Growing the Wealth of the Poor - World Resources Institute

S C A L I N G U P E C O S Y S T E M E N T E R P R I S Ewithout the approval of the indigenous inhabitants (Larson andRibot 2007:193–196).Even when rural communities seem to gain an advantageunder Honduran law the advantage evaporates under inspection.One provision of Honduran forest law—called the SocialForestry System—grants communities that form an“agroforestry cooperative” the ability to negotiate directly withthe state for a contract to tap forest resources, including timberand pine resin. The intent is to foster small-scale forest enterprises.The forest contracts are not only difficult to negotiate,however, but very restricted in their commercial usefulness. Forexample, agroforestry cooperatives are only permitted to harvesta maximum of 1,000 m 3 of timber annually—an amount sosmall that it is nearly impossible to support a commercial operation.Meanwhile, large-scale timber operators are not subject tosimilar restrictions. It is no coincidence that the forestry sector isdominated by such large-scale producers, who control both thetimber and pine resin markets and who maintain very closerelationships with government bureaucrats, often facilitated bysweetheart deals and bribes (Larson and Ribot 2007:193–196).The situation in Honduras is not unique. Similar obstaclesplague the attempts of local groups to undertake communityforestry or to organize their use of other ecosystem services—fisheries or wildlife, for instance—into commercial enterprises. Arecent study of community forestry enterprises worldwide identifieda long list of discriminatory taxes, licensing systems,royalties, and legal limitations that routinely handicap the abilityof small forest enterprises to compete against more powerfulcommercial interests (Molnar et al. 2007:64–68). Thus localnature-based enterprises—even when they are driven bycommunity demand, as we have described—depend for theirsuccess on overcoming systemic policy obstacles and powerimbalances. Many of these obstacles reflect the fact that theprocess of decentralizing natural resource authority is stillincomplete in most cases.development that small rural enterprises have difficulty undertakingon their own.Clearly, an enabling environment for nature-based enterprisealso requires access to financial services, since lack ofinvestment capital and start-up funds are frequent barriers to theenterprises of the poor. Both the public and the private sectorhave parts to play in making financial services available for bothsmall and medium enterprises. Government also has an importantregulatory role to encourage the private sector to developcredit and insurance products appropriate for a rural clientele.Governments and international financial institutions can inaddition provide funds to undertake basic investments in ecosystemstabilization and restoration, such as watershed restorationto improve water retention and check erosion or aquatic habitatrestoration to revitalize fisheries. These funds are often a catalystfor CBNRM and thus a generator of natural assets that can bethe basis of enterprise.Creating an environment in which nature-based enterprisescan replicate also requires attention to the role of communication.Media engagement in publicizing successes is almost alwaysnecessary to generate interest and local demand for CBNRMand then to build political support among government agenciesand donors for funding the scaling process and for building thecapacity of intermediary support organizations that will act asmidwives for community-driven enterprises. Culturing dynamiccommunity leaders through access to training, mentoring, andsecondments is another essential enabling factor. Many of theseenabling factors are described in greater detail in Chapter 4.Continues on page 24Creating an Enabling Environment for EnterpriseWrestling with the problems of authority and access is a necessaryprecondition for pro-poor enterprise. However, a true“enabling environment” for poor-friendly enterprise will notonly remove obstacles but will lend support in many key areas,such as finance, leadership development, communication, andprogressive public policy. Much of this will originate at thenational level. For example, ensuring that state policies do notunduly restrict the formation or activities of NGOs, producercooperatives, commercial associations, and other civil societyand commercial organizations is essential if these organizationsare to provide effective support to rural enterprises. At the sametime, the state itself has an important role to play in small enterprisedevelopment, whether that be offering technical support fornatural resource management, helping small producers todevelop business plans, or supporting basic market and product17