of unemployed will increase
                                         also help resolve societal conflicts.          further. To meet the growing demand
                                           India is the fourth largest economy          for additional jobs, the growth in non-
                                         in the world by gross domestic product         agricultural employment would need to
                                         (GDP, measured on a purchasing power           accelerate to around 6 percent.
                                         parity basis) and has achieved an aver-          This article analyses the benefits that
                                         age annual growth rate of 7.5 percent          India could obtain by investing about
                                         in GDP in the current decade. However,         US$4 billion in forestry, in terms of
                                         despite this extraordinary growth, the         employment as well as other social, eco-
                                         overall unemployment rate in the for-          nomic and environmental benefits.
                                         mal sector increased from 6.1 percent
                                         in 1994 to 8.3 percent in 2005 (Ministry       IMPACTS OF THE CURRENT
                                         of Finance, 2009). Although job oppor-         ECONOMIC CRISIS
                                         tunities increased, the labour force grew      The economic downturn that began to
                                         faster, at a rate of 2.8 percent between       affect advanced economies in mid-2007
                                         2000 and 2005, leaving about 35 million        has exacerbated the unemployment situ-
                                         unemployed as of 2005. The informal            ation in India through pernicious feed-
                                         sector, lacking social security coverage,      back loops (Mohan, 2008). The total net
                                         constitutes 93 percent of the country’s        capital inflows to India, for example, fell
                                         workforce (EPWRF, 2009). The situa-            from US$17.3 billion in the period April
                                         tion is particularly grim in rural areas       to June 2007 to US$13.2 billion in the
                                         where 74 percent of India’s unemployed         same months of 2008. The investment
                                         population is located. With traditional        demand has decelerated and the index of
                                         farming becoming economically less             industrial production has shown nega-
                                         viable, and the recent economic down-          tive growth. The software industry was
                                         turn rendering several thousand workers        severely affected, and exports declined
Jagannadha Rao Matta is Conservator of   jobless, the condition of rural people has     as a result. The crisis has particularly
Forests, Tamil Nadu Forest Department,   become even worse.                             slowed down the services sector, India’s
Chennai, India.




                                                                                                                 Unasylva 233, Vol. 60, 2009
                                                                     37




  prime growth engine in recent years            CURRENT FORESTRY SITUATION
  (Subbarao, 2009). It has also had nega-        IN INDIA                                                 Forestry imports
  tive consequences for construction,            Resource challenges
                                                 India has a forest area of 67.7 million        India’s forest product imports accounted
  transport and communication, trade and
                                                 hectares, or 22.8 percent of the country’s     for US$1.6 billion in 2001, as compared
  the hotel and restaurant sector, signifi-
                                                 land area (FAO, 2006). Forestry is the         with exports of US$94 million. India is
  cantly moderating GDP growth (Mohan,
                                                 second largest land use after agriculture      the third largest importer of tropical logs,
  2008). According to the Indian Labour
                                                 and accounts for about 1.5 percent of          mostly from Malaysia and Indonesia but
  Ministry, the total employment in eight
                                                 the nation’s GDP (World Bank, 2006). A         with increasing supplies from Africa. In
  key sectors of the economy fell from
                                                 fourth of India’s population, or roughly       2000–2001, the import value of pulp and
  16.2 million to 15.7 million between
                                                 250 million people, depend on forests          paper alone was US$800 million, and it is
  September and December 2008. Some
                                                 either wholly or partially for their liveli-   projected to reach US$3.2 billion by 2011
  trade unions put the number of jobs lost
                                                 hoods; of these, residents of the forest       (National Forest Commission, 2006).
  at 2 million. The average earnings of
  Indians also declined by 3.5 percent           fringes, which make up the majority, are
  during the last quarter of 2008 (Indian        among the poorest and most vulnerable          lion people engaged in fuelwood trade
  Express, 2009).                                groups.                                        (both formally and informally) worth
    The economic crisis has also led to            Thanks to afforestation and reforesta-       over US$17 billion. But in 2006, har-
  substantial reverse migration. From the        tion efforts, India is one of the only coun-   vested fuelwood exceeded the amount
  city of Surat alone, for example, it is        tries in South Asia to have maintained         that could sustainably be removed from
  said that 200 000 to 400 000 workers in        its forest cover in recent years. Yet the      forests by 139 million metric tonnes
  the diamond industry have returned to          country’s forests are under tremendous         (National Forest Commission, 2006).
  their villages (EPWRF, 2009). Similarly,       pressure. About 41 percent of the forest         Almost 33 million hectares of forest
  half of Bangalore’s migrant construction       is degraded to some extent. About 78           plantations were established from 1951
  workers (about 500 000) left the city in       percent of the forest area is subject to       to 1999 (see Box left). Yet wood-based
  search of employment elsewhere. The            heavy grazing, and 50 percent is exposed       industries are plagued by severe short-
  job losses were primarily among con-           to wildfires. Shifting cultivation threat-     age of raw material to meet steeply
  tractors and low-paid workers in the           ens another 10 million hectares (National      rising demand. India is a net importer
  informal sector. The return of thousands       Forest Commission, 2006). The loss of          of forest products (see Box above). The
  of unemployed workers has had a nega-          forests leads to irreversible erosion,         deficit in timber supply, which was
  tive impact on the quality of life in rural    reduced soil fertility, diminished water       estimated to be about 39 million cubic
  areas that were already under severe           catchment function, downstream flood-          metres in 2006, is also partially met from
  economic stress. This situation calls for      ing, diminished biodiversity and addi-         unrecorded removals from natural and
  a serious rethinking of rural develop-         tional rural poverty.                          planted forests.
  ment priorities and an immediate effort          Non-wood forest products (NWFPs)
  to promote employment opportunities            are an important source of livelihoods         Forest policy initiatives
  across the country.                            for millions of forest-dependent peo-          The Ministry of Environment and
                                                 ple and account for 75 percent of total        Forests has set a goal of enhancing
                                                 forest export revenue. Yet as their eco-       forest and tree cover to 33 percent of
        Forest plantations in India              nomic potential has improved, they have        the nation’s geographical area. The
                                                 become overexploited.                          government spends roughly 4 percent
  The area under forest plantations in India       The nation also faces significant def-       of the national GDP (in nominal terms)
  is about 32.57 million hectares, which         icits in terms of meeting its growing          towards this end, through the flagship
  accounts for 17 percent of the global forest   fodder, fuel and timber needs. Forests         National Afforestation Programme
  plantation area and is the second largest in   provide grazing for over 50 percent of         (US$250 million invested during the
  the world after China. India has the largest   India’s 500 million livestock, and 175 to      tenth Five Year Plan, 2002–2007)
  share of teak and rosewood plantations in      200 million tonnes of green fodder are         and other national initiatives such as
  the world. Industrial plantations account      collected annually. About 75 percent of        the Grants-in-Aid for Greening India
  for 37 percent of total plantations and play   all forest production in India is fuelwood,    scheme and the recently launched Gram
  a major part in supplying raw material to      mostly collected from natural forests.         Van Yojana to support tree planting
  wood-based industries (National Forest         Forestry is the largest employer in the        on community and non-forest public
  Commission, 2006).                             Indian energy sector, with about 11 mil-       lands. State governments have also




Unasylva 233, Vol. 60, 2009
                                                                   38




                                                                                                                                             TAMIL NADU FOREST DEPARTMENT
The National Rural
Employment Guarantee Act                       ing on average US$20 000. Since April         forestry could be included more fully
promotes water conservation
                                               2008, NREGA has been extended to all          to help trigger real economic growth.
activities such as the
construction of percolation                    596 districts in the country (Ministry of     Indeed, the National Forest Commission
ponds and water harvest                        Finance, 2009) and around US$6 billion        has recommended a substantial increase
channels in forest fringes to
                                               is expected to be spent on it annually. As    in the allocation of funds to forestry and
recharge groundwater and
help local agriculture                         of April 2009, about 45 million work-         watershed operations, to reach 20 per-
                                               ers, half of them women, were provided        cent of Rural Development Programme
taken up afforestation, reforestation and      employment under the act (Ministry of         funding.
biodiversity conservation projects.            Rural Development, 2009).                       Even a moderate increase in NREGA
  Participatory forest management is             Since the main thrust of NREGA is           funds allocated to forestry could easily
implemented on a large scale through           enhancing the natural resource base in        generate about US$4 billion in five years.
Joint Forest Management, which involves        rural areas, it is regarded as the world’s    Based on the employment already gen-
villagers collaborating with government        largest ecological restoration programme      erated by NREGA, it can be estimated
forest departments in forest protection        (Centre for Science and Environment,          that an investment of this size could cre-
and restoration, in exchange for a share       2008). Many villages have already ben-        ate about 1 533 million person-days of
of the products such as NWFPs and small        efited from its support to water conser-      employment. If a job is expected to pro-
timber. By February 2007, 100 000 local        vation programmes – critical in rainfed       vide 150 to 200 days of employment in
village institutions were managing 22          areas of India, which sustain 40 percent      a year (since year-round employment is
million hectares of forests.                   of the nation’s population. A good water      not anticipated in forestry and other rural
                                               harvesting structure can aid in growing       sectors), this investment could create
A KEY RURAL EMPLOYMENT                         a supplementary crop, and 1 hectare of        8 million to 10 million jobs. And besides
INITIATIVE                                     irrigation can create additional employ-      NREGA, there are also other regular
The National Rural Employment Guar-            ment for 2.5 persons.                         forestry programmes with a strong focus
antee Act (NREGA) of 2005 legally                However, a major challenge currently        on employment generation.
guarantees 100 days of employment to           facing NREGA is the insufficient atten-         Forest activities can be taken up on
India’s rural population – the first nation-   tion given to the sustainability of the       three types of land as follows.
wide employment scheme of this kind.           employment opportunities generated.
The act is significant in three ways: it       In view of the target-based approach,         On areas currently classified as forests
aims at eradicating acute poverty in vil-      implementation of the act emphasizes          These forests are typically meant to meet
lages by ensuring that the poorest of the      easily executable works such as road          the national conservation objectives and
poor are given sufficient employment; it       building (Centre for Science and Envi-        livelihood needs of forest-fringe com-
aids in empowering local governments,          ronment, 2008).                               munities through Joint Forest Manage-
as the act’s implementation is vested with                                                   ment. Natural forests are also important
them; and it supports activities that create   POTENTIAL FOR CREATING JOBS                   for the continued provision of environ-
productive assets that could potentially       IN FORESTRY                                   mental goods and services.
make villages self-sustaining. During          Currently, activities related to tree plan-      •	Forest	restoration. Degraded forests
2006–2007, more than 100 000 villages          tation and drought proofing account for            need to be substantially restored to
implemented the scheme, each spend-            around 8 percent of NREGA funding, but             improve their productivity. Mainte-




                                                                                                                      Unasylva 233, Vol. 60, 2009
                                                                   39




                                                   cover – e.g. fire protection, forest      this category can be made available for
         Forestry as a community                   boundary consolidation and creation       tree planting.
                enterprise                         of infrastructure such as watchtow-          •	Biological	 barriers	 against	 natu-
                                                   ers – are essential. Systematic forest         ral	calamities.	Coastal shelterbelts
  With just 20 hectares under production,          monitoring and database manage-                can mitigate against natural disas-
  a community could remove up to 5 m3 per          ment are also needed to improve                ters such as tsunamis, which have
  year of sawlogs from a high-quality Sal          forest planning and management.                devastated several areas in India.
  (Shorea	 robusta) forest and earn annual       •	Biodiversity	conservation.	Protected           Biological barriers are also a means
  gross revenues of US$15 000 (based on an         areas and other ecologically sensi-            of adapting to the adverse effects
  average market price of US$150 per cubic         tive locations need to be system-              of global warming. Mangroves and
  metre). This would represent an additional       atically managed with additional               coastal wetlands need enrichment.
  income of US$150 a year if shared among          investments to improve habitat for           •	Urban	forestry. India is urbanizing
  100 households (World Bank, 2006).               wildlife, to establish wildlife corri-         fast, and urban forests could offer a
                                                   dors where necessary and to provide            host of environmental services to city
       nance operations such as weeding,           appropriate compensation for dam-              dwellers such as social, aesthetic and
       thinning and tending and regenera-          age caused by wildlife to humans               microclimate benefits, in addition to
       tion activities such as land prepara-       and agricultural crops.                        mitigating urban pollution.
       tion, nursery production and plant-       •	Watershed	 rehabilitation.	 Forests          •	Tree	planting	on	roadsides	and	other	
       ing also employ a large number of           form critical catchments to many               vacant	areas. Increased tree cover
       people. The areas under Joint Forest        important water systems and as such            on common areas could enhance tree
       Management could particularly ben-          are of immense value to drought-               cover for carbon sequestration, pro-
       efit from enhanced investments to           prone India. In addition, the runoff           mote a conservation ethic among the
       improve productivity and manage-            from forested highlands generates              public and augment local wood, fuel
       ment. The income from community-            hydropower. Watershed rehabilita-              and fodder supplies.
       managed forests could rise from an          tion activities such as contour trench-
       estimated US$222 million in 2004            ing, gully plugging, check dam con-       On private lands
       to approximately US$2 billion per           struction and planting with suitable      As economic efficiency and competi-
       annum in 2020 (see Box above).              species are labour intensive.             tiveness become increasingly important,
     •	Enhanced	 forest	 protection	 and	                                                    private-sector involvement in wood pro-
       management.	 Measures to protect        On other public and community lands           duction is gaining prominence (Nair,
       and maintain the existing forest        Areas in this category include public         2008). Currently the private forest plan-
                                               lands, mangroves and wetlands along           tation area in India is just 6 million
  Restoration activities such                  the coast, barren areas often classified as   hectares. To meet the increasing demand
  as land preparation, nursery
  production and planting employ
                                               wastelands, areas along roads, highways       for wood and wood products, farmers
  a large number of people –                   and canal banks, and other institutional      and private industries need to be engaged
  degraded forest in Tamil Nadu in             areas such as school and office campuses.     in tree growing through farm forestry,
  1997 (left, background) and view
  of the same forest in 2004 after
                                               About 12 million hectares of land in          agroforestry and large-scale plantation
  restoration
                                                                                                                                       TAMIL NADU FOREST DEPARTMENT




Unasylva 233, Vol. 60, 2009
                                                                 40




                                                                                                                                            TAMIL NADU FOREST DEPARTMENT
Check dams and other water
harvest structures to control                     ronmental hazards associated with        vention of deforestation and degradation
erosion are labour intensive
to construct
                                                  their consumption. It is necessary       and augmenting carbon sequestration
                                                  to explore suitable species, areas       will contribute to climate change miti-
forestry. Appropriate agroforestry mod-           and strategies for raising large-scale   gation efforts. Agroforestry, for exam-
els can enhance the nation’s forest and           energy plantations.                      ple, has the potential to sequester up
tree cover by 5 percent (National Forest                                                   to 25 tonnes of carbon per hectare per
Commission, 2006). In southern China,         IMPLICATIONS OF THE                          year. Use of bioenergy will contribute
farm forestry contributes as much as 40       INVESTMENTS                                  to reduced greenhouse gas emissions
percent of farm income (World Bank,           The potential benefits of investing in       while reducing India’s dependence on
2006). The following areas require par-       forestry and progressing towards a           imported oil. (Of India’s total imports
ticular attention.                            green economy are manifold. Jobs can         of US$24.38 billion during September
   •	Wood-based	 industry. Additional         be provided for millions of unemployed       2008, US$9 billion were spent on crude
     raw material needs of the pulp           rural people right at their doorstep. The    oil.) Controlling wildfires would also
     and paper sector alone, for exam-        enhanced resource base could also lead       help to reduce carbon emissions while
     ple, require tree crops on 1.1 mil-      to new enterprises and infrastructure        conserving critical biodiversity.
     lion hectares, which could provide       in wood product industries, biore-             More importantly, additional liveli-
     employment to over 0.55 million          fineries, aromatic oil extraction, etc.      hood opportunities in forest-fringe
     families (Centre for Science and         Income earned through more jobs could        villages will mitigate social unrest and
     Environment, 2008).                      be expected to enhance consumption,          civil agitation.
   •	NWFPs. The domestic market value         which would stimulate production and
     for forest products of medicinal         further employment. The revitalization       CONCLUSIONS
     value is about US$1 billion, while       of villages would also alleviate pressures   Despite the phenomenal economic growth
     the global export market value for       on cities for employment. Forestry jobs      the country has witnessed in recent years,
     the same is US$62 billion. India’s       require less capital and other inputs than   chronic unemployment has become a per-
     current share of the global market,      jobs in other sectors such as information    vasive feature of rural India. The current
     however, is a meagre 0.5 percent,        technology. They vary widely in terms        economic downturn has worsened the
     which indicates tremendous poten-        of the nature of operations and level of     plight of rural people, aggravating loss
     tial for the increased cultivation and   technology, and they are adaptable to        of livelihoods, poverty and social dis-
     sustainable production of NWFP           local conditions and capacities.             turbances. A movement towards a green
     resources.                                 Investing in green jobs would also help    future, predicated on enhancing the use
   •	Bioenergy. Commercial biomass-           achieve the goal of bringing 33 percent      of renewable resources and mitigating the
     based energy is expected to have a       of the country’s area under green cover,     adverse affects of climate change, could
     significant role in meeting India’s      while rendering environmental benefits.      provide impetus to the forest sector, create
     growing energy needs. The country        A “Green India” was one of the eight pri-    real and durable assets and help rescue
     has been hard hit in recent years by     orities identified by the National Action    rural India from this crisis.
     the increasing prices of fossil fuels,   Plan on Climate Change announced by            Complementarity between poverty
     uncertainty in supplies and the envi-    the Prime Minister in June 2008. Pre-        reduction and meeting critical national




                                                                                                                     Unasylva 233, Vol. 60, 2009
                                                                     41




  conservation goals makes forestry an            com/news/earnings-of-workers-fall-by-
  excellent means for rural economic              3.45-in-q3-report/433693
  growth in India. Increased investment         Ministry of Finance, Government of
  in forestry and its integration in pro-         India. 2009. Economic survey 2007–2008.
  grammes such as NREGA and other                 New Delhi, India. Available at: www.
  economic recovery packages could help           indiabudget.nic.in/es2007-08/social.htm
  revitalize the rural economy.                 Ministry of Rural Development,
    A moderate increase in NREGA funds            Government of India. 2009. National
  allocated to forestry, as recommended           Rural Employment Guarantee Act. New
  by the National Forest Commission,              Delhi, India. Available at: www.nrega.
  could generate about US$4 billion in            nic.in
  five years. By investing this amount          Mohan, R. 2008. Global financial crisis
  to improve degraded forests, promote            and key risks: impact on India and Asia.
  agroforestry and enhance the green              Remarks prepared for the IMF–FSF
  cover of the country, India could create        [International Monetary Fund–Financial
  8 to 10 million jobs. Besides rendering         Stability Forum] High-Level Meeting on
  significant social, economic and envi-          the Recent Financial Turmoil and Policy
  ronmental benefits, this strategy could         Responses, Washington, DC, USA, 9
  also provide better focus and direction         October. Available at: rbidocs.rbi.org.in/
  to current employment programmes.               rdocs/Speeches/PDFs/87784.pdf
  The timing seems to be right to give          Nair, C.T.S. 2008. Public sector forestry
  forestry a prime place in India’s pursuit       agencies at the cross-roads: are they fading
  of more equitable, inclusive and sustain-       into irrelevance? In Re-inventing forestry
  able development.u                              agencies – experiences of institutional
                                                  restructuring in Asia and the Pacific, pp.
                                                  7–17. Bangkok, Thailand, FAO Regional
                                                  Office for Asia and the Pacific. Available
                                                  at: www.fao.org/docrep/010/ai412e/
                                                  ai412e00.htm
                                                National Forest Commission. 2006. Report
                   Bibliography                   of the National Forest Commission 2006.
                                                  New Delhi, India, Ministry of Environment
  Centre for Science and Environment.             and Forests, Government of India.
    2008. The National Rural Employment         NSSO. 2008. Employment and unemployment
    Guarantee Act (NREGA): opportunities          situation in India 2005–06. National
    and challenges. New Delhi, India.             Sample Survey 62nd Round. Kolkata and
  EPWRF. 2009. An overview [of the financial      New Delhi, India, National Sample Survey
    year 2008–2009]. Mumbai, India, Economic      Organisation, Government of India.
    and Political Weekly Research Foundation.   Subbarao, D. 2009. Impact of the global
    Available at: www.epwrf.res.in/upload/        financial crisis on India: collateral damage
    MER/mer10902000.pdf                           and response. Speech delivered at the
  FAO. 2006. Global Forest Resources              Institute for International Monetary Affairs,
    Assessment 2005 – Progress towards            Tokyo, Japan, 18 February 2009.
    sustainable forest management. FAO          World Bank. 2006. Unlocking opportunities
    Forestry Paper No. 147. Rome.                 for forest-dependent people in India. Report
  ILO. 2008. Green jobs: facts and figures.       No. 34481–IN. Washington, DC, USA. u
    Geneva, Switzerland, International Labour
    Organization.
  Indian	Express. 2009. Earnings of workers
    fall by 3.45 percent in Q3: Report. 12
    March. Available at: www.indianexpress.




Unasylva 233, Vol. 60, 2009
                                                                                                        42




                                         The Philippines’                         The Department of Environment and Natural
                                                                                  Resources in the Philippines has created the
                                                                                                                                      and is envisioned to expand existing initiatives
                                                                                                                                      consistent with the country’s Medium-Term

                                         Upland                                   Upland Development Program in support of
                                                                                  the government’s Economic Resiliency Plan,
                                                                                                                                      Development Plan (2004–2010).
                                                                                                                                        Funding will be used for specific activi-
                                         Development                              launched in February 2009 to cushion the            ties such as establishment and operation of
                                                                                  impact of the global financial crisis on the        nurseries, development of forest plantations
                                         Program:                                 Filipino people. The programme aims to              and agroforestry farms, rehabilitation of river
                                                                                  improve incomes in upland areas and mitigate        banks, enrichment planting of inadequately
                                         cushioning the                           hunger, while also enhancing the country’s          stocked areas and assisted natural regenera-

                                         impacts of global                        capacity to adapt to climate change. Forestry
                                                                                  has a major place in meeting both challenges,
                                                                                                                                      tion, as well as forest maintenance and protec-
                                                                                                                                      tion through patrol work. In these activities

                                         financial crisis and                     since upland populations are highly depen-
                                                                                  dent on forest resources for subsistence and
                                                                                                                                      the Department of Environment and Natural
                                                                                                                                      Resources will partner above all with peoples’
                                         climate change                           livelihood, and forests serve as a natural          organizations engaged with the department
                                                                                  carbon sink.                                        under community-based forest and resource
                                         through green jobs                          The target of the Upland Development             management agreements. Other partners will
                                                                                  Program is to create more than 52 000 jobs          include local government units, communities
                                                                                  for farmers in upland and coastal areas, in         and civil society organizations involved in
                                         J.L. Atienza, Jr                         conjunction with the government’s Compre-           rehabilitation activities, and smallholders who
                                                                                  hensive Livelihood and Emergency Employ-            can benefit from soil and water conservation
                                                                                  ment Programme. The government provides             activities in their landholdings.
                                         A new programme will create              farm inputs including tree seedlings, organic         An interesting feature of the programme is
                                         thousands of jobs in restoring           fertilizers and other implements. The farmers’      its strong support to the government’s hunger
                                         forests and watersheds, helping to       contribution is their labour, for which they will   mitigation and poverty alleviation programmes
                                         mitigate hunger and poverty.             be paid. This strategy enables people in the        – for example, by helping to meet the raw
                                                                                  uplands to devote their time and energies           material requirements of industries involved
                                                                                  wholly to the rehabilitation of the environment     in the Trade and Industry Department’s “One
                                                                                  while earning in the process.                       Town One Product” scheme, which encour-
                                                                                     In 2009, the Philippine Government has           ages towns to specialize in a single product
                                                                                  allotted 1.5 billion pesos (roughly US$30 mil-      according to local comparative advantage in
                                                                                  lion) for the implementation of the programme,      resources and skills. The scheme’s intent is to
                                                                                  which will cover more than 52 000 hectares of       ramp up production while promoting entrepre-
                                      Jose L. Atienza, Jr is Secretary of the     180 watersheds supporting major river basins        neurship and creating income opportunities,
                                      Department of Environment and Natural
                                                                                  and protected areas. The Upland Development         especially for micro, small and medium-sized
                                      Resources, Government of the Philippines,
                                      Quezon City, the Philippines.               Program integrates other upland programmes          enterprises. The Upland Development Pro-
                                                                                                                                      gram’s linkage to this scheme ensures ready
                                                                                                           Upland Development         markets for the products generated under the
                                                                                                           Program site at
                                                                                                                                      programme, further enhancing livelihoods of
                                                                                                           Mount Kitangland
                                                                                                           Range Natural Park,        people’s organization members.
                                                                                                           the Philippines              The stark reality of global financial crisis
                                                                                                                                      and climate change increases the urgency of
DENR PROTECTED AREA SUPERINTENDENT, BUKIDON




                                                                                                                                      involving and empowering upland communi-
                                                                                                                                      ties to carry out the imperatives of conserva-
                                                                                                                                      tion, protection and sustainable utilization of
                                                                                                                                      forest lands. To this end, the Upland Devel-
                                                                                                                                      opment Program aims to transform poverty
                                                                                                                                      into self-sufficiency and degradation into
                                                                                                                                      restoration.
                                                                                                                                        For more information, see: forestry.denr.gov.ph/
                                                                                                                                      SUDP.htm




                                                                                                                                                                   Unasylva 233, Vol. 60, 2009
                                                                       43




         How Chinese forestry is coping with the challenges
                 of global economic downturn
                                                        Q. Ma, J. Liu and W. Du




  China’s domestic economic

                                                   T
                                                            he global financial crisis is creat-     The economic development of forestry
  stimulus package aims to                                  ing severe challenges for Chinese      in China has greatly depended on external
  encourage consumption of                                  forestry, and especially for small     trade; timber imports have increased by
  wood and wood products; raise                    and medium-sized wood-processing                on average 30 percent per year over the
  investment in afforestation,                     enterprises. Exports of forest products,        past ten years. In 2007, China imported
  reforestation and protection of                  domestic demand for forest products             around 37 million cubic metres of logs as
  natural forests; and support forest              and timber prices have dropped sharply          well as wood pulp, waste paper and other
  enterprise through reduced taxes                 since 2008. Some small and medium-              paper and wood products equivalent to
  and other benefits.                              sized forest enterprises have closed down       about 180 million cubic metres of logs;
                                                   (SFA, 2008a).                                   these imports accounted for 47 percent of
                                                     The Chinese government has adopted            China’s total wood consumption (SFA,
                                                   a financial and monetary stimulus policy        2008a). The import and export of China’s
                                                   to cope with the crisis. Measures in the        main forest products amounted to US$63
                                                   forest sector include increasing invest-        billion in 2008 (US$27 billion of imports
                                                   ment and expanding domestic demand              and US$36 billion of exports), account-
                                                   to create a favourable environment for          ing for 35 percent of the total output of
                                                   enterprises to develop and to respond to        the forest sector. In total trade value of
                                                   the challenges. This article discusses the      forest products, China ranked second
                                                   impact of the financial crisis on China’s       in the world after the United States of
                                                   forest industry and the strategies and con-     America (SFA, 2008a).
                                                   crete actions taken by the forest sector.
                                                                                                   IMPACTS OF THE FINANCIAL
                                                   A SECTOR OF RAPID GROWTH                        CRISIS
                                                   The forestry sector in China has devel-         Since the second half of 2008, the nega-
                                                   oped rapidly along with the fast overall        tive impacts of the international financial
                                                   growth of the national economy. The             crisis have overlapped with accumulated
                                                   total output value of the sector reached        problems caused by the overwhelmingly
                                                   US$180 billion in 2007. The average             rapid expansion of the forest industry. An
                                                   growth rate of production in the forestry       objective look at the economic situation
                                                   sector, including primary, secondary and        could assist governments and enterprises
                                                   tertiary industry, was 20.6 percent per         in formulating appropriate policies and
                                                   year from 1997 to 2007 (SFA, 2008b).            actions.
                                                   China has become a leading country in
                                                   the production, consumption, import and         Decreased trade
  Qiang Ma is a Ph.D. candidate in the School of
  Forestry Economics and Management, Beijing
                                                   export of forest products in general and        The world economy is in recession as
  Forestry University, Beijing, China, and is      is the world’s top exporter of wood-based       a consequence of the financial crisis.
  Forestry Officer in the Forest Economics and     panels (FAO, 2009) and wood furniture           United States and European purchasing
  Policy Division, Forestry Department, FAO,
  Rome.
                                                   (UNECE and FAO, 2008). The scale of             power has decreased drastically. The
  Jinglong Liu is Professor in the School of       the country’s forest industry has also          construction industry, which has been
  Agricultural Economics and Rural Development,    expanded; more than 15 000 forest enter-        a major consumer of forest products,
  Renmin University of China, Beijing, China.
  Wenxian Du is a Ph.D. candidate in the same
                                                   prises now have at least US$730 000 of          experienced a severe downturn. The
  school.                                          annual sales each (Jia, 2009).                  United States dollar has continued to




Unasylva 233, Vol. 60, 2009
                                                                                 44




                 depreciate against the Chinese yuan.         in terms of export value, it accounted for   percent, larch by 15.2 percent and euca-
                 All these factors have direct impacts on     30.7 percent of the total national value     lyptus by 12.3 percent. The price of euca-
                 China’s trade in forest products.            of major forest products in 2008. But        lyptus in zhangzhou, Fujian Province,
                   China’s foreign trade in forest products   for the first time in the past ten years,    fell 25 percent, from US$95 to $72 per
                 rose by 9.6 percent in 2008. However,        furniture export volume declined nota-       cubic metre, between September and
                 the growth rate decreased by 12.9 per-       bly (14.4 percent) because of reduced        December 2008. The price of poplar
                 centage points (i.e. by 57 percent) from     imports by the United States, Japan and      veneer fell 16.7 percent, and the price of
                 2007. The import value of forest products    European countries. The growth rate          eucalyptus veneer declined 12.1 percent
                 grew 14 percent, and their export value      of furniture export value fell by 18.6       during the same period. The export price
                 rose 6 percent. The total trade value of     percent (China Customs, 2009). China’s       of wood-based panels fell 25 percent
                 major forest products represented 2.5        imports of roundwood (the main forest        and the export price of wooden flooring
                 percent of the national total in 2008,       product import over the past decade)         fell 30 percent from January to October
                 dropping 0.18 percent from 2007 (China       decreased for the first time in 2008, by     2008 (SFA, 2008a).
                 Customs, 2009).                              20.3 percent compared with the same
                   Imports of logs and wood-based pan-        period in 2007.                              Slowed production and closures
                 els and exports of wooden furniture,                                                      With the cooling of market demand, pro-
                 plywood and wood flooring are the            Unbalanced market                            duction has fallen in the wood process-
                 most significantly affected by the cur-      Domestic roundwood demand is lower           ing and wood-based panel, wooden fur-
                 rent economic crisis (SFA, 2009). All        than supply, causing lower prices of         niture and pulp and paper industries.
                 went down in both volume and value           raw materials and wood products from         These products accounted for about 48
                 except for furniture, whose export value     month to month. The domestic property        percent of the total gross added value
                 increased slightly (3.1 percent) because     market remains depressed, resulting in       of the forestry sector in 2008; therefore
                 of price increases from 2007 to 2008.        reduced demand for processed wood            their slowed pace of development has
                 Wooden furniture is among China’s            products. The reduced price of timber        great impact on the value of the sector.
                 most important forest product exports;       has not stimulated demand, and the sup-      For the first ten months of 2008, China’s
                                                              ply backlog continues to grow. Between       wood processing industries suffered a
                 The economic crisis has                      August and November 2008, average            total approximate loss of US$5 billion
                 caused a drop in exports                     roundwood prices in the provinces of         (Global Wood, 2009). The reduced
                 and export prices of
                 Chinese wood products                        Jilin and Shandong decreased notably         export prices of wood-based panels
                 such as flooring, leading to                 – poplar by 4.4 percent, birch by 15.3       and wooden flooring have caused many
                 industry closures                                                                         processing and exporting enterprises to
                                                                                                           close or temporarily stop production
                                                                                                           (see Box opposite). About 20 percent of
                                                                                                           flooring enterprises are facing difficul-
                                                                                                           ties in surviving. More than 50 percent
                                                                                                           of plywood businesses and nearly 65
                                                                                                           percent of primary wood processing
                                                                                                           enterprises have stopped production,
                                                                                                           creating a state of semi-shutdown in
                                                                                                           China (SFA, 2008a). In addition, about
                                                                                                           7 000 furniture enterprises were reported
                                                                                                           to have closed from January to October
                                                                                                           2008 (ITTO, 2009).

                                                                                                           Exchange rate fluctuations
                                                                                                           Exchange rate fluctuations have had
                                                                                                           impacts on enterprise efficiency. The
FAO/FO-6940/J. CARLE




                                                                                                           United States dollar and the euro are
                                                                                                           expected to depreciate further in 2009,
                                                                                                           while the Chinese yuan is expected to
                                                                                                           appreciate. Because of the depreciation




                                                                                                                                    Unasylva 233, Vol. 60, 2009
                                                                     45




                                                                                                ers returning to forest areas from cities
                          Slowdowns and shutdowns: some statistics                              (SFA, 2008a).
                                 from Guangxi Province                                            To boost farmers’ income, the State
                                                                                                Forestry Administration has also intro-
  In 2008, prices of major forest products decreased by about 15 to 20 percent in Guangxi
                                                                                                duced a key measure promoting invest-
  Province. Some 30 to 40 percent of eucalyptus-based plywood enterprises ceased or slowed
                                                                                                ment from the central budget of the
  production because of poor sales. Pine-based plywood enterprises stopped producing, with
                                                                                                Forest Ecological Benefit Compensation
  the exception of a few large businesses producing more than 10 000 m3 per year. In the
                                                                                                Fund, established in 2001. In 2008, 46.6
  peeled veneer industry, about 300 enterprises (45 percent of the total) closed down. The
                                                                                                million hectares of public-benefit forests
  rosin industry is in a slump because of shrinking raw material resources and prices; in the
                                                                                                were incorporated into the compensation
  second half of 2008, rosin production was reduced by 30 to 40 percent compared with the
                                                                                                scheme, with investment of US$500 mil-
  same period of the previous year (Forestry Department of Guangxi Province, 2008).
                                                                                                lion from the fund’s central budget. This
                                                                                                investment included US$290 million
                                                                                                for 26.5 million hectares of collective
  of the United States dollar, the export        investment, stimulate domestic demand          forests, benefiting 20 million families
  value of the China Jilin Forest Industry       and provide a more favourable environ-         and 70 million forest farmers.
  Group Co. Ltd, which was US$75 million         ment for forest enterprise.                      The State Forestry Administration will
  in 2008, will be reduced by US$5 mil-            The central government rapidly pro-          assist with the alleviation of some of the
  lion in 2009. Exchange rate fluctuations       vided a supplementary investment of            problems faced by forest enterprises in
  resulted in losses of US$2.3 million in        US$530 million in the fourth quarter           China. The first measure is to continue
  income in 2008 for Xinyuan Wood and            of 2008, focusing on projects to protect       the policy of reimbursement of the value-
  Forest Hill Wood of the Yanbian Forestry       the natural forests and to establish forest
  Corporation (Forestry Industry of Jilin        plantations designated for environmen-                                      As one means of
  Province, 2009).                               tal protection, including afforestation                                  providing jobs, the
                                                                                                                       Chinese Government
                                                 and reforestation of 2.6 million hec-
                                                                                                                     is boosting investment
  Economic and social impacts                    tares. The newly increased investment                                   in forests, including
  The effects of the crisis in the forest        is expected to boost local and commu-                                       establishment of
                                                                                                                             protective forest
  industry are having wider repercussions        nal input by US$1.4 billion, to provide
                                                                                                                     plantations (mangrove
  for the economy and society. In key            jobs for about 1.2 million rural workers                                 nursery for coastal
  State-owned forest regions, forestry           every year and to employ former farm-                                     protection, Hainan
                                                                                                                                    Province)
  accounts for a large proportion of the
  local economy. Disruption of develop-
  ment in the forest industry has been
  affecting other related industries, and
  local economic development has slowed
  down as a result.
    The financial crisis has also had nega-
  tive impacts on forest dwellers’ liveli-
  hoods and on social stability. Industry
  closures and slowdowns have resulted
  in drastic unemployment and thus in
  local social instability. Reduced income
  and decreased purchasing power have
  restrained increases in consumption. The
  consequent decrease in internal demand
  has also inhibited social development in
  forest areas.
                                                                                                                                                 FAO/FO-6959/J. CARLE




  FACING THE CHALLENGES
  The State Forestry Administration is
  taking a number of measures to increase




Unasylva 233, Vol. 60, 2009
                                                                                   46




                                                                                                           Enterprises using wood
                                                                                                           processing residues
                                                                                                           and small-diameter
                                                                                                           wood will benefit from
                                                                                                           reimbursement of value-
                                                                                                           added tax (eucalyptus
                                                                                                           residues processed into
                                                                                                           chips for use in pulp and
                                                                                                           paper production)




                                                                                                             importing countries such as the United
                                                                                                             States, Japan and the European Union
                                                                                                             (EU) to improve market access for forest
                                                                                                             products.
                                                                                                               Finally, local governments and enter-
                                                                                                             prises are taking various measures to
FAO/FO-6953/J. CARLE




                                                                                                             increase capacity to cope with the chal-
                                                                                                             lenges of financial crisis, such as enhanc-
                                                                                                             ing the raw material base, promoting
                                                                                                             new technology and expanding domestic
                                                                                                             and international markets, for example
                 added tax (VAT) for producers, which        for furniture products increased from 11        through increased product quality and
                 has rebated nearly US$14.4 million          to 13 percent. The rebate for some paper        value added (see Box below). To reduce
                 annually to forest industry enterprises.    products was increased from between             market risks, the use of both domestic
                 Industries producing products using         0.5 and 11 percent to 13 percent. The           and foreign capital to develop both mar-
                 wood processing residues and small-         government is also negotiating with             kets is encouraged.
                 diameter wood also benefit from the
                 same tax policy. The second measure is
                 to aid forest industries by lending with           Pizhou’s government pushes development of panel industry
                 reduced interest rates. In 2008, a total
                 of US$1.26 billion was loaned with a        Pizhou City in Jiangsu Province is one of the four main centres of wood-based panel
                 reduced interest of US$60 million in        processing in China. It has more than 3 000 wood processing enterprises and more than
                 total. In 2009, US$4.5 billion will be      2 200 downstream production lines, which are worth US$2.3 billion in output value. In
                 loaned with the interest rate reduced by    response to the economic slowdown, the city government has taken a variety of measures
                 2 percentage points; the US$90 million      to enhance the area’s international competitiveness and its capacity to mitigate risks.
                 of reduced interest will be paid from the     First, the city has strengthened its industrial raw material base through rapid expansion of
                 State budget. Third, the import of seeds    the local forest area. In early 2009, Pizhou had a total of 2.8 million cubic metres of poplar
                 and provenances of plants and animals       stocks, which guarantee the sustainable development of the local forest industry.
                 to be used as propagation material was        Second, the leading enterprises are supported by new technology. The city government
                 exempted from the VAT on imports. In        has implemented strategies to accelerate technology development and expand the scale of
                 2008, a total of about US$3 million was     production, to develop large-scale forest industry as a driving force of the economy.
                 exempted (SFA, 2008a).                        Third, the city has worked to keep its international market and to expand the domestic
                   The State Forestry Administration is      market. Pizhou is the source of up to 70 percent of national wood-based panel exports. To
                 also taking some measures to stabilize      maintain international cooperation, the city government has set up representative sales
                 wood product exports. A main measure        offices and established selling agent relationships with companies in France, Germany,
                 is to increase the rates of the export      the Republic of Korea and the United States, as well as ten export ports. The govern-
                 tax rebate for 117 wood product items.      ment is expanding the domestic market by establishing new sales offices in 12 large and
                 These items include bamboo products,        mid-sized cities and by setting up 40 Web sites for small and medium-scale enterprises
                 wood-based panels and flooring pro-         to strengthen the exchange of market information on wood-based panels.
                 ducts, for which the export tax rebate
                                                             Source: ITTO, 2009.
                 increased from 5 to 9 percent. The rebate




                                                                                                                                        Unasylva 233, Vol. 60, 2009
                                                                                47




                              Enterprises are increasing
                                    capacity to cope with
                                 financial crisis through
                               measures to enhance the
                                   raw material base and
                               promote new technology
                                (vegetative propagation
                                     of young eucalyptus
                                    for high-productivity
                                             plantations)




  DISCUSSION
  The past rapid growth of Chinese pro-
  duction and trade was the result of mul-
  tiple factors, including the low cost of
  labour, technological innovation and the
  development of complete production




                                                                                                                                                   FAO/FO-6946/J. CARLE
  chains. However, since 2008 China has
  encountered some obstacles:
     • non-tariff trade barriers, such as re-
       cently established EU regulations
       for wood and wood products requir-
       ing all the commercial companies                     China will be pressed to maintain its             has been and will mostly likely con-
       in the production chain to submit                    increased share in the international mar-         tinue to be a dominant country in the
       documents certifying the legality                    ket over a long period.                           forestry sector, its exports cannot
       of the raw material – which entails                    Therefore, the authors suggest a need           exceed its imports because China
       additional costs to producers;                       to adjust the rapid growth of China’s             needs to meet domestic demand for
     • enterprises’ lack of confidence be-                  forest industry. The financial crisis can         roundwood and other primary pro-
       cause of trade barriers and a rise in                provide an opportunity:                           ducts rather than seek significant
       the price of raw material;                              • to improve technology, promote               export growth.
     • shrinkage of domestic demand for                          branding and increase the produc-          Furniture exports improved in March
       wood and wood products, especially                        tion scale of forest industry enter-     2009 and showed positive growth com-
       caused by the reduction of investments                    prises;                                  pared with the same month in 2008
       in fixed assets and real estate;                        • to refine the physical distribution      (China Customs, 2009). Although this
     • increased costs of coastal land (where                    of the supply chain, for instance the    may suggest that furniture has been one
       the majority of forest industries are                     closeness of processing enterprises      of the first industries to recover, the
       located), environmental protection                        to markets, since in the furniture       apparent recovery is the result of the
       and labour benefits;                                      industry, for example, transport is      factors mentioned above such as the
     • greatly increased cost of labour.                         the greatest contributor to the cost     export tax rebate policy, stabilization
    The current economic crisis actually                         of the end product;                      of labour prices, the decrease of inter-
  provides opportunities for the Chinese                       • to transfer low value-added produc-      national timber prices and the financial
  forest industry insofar as the domestic                        tion chains to the country of origin     stimulus programme.
  economic stimulus package is expected                          of the raw material, in order to avoid     The crisis also provides a strategic
  to generate consumption of wood and                            the constraints of importing raw ma-     opportunity for addressing problems of
  wood products and to provide benefits                          terials, and to encourage enhanced       wealth distribution and poverty in forest
  such as the continuous reduction of taxes                      cooperation and coordination among       regions, where poor living conditions
  and fees for forestry (e.g. the export tax                     enterprises (although it is crucial to   include problems of transportation, edu-
  rebate) and lower labour costs. This is                        adapt enterprises to advanced indus-     cation, health and culture. Salaries in
  thus a unique and strategic period for the                     trial production processes);             State-owned forest regions are among
  Chinese forest industry to develop and                       • to analyse the strengths and weak-       the country’s lowest, and more than half
  become competitive in global markets.                          nesses of the forest processing indus-   of China’s poor population lives in forest
  However, with trade in decline at present,                     try – recognizing that while China       areas. Over the long term, the large sums




Unasylva 233, Vol. 60, 2009
                                                                   48




invested by the government in forests        directly contribute to climate change                Available at: www.forestry.gov.cn/
and forestry to overcome the financial       mitigation and adaptation efforts. Such              distribution/2009/01/15/ldzq_1000-2009-
crisis will have a high return rate by       investments provide a large number of                01-15-1233.html [In Chinese]
increasing farmers’ incomes, promot-         jobs, which could absorb unemployed                SFA. 2008a. News releases by Mr Cao of the
ing farmer employment and maintaining        workers, specifically those returning                State Forestry Administration. Beijing,
social stability, while also improving the   from cities to rural areas, increasing               China, State Forestry Administration.
environment.                                 their income and consumption. Forestry               Available at: politics.people.com.cn/
  For example, in Jiangxi Province the       could contribute to economic renewal                 GB/1026/8574064.html [In Chinese]
total output of forestry in 2008 was         in unique ways, and could provide a                SFA. 2008b. Annual report of forestry
US$11.1 billion, with an average net         turning point in converting China from               development in China. Beijing, China,
income per farmer of US$99.6, account-       a fast-growing economy into a green                  China’s Forestry Publishing House. [In
ing for 14.9 percent of the province’s       economy. u                                           Chinese]
average rural net income. Jiangxi                                                               SFA. 2009. Rapid report of the financial crisis
Province had 6.8 million former farm-                                                             impacting on China’s forestry enterprises.
ers working in cities, but because of                                                             Beijing, China. [In Chinese]
the economic crisis 1.2 million of them                                                         UNECE (United Nations Economic
have returned to their rural homes since                                                          Commission for Europe) & FAO. 2008.
June 2008. Large-scale afforestation                      Bibliography                            Forest Products Annual Market Review
and reforestation programmes in the                                                               2007–2008. New York, USA & Geneva,
province have absorbed many of these         China Customs. 2009. Statistics. Available           Switzerland, UN. Available at: www.unece.
returnees, including about 18 000 large         at: www.customs.gov.cn                            org/timber/mis/fpama.htm u
and relatively wealthy forest households     FAO. 2009. ForestSTAT statistical database.
each with more than 3.3 ha of forests,          Available at: faostat.fao.org
and 130 000 returned farm workers (Hu,       Forestry Department of Guangxi Province.
2009). Increased investment in forestry         2008. Impacts of global financial crisis on
by the central government has helped to         forestry production in Guangxi Autonomous
reduce disparities in wealth distribution       Region. Available at: www.hnforestry.gov.
and local development.                          cn/listinfo.aspx?ID=193078 [In Chinese]
                                             Forestry Industry of Jilin Province. 2009.
CONCLUSION                                      Analysis and policy suggestions to the
The current economic crisis provides            forestry industry of Jilin Province under
both challenges and opportunities for           the impact of the financial crisis. Available
Chinese forestry. The domestic eco-             at: www.jllycy.com [In Chinese]
nomic stimulus measures are expected         Global Wood. 2009. Financial downturn
to increase investment in forestry at both      brings losses for China’s forest products
the central and local levels, and policies      trade. Available at: www.globalwood.org/
are being established to minimize the           market1/aaw20090101d.htm
negative impacts of the economic cri-        Hu, A. 2009. Proposition for “expanding
sis on forestry and to promote forestry         domestic demand” to speed up forestry
development.                                    development. Forestry Economics, 2: 3–5.
  The economic downturn also pro-               [In Chinese]
vides unique opportunities for devel-        ITTO. 2009. Tropical Timber Market Report,
oping more sustainable approaches in            16–28 February 2009. 14(4). Yokohama,
forest management. The investments by           Japan, International Tropical Timber
central and local governments in forest         Organization.
plantations for environmental protec-        Jia, Z. 2009. Get a clear understanding of the
tion programmes and as a source of raw          new situation, seize the new opportunities,
material for wood industry will help to         create a new comprehensive stage of
rebuild natural assets. Furthermore, the        scientific development for modern forestry.
establishment of forest plantations and         Speech at the meeting of Directors-
improved management of forests will             General of various forestry departments.




                                                                                                                            Unasylva 233, Vol. 60, 2009
                                                                          49




     Coping with crisis in Central Africa: enhanced role for
                  non-wood forest products
                     J.C. Tieguhong, O. Ndoye, P. Vantomme, S. Grouwels, J. Zwolinski and J. Masuch




  Examples from Cameroon and

                                                      T
                                                               he current financial and economic    lation. For resilience in times of crisis,
  other countries highlight the                                crisis has directly and indirectly   many rural communities depend on the
  capacity of non-wood forest                                  affected the drivers of Africa’s     presence of accessible economic oppor-
  products to provide employment,                     recent growth performance (AfDB,              tunities such as the collection of non-
  income and sustenance in times                      2009). Demand for and prices of African       wood forest products (NWFPs) (Arnold
  of crisis – given a suitable legal                  commodities are falling, capital flows        and Townson, 1998).
  framework to help safeguard                         are declining, and promised increased           In a region where forests cover 44.6
  local access and prevent resource                   aid has not materialized. Through con-        percent of the land area (FAO, 2009),
  depletion.                                          tagion, the crisis has affected financial     about 60 percent of the rural population
                                                      markets, foreign exchange markets and         depends on access to forests to meet
                                                      commodity markets – the last being            their daily needs in terms of subsistence,
                                                      of particular importance for forest           employment and cash income (Arnold
                                                      products.                                     and Ruiz-Pérez, 1998; Tieguhong and
                                                        In Central Africa – considered in this      Ndoye, 2004, 2006; Tieguhong and
                                                      article as the ten member countries of        zwolinski, 2008). The main products
                                                      the Central African Forests Commis-           extracted by forest-dwelling people are
                                                      sion (COMIFAC): Burundi, Cameroon,            fuelwood, poles and NWFPs, including
                                                      Central African Republic, Chad, Congo,        bushmeat. Political, economic, technical
                                                      Democratic Republic of the Congo,             and legal entry requirements for earning
                                                      Equatorial Guinea, Gabon, Rwanda and
                                                      Sao Tome and Principe – the crisis has                               A Baka pygmy family
                                                      taken a heavy toll on the economies                                completely dependent
                                                                                                                                on the forest for
                                                      that are highly dependent on natural                                    housing and food:
                                                      resources. Several extractive indus-                                   about 60 percent of
                                                      tries in the Democratic Republic of the                             the rural population in
                                                                                                                         Central Africa depends
                                                      Congo, the Central African Republic and                            on access to forests to
                                                      Cameroon have cancelled or postponed                                meet their daily needs
  Julius C. Tieguhong is with the Technical           projects. Closure of 70 mining companies
  Training and Research Centre for Development
  (TTRECED), Yaounde, Cameroon.                       in the Kantaga region of the Democratic
  Ousseynou Ndoye is Regional Coordinator of          Republic of the Congo, for instance, led
  the FAO project “Mobilization and Capacity          to a loss of up to 200 000 jobs between
  Building of Small and Medium Enterprises
  involved in Non-Wood Forest Products value          the end of 2008 and mid-2009. The recent
  chains in Central Africa”, Yaounde, Cameroon.       crisis is also having serious impacts on
  Paul Vantomme is Senior Forestry Officer (Non-      the timber sector as orders for timber
  Wood Forest Products), and Sophie Grouwels
  is Forestry Officer (Small-Scale Enterprise         from importing countries diminish and
  Development), Forestry Department, FAO,             logging and timber processing companies
  Rome.                                               are forced to cut costs, close concessions
  J. Zwolinski is Head of the Forestry Programme,
  Faculty of Science and Agriculture, University of   and lay off workers.
  Kwazulu-Natal, Scottsville, South Africa.             Apart from the overall macroeconomic
  J. Masuch is FAO Associate Professional Officer     impacts, the crisis presents a gloomy
                                                                                                                                                J.C. TIEGUHONG




  with the project “Contribution of Non-Wood
  Forest Products to Poverty Alleviation and Food     situation for rural households, which
  Security”, Yaounde, Cameroon.                       make up 62 percent of the region’s popu-




Unasylva 233, Vol. 60, 2009
                                                                       50




income from NWFP gathering are rela-          in cities had to return to their villages,              (Tieguhong and Ndoye, 2006). Research
tively few (in comparison with timber         and NWFPs began to substitute now                       in Cameroon has shown that NWFPs
enterprise, for example). Particularly        less affordable products. For example,                  are of great economic importance to
in times of crisis, NWFPs are a major         the currency devaluation increased the                  rural households, traders and the national
source of supplementary income and            price of beer and whiskey and made palm                 economy (Ndoye and Tieguhong, 2004;
work for those unable to obtain formal        wine more attractive; and the price of                  Tieguhong and Ndoye, 2006) (Table).
or other sufficient employment; they          pharmaceutical products increased, so                   Between 1999 and 2003, the regenera-
also provide food, medication and other       rural dwellers and poor urban house-                    tion tax owed to the Cameroon Govern-
products for household and subsistence        holds increasingly turned to herbal medi-               ment by NWFP licensees (10 CFA francs
use, thus acting as a “safety net”. But       cines for their health care (Ndoye and                  [US$0.02] per kilogram of NWFP har-
economic crisis can aggravate conflict        Tieguhong, 2004).                                       vested and sold, ostensibly for replanting
among users (and between subsistence            Before the current crisis, the region’s               harvested plants) was alone worth over
and commercial users) by creating             gross domestic product (GDP) per capita                 350 million CFA francs (US$700 000)
increased dependence on and competi-          was already low, ranging from US$107 in                 (Betti, 2004) – and this figure does not
tion for NWFP resources.                      the Democratic Republic of the Congo to                 take into account other taxes, e.g. on
  This article reviews the importance of      US$5 915 in Equatorial Guinea (where                    exports and on NWFP processing indus-
NWFPs as a source of self-employment,         oil exploration has raised per capita GDP               tries. The international market value of
income, livelihood and sustenance in          from previously among the lowest in the                 NWFPs in Cameroon is also significant.
Central Africa, with particular refer-        region). Apart from Equatorial Guinea,                  For example, export value for 206 tonnes
ence to Cameroon and the Democratic           which has an annual GDP growth rate                     of Dacryodes edulis (an edible fruit rich
Republic of the Congo. It outlines how        of just over 16 percent, growth rates are               in fats and oils) to France and Belgium in
free access to forest resources must be       below 5 percent; the Central African                    1999 amounted to US$1.7 million. The
guaranteed for poor forest-dependent          Republic is in recession with –0.8 per-                 annual market value of D. edulis fruits
people so as to reduce poverty and help       cent growth. Meanwhile, the region’s                    in Cameroon was estimated at over US$7
diminish the negative impacts of the          population (almost 117 million in 2006)                 million (Awono et al., 2002).
global financial and economic crisis for      continues to grow quickly, at an average
rural households. Finally, it describes the   annual rate of 2.5 percent (FAO, 2009).                 Household economies
development of a legal framework for                                                                  The importance of NWFPs in Central
commercial use of NWFPs, to safeguard         ECONOMIC CONTRIBUTION OF                                Africa is most visible at the household
people’s rights of access and prevent         NON-WOOD FOREST PRODUCTS                                level. For instance, Tieguhong (2009)
depletion of the resources.                   National economies                                      found that in five villages surrounding
                                              In Central African countries, data on                   Lobeke National Park in Cameroon,
NOT THE FIRST CRISIS                          NWFPs are not included in national                      household-consumed goods represented
The countries of Central Africa already       production and trade statistics, so their               44.6 percent of the cash flow to sur-
experienced more than one economic            contribution to GDP is poorly known                     veyed households. Goods associated with
crisis in the mid-1980s and the devalua-
tion by 100 percent of the local currency     Some NWFPs of high economic value in Cameroon
(the CFA franc) in the mid-1990s. Rural        Product                          Part of plant used              Use                 Value
                                                                                                                                    (US$)
people’s reliance on NWFPs increased as
a result. In Cameroon, for example, the        Edible plantsa

crisis lowered the financial profitability     Cola acuminata                         Seed               Snack, stimulant,        212 000
                                                                                                         aphrodisiac
of cocoa in the international market, and
                                               Dacryodes edulis                       Fruit              Food (vegetable)         244 000
induced rural communities to diversify
their income sources (to minimize the          Irvingia spp.                          Seed               Condiment                302 000

risk associated with cocoa farming)            Ricinodendron heudelotii               Seed               Condiment                460 000
(Ndoye and Kaimowitz, 2000) and to             Medicinal plantsb
turn increasingly to NWFPs for income          Pausinystalia johimbe                  Bark               Aphrodisiac,             600 000
(Tieguhong and Ndoye, 2004). Further-                                                                    stimulant, tonic

more, the economic crisis increased the        Prunus africana                        Bark               Prostate treatment       700 000

level of poverty in rural areas as many       Source: Ndoye, 1995 (edible plants); CARPE, 2001 (medicinal plants).
                                              a
                                                January to July in the humid forest region.
people who had had minimum-wage jobs          b
                                                Annual value at national level.




                                                                                                                               Unasylva 233, Vol. 60, 2009
                                                                                             51




  shelter and food security dominated the                                       In Cameroon,
                                                                         fruits of Dacryodes
  income generated by the households,                                      edulis are of great
  with forest products being the main and                              economic importance
  most valuable source of them (Tieguhong                                    to the economy,
                                                                         with annual market
  and zwolinski, 2008) (Figures 1 and 2).                                 value estimated at
  NWFPs were also found to constitute                                      over US$7 million
  the main source of income for 39 per-                                  (Makenene market)
  cent of women in Nko’ongop village,
  located at the periphery of Campo
  Ma’an National Park in South Cameroon
  (Sonne, 2001).
    In Équateur Province of the Democratic
  Republic of the Congo, charcoal, palm
  wine and edible leaves of Gnetum spp.
  are the NWFPs that provide the high-
  est profit to traders, averaging US$216,
  $166 and $131 per month, respectively.
  These profits are higher than the aver-
  age wage of secondary school teachers
  (US$50 to $70). In the same province,
  households selling six NWFPs (Maran-




                                                                                                                                                                   O. NDOYE
  thaceae leaves, caterpillars, mushrooms,
  charcoal, Gnetum spp., palm wine)
  obtained, on average, a monthly revenue                              of US$84, comparable to that of a civil            gained an average monthly income of
                                                                       servant (US$80) (Ndoye et al., 2007). In           US$270, which is higher than that of a
  1
                                                                       Bandundu Province, traders in these same           medical doctor (US$190 to $250).
  Mean annual household                                                products gained a profit of US$40 per
  income by activities                                                 month. Traders from Bandundu export-               Employment
  registered in villages near
  Lobeke National Park in
                                                                       ing leaves of Gnetum spp. to Kinshasa              NWFPs have a major role in rural
  Cameroon (US$)                                                                                                          employment and income generation,
                                                                                                                          mostly in the informal sector. A survey
                                                                                                                          of a heavily forested zone in southern
                         Forest goods                                                               239.3a
                                                                                                                          Ghana showed that 10 percent of the
                              Agriculture                                      135.2b                                     rural population gains some income
                                                                                                                          from activities in the NWFP value chain
                         Wage labour                                        117.3c                                        (Arnold and Townson, 1998). If a similar
                                                                                                                          percentage is assumed in Central Africa,
               Grants and donations                               77.2d
                                                                                                                          it can be estimated that about 6.5 mil-
                   Livestock rearing
                                                                 75d
                                                                                                                          lion people in the region are engaged in
                and animal products
                                                                                                                          NWFP activities (based on population
        Small business enterprises                             61.6d                                                      estimates from FAO, 2009).
                                                                                                                            Rural women are particularly involved
            Fishing and aquaculture                    24.5e                                                              in gathering and processing NWFPs and
                      Prospecting for                                                                                     are likely to be the main beneficiaries or
                                                3.7f
                    gold and minerals                                                                                     losers from forest resource management
                                            0            50        100         150        200      250         300        interventions in Central Africa that may
                                                                              Income                                      affect free access to the forests. In Cam-
       Source: Tieguhong and Zwolinski, 2008.                                                                             eroon, for example, women represent 51
       Note: Means with different letters (a–f) are statistically significant at 5 percent level. For example, the mean   percent of the population, but more than
       income from forest goods is statistically different from the mean income from agriculture, while the mean
       income from grants and donations is statistically the same as that from livestock rearing and animal products.     70 percent of them live in rural areas
                                                                                                                          and exploit natural resources to meet




Unasylva 233, Vol. 60, 2009
                                                                             52




                                                                              2                       these resources; the increasing access
                                                                              The most important
                               Bamboo
                                                                              forest products in
                                                                                                      to trade (national, regional and global)
                         Poles          Rattan
                                1.6%                                                                  facilitated by the expanding network of
                         2.1%           1.5%                                  terms of income and/
                                                 Three other                  or subsistence for
                                                  products
                                                                                                      roads and logging tracks; or the surge
                                                                              households surveyed
      Honey          Nuts                           2.5%                      in villages near
                                                                                                      in subsistence and commercial demand
      2.6%           2.6%
                                                                              Lobeke National Park,   arising from the ongoing recession in
   Woven products                                                             Cameroon                the timber sector. The national forest
                                                               Wild fruits
       2.8%                                                     34.5%                                 codes and legislation elaborated in the
  Medicinal plants                                                                                    1990s did not address these weaknesses
       3.1%
                                                                                                      of the traditional regulatory framework,
                                                                                                      partly because they were more geared to
  Wild vegetables                                                                                     timber products.
        3.4%                                                                                            Through a fully participatory process
                                                                                                      within a recently completed regional
        Woodfuels                                                                                     project (2006–2008), major forest stake-
         17.6%                                                                                        holders and representatives of govern-
                                                                                                      ments, the private sector and local peo-
                                                                                                      ple’s associations in Central Africa have
                                                                                                      developed innovative model legislation
                                                 Bushmeat                                             governing the subsistence and commer-
                                                  25.6%
   Source: Tieguhong, 2009.                                                                           cial use of NWFPs in Central Africa. The
                                                                                                      model law – Directives sous-régionales
the livelihood needs of their families.           LEGAL AND INSTITUTIONAL                             rélatives à la gestion durable des produits
More than 94 percent of 1 100 NWFP                DIMENSIONS                                          forestiers non ligneux d’origine végétale
traders surveyed in rural and urban mar-          As long as NWFPs were primarily used                en Afrique centrale (FAO, 2008) – is
kets in Cameroon were women (Ndoye,               for subsistence, centuries-old informal             designed to promote business develop-
Ruiz-Pérez and Eyebe, 1997). In the               rules and customary practices were                  ment but also to protect the rights of the
Democratic Republic of the Congo, more            sufficient for overall use and steward-             weakest segments of society to access
women than men were observed to par-              ship of the forests by many diverse                 forest resources for their subsistence
ticipate in the bushmeat trade (Tshombe           user groups. However, the traditional               needs. It serves as a blueprint that can
et al., 2000); women represented 80               regulatory framework is no longer                   be adapted to national circumstances
percent of bushmeat traders in Kinshasa           adequate to deal with the needs of                  for integration in national forest legis-
markets (Ndona, 2004).                            increasing populations; the complexi-               lation. The model law was endorsed by
  Domestication of wild resources (see            ties of expanding commercial use of                 all COMIFAC countries in November
Box) presents a promising opportunity
for investment and for employment (or                   Rural women are
                                                    particularly involved
self-employment) for local farmers and                      in gathering,
NWFP gatherers – who may well be the                     processing and
same. However, neither domestication                   selling non-wood
                                                         forest products
nor increasing the gathering and hunting          (women selling leaves
pressure of NWFP species can go on in                 of Gnetum spp. in
an unregulated way, as it may exclude                  Kinshasa market,
                                                   Democratic Republic
the weakest members of rural society                       of the Congo)
from continuing their NWFP gathering
activities for subsistence and income
generation. Furthermore, unregulated
exploitation of any NWFP may lead to
overharvesting of the species and forest
degradation. Hence the need to put in
place a regulatory framework governing
                                                                                                                                                      O. NDOYE




access to the forests for all users.




                                                                                                                               Unasylva 233, Vol. 60, 2009
                                                                    53




  2008. Cameroon and the Democratic                 ties and procedures for implementa-        CONCLUSION AND
  Republic of the Congo are already in the          tion of the law.                           RECOMMENDATIONS
  process of adapting and implementing            Additional institutional support to          As a consequence of economic crisis, the
  the legislation at the national level, and    increase the contribution of NWFPs             pressure on many NWFPs has increased,
  three more countries (Congo, Gabon            might include:                                 which could lead to overexploitation
  and the Central African Republic) are           • capacity-building for actors involved      of these species. But with sustainable
  beginning to do so.                               in NWFP value chains;                      harvesting techniques and domestica-
    The model legislation is intended to          • promotion of local community               tion, the economic and ecological ben-
  supplement relevant traditional custom-           participation in all aspects of forest     efits could be substantial. The NWFP
  ary rights and enables self-employment            management, and sharing of benefits        sector could benefit substantially from
  in commercialization of NWFPs to                  derived from forest products;              investment and the development of local
  become formal and legal. It covers:             • analysis of institutional factors that     technologies, increased quality stand-
     • access to NWFPs: user rights and             favour or disadvantage access to           ards and recognition of property rights of
       norms and procedures for obtaining           benefits along the value chain;            local communities. The main problem is
       harvesting titles;                         • initiatives to ensure access to re-        to translate policies from official, well-
     • NWFP market chains: procedures               sources and to empower weaker rural        designed texts into concrete develop-
       for harvesting, transport, processing        populations and minority groups,           ment activities on the ground.
       and commercialization;                       especially once NWFP values be-              Domestication of species providing
     • fiscal arrangements: taxation, spe-          come important;                            NWFPs offers great potential as an
       cial funds;                                • dissemination and implementation           income and/or employment source, but
     • infractions and sanctions;                   of the legal framework, including          it requires large investments which are
     • institutional arrangements and capa-         identification of inequities in trade      not easily available during a financial
       city building;                               transactions in terms of selected          crisis, and definitely not to poor forest
     • identification of competent authori-         commodity chains.                          dependent people. “Small is beautiful”,
                                                                                               and it is likely to be through small-scale
                                                                                               investment that the NWFP sector can
                                 Opportunity for investors:                                    contribute most during the current cri-
                          domestication of NWFP-producing species                              sis. The sector involves numerous col-
                                                                                               lectors, using simple tools and requir-
  Since the economic crises of the 1980s, cocoa farmers in the humid forest zone of            ing little investment, who can easily
  Cameroon have diversified their farm income by planting Irvingia spp. and Ricinodendron	     adapt to changing economic patterns
  heudelotii, both used as condiments (Tieguhong and Ndoye, 2006). Between 1996 and            to improve their livelihoods. However,
  2003, the average price of 1 kg of the fruits from these species in the Yaounde region of    an appropriate legal and institutional
  Cameroon was 200 percent higher than the average price of 1 kg of cocoa beans (Ndoye         framework must be in place to prevent
  and Tieguhong, 2004). This comparison suggests that NWFPs should not be overlooked           the weakest segments of society from
  as a source of income generation in Central Africa.                                          exclusion and to avoid resource degra-
    Another exciting NWFP with potential that could be developed further is Prunus	africana,   dation. The NWFP model law project in
  whose bark has medicinal uses. P.	africana is a major economic resource in many countries    Central Africa has piloted a participatory
  of East, West and Central Africa; it is already cultivated, but only on a small scale to     process for incorporating rights-based
  date. According to Tchoundjeu (2004), the world market requires about 5 million trees        legislation into national government
  of P.	africana	in cultivation to satisfy demand. This could come from 1 farmer growing       programmes – a prerequisite for sup-
  5 million trees, 10 farmers growing 500 000 trees, 100 farmers growing 50 000 trees, 1 000   porting self-employment and small-scale
  farmers growing 5 000 trees, 10 000 farmers growing 500 trees, 100 000 farmers growing       enterprises; and it has demonstrated the
  50 trees or 1 million farmers growing 5 trees. Economic analysis (Tieguhong and Ndoye,       value of involving regional structures
  in preparation) shows that 10 000 farmers (with average age of 30 years and average          (in this case COMIFAC) to facilitate
  household size of two) each growing 500 trees of	P.	africana to maturity and exploiting      harmonization and collaboration among
  their bark following sustainable harvesting methods with rotation of five years, would       the countries of a region, enabling them
  each earn an average sustainable annual income of 975 254 CFA francs (US$1 950), more        to have a comparable basis for their rules
  than twice the country’s per capita income. Perhaps investment of a few million dollars      and laws. u
  would suffice to realize this potential in less than two decades.




Unasylva 233, Vol. 60, 2009
                                                                       54




                                                  FAO. 2009. State of the World Forests 2009.         medicinal plants of West and Central Africa.
                                                    Rome.                                             In Proceedings of the fifth Conference on
                                                  Ndona, G.J.C. 2004. Contribution socio-             Central African Moist Forest Ecosystems
             Bibliography                           économique du gibier dans la lutte contre         (CEFDHAC), Yaounde, Cameroon, 24–26
                                                    la pauvreté et l’insécurité alimentaire à         May, pp. 219–223. Yaounde, IUCN
AfDB. 2009. Impact of the global economic           Kinshasa (RDC). Thesis, University of             Regional Office for Central Africa.
  and financial crisis on Africa. Working           Dschang, Dschang, Cameroon.                     Tieguhong, J.C. 2009. Ecotourism for
  Paper Series No. 96. Tunis, Tunisia, African    Ndoye, O. 1995. Commercialization and               sustainable development: economic
  Development Bank.                                 diversification opportunities for farmers in      valuation of recreational potentials of
Arnold, J.E.M. & Ruiz-Pérez, M. 1998.               the humid forest zone of Cameroon: the case       protected areas in the Congo Basin.
  The role of non-timber forest products            of non-timber forest products. Alternatives       Unpublished Ph.D. thesis, University of
  in conservation and development. In E.            to Slash-and-Burn (ASB) consultancy               Kwazulu-Natal, Pietermaritzburg, South
  Wollenberg & A. Ingles, eds. Income from          report. Yaounde, Cameroon, International          Africa.
  the forest: methods for the development and       Institute of Tropical Agriculture (IITA).       Tieguhong, J.C. & Ndoye, O. 2004.
  conservation of forest products for local       Ndoye, O., Awono, A., Preece, L. &                  Development of trade and marketing of
  communities, pp. 17–42. Bogor, Indonesia,         Toirambel, B. 2007. Markets in non-timber         non-wood forest products for poverty
  Center for International Forestry Research        forest products in the provinces of Equateur      alleviation in Africa. Paper presented
  (CIFOR) & International Union for the             and Bandundu: presentation on a field             at the Workshop on Lessons Learnt on
  Conservation of Nature (IUCN).                    survey. In C. Croizer & T. Trefon, eds. What      Sustainable Forest Management in Africa,
Arnold, J.E.M. & Townson, I. 1998. Assessing        does the future hold for the forests in the       Uppsala, Sweden, 18–22 October.
  the potential of forest product activities to     Democratic Republic of Congo? Innovative        Tieguhong, J.C. & Ndoye, O. 2006.
  contribute to rural incomes in Africa.            tools and mechanisms for sustainable forest       Transforming subsistence products to
  ODI Natural Resource Perspectives No.             management. Brussels, Belgium, Belgian            propellers of sustainable rural development:
  37. London, UK, Overseas Development              Development Cooperation, Tervuren                 non-timber forest products (NTFPs)
  Institute (ODI).                                  Africa Museum, CIFOR & International              production and trade in Cameroon. In
Awono, A., Ndoye, O., Schreckenburg, K.,            Cooperation Centre of Agricultural                Africa – escaping the primary commodities
  Tabuna, H., Isseri, H. & Temple, L. 2002.         Research for Development (CIRAD).                 dilemma. African Development Perspective
  Production and marketing of safou (Dacryodes    Ndoye, O. & Kaimowitz, D. 2000. Macro-              Yearbook, Vol. 11, Unit 1, pp. 107–137.
  edulis) in Cameroon and internationally:          economics, markets and the humid forest of        Münster, Germany, Lit Verlag.
  market development issues. Forest Trees and       Cameroon, 1967–1997. Journal of Modern          Tieguhong, J.C. & Zwolinski, J. 2008.
  Livelihoods, 12(1&2): 125–128.                    African Studies, 38(2): 225–253.                  Unrevealed economic benefits from forests
Betti, J.L. 2004. Politique forestière sur        Ndoye, O., Ruiz-Pérez, M. & Eyebe, A. 1997.         in Cameroon. Paper presented at the
  les produits non-ligneux au Cameroun:             The markets of non-timber forest products         IUFRO Conference (IUFRO Unit 4.05.00
  Vers une maîtrise de l’assiette fiscale.          in the humid forest zone of Cameroon.             – Managerial Economics and Accounting),
  Proceedings of the fifth Conference on            Rural Development Forestry Network,               Ljubljana, Slovenia, 22–24 May.
  Central African Moist Forest Ecosystems           Network Paper 22c. London, UK, Overseas         Tshombe, R., Mwinyihali, R., Girineza, M. &
  (CEFDHAC), Yaounde, Cameroon, 24–26               Development Institute (ODI).                      de Merode, E. 2000. Decentralising wildlife
  May, pp. 348–356. Yaounde, IUCN                 Ndoye, O. & Tieguhong, J.C. 2004. Forest            management in the Democratic Republic
  Regional Office for Central Africa.               resources and rural livelihoods: the conflict     of Congo: integrating conservation and
CARPE. 2001. Rich forests, poor countries:          between timber and non-timber forest              development objectives in a country at war.
  adapting forest conservation to economic          products in the Congo Basin. Scandinavian         In J. Abbot, ed. Promoting partnerships:
  realities. CARPE Information Series No.           Journal of Forest Research, 19(Suppl. 4):         managing wildlife resources in Central
  10. Washington, DC, USA, Central African          36–44.                                            and West Africa. Evaluating Eden Series
  Regional Program for the Environment,           Sonne, N. 2001. Non-timber forest products in       3. London, UK, International Institute for
  United States Agency for International            the Campo Ma’an Project Area. A case study        Environment and Development (IIED). u
  Development (USAID).                              of the North Eastern periphery of the Campo
FAO. 2008. Directives sous-régionales               Ma’an National Park, South Cameroon.
  rélatives à la gestion durable des produits       Report to World Bank/GEF Biodiversity
  forestiers non ligneux d’origine végétale en      and Management Project.
  Afrique centrale. Project GCP/RAF/398/          Tchoundjeu, Z. 2004. Update on the
  GER. Rome.                                        domestication of indigenous fruit trees and




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  Global economic                                         the economy to grow and create jobs in
                                                          the future;
                                                                                                         Based on commitments made in the char-
                                                                                                       ter, the Forestry Branch has requested addi-

  crisis and long-term                                  • maintaining the planned high levels of
                                                          investment in public sector infrastructure
                                                                                                       tional funding of 100 million rands (US$12
                                                                                                       million) from treasury to restore degraded
  development:                                            and encouraging private-sector actors to     forests and restock temporarily unplanted
                                                          maintain and increase their fixed direct     areas of about 17 000 ha. It is envisaged that
  a view from the                                         investment;                                  these efforts will absorb some retrenched
                                                        • ensuring that interventions are timely and   workers and also cater for an increase in
  South African                                           appropriately targeted and tailored.         afforested land, while also helping to combat

  forestry sector                                      The Department of Agriculture, Forestry and
                                                     Fisheries endorses a combination of mea-
                                                                                                       the negative effects of climate change.
                                                                                                         The forest industry is the fourth largest
                                                     sures for public and private-sector employ-       exporter in South Africa. From a macroeco-
                                                     ment and training to help avoid massive job       nomic point of view, the government recog-
  R.N. Heath and S. Chipeta                          losses in the period ahead. Under the auspices    nizes the value of a competitive exchange
                                                     of the Expanded Public Works Programme,           rate. With the rand currently depreciated,
                                                     the Forest Department will accelerate imple-      there are opportunities to increase employ-
  While safeguarding domestic                        mentation of labour-intensive programmes          ment and generate export commodities in
  industries and jobs, crisis                        such as Working for Woodlands (to reha-           the forest sector. The national response to
  mitigation policies and measures                   bilitate degraded woodlands), Working for         the global economic slowdown is to rebuild
  should also help to build growth                   Water (a programme for removing invasive          local industrial capacity and avoid deindus-
  prospects for the world economy.                   species) and Working on Fire. Through these       trialization during the period ahead. Critical
                                                     programmes appropriate training courses will      to such a strategy is the need to improve
                                                     be offered, accredited by the relevant authori-   the competitiveness and performance of key
  The world financial system meltdown and            ties. Equitable representation of unemployed      local industries, particularly of vulnerable
  resulting economic crisis have caused a            youth, women and disabled people will be          sectors and small businesses.
  growth crisis in African economies. A great        sought to satisfy social as well as environ-        Countries and the international commu-
  concern is that the growth crisis may degene-      mental needs. So far (to August 2009), South      nity need to monitor and review their crisis
  rate into a development crisis as the recession    Africa has announced a major public invest-       mitigation policies and measures carefully
  deepens. Like other developing countries           ment programme of approximately 787 bil-          to ensure that while safeguarding domestic
  which are strongly integrated in the world         lion rands (US$101 billion) over the three        industries and jobs, they do not unintention-
  economy and significantly dependent on its         financial years to March 2012 to assist in        ally constrain trade growth, which could
  good health, South Africa has been affected        these processes.                                  undermine the economic growth prospects
  by the sharp fall in demand for its export           The Forestry Sector Transformation Charter      of other countries. Given the intricacies of
  products and the drop in prices of key export      which was approved by Parliament in 2008          the crisis, this is an opportune time to review
  commodities.                                       (see www2.dwaf.gov.za/webapp/Documents/           development strategies. The impact of the
    The South African Government has pro-            ForestSectorCharterSection9Gazzette.pdf)          crisis on international trade and investment
  posed a number of broad principles to govern       provides a framework for efforts to abate the     must be addressed as a key element of the
  South Africa’s response to the crisis. These       current crisis. The charter guides the diversi-   multilateral agenda. Individual countries
  include:                                           fication of products and development of new       must also put in place development strate-
    • avoiding placing the burden of the downturn    products to widen market access. Further-         gies that can mitigate the negative effects
       unfairly on the poor and the vulnerable;      more, it steers financial support of emerging     of the crisis on economic growth and devel-
    • protecting and supporting activities           and small, medium and micro enterprises           opment. Governments must emphasize a
       aimed at strengthening the capacity of        (SMMEs). The Department of Agriculture,           focus on development gains.
                                                     Forestry and Fisheries is developing a contract
                                                     with the Industrial Development Corporation
                                                     (IDC) to administer soft loans to SMMEs in
                                                     forestry. In addition to enabling coordinated
  Sebueng Chipeta is Chief Director, Forestry        and accelerated financing of SMMEs, the
  Regulation and Oversight, and Ronald N.
  Heath is Assistant Director, Forestry Policy and   funds secured from IDC will be used to avoid
  Strategy, in the Forestry Branch, Department of    job losses and increase employment in the
  Agriculture, Forestry and Fisheries, Pretoria,     forest sector.
  South Africa.




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                                                                               fao forestry


                        COFO 2009/World Forest Week
                        “Forests in a changing world” was the overall theme of the
                        nineteenth session of the Committee on Forestry (COFO), held
                        at FAO headquarters in Rome from 16 to 20 March 2009. Under
                        the banner of the first World Forest Week, the biennial forestry
                        meeting of FAO member countries was expanded to welcome the
                        participation of many partner organizations. The event attracted
                        over 550 participants.
                          The keynote speaker was Gro Harlem Brundtland, the United
                        Nations Secretary-General’s Special Envoy on Climate Change,
                        formerly Prime Minister of Norway and head of the World




                                                                                                                                                                               IISD/D. BIRCHALL
                        Commission on Environment and Development (best known for
                        developing the broad political concept of sustainable development,
                        published in the 1987 report Our common future). In her address,
                        Brundtland called for mutually supportive forest and climate               A giant chair donated by Federlegno, the Italian Wood Industry
                        change policies and emphasized the imperative of including                 Federation, towers over the COFO exhibit in the FAO atrium – a reminder
                                                                                                   that using wood is good
                        forests in a post-Kyoto Protocol climate agreement, noting that
                        reducing deforestation and forest degradation would be the most
                        cost-effective way to address climate change. She underlined,              forestry agencies need to adapt to economic, political, social,
                        however, that the future agreement must also safeguard the rights          environmental and technological changes at all levels, so as to
                        of forest-dependent people.                                                become more responsive to society’s needs and more efficient in
                          Sustainable forest management in relation to climate change              delivery of economic and environmental services.
                        was one of the two main topics addressed at COFO. Presentations              In parallel to sessions presenting official COFO agenda items,
                        noted that climate change concerns raise potential for financing           approximately 20 special World Forest Week events were held to
                        forest management activities – particularly through the inclusion          enable greater participation by intergovernmental organizations
                        of a mechanism for reducing emissions from deforestation and               and more informal, off-the-record discussion among countries.
                        degradation (REDD) in the post-2012 climate change agreement.              Topics included, among others, the future of public forestry
                        Delegates emphasized that any REDD arrangement must take into              research; new perspectives in forestry education; fire and climate
                        account the range of values forests provide.                               change; forest adaptation to climate change; and access to
                          The discussions underscored the linkages between sustainable             financing for sustainable forest management. Featured speakers
                        forest management and REDD, and stressed that to adapt to                  included leaders and representatives of many CPF partner
                        and mitigate climate change, sufficient financial resources must           organizations.
                        be devoted to sustainable forest management. The joint climate               One of the special events was a dialogue among heads of forestry
                        change strategy presented by the Collaborative Partnership on              departments, which gave participants an opportunity to discuss
                        Forests (CPF) (see Unasylva 231/232, p. 87) underlined the need            the challenges they face – such as budget constraints; changing
                        for the forestry community to present a united front to ensure that        societal and stakeholder expectations, needs and activities; shifting
                        sustainable forest management is included in the prospective               government priorities and structures; and environmental stresses
                        climate agreement.                                                         such as climate change, fires, pathogens and pests – and to
                          The second main theme at COFO was institutional change in                share innovations for dealing with them, including creative funding
                        a dynamic world. The discussions focused on how public sector              processes and partnerships with the private sector.
                                                                                                     Finally, a special session addressed the impacts of global
                                                                      Gro Harlem                   economic turbulence on the forest sector. Panelists raised
                                                                      Brundtland delivers
                                                                                                   concerns that the global economic downturn would be likely to
                                                                      keynote speech
                                                                      at the nineteenth            lead to reductions in investment and wood supply, job losses and
                                                                      session of the FAO           overexploitation of forest resources for subsistence. However a
                                                                      Committee
FAO/11977U6531/G. NAPOLETANO




                                                                                                   main thrust of the session was to highlight the role that sustainable
                                                                      on Forestry,
                                                                      17 March 2009                forest management can play in responding to the crisis. The
                                                                                                   central message was that investment in forestry could not only
                                                                                                   create millions of jobs, but would address climate change at the
                                                                                                   same time. This session provided the basis for many of the articles
                                                                                                   in this issue of Unasylva.




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                                                              fao forestry



                                          FAO Strategy for Forests and Forestry endorsed
  At its nineteenth session, the Committee on Forestry (COFO) endorsed             Focus on results
  the new FAO Strategy for Forests and Forestry, which was developed               At the Conference of FAO in November 2008, member countries
  through a consultative process as requested by the eighteenth ses-               approved in principle a revised strategic framework based on 11 stra-
  sion of the committee in 2007.                                                   tegic objectives for the Organization as a whole; these include one
    The new strategy is aligned with ongoing reforms in FAO, and in                forestry-specific objective: “Sustainable management of forests and
  particular with the new framework of results-based management                    trees”. The FAO Draft Strategic Framework 2010–2019 identifies six
  adopted by the Organization in accord with the recommendations of                main organizational results directed towards meeting this objective:
  an Independent External Evaluation carried out from 2005 to 2008.                   • Policy and practice affecting forests and forestry are based on
  The FAO reforms are being implemented through an Immediate Plan                       timely and reliable information.
  of Action adopted in November 2008.                                                 • Policy and practice affecting forests and forestry are reinforced
    The new strategy for forests outlines three global goals for society                by international cooperation and debate.
  as a whole. Paraphrased, these include:                                             • Institutions governing forests are strengthened and decision-
    • informed, coordinated, transparent and participatory decision-making              making improved, including involvement of forest stakeholders
        across sectors, based on timely and accurate information;                       in the development of forest policies and legislation, thereby
    • increased contribution of trees, forests and forestry to livelihoods,             enhancing an enabling environment for investment in forestry
        poverty alleviation, food security and sustainable supply of                    and forest industries. Forestry is better integrated into national
        raw materials and energy, and increased recognition of these                    development plans and processes, considering interfaces between
        benefits;                                                                       forests and other land uses.
    • good forest management practices, leading to increased forest                   • Sustainable management of forests and trees is more broadly
        resources and thus a greater contribution of forests and trees to               adopted, leading to reductions in deforestation and forest degrada-
        mitigating climate change, combating desertification, conserving                tion and increased contributions of forests and trees to improve
        biodiversity and ensuring water quality – as well as increased                  livelihoods and to contribute to climate change mitigation and
        recognition of these ecosystem services.                                        adaptation.
    The strategy identifies nine core functions of FAO in forestry:                   • Social and economic values and livelihood benefits of forests and
    • providing long-term perspectives and leadership in monitoring                     trees are enhanced, and markets for forest products and services
        and assessing trends in forest resources and services, and the                  contribute to making forestry a more economically viable land-use
        production, consumption and trade of forest products;                           option.
    • generating, disseminating and applying information and know-                    • Environmental values of forests, trees outside forests and for-
        ledge, including statistics.                                                    estry are better realized; strategies for conservation of forest
    • leading the development of voluntary guidelines, supporting the                   biodiversity and genetic resources, climate change mitigation
        development of national legal instruments, and promoting their                  and adaptation, rehabilitation of degraded lands, and water and
        implementation;                                                                 wildlife management are effectively implemented.
    • articulating policy and strategy options and advice to improve the           These results cannot be achieved by FAO alone, but FAO can make a
        social, economic, and environmental aspects of forest develop-             significant contribution. For each result, the strategy identifies priori-
        ment and conservation;                                                     ties to guide FAO during the period 2010–2013. Specific outcomes
    • providing technical support to promote technology transfer, cata-            and indicators are being developed under the the FAO Medium-Term
        lyse change and build effective and sustainable institutional              Plan, and progress will be monitored and reported to FAO governing
        capacity for sustainable forest management;                                bodies, including COFO.
    • undertaking advocacy and communication to mobilize political will
        and to promote global recognition of required actions to achieve
        sustainable forest management;
    • bringing integrated interdisciplinary and innovative approaches
        to bear on work in the forest sector and in other key sectors that
        have an impact on forests;
    • working through strong partnerships and alliances where joint
        action is needed;
    • facilitating linkages between national, regional and global levels.




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                                                           fao forestry


Industry committee ponders impacts of financial                                   The day before the ACPWP meeting, FAO also hosted the
crisis                                                                          annual meeting of the International Council of Forest and Paper
The global economic decline was high on the agenda when the                     Associations (ICFPA).
Advisory Committee on Paper and Wood Products (ACPWP), one                        For more information about ACPWP, see: www.fao.org/
of FAO’s statutory bodies in forestry, met at FAO headquarters in               forestry/51819
Rome for its fiftieth session on 26 May 2009.
  The committee, comprising senior executives from the private
industry sector worldwide, meets yearly to provide guidance to                  Forest tenure, governance and enterprise in Central
FAO on issues relevant to the paper and forest products industry,               and West Africa
in support of member countries’ efforts to progress towards                     In Central and West Africa, as in many regions, weak governance
sustainable development.                                                        and insecure tenure rights often undermine the contributions of
  Country reports prepared by ACPWP members highlighted                         forestry to local, national and regional livelihoods and economies,
emerging issues and business developments over the preceding                    and to the health of the environment. Clarification and recognition
year. The main emerging issues were identified as climate change;               of tenure rights can open up opportunities for forest communities
potential market imbalances due to emission trading schemes;                    to invest in and enhance the sustainable use of forests.
water supply and quality; certification issues, including the difficulty          At the International Conference on Community Forest
of certifying smallholdings; the energy market; and corporate                   Management and Enterprise, held in Brazil in 2007, African
social responsibility.                                                          participants called for a follow-up conference to chart a time-
  The most important business development identified in the                     bound plan for systematically expanding community forest tenure,
country reports was without question the precarious economic                    management and enterprise in Africa to agreed, achievable
situation, which had resulted in difficulties in obtaining loans, loss          targets by 2015. To this end, the Ministry of Forests and Wildlife
of retail sales and consumer confidence and decreased advertising               of Cameroon hosted the conference Forest Tenure, Governance
expenditures. Lower production costs and raw material prices were               and Enterprise: New Opportunities for Livelihoods and Wealth
seen to provide relief, but lower freight rates were exacerbating               in Central and West Africa, from 25 to 29 May in Yaounde,
competition. The committee noted that the exceptionally uncertain               Cameroon. The objective of the conference was to catalyse
economic situation calls for a rapid ability to adjust, as well as for          new and wider-ranging actions by governments and civil society
measures to improve productivity and competitiveness. As export                 organizations towards more secure land and forest tenure in the
demand wanes, cost competitiveness becomes increasingly                         region.
important.                                                                        The meeting was organized by FAO, the International Tropical
  The session that focused on the impacts of the financial crisis               Timber Organization (ITTO), the Rights and Resources Initiative
on the forest industry also looked at some ways out of the                      (RRI), the International Union for the Conservation of Nature
crisis, with particular attention to green building and to closer               (IUCN), the Center for International Forestry Research (CIFOR),
integration of biofuels and green chemicals with forest industries.             the World Agroforestry Centre (ICRAF), Intercooperation, the
Increased building with wood and substitution of wood for non-                  Global Alliance of Community Forestry (GACF) and the Central
renewable building materials were perceived as a potential basis                African Forests Commission (COMIFAC). It attracted close to 250
for a renaissance in sawmilling and woodworking industries, for                 participants from all regions.
example, especially in Europe. Some of the leading international                  The conference comprised nine sessions addressing:
forest corporations have announced intentions to integrate biofuel                • current status of tenure and emerging lessons from ongoing
production in pulp mill processes. Biorefinery technologies being                   reform;
pursued include production of biodiesel, bioethanol and heavy                     • tenure reform – experiences and lessons from other countries
fuel oils from forest residual biomass such as bark, stumps and                     (with positive examples from Brazil, China, Guatemala, Mexico,
branches; and synthesis and purification of gas from wood. In                       Mozambique, Nepal, the United Republic of Tanzania);
terms of the more traditional wood energy market, the downturn in                 • the role and perspectives of forest communities in the forest
wood prices bodes well for wood pellet manufacturing.                               reform process;
  Another session addressed the need for industry to work                         • tools and strategies for recognizing and mapping rights;
together to communicate positive messages and reverse public                      • the role of tenure and governance in climate change mitigation
misperceptions about wood and wood industries.                                      and adaptation;
  The committee also reviewed industry-relevant developments                      • experiences with conventional and alternative tenure and wood-
related to forests and climate change, and avenues for                              based enterprises;
engagement of forest industry in ongoing climate change                           • experience with extraction and management of non-wood forest
negotiations.                                                                       products;




                                                                                                                                 Unasylva 233, Vol. 60, 2009
                                                                          59




                                                           fao forestry


     • reforming land tenure – how to ensure effective reforms and             Yunnan Province (southwestern China) to promote CBFiM in
       implementation;                                                         China and elsewhere in Asia, via the use of local and global
     • next steps to accelerate reforms in Central and West Africa.            examples. In Asia the frequency and intensity of fires, and the
    The conference concluded with agreement on a time-bound set                severity of pollution problems from the associated smoke and
  of activities for implementation by governments and social actors,           haze, has increased over the past 30 years. In China, forest fires
  the “Objective 2015”. These activities include:                              are largest and most numerous in remote, highly forested regions
     • prioritizing forest tenure reform as a national development             of Heilongjiang, Inner Mongolia, Yunnan, Guangxi and Guizhou,
       issue in all African countries by 2015;                                 where climates are extreme (including extreme wind events) and
     • reversing the assumption that all lands are State owned;                both access and fire prevention and control facilities are limited.
     • recognizing the human rights of all ethnic and minority peoples         At the workshop, forest fire scientists, managers, policy-makers
       by 2015, including their rights to land and access to resources;        and non-governmental organizations from Northeast Asia sought
     • empowering communities to claim their rights by expanding               viable fire management options for their particular socio-cultural,
       participatory mapping of community land rights before                   environmental and geographic conditions.
       development of land use plans and zoning;                                  CBFiM is based on the following principles, which have been
     • setting ambitious targets for community ownership of forest             developed since 2001 by Project FireFight South East Asia
       lands (e.g. a percentage to be reached by 2015) through                 (an initiative of the World Wide Fund for Nature [WWF] and
       multistakeholder processes, and developing strategies and               the International Union for the Conservation of Nature [IUCN])
       plans to achieve those targets;                                         together with FAO, the Global Fire Monitoring Center and
     • addressing constraints to community and small-scale                     German, Thai and United States government agencies; the
       enterprises, markets and trade, to aim towards at least                 principles have been tested in tropical, temperate and savannah
       quadrupling community incomes from all forest operations by             environments. Fire management:
       2015;                                                                       • should focus on people, not on equipment or legal
     • strengthening political will and action to advance forest tenure              constructs;
       reforms;                                                                    • requires a sense of ownership, without which people’s
     • setting up mechanisms for monitoring and following up on the                  motivation to participate will be eroded;
       Objective 2015.                                                             • can be adapted to use local and indigenous knowledge,
    Further information about the conference is available at:                        taking caution to ensure that the adaptations can fit within a
  www.itto.int/en/workshop_detail/id=44270000                                        rapidly evolving environment;
                                                                                   • benefits from communities’ tendency to focus on prevention
                                                                                     over suppression;
  Moving ahead with community-based fire                                           • draws on the strengths of and balance between community
  management                                                                         members and government agencies.
  Every year fires affect an estimated 350 million hectares of land,              For more information about CBFiM, see: www.fao.org/forestry/
  with damage to property, natural resources and livelihoods, and              firemanagement
  frequently with loss of life. Uncontrolled vegetation fires also                Publications on CBFiM can be viewed at: www.fao.org/
  contribute to global warming, air pollution, desertification and             forestry/35893
  loss of biodiversity. Developing countries are often the most
  susceptible.
    Fire management cannot be fully shouldered by government                   Ken King, 1929–2008
  agencies or communities alone. FAO therefore promotes                        FAO has recently learned of the death of Ken King, Assistant
  community-based fire management (CBFiM) – an approach in                     Director-General of the FAO Forestry Department from 1974 to
  which a local community (with or without the collaboration of                1978, on 30 July 2008 in Georgetown, Guyana.
  other stakeholders) has substantial involvement in deciding the                Kenneth Fitzgerald Stanislaus King was born in Georgetown,
  objectives and practices involved in preventing, controlling or              Guyana (then British Guiana) on 22 August 1929. After completing
  using fires. CBFiM can be especially effective in those places               his secondary education he began his career as a Forestry Officer
  where ignition by humans is the primary cause of wildfires. Over             in the Guyana Forest Department, but resigned to continue his
  the past five years, FAO and The Nature Conservancy (TNC)                    education in the United Kingdom. He gained a forestry degree
  have been jointly preparing and presenting training programmes               at Bangor University, Wales, and a law degree from London
  and workshops to disseminate the approach.                                   University, both in the same year (1956). In 1963 he obtained
    In March 2009, for example, FAO, TNC and the China State                   a doctoral degree in forestry economics from the University of
  Forestry Administration held a workshop in Xishungbanna,                     Oxford with a thesis on land use in the tropics.




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                                                        fao forestry


  King joined FAO in 1964, working first on a project in Nigeria            needs of rural populations, materially strengthening the community
to help establish a forestry faculty at the University of Ibadan. In        forestry component of its work.
1968 he became Chief of the Development Planning Section in                   In 1978, he left FAO to become the first Director-General of the
the Forestry and Forest Products Division at FAO headquarters in            International Council for Research in Agroforestry (ICRAF) (now
Rome. In 1970, he became Forestry and Land Use Officer in the               the World Agroforestry Centre) in Nairobi, Kenya. This position
FAO/World Bank Cooperative Programme.In 1972, King returned                 was followed by an appointment as United Nations Development
to Guyana to serve in his country’s government, as Vice-Chairman            Programme (UNDP) Regional Representative in Addis Ababa, Ethiopia.
of the Guyana State Corporation (GUYSTAC), an umbrella                        In 1991, he returned to Guyana, occupying in the years that
organization overseeing public enterprises, and then as Minister of         followed a number of ministerial and political leadership positions.
Economic Development.                                                       From 2002 to 2004, he was his country’s Ambassador to Belgium
  However, frustrated by difficulties in implementing the national          and Permanent Representative to the European Union. But while
development plan, whose preparation he had led, King returned               in Belgium his health deteriorated; he resigned his post to undergo
to FAO in 1974, this time as Assistant Director-General in charge           treatment in Saint Lucia.
of the Forestry Department. During his tenure in this position, the           Ken King’s wife Joyce had died in 2005. They are survived by a
department added programmes oriented towards meeting the                    son and a daughter.




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                                                                         world of forestry


                        UNFF continues search for solution on financing for                        sustainable forest management. Participants divided into two
                        sustainable forest management                                              working groups to deliberate on these and other issues.
                        Over 600 participants attended the eighth session of the United              Working Group 1 focused on forests in a changing environment,
                        Nations Forum on Forests (UNFF-8), held from 20 April to 1 May             regional inputs and enhanced cooperation. Substantial time
                        2009 at United Nations headquarters in New York, United States of          was devoted to forests and climate change, in particular the
                        America. Seeking agreement on how to finance the implementation            relationship between measures for reducing emissions from
                        of the Non-legally Binding Instrument on All Types of Forests              deforestation and forest degradation (REDD) and sustainable
                        (NLBI), established at UNFF-7, was the main task at hand.                  forest management. Many delegates stressed the need for
                          UNFF was established in 2000 as a subsidiary body of the                 adequate consideration of sustainable forest management in
                        United Nations Economic and Social Council (ECOSOC), with the              REDD policies, including ensuring that policies for climate change
                        main objective of promoting the management, conservation and               mitigation and forest financing consider the multiple values of
                        sustainable development of all types of forests by:                        forests and the whole range of forest products. Some delegates
                           • facilitating implementation of forest-related agreements and          expressed the hope that UNFF could provide an opportunity to
                             fostering a common understanding on sustainable forest                give a holistic perspective on forests and climate change to the
                             management;                                                           outside world, including the climate change convention.
                           • providing for continued policy development and dialogue                 Working Group 2 covered means of implementation, progress
                             among governments, international organizations, and major             towards sustainable forest management and forest law
                             groups, in a holistic, comprehensive and integrated manner;           enforcement and governance (FLEG) as a cross-cutting issue.
                           • enhancing cooperation and policy and programme                        On the subject of financing, however, delegates were unable
                             coordination on forest-related issues;                                to reach agreement. The developing countries favoured the
                           • monitoring, assessing and reporting on progress towards,              establishment of a global forest fund, while donor countries
                             and strengthening political commitment for, sustainable forest        would prefer a facilitative process to enhance access to current
                             management.                                                           funding and create enabling conditions for investment. Delegates
                          UNFF-8 had two main themes. Under the theme “forests in a                eventually agreed on the establishment of an Ad Hoc Expert
                        changing environment”, delegates addressed issues of forests               Group to consider the establishment of a voluntary global forest
                        and climate change, forest loss and degradation, desertification           fund. This group will submit a preliminary report to UNFF-9 and
                        and biodiversity conservation. The second theme, “means of                 final recommendations to UNFF-10. The resolution adopted after a
                        implementation for sustainable forest management” embraced                 final all-night session contains bracketed text for negotiation at the
                        transfer of technology, capacity building and financing for                forum’s next session.
                                                                                                     During the meeting, delegates also participated in two
                                                                                                   multistakeholder dialogues which addressed the participation of
                                                                                                   women, youth and indigenous people in decision-making. Panel
                                                                                                   discussions were held on forests and biodiversity, climate change
                                                                                                   and desertification, the financial crisis and regional perspectives
                                                                                                   on forests in a changing environment.
                                                                                                     The ninth session of UNFF will be held in New York from
                                                                                                   24 January to 4 February 2011 with the theme “People, livelihoods
                                                                                                   and poverty eradication”.
                                                                                                     More information, documents and the report of the session can
                                                                                                   be viewed at: www.un.org/esa/forests/index.html



                                                                                                   A forest road to Copenhagen
                                                                                                   Climate change negotiators have been meeting throughout 2009
                                                                                                   in the run-up to the final negotiation of a post-2012 agreement to
FAO/FO-6013/W. PATHARAKOMOL




                                                                                                   follow the Kyoto Protocol – due to be concluded in Copenhagen,
                                                                                                   Denmark, from 7 to 18 December 2009, at the fifteenth session
                                                                                                   of the Conference of the Parties (COP-15) to the United Nations
                                                                                                   Framework Convention on Climate Change (UNFCCC).
                                                                                                     Deliberations on the text for agreement at Copenhagen are being
                                                                                                   carried out by two working groups:




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                                                   world of forestry


   • the Ad Hoc Working Group on Long-term Cooperative Action                       support. Instead of assuming loss of all carbon from trees at
      under the Convention (AWG-LCA), which is responsible for                      the time of their harvesting, carbon emissions from harvested
      the Bali Action Plan discussions on UNFCCC’s total long-term                  wood products would be discounted over time to reflect
      emission reduction targets and actions on mitigation;                         carbon stored in long-lived wood products (construction
   • the Ad Hoc Working Group on Further Commitments for                            wood, furniture, etc.). Some environmental groups object to
      Annex I Parties under the Kyoto Protocol (AWG-KP).                            this, on the grounds that it would lead to increased use of
  The ad hoc working groups convened from 29 March to                               wood products and thence to deforestation – objections that
8 April 2009 in Bonn, Germany; again in Bonn from 1 to 12 June; and                 erroneously equate sustainable harvesting with deforestation,
in informal intersessional consultations from 10 to 14 August. Further              and neglect the carbon mitigation benefits of substituting wood
meetings of the working groups will take place 1 to 12 September in                 for other more energy-intensive materials such as concrete
Bangkok, Thailand, and 2 to 6 November in Barcelona, Spain.                         or steel. Higher demand for harvested wood products could
  Many of the discussions are of interest to the forest sector,                     also provide incentives for more sustainable management of
particularly negotiation (under AWG-LCA) of a mechanism for                         forests in developed countries.
reducing emissions from deforestation and forest degradation                     •	 Accounting for forest management. Under the Kyoto
(REDD). Major issues to be resolved include the form of a financial                 Protocol, Annex I countries can choose to include carbon
incentive mechanism (fund, market-based or mixed) and whether                       stock changes due to forest management in their national
REDD could be used for generating carbon offsets.                                   greenhouse gas accounting. Alternative accounting methods
  The scope of REDD activities is also under discussion. There                      are being proposed for those that select this option, which
appears to be widespread support for a “REDD-Plus” instrument                       could result in greater incentives for managing forest lands
(covering REDD plus conservation, sustainable management of                         sustainably.
forests and enhancement of forest stocks) and some support for                   •	 Land-based accounting. Some parties propose that Annex I
REDD-Plus-Plus (which would also address activities outside                         countries should include greenhouse gas emissions and
the forest sector that drive deforestation and forest degradation).                 removals from all land-based activities rather than only select
Support for these expanded proposals is consistent with the call                    ones. Related issues under discussion concern natural
by the Collaborative Partnership on Forests (CPF) for a more                        disturbances and non-permanence, as well as greenhouse
comprehensive approach to REDD.                                                     gas accounting in wetlands.
  Some environmental groups recommend excluding production                      Discussions on adaptation have remained relatively general,
forests from REDD, claiming that REDD funds should not be used                laying out principles for action. There is agreement that adaptation
to subsidize industrial logging operations. Negotiators recognize,            efforts should reflect country priorities; that priority should be given
however, that excluding production forests from a REDD                        to the most vulnerable countries and the most vulnerable people
instrument could actually undercut efforts to reduce deforestation            within countries; that funding should be sufficient, additional to
and forest degradation, since a REDD-Plus mechanism would                     official development assistance (ODA) and equitably distributed;
require carbon accounting in all forests and thus provide an                  and that implementation and impact of adaptation programmes
incentive for their improved management. Such a mechanism                     should be monitored, reported and verified.
would also help avoid leakage (i.e. loss of carbon from one site
because of mitigation actions taken elsewhere).
  Support for a phased approach to REDD (from readiness to                    World’s three largest tropical forest regions to
early actions to full implementation with measuring, reporting and            collaborate on biodiversity conservation
verification) and for a mix of market and non-market financing                At a meeting in Montreal, Canada, from 8 to 10 July 2009, the
appears to be emerging. Many parties have emphasized the need                 intergovernmental regional organizations representing the world’s
to ensure that REDD activities respect the rights of indigenous               three largest tropical forest regions – the Amazon Cooperation
people and forest-based communities and safeguard biodiversity.               Treaty Organization (ACTO), the Association of South-East Asian
  Possible expansion of the scope of the Clean Development                    Nations (ASEAN) and the Central Africa Forests Commission
Mechanism, to include agriculture and other forest activities in              (COMIFAC) – agreed to work more closely in the conservation and
addition to afforestation and reforestation, has also been receiving          sustainable management of tropical forests and biodiversity.
increased attention in recent months.                                           Amazonia, Southeast Asia and Central Africa together contain
  Several issues under discussion in AWG-KP would have                        more than 80 percent of the world’s tropical forests and an
implications for the forestry sector in Annex I (developed)                   estimated two-thirds of all terrestrial species. To promote
countries:                                                                    sharing of the regions’ different experiences and approaches in
   •	 Harvested wood products. Inclusion of harvested wood                    conservation of their rich forest biodiversity, the Secretariat of
      products in carbon accounting by Annex I Parties is gaining             the Convention on Biological Diversity (CBD), in collaboration




                                                                                                                                   Unasylva 233, Vol. 60, 2009
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                                                   world of forestry


  with Germany, facilitated a meeting among the three regional               knowledge, strategies and experiences. They agreed to continue
  organizations on South-South cooperation and sustainable forest            developing their cooperation through participation in major events,
  management, with a focus on forest biodiversity. In addition               exchange of experts and technical and managerial expertise,
  to experts from the three organizations, participants included             coordination of programmes and projects, and sharing and
  international partners of CBD such as the Secretariat of the United        learning from successful initiatives.
  Nations Forum on Forests, representatives of Parties to CBD and              The meeting was held in the context of the implementation of the
  resource persons.                                                          Bonn mandate on South-South Cooperation. The CBD Secretariat
    Sustainable forest management is a key objective of all three            convened a similar meeting in 2006.
  of these regional organizations. The participants exchanged




Unasylva 233, Vol. 60, 2009
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                                                                                  books


Guidance for drafting forest fire legislation                                                 member countries on how to improve their forest legislation. It
  Forest fires and the law – guide for national drafters based on the Fire Management         identifies emerging trends and singles out best practices and
  Voluntary Guidelines. E. Morgera & M.T. Cirelli. 2009. FAO Legislative Study No. 99.        innovative legal solutions, taking as examples national and
  Rome, FAO. ISBN 978-92-5-106151-0.                                                          subnational legislation in a representative group of countries from
Forest fires can threaten livelihoods, ecosystems and landscapes.                             different regions, having different ecosystems and different legal
Fire management is the discipline of using fire to achieve land-                              traditions.
management and land-use objectives, while safeguarding life,                                    The study concludes with key recommendations designed to
property and resources such as forests and other vegetation                                   help drafters of national legislation ensure that legal measures
in rural areas. It encompasses prevention, preparedness, early                                on forest fires are supportive of a holistic approach to fire
warning, detection and mobilization, suppression and restoration                              management.
(including research and technology transfer). It entails the                                    The publication is also available online at: www.fao.org/
appropriate use of natural or human-caused fire in maintaining                                docrep/011/i0488e/i0488e00.htm
ecological values and the integrity of certain ecosystems, and the
use of fire to reduce the accumulation of natural fuel and residues
from commercial and non-commercial activities.                                                Bees – not only for honey
   Starting in 2003, FAO coordinated a multistakeholder process                                 Bees and their role in forest livelihoods – a guide to the services provided by bees and

to develop Fire Management Voluntary Guidelines as part of a                                    the sustainable harvesting, processing and marketing of their products. N. Bradbear.

global strategy for international cooperation in fire management.                               2009. Non-wood Forest Products No. 19. Rome, FAO. ISBN 978-92-5-106276-0.

The guidelines set out non-legally binding principles and                                     Bees are a fantastic resource: they are essential for sustaining the
internationally accepted strategic actions to address the                                     environment because they pollinate flowering plants; they sustain
cultural, social, environmental and economic dimensions of                                    agriculture by pollinating crops; and they provide honey and other
fire management at all levels. They can serve as a checklist                                  products that sustain the livelihoods of forest-dependent people
to strengthen and implement policies, legal and regulatory                                    in almost every country on earth. In many parts of the world,
frameworks, plans and procedures, and provide a basis for                                     significant volumes of honey are still obtained by plundering wild
their development where these do not exist. Principle 8 of the                                colonies of bees, while elsewhere beekeeping is practised as a
voluntary guidelines clearly recognizes the role of legislation in                            highly developed skill.
supporting and institutionalizing forest fire management. Indeed                                This book provides insight into the many ways in which bees and
fire prevention and suppression are often hampered by unclear                                 beekeeping contribute to people’s livelihoods, and considers how
lines of institutional responsibilities and by conflicting policies and                       to strengthen this contribution. It provides basic information on
legislation.                                                                                  managing wild bees and on the use of their products. Its aim is to
   Using the Fire Management Voluntary Guidelines as a                                        promote more sustainable beekeeping practices which will better
foundation, the present publication systematically identifies the                             sustain forest-dependent livelihoods in the developing world.
elements of a coherent national legal framework on forest fires,                                After describing the main bee species and introducing their
capitalizing on the experience gained by FAO in advising                                      importance in nature, the publication outlines the importance of




                                                                                                                                                                Unasylva 233, Vol. 60, 2009
                                                                                     65




                                                                                 books


  apiculture for rural livelihoods and describes considerations in                           The publication scrutinizes some of the key drivers behind forest
  honey hunting and beekeeping. It reviews the impact of beekeeping                       loss and reviews some of the best practices for sustainable forest
  on management and conservation of forests and the value of bees                         management, including participatory management and economic
  for crop pollination.                                                                   incentives. It reviews the importance of forests for people’s
    Next it turns to the products from bees – honey, beeswax,                             livelihoods, examining topics such as forests and food security,
  pollen, propolis, royal jelly and others – considered at both                           forests and conflict, and forests and indigenous people.
  subsistence and commercial levels. It examines their production,                           The book also analyses the role of forests with regard to today’s
  value addition, trade and marketing, as well as constraints to their                    most pressing environmental issues, including climate change,
  development.                                                                            loss of biodiversity, land-use pressure, trade, air pollution, energy
    Particular attention is given to further development of the                           and biofuels. It reviews the main environmental functions provided
  potential for managing wild bee species in developing countries.                        by forests in support of human well-being, including regulation of
    The text is supplemented with case studies from around the                            the hydrological cycle and microclimate.
  world, 12 pages of colour plates and a glossary of apiculture terms.                       Finally Vital forest graphics highlights legal and economic tools
    The publication is available online at: www.fao.org/docrep/012/                       that have been implemented to help conserve the forests and
  i0842e/i0842e00.htm                                                                     secure the livelihoods of forest-dependent communities.
                                                                                             This book is of general interest and will be especially useful
                                                                                          to those seeking graphic evidence for key forest concepts. It is
  Graphic overview of forest issues                                                       available electronically at: www.grida.no/_res/site/file/publications/
      Vital forest graphics. 2009. Nairobi, Kenya, UNEP; Rome, FAO; New York, USA,        vital_forest_graphics.pdf
     UNFF. ISBN 978-92-807-2903-0 (UNEP); 978-92-5-106264-7 (FAO).

  The United Nations Environment Programme (UNEP) Vital
  Graphics series presents critical environmental issues in a simple                      Adaptation panel’s assessment
  and immediate way through the use of extensive graphics. To help                          Adaptation of forests and people to climate change – a global assessment report.

  communicate the value of forests to policy-makers and the wider                           R. Seppälä, A. Buck & P. Katila, eds. 2009. IUFRO World Series Vol. 22. Helsinki,

  public, UNEP, FAO and the United Nations Forum on Forests                                 Finland, IUFRO. ISBN 978-3-901347-80-1.

  (UNFF) joined efforts to produce the present volume in the series,                      The Global Forest Expert Panels (GFEP) initiative of the
  which analyses, synthesizes and illustrates two dozen topical                           Collaborative Partnership on Forests is a new mechanism for
  forest issues, mostly presented as two-page spreads.                                    providing objective and independent scientific assessments of
    Vital forest graphics first sets the stage by looking at what                         key forest-related issues to support international processes and
  defines a forest. It provides an overview of global trends in forest                    decision-making at the global level. It is led and coordinated by the
  cover and challenges in forest conservation and management,                             International Union of Forest Research Organizations (IUFRO).
  then focusing in on the world’s four largest forest ecosystems: the                     Adaptation of forests and people to climate change is its first
  tropical forests of the Amazon, the Congo Basin and Southeast                           product, prepared by an Expert Panel on Adaptation of Forests
  Asia, and the boreal forests.                                                           to Climate Change comprising 35 scientists and experts from




Unasylva 233, Vol. 60, 2009
                                                                                   66




                                                                                  books


different forest-related disciplines and different parts of the
world.
  The publication is divided into two main parts. The first analyses
past and future impacts and vulnerabilities, both environmental
and socio-economic. The second assesses adaptation options; it
includes a chapter on current adaptation measures and policies,
and another on management for adaptation.
  The assessment notes that climate change over the past half-
century has already affected forest ecosystems and could cause
them to be lost entirely if carbon emissions are not reduced
substantially. In a vicious circle, the loss of forests releases
great quantities of carbon to the atmosphere, causing further
climate change. The publication notes that climate change could
increase the supply of timber in some regions, but elsewhere its
negative impacts on forest goods and services will have social and
economic consequences for forest-dependent people, especially
those living in poverty.
  The authors emphasize that sustainable forest management is                           book. This revised and expanded edition of the 1996 original
essential for reducing the vulnerability of forests and people to                       covers in 36 chapters and about 1 500 pages a large cross-section
climate change. Since there is no universally applicable measure                        of subjects and disciplines of great use to the modern forester.
for adapting forests to climate change, forest managers must                            Although written for the Canadian forestry context, and more
have sufficient flexibility to deploy the adaptation measures most                      precisely for Quebec, it also contains many sections that will be of
appropriate for their local situations. Secure land tenure and forest                   interest to an international audience of forestry professionals, such
user rights and sufficient financial incentives are important. Finally,                 as excellent chapters on forest biometeorology and hydrology,
the authors stress that unmitigated climate change could exceed the                     a significant ensemble of chapters on different aspects of forest
adaptive capacity of many forests during the course of the present                      measurement and monitoring, and many texts of interest on
century. Large reductions in greenhouse gas emissions from fossil                       technical aspects of forest harvesting. The last section on wood
fuels and deforestation are therefore needed to ensure that forests                     technology starts with a chapter on the management of the value
retain their capacity to mitigate and adapt to climate change.                          chain, an industrial management principle that clearly transcends
  There are still major gaps in knowledge about the impacts of                          national boundaries.
climate change on forests and people and about how adaptation                             This massive storehouse of information will be useful as a
actions can best be tailored to local conditions. This book provides                    teaching tool and a reference work, and is a worthwhile addition to
a solid basis for discussion and further research, thus contributing                    a forester’s library. It is available only in French.
to the development of effective adaptation strategies.
  The assessment also forms the basis of a policy brief entitled
Making forests fit for climate change – a global view of climate-                       How to reduce the impact of logging on biodiversity
change impacts on forests and people and options for adaptation,                          ITTO/IUCN guidelines for the conservation and sustainable use of biodiversity in

prepared especially for policy- and decision-makers. Both                                 tropical timber production forests. 2009. ITTO Policy Development Series No. 17.

publications are available at: www.iufro.org/science/gfep                                 Yokohama, Japan, ITTO & IUCN. ISBN 4-902045-41-9.
                                                                                        Natural tropical forests are enormously important for the
                                                                                        conservation of biodiversity, containing perhaps 80 percent
A compendium of principles and knowledge in                                             or more of the world’s terrestrial species. This publication is
forestry                                                                                concerned with the 90 percent of tropical forests that are outside
  Manuel de foresterie – nouvelle édition entièrement revue et augmentée. 2009.         protected areas and may be used for the cyclical extraction of
  Quebec, Canada, Éditions MultiMondes. ISBN 978-2-89544-138-0.                         timber and other products. It sets out the specific actions that
The forestry profession covers a large variety of disciplines.                          policy-makers, forest managers and other stakeholders should
Today’s foresters must master a more diversified field of                               take to prevent logging in tropical forests from posing a threat to
knowledge and deal with a greater breadth of issues than their                          biodiversity.
predecessors, traditionally concerned for the most part with the                          The International Tropical Timber Council first adopted guidelines
tending and harvesting of forests.                                                      on conserving biological diversity in tropical production forests
  The Manuel de foresterie is a unique – and uniquely large –                           in 1993. This updated version, produced through a consultative




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                                                                      67




                                                              books


                                                                           developments in certification, land rights and benefit sharing,
                                                                           payment for ecosystem services, forest law and governance, trade
                                                                           liberalization and the sourcing of wood from planted forests. The
                                                                           physical environment has also undergone change, for example
                                                                           from changing climate. One of the most important messages in the
                                                                           guidelines is that forest managers must be capable of monitoring
                                                                           changes in both biodiversity and society’s requirements for
                                                                           biodiversity and of adapting their management accordingly.
                                                                              Part I provides background and introduces key concepts. The
                                                                           heart of the book is Part II, which gives 11 principles, 46 guidelines
                                                                           and numerous related priority actions for biodiversity conservation,
                                                                           consistent with the principles of sustainable forest management.
                                                                           Part III gives advice on implementing the guidelines, addressing
                                                                           for example training and incentives. A glossary defines key terms.
                                                                           Annexes include specific cases from Central Africa, Cameroon,
                                                                           Indonesia, Guyana, Brazil, the Philippines, Malaysia and Ghana.
                                                                              The revised guidelines were drafted by a core team of
  process, takes account of the great changes that have taken place        biodiversity specialists and then evaluated in the field among
  since then in public awareness, practice and policy related to           timber companies, forest agencies and local communities in four
  biodiversity.                                                            producer countries. An expert panel met in 2007 to further revise
    These changes include developments in scientific knowledge             the guidelines in light of the field evaluation.
  of conservation biology; the adoption of large-scale, landscape             This publication will provide forest policy-makers, owners and
  approaches to conservation; better technologies for observing            managers with excellent guidance on how best to reduce their
  changes in forest systems and greater knowledge of species               impacts on biodiversity in tropical timber production forests. The
  distribution and ecology. They include international policy              application of these guidelines will help countries implement their
  developments such as the Convention on Biological Diversity              obligations under CBD.
  (CBD) Expanded Programme of Work on Forest Biological                       The publication is available online at: www.itto.int/policypapers_
  Diversity and CBD’s adoption of the ecosystem approach; and              guidelines




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