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Forestry and Land Use Project Summary

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Theme: Small-scale producers and local economies

Project name: Stronger by association

Dates / Duration: July 2004 to June 2006

Geographic Region(s):

International, with main focus on Brazil, India and Uganda and an additional focus on China, Guyana and South Africa

Introduction:

Association lies at the heart of attempts by small and medium enterprises (SMEs) to foster pro-poor growth –fighting scale disadvantages and political marginalisation to capture the benefits of globalization. SMEs based on forest resources can play a major role for sustainable livelihoods in many rural areas where few other alternatives to subsistence and poverty exist. DFID-funded inception research in six countries has demonstrated the magnitude of this contribution to economic opportunity in those countries – yet the potential of SMEs is often unrealised because of a lack of effective joint action.

The objective of this project is to improve and spread understanding of how SME associations can work for the poor. An examination will be made of the many types of association existing at the forest-agriculture interface with an explicit focus on gender concerns. Types of associations might include those formed to secure resource access or investment, enhance efficiency, improve market penetration or overcome political marginalisation. The research will be undertaken on the full range of associations in three countries, and on specific associations in three more countries where further insights add particular value. Four key characteristics of association will be investigated:
(i) cohesion – what aspirations drive association and to what extent do they foster sustainable development?
(ii) resilience – what architecture maximises benefits over time?
(iii) equity – what processes ensure a just distribution of costs and benefits?
(iv) support – what enabling environment is necessary for associations to deliver to their potential?

Context:

SMEs often comprise the majority of livelihood opportunities in poor countries. Despite this, SMEs are often under-represented in both national planning initiatives and community programmes to eradicate poverty. Some of the reasons for this include:

  • Complexity of establishing and monitoring links with diverse natural resource based SMEs in multiple locations without formal associations or networks.
  • Diversity of constitution of these enterprises which diminishes the likelihood of common agendas, lesson-learning and diffusion of relevant solutions.
  • Small individual scale of each enterprise which reduces the per-unit impact and hence the incentive for development interventions.
  • Lack of formal incorporation and collateral by which such enterprises might attract investment.
  • Innate flexibility, mobility and opportunism by which such enterprises survive in volatile economies which predicates against stable longer term planning.
  • Disabling policy environments which often lay disproportionate regulatory burdens and “red tape” on SMEs compared with larger industry, and fail to provide incentives to optimise their potential.  

Objectives:

The research objective is to improve understanding about how forest resource-based SME associations can work for the poor. It will be achieved through the generation, spread and application of knowledge regarding enabling policy frameworks and key features of the functioning of effective, equitable and sustainable associations.

There are profound differences between developmental trajectories that are biased toward concentration through individual competition and those whose balance is tilted towards collective responsibility or association, especially where legitimacy and credibility are enhanced by attention to gender and minority representation in the latter. Initial findings note that associations often help to overcome not only economic disadvantages of scale, but also processes of social and political marginalisation contributing to the more holistic vision of human flourishing that has gained credence in recent development thinking. A new demand has therefore been stimulated among partners in various countries to investigate this potential wider development impact of SME associations.

The project will contribute to poverty reduction by increasing the preparedness of policy makers and SME practitioners to foster effective, equitable and sustainable forest-based SME associations. The project will do this through spreading understanding of how to improve the capacity of SME associations to secure investment, enhance production efficiencies, improve market access and overcome political marginalisation of the poor.

Key findings/ progress to date:

Work starting in July 2004 will build on the diagnostics of the key issues for forestry SMEs including the need for different types of alliance carried out in South Africa, India, China, Brazil, Uganda and Guyana. These diagnostics have included:

· Mapping current structures and relationships in the forestry SME sector
· Analysis of current influences of policies, institutions and market signals on enterprises, and of internal processes and systems in SMEs
· Initial stakeholder, institutional, environmental and economic analysis of the sector
· Identification of key issues and potential leverage points related to finance, governance frameworks, alliances and labour for SMEs.

Key Publications:

Stronger by association: lessons from Guyana’s forest-based associations
Sharon Ousman, Duncan Macqueen and Grace Roberts (2006)

View further details and pdf

Forest-based associations in India: An overview

Sharmistha Bose, Pankaj Lal, Praveen Shashi Pareek, Manish Verma, Sushil Saigal (2006)

View further details and pdf

Speaking with one voice: The role of small and medium growers' associations in driving change in the South African forest sector

Septi Bukula, Mzwanele Memani (2006)

View further details and pdf

Forest-based associations as drivers for sustainable development in Uganda

Cornelius Kazoora, James Ackworth, Charles Tondo, Bob Kazungu (2006)

View further details and pdf

Associations in emergent communities at the Amazon forest frontier, Mato Grosso

Luciene Dias Fugueiredo, Noemi Porro, Ligia Sauaya Pereira (2006)

View further details and pdf

Emerging forest associations in Yunnan China: Implications for livelihoods and sustainability

Horst Weyerhaeuser, Shao Wen, Friedrich Kahrl (2006)

View further details and pdf

Organisational mechanisms that best serve the poor

Boyd, G. (2005)

This paper seeks to sharpen understanding on how poor and marginalised groups can address the forces that restrain their self-development through the creation of their own democratic economic organisations. Critical factors blocking pro-poor development are examined such as elite power, modes of living and other dependent-dominant relationships which inhibit the poor from pursuing organised actions to change their life situation. In seeking ways of overcoming these factors the paper analyses the need to provide some form of catalytic support to stimulate the poor to create informal and formal organisations under their ownership and control.

View PDF

Stronger by association - Improving the understanding of how forest-resource based SME associations in Brazil can benefit the poor

Campos, M., Francis, M. and Merry, F. (2005)

The creation and consolidation of associations based around small and medium enterprises (SMEs) in frontier areas are often an attempt to overcome poverty and disadvantages of political marginalization. These associations of marginalized migrants, dependent on both agricultural and forest resources can therefore play major role in enhancing sustainable livelihoods in many rural areas. The formation and function of these associations is the focus of this report. Through interviews with association leaders this report describes and analyses 12 associations now active at the forest frontier in Amazônia. The report’s objective is to assess what characteristics determine a “good” or successful association.

View PDF

Associations of small and medium forest enterprise: An initial review of issues for local livelihoods and sustainability

Macqueen, D.J. (2004)

This short paper provides an introduction to recent literature on the benefits of small and medium enterprise associations and how to realise them. An introduction is given to some of the language used by different disciplines that may have something to offer the forest sector. A framework is presented that summarises possible association objectives – and attention is drawn to the main types of association that might pursue such objectives. Some characteristics of successful associations are described. Finally, some of the links between SME associations, poverty reduction and sustainability are highlighted.

View PDF

Links to partners:

Brazil

Instituto de Pesquiza Ambiental da Amazônia (IPAM)
Av. Nazare, 669
Belem
Brasil CEP66035-170

Contact: Marina Campos (marina.campos@yale.edu) and
Frank Merry (fmerry@whrc.org)

Website: http://www.en.ipam.org.br

China

ICRAF-Kunming
Yunnan;
Tel: +86-871- 4164076
Fax: +86-871- 4164124

Contact: Horst Weyerhaeuser (horst@loxinfo.co.th)

Guyana

Guyana National Initiative for Forest Certification (GNIFC)
Lot 17 Mud Flat, Access Road, Kingston, Georgetown, Guyana
Tel: 592-223-5138/592-624-0298
Fax: 592-223-5138

Key research partner: Sheherezad Sharon Ousman (sousman@telsnetgy.net)

Website: http://www.forestry.gov.gy/

India

Winrock International India
1 Navjeevan Vihar,
New Delhi - 110017

Contact: Sushil Saigal (sushil@winrockindia.org) Sharmistha Bose (sharmistha@winrockindia.org)

Website: http://www.winrockindia.org/

South Africa

Upstart Business Strategies
115 4th Street, Linden 2195
Republic of South Africa
Tel: +27 (0)11 - 888-2744
Fax: +27 (0)11 - 888-8953

Contact: Septi Bukula (bukula@ubsmart.co.za)

Website: http://ubsmart.co.za/index.htm

Uganda

Sustainable Development Centre
Makere University Campus
Senate Building, Level 1, Office 3
PO Box 5463
Kampala
Uganda

Contact: James Acworth (jamesacworth@yahoo.co.uk)
or Cormelius Kazoora (sdc@imul.com)

Project supported by:

Department for International Development (DFID)

Contact:

Duncan Macqueen
Email: duncan.macqueen@iied.org


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