The Rainforests of Cameroon - PROFOR

Ten Years of Forest Sector Reform 125FindingSuggestionEncourage certificationSome companies operating in Cameroonhave already been certified as practicingsustainable forest management, but theyremain in the minority. Certification carriessignificant additional costs and risks (arisingfrom third-party review and public disclosureof information). Given the advantages ofcertification both nationally and globally, fiscalincentives should be provided for companiesto pursue certification.Grant a reduced area tax to firms thatexceed local requirements and obtainindependent certification of theirforest concession. Government mustdecide which certification systems toendorse and the duration of tax rebatesfor certified firms. This measure wouldstrongly increase certification, whichwill accelerate the implementation ofmanagement plans (a condition forcertification).Add flexibility to accessing forest resourcesThe Forest Law permits each annualharvestable area to remain open for threeyears. This practice allows operators to returnto harvest species that had no market at thetime of the initial harvest, and it allows themto delay timber sales when prices are low.Permit operators to open an annualharvestable area one or two yearsin advance to enable them to takeadvantage of concessions when timberprices are high. This added flexibilitymust be accompanied by measures topreserve the integrity of rules for theharvesting cycle (under which a parcelmust be closed for the duration of thecycle).Suppress administrative dysfunctionalitiesDysfunctional administrative services increasecosts for industry in the form of informal taxesand fees, abusive financial cautions, excessivedelays in refunding value added taxes paid byexporters, and so forth.Improve governance within theadministrations (specifically Forestsand Finance) to make them moreaccountable to users. Promptly sanctionany abuse of power by a civil servant.Enhance transparency through suchactions as making administrativedocuments freely available online.Source: CIRAD 2006.a. Given that operators might be reluctant to disclose their prices to competitors, it is important to work with aprice index. The International Tropical Timber Organization provides such information twice a month for a dozenAfrican species (logs and sawn wood) and could be used as a starting point.Delivered by The World Bank e-library to:The World BankIP : 192.86.100.34Mon, 09 Nov 2009 17:06:18(c) The International Bank for Reconstruction and Development / The World Bank