INVESTING IN TREES AND LANDSCAPE ... - PROFOR

To avoid participating in this scenario and being associated with it, scrupulous investors can follow
good governance practices that make their transactions transparent to all concerned stakeholders
(Blas 2010). Multistakeholder landscape planning and management processes can provide the
forum needed to add transparency and legitimacy to land investment processes. Regionally, a need
exists for recognized investment standards to prevent competition among countries for international
investment from leading to greatly weakened protections for rural landholders and resource users.
Governance
The quality of local and national governance is an important factor motivating and enabling
farm, community, and private sector investment; investment requires a reliable, enabling policy
environment; responsible regulation with little corruption; and reliable mechanisms to resolve
conflicts with other stakeholders. Good governance also enables effective public investment in
agriculture, forestry, and natural resource management. Governance quality varies considerably
among countries, as illustrated in figure 2.2.
FIGURE 2.2. INDEX OF AFRICAN GOVERNANCE (SAFETY AND SECURITY, PARTICIPATION AND HUMAN RIGHTS,
SUSTAINABLE ECONOMIC OPPORTUNITY, AND HUMAN DEVELOPMENT)
Source: Rotberg and Gisselquist 2009.
Zones of Conflict
Armed conflict and war that renders significant land areas dangerous or unoccupied puts a significant
damper on investment in agriculture, agroforestry, and forest economic activity. FAO (2005) lists
11 countries in Africa that have experienced armed conflict in forested areas during the preceding
20 years, and many these conflicts persist. In characterizing these regions, the study highlights their
remoteness and inaccessibility, the high value of timber and other natural resources that insurgents
can exploit or tax, the marginalized indigenous and tribal groups with low earning power who often
live there, and their poor integration into national political processes and governance systems—a
Chapter 2. WHERE DO PRIVATE MARKET INCENTIVES CONVERGE WITH LANDSCAPE RESTORATION GOALS?
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