Understanding Livelihood Impacts of Participatory Forest Management Implementation in India and Nepal Working Paper No 2 PPaarrttiicciippaattoorryy FFoorreesstt MMaannaaggeemmeenntt iinn OORRIISSSSAA:: AA RReevviieeww ooff PPoolliicciieess aanndd IImmpplleemmeennttaattiioonn Kailas Sarap Sambalpur University May 2004 Series Editor: Oliver Springate-Baginski Overseas Environment and Development Resources Group, Development University of East Anglia, Center, Kathmandu Norwich Nepal UK Centre for Economic and Ramakrishna Sambalpur Mission, University, Social Studies Kolkota, Hyderabad, Orissa, India India India Forestry Research Programme, Department for International Development, UK Government. ‘Understanding Livelihood Impacts of Participatory Forest Management Implementation in India & Nepal’ is a research project coordinated by the Overseas Development Group, University of East Anglia, UK, and supported by the UK Department for International Development Forestry Research Programme. Project partners, including Winrock India, Delhi; Centre for Economic and Social Studies, Hyderabad; Sambalpur University, Sambalpur; Ramakrishna Mission, Calcutta; and Environmental and Resources Development Center, Pokhara, are undertaking studies to understand the actual livelihood impacts of different PFM implementation strategies in India and Nepal. This project working paper series, edited by Oliver Springate-Baginski, is one of the outputs of the project. Studies in the series to date are as follows: 1. Participatory Forest Management in India: A Review of Policy and Implementation Sushil Saigal, Mamta Borgoyary & Neeraj Peters… 2. Participatory Forest Management in Orissa: A Review of Policy and Implementation Kailas Sarap 3. Participatory Forest Management in West Bengal: A Review of Policy and Implementation Ajit Banerjee 4. Participatory Forest Management in Andhra Pradesh: A Review of Policy and Implementation V. Ratna Reddy, M. Gopinath Reddy, V. Sarvanan & B. Madhusudana 5. Participatory Forest Management in Nepal: A Review of Policy and Implementation Om Prakash Dev, Akhileswor L Karna, Jagannath Adhikari, Damodar Parajuli and Oliver Springate Baginski 6. Participatory Forest Management Implementation and Livelihood Impacts: Concepts and Assessment Methods Oliver Springate-Baginski & Piers Blaikie About the Author: Kailas Sarap is at present Professor of Economics at Sambalpur University, Sambalpur, Orissa and has been a visiting fellow at the University of Namur, Belgium, and Common Wealth Fellow at the University of Oxford. He has previously published a number of articles in leading journals, including the Journal of Peasant Studies; the Cambridge Journal of Economics, Development and Change, Economic and Political Weekly and Indian Economic Review and a book entitled “Interlinked Agrarian Markets in Rural India ”. Recently, he has completed studies on “Land and Livelihood in Orissa” and “Facets of Rural Development in Orissa”. At present he is working on “Participatory Forest Management and Livelihood in Orissa” Dr. Sarap’s research interests include Agrarian Relations, Land and Labour Markets, Natural Resources, Access to credit and social securities. The author can be contacted at [email protected] Copies of this reports, and others in the series are available from: Dr. Oliver Springate-Baginski, Overseas Development Group, University of East Anglia, Norwich NR4 7TJ, UK Tel.; (+44) 1603 592883. Fax.: (+44)1603 591170. Email: [email protected]. Web: http://www.odg.uea.ac.uk/pfm/ Note: ‘This publication is an output from a research project funded by the United Kingdom Department for International Development for the benefit of developing countries. The views expressed are not necessarily those of DFID’ R.8101 Forestry Research Programme: http://www.frp.uk.com/ Cover Design: Bhawani Shankar, Winrock International India, New Delhi ii CONTENTS Tables, Maps, Boxes and Figures ...............................................................................................................................iv Abbreviations.................................................................................................................................................................... v Terms Used......................................................................................................................................................................... v Acknowledgement........................................................................................................................................................... v Summary............................................................................................................................................................................vi 1 INTRODUCTION .......................................................................................................................................................1 1.1 Geographical and Historical Perspective.....................................................................................................1 1.2 History of Forest Policies in Orissa................................................................................................................3 1.3 Forest Policies in Post-independence Orissa..............................................................................................5 1.4 Investment in the Forest Sector.................................................................................................................... 10 1.5 Forest Resources in Orissa............................................................................................................................. 11 1.6 Causes of Deforestation in Orissa................................................................................................................ 15 2 FOREST PRODUCT AND ITS UTILIZATION BY DIFFERENT STAKE HOLDERS IN ORISSA ................................................................................................................................................................................. 18 2.1 Forest Users......................................................................................................................................................... 18 2.2 The Forest Department................................................................................................................................... 21 2.3 Industry and Forest Use................................................................................................................................. 23 2.4 Mining and Deforestation.............................................................................................................................. 24 2.5 The Forest Mafia................................................................................................................................................ 25 2.6 Traders:................................................................................................................................................................. 26 2.7 Involvement of NGOS in the Forestry Sector .......................................................................................... 28 2.8 Networking and Federations of CFM in Orissa...................................................................................... 30 2.9 Donors in the Development of Forest-related Activities..................................................................... 30 3 NON-TIMBER FOREST PRODUCTS IN THE LIVELIHOODS OF FOREST DWELLERS AND OTHERS DEPENDENT ON THE FOREST ............................................................................................................ 33 3.1 Policy Reform for NTFP Marketing............................................................................................................ 33 3.2 Definition of NTFPs ......................................................................................................................................... 34 3.3 Nationalized NTFPs......................................................................................................................................... 34 4 PARTICIPATORY FOREST MANAGEMENT IN ORISSA IN PRACTICE .................................... 36 4.1 Problems with JFM ........................................................................................................................................... 38 4.2 Community Forest Management in Orissa.............................................................................................. 39 4.3 Policy Lessons for Paticipatory Forest Management in Orissa......................................................... 42 REFERENCES ..................................................................................................................................................................... 44 iii TABLES, MAPS, BOXES AND FIGURES Tables Table 1 Forest Expenditure during Period 1980-81 to 2001-02........................................................................... 10 Table 2: Forest Areas in Orissa from 1962 to 1997 ................................................................................................... 11 Table 3: Comparative Status of Forest Areas in Orissa.......................................................................................... 11 Table 4: Forest in Orissa at a Glance (1997). ............................................................................................................. 13 Table 5: District wise Forest