Forest Dependency in Rural

Based on the Case Study in Municipality

Tbilisi, October 2014

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This publication has been produced with the assistance of the European Union. The content, findings, interpretations, and conclusions of this publication are the sole responsibility of the FLEG II (ENPI East) Programme Team (www.enpi-fleg.org) and can in no way be taken to reflect the views of the European Union. The views expressed do not necessarily reflect those of the Implementing Organizations.

Contents

List of figures ...... 4 List of tables ...... 4 Executive Summary ...... 6 1.1 Forests and forest use in Georgia ...... 10 1.2 Rationale: The importance of Forest Dependency Study in Georgia ...... 11 2. Methodology ...... 12 2.1 study area ...... 12 2.2 Method of sampling ...... 13 2.3 Number of households ...... 14 2.4 Timeline ...... 15 2.5 Field implementation and problems ...... 16 2.6 Local unit conversion ...... 16 3. Study area characteristics ...... 17 3.1 Brief history of villages ...... 17 3.2 Demographics ...... 18 3.3 Infrastructure availability ...... 19 3.4 Economic data ...... 20 3.5 Major economic activities ...... 20 3.6 Seasonal calendar ...... 22 3.7 Major markets and market access ...... 23 3.8 Major land covers and land uses ...... 24 3.9 Description of conservation areas ...... 25 3.10 Tenure and governance ...... 25 3.11 Government and other development/conservation projects ...... 26 3.12 Calamities ...... 27 4. Results and discussion ...... 29 4.1 Income share by source ...... 29 4.2 Frequency and value of forest products ...... 38 4.3 Fuelwood ...... 42 2

4.4 Cash and subsistence of forest products ...... 43 4.5 Relative Forest Income (RFI) across income quintiles ...... 43 4.6 Relative Forest Income across asset groups ...... 44 4.7 Most Important Products ...... 45 5. Conclusion ...... 47 6. References ...... 49

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List of figures

Figure 1 - Minimum and Maximum Price of High-quality Agricultural Land per Hectare ...... 21 Figure 2 - Income by Source ...... 29 Figure 3 - The structure of the population income calculated per equivalent adult ...... 31 Figure 4 - Inputs expended for the livestock ...... 38 Figure 5 - Frequency of forest products collected ...... 38 Figure 6 - Frequency of Forest Product Collecting by Communities ...... 39 Figure 7 - Frequency of Forest Product Collecting by Family Members ...... 40 Figure 8 - Forest products by value ...... 40 Figure 9 - Forest products by value ...... 41 Figure 10 - Value distribution of the forest products by their use ...... 43 Figure 11 - Cash and Subsistence Forest Income and RFI ...... 44 Figure 12 – Forest cash and subsistence in different groups ...... 45 Figure 13 - Main reasons for decline in most important products ...... 46

List of tables Table 1 - The selection criteria for each village ...... 13 Table 2 - The number of households and the number of sampled households in each village ...... 14 Table 3 - The size of each focus group by age and gender distribution ...... 15 Table 4 - The number of conducted household interviews by dates ...... 15 Table 5- The number of population in the selected villages by age and gender distribution ...... 18 Table 6 - Number of national minorities in the selected villages (by persons) ...... 18 Table 7 - Availability of different types of infrastructure in the villages ...... 19 Table 8 - Distribution of the population according to the employment status and the number of households with social assistance ...... 20 Table 9 - Daily allowance of the people involved in the agricultural activities by gender ...... 21 4

Table 10 - Periods of collecting and selling basic forest products by each village ...... 22 Table 11 - Access to markets ...... 23 Table 12 - Balance of community lands in the selected villages by the land use types (hectares) ...... 24 Table 13 - Average land area in square meters, controlled and used by households ...... 24 Table 14 - Number of the people at the age of 16 and older involved in various economic activities during the reporting period (12 months since the survey) ...... 30 Table 15 - Structure of other incomes calculated by per equivalent adult ...... 31 Table 16 - Number of the households producing the animal and agricultural products . 32 Table 17 - Number of households engaged in the sales of animal and agriculture product ...... 32 Table 18 - Data of production, consumption, sales, and revenues from specific products (in GEL) ...... 33 Table 19 - Structure of costs for agricultural production calculated per household ...... 35 Table 20- Agricultural income, expenses and net income per household ...... 36 Table 21 - Number of livestock and poultry species calculated per household at the end of the reporting period ...... 36 Table 22 - Income from livestock, expenses and net income calculated per household ... 37 Table 23 - The main product consumption ...... 41 Table 24 - The most important products changes for the last 5 years ...... 45

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Executive Summary Introduction

Georgia, located in the Caucasus is bounded by the Black Sea to the west, by Russia to the north, by Turkey and Armenia to the south, and by Azerbaijan to the south-east. The largest city and capital is . The population of the country is approximately 4.5 million people. Georgia is a very mountainous country. The total area of land covered by forests is approximately 2.8 million hectares, which is approximately 40% of the country’s territory. The total timber resources in the Georgian mountains are estimated at 451.7 million cubic meters. 97% (2915.8 hectares) of the Georgian forests are located on mountain slopes, the remaining 3% are low-lying and flood plain forests in the Kolkheti region and are located in the western part of Georgia. 95-98% of the Georgian forests are of natural origin. Characteristics such as composition, size, growth and development, etc. create a rich biological diversity – up to 400 tree and shrub species are registered in Georgian forests. The large number of endemic timber tree species indicates a high diversity of dendroflorai. Among endemic species, 61 species are endemic to Georgia and 43 are endemic to the Caucasus. The tree species are distributed as follows: Beech make up 1060 thousand hectares (46.6 %), Fir make up 161.5 thousand hectares (7.1 %), Pine make up 91.0 thousand hectares (4.0 %), Oak make up 241 thousand hectares (10.6 %), Alder make up 125.1 thousand hectares (5.5 %), Chestnut make up 72.8 thousand hectares (3.2 %), Hornbeam make up 220.6 thousand hectares (8.8 %), Spruce make up 102.0 thousand hectares (4.5 %) and other species make up 220.6 thousand hectares (9.7 %). The distribution of forest cover is unequal in Georgia. While some regions are densely populated with forests (e.g. , , Svaneti, Racha, gorge, and other regions), other regions (e.g. Dedoplistskaro, , , , , Kazbegi, etc.) are more sparsely populated, with the forest cover percentage being below 10%. The Georgian forest is owned by the state. The National Forest Agency, which is a legal entity under public law under the Ministry of Environment and Natural Resources Protection of Georgia, oversees the management of the forest. The Agency manages the State Forest Fund, regulates forest use, facilitates forest maintenance and rehabilitation, and controls the State Forest Fund area. This agency is also responsible for issuing tickets for timber production and forest use. The Forest within the Protected Areas boundaries is managed by the Protected Areas Agency within the same Ministry. According to official statistics, 61.3% of the population is self-employed, mostly through the agricultural sector. About 55% of total population is employed by the agricultural sector, despite the fact that, the agricultural sector only makes up 9.3% of national GDP. (National Statistics Office in Georgia - www.geostat.ge) The Georgian population depends heavily on their surrounding resources for subsistence use. Georgia’s forests provide timber for industrial and household use, as well as non-timber resources such as medicinal plants. For the population living in areas with tough terrain and challenging climatic conditions, where agriculture is less reliable, access to forest and environmental resources is especially important to support their livelihoods. The European Neighborhood and Partnership Instrument East Countries Forest Law Enforcement and Governance II Program (the “Program”) is aimed at implementing improved forest governance mechanisms through the effective implementation of the main priorities set out by the St. Petersburg Ministerial Declaration and Indicative Plan of Actions for the Europe and North Asia Forest Law Enforcement and Governance (ENA- FLEG) process. This Program specifically covers seven countries of the ENA Region, including six members of the European Neighborhood Policy Instrument (ENPI) – Armenia, Azerbaijan, Belarus, Georgia, Moldova, 6

Ukraine, and the Russian Federation. The Program supports selected pilot activities to be implemented with the active involvement of governments, civil society and the private sector. The main goals of the forest dependency study in Georgia were to document the factors and reasons that may determine drivers of sustainable forest management in forest-dependent communities, to measure the true value of forests for rural communities and to provide quantifiable information for the use of decision makers in order to improve governance. Methodology

The specific goals of the study of Forest Dependency were to identify the socio-economic conditions of -Mtianeti Region, define the main factors influencing the development of the local population of the region and identifying/analyzing the level of dependence of poor residents on forests and other natural resources, and other products, cattle breeding, etc. With the goals of the study into account, the located in the Mtskheta-Mtianeti Region (Northeastern part of Georgia) was selected for the fieldwork. This is one of the typical regions in Georgia where the wellbeing of the majority of the population is highly dependent on agriculture and forest and natural resource use, due to the geographical and climatic conditions of the region, as well as the difficult socio-economic situation. The following 5 villages were selected for the research: Sakdrioni, Artani, Zhebota, Chabano and Zaridzeebi. The selection was done according to specific criteria, such as distance from the forest and access to forest resources, socio-economic conditions of the rural population, population density, etc. Two research methods were used in this study: face-to-face household interviews (200 households were interviewed totally) and focus group interviews (one focus group interview was conducted in each village). Study Area

Tianeti municipality is a high mountain region in Eastern Georgia. The center of the municipality, Tianeti, is located at 1100 m above sea level. The villages in Tianeti region are mainly very small and located in high mountains. The region has a high potential of tourism development, due to the presence of historical monuments in the villages, but the main problem hindering the development of tourism is the lack of proper infrastructure. Problems related to infrastructure are very serious. Natural gas, water and Internet access are not provided to the majority of the villages. Because the winters are long and severe in the municipality, the population needs fuel for heating 10 months out of the year. Fuel for cooking is needed throughout the entire year. Because firewood is the cheapest and the most available resource, it is widely used for heating and household purposes. Despite a gasification program, that was recently started in region, which will increase the population’s access to natural gas, it does not seem that the dependence on firewood will decrease in the near future, as the price of gas consumption is high for local population for many reasons. First, investor companies who are responsible for the gasification of the region charges the villages fees in addition to the normal tariff on gas, making the tariff for villagers higher then the tariff in Tbilisi, capital of Georgia. Furthermore, the gasification process includes installing pipes in public areas connecting the streets and villages to each other, and the residents are responsible for paying to install the gas pipes from the nearest street to their houses. The price for installation varies from 300 to 600 Gelii, depending on the distance between the house and the street. The locals are offered the option of paying the fee in installments of 25 Gel per month, in addition to the cost of gas consumption. In case the costs of installing pipes from the main pipe to the house is higher than 600 Gel, the Investor Company SocarGas Georgia covers any amount exceeding 600 Gel so that the maximum payable amount for the households is 600 Gel, however, this amount is still very high for the local population. We can conclude that due to the high price of gas, dependence on forest resources, specifically on firewood, will likely not decrease for the next several years. The existing regulations and prescribed forest use practices also pose challenges to the local population. In 7

order to gain access to the forest, the local population must contact a local ranger to obtain a forest use ticket and pay the official price at the bank – 6 GEL per cubic meter. The issued forest use ticket is only valid for one month. The ranger accompanies those given access, shows them the felling site, and marks the trees that can be cut. Later, the ranger also checks the amount of firewood that has been processed. Based on the forest use documentation (forest use ticket, payment documents etc.) held by the local population, the ranger issues the certificate of legality of the processed firewood (including the amount and the destination), which also serves as the transportation document. According to locals, the timber transportation permit allows only one day of transportation. If locals are not able to manage the transportation in a day, due to weather or other restrictions, they are obligated to pay the fee for forest resource use again in order to receive another permit. It should also be noted that the price of permits to collect fallen branches is similar to the price of the regular forest use ticket, therefore the population prefers to harvest new timber rather than collect fallen branches. This in turn leads to the massive logging of the forest.

In addition, Tianeti is located in the region where geodynamic processes are very active. The region is prone to many natural disasters such as landslides, floods, downpour etc. caused in part by the landscape and its geological conditions and also by anthropogenic activities (mostly unsustainable logging). Results

As the surveys showed, the most important source of income for the targeted communities comes from animal products (24%), mainly from cheese and meat production. The second most important source of income appears to be wages (23%). Other income sources include pensions (76%), remittances (10%), government support (8%) and gifts/support from friends and relatives (6%), which also makes up a significant share. Wage income is mostly the aggregate income from the public service and transport sectors. Livestock development is characteristic of the Tianeti Municipality due in part to the favorable terrain and climate conditions, but also to the relatively high value of animal products compared to that of plant products. However, the net income from livestock is negative because the revenue received does not cover the associated costs. Still, the aggregate income from animal products is the most important source of income for the region. The total income related to forest activities makes up only 14% of the total income. As the study shows, the forest resource most frequently collected by the local population is firewood, as it provides the greatest benefit to the community compared to other forest products. According to locals, mushrooms are the second important product. Firewood is used as the main source of energy and mushrooms are used for household consumption as well as for sale. In general, the most frequently collected products are different in every community. It also became clear during the focus group interviews that in past years, swine breeding was the main activity, but after the spreading of the H1N1 virus known as “swine influenza,” the local population chose to stop this activity. Forest fruits, such as crabapples, were mostly used as swine feed. But since the decrease in swine breeding, the collection of this forest fruit has decreased as well. As for the most valuable forest products, the study showed that grasses used as fodder for livestock and firewood are the most valuable products. Alcoholic beverages that are produced from wild fruits such as crabapples also appear to be important. The majority of almost all of the forest products collected are used for personal consumption and the percentage of forest products sold is very low. The reasons for this are mostly related to the fact that the population lacks the capacity to collect large amounts of the products to be both consumed by their household and sold. Further, there is a problem with market access. The population primarily uses the markets located in the regional center of Tianeti. There are cases when traders come to the villages and buy agricultural and forest products from locals at lower prices than the market price but the cash received from these transactions is not high. According to the figures showing the quintiles dividing the households into five groups based on income value, it is clear that the poor population has a higher dependence on forest resources. It should also be noted that the ratio of the value of products sold, to the 8

value of the products consumed is the lowest in the poorest group. This indicates that the poor population mostly uses forest products for household consumption. The study also revealed that there have been some changes in forest product manufacturing capacity in the last 5 years. Manufacturing of forest products such as polesiii, logs, firewood, fodder grasses, etc., has declined mainly due to restrictions by the local or central government. The production of crops that are important for Tianeti such as beans and potatoes has increased in the village Zaridzeebi as a result of an agricultural program initiated by the Georgian Government in 2012. Government subsidies have primarily been responsible for allowing the local population to increase production. The volume of products used for livestock feed collected in the forest and harvested from agricultural lands has not changed. The amount of the firewood collected in the forest has decreased in all of the villages. According to the locals, this is mainly due to the state restrictions, in particular the logging limits and the associated fees. The reduction in the amount of firewood taken from the forest is also related to intensive logging of the forest. According to the local population, forest use rights are given to license holder persons/companies who manage large-scale cutting of trees but these activities are not controlled. Massive cutting of trees in areas has caused the growth of alder trees. In addition, the persons/companies who have been given forest use rights often do not allow the local population to access the forest to collect even fallen wood branches. According to the residents of the village Zaridzeebi, collection of the firewood has also become dangerous due to the increased number of wolves in the area. Conclusions

According to the results of the study, dependence on forest resources in the targeted villages is high and the forest has a vital importance to the communities. As the survey revealed, the gasification process has only recently begun in the study area, so there are currently no alternative sources of energy and timber continues to be the main source of energy for heating and cooking. Considering the fact that Tianeti is a mountainous area and the winter period is longer than in the lowland villages, it is easy to understand how important access to the forest is for locals. The results of the study also showed that the most common type of income activity in the villages is cattle breeding. Revenues from these activities can be considered the main income source for the population in the study area; the share of the revenue generated from the sale of dairy products is greater than the share of all other income sources, therefore dependence on pastures is high. The production of animal products is directly linked to forest resources because, as the survey showed, fodder grasses for livestock grazing is one of the most frequently collected forest products, so the population actively uses the forest in this context as well. The forest and forest products are essential to the livelihoods of the population in the study area. However, there are factors hindering the use of these resources such as fees for the use of forest resources set by the government, regulations and prescribed forest use practices, and the low median income of the region which limits the amount of timber and other forest resources the population can purchase. Additionally, illegal logging threatens the forest resources and affects the geologic conditions of the region as well.

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1. Introduction 1.1 Forests and forest use in Georgia

Forests are one of the most valuable natural resources in Georgia. In Georgia, the total area covered by forests is approximately 2.8 million hectares, which is about 40% of the country’s territory. The total timber resources in the Georgian mountains are estimated at 451.7 million cubic meters. 97% (2915.8 hectares) of Georgia’s forests are located on mountain slopes, the rest 3% are low-lying and flood plain forests in the Kolkheti region and in the western part of Georgia. 95-98% of the Georgian forests are of natural origin. Characteristics of their composition, size, growth and development, etc. create a rich biological diversity – up to 400 tree and shrub species are registered in Georgian forests. The large number of endemic timber tree species indicates a high diversity of dendroflora. Among endemic species, 61 species are endemic to Georgia and 43 are endemic to the Caucasus. The tree types are distributed as follows: Beech make up 1060 thousand hectares (46.6 %), Fir make up 161.5 thousand hectares (7.1 %), Pine make up 91.0 thousand hectares (4.0 %), Oak make up 241 thousand hectares (10.6 %), Alder make up 125.1 thousand hectares (5.5 %), Chestnut make up 72.8 thousand hectares (3.2 %), Hornbeam make up 220.6 thousand hectares (8.8 %), Spruce make up 102.0 thousand hectares (4.5 %) and other types make up 220.6 thousand hectares (9.7 %). Georgian forests provide shelter and migration routes for many animal species, thereby facilitating the maintenance of genetic diversity. Georgia lies in one of the Earth’s most biologically rich regions. The Caucasus region covers one of WWF’s (World Wide Fund for Nature) 35 “priority places.” Moreover, Georgia is located within the two “biodiversity hotspots” – the Caucasus and Iran-Anatolia - from the 34 “biodiversity hotspots” identified by Conservation International as the richest and most threatened reservoirs of plant and animal life. The remaining forest massifs in the Georgian mountains are the last untouched forests in the moderate climate zone of the Earth, thus they have a significant global importance. The distribution of forest cover is unequal in Georgia; there are regions rich with forests (Abkhazia, Adjara, Svaneti, Racha, Borjomi gorge, Akhmeta and other regions), and other regions where the forest cover percentage is below 10% (e.g. Dedoplistskaro, Ninotsminda, Akhalkalaki, Gardabani, Tsalka, Kazbegi). Georgian forests meet various demands of the national economy and support rural populations by providing necessary forest resources. They provide timber for industrial and household use, as well as non-timber resources such as medicinal plants. But most importantly, the forests fulfill environmental and social functions such as, water regulation, soil protection, climate regulation, balneologicaliv, sanitary-hygienic, aesthetic, recreational, and other useful services which having a great significance for the State. Georgian forests not only preserve the unique biological diversity of the region, but also ensure the continuous provision of vital direct or indirect benefits and resources to the population. This in turn facilitates the development of different industries, supports the wellbeing of the population, assists in poverty alleviation and creates favorable conditions for the sustainable development of the country. The Georgian forest is owned by the state. The National Forest Agency, which is a legal entity under public law under the Ministry of Environment and Natural Resources Protection of Georgia, manages the forests. The Agency manages the State Forest Fund, regulates the forest use, facilitates forest maintenance and rehabilitation, and controls the State Forest Fund area. This agency is also responsible for issuing tickets for timber production and forest use. The forest within the Protected Areas boundaries is managed by the Protected Areas Agency of the same Ministry.

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1.2 Rationale: The importance of Forest Dependency Study in Georgia

The Georgian forest plays an essential role in the economic and social structure of the country. The rural population depends greatly on their surrounding resources for subsistence use to support their livelihoods. Georgia’s forests provide timber for industrial and household use, as well as non-timber resources such as medicinal plants. The welfare of the population in Georgia, as in many other countries, is largely dependent on access to natural resources. Access to these resources is particularly important in areas where it is difficult to support a business for two main reasons, namely, the hiring system and the lack of proper infrastructure. For the population living in areas with tough terrain and challenging climatic conditions, where agriculture is less viable, access to forest and environmental resources is especially important to support their livelihoods. The study on Dependency on Forest Resources conducted by IUCN in 2012 revealed that when it comes to energy sources (heating, cooking) the local population is still mainly dependent on timber forest resources. The same results were presented by the Study on Economic and Social Impact of Unsustainable Forest Practices and Illegal Logging on Rural Population of Georgia, carried out by Vasil Gulisashvili Forest Institute under phase 1 of the ENPI FLEG program. This study provides opportunities to evaluate the dependence of the local population on the access to forest resources. The study was designed to determine the economic status of the rural population, major challenges, income structure, access to markets and other important aspects related to forest resource dependence and access. The research is also important in terms of identifying the factors hindering the welfare and development of forest dependent rural populations. Further, the survey results and the information obtained will support central and local authorities’ efforts to promote the wellbeing of the population that is significantly dependent on forest and environmental resources. Additionally, there is a substantial lack of data and information available in Georgia related to the dependence of local populations on forest resources. This data is a key factor in supporting decision-makers in planning the development of the forest sector in a way that satisfies the local needs, while ensuring sustainability. This study, which provides the most recent and accurate data on the matters stated above, will serve as the baseline for decision-making processes.

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2. Methodology 2.1 study area

The European Neighborhood and Partnership Instrument East Countries Forest Law Enforcement and Governance II Program (the “Program”) is aimed at putting in place improved forest governance mechanisms through the effective implementation of the main priorities set out in the St. Petersburg Ministerial Declaration and Indicative Plan of Actions for the Europe and North Asia Forest Law Enforcement and Governance (ENA- FLEG) process. This Program specifically covers seven countries of the ENA Region, including six members of the European Neighborhood Policy Instrument (ENPI) – Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine, and the Russian Federation. The Program supports selected pilot activities to be implemented with the active involvement of governments, civil society and the private sector. The goals of the study in Georgia were:

• To document factors and reasons that may determine drivers of sustainable forest management in forest-dependent communities;

• To measure the true value of forests to rural communities;

• To provide quantifiable information for the use of decision makers in order to improve governance;

• At the local level: to identify the socio-economic conditions of the Mtskheta-Mtianeti Region, defining the main factors influencing the development of the local population and identifying/analyzing the dependence level of poor residents on forests and other natural resources, cattle breeding, etc. With the goals of the study in mind, Tianeti Municipality, which is located in Northeastern part of Georgia, Mtskheta-Mtianeti Region was selected for the fieldwork. This region is characteristic of Georgia where the wellbeing of the majority of the population is highly dependent on agriculture, forest and other natural resource use due to the geographic and climatic conditions of the region and the difficult socio-economic situation. The following five villages were selected for the study: Sakdrioni, Artani, Zhebota, Chabano and Zaridzeebi. The map of the region and the geographic location of the targeted villages is provided below. Map 1: Region and targeted villages

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2.2 Method of sampling

For the purposes of the study the villages were selected on the basis of the following criteria: • Distance from the forest and access of local residents to forest resources; • Socio-economic conditions of the rural population; • The existing infrastructure and the distance of the villages from markets; • Population density and migration level. Considering these criteria, as noted above, five villages of Tianeti Municipality were selected for the research. Table 1 - The selection criteria for each village.

Village Sampling criteria Sakdrioni Big village, near a forest, far from the district center (markets)

Artani Near a forest, poor population, high migration Zhebota Near the district center (markets), low migration Chabano Near a forest, with less poor population Zaridzeebi Near the central road

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2.3 Number of households

Two research methods were used in this study: household interviews and focus group discussions. Sampling of the households For the household interviews, there were a total of 200 households interviewed in each of the communities, which were chosen according to the selection criteria. The number of the selected households was about 20% of the total households of each village. In order to increase the level of representation, the proportion of sampled households in the village Artani was relatively high as the number of households in this village is very small compared to other villages. The households were sampled by interviewers on several streets of each village based on random selection. The beginning of the street was considered the starting point and every third household was selected for the interview. The person interviewed in each household was the permanent resident or the person who had been in the village the longest and was aware of the issues covered by the questionnaire. However, priority was given to any person who was involved in public service (e.g. a civil servant, etc.). Table 2 - The number of households and the number of sampled households in each village.

Village Number of Number of % of sampling Code of village in households sampled database households

Sakdrioni 280 50 17,9 1

Artani 37 15 40,5 2 Zhebota 339 60 17,7 3

Chabano 159 35 22,0 4

Zaridzeebi 178 40 22,5 5

Focus groups Several factors were taken into account for the focus group selection. More than 10 people were selected for each focus group. As for the composition of the focus groups, each focus group consisted of people of different ages, and a gender balance was followed as much as possible. Focus group participants were selected on the basis of their occupation in order to provide balanced representation of occupations (civil servants, doctors, teachers, librarians, entrepreneurs, self-employed farmers, housekeepers, pensioners, unemployed people, etc.). It should be noted that the local government actively provided assistance in the formation of the focus groups as well.

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Table 3 - The size of each focus group by age and gender distribution.

Zaridzeebi Zhebota Artani Chabano Sakdrioni

Group Size 12 11 12 13 12 Age Composition (years) Min age 24 26 24 27 25

Max age 78 63 78 78 78

Average age 48,0 45,9 48,2 48,0 47,1 Gender Distribution (%) Female 41,7 54,5 50,0 46,2 41,7

Male 58,3 45,5 50,0 53,8 58,3

2.4 Timeline

Household interviewers were conducted from July 15-22, 2014. Table 4 - The number of conducted household interviews by dates.

Date Interviews (quantity)

07/15/14 39

07/16/14 53 07/17/14 34

07/18/14 37

07/19/14 18

07/20/14 18 07/22/14 1

As for the focus group interviews, interviews on July 15, 2014 were conducted in the village of Sakdrioni, interviews July 16, 2014 were conducted in Artani, interviews on July 17, 2014 were conducted in Zhebota, interviews on July 18, 2014 were conducted in Chabano, and interviews on July 20, 2014 were conducted in Zaridzeebi. The average length of the household interviews was one hour, and two to three hours for the focus group interviews.

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2.5 Field implementation and problems

For the first step of the survey implementation all Program participants were trained in Chisinau, Moldova, from March 31 to April 2, 2014. During the training, detailed explanations were provided about the study objectives, methodology, expectations, etc. and the questionnaire was finalized. Mock focus group interviews were conducted, in which participants were divided into several groups. Within these groups, special attention was paid to the skills of the moderators. No significant problems occurred while conducting the fieldwork. Both the local government representatives and the local population cooperated with the field personnel and there was a high level of engagement as a result of the locals’ interest in the research topics and goals. There was only one case when a family refused to participate in the survey but this was due to a time constraint. As mentioned above, there were no technical problems in the survey implementation process. There were however, several instances in which respondents avoided questions about fuel wood/firewood because of the issue of illegal wood extraction, which sheds light on the need for more fuel wood/firewood than is legally allowed.

2.6 Local unit conversion

As mentioned above, the data was collected in two ways: • Face to face interviews with households; • Focus group interviews.

One focus group was conducted in each village. Almost all of the groups included a local government representative who assisted in the formation of the focus groups and were more informed about the specific villages in some cases and could therefore provide important information to the field personnel.

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3. Study area characteristics 3.1 Brief history of villages

Tianeti municipality is a high mountain region in Eastern Georgia. The center of the municipality, Tianeti, is located as 1100 m above sea level. The neighboring municipalities are (from west-north and west), Akhmeta (from east and north-east) and . The town of Tianeti is 78 km away from Tbilisi. The municipality consists of 2 towns and 81 villages. The total population of the municipality is 13,108 out of which, 4 568 people live in towns and 8,540 people live in the villages. The average population density is 15 persons per square kilometer. 98.3% of the population is Georgian, 1 % is Osetian. The rest of the population consists of various ethical groups (see table N6). According to official statistics, 54% of the population is considered to be self-employed (if they own one hectare or more of land for agriculture). Many villagers are not able to cultivate their lands due to the economic problems and the high prices on fuel. Instead, most of the locals cultivate small plots of lands next to their houses (mainly yards) where they grow vegetables. The main products produced by the municipality are agricultural products, such as potatoes, beans and products from domestic animal husbandry (from cattle, sheep, pig, and poultry farming). The share of the national GDP from this sector of the municipality is 0.01%. There are 12 active enterprises in the municipality producing products with a total value of 17 thousand Gel. The total amount of employees in these small enterprises is only 35. The total agricultural land in the municipality is 20,859 hectares, with 9,448 hectares of arable areas, 522 hectares of perennial plants, 710 hectares of grassland and 2,017 hectares of grazing land. The total land fund of the municipality is 90,629 hectares, 91.3% of which is still under state ownership. Forests cover 60.3% of that area and 22.2 % is grazing land. The villages in Tianeti region are mostly very small and located in high mountains. The tourism potential is high in the region as there are many historical monuments in villages. However the infrastructure is less developed with, for example, ongoing central roads construction. (Official website of Tianeti municipality: http://tianeti.org.ge) The information about the selected villages is given below: Sakdrioni (formerly “Merekani”) is located in the municipality of Tianeti, Mtskheta-Mtianeti Region, in the community of Khevsurtsopeli. The village is located in the Ertso basin at 1060 meters above sea level, 27 kilometers away from Tianeti. Artani is the former name of the villages of Zemo (Upper) Artani and Kvemo (Lower) Artani in Tianeti Municipality. • Zemo (Upper) Artani is situated on the right bank of the Lori River, at an altitude of 1180 meters. It is 13 kilometers away from Tianeti. • Kvemo (Lower) Artani is situated on the right bank of the Lori River, at an altitude of 1170 meters. It is 12 kilometers away from Tianeti. Zhebota (formerly Maturiantkari) is situated in Tianeti Basin, on the left bank of the Lori River, at an altitude of 1160 meters. The village is a kilometer away from Tianeti. Chabano (located in Akhalsopelicommunity) is situated on the western slope of the ridge, on the 17

banks of the Sagami River (left tributary of the Lori River), at an altitude of 1180 meters. The village is 8 kilometers away from Tianeti. Zaridzeebi (former Chitaurtkari) is the community center is on the eastern slope of the Kartli ridge, on the banks of the Verkhveli River (Lori River basin). The village is 1300 meters above sea level, and 7 kilometers away from Tianeti.

3.2 Demographics Table 5- Age and gender distribution of the population in the selected villages. (The data were provided by the administration of Tianeti municipality. There is no other official information about the age and gender distribution of the region. The info will be available after Census 2014 is conducted by GEOSTAT). (Source - Administration of Tianeti municipality)

Village Number of population Gender Age Total distribution distribution

Male Female 0-6 7-14 15-18 18-65 65+

Sakdrioni 648 366 282 31 41 20 434 122

Artani 90 50 40 7 5 2 51 25

Zhebota 719 359 360 48 51 26 461 133

Chabano 347 183 164 9 14 8 275 41

Zaridzeebi 462 247 215 17 22 17 282 124

As the table above reveals, difficult socio-economic conditions in the region have encouraged migration. The village of Artani, which was selected as a village with a poor population located near the forest, is the smallest by population compared to other villages as a result of this phenomenon. North of the village of Artani, there are 16 similarly small villages that are no longer inhabited. Considering the unstable socio-economic condition of the village, Artani is in danger of becoming uninhabited as well. Regarding the ethnic composition of the villages, the majority of the population in the selected villages are ethnic . Table 6 - Number of national minorities in the selected villages (by persons)

Village Number of population

Ossetian Russian Armenian Aisor Azerbaijanian Greek

Sakdrioni 2 1 2 0 0 2 Artani 1 0 0 0 0 0 Zhebota 4 0 0 0 0 0 Chabano 1 0 0 0 0 0 Zaridzeebi 0 1 0 0 1 0

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3.3 Infrastructure availability

The study revealed that there is still a significant problem with improper infrastructure in Tianeti Municipality, which in turn leads to unfavorable socio-economic conditions (high level of migration, low level of employment, low income, etc.). Table 7 - Availability of different types of infrastructure in the villages

Mobile Internet* Village Road Electricity Gas Water Network*

Sakdrioni Yes Yes Yes Yes Yes No

Artani No Yes No No Yes No

Zhebota Yes Yes No Yes Yes Yes

Chabano Yes Yes No No Yes No

Zaridzeebi Yes Yes No Yes Yes No

* Source: Tianeti Municipality As the above table shows, natural gas is not available in the majority of the villages, which increases local peoples’ dependence on forest resources, specifically on firewood. Winters are severe and long in the municipality. The population needs fuel for heating 10 months out of the year, and fuel for cooking throughout the entire year. Because firewood is the cheapest and the most available resource, it is widely used for heating and household purposes. It should also be noted that a gasification program has begun to take place in Tianeti Municipality. Gas pipelines were being constructed in the central streets of the municipality center during the research period. According to the municipality officials, the gasification process will continue and will reach all the districts and settlements of the region when completed. However, during focus group discussions, it became clear that the community does not see gasification as a way of reducing dependence on wood in the region. The gasification process includes installing pipes in the public areas connecting the streets and villages to each other. But residents must pay to connect the gas pipes from the nearest street to their house themselves, which costs 300 to 600 Gel, depending on the distance from the house and the street. Although the upfront cost of this installation is quite expensive for the residents, it can also be paid in installments of 25 Gel per month. However, locals believe that the fee for the natural gas supply is too high, as most of the rural population is unemployed and does not have much cash revenue. Tariffs on gas consumption are higher in Tianeti than in Tbilisi, the capital of Georgia. This is due to additional fees on transportation, distribution, etc. The tariff system is based on a “costs plus” regulation principle and tariffs are set for each company individually. The company, ‘SocarGas Georgia,’ that is responsible for the gasification process has added installation fees in addition to the regular tariff. According to the population, due to the high price of gas, the rate of firewood consumption for heating purposes will likely not reduce significantly, even if gasification becomes available for the entire region. Based on the results of the study, central water supply is a major problem as well. Furthermore, almost none of the villages have access to Internet with the exception of the village of Zhebota, which is located near the regional center. Central road reconstruction was taking place during the survey period. A large part of the road leading from the capital city to the region is being restored at the moment, and the restoration of roads to the villages is expected to be completed by 2015. 19

3.4 Economic data

According to the survey objectives, we have tried of find information on the poverty level in the communities of the region, but unfortunately, there was no official statistics. GeoStat estimated national poverty indicators only at the country level. There is no available information about poverty on the municipal level. As for employment levels, the low level of employment is the main problem for the local population. As is presented in Table 8 below, people are mostly employed by the public sector, although this share in total population is quite low. Poor infrastructure is a major factor hindering investment and job creation.

Table 8. Distribution of the population according to the employment status and the number of households with social assistance1

Beneficiaries Active of subsistence Village Employed Unemployed population allowance (Households)

Non-public Public sector sector

Sakdrioni 555 91 62 402 117

Artani 50 1 8 41 16

Zhebota 442 27 62 353 159

Chabano 179 1 9 169 61

Zaridzeebi 406 10 22 374 94

3.5 Major economic activities

It should be noted, that there were no observed cases associated with the provision of assistance for the villages regarding forest services or forest related activities. Due to the lack of jobs, the majority of the population work on their own farms. As for those who are employed, many engage in small seasonal agricultural activities in addition to working in the public sector. The daily allowance of the population involved in agricultural activities varies from 20 to 40 Georgian Lari.

1Administration of Tianeti municipality.

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Table 9. Daily allowance of people involved in the agricultural activities by gender

Wage (GEL per Zhebo Chaba Zarid diem) Sakdrioni Artani ta no zeebi Male Female Male Female Male Female Male Female Male Female

Minimum 25 25 25 25 20 20 20 20 20 20 Maximum 40 40 30 30 25 25 30 30 25 25

Figure 1 shows the minimum and maximum price of high-quality agricultural land per hectare by villages. In addition, the prices are given for the agricultural lands that are non-degraded and good for primary crop cultures and are located a maximum of 1 km away from the main road or the city. Figure 1 - Minimum and Maximum Price of High-quality Agricultural Land per Hectare

Based on the figure above, the lowest prices for agricultural land are in Artani Village. The prices are almost identical in all other villages. As for the major consumer products, it can be concluded that the main agricultural products are beans and potatoes in all selected villages. Due to higher prices, the locals prefer beans over potatoes. The price of beans varies from 2.5 to 4 Georgian Lari depending on the season. As for animal products, the main product appears to be cheese, with prices ranging from 5 to 8 Georgian Lari per kg (see table N19). As for forest products, the price of mushrooms varies from 2 to 4 Gerogian Lari, depending on the mushroom type.

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3.6 Seasonal calendar Table N10 - Periods of collecting and selling basic forest products by each village (X means collection and Y is sale).

villa ma apri ma jun aug sep De ge product jan feb rch l y e july ust t oct nov c

Fodder grass/livestock

browse x x x x

Fuelwood/firewood x x x x x x X

Sakdrioni Wild apple xy xy Wild pear xy xy

Fish x x x x x x x x x x x X Fodder grass/livestock browse x x x x x x

Fuelwood/firewood x x x x x x x x x x X

Artani Poles /logs/sawn wood x x x x x x x x x x x X

Thatching grass xy xy xy xy

Wild pear xy xy

Cornelian cherry x x x x x x x x Fodder

grass/livestock browse xy xy xy xy

Zhebota Fuelwood/firewood x x x x x x x

Mushroom xy xy xy xy xy xy xy

Fodder grass/livestock browse xy xy

Fuelwood/firewood xy xy x x x X

Thatching grass y y y y y y x x x y y Y

Chabano Wild apple xy xy Wild pear xy xy Wild rose berries xy xy xy xy xy xy xy xy xy xy xy Xy

Fodder grass/livestock ebi browse x x x x x x Zaridze 22

Fuelwood/firewood x x x x x x X Mushroom xy xy xy xy xy xy xy Thatching grass y y y y x x x x xy xy y Y Wild apple xy xy Wild pear xy xy Wild rose berries xy xy

As the table shows, the forest resource used most by the Tianeti population is firewood, as it is the main and only source of fuel. Firewood is collected throughout the entire year. This is mostly characteristic of the village of Artani, which is in the most difficult socio-economic situation of all of the villages in the region, and the population’s welfare is highly dependent on forest resources. It should also be noted that the communities collect firewood for household consumption. Only Chabano, which is not a very poor village, is involved in the sale of firewood. At the same time, the close proximity to the forest allows residents to gain additional revenue from the sale of firewood. The residents of Tianeti are mainly engaged in cattle breeding and the income received from the sale of the livestock represents the main source of the income for them. As a result, people are using the forest and forested land for pastures. As in the case of firewood, grasses for hay are collected in the forest and are mostly used for household consumption. It should also be highlighted that in the focus groups, the population expressed dissatisfaction with the restrictions regarding the use of pastures imposed by the forest use licensers. Furthermore, another main source of the income for the population is generated by the collection and sale of wild berries and mushrooms found in the forest. Everything mentioned above clearly highlights the strong dependence of the population in the selected villages on access to forest resources.

3.7 Major markets and market access

As for access to markets, the population mainly uses the markets located in the regional center (Tianeti). Merchants also frequently come to the villages to buy agricultural and forest products from locals at lower prices than the market price. Table 11 shows access to the markets and the distances and time required to reach them by car. The table reveals that despite of the short distance from Artani to the regional center, it takes a long time due to the damaged roads. Table 11 - Access to markets

Facility Sakdrioni Artani Zhebota Chabano Zaridzeebi

Distance Time Distance Time Distance Time Distance Time Distance Time

(km) (min) (km) (min) (km) (min) (km) (min) (km) (min)

District market 30 40 12 50 3 10 7 18 15 7

Market for basic consumer goods 30 40 12 50 2.5 7 7 18 15 7

Market for 30 40 12 50 2.5 7 7 18 15 7 agricultural 23

products

Market for non- timber forest products 30 40 12 50 2.5 7 7 18 15 7

Market for timber 30 40 12 50 3 10 2 10 15 7

3.8 Major land covers and land uses

In 1992 agricultural reform began in Georgia. As a result of this reform, a significant part of agricultural land was transferred from the state to the people in order to satisfy the demand for agricultural land among almost every segment of the population. However, the reform has not been implemented successfully and did not achieve the expected results. Overall, the state has transferred 760 thousand hectare of agricultural and arable land to private ownership. Approximately 460 thousand of agricultural land remained, most of which the state handed over to be leased. (Economic Policy Research Center – Conditions of Land market, 2013: http://www.csogeorgia.org/uploads/library/115/Report-geo.pdf)

Table 12 shows the distribution (in hectares) of agricultural and arable land and non-agricultural land among private and state owners in the selected villages.

Table N12 – Distribution of community lands in the selected villages by the land use types (hectares)(source: Administration of Tianeti municipality)

Non- Agric Perma Green Arable agricu Village ultural nent house land ltural land crops s land

Total Private State Total Private Total Private State Total Private Total Private State

Khevsurtsopeli 4076 964 3112.6 1413 914 499 50 36 14 0 0 0 312 0 312 (Sakdrioni)

Artani 2302 808 1494 228 228 0 15 15 0 0 0 0 341 0 341

Zhebota 1165 541,5 625,5 553 529,5 23,5 12 12 0 0 0 0 322 0 322

Akhalsopeli 2427 652 1775,0 613 563 50 19 19 0 0 0 0 383 0 383 (Chabano)

Zaridzeebi 3105 1015,8 2089,2 791 646 145 70 70 0 0 0 0 162 0 162

Table 13 - Average land area in square meters, controlled and used by households.

Village Controlled Not controlled Open access

Sakdrioni 16946.0 0.0 0.0 Artani 19433.3 0.0 0.0

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Zhebota 8710.0 0.0 0.0

Chabano 15328.6 0.0 0.0 Zaridzeebi 12687.5 0.0 0.0

3.9 Description of conservation areas

There are no protected areas in Tianeti Region.

3.10 Tenure and governance

The total land area of Georgia is 69.7 thousand hectares (ha). 3025.8 thousand ha (39.7%) of the total land is agricultural land. The total amount of arable land is 801.8 thousand ha, which consists of 26.5% of agricultural land, grassland covers 143.8 thousand ha (4.8%) and 1796.6 thousand ha (59.4%) consist of pastures. 20.1 thousand ha (0.7%) of the land with houses, buildings and yards is registered as agricultural cultivation land as well. 4602.6 thousand ha (60.3%) of the territory of the country is covered by forest shrubbery, water areas, roads, buildings and other unusable areas are characterized by rocky soil, sandy soil, canyons, erosive landslide areas, glaciers, and cemeteries, for example. As previously mentioned, the government of Georgia initiated agricultural land reform in 1992, through which a significant part of agricultural land was handed over to households from the state. As a result, the land has been divided into private and state property, which includes both agricultural and non-agricultural lands. Land management and ownership depends on the type and status of the land and is managed by the government, the private sector or legal entities. Households can lease or buy the land resources depending on the status of the land. As for forest resources, the Georgian Forest Code (hereinafter - the Code) is one of the main legal documents regarding the management and protection of forests in Georgia. Adopted by the Georgian Parliament in 1999, the Code regulates the legal relationships related to forest tending, protection and restoration and the use of forest resources. The main goals of the Code (Forest Code No 2124-IIs, 22/06/1999) are: protection of human rights and law enforcement in the relations within the forestry field; forest tending and restoration; environmental conservation and protection; defining the rights and obligations of forest users; satisfaction of the demand of the population on forest resources, using the forest resources available, and defining the main principles of forest management in Georgia. The Code provides an institutional framework on forest governance. The State Forest Fund, which is regulated under the Code, includes the local forest funds and is used for (a) Protected Areas (PAs), consisting of the areas within the state forest fund, which are defined under the Law on Protected Areas System of Georgia and (b) State Forest Fund areas outside of PAs, and is mainly used for wood. The Legal Entity of Public Law – the National Forestry Agency under the Ministry of Environment and Natural Resources Protection of Georgia generally manages the State Forest Fund. The National Forestry Agency regulates the forest use, facilitates forest maintenance and rehabilitation, and controls the State Forest Fund area. This agency is also responsible for issuing tickets for timber production and forest use. In 2013 the Georgian Government made changes to “the resolution of Georgian Government on approval of the rule of forest usev” by which there was a limit for timber was established, which is 7 cubic meters per year per household. Further, the provisions regarding the forest use ticket were changed to become valid within 30 days from the date of issue. Before, the forest use tickets were issued for locations far from where people lived, so transporting the timber was difficult and costly. Additionally, after cutting, the individual in possession of the forest use ticket only had 24 hours to take timber from the forest, which was insufficient. The state limit of 7 cubic meters of firewood production has been increased to 15 cubic meters in mountainous 25

areas of the country, and the tickets issued for the local population to collect firewood are now valid in State Forest Fund logging areas closest to where the person lives. The new system of issuing tickets also provides equal opportunities and access to forest resources. (N46 Resolution of Georgian Government 10.01.2014 :http://www.government.gov.ge/files/382_39863_409202_46100114.pdf) The Agency of Protected Areas of the Ministry of Environment and Natural Resources Protection of Georgia manages the forests within the boundaries of the Protected Areas. The forests in the autonomous republics of Adjara and Abkhazia are managed by their respective institutions. The Code outlines special provisions on local forest management as well. The local government manages the local forests through the appropriate governmental units, under the jurisdiction of the Georgian Legislation. (However, these provisions have not been fulfilled at the local level, as no local municipalities currently utilize forest management functions because these provisions are centralized and the forest is fully managed by National Forestry Agency at the central governmental level.) The existing forest management legal framework and prescribed practices are currently facing challenges. The National Forest Concept for Georgia (hereinafter - the Concept), which was approved by the Parliament of Georgia in December 2013, serves as a basis for the development and improvement of forest sector legislation, other related policy documents, and a new institutional framework. This document has highlighted the urgent need to change the primary forest law and secondary legislation, as they do not correspond with the principles of the sustainable management of forests. Due to errors and inconsistencies in the regulatory documents, the documents contradict each other and other national legislation related to forestry. The Concept states that forest management bodies cannot ensure effective management of forests due to restricted human and financial resources. Furthermore, due to the weak municipal governance, the forests have not been transferred to local government units. The aforementioned legislative shortcomings, absence of an adequate mechanism, improper administration and recruitment policy are the main reasons for poor enforcement. Following this, the Concept identifies the need for the development of the new Forest Code – the main law governing the forestry sector and secondary legal acts, which will be put in compliance both with the international standards and national legislation. The Concept identifies the need for the establishment of organizations that will ensure proper administration and long-term development of the forestry sector (National Forest Concept, Decree of Georgian Parliament №1742-IS, 26/12/2013).

3.11 Government and other development/conservation projects

According to the decree of Georgian Government on the “Development Strategy of Mtskheta-Mtianeti Region 2012-2017” adopted on September 5, 2012, the following are to be implemented in order to support economic development in Tianeti (as well as in the whole region): a) Raise public awareness of modern technology to improve modern entrepreneurial skills of the population; b) Overcome product distribution challenges; c) Develop food processing industries and businesses. According to the same document, the priorities of Tianeti development (and the region’s development) are as follows: ● Improvement of public infrastructure (roads, sewage, electricity); ● Support agricultural development. Specifically, development of horticulture, crop production, fruit and vegetable production, cattle breeding, sheep breeding, bee-keeping, fish farming, and silkworm breeding in Tianeti. In order to support the development of sheep breeding, the government must support the development and proper functioning of roads to Kakheti and . In addition, the establishment of a regional training center for farmers is considered a part of the development process. In order to provide all municipality farmers full access to agricultural machineries, expanding 26

agricultural machinery fleet of the mechanization service centers and providing other forms of support are planned by the government. Other priorities in the strategy include: introduction of a wide variety of irrigation methods, reconstruction and improvement of the irrigation systems, implementation of disaster preparedness and risk reduction measures (in flood and avalanche areas), protection from soil erosion and increase in erosive soil productivity, facilitation of the establishment of multi-functional processing factories, establishment of farm and agro-service centers and farmer centers equipped with modern technology. ● Tourism development and the subsequent creation of jobs and increasing local revenues are important issues. The following activities are planned to achieve these development goals: develop a variety of tourism products, provide high quality tourism infrastructure, preserve wildlife and cultural heritage, provide training and employment of highly qualified personnel in the tourism sector, institutional support for tourism development at the regional level to support local authorities in attracting investments, to launch a study on tourism potential, registration and creation of a database of tourism potential, reduce region specific problems which stimulate migration and fostering favorable conditions to entice people to return to the region. ● Social development, including improvement in healthcare, education and social conditions; ● Environmental protection and natural resource management; ● Development of human resource capacities, specifically, providing access to various training programs. Special attention should be paid to the self-employed sector of the region and improvement of the qualifications of people employed through entrepreneurship. ● Use of mineral and fresh water; ● Use of medicinal plants and support for investments in this field.

The priorities of municipal development in Tianeti Region are: rehabilitation of agricultural production enterprises, development of tourism and small hydro power plants, improvement of public infrastructure (roads, sewage, and electricity)

3.12 Calamities

Tianeti municipality is one of the mountainous regions where environmental stressors are threatening the landscape of the region. The region is prone to many dangerous geodynamic processes such as floods, landslides, downpours, mudslides, etc. For the last several years, these processes have become more and more frequent, causing increased damage to properties and other areas, and frequent human casualties. A few dozen villages have been abandoned, and the psychological state of those who have remained in the region has been greatly affected by these events. Periodic activation of geological processes is dangerous to the population and can be destructive to agricultural lands, road infrastructure, etc. Anthropogenic activities such as intensive logging and the creation of a reservoir, have contributed to the aforementioned geodynamic processes as well. As presented on the map, landslides and mudslides are widespread in the region. Mudslides are more characteristic upstream of the Lori River and of high mountainous areas. Landslides mostly occur in the lower zones. Vulnerability to geological events is caused by landscape and geological conditions and is accelerated by anthropogenic impacts.

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Map 2: Communities according to geodynamic process activities (National Environment Agency – Geological processes development in Tianeti municipality for 2012-2013)

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On June 30, 2014 the National Environment Agency initiated a new project to assess geological risks in the region, map risk, prepare recommendations for sensitive areas and establish a monitoring network.

4. Results and discussion 4.1 Income share by source

As the survey showed, the most important income source for the targeted communities is income from animal products (24%). Figure N2 presents income by sources showing income from animals, income from wages (23%) and other income sources (22%) including pensions (76%), remittances (10%), support from the government (8%) and gifts/support from friends and relatives (6%). Income from wages is the aggregate income from public service and transport sectors. Other jobs are mostly seasonal and do not last through the year. Livestock development is characteristic of the Tianeti Municipality due in part to the terrain and climate conditions, but also to the relatively high value of animal products compared to that of plant products. As Figure N2 shows, the net income from livestock is negative because the revenue received does not cover the associated costs. Still, the aggregate income from animal products is the most important source of income for the region. The total income related to forest activities makes up only 14% of the total income. Figure N2 also shows that income from business is very low (2%). Only 6 households out of the 200 households interviewed through the survey received income from their business. The reasons for this are related to improper infrastructure, distance from the market, low solvency, etc. Figure N2 - Income by Source

Although the livelihoods and income of the local population in Tianeti Municipality is highly dependent on animals, agriculture and natural resource (forest resource) use, there are social, economic and demographic differences between the villages in the Municipality. Along with other factors, the differences between the villages are due to the distance from the Municipality center and central road and the infrastructure. As the table 14 shows, the population is mostly engaged in small agricultural activities. Employment in public service compared to other activities is very important to the region and should be stressed, however, the employment rate in this field is very low. 29

Table 14 - Number of the people ages 16 and older involved in various economic activities during the reporting period (12 months since the survey)

Type of work (sector) Sakdrioni Artani Zhebota Chabano Zaridzeebi Total

Small-scale agriculture 81 36 120 52 70 359 Forestry – transport 1 1 Fishing 2 1 3 Transport 2 4 1 4 11 Carpentry 1 1 1 3

Construction 2 0 2 Mechanical 1 1

Service industry 3 1 3 3 10

Government employee 8 1 6 6 14 35

Tailor, shoe maker, or similar 1 1

Domestic work 1 1 2 4

Guard (non-forest related) 3 3 4 10

Painter 1 1

Cook 1 1

Road construction/ maintenance 1 1 2

Midwife 2 2

Craftsman 1 1 1 3 Other 21 12 33

According to the study, it can be concluded that proximity to the forest is an important factor for the wellbeing of the low- and middle-income population. As figure N3 presents, the revenues of the Sakdrioni, Artani and Chabano population exceeds the income of the population in the villages of Zhebota and Zaridzeebi. Forest resources use and the benefits of natural resource use are high in the three villages mentioned above. The wellbeing of these three villages is highly dependent on agriculture and livestock. The net income from livestock is calculated as the value of the sold and consumed (slaughtered for sale) livestock (in average market prices) in the households excluding the costs of keeping the livestock. Based on the comparison of the data on the income from animal, it can be concluded that the population of the villages mentioned invests in cattle purchase/maintenance for the animal products in order to consume and sell the products to make a profit (see below the data for livestock production, consumption and sales). 30

It should be noted that despite the proximity to the Municipality center, the population of the village of Zhebotahas the lowest income out of all of the villages studied. This maybe caused by two main factors: ● The population uses relatively few forest and environmental resources, as a result of the distance from the forest; ● Less registered agricultural land (see Table 12 and Table 13), compared to other villages, especially considering the number of the people in the village of Zhebota, which exceeds the population in other villages. The total income from business and other employment is negligible. The share of other incomes makes up much more the total income. Figure N3 - The structure of the population income calculated per equivalent adult.

Table 15 shows that the highest share of the income comes from retirement pensions in all communities. Cash assistance from relatives makes up an important share in the income of the population as well. This suggests that a large part of local population has emigrated to live and work. Table 15 - Structure of other incomes calculated by per equivalent adult

Type Sakdrioni Artani Zhebota Chabano Zaridzeebi

Cash assistance from relatives 0.0 186.3 139.7 123.1 182.6

Support from the Government, NGOs, etc. 158.1 0.0 76.4 99.3 96.0 Gifts/support from friends and relatives 4.7 0.0 0.0 133.3 254.4 Pension 1032.7 1064.6 900.9 762.4 787.6

The table indicates that almost all households are engaged in agriculture. While the share of the households producing plant products is much larger than the share of the households producing animal products among the sampled households, the population mostly produces plant products for subsistence while livestock breeding is a more important source of income. 31

This can be seen in Table 17. It should be noted that compared to other villages, there is significantly smaller share of households engaged in livestock production in the village of Zhebota. One of the main reasons for this is the scarcity of land resources, especially grasslands and pastures. Table 16 - Number of the households producing animal and agricultural products

Number of households households sampled village producing animal producing plant households products products

% within sampled % within sampled Number Number number number

Sakdrioni 50 50 100,0 50 100,0

Artani 15 13 86,7 15 100,0

Zhebota 60 46 76,7 59 98,3

Chabano 35 33 94,3 35 100,0

Zaridzeebi 40 40 100,0 40 100,0

. Table 17 - Number of households engaged in the sale of animals and agricultural products

Households Households selling Village selling animal agricultural products products

% within Number % within Number producers producers

Sakdrioni 48 96,0 48 96,0

Artani 10 76,9 9 60,0

Zhebota 18 39,1 7 11,9

Chabano 29 87,9 22 62,9

Zaridzeebi 19 47,5 17 42,5

Table 17 above also shows that the number of the households that are engaged in the sale of animal products is more than the number of the households that are involved in the sale of plant products. This trend is caused by the following factors: ● The geographical location and climate conditions are more favorable for livestock development ● The average price of animal products is considerably higher than the average price of the plant products therefore it is more profitable to produce animal products. The table 18 shows that the revenues from the sale of animal products are 2.9 times higher than the income 32

from the sale of plant products. One of the most important products produced by Tianeti Municipality is cheese. Income from cheese is 1.7 times more than the total revenue received from the sale of plant products and makes up 44.1% of the revenue received from agricultural (animal + agricultural) products. In terms of revenue, one of the most important products is meat. The price of meat is quite high compared to other products. As for plant products, the revenue from the sale of beans and potatoes make up 62.1% of the revenues from the sale of agricultural products and make up 14.9% of the total revenue received from the sale of agricultural and animal products. Table 18 - Data on production, consumption, sales, and revenues from specific products (in GEL)

Average Total Product name Price Produced Sold Used % of sold Income

Animal Products Meat 11,2 5 928 4 680 1 248 78,9 49 360

Milk 1,5 33 846 13 230 20 616 39,1 13 230 Butter 8,3 3 948 819 3 129 20,7 6 025 Cheese 4,9 46 867 31 101 15 766 66,4 148 135

Drawn butter 11,0 831 70 761 8,4 780

Eggs 0,3 75 605 25 170 50 435 33,3 6 246

Wool 2,4 112 0 112 0,0 0

Manure 0,2 1 250 0 1 250 0,0 0

Honey 15,0 670 613 57 91,5 9 195

Sour milk (Matsoni) 1,3 8 712 30 8 682 0,3 24

Cottage cheese 8,4 5 957 2 205 3 752 37,0 22 200

Total 255 195

Agricultural Products

Maize 0,7 53 983 3 950 50 033 7,3 2 505 Wheat 0,7 16 600 7 700 8 900 46,4 5 650 Amaranth 2,0 100 0 100 0,0 0 Fresh maize 0,8 610 30 580 4,9 30

Dry maize 0,9 810 0 810 0,0 0 Oat /plural oats 1,0 500 0 500 0,0 0 Potato 1,1 65 810 26 220 39 590 39,8 28 643 Red beet 1,2 388 10 378 2,6 8 Mung bean 1,0 30 0 30 0,0 0

Bean (Mustang) 3,9 9 910 5 260 4 650 53,1 21 325 String bean 1,4 3 994 515 3 479 12,9 630 33

Kidney beans 3,4 6 096 2 505 3 591 41,1 8 730

Cyser 4,5 2 015 400 1 615 19,9 1 200 Cabbage 0,5 855 15 840 1,8 8 Carrot 3,2 673 0 673 0,0 0 Cauliflower 1,2 46 0 46 0,0 0 Chilli 1,6 876 575 301 65,6 1 714

Cucumber 1,0 4 808 60 4 748 1,2 36 Eggplant 1,0 145 0 145 0,0 0 Garlic 2,6 2 383 660 1 723 27,7 1 820 Ginger 2,0 20 0 20 0,0 0 Lettuce 0,5 5 0 5 0,0 0 Onion 0,9 3 008 235 2 773 7,8 230

Paprika 1,6 535 450 85 84,1 900

Pumpkin 1,0 3 785 1 290 2 495 34,1 1 235

Spinach 1,5 32 0 32 0,0 0

Squash / Zucchini 0,5 889 50 839 5,6 20 Tomato 1,1 10 715 3 130 7 585 29,2 3 946

Radish 0,4 10 0 10 0,0 0

Sweet pepper 1,0 265 0 265 0,0 0

Celery 4,3 224 0 224 0,0 0

Parsley 4,8 486 16 470 3,3 69

Green basil 4,0 141 0 141 0,0 0

Red basil 4,1 101 0 101 0,0 0

Coriander 5,0 524 15 509 2,9 95

Dill 4,9 236 0 236 0,0 0 Mint 4,4 329 0 329 0,0 0 Estragon 3,5 20 0 20 0,0 0 Saffron 4,6 19 0 19 0,0 0

Apples 1,0 25 200 6 945 18 255 27,6 7 685 Peaches 1,0 30 0 30 0,0 0 Pears 0,9 5 360 80 5 280 1,5 80 Grapes 1,2 985 0 985 0,0 0 Cherries 2,2 151 0 151 0,0 0

Sweet cherries 1,9 519 50 469 9,6 75 34

Plums 0,8 19 465 1 180 18 285 6,1 1 054 Raspberries 3,4 899 90 809 10,0 330 Strawberries 3,1 63 0 63 0,0 0 Black currant 2,6 68 0 68 0,0 0 Redcurrant 2,7 476 65 411 13,7 195 Black ash berry/ black rowan 3,0 5 0 5 0,0 0 Quince 1,3 1 870 220 1 650 11,8 221 Fig 2 15 0 15 0,0 0 Tobacco 0,4 110 50 60 45,5 15 Other 19,9 19214 4785 14429 135,1 134 Total 88583

The table 19 shows that the costs of producing agricultural products in these villages are mostly made up of the cost of fuel (30.1% of total expenditures), purchase of seeds/seedlings (27.7%), and rental costs for machinery and equipment (26.6%). It should also be noted that the population of the village Zhebota spends much less money on the production of agricultural products compared to other villages. As mentioned above, this trend is caused by the lack of agricultural land in the village of Zhebota, which limits the local population opportunities to develop agriculture. As for the village of Zaridzeebi, its close proximity to the central road supports the sale of products and facilitates agricultural development. The high cost of labor, machinery and equipment rental, indicates the existence of the well-developed large farms in the village of Zaridzeebi. Furthermore, the high cost of seedlings and saplings for the village of Sakdrioni indicates that plant production is a priority for the rural population there. Table 17 and Table 18 show that all households are engaged in plant production and the sale of plant products is one of the important sources of income for the villagers. 96% of the population is engaged in the sale of plant products. The income from the sales of plant products is 15.6 percent of total income. Table 19 - Costs for agricultural production calculated per household

Item Sakdrioni Artani Zhebota Chabano Zaridzeebi Total

Seeds or seedlings, planting material 122,5 13,0 9,6 25,1 2,0 39,3

Fuel 53,0 91,1 31,6 30,7 38,7 42,7 Manure/ Fertilizers 0,0 0,0 0,8 14,0 1,3 3,0 Insecticides/ herbicides/fungicides 0,0 0,0 0,0 2,7 0,0 0,5 Hired labour 6,0 20,0 4,3 4,3 52,8 15,6 Hired equipment/machinery 45,0 0,0 0,0 11,4 122,0 37,7

Transport/marketing 2,0 3,3 0,0 2,9 3,8 2,0 Other, specify: 0,0 0,0 3,3 0,0 0,0 1,0 35

Total 228,5 127,5 49,6 91,1 220,4 141,6

The table above once again shows that the population of the village of Sakdrioni is engaged mostly in agricultural production and the livelihood of the population of the village of Zhebota is less reliant on agriculture. In terms of efficiency, the most efficient village in agricultural production is Chabano, which uses both manure and fertilizers in agriculture (see Table 20). The cost of agricultural production is the highest in relation to income for the village of Zaridzeebi. Table 20- Agricultural income, expenses and net income per household

Effectiveness Agricultural Net Agricultural Village Income Agricultural Inputs Income (income/input)

Sakdrioni 2 586 228 2 358 11,3 Artani 1 914 127 1 786 15,0 Zhebota 720 50 671 14,5

Chabano 2 023 91 1 931 22,2

Zaridzeebi 2 077 220 1 857 9,4

Total (average) 1 776 142 1 634 12,5

The table above shows that the population of Tianeti Municipality is mainly engaged in chicken and cattle breeding, although sheep and pig breeding is typical as well. While analyzing the data for each village individually, the following pattern was noticed: the population of the village (Zhebota) which is situated close to the Municipality center is less involved in livestock production, and the livelihood of the population of the villages (Sakdrioni, Artani, Chabano) which are closest to the forest is largely involved in livestock production, due to the fact that they receive accessible and cheap resources for livestock feed from the forest. Table 21 - Number of livestock and poultry species calculated per household at the end of the reporting period

Animal Sakdrioni Artani Zhebota Chabano Zaridzeebi Total

Livestock 3,1 3,8 1,1 2,8 1,8 2,2

Calves 2,2 3,7 0,7 2,3 0,7 1,6

Buffaloes 0,1 0,0 0,0 0,0 0,0 0,0

Calves 0,1 0,0 0,0 0,0 0,0 0,0

Horses 0,0 0,1 0,0 0,1 0,1 0,0

Foals 0,0 0,0 0,0 0,0 0,0 0,0

Goats 0,0 0,0 0,0 0,0 0,1 0,0

Sheep 1,3 0,0 0,0 0,6 2,0 0,8

Pigs 1,1 1,1 0,2 0,5 0,3 0,5

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Piglets 0,4 2,5 0,4 1,1 0,4 0,7

Donkeys 0,0 0,1 0,1 0,0 0,1 0,1

Ducks 0,9 0,0 0,0 0,3 0,0 0,3

Chickens 21,9 5,7 10,6 21,1 13,7 15,5

Rabbits 0,4 0,0 0,0 0,0 0,3 0,2

Turkeys 0,3 1,5 0,0 2,2 0,0 0,6

Guineafowl 0,0 0,0 0,0 0,0 0,1 0,0

Table 22 - Income from livestock, expenses and net income calculated per household

Village Livestock Income Livestock Inputs Net Livestock Income

Sakdrioni 490.6 465.6 25.0

Artani 407.1 1010.3 -603.1

Zhebota 164.1 610.8 -446.7

Chabano 678.5 908.8 -230.3

Zaridzeebi 915.4 1363.8 -448.4 Total (average) 490.6 465.6 25.0

The table shows that the villages Artani, Chabano and Zaridzeebi spend most of their livestock related income on the purchase and maintenance of livestock and poultry. However, it should be noted that the largest share of the costs from these populations are related to their own agricultural resources (Figure 4). As was mentioned above, the production of agricultural goods is well developed in the village Zaridzeebi, which allows its residents to invest in more profitable areas of production such as livestock. As for the population of the villages Artani and Chabano, the close proximity to the forest enables them to use the forest resources for livestock development, more specifically to harvest grass for fodder for cattle.

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Figure N4 - Inputs expended for livestock

4.2 Frequency and value of forest products

The research shows that all households are engaged the collection of forest and other natural resources. Figure 5 shows the percentage distribution of the collection of forest products by specific products. Figure 5 - Frequency of forest products collected

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The figure shows that the population mostly uses the forest to collect timber, food products for animals and plant products. As mentioned above, Tianeti population does not have access to natural gas, as the gasification process has just started in the region. Tianeti is a mountainous region and its climate is characterized by long winters, so the population is very reliant on firewood as a heating source. Timber is also used for household purposes. As a result, timber makes up the highest proportion (26%) of forest resources used in the region. Hay is the most important product to the population of Tianeti as it is used to feed the domesticated animals. Because cattle breeding and livestock development is the main source of income, the forest is used mainly for grazing the livestock. It should also be noted that the population mostly uses timber and food crops for feeding animals and for household consumption. As for the plant products, the population mainly collects mushrooms, blackberries, sweetbrier, cornel and capers. Collected forest products are also used to produce alcohol (vodka) products. The share of income from employment is very low in the total revenue. Therefore, to supplement their income, the population also sells the food products collected in the forest. Figure 6 shows the distribution of forest products collected by village. The figure shows the data for nine major products. Figure 6 - Frequency of Forest Product Collection by Communities

The diagram shows that firewood is the main forest resource used in all villages. Aside from this, as Table 17shows, the share of households that are engaged in cattle breeding is higher in Sakdrioni and Chabano than in other villages. The sale of animal products is an important source of income for these villages, so the population mainly uses forest resources to feed the animals, as it is also the cheapest and most accessible resource.

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It should be noted that mostly men are engaged in the collection of forest products, which is depicted in Figure 7. Figure 7 - Frequency of Forest Product Collection by Family Members

The figure shows that with the exception of timber collection, men are primarily in charge of the collections due to the physically demanding nature of the task. Men are also engaged in the harvesting of forage. Women, they are mainly engaged in the collection of non-timber forest products. If we compare the roles of men and women in the collection of forest products based on how the product is consumed, we can conclude that the products that are used for household purposes (firewood, forage) are collected by men, and women are more likely to be involved in the marketing of the products (food crops). It is important to note that the population uses forest resources for livestock development. Specifically, 43% of the total value of products collected is grass used as fodder for the livestock. The value of the collected firewood makes up a significant share (30%) of the total value as well. Figure 8 presents the percent distribution of the products in terms of their respective values.

Figure 8 - Forest products by value

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The data proves once again that access to forest resources is the most important factor for the low-income population. Forest resources are inexpensive and are used for domestic and agricultural purposes, and are therefore important for revenue generation. Figure 9 shows similar data as that shown in Figure 8. Figure 9 - Forest products by value

According to table 23, firewood is the main product collected in the forest. The population mostly uses firewood in their households, because they do not have access to the gas grid. An important source of the income for the population comes from the sale of the mushrooms collected in the forest. 63.6% of the collected mushrooms are sold. All other products collected in the forest are used for household consumption. This confirms the fact that the villages mentioned above are strongly dependent on forest resources. Table 23 - Main products consumed

Total Income Cost - Total from Average Gross expendi Cost - transport Product quantity Used Sold % of sold selling price income tures hired ation Income

Fuel wood/firewo od 3259 2989 270 8.3 8351 30.9 100433 18572 4832 13740 81883

Mushroom 6941 2526 4415 63.6 13151 3.0 15599 20 0 20 15579

Fodder grass/livesto ck browse 63261 62431 830 1.3 6594 7.9 125705 9910 3800 6110 115795

Alcoholic beverages 8460 6070 2390 28.3 9953 4.2 35230 275 0 275 34955

Rosehip 739 549 190 25.7 284 1.5 1063 0 0 0 1292.9

Blueberry 1109 974 135 12.2 490 3.6 3475 0 0 0 3475

Cornelian cherry (European cornel) 925 710 215 23.2 349 1.6 1558 0 0 0 1558 41

4.3 Fuel wood

As mentioned above, natural gas is not available to the majority of the villages, which increases local people's dependence on forest resources, specifically on firewood. Winters are severe and long in the municipality. The population needs fuel for heating for 10 months out of the year, and they need fuel for cooking throughout the year. Because firewood is the cheapest and the most available resource, it is widely used for heating and household purposes. It should also be noted that the gasification process has already started in Tianeti Municipality. Gas pipelines were being constructed in the central streets of the municipality center during the research period. According to the municipality officials, the gasification process will continue and will cover all the districts and settlements of the region. However, during focus group discussions, it became clear that the community does not see gasification as a way of reducing dependence on wood in the region. The gasification process includes installing pipes in the public areas that connect the streets and villages to each other, however residents must pay to install the gas pipes from the nearest street to their house. The price is between 300 to 600 Gel, depending on the distance between the house and the street. It is expensive for the local residents to pay to install the gas pipes although there is the option to pay in installments of 25 Gel per month. However, the price for the natural gas supply is too high for many of the residents, as most of the rural population is unemployed and do not have a source of income. The tariffs on gas are higher than in Tbilisi, the capital of Georgia because the investor, “SocarGas Georgia” who is responsible for the gasification process has added installation fees to the regular tariff. According to the population, however, the rate of the firewood use for heating purposes will only be slightly reduced if the entire region were to gain access to natural gas. The existing regulations on timber and fuel wood use poses challenges for the local population. The Legal Entity of Public Law – the National Forestry Agency under the Ministry of Environment and Natural Resources Protection of Georgia generally manages the State Forest Fund. The National Forestry Agency manages the State Forest Fund, regulates the forest use, facilitates forest maintenance and rehabilitation, and controls the State Forest Fund area. This agency is also responsible for issuing tickets for timber production and forest use. In 2013 Georgian Government made some changes in “Georgian Forest Code” by which there was established limit for timber for one household equal to 7 m3 per year. The local population must apply through the local ranger to obtain the forest use ticket and pay the official price at the bank – 6 GEL per cubic meter of fuel wood. The issued forest use ticket is only valid for one month. The ranger accompanies the locals and shows them the felling site, which includes marking the trees to be cut. Later, the ranger also verifies the amount of the firewood that has been processed. The ranger then issues the certificate of legality for the firewood (including the amount and the destination), which is the document for transportation. According to locals, the permit for the transportation of the timber from the forest allows only one day of transportation. If locals are not able to manage the transportation in a day, due to weather or other restrictions, they are obligated to pay the fee for forest resource use again in order to receive another permit. It should also be noted that the price of permits to collect fallen branches is similar to the price of the regular forest use ticket, therefore the population prefers to pay the same price and harvest fresh timber rather than collect fallen branches. This in turn leads to the massive logging of the forest.

Recently there have been reforms related to forest use regulations. The state limit of 7 cubic meters of firewood production was increased to 15 m for the local population living in high mountainous areas (Resolution of Georgia Government N242, 20.08.2010). Additionally, the tickets issued for the local population to collect timber for firewood are now valid in logging areas in the State Forest Fund closest to where the person lives. (Resolution of Georgian Government N46 10.01.2014: http://www.government.gov.ge/files/382_39863_409202_46100114.pdf)

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4.4 Cash and subsistence of forest products

As mentioned above and as shown in figure 10, the population mostly uses the forest products for household consumption. Fodder, used to feed livestock, and much of what is collected is used for household use. Fuel wood/firewood, as previously mentioned, is the most important source of energy for the population. It should be emphasized that forest products are practically a free income source for the population and the associated costs are mostly related to the collection of firewood and fodder. Transport makes up the largest share of expenditures. Figure 10 - Distribution of the value of forest products by use

4.5 Relative Forest Income (RFI) across income quintiles

Considering the fact that quintiles are defined based on total revenue for per adult equivalent unit, it is apparent that proximity to the forest and its resource use directly affects the welfare of the population. As Figure 11 shows, in the first quintile, which includes the population with the lowest income, the share of revenue from forest use is the most significant in the total revenue. This confirms the high dependence on forest resources in order to support the welfare of the poor population. As for the 5th quintile, which includes the wealthiest part of the population, the share of revenue from forest activities is higher than for the 2nd through 4th quintiles. The reason for this may be related to the fact that there are comparatively more opportunities for the high income population to access and use forest resources (harvesting, transportation, and sale). It should also be noted that the ratio of the value of sold products to the value of the consumed products is the lowest in the 1st quintile. This indicates that the poorer population mostly uses forest products for household consumption.

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Figure 11 - Cash and Subsistence Forest Income and RFI

4.6 Relative Forest Income across asset groups

The diagram above (Figure 11) illustrates the dependence of the population within different asset groups. The population is divided into three groups: "poor", "middle class" and "rich". Based on data that shows an increase of the total value of assets owned by the households, we have divided the households into quintiles. The first quintile is called "poor", quintiles two through four are called "middle class", and the fifth quintile is "rich". The diagram presents the calculation for each group by forest cash AUE (Adult Equivalent Unit)vi, forest subsistence AUE and RFIvii. It should be noted that a comparison of Figure 12 with Figure 11 is not feasible. The diagram presented conventionally refers to the income brackets as "poor", "middle class" and "rich," however ownership of the assets does not always correlate with the amount of revenue received. This is especially true for the rural population, where people mainly live in ancestral houses and their belongings consist of items they have are accumulated over years. Therefore, although they may own a variety of expensive items, they may have a low income due to the employment-related problems.

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Figure 12 – Forest cash and subsistence in different groups

4.7 Most Important Products

One of the goals of the study was to determine if there were changes in forest product manufacturing capacity in the last 5 years and what the reasons were for the changes. Table 24 - The most important products changes for the last 5 years

Product Sakdrioni Artani Zhebota Chabano Zaridzeebi

Poles /logs/sawn wood 1

Fuelwood/firewood 1 1 1 1 1

Wild pear 2 2 2 2

Wild apple 2 2 2 Blackberry 2 2

Wild rose berries 2 2 2

Cornelian cherry (European cornel) 2 Mushroom 2 2 2 2

Fish 1

Fodder grass/livestock browse 2 1 2 2 2 Thatching grass 1 2 2 2

Table 24 presents that the production process of animal products have not changed for 5 years. Producing the important products for Tianeti such as beans and potatoes has increased in the village Zaridzeebi. The agricultural program that began in 2012 supported the increase. In particular, government subsidies empowered the local population to increase production. 45

The volume of crops collected in the forest and harvested from agricultural lands used to feed livestock has not changed in recent years, with the exception of a decrease in the village of Artani. According to the local residents, more people are engaged in grass collection now, which has reduced the availability of this product for the local population. The decrease in the volume of straw was caused by the state restrictions on the use of forest resources. The volume of the crops harvested has remained the same. Reduction of the fish population was observed only in the village Artani. According to local residents, the reason for this decline is that some people started using illegal electric equipment for fishing, which has resulted in a significant reduction of the number of the fish in the rivers. It should be noted that the number of Shamaia species has increased as a result of the reduction in the trout population. As for the amount of the firewood collected in the forest, the numbers have decreased in all villages. This is mainly due to the state restrictions, particularly the proven limits and fees. In addition, intensive logging has caused a reduction in the amount of the available firewood. According to the local population, forest use rights have been transferred to license holder persons/companies who manage massive cutting of healthy trees. As a result, of these cuttings, the number of the plants like alder trees is increasing, which do not serve as viable fuel wood. At the same time, persons/companies who have forest use rights do not allow the local population to even collect fallen tree branches. According to the residents of the village Zaridzeebi, an increase in the number of wolves in the area poses additional challenges to the collection of firewood.

Figure 13 - Main reasons for decline in most important products

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5. Conclusion

• The welfare of poor and less poor population is significantly dependent on access to the forest and natural resources. It should be emphasized that the costs for obtaining natural resources is relatively low, which is important for the poor who do not have other sources of income.

• The dependence of the population on forest resources in the targeted villages is high and the forest has a vital importance for them. As the survey revealed, the gasification process has recently begun in the study area but there are currently no alternative sources of energy, and timber continues to be the main source of energy for heating and cooking. Considering the fact that Tianeti is a mountainous area and the winter period is longer than in the lowland villages (winter in Tianeti lasts for 10 months), it is easy to understand how important accessibility to the forest is for locals.

• Although the gasification process has started in the region, the price for gas is high for low-income residents and therefore they do not expect to have affordable access to gas soon. The investor company that is responsible for gasifying the region charges fees in addition to the normal tariff on gas consumption, making tariffs for the villagers higher than the tariffs in Tbilisi, the capital. Furthermore, the gasification process includes the installation of pipes in the public areas connecting the streets to the villages. The population must also pay to install the gas pipes from the nearest street to the house themselves. We can conclude that due to the high price of gas consumption, dependence on forest resources, specifically on firewood, will not decrease for the next several years.

• The most common type of economic activity in the villages is cattle breeding. Revenues from this activity are considered to be the main source of income for the population in the study area. The population produces dairy products and the share of the revenue from the sale of these products is larger than from all other income sources. Therefore, local dependence on pastures is high, which is directly linked to forest resources, because as we see from the survey, fodder is one of the most frequently collected forest products so the population is very reliant on the forest in this sector as well.

• Currently, forest and forest products are vital components of existence in the study area. However, there are factors that are hindering the use of these resources. These factors are: 1. Fees set by the government for the use of forest resources, which are high and do not reflect the poor socio-economic conditions, low level of employment and low income especially in rural and mountainous communities. 2. The existing regulations and prescribed practices of forest use are challenging for the local population. 3. Forest resources, in particular, the sale of firewood, offer an important source of livelihood for the village/mountainous areas, so as a result, the people are involved in illegal logging. 4. As previously mentioned, access to the forest around the villages is granted through forest use licensers. The company that holds the licenses does not allow local people to use forest resources or to collect wood remaining after cutting (such as brushwood/branches). However, there have been some exceptions when license holders have allowed locals to collect branches, as it is profitable for these individuals to raise their prestige and it helps to get rid of wood waste during particular seasons. It should also be noted that, as focus group interviews revealed, license holders often violate the forest logging standards. They are engaged in massive logging of healthy trees, and as a result, species such as alder have multiplied, which reduces the number of tree species that are suitable for fuel. 5. The low income of the population does not allow people to purchase a sufficient amount of timber and other forest resources.

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Keeping in mind the issues mentioned above, despite government regulations, massive illegal logging is still happening, causing a variety of destructive geological processes. Because the local population depends highly on the forest as the main source for timber/firewood and fodder grass, which is a cheap source of livestock feed and supports their income from animals, it is essential to ensure the population's access to forest resources. It is therefore also important to ensure that control mechanisms to regulate exploitation of natural resources are in place, especially related to the activities of the license-holders. In order to do this however, forest legislation must be improved. This is extremely important in regulating the logging process, and in promoting forest restoration and rehabilitation. Massive logging of the forest affects not only the welfare of the local population but also the ecosystem and causes significant ecological impacts (landslides, floods, etc). As getting firewood is a difficult and expensive process, people participating in focus groups also expressed their wish that the state forestry institutions take responsibility for collecting and processing the timber for firewood. We recommend that the local forestry department continue to perform tree cutting for firewood and be responsible for materials (sawing, etc.), transportation and sale, as such processes have already started in other regions. This will significantly reduce the cost of firewood, as the population will not have to face challenges related to permits and time constraints. Additionally, the local forestry department will make sure to take the waste from cuttings in the forest, which will contribute to the rehabilitation of the forest as well. Furthermore, it is very important for the local authorities to promote agricultural development in the poor and less poor rural areas. It is necessary to support the establishment of food processing enterprises, provide subsidies, encourage businesses, develop infrastructure, and increase access to markets. In order to develop agriculture, capacity development programs should be implemented by the local government or/and partner organizations, donors, etc., to improve the modern agricultural technologies for the locals and enable them to increase their productivity. In conclusion, more research, particularly regular research, should be conducted to assess the existing situation and dynamics.

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6. References

1. Official website of Tianeti municipality http://tianeti.org.ge/ 2. Administration of Tianeti municipality 3. Economic policy research center – Conditions of land market, 2013 http://www.csogeorgia.org/uploads/library/115/Report-geo.pdf 4. Resolution of Georgian Government N46 10.01.2014 http://www.government.gov.ge/files/382_39863_409202_46100114.pdf 5. Resolution of Georgian Government N242, 20.08.2010 6. National Environment Agency – Results of geological process development in Tianeti municipality for 2012- 2013 7. National Statistics Office in Georgia - www.geostat.ge 8. Front page photo: Tianeti by A. Muhranoff

About the Author: Elene Gakharia is Tbilisi based consultant specializing in social and marketing surveys, research and analyses including in the field of protected areas and forest. With 15 years of research experience, Ms. Gakharia is organizing field surveys and conducting qualitative and quantitative researches for numerous international and local organizations, like IUCN, UNDP, CENN, DRC etc.

i Dendroflora - Flora of wooded plants ii Gel (Georgian LARI) – Georgian National currency iii A long, slender, rounded piece of wood or metal, typically used with one end placed in the ground as a support for something iv Balneology - the branch of medical science concerned with the therapeutic value of baths, esp. those taken with natural mineral waters v “The resolution of Georgian Government No 242 on approval of the rule of forest use” August 20, 2010 vi The EUROSTAT equivalent scale is 1.0 for the first member of the household; 0.5 for every other adult member; 0.3 for a child under 14 years old. vii Relative Forest Income (Forest Income AEU divided by Total Income AEU)

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