Contribution of Forestry to Poverty Alleviation - APFNet

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Forestry being a renewable resource sector should have a strategy for poverty alleviation in rural areas. The strategic direction for the PNG Vision 2050 is to develop its renewable resources, including forestry, to enable its economic growth by 2050. It must be broad-based, ensuring that household incomes will be much higher and improve the overall HDI. The PNGFIA’s policy envisions financial autonomy that can be attained through integrating the vision’s strategic direction with poverty alleviation. The various levies collected from forestry projects should be incorporated into this strategy to give more impetus to the forestry sector contribution to poverty alleviation in rural areas. It seems that huge amounts of money accumulated through trust accounts of these levies were not effectively used to address the plight of forest owners and rural communities, and were instead diverted. Review of Financial Benefits by Forest Owners from Forest Resource Development Forest resources in PNG are customary-owned but customary owners get a mere 3 to 5% of the total monetary value of the resources through timber royalties while the State gets up to 10% of the total value, and the remainder portion goes to the developer. The arguments are that resource owners get more benefits beside timber royalties in terms of infrastructure developments and other services brought into their area by the project. But in reality, infrastructure developments and other services rendered through the project are part of government’s responsibilities, and thus accrue to government’s total benefits and not necessarily a direct share of the forest owners. If government is serious about its poverty reduction strategy as incorporated in its Vision 2050, then one effective strategy is to increase the forest owners’ share of financial benefits from the forestry project development to improve household incomes. Timber royalty currently averages US$ 4 per m3, a slow increase from the rate 30 years ago of US$ 1.40. The basis for calculating timber royalties should be reviewed regularly, taking into account the real market values of timber and other opportunity costs. The various levies and the methods of payments need immediate review. These levies should be paid directly to forest owners, particularly the agriculture and reforestation levies. Additional levies should be charged on the use of forests and foregone opportunities as a result of logging. Levies that are used for infrastructure development and social facilities like education and health need critical review. Developers easily avoid their agreed commitments by paying these levies to government, which then finds excuses not to utilize the levies due to lack of capacity. Forest owners, meanwhile, lack the capability to access these funds, resulting in huge amounts of funds sitting in trust accounts and squandered elsewhere. Infrastructure and social levies should be paid directly to the appropriate agencies with stringent conditions to undertake the activities with measurable outputs and indicators within the timeframe. Improving the Financial Management Capability of Forest Owners Forest owners and landowner company officials should be given basic financial management and accountability procedures to manage the funds received from timber royalties and timber premiums for landowner companies. Forest owners and company officials should be educated on the purposes of the different levies collected and the methods to access these funds, including writing proposals to access these funds. This will require strong institutional linkages between PNGFIA and other appropriate agencies, including the district offices, local level governments, and ward councilors. Poverty alleviation will have to come from an internal commitment by individuals, families and the communities at large, and it has to start with money management. Forest owners have to be given opportunities to understand the value of money. Revival of PNGFIA’s Extension Services and Financial Autonomy There is an urgent need for PNGFIA to revive its extension services abandoned years ago as part of past policy reforms in the sector. Senior forestry officers within PNGFIA who were once involved in the 264
extension services works expressed their strong desires that this program be revived as this can provide more assistance to forest owners. To give impetus to forestry extension services in the country, there is also a need to give PNGFIA financial autonomy status. Financial autonomy for PNGFA has been an agenda but has never progressed beyond discussion. The scope of work in the public forestry sector is enormous given the geographical factors of the country and the current annual operational budgets for PNGFIA are insufficient for additional activities. Therefore it is important that PNGFIA be given financial autonomy so that revenues generated from forest resources are put back into good use to assist forest owners and rural communities. References Amos, G. and G. Gowae (2008). PNG country presentation – Challenges and expectations in linking sustainable forest management and climate change. ITTO International Experts Meeting on Addressing Climate Change through Sustainable Management of Tropical Forests, 30 April – 2nd May 2008, Yokohama, Japan. Asian Development Bank (2011). Papua New Guinea to grow 8.5%. In ADB Report. Port Moresby, PNG. Retrieved from www.adb.org/Document/News/Pacific/pac-201102.asp Australian Aid (2009). www.ausaid.gov.au/country/png/png_intro.cfm Barnett, T (1990). The Barnett Report. A summary of the Report of the Commission of Inquiry into Aspects of the Timber Industry in Papua New Guinea. The Asia-Pacific Action Group, Hobart Tasmania, Australia. Bourke, R.M and T. Harwood (2009). Food and agriculture in Papua New Guinea. R. Michael Bourke and Tracy Harwood (Eds.) Australia: Australian National University Press. Filer, C. (2010). The new land grab in Papua New Guinea. Paper presented at the International Conference on Global Land Grabbing. Land Deals Politics Initiative (LDPI), Future Agricultures Consortium, Institute of Development Studies. Great Britain, U.K.: University of Sussex. Filer, C. with N. Sekhran (1998). Loggers, donors and resource owners. Policy that works for forest and people No 2. Papua New Guinea Country Study. James Mayers (Ed.). IIED, UK and NRI, PNG. Food and Agriculture Organization (2009). Papua New Guinea forestry outlook study. Working Paper No. APFSOS IIWP/2009/19. Food and Agriculture Organization (2010). Global forest resource assessment. Papua New Guinea country report. FRA2010/161. Genia, J. (1991). Foreword. National Forest Policy. Hohola, PNG: Ministry of Forest. Gowae, G & Hasagama, M. (2003). Training needs analysis for timber marketing handbook. Timber marketing component, PNG eco-forestry programme. Lae, PNG. Hayes, A. (2010). Eco-tourism the way forward for PNG. Islands Business, Suva, Fiji. ITS Global (2006). The economic importance of the forestry industry to Papua New Guinea. Report for Rimbunan Hijau (PNG) Group. Medium Term Development Plan (MTDP) 2011-2015 (2010). Waigani, NCD. PNG: Department of National Planning and Monitoring. Medium Term Development Strategies (MTDS) 2005-2010 (2005). Port Moresby, PNG: Department of National Planning and Monitoring. 265
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Making Forestry Work for the Poor A
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© FAO ISBN The designations employ
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Contents Foreword .................
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Figures Table VII.6. Characteristic
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Acronyms and Abbreviations AAC Annu
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MDG Millennium Development Goal MGN
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Acknowledgements This publication o
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Introduction Overview Peter Walpole
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Table 1: Status of Poverty Reductio
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Although poverty alleviation is inc
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Past efforts to address poverty thr
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Lack of Support for NWFP Developmen
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to absorb the large number of peopl
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Smallholder tree farming Engaging i
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cultures is a major challenge. Cult
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2. Capacity building for individual
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Poffenberger, M. and Smith-Hanssen,
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Life in an unforgiving environment
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Forest Policy and Its Objectives Ab
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to meet the expenses during communi
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Chirata is an important medicinal p
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From 2003-04 until 2004-05, revenue
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Payment for Environmental Services
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The auction yard for pipla at Gelep
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Recommendations Pipla collection is
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whose incomes are at the lower end.
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Figure I.3. Net income per distilla
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domestic demand of traditional medi
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auction chirata. However, due to In
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Product improvement • Improvement
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Policy and Planning Division (PPD).
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• reforestation and protection of
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Sector Development Plan 2001-2010,
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Forest Policy The RGC endeavors to
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eserved forests and ensure their ap
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It is generally accepted that the e
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contributions to rural livelihoods,
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Case Study 1: Community forest in P
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she can buy a total of two to three
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Members of the Trapang Kbal Khmoach
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Capacity building for CF members Ed
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After the integration of the Khmer
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Livelihood situation after concessi
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for institutional reforms. Based on
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Meta, B. C. (2010). Community-based
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Table III.1. Summary of past NFI re
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During the Twelfth Five-Year Plan p
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nationwide to contract the collecti
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alleviating rural poverty. Collecti
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areas. All these create pressure on
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Table III.5. List of economic fores
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stations, and others. In addition,
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farmers to increase to over US$ 310
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year and his national special care
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enough capital to invest, leading t
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Introduction IV Assessment of the C
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value of forests reflected in the S
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Poverty Alleviation and Forestry in
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Reduction Strategy papers. Furtherm
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Figure IV.1. Coincidence of forests
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Fodder from the forest provided abo
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landless and marginal landholding h
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70% was exported. It is estimated t
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Table IV.5. Registered projects und
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Case Studies Case Study 1: A Tradit
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our land.” All agree that forests
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The forest around the village was d
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Figure IV.2. Value chain analysis W
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A popular tourist attraction in Ker
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Innovative mechanism for resource g
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Outlook for Forestry and Poverty Al
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Wood demand. Trees from non-forest
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their livelihoods. Resolution of po
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Forest Survey of India. (1999). Sta
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Saxena. (1999). NTFP policy and the
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a resolution to control seasonal fi
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(MoF 2009). A study by the TREES Pr
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is caused by (i) lack of recognitio
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that the development of the Kaliman
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plantations on community lands. How
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as the subsistence, livelihood and
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As of 2010, MoF was able to issue 2
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for HTI projects. The finding under
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do not follow these agreements or a
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Satyawati’s (1991) field research
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Morgan’s investigation (2011) of
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intercropping in at least 0.25-0.5
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Challenges and ways forward In the
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Challenges The target buyers of the
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end or scale down their operations.
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Increasing the Benefits from Large-
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Kayoi, M. et. al. (2006). Poverty a
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World Bank. (2006a). Sustaining eco
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in neighboring countries that incre
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Poverty Situation Despite the signi
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Subsistence Use of Forests and Allo
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allocated for communities to manage
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growth, increased per capita income
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of 311 villages (38%) preparing the
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Figure VI.1. Important household in
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Recently, Lao PDR was selected as o
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in this case study are based on the
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The contribution of NWFPs to the wh
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4% A brief about Ban Xom Figure VI.
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Table VI.6. Villagers’ opinion on
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The purpose of the SEMFOP 1 was to
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In addition, rice production was re
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mostly to reducing rural poverty. I
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• Enhancingexistingmechanismsands
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18, 2009. National Agriculture and
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(Table VII.2). Government-managed f
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to 2006. On the other hand, the hum
Page 230 and 231: The community based forest manageme
Page 232 and 233: for Agricultural Development (IFAD)
Page 234 and 235: grass and fodder production in both
Page 236 and 237: Timber market values vary according
Page 238 and 239: LF area forest Area coverage (ha) N
Page 240 and 241: as tree cover, biodiversity, NWFP,
Page 242 and 243: Operational management The operatio
Page 244 and 245: With regard to timber use, Jaspur C
Page 246 and 247: the primary forest products that co
Page 248 and 249: It is not surprising to note that t
Page 250 and 251: there is a greater chance of progra
Page 252 and 253: from poor and marginalized families
Page 254 and 255: Chand, P. B. and Ghimire, K. (2007)
Page 256 and 257: RECOFTC & FAO. (2009). Is there fut
Page 258 and 259: Shearman et al. (2008) estimated th
Page 260 and 261: markets and basic services like hea
Page 262 and 263: Figure VIII.2. Land and poverty ind
Page 264 and 265: those in the rural areas, to mobili
Page 266 and 267: Past and Current Contribution of Fo
Page 268 and 269: Village industries Village industri
Page 270 and 271: Government continues to be the prim
Page 272 and 273: Carbon payments PNG does not have a
Page 274 and 275: annually and harvest and process an
Page 276 and 277: The project generally improved the
Page 278 and 279: and no follow-up was done to sustai
Page 282 and 283: Melnick, D., McNeely,J., Navaro, Y.
Page 284 and 285: Table IX.1. Philippine forest cover
Page 286 and 287: Livelihood and poverty context in t
Page 288 and 289: and basic services like health and
Page 290 and 291: services and quality of human devel
Page 292 and 293: CBFM is still recognized as a major
Page 294 and 295: In many parts of the country, colle
Page 296 and 297: Small-scale Commercial Forestry Non
Page 298 and 299: Tree plantations from IFMA and smal
Page 300 and 301: CARAGA region in the Philippines is
Page 302 and 303: eduction in the log supply contract
Page 304 and 305: viable spheres of production for sm
Page 306 and 307: 3. Ensure sustainability of raw mat
Page 308 and 309: Garcia, B. Jr. (2005, December 1).
Page 310 and 311: Table X.1. Forest area by region, 1
Page 312 and 313: With the country’s remarkable gai
Page 314 and 315: Table X.3. Government agencies invo
Page 316 and 317: Table X.5. Registration of the poor
Page 318 and 319: poor. What reshaping meant in pract
Page 320 and 321: Community title The solutions to pr
Page 322 and 323: for commercial uses up to 2009 were
Page 324 and 325: demarcated the boundary. At present
Page 326 and 327: was not degraded forest but that it
Page 328 and 329: to the livelihoods of rural people.
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• No tree cutting is allowed in t
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“I have never regretted all the f
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costs. The service providers were i
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1. safeguarding and restoring the n
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is, and their right to participate.
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Linking Reforestation, Poverty Alle
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Office of National Economic and Soc
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mountain people (Ha 2009). Presentl
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However, while overall poverty leve
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one of the best forms of management
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26.2% of the total area of forest l
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Box XI.2. Factors constraining FLA
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average to reach US$ 700-800 millio
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River delta and Mekong River delta
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However, Tran (2009) pointed out th
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The Contribution of Traditional Com
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Fuel wood collected from forests is
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The Contribution of Viet Nam Forest
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are provided both input and output
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the PES fund per year, compared to
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Viet Nam’s forestry development s
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Decree 99/2010/ND-CP on the policy
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Sustainable poverty reduction perio
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