Berjaya, 93, 117N Beverage Price Shock of 1976–8, 25 Bhargava

Cambridge University Press 0521791677 - Timber Booms and Institutional Breakdown in Southeast Asia Michael L. Ross Index More information

Index

adat rights, 157, 165, 168, 171, 175, Berjaya, 93, 117n 176n beverage price shock of 1976–8, 25 Adduru, Marcelo, 60 Bhargava, S. K., 120, 121, 125 agricultural institutions big push economic theory, 2, 12, 196 in developing states, 24 Bilsborrow, Richard, 2, 46 Ahern, George P., 58 Boado, Eufresina, 70 Alaska, 22n Bodin, Jean, 29n allocation rights, 35 Bong Son An, aka Burhan Uray, 154n and “common pool” problem, 39 booming natural resource exports costs of gaining, 41 and developing states, 2 direct, 35 Botswana, 199 discretionary, 36 good management of diamond exclusive, 35 windfall, 24 in Indonesia, 173 British Borneo Timber Company in Sabah, 102 (BBT), 94 in Sarawak, 143 breakup of monopoly, 97 in the Philippines, 56 mission of, 95 and martial law in the Philippines, Brooke 57 forests under rule of, 132 preference for exclusive, 39 Brooke, Sir James, 128, 132 Alvarez, Jose, 81 Browne, F. G., 133 Ames, Barry, 40n Bulog, 164, 181 Amos, Felipe, 64 Anwar Ibrahim, 119 Caliwara, Eladio, 74 Auty, Richard, 8, 19, 20, 21n, 23, Cambodia 24, 30, 32 rent seizing in, 196 Cameroon, 199 banjir kap, 174, 175n Cases, Manuel, 84 Barba, Colonel Marcelino, 80 case selection, 43–48 Bates, Robert, 24 case study format, 52–54 Bautista, Germelino, 83, 84 Chai, Leo, 120, 121, 124, 125, 147 Bedard, Paul, 65 Christiansen, Robert, 8, 24 Bell Trade Act, 86 Coase, Ronald, 42n

229

Index

cognitive arguments Plan of Transformation and versus societal arguments, 32 Development, 21 Collier, David, 2, 15, 17, 18, 24, 31, policy failures in, 21 43 Enrile, Juan Ponce, 80 commodity booms. See also resource European Parliament booms ban on hardwood imports from ill effects of, 3 Sarawak, 151 and international institutions, 13 merits of, 2 forest policies stabilization funds, 199 explanations of, 1 and state institutions, 17, 36 forestry institutions susceptibility of developing states breakdown of, 1 to, 12 definition of, 52 common pool problem. See also explanation of, 52 resource windfalls in Indonesia, 165–6 and allocation rights, 39 in the Philippines, 57 avoiding, 39 in Sabah, 96–8 commodity windfalls, 10, 36 in Sarawak, 133–5 Communal Forests, 146 forests comparative method, 43 protection of, 198–9 corruption Fuzhou Chinese, 154n definition of, 35n Cortes, Edmundo, 77 Garcia, Carlos, 65, 73 Côte D’Ivoire Gelb, Alan, and Associates, 19 poor windfall management, 25 Geores, Martha, 2, 46 Crouch, Harold, 159, 163, 179 Gill report, 69 Cuddington, John, 18 Gill, Tom, 69, 70 Gillis, Malcolm, 1, 46, 48, 105n, Dandai, Sakaran, 119 146n, 147, 167n, 169, 176, Davis, Jeffrey, 25, 26 183 Deaton, Angus, 197 Golkar, 158, 162 deforestation Gunning, Jan Willem, 2, 15, 17, 18, history of, 45n 24, 31 Department of Agriculture and Natural Resources (DANR), 63 Habibie, Bacharuddin Jusuf, 187 used to influence the forestry Hak Pengusahaan Hutan, 168 bureau, 73 Hamilton, Alexander, 40n differential rents, 10 Hanurata, 185n Disini, Herminio, 80 hard-rock minerals Djamaludin, Suryohadikusumo, 180, windfalls from, 22 181 Harris Salleh, 91, 93, 94, 110, 116, Dutch Disease, 16 117, 118, 119, 120, 122 explanation of, 15 Hasan, Mohamed “Bob,” aka The Kian Seng, 177n, 186n, economic development theories, 2 187 Ecuador Hawes, Gary, 80

230

Index

Idris Hydraulic, 119 weakness of forestry institutions, Incremental Output/Capital Ratio 165 (IOCR), 19 yayasan, 162, 163 Indonesia Indonesia Forestry Department allocation rights in, 173 and penalizing logging violations, ban on unprocessed logs, 182–3 180 Basic Agrarian Law (1960), 165 Indonesian Communist Party (PKI), Basic Forestry Law (BFL) (1967), 160 168 Indonesian Selective Cutting System. brief political history of, 158 See Tebang Pilih Indonesia (TPI) causes of timber boom, 164 institutional breakdowns Chinese community in, 161n and resource booms, 8 Chinese entrepreneurs, 185n institutional change, 4 comparison with Sabah, 157 rent seeking versus rent seizing, 35 comparison with Sarawak, 157 institutions comparison with the Philippines, measuring the performance of, 15 157 international markets foreign investment in, 168 and harming developing states, 5, Government Regulation No. 201–2 64/1957, 165 International Monetary Fund (IMF), Government Regulation No. 166 20/1970, 174 International Timber Corporation of Government Regulation No. Indonesia (P. T. ITCI), 178 21/1971, 175 International Tropical Timber growth in timber exports, 169 Organization (ITTO), 152, 156, Kostrad, 159, 160, 177 198–9 Letter of Joint Decision (1981), 182 major licensees in the 1970s, 177 Jackson, Karl, 158, 159 military concessions in the 1970s, Jayasuriya, Thomas, 107 179 New Order government, 158 kaiñgineros, 60, 86n patronage pensions, 162 Kalimantan, 165n, 175n, 179n reforestation guarantee deposit, Karl, Terry Lynn, 3, 22, 30, 32 186 Kadazan, 90, 103, 107, 113 reforestation provisions, 180 Kenya rent capture, 176n and coffee export boom, 31 rent seizing in, 171 Khoo Siak Chiew, 109 reorganization of timber industry, 183 Lane, Philip, 3 shake-up of the timber industry, Lee, Joseph Ambrose, 122 181 Lele, Uma, 8, 24 Team 10, 182 Levin, Jonathan, 27, 30, 32 timber boom in, 164 Lewis, Stephen, 2, 23 timber concessions in, 175 Libecap, Gary, 4, 39 undertaxing the timber industry, Liem Soie Liong, aka Sudono Salim, 176 154n, 177n, 186n

231

Index

Lim Keng Yaik, 119, 151n monopoly rents, 10 Lim, Alfonso, 80 Mill, John Stuart, 10n Ling Beng Siew, 141 Montague L. Meyer, Ltd., 97 Lopez clan, 73 Moore, Barrington, 58, 82 Lopez, Fernando, 73, 74 Munang, Miller, 120, 125 Murut, 90, 103, 104, 107 Macapagal, Diosdado, 65, 73 Mustapha Harun, Tun, 93, 94n, 102, Maceda, Ernesto, 79n 103, 106, 109n, 134, 192 Machiavelli, Niccolò, 30n and direct authority over licensing, Mackie, J. A. C., 159, 176 111 Magsaysay, Ramòn, 63, 65, 73, 192 election as first chief minister, and dismantling restrictions on 110 license allocation, 65 forest policy of, 104 Mahathir Mohamad, 119, 153 giving of annual and special Mahdavy, Hussein licenses, 116 and the “rentier state” concept, 30 reconfiguring of Sabah’s forestry Mahmood, Syed Akhtar, 31 institutions, 110 Malacañang Palace, 77 strengthening of allocation rights, Malaysian Federation, 90, 91, 114, 112 128, 130 and unchallenged political Marcos, Ferdinand, 55n, 64, 71, authority, 114 192 allocation rights under authoriarian National Investment Coordinating rule, 76 Board (BKPM), 173 declaration of martial law, 57, 76 natural resource exports election as president, 56, 71 states relying on, 9 export quotas, 79 New Order government, 158 failure to raise timber royalties, 84 importance of patronage, 158 granting of logging rights to family initial triggering of timber boom, members, 80 166 order to gradually reduce log measures taken to promote timber exports, 74 exports, 166 and quota system, 78 and rent seizing, 171 and restriction of export of “raw” and the timber industry, 173 logs, 78 Non-governmental organizations strategy to increase authority over (NGOs), 196, 201 timber licensing, 72 Noor Tahir, Haji, 148 suspension of order to reduce log North Borneo Timber Producer’s exports, 75 Association, 104 Marcos, Josefa Edralin, 80 Nurske, Ragnar, 3, 13, 14, 30 Marcos, Judge Pio, 80 Marcos, Pacifico, 80 oil booms, 19 Marcos-Barba, Fortuna, 80 maximum sustainable yield (MSY), Pairin Kitingin, Joseph, 94n, 116, 53n, 194 118 Meda, John, 135 Papua New Guinea request for timber licenses, 137 and World Bank, 200

232

Index

Mineral Resources Stabilization role of foreigners in, 85–6 Fund, 24 Philippines rent seizing, 196 1967 anti-Quejado rally, 73 Pardo, Richard, 118, 120, 125 allocation rights in, 56 Parti Bangsa Dayak Sarawak (PBDS), as world’s leading exporter of 129, 130, 131, 149, 150 hardwood logs, 54 Parti Bersath Sabah (PBS), 93 brief political history of, 55 Parti Bumiputera, 131, 139, 140 Committee on Matters Pertaining party switching, 94n to the Division of Forest Pasok Momogun party, 90, 103, 104, Concessions, 60 109n comparison with Sabah, 88 patronage export quotas under authoritarian definition of, 35n rule, 79 in Indonesia, 158–63 forestry institutions in, 57 in the Philippines, 56 indigenous rights, 85n in Sabah, 88–9 martial law in, 57 in Sarawak, 153 Ministry of Natural Resources, 77 patronage pensions, 162 patronage in, 56 patron-client relations, 36n policies under authoritarian rule Pecson, Mateo, 64 versus democratic rule, 76 Peluso, Nancy Lee, 175n rapid rise in logging rates, 71 Permanent Forest Estate (PFE), 155 reform of Forestry Code, 80 Pertamina, 164, 177, 181 suspension of Special Licenses in, Peru 75 windfall from guano, 26 Timber License Agreements (TLAs), Pesaka, 129, 130, 131, 139, 140, 77 141, 142 timber licenses, 77 petroleum timber windfall and undertaxation, and resource windfalls, 19 81 petroleum windfalls U.S. influence on timber sector, 86n used for investment, 19 Pinchot, Gifford, 58 Philippine Boy Scouts Plato, 45n and nationwide tree-planting policy failures, 17 program, 70 reasons for, 190 Philippine Bureau of Forestry, 58 political influence as model for Sabahan forest and windfalls, 34 department, 96 pork barrel politics and drive against illegal logging, 71 definition of, 35n organization of, 58 Potter, Lesley, 179n raising forestry revenues, 83 Prajogo Pangestu, aka Phang Djun Philippine Forest Act (1904), 58 Phen, 186n Philippine Forest Service Public Choice, 33 Philippine loggers and windfall, 61 Quejado, Antonio, 73 Philippine Lumberman, 64, 73 1967 anti-Quejado rally, 73 Philippine timber industry rejection of nomination, 74 damage to in World War II, 59 Quirino, Elpidio, 60

233

Index

Rahman Ya’akub, Abdul, 130, 131, resource booms. See also commodity 192 booms and allocation rights, 143, 144, and breakdown of institutions, 8 147 causes of, 10 and native land rights, 146 definition of, 10 and the STIDC, 143 value of, 12 dispute over allocation rights with resource windfalls, 190, 191. See also Taib, 149 commodity windfalls election as chief minister of reasons why states respond poorly, Sarawak, 142 29 use of timber concessions, 153 using for investment, 16 ramin, 135, 137 Reyes, Luis, 65 in Sarawak, 133 Robison, Richard, 159, 162, 163, Ramos, General Fidel, 81 169, 177, 178, 185 Ranis, Gustav, 31 Rodriguez, Eulogio, Sr., 64 ransack rents, 110, 194 Rodriguez, Juan, 63 definition of, 38 Roosevelt, Theodore, 58 Razak, Tun, 140 rent seeking Sabah behavior, 3 1967 election, 108–10 compared to rent seizing, 4, 36 allocation rights in, 102 definition of, 33 annual timber licenses, 98 social impact of, 38 audit of logging concessions, 119 rent seizing beginning of logging boom, 99 approaches to mitigating, 199–201 brief political history of, 89 behavior of politicians, 37 Commercial Forest Reserves, 112, compared to rent seeking, 4, 33, 36 124 definition of, 3 comparison with Sarawak, 128 in Indonesia, 171, 187 comparison with the Philippines, 88 in the Philippines, 71, 84 complete logging of all State Land in Sarawak, 141 Forests, 124 in Sabah, 104 Concessionaires, 113 and policy failure, 195–6 end of swidden farming, 112 theory of, 33 first direct election, 108 unproductiveness of, 38 forest department decline, 123 rentier state concept, 30 forest department’s loss of rents authority over Sabah definition of, 10 Foundation, 124 differential, 10 Forest Enactment 1968, 111, 113 heuristic value, 10n Forest Ordinance and Forest Rules in the Indonesian forest sector, (1954), 96, 105, 110, 121 175–6 forest policies of, 99 in the Philippine forest sector, 84 Forest Rules 1969, 111 in the Sabah forest sector, 112 forestry institutions of, 88, 99 in the Sarawak forest sector, 147 Land Ordinance (1962), 97, 106, monopoly, 10 112, 134 Repetto, Robert, 1 patronage in, 88

234

Index

political institutions of, 90 forest offenses recorded in, 156 political parties, 90n Forest Ordinance (1953), 132, 135, reconfiguring of forestry 138 institutions by Mustapha, 110 forestry institutions of, 134 rent capture, 105n native land rights in, 146 rent seizing in, 104 native protests, 151 rising logging rate under Partai Pesaka Bumiputera Bersatu Mustapha, 116 (PBB), 131 and rising pace of logging in the Parti Bangsa Dayak Sarawak 1960s, 108 (PBDS), 131 Special Licenses in, 103 Parti Bumiputera, 131 State Land Forests, 123, 124 Permanent Forest Estate (PFE), 155 Sabah Alliance, 91, 102, 103, 110 political parties, 129n constraints on rent seizing under, ramin exports, 135 106 rent seizing during the transitional logging permits under, 103 period, 138 rent seizing under, 104 State Land Forests (SLF), 148, 153, Sabah Chinese Association (SCA), 90, 155 91, 104, 107, 109n, 110, 114 sustainability of forests in, 135 Sabah Foundation, 114, 117, 194 and swidden farming, 144 as a replacement for the concession timber contractors, 154n system, 114 timber concessions in, 146 decline of, 121 timber production in the early forest department’s loss of 1980s, 150 authority over, 124 U.S. congressional staff mission to, Sakaran Dandai, 119 151 Salleh Said Keruak, 119 unsustainable logging rates in, 146 Salleh, Harris Sarawak Chinese Association (SCA), and the Berjaya government, 116 129, 130, 139, 141, 142, 144 Sanchez, Guillermo, 64 Sarawak Foundation, 192 Sandakan Sarawak Forest Department’s as a leading timber port, 87 Selective Felling System, 154 Santos, Teofilo, 74 Sarawak National Party (SNAP), 129, Sarawak 130, 131, 134, 141, 144, 146 1987 election, 149–50 Sarawak Timber Industry allocation rights in, 143 Development Council (STIDC), brief political history of, 128 143, 192 coastal swamp forests in, 135 Sarawak United People’s Party Communal Forests, 146 (SUPP), 129, 130, 141, 142, 144 comparison with Sabah, 128 Saudi Arabia, 21n Council Negri, 133 Schwarz, Adam, 161n curtailment of rent seizing, 141 Shafer, D. Michael, 5, 24, 32 end of timber windfall, 142 Shafie Apdal, Mohamed, 122 and European Parliament, 151 Skocpol, Theda, 44 forest conservator’s ability to societal arguments curtail overharvesting, 137 versus cognitive arguments, 32 Forest Department of, 133 Society of Filipino Foresters, 73

235

Index

and vote to support restrictions on Syed Kechik, 113, 114 log exports, 69 appointment as director of Sabah Somers, Margaret, 44 Foundation, 115 Southeast Asia and loss of forests, 5 Taft, William Howard, 58 staple theory of economic growth, 2, Taib Mahmud, Abdul, 131, 139, 148 12, 196 dispute over allocation rights with state assets Rahman Ya’akub, 149 acquiring versus spending, 39 and licensing freeze, 140 state institutions use of timber concessions, 153 reasons for break downs, 4 Tajang Laing, 139, 140 Stauffer, Robert, 56 Tanco, Arturo, 75, 84 Stephens, Tun Fuad (Donald), 102, Tan Tjoe Hin, aka Hendra Rahardja, 103, 106, 109n, 113, 191 154n forest policy of, 104 Tawi Sli, 139n stepping down as chief minister, Team 10 107 and state patronage, 182 Sudharmono, 182 Tebang Pilih Indonesia (TPI), 179n Sudjarwo, 157, 167, 173, 174, 176, Teo Kui Seng, 139 181, 187, 192 timber booms Sudjono Humardhani, 163n exceptional duration of, 47 Suharto, 158, 159, 166, 192 timber exports and allocation rights, 173 boom in, 2 assets of children, 186n history of, 45 easing of authority over the timber international market for, 200 industry, 181 states that dominated international use of state assets for patronage, 162 trade in, 48 patronage institutions of, 161 timber windfall political skills of, 160 deﬁnition of, 52 and the 1978–9 oil shock, 181 explanation of, 52 Suharto government virtues of studying, 45 new forest policies in the 1970s, Tornell, Aaron, 3, 32 171 Tucker, Richard, 58, 59 state of Indonesian forests under, 164 Udarbe, Malu, 123 tax on timber exports, 167 UMNO-Sabah, 93 Sukarno, 158, 159, 160 United Malay National Organization shunning of foreign investment, (UMNO), 92, 94 161 United National Kadazan Sundang, Gunsanad, 109n Organization (UNKO), 106, Sutowo, Lt. General Ibnu, 177 109n swidden farming. See also United Nations Conference on Trade kaiñgineros and Development (UNCTAD), in Indonesia, 176 13 in the Philippines, 61, 87 United Nations Food and Agriculture in Sabah, 105, 114–15 Organization (FAO), 13 in Sarawak, 144 United Pasok-Momogun Kadazan

236

Index

Organization (UPKO), 91, 102, overrapid, 16 103, 104, 106, 107, 109n, 110n, windfalls 113, 114, 138 as cause of rent seizing, 197 United Sabah National Organization authoritarian states versus (USNO), 90, 91, 102, 103, 104, democracies, 41 105, 106, 107, 109n, 110n, 113, and commodity institutions, 17 114, 116, 118 and “common pool” problem, 39 Utleg, Juan, 68, 71, 74 difﬁculty of analyzing, 47 for Philippine loggers, 61 Valdez, Simeon, 80 how governments respond, 32 Vatikiotis, Michael, 160 impact of, 34 Venezuela in Indonesia, 174 and petroleum windfalls, 19 in the Philippines, 63–4 Fondo de Inversiónes de Venezuela, in Sabah, 115–16 22 in Sarawak, 144 policy failure, 22 triggering rent-seeking behavior, 33 Viado, Jose, 77 Wong, James, 134n, 143n Vincent, Jeffrey, 105n, 146n World Bank, 13, 25, 30, 54, 68, 70, voracity effect, 32 84, 85, 87, 88, 105n, 120, 121, 125, 147, 152, 154, 156, 166, Wallich, H. C., 30 196 Watkins, Melville, 2, 3, 12, 30 World War II Wee Hood Teck, 140, 141 and damage to Philippine timber Weyerhaeuser, 178 industry, 59 Wheeler, David, 23, 31 World Wildlife Federation (WWF), windfall investments, 20 152 windfall policy failures explanation for, 31 Yap, Richard, 106 windfall spending rate Ysmael Jr., Felipe, 80 deﬁnition of, 52 explanation of, 53 Zambia fastest, 40 Mineral Stabilization Fund, 24

237