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National and International Policies to Control Illegal Forest Activities Japan.qxd 3/10/03 10:09 PM Page 1 A Report for the Ministry of Foreign Affairs, Government of Japan National and International Policies to Control Illegal Forest Activities July, 2003 Luca Tacconi, Forests and Governance Programme, Center for International Forestry Research Marco Boscolo, Center for International Development, Harvard University Duncan Brack, Sustainable Development Programme, The Royal Institute of International Affairs Cover photo by Anne Casson Published by Center for International Forestry Research Mailing address: P.O. Box 6596 JKPWB, Jakarta 10065, Indonesia Office address: Jl. CIFOR, Situ Gede, Sindang Barang, Bogor Barat 16680, Indonesia Tel.: +62 (251) 622622; Fax: +62 (251) 622100 E-mail: [email protected] Web site: http://www.cifor.cgiar.org National and International Policies to Control Illegal Forest Activities A report prepared for the Ministry of Foreign Affairs of the Government of Japan July, 2003 Luca Tacconi, Center for International Forestry Research Marco Boscolo, Center for International Development, Harvard University Duncan Brack, Sustainable Development Program, The Royal Institute of International Affairs &RQWHQWV EXECUTIVE SUMMARY ........................................................................................................................................V 1. INTRODUCTION.............................................................................................................................................1 2. ILLEGAL FOREST ACTIVITIES, IMPACTS, AND THE GLOBAL AND NATIONAL SITUATION ............... 2 2.1. DEFINING ILLEGAL FOREST ACTIVITIES ........................................................................................................ 2 2.2. POTENTIAL IMPACTS OF ILLEGAL FOREST ACTIVITIES..................................................................................... 4 2.3. GLOBAL AND NATIONAL SITUATION.............................................................................................................. 7 3. ILLEGAL LOGGING, ECONOMIC RATIONALITY, AND ETHICAL ISSUES ............................................... 8 3.1. DEFORESTATION AT THE NATIONAL LEVEL ................................................................................................... 9 4. SUSTAINABLE FOREST MANAGEMENT ................................................................................................. 10 4.1. WHAT IS SFM?...................................................................................................................................... 10 4.1.1. Definition................................................................................................................................... 10 4.2. INITIATIVES TO PROMOTE SFM: A BRIEF OVERVIEW ................................................................................... 11 4.2.1. Producer country measures...................................................................................................... 12 4.2.2. Consumer country measures.................................................................................................... 14 4.2.3. International initiatives and agreements ................................................................................... 14 4.2.4. Forest certification .................................................................................................................... 16 4.2.5. What was achieved?................................................................................................................. 16 5. THE CAUSES OF ILLEGAL FOREST ACTIVITIES AND POLICY OPTIONS............................................17 5.1. MARKET CAUSES AND POLICY OPTIONS ...................................................................................................18 5.1.1. Initiatives by consumer countries..............................................................................................21 5.2. GOVERNANCE CAUSES AND POLICY OPTIONS ...........................................................................................21 5.2.1. Initiatives by consumer countries..............................................................................................25 5.3. LEGISLATIVE CAUSES AND POLICY OPTIONS .............................................................................................25 5.3.1. Initiatives by consumer countries..............................................................................................28 5.4. CAPACITY AND TECHNICAL CAUSES AND POLICY OPTIONS .........................................................................29 5.4.1. Initiatives by consumer countries..............................................................................................30 iii 6. INTERNATIONAL AGREEMENTS, LESSONS, AND POLICY OPTIONS...................................................31 6.1. TRADE-RELATED AGREEMENTS .................................................................................................................32 6.1.1. CITES .......................................................................................................................................32 6.1.2. International Tropical Timber Agreement and Organisation .....................................................35 6.1.3. Lessons from the Kimberley Process .......................................................................................37 6.1.4. Lessons from other environmental agreements........................................................................38 6.1.5. Lessons from fisheries agreements..........................................................................................39 6.2. GOVERNANCE AND ENFORCEMENT RELATED AGREEMENTS AND PROCESSES .................................................41 6.2.1. Lessons from the Lusaka Agreement .......................................................................................41 6.2.2. Forest Law Enforcement and Governance process..................................................................42 6.3. CONCLUSIONS AND RECOMMENDATIONS....................................................................................................43 7. BILATERAL TRADE MEASURES AND ILLEGAL FOREST ACTIVITIES: POTENTIAL RELATIONSHIPS ....... 44 7.1. TIMBER PRODUCTION AND TRADE PATTERNS ..............................................................................................44 7.1.1. Asia...........................................................................................................................................45 7.1.2. Africa ........................................................................................................................................45 7.2. IMPLICATIONS FOR ILLEGAL FOREST ACTIVITIES REDUCTION STRATEGIES.......................................................46 8. CONCLUSION .............................................................................................................................................47 8.1. PRINCIPLES AND CRITERIA FOR EVALUATING ALTERNATIVE OPTIONS .............................................................47 8.1.1. Principles ..................................................................................................................................47 8.1.2. Criteria......................................................................................................................................48 8.1.3. Initial sequencing steps ............................................................................................................49 8.2. CONCLUDING COMMENTS.........................................................................................................................49 9. BIBLIOGRAPHY...........................................................................................................................................50 APPENDIX I: REQUIREMENTS FOR SFM .................................................................................................55 APPENDIX II: SUMMARY OF CAUSES OF ILLEGAL FOREST ACTIVITIES AND POLICY OPTIONS ....59 List of Tables Table 1. Illegal Forest Practices.......................................................................................................................3 Table 2. Environmental, economic, financial, social, and governance impacts of illegal forest activities........5 Table 3. Estimates of illegal harvest ................................................................................................................8 Table A2.1 Producer country: Causes of illegal forest activities and policy options ...........................................60 iv ([HFXWLYH6XPPDU\ The purpose of this study is to critically examine the range of national and international policy options available to reduce illegal forest activities. Illegal forest activities include a broad array of legal violations that range from violating ownership and use rights to engaging in corrupt relationships. They also may span activities at all stages of the forest production chain, from the acquisition of authorizations, to planning, to harvesting and transport of raw material and finished products, to financial management. Illegal forest activities pose a significant threat to the sustainability of forest ecosystems, result in losses of government revenues, foster a vicious cycle of bad governance, and may contribute to increased poverty and social conflict. As such, they have received considerable attention from the international community, particularly in recent years. Yet, significant gaps still
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