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Forestry and Land Use Project Summary

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Theme: Small-scale producers and local economies

Project name: Small-medium forestry enterprises for poverty reduction and sustainability

Dates / Duration: August 2002 to July 2006

Geographic Region:

International, with particular focus in South Africa, India, China, Brazil, Uganda and Guyana

Introduction:

IIED’s partners in developing countries requested assistance in working through a new set of obstacles and opportunities for making forest enterprise work for local sustainable livelihoods. The reasons why this challenge has emerged, and a set of specific activities to begin addressing it, are outlined below.

IIED coordinated the project Instruments for sustainable private sector forestry from 1998 to 2002. There has been significant interest in, and uptake of, findings of this project by the private sector and governments in the project’s five core countries: China, South Africa, Brazil, Papua New Guinea and India, and a number of voluntary or enforcement options have been developed as a result. Civil society organisations are also drawing on findings and there has been strong demand for the work from development assistance agencies and international forest policy processes.

Effective forest governance is needed to work through the agenda laid down by the project’s findings. This in turn requires a negotiated and shared vision amongst all key stakeholders of the desired role of forestry in land use in any given context. Furthermore, IIED's partners have recognised that most international attention in forestry has been given to improving the conditions for large-scale or micro-scale forestry, and much less to the 'messy middle' - which produces a high proportion of forest product and involves huge numbers of people. For example, in the Brazilian Amazon, 92% of the total production volume is accounted for by small and medium size enterprises (SMEs).

Objectives:

This project builds on the findings of Instruments for sustainable private sector forestry. It aims to encourage and enforce greater sustainability in private sector forestry, by installing its findings in the practices of key institutions promoting good governance and sustainable livelihoods. It also begins to address the demand for converting what we know about better big business into systems, alliances and tools that enable small and medium enterprise to deliver improved forest security and poverty reduction.

Future work under this project aims to develop ways in which SMEs can better contribute to reducing poverty and improving local security of forest goods and services. A programme of action research and implementation of catalytic actions with country partners will develop and spread understanding of the conditions under which:

  • Responsible forest finance is increased for SMEs;
  • Governance systems are made more practically effective for SMEs;
  • Tools and alliances for SMEs are supported; and
  • SME workforces for sustainable livelihoods are fostered.

Key findings/ progress to date:

Work completed so far has included diagnostics of the key issues for forestry SMEs in finance, governance, alliances and labour, in South Africa, India, China, Brazil, Uganda and Guyana. These diagnostics include:

  • 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:

Toward an enabling environment for small and medium forest enterprise development
Jason Donovan, Dietmar Stoian, Sophie Grouwels, Duncan Macqueen, Arthur van Leeuwen, Gemma Boetekees and Ken Nicholson (2007)
View English pdf   View Spanish pdf   View French pdf

Country-specific case studies are also available for download:

Raising forest revenues and employment: Unlocking the potential of small and medium forest enterprises in Guyana

Andrew Mendes, Duncan Macqueen (2006)

View further details and pdf

Forestry contractors in South Africa: what role in reducing poverty?

Jeanette Clarke, Moenieba Isaacs (2005)

View further details and pdf

Small-scale timber production in South Africa: what role in reducing poverty?

Mike Howard, Phumzile Matikinca, Dominic Mitchell, Fiona Brown, Fonda Lewis, Isaiah Mahlangu, Andile Msimang, Peter Nixon, Themba Radebe (2005)

View further details and pdf

Small and medium forest enterprise - Brazil: A discussion paper

Peter H. May, Valéria Gonçalves da Vinha, Duncan J. Macqueen (2005)

View further details and pdf

Small and medium forest enterprise - China: A discussion paper

Changjin Sun, Xiaoqian Chen (2005)

View further details and pdf

Small and medium forest enterprise - Guyana: A discussion paper

Raquel Thomas, Duncan Macqueen, Yolanda Hawker (2005)

View further details and pdf

Small and medium forest enterprise - India: A discussion paper

Sushil Saigal, Sharmistha Bose (2005)

View further details and pdf

Small and medium forest enterprise - South Africa: A discussion paper

Fonda Lewis, Juana Horn, Mike Howard, Steven Ngubane (2005)

View further details and pdf

Small and medium forest enterprise - Uganda: A discussion paper

Rosina Auren, Krystyna Krassowska (2005)

View further details and pdf

Links to partners:

Institute of Natural Resources, South Africa

Guyana Forestry Commission

Uganda Forest Sector Co-ordination Secretariat
Contact: Stephen Khaukha
Email: stephenk@ugandaforests.org

Winrock International India

Research Center of Ecological and Environmental Economics, China
Contact: Changjin Sun
Email: cjsun@163bj.com

Grupo de Economia do Meio Ambiente e Desenvolvimento Sustentável-GEMA,
Instituto de Economia da Universidade Federal do Rio de Janeiro-IE/UFRJ, Av. Pasteur,

250 - Terreo, Sala 07, 22290-240

Rio de Janeiro, RJ, Brazil

Project supported by:

Department for International Development

Ministry of Foreign Affairs of Denmark

Swiss Agency for Development and Cooperation

Netherlands Ministry of Foreign Affairs, Directorate General for Development Cooperation

Contact:

Duncan Macqueen
Email: duncan.macqueen@iied.org


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