Forest Certification

Programme Office for Social and Ecological Standards

Environment

Society

Economy

D. Burger / J. Hess / B. Lang (Eds.)

Forest Certification: An innovative instrument in the service of sustainable development?

Programme Office for Social and Ecological Standards

Forest Certification: An innovative instrument in the service of sustainable development?
D. Burger / J. Hess / B. Lang (Eds.)

Eschborn 2005

ISBN: 3-936693-27-7

Published by: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH P.O. Box 5180 65726 Eschborn, Germany Internet: www.gtz.de Programme Office for Social and Ecological Standards Tel.: ++49 (0) 6196 79-1461 Fax.: ++49 (0) 6196 79-6132 E-Mail: forest_certification@gtz.de Internet: www.gtz.de/social-ecological-standards Responsible: Jürgen Hess Editors: Dietrich Burger Jürgen Hess Barbara Lang Contact person at Federal Ministry of Economic Coorperation and Development: Matthias Reiche, Ref. 312 Tel.: ++49 (0) 1888 535-3756 Layout: Elisa Martin, OE 6006 Print: medialogik GmbH, Karlsruhe Internet: www.medialogik.tv

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SGS-COC-1349

Eschborn, Germany 2005

Contents

Contents

Abbreviations and acronyms

iii

Introduction and summary
Burger / Lang / Hess Forest certification: taking stock from a development policy perspective

3

Forest management: a potential pillar of sustainable development
De CAMINO Burger Forest management and development Requirements for sustainable forest management following the paradigm of sustainable development 25

61

Standards: pointing and paving the way to sustainable forest management
Elliott Burger Liedeker / Spencer Gunneberg / Scholz From the tropical timber boycott to forest certification 79

Standards: flexible and practical aids to communication 91 Forest Stewardship Council The PEFC Council and sustainable forest management Lembaga Ekolabel Indonesia - Introduction and implementation of forest certification in Indonesia MTCC timber certification scheme Demystifying the jungle of competing certification schemes 103

113

Hinrichs

135 155

Chew / Singh Vallejo / Hauselmann

167

Contents

Forest certification: driving force for sustainable development or counter-productive?
Bressel / Wolf Forest certification as a political regulation concept in the context of global governance Impacts, obstacles to and risks of forest certification Forest certification in Brazil: advances, innovations and challenges Forest certification and development cooperation - an innovative partnership

187 195

Hess Verissimo / Smeraldi / Azevedo

207

Burger

219

About the authors

233

Abbreviations and acronyms

Abbreviations and acronyms
AB ACOFOP AIFTA AMAN APHI APKINDO ARUPA ASEAN ASMINDO ATO BCSD Accreditation Body Asociación de Comunidades Forestales de Petén Association of Formalin and Thermosetting Adhesives Industries (Member of MPI) Alliance of indigenous People of the Archipelago Asosiasi Pengusaha Hutan Indonesia Association of Indonesian Forest Concession Holders (Member of MPI) Indonesian Wood Panel Association (Member of MPI) Volunteers Alliance for Saving the Nature Association of Southeast Asian Nations Indonesian Furniture Industry and Handicraft Association (Member of MPI) African Timber Organisation Business Council for Sustainable Development (later renamed World Business Council for Sustainable Development, WBCSD) Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung German Federal Ministry for Economic Cooperation and Development Business-to- Business Business for Social Responsibility Corrective Action Request Certification Body Convention on Biological Diversity Community Based Forest Management Common Code for the Coffee Community Confederation of European Paper Industries Comité Européen de Normalisation European Committee for Standardization Canadian International Development Agency Center for International Forestry Research Convention on International Trade in Endangered Species of Wild Fauna and Flora Chain of Custody Commission en charge des forêts d'Afrique Centrale Commission in charge of forests of Central Africa Comisión Nacional de Áreas Protegidas National Commission on Protected Areas Collaborative Partnership on Forests Canadian Standards Association

BMZ B2B BSR CAR CB CBD CBFM CCCC CEPI CEN CIDA CIFOR CITES CoC COMIFAC CONAP CPF CSA

iii

Abbreviations and acronyms

CSD CSR DC DFID DSM ECO ´92 ECOSOC EEC EMAS EMS ENGO EPG EU EUREP FAO FIAN FINAS FKD FLEGT FM FMU FOE FSC G-7 GAP GATT GFTN GDP GM GMO GTZ ha. HCVF IAF IAF

Commission on Sustainable Development of the United Nations Corporate Social Responsibility Development Cooperation Department for International Development Department of Standards Malaysia United Nations Conference on Environment and Development Economic and Social Council of the United Nations European Economic Community European Eco-Management and Audit Scheme Environmental Management System Environmental Non-governmental Organisation Empowered Participatory Governance European Union Euro-Retailer Produce Working Group Food and Agriculture Organization of the United Nations FoodFirst Informations- und Aktionsnetzwerk FoodFirst Information and Action Network Finnish Accreditation Service Forum Konsultasi Daerah Regional Discussion Forum Forest Law Enforcement, Governance and Trade Forest Management Forest Management Unit Friends of the Earth Forest Stewardship Council Group of the seven major industrial countries good agricultural practices General Agreement on Trade and Tariffs Global Forest & Trade Network Gross Domestic Product genetically modified genetically modified organism Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH (German Technical Co-operation) Hectares High Conservation Value Forests International Accreditation Forum International Arrangements on Forests

iv

Abbreviations and acronyms

IBAMA

Instituto Brasileiro de Meio Ambiente e dos Recursos Naturais Renováveis Brasilian Institute for Environment and Renewable Natural Resources International Business Leaders Forum International Electrotechnical Commission International Finance Corporation Intergovernmental Forum on Forests International Forest Industries Roundtable International Federation of Organic Agriculture Movements International Institute for Environment and Development International Labour Organization Instituto de Manejo e Certificação Florestal e Agrícola Institute of Forestry and Agricultural Management and Certification Instituto do Homem e Meio Ambiente da Amazônia Amazon Institute of People and the Environment International Monetary Fund Intergovernmental Panel on Forests Indonesian Sawmill and Wood Working Association (Member of MPI) International Social and Environmental Accreditation and Labelling International Organization for Standardization International Tropical Timber Organization The World Conservation Union (formerly the International Union for the Conservation of Nature) Joint Certification Protocol (FSC, LEI Indonesia) Kelompok Kerja Sertifikasi (Producer Group in East-Kalimantan) Consortium for Supporting Community-based Forestry Management System The Indonesian Tropical Institute Lembaga Ekolabel Indonesia Indonesian Ecolabelling Institute Legitimacy Thresholds Model Malaysian Criteria and Indicators for Forest Management Certification Malaysian Criteria, Indicators, Activities and Standards of Performance for Forest Management Certification (2001) Malaysian Criteria and Indicators for Forest Management Certification (2002) Ministerial Conference on the Protection of Forests in Europe Millennium Development Goals Multilateral Recognition Arrangements Indonesian Ministry of Forestry

IBLF IEC IFC IFF IFIR IFOAM IIED ILO IMAFLORA IMAZON IMF IPF ISA ISEAL ISO ITTO IUCN JCP KKS KpSHK LATIN LEI LTM MC&I MC&I(2001) MC&I(2002) MCPFE MDG’s MLA MoF

v

Abbreviations and acronyms

MPI MRA MSC MTCC NGB NGO NFP NSC NSMD NTCC NWFP ODA OECD PEFC PEOLG PERSEPSI PFCA PPG7 PPP PRF PRSP QACC RAN RAP/COC SFI SFM SHK Kaltim SIDA SKEPHI SLIMFs SME SWEDAC TBT

Masyarakat Perhutanan Indonesia (Parent Organization of Indonesian Wood Industry) Mutual Recognition Agreement Marine Stewardship Council Malaysian Timber Certification Council National Governing Body Non-governmental organization National Forest Programme National Steering Committee Non-State Market Driven National Timber Certification Council, Malaysia (later renamed Malaysian Timber Certification Council, MTCC) Non-wood forest products Official Development Assistance Organization for Economic Co-operation and Development Programme for the Endorsement of Forest Certification schemes (formerly Pan-European Forest Certification) Pan European Operational Level Guidelines for Sustainable Forest Management Association for Economic and Social Development Studies Produtores Florestais Certificados de Amazônia Amazon Certified Forest Producer Group International Pilot Programme for the Conservation of Tropical Rainforests in Brazil Public Private Partnership Permanent Reserved Forest Poverty Reduction Strategy Paper Questionnaire for Assessing the Comprehensiveness of Forest Certification Schemes/Systems Rainforest Action Network Requirements and Assessment Procedures for Chain-of-Custody Certification Sustainable Forestry Initiative Sustainable Forest Management Community-based Forestry Management East Kalimantan Swedish International Development Cooperation Agency The Indonesian Network for Forest Conservation Small and Low Intensity Managed Forests Small and Medium Enterprise Swedish Board for Accreditation and Conformity Assessment Technical Barriers to Trade

vi

Abbreviations and acronyms

TC TFAP TFD TFF TFT TNC UK UKAS UN UNCED UNCTAD UNDP UNECE UNEP UNFCCC UNFF UNHCR US USA US$ WALHI WB WBCSD WCED WTO WWF YLEI

Technical Cooperation Tropical Forestry Action Plan The Forests Dialogue Tropical Forest Foundation Tropical Forest Trust The Nature Conservancy United Kingdom (of Great Britain and Northern Ireland) United Kingdom Accreditation Service United Nations United Nations Conference on Environment and Development United Nations Conference on Trade and Development United Nations Development Programme United Nations Economic Commission for Europe United Nations Environment Programme United Nations Framework Convention on Climate Change United Nations Forum on Forests United Nations High Commissioner for Refugees United States United States of America US Dollars Friends of the Earth Indonesia World Bank World Business Council for Sustainable Development (formerly Business Council for Sustainable Development, BCSD) World Commission on Environment and Development World Trade Organization World Wide Fund for Nature (formerly World Wildlife Fund) Yayasan Lembaga Ekolabel Indonesia Foundation Indonesian Ecolabel Institute

vii

Introduction and summary

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

Forest certification: perspective

taking

stock

from

a

development

policy

Dietrich Burger / Barbara Lang / Jürgen Hess

Concept for taking stock of forest certification from a development policy perspective
Embedded in a general international trend towards developing market-oriented policy instruments, voluntary initiatives and involvement of non-statal actors in environment policy control (PATTBERG 2004, CASHORE et al. 2004), forest certification has been in use as an instrument for 15 years now. In the process it has established itself as one of the most influential market dynamics in the forestry and wood industry sector, with its overarching goal of promoting sustainable forest management. NUSSBAUM and SIMULA (2004) note: „Most people working with forestry could easily list a number of areas where certification has had an impact on the management of a particular forest, a group of forest-dependent people or a particular forest products market”. The instrument is now so broadly applied in the forestry and wood industry sector that it is very unlikely that it will ever disappear. Although the majority of interest groups involved have realised this, forest certification is still the subject of lively controversy and debate (NUSSBAUM / SIMULA 2004). These are concerned primarily with the level of standards, the governance and participative structures of the certification initiatives, the role of governments and the question of applicability in specific regions (e.g. the tropics) under specific conditions (e.g. with a lack of government forest supervision) or specific types of businesses (e.g. micro-businesses). The success of certification is frequently measured purely in terms of the certified area, yet this is very slow in spreading in the original target region for certification (the tropics and subtropics), in contrast to the temperate regions. German development cooperation (DC) has been working on forest certification since 1989. For example, in its statement on protecting tropical forests to the Commission of Enquiry of the German Parliament, Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) supported the development of forest certification (DEUTSCHER BUNDESTAG 1990: 785 et seq.). From the start the development policy interest has looked beyond the function of a market instrument and the certified area. Much more than this, DC has the expectation that forest certification will help to effectively support achievement of the paradigm of sustainable development, because it holds out the prospect of both incentives and concrete orientation for sustainable forest management. It might moreover possibly improve the structural conditions for sustainable development, for example by promoting participation, binding rules and transparency in the forestry and wood industry sector, and maybe even beyond. For the editors, the current publication has two goals: It is an attempt to study whether (and which) development policy expectations of forest certification are being met. Given the brief nature of the experience available, this can at best be an intermediate assessment.

3

Concept for taking stock of forest certification

It seeks to promote a more comprehensive view of forest certification as a policy instrument, in contrast to the narrow view of it as a sectoral market instrument. The interim balance for forest certification from the point of view of development policy is aimed primarily at three target groups: Forest certification experts, with the aim of creating awareness of and supporting them in considering and developing the instrument not only in technical and commercial terms, but also in understanding and expanding its development policy dimension. Development cooperation experts, particularly also those outside the forestry sector, with the aim of helping them understand the potentials of forest certification as an instrument for supporting development policy change processes and encouraging them to utilise these. Persons interested in sustainable development, with the aim of using the example of forest certification to help them gain insight into the range of points of view which have to be considered in sustainable development, and into the problems and possibilities of practical implementation of this paradigm. The approach in this interim balance cannot restrict itself to statistics for certified areas and businesses, as these provide very inadequate coverage of the instrument’s change potential and impact. Equally, an exact survey of demonstrable development policy impacts of forest certification would pose very serious methodological and financial problems, and given the number and diversity of existing certification systems would also be most unlikely to produce generally acceptable results. Instead, the present publication chose a different approach, under which forest certification is analysed from various perspectives by authors who are almost all actively working on the dissemination and further development of the instrument. To give just a brief idea of the different backgrounds and interests of the authors, brief résumés are given at the end of the book. The gain in colour and authenticity of the individual papers is intended to make the whole work less of a reference manual and more of an aid to readers in forming their own opinions. To ensure a certain common framework of definitions and issues in spite of the diversity of the individual contributions, the authors were asked to write on the basis of an earlier publication of the GTZ Programme Office for Social and Ecological Standards: „Making Sustainable Development a Reality: the Role of Social and Ecological Standards“ (BURGER / MAYER 2003). The individual papers are arranged in four sections: Introduction: This comprises a single paper in which the editors present the concept for the book, briefly review the current state of forest development and certification, summarise the papers of the various authors and draw conclusions from these - in brief, attempt to give a provisional answer to the question whether forest certification can be described as an innovative instrument for promoting sustainable development, and how this goal can be better served. Forest Management, a potential pillar of sustainable development: Here, two papers first show the connection between forest management and development, and then go on to

4

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

show which requirements forest management must satisfy to comply with the paradigm of sustainable development. The aim is to make it easier to place forest certification in the context of sustainable forest management, and this in turn in the context of sustainable development, in the hope that this will improve the coherence and integrability of forest certification with fundamental political issues and discussions, and to counter the risk that forest certification will be regarded merely as a marginal issue for „green freaks”. Standards, pointing and paving the way to sustainable forest management: After a review of the history of the emergence of forest certification and a general survey of the possible ways of formulating standards and their functions, the most important forest certification systems from the point of view of development policy present themselves - FSC (Forest Stewardship Council), PEFC (Programme for the Endorsement of Forest Certification schemes, formerly Pan-European Forest Certification), LEI (Lembaga Ekolabel Indonesia, Indonesian Ecolabeling Institute) and MTCC (Malaysian Timber Certification Council). Finally, the question of how to cope with the growing variety of systems for forest certification is considered. Forest certification, driving force for sustainable development or counter-productive: This last part begins by investigating from a political science perspective whether forest certification can be an appropriate political regulation concept for supporting sustainable development. It then presents the important impacts and risks identified to date. This multicountry review is followed by a report on experiences in Brazil, the country with the world’s highest annual rate of forest disappearance. The closing section looks at the question of whether and how forest certification and development cooperation can provide stronger mutual support in the interests of sustainable development.

The current state of forest development
Trends in forest cover The Food and Agriculture Organisation of the United Nations (FAO) carries out regular surveys of forest resources. According to the last published survey (FAO 2001a), forest cover in 2000 totalled 3.9 billion ha, or 30% of the land area. Of this, the tropics accounted for just under half (47%), with the other zones accounting for the rest, i.e. subtropics (9%), temperate (11%) and boreal (33%). Plantations accounted for 187 million ha, or 4.8% of forest cover.

5

The current state of forest development

Figure 1: Regional distribution of forest and plantations

Regional distribution of forest area worldwide

Regional distribution of forest plantations
North and South Central Oceania America America 5% 6% 9%

North and Oceania Central 5% America 14%

South America 23%

Africa 4%

Europe 17%

Europe 27% Asia 14%
(based on FAO 2001 a)

Africa 17%
Asia 59%

The trend in forest cover from 1990-2000 is shown in Fig. 2. Forest cover includes both natural forest and forest plantations. While forest cover in the tropics decreased from 1993 (1945 + 48) to 1871 (1803 + 68) million ha, it increased outside the tropics from 1970 (1863 + 107) to 1998 (1879 + 119) million ha. This was the result of four processes: Deforestation resulted in 142 million ha of natural forest being converted to other use in the tropics, compared with only 4 million ha outside the tropics. Globally, 14.6 million ha of forest cover was lost to deforestation annually. By contrast, natural expansion of forest totalled only 10 million ha in the tropics, compared with 26 million ha outside the tropics. In the tropics reforestation of former natural forest accounted for 10 million ha, compared with only 5 million ha outside the tropics. Afforestation created 8 million ha of forest cover in the tropics at the expense of other land uses, and 7 million ha outside the tropics. Comparing the global loss of forest cover due to deforestation of 146 million ha with the increase in forest cover of 51 million ha due to natural expansion (10+26) and afforestation (8+7), there was a net loss of forest cover worldwide of 95 million ha, or 9.5 million ha a year. Without the rounding errors in this rough calculation, global net annual loss of forest cover was 9,391,000 ha.

6

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

Figure 2: Changes in forest cover 1990 - 2000 (million ha)

Tropical areas 142 Natural forest 1990: 1 945 2000: 1 803 10 10 8 Natural forest 1990: 1 863 2000: 1 879

Non-tropical areas 4 Other land use classes 1990: 2 819 2000: 2 943 Other land use classes 1990: 6 280 2000: 6 252

26 5 7

Forest plantations 1990: 48 2000: 68

Forest plantations 1990: 107 2000: 119

Deforestation

Afforestation

Reforestation

Natural expansion of forest

Source: FAO 2001a

The loss of forest cover varied sharply between regions. According to the FAO (2001b, annex, table 3) Africa accounted for 56%, South America 39.5%, North and Central America 6.1%, Oceania 3.9% and Asia 3.9%. With an increase in forest cover of 9.4%, Europe is offsetting the global loss of forest cover, with the largest increases in Belarus and Russia. Asia’s low share in global loss of forest cover is due not least to the fact that China is shown as having an annual increase of 1.8 million ha. A comparison of annual net loss of forest cover by country (cf. Fig. 3) shows Brazil as accounting for one quarter of the total global loss (24.6%), followed by Indonesia (14%). The next highest contributors - Sudan (10.2%) and Zambia (9.1%) - are virtually ignored in the global forest debate. Half (48.8%) of the total global loss of forest cover is accounted for by only three countries, 86.4% by only ten.

7

The current state of forest development

Figure 3: Country breakdown of annual global loss of forest cover

Argentinia 3% Zimbabwe 3% Nigeria 4% Myanmar 6% DR Congo 6%

Others 14%

Brasil 24%

Indonesia 14%

Mexico 7%

Zambia 9%

Sudan 10%

(based on FAO 2001 b, annex, tab 3)

Compared with the period 1980-1990, which is shown as having an annual global net loss of forest cover of 13 million ha, (FAO 1995, quoted in FAO 2001a), the net annual loss of 9.5 million ha in the 1990s seems to represent a slowdown. However, according to the FAO, this is due primarily to the higher estimate for the rate of natural forest expansion used in the analysis of the 1990s. Given this, and the fact that additional study of satellite images of the tropics shows no significant difference in the deforestation rate for the two ten-year periods, the FAO concludes that „the global rate of loss of natural forests has remained at approximately the same level over the past 20 years“ (FAO 2001a). Trends in forest use Four trends seem particularly important for the role of the forest in sustainable development: Growing importance of communal forest management: There is increasing recognition of land rights and land use rights of indigenous groups and local communities, and at the same time many countries are also seeing a transfer in responsibility for public sector forest management from centralised agencies to local communities in the process of decentralisation. WHITE and MARTIN discovered that the area of forest in local community ownership and forests managed by local communities doubled in the period 1985-2000. This trend is particularly marked in the tropics, where at least 246 million ha of forest is officially owned by indigenous or other communities, and 131 million ha of state forest is officially managed by local communities. Together, this accounts for 22% of the forest in developing countries (WHITE / KHARE / MOLNAR 2004). More recent studies suggest that

8

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

this percentage will double again by 2020, so that the importance of local community forest management will continue to increase sharply (SHERR / WHITE / KAIMOWITZ 2004). Increasing importance of regulated forest management: A positive trend in global forest development according to the FAO is the increasing importance of regulated forest management, both in political debate (measured by the participation of countries in regional processes to develop criteria and indicators) and in implementation. In industrialised countries, 89% of forest use is subject to a „formal or informal plan”. In the tropics, initial estimates based on a very limited number of countries show that around 6% of forests are managed according to a „formal, nationally approved forest management plan covering a period of at least five years” (FAO 2001a). This enormous difference is undoubtedly one of the reasons why large areas of forest could be certified very quickly in the industrialised countries, compared to the tropics. Increasing cover of wood demand by plantations: Plantations account for just under 5% of global forest cover. Half of this area is less than 15 years old. Plantations of fast-growing eucalyptus clones can - e.g. in Brazil - produce up to 100 m³ a year per hectare (SIMULA / BURGER 2002), compared with growth of 1-2 m³ a year per hectare in the natural forest. The FAO expects that future growth in demand for wood will be largely met from plantations (FAO 2001b). Increasing globalisation of the markets for forest products: In many countries, two markets with very different requirements and conditions are being served - national and international The first mainly deals in firewood and other low-quality wood types and nonwood products, while the second deals in more valuable types with increasingly rising quality requirements in terms of both the goods and the delivery conditions. In many countries, the share of the international market is growing rapidly. While a 1998 survey by the research institute IMAZON (Instituto do Homem e Meio Ambiente da Amazonia) showed that only 14% of the wood harvested in the Brazilian Amazon was exported (SMERALDI / VERISSIMO 1999), this share has increased to 36% according to a 2004 study, also by IMAZON (LENTINI / VERISSIMO / PEREIRA 2005). Requirements and demand in international markets also influence the national markets. For example, the growing readiness to buy certified wood on the Brazilian market (SOBRAL et al. 2002) is undoubtedly also caused by the international market. Certified forest areas Forest certification generally is in an advanced state of rapid expansion. In 2002 109 million ha of forest were certified, representing a fourfold increase in certified area compared to 2000 (ITTO 2002). Currently, 236 million ha of forest are certified worldwide (cf. Fig. 4). This represents 6% of the global forest cover. Regionally, however, there are substantial differences. Of the 109 million ha in 2002, 54% were in North America, 38% in Europe, and only 8% in the regions Asia-Pacific (2%), Latin America (3%) and Africa (3%) (ITTO 2002). Up to April 2005 the situation has changed in that the Dutch Keurhout foundation, which had registered areas in Malaysia, Congo and Gabon as certified, is no longer operating. As a result, the share of Africa in particular has decreased further. The

9

The current state of forest development

predominance of North America and Europe continues to be oppressive. If all systems currently operating are taken into account, over 90% of all certified areas are located in North America and Europe. However, CSA (Canadian Standards Association) and SFI (Sustainable Forestry Initiative) were limited to North America from the start. PEFC, though no longer limited to Europe, so far has certified areas only in one country outside Europe, in Australia. The territories of the MTCC and LEI national systems are restricted to their domestic areas. Only FSC-certified areas can be found in all the regions studied. At FSC, areas in the tropics account for a significantly larger share than if all systems are considered together. A particularly striking feature is Latin America’s substantial share. Even at FSC, however, by far the largest shares of certified areas lie in North America and Europe, which together account for almost 80%. Figure 4: Global certified forest area (State 04/2005)

Total area: 235.912.632 ha

MTTC 4.741.093 ha 2%

LEI 91.767 ha 0% CSA 69.376.075 ha 29%

PEFC 58.396.291 ha 25%

CSA SFI FSC PEFC MTTC LEI

FSC 53.083.912 ha 23%

SFI 50.223.494 ha 21%

Sources:

CSA: SFI: PEFC: MTCC: LEI: FSC:

www.certifiedwood.org (25.04.2005) www.afandpa.org (25.04.2005) www.pefc.cz/register/statistics.asp (24.04.2005) www.mtcc.com.my/documents (24.04.2005) www.lei.or.id (24.04.2005) www.fsc.org (24.04.2005)

10

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

Figure 5: Certified forest areas by region and system
As at 4/2005 CSA SFI PEFC MTCC LEI m ha N. America Europe Asia/Pacific L. America Africa World % system 69.4 29.4 50.2 21.3 58.4 24.8 4.7 2.0 0.09 0.0 69.4 50.2 57.3 1.1 4.7 0.09 11.5 30.3 2.1 7.3 1.9 53.1 22.5 FSC % reg 21.7 57.0 3.9 13.7 3.7 100 all systems, m ha 131.1 87.6 8.0 7.3 1.9 235.9 100 all systems, % region 55.6 37.1 3.4 3.1 0.8 100 Status 2002 all % reg 54 38 2 3 3 100

Sources: see Fig. 4, and ITTO (2002)

The predominance of North America and Europe in certified area is, however, not in the least surprising, given that in the tropics it is mostly necessary to first create organised forest management and the institutional requirements for certification, whereas in North America and Europe these are essentially already present. The fact that these requirements for certification are essentially present does not, however, mean that forest management in North America and Europe generally already meets the standards for certification. Depending on the system, certification can have a substantial innovative impact in North America and Europe as well (cf. WWF 2005). It is particularly difficult to create the conditions for certification in communal forests. So far, only very few of these have been certified. According to MOLNAR (2003), all the cases under FSC worldwide amount to slightly over 50 communal forest management certificates, with an area of c. 1.1 million ha. In the tropics, Mexico and Guatemala are particularly significant in the field of certified communal forest management.

The authors’ findings
Ronnie De CAMINO begins his paper with a quote from Westoby: „Forest management is not about trees, but about people. It is only concerned with trees to the extent that they meet human needs.” This applies not only to forest management but also, and very particularly, to forest certification. It can be seen as the motto for the whole book, as all the papers are ultimately concerned with the question of how forest management and certification can be made to serve humanity. De CAMINO, who has been concerned for over 30 years with the relationship between forest management and development, looks here at the relationship between forest management and the major challenges in human development, such as poverty, securing peace, securing the natural basis for life, economic development, and accumulating and preserving social capital

11

The authors’ findings

(the stock of social norms, rules and institutions). He shows that forest management contributes to meeting all these challenges, and can accordingly become a pillar of sustainable development. De CAMINO also lists conditions which must be met for this. Dietrich Burger shows that forest management as a pillar of sustainable development has to meet much more extensive claims than those of forest sustainability. He presents the comprehensive paradigm of sustainable development in brief, with specific reference to forest management. Among the requirements for sustainable forest management which he emphasises are the ability to network with other actors in sustainable development and the „integrability” with current future issues. The following part, which deals with the development, role and specific forms of standards and forest certification, begins with a paper by Chris Elliott, one of the co-founders of forest certification. He shows how in the context of the „forest crisis” of the 1980s, international attention became focused on the alarmingly rapid decrease and degradation of the forests, particularly in response to the pressure of public opinion in the industrialised nations. Inadequate responses by governments and at best half-hearted commitment to the idea of an intergovernmentally organised labelling system for tropical wood from sustainable management led to a situation where nongovernmental organisations (NGOs) and parts of the trade became active and created the instrument of forest certification. The paper also presents other factors which contributed to NGOs becoming particularly involved in the approach and institutional establishment of forest certification. In the next chapter, Dietrich Burger uses the framework of communications theory to present the role of standards in assisting communication between the wide range of actors in forestry and the subsequent value chain. He also shows what different functions standards can meet, and the diversity of possible standards initiatives, where certification can be seen as a specific type of standards initiative. He reviews the features where standards initiatives can differ, in terms of both formulation and quality of the standards, their verification of compliance, accreditation of certifiers, and - particularly - in terms of the strategies for persuading target groups to reward compliance with the standards. Particular emphasis is laid on „key features” like legality, legitimacy, participation, usefulness and transparency. Based on this, the four currently internationally most important forest certification systems are presented, mainly by those responsible for them: FSC by Heiko Liedeker and Michael Spencer, PEFC by Ben Gunneberg and Oliver Scholz, MTCC by Chew Lye Teng and Harnarinder Singh. The chapter on LEI is the only one not written by members of staff of the certification system. The author, Alexander Hinrichs, supported and advised the process in Indonesia in an important phase as development cooperation expert in Indonesia. In addition to technical data on the system, his paper provides insight into the history of its evolution and the problems and successes that accompany such a process. The final paper in this part is by Nancy Vallejo and Pierre Hauselmann, and deals with the question of how to counter the much-lamented proliferation of competing certification systems. As the analytical instruments for comparing systems presented to date have been unable to bridge the gap of distrust between the adherents of the individual systems, the authors seek

12

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

inspiration in considering other non-forest certification initiatives. The result is the debunking of a number of myths which have become accepted as facts almost beyond question in the debate between the actors in forest certification. The last part of the book focuses on the question of whether certification is a driver for sustainable development, or is instead a constraint or even counterproductive. Nina Bressel and Klaus Dieter Wolf consider the phenomenon of forest certification from the point of view of political science. They explain that states and societies explore different strategies to cope with the globalisation-related problem of reduced ability of nation states to solve problems. As a multi-stakeholder initiative, certification is an option for bundling the problem-solving resources of the various actors, and for utilising its high degree of legitimacy to offer a viable governance concept which transcends borders and levels. Jürgen Hess contrasts the expectations and concerns for forest certification with the impacts observed and publicised to date. In this, he distinguishes between impacts at the enterprise, the sector and transsectoral levels. The paper also explores the barriers facing forest certification at these various levels. Practical experiences with forest certification in Brazil is described by Adalberto Verissimo, Roberto Smeraldi and Tasso Azevedo. At the end of 2004, Brazil ranked fifth in the world in terms of FSC certified forest area, with 3 million ha. The country is an example of the use of strategic instruments for disseminating forest certification, such as buyer groups, producer groups, trade fairs and public relations campaigns. These developments were supported by an NGO alliance for the use of certified forest products. The paper lists seven areas of activity for civil society, industry and government, which have to be addressed if certification is to evolve from a niche product to a market leader in the next five years. In the final paper, Dietrich Burger investigates the common goals and principles of forest certification and development cooperation. He concludes that there is high potential for mutual assistance, which is still largely unexploited.

Conclusion: a helpful instrument with development potential
„Forest crisis” still not solved The outstanding potential of forest management as a pillar for sustainable development is known. The commitment to sustainable development by 178 countries, including all the world’s forest countries, shows clearly what principles need to be followed in utilising forests. Forest certification, which aims at complying with and rewarding such principles, has had astounding success in the past 15 years, but has still failed to slow the pace of forest destruction, particularly in the tropics - a sobering balance. However, it would be premature to conclude from this that forest certification has failed.

13

Conclusion: a helpful instrument with development potential

Managing forests can be compared with a ship which is kept on a particular course by a lot of effort from many hands. It would be unrealistic to expect that a single instrument - let alone one which was until recently totally unknown - could change the ship’s course quickly by itself. An interim balance after only 15 years of forest certification can only answer the questions of whether the instrument has demonstrated its ability to follow the right direction, and whether and how the capability of the instrument can be improved. The instrument has proved helpful Although there are still only a small number of studies dealing with the impacts of certification, there is growing evidence that forest certification helps to make more responsible use of resources in forest management on the lines of sustainable development. Natural resources are used more economically, and more in the interests of our grandchildren. There is more promotion for employee health and training. The rights of neighbouring communities are better protected, and gains are more equitably shared, e.g. through adequate payment. The capital and other economic resources invested are more efficiently used through improved planning, avoiding unnecessary losses and increased attention to learning processes in operating procedures. From a development policy point of view it is particularly important to emphasise that forest certification also promotes improved use of social capital, i.e. the stock of rules and standard behaviour: legality is promoted (i.e. compliance with formal legislation); many certification systems require increased compliance with traditional rules and rights; coherent integration of forest management into the cultural, administrative and political environment is reviewed critically and possibly improved; forms of conflict resolution are further developed and practised; the same applies to forms of participation; as a result, certification also contributes to reducing the mortgaging of social capital which lies in the isolation and walling off of the forestry sector and which has become positively hazardous in some countries. The opening up of the forestry sector to include relevant actors and to enhance comprehensibility and transparency for society are prerequisites for forestry’s potential for sustainable use to be fully utilised and acknowledged by society at large. Opening up the forestry sector to broader groups of the population is, however, regarded by traditional representatives of the forestry sector as a threat rather than as support, which is a major reason for their resistance to forest certification. Possibilities for enhancing the capability of forest certification Forest certification has proved useful in nudging forest management into a new direction. Staying with the image of the ship, the instrument is working in the right direction, but it is too weak. Naturally, certification alone cannot reorient forest management towards sustainability,

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Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

and particularly not in worldwide terms. However, the trivial recognition that certification is not a panacea should not be seen as a reason to ignore certification completely. Reorienting forest management requires restraining of the opposing forces of actors not aiming at sustainability, either through regulatory measures or persuasion, while the forces aiming at sustainability need to be strengthened and better coordinated. Forest certification itself must also work on enhancing its capability. However, the capability of certification can only be measured to a very limited extent in terms of the certified area, just as the capability of a commercial company is not necessarily expressed by its sales. In the same way that sales can be relatively easily increased in industry by reducing quality and price (although this is often at the expense of longer term capability), it is easy to increase certified area by lowering requirements. However, if done at the expense of the credibility of certification, this poses a serious risk to its future viability. That is why all discussion of enhancing the capability of certification must focus on its credibility as its most valuable feature. This is based on three factors: clear reference to the paradigm of sustainable development, i.e. the paradigm must show through in all elements and phases of certification; transparency of participation of those involved in specifying the paradigm for specific situations (e.g. formulating regional standards); transparency of objective and technically valid conformity verification. If any of these were to be diminished in the attempt to enhance the capability of certification, its overall credibility would suffer. There are numerous possibilities for boosting the capability of certification which are not mutually exclusive: avoiding unnecessary complication
• •

understandable language limitation to regulation which is actually needed stepwise approach proof of legality state regulatory framework public sector purchasing industry investment aimed at sustainability civil society transparency of civil society organisations

reducing complexity
• •

boosting coherence between participating actors

• •

expanding of the range of certification services

15

Conclusion: a helpful instrument with development potential

• • •

certification of management of forest resources outside the forest certification of environmental services multi-sectoral development policy services.

Avoiding unnecessary complication The fact that standards and certification procedures often seem complicated is frequently due to communication problems. Often they use a technical vocabulary which the target groups are unfamiliar with and find difficult to understand. Eliminating such communicative access barriers to certification is time-consuming, but not very difficult if the target groups are involved. Certification can also be unnecessarily complicated if procedures are regulated for which no regulation is needed. For example, in communal forest management, certain ecological standards can be ensured through traditional knowledge, working methods or available equipment, even without specific rules. Certain requirements for documentation can be irrelevant or burdensome for certain types of operation. However, caution is needed when „streamlining” regulations. For example, safety standards for forest work are not redundant simply because the work is being done by the forest owners themselves. Reducing complexity Sustainable forest management must satisfy a range of ecological, economic and social criteria (including institutional criteria). Accordingly certification of sustainable forest management is inevitably extremely complex. However, this complexity can become an obstacle, particularly if the forest management is at a level still far removed from sustainability. With regard to this obstacle to certification, current discussion focuses on two approaches in particular: stepwise approach and proof of legality. Stepwise approach: The International Tropical Timber Organisation (ITTO) is currently looking intensively at this approach. Based on the recognition that the demands of existing standards are a barrier rather than an incentive for many tropical producers, ITTO commissioned studies on stepwise approaches to attaining certification (SIMULA et al. 2004; PINTO DE ABREU / SIMULA 2005). The basic idea here is to identify the differences in a concrete operation between operating practices and an internationally recognised standard, and then to formulate an action plan to establish compliance with the standard; the operation’s progress towards conformity is verified by independent experts (RICHARDS 2004: 10). Based on the studies by SIMULA et al. (2004) and PINTO DE ABREU and SIMULA (2005) the conceptual framework was further refined and addressed in a recent workshop sponsored by ITTO (ITTO 2005). Similar stepwise approaches are already practised by the private sector, e.g. by IKEA and Home Depot (RICHARDS 2004: 11) and by the Global Forest & Trade Network (GFTN) of the World Wide Fund for Nature (WWF) (RICHARDS 2004: 13). The national Malaysian certification system MTCC uses a stepwise approach in developing the certification standards (ITTO 2005). Overall, the idea of the stepwise approach seems to be consolidating further, and is also 16

Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

supported by regional processes such as those of the Association of Southeast Asian Nations (ASEAN), the Commission in charge of Forests of Central Africa (COMIFAC) and other international actors such as FAO, United Nations Economic Commission for Europe (UNECE) and The Forests Dialogue (TFD) (ITTO 2005). Certification systems so far have been relatively cautious, due to the risks of the stepwise approach in terms of credibility, costs and doubtful benefits, but seem to be taking an increasingly constructive stance towards it. Proof of legality: Preventing the trade in illegally produced wood and requiring proof of legality of origin for all traded wood would be an important step en route to regulated forest management. A number of interstate initiatives and voluntary private sector codes of practice are currently looking at this possibility (RICHARDS 2004: 17). This apparently simple approach does, however, pose difficulties in both concept and implementation. Legality is not synonymous with sustainability. The Brazilian NGO Amigos da Terra-Amazonia Brasileira (a member of Friends of the Earth) was the first to point out in the 1990s that 80% of the wood from the Brazilian Amazon region came from illegal origins, and recently published a study entitled „Damaging legality” (SMERALDI 2002) showing that 80% of the wood from the Amazon now meets legal requirements. This is because a simplified approval procedure for clearing by small farmers under state settlement programmes makes it possible to issue transport approval for twice as much wood as is currently being processed. The black market in these transport permits easily „legalises” wood from unapproved logging. This means, however, that forest use is no closer to sustainability. Conversely, it is virtually impossible to meet the formal conditions for proof of legality for sustainable forest management in communal forest or on indigenous land. Legality does not necessarily mean equity. Proof of compliance with national legislation in advance of necessary legal and institutional reforms can actually further exacerbate existing injustices. (KAIMOWITZ 2003). Tracking legal origin along the entire product path, and particularly through the international trading system is very difficult, not least because of the possibilities of fraud (RICHARDS 2004: 17). Not all certification systems are able to provide credible proof of legal origin (ITTO 2005). It is too early to say whether the current intensive international debate about proof of legality for wood will produce results, or what these will be. It seems unlikely that proof of legality will prove a simple alternative to forest certification. There would seem to be little point in developing the proof of legality and certification in isolation from each other. It is conceivable that proof of legality will be formulated as a step towards certification, or that the existing certification systems will be reviewed and possibly modified to meet the requirements for proof of legality with reasonable effort. Boosting coherence between participating actors Forest certification is a possibility for concrete implementation of the paradigm of sustainable development. Not the least of the reasons for the dynamic development of forest certification is that the state, private sector and civil society all participate, even if they have different weights. This new form of governance - joint formulation of a control instrument - has a high level of 17

Conclusion: a helpful instrument with development potential

credibility and binding status, specifically because of the cooperation between social actors who have previously been perceived as antagonists (private sector and civil society groups) (PATTBERG 2004: 3). This assumes that each of the actors involved takes seriously the principles implemented in forest certification as they apply to the actor's own areas of influence, and works towards their implementation - i.e. actors display coherent behaviour in their various spheres of activity. Increasing coherence among the actors involved results in the development of forest certification reflecting positively on the actors, generating a multiplier effect. Given coherent behaviour by the actors, implementation of the principles of sustainability in the framework of certification can result in an accelerating process of improving the conditions for certification and for sustainable development. Each of the groups of actors involved - state, private sector, civil society organisations - can promote certification and sustainable development simultaneously in numerous areas, outside their direct involvement in shaping certification. Here are just a few examples of outstanding areas: Regulatory environment: In its sovereign function the state can act to ensure that the legal, tax and economic environments for the forestry sector comply as closely as possible with the principles on which certification is based. This could be done e.g. by harmonising forestry law provisions with specifications for certification, by having state controls take account of certification controls, and by rewarding certification in tax assessments and fees, granting use permits and credits. In this way certification would act not only as a market instrument, but also as a „soft policy instrument”, avoiding unnecessary double burdens and harmonising the relationship between national policy and certification. SEGURA (2004: 17-22) lists a range of possibilities for national governments to take certification into account in shaping the regulatory environment. Public sector procurement: Besides its sovereign function, the state also often appears in the function of a commercial enterprise. Public procurement can and should be configured to be coherent with the policy guidelines for legality and sustainability. Investment aimed at sustainability: Banks increasingly are making loans conditional on proof of origin and certification. The World Bank, for example, provides investment specifically for enterprises satisfying the requirements for independent certification, or presenting action plans for specific periods to achieve compliance with recognised certification standards (ITTO 2005). According to RICHARDS (2004), 17 investment banks - including CITIGROUP and ABN-AMRO - have agreed the „Equator Principles” for assessing and managing the social and environmentally relevant risks of project financing (http://www.equator-principles.com). These banks are committed to the standards of the International Finance Corporation (IFC) for examining the social and environmentally relevant impacts of projects. The Dutch ABN-AMRO has implemented a detailed risk policy for forest management and plantations. Forest certification can be promoted as a viable investment and also support other investment aimed at sustainability by providing a guiding example of the application of social, ecological and economic standards. Transparency of civil society organisations: NGOs often press for greater transparency, e.g. in decision making processes and flows of goods in the forestry sector. However, they frequently encounter a certain resistance from state and the industry, because actors there do not feel

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Forest certification: taking stock
Dietrich Burger / Barbara Lang / Jürgen Hess

they have enough information about the NGOs’ goals, decision-making procedures and funding. More transparency on the part of the NGOs could possibly make it easier for other actors to enter into partnership with them and dismantle obstacles to certification. This would also improve the conditions for sustainable development. Expansion of the range of certification services Certification of forest resources outside the forest: Products and services similar to those from the forest can also be provided by other ecosystems dominated by trees, e.g. boulevards, parks and other urban tree systems, or mixtures and rotation of trees and agricultural crops, which are particularly characteristic and important for land use in the tropics. The exclusive focus of forest certification on the forest has so far been pragmatically justified, but involves the risk of neglecting and discriminating against other viable land use systems. Certification should accordingly not be restricted to the use of forests, but should cover other land use systems with a strong tree component. Certification of environmental services: Because the value of the forest to sustainable development lies specifically in the variety of products, forest certification should cover all products and functions. Specifically, forest certification should also include certification of CO2 binding, water storage and purification as well as certification of nature reserves. Multi-sectoral development policy services: The impacts of forest certification are not limited to the certified enterprises. The whole process of agreement and binding implementation of standards has institutional impacts on organisations, behaviour and culture throughout the entire sector, and beyond this in society itself. Forest certification supports sustainable development in a particularly effective and obvious way. This development policy benefit should be much more strongly reflected, embodied and harnessed in the further conceptual and political development of forest certification. Listing a number of possibilities for expanding the range of services in forest certification should not be understood as a call for making these expansions in a rush and within just one certification system. Further development of forest certification following an institutionally diverse and stepwise approach could offer a viable chance of reducing conflict energies and accumulating cooperation energies.

19

References

References
BURGER, D. / MAYER, C. (2003): Making Sustainable Development a Reality: the Role of Social and Ecological Standards. GTZ Programme office for social and ecological standards, Eschborn. CASHORE, B. / AULD, G. / NEWSOM, D. (2004): Governing through Markets. Forest Certification and the Emergence of Non-State Authority. Yale University Press, New Haven & London. DEUTSCHER BUNDESTAG (1990): Schutz der tropischen Wälder: eine internationale Schwerpunktaufgabe. Bericht der Enquete-Kommission des 11. Deutschen Bundestages „Vorsorge zum Schutz der Erdatmosphäre”, Bonn. FAO (1995): Forest Resources Assessment 1990 - Global synthesis. FAO Forestry Paper No. 124. Rome. FAO (2001a): Global Forest Resources Assessment 2000. Main Report. FAO Forestry Paper 140, Rome. FAO (2001b): State of the World's Forests 2001. www.fao.org/docrep/ ITTO (2002): Forest Certification: Pending Challenges for Tropical Timber. ITTO Technical Series No. 19. ITTO (2005): ITTO International Workshop on Phased Approaches to Certification. Bern. www.itto.or.jp KAIMOWITZ, D. (2003): Forest law enforcement and rural livelihoods. The International Forestry Review Vol. 5(3). LENTINI, M. / VERISSIMO, A. / PEREIRA, D. (2005): A Expansão Madeireira na Amazônia. O Estado da Amazônia No 2. www.imazon.org.br MOLNAR (2003): Forest Certification and Communities: Looking Forward to the next Decade. Forest Trends, Washington. NUSSBAUM, R. / SIMULA, M. (2004): Forest Certification: A Review of Impacts and Assessment Frameworks. Tropical Forest Dialogue (TFD) Certification Paper Second Review Draft. PATTBERG, P. (2004): „Private-Private Partnerships“ als innovative Modelle zur Regel(durch)setzung? Möglichkeiten und Grenzen eines Konzeptes am Beispiel des Forest Stewardship Council (FSC). In: BRÜHL, T. et al. (eds.): Unternehmen in der Weltpolitik: Poltiknetzwerke, Unternehmensregeln und die Zukunft des Multilateralismus. Dietz Verlag, Bonn. PINTO DE ABREU, J. A. / SIMULA, M. (2005): Setting the Scene: Overview and Implementation of Phased Approaches. Presentation at the ITTO International Workshop on Phased Approaches to Certification. Bern. www.itto.or.jp

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Dietrich Burger / Barbara Lang / Jürgen Hess

RICHARDS, M. (2004): Certification in complex socio-political settings: Looking forward to the next decade. Forest Trends, Washington. SCHERR, S. J. / WHITE, A. / KAIMOWITZ, D. (2004): A new Agenda for Forest Conservation and Poverty Reduction: Making Markets work for Low-Income Producers. Forest Trends, Washington. SEGURA, G. (2004): Forest Certification and Governments: The real and potential influence on regulatory frameworks and forest policies. Forest Trends, Washington. SIMULA, M. / ASTANA, S. / ISHMAEL, R. / SANTANA, E. J. / MARCELO, M. L. (2004): Preliminary Report on Financial Cost-Benefit Analysis of Forest Certification and Implementation of Phased Approaches. International Tropical Timber Council ITTC (XXXVII)/13. SIMULA, M. / BURGER, D. (2002): Achieving the ITTO Objective 2000 and Sustainable Forest Management in Brazil. Report submitted to the International Tropical Timber Council by The Diagnostic Mission Established Pursuant to Decision 2 (XXIX) Yokohama. www.itto.or.jp/inside/inside_ITTO.html SMERALDI, R. (2002): Legalidade predatória. O novo quadro da exploração madeireira na Amazônia.Amigos da Terra- Amazônia Brasileira, S. Paulo. SMERALDI, R. / VERISSIMO, J. A. (1999): Hitting the Target: Timber Consumption in the Brazilian Domestic Market and Promotion of Forest Certification. Piracicaba/Belém. SOBRAL, L. / VERISSIMO, A. / LIMA, E. / AZEVEDO, T. / SMERALDI, R. (2002): Acertando o alvo 2. Consumo de madeira amazônica e certificação florestal no Estado de São Paulo, Belém WHITE, A. / KHARE, A. / MOLNAR, A. (2004): Who Owns, Who Conserves and Why It Matters. Feature: Forest Ownership. Forest Trends, Washington. WWF (2005):The effects of FSC Certification in Estonia, Germany, Latvia, Russia, Sweden and the UK. WWF European Forest Programme. www.panda.org/europe/forests.

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Forest management: a potential pillar of sustainable development

Forest management and development
Ronnie de Camino

Forest management and development
Ronnie De CAMINO

Forestry is not in its essence, about trees. It is about people. It is only about trees in so far as they can serve the needs of people WESTOBY (1962) Forest management has strong links with development. If we are to be consistent with Westoby’s vision, forest management should no longer be defined in a purely technical sense, nor should it be considered to be meaningful only for foresters. Forest management needs to be understood within the context of both „Our Common Future” and „Agenda 21“, which try to orientate humankind’s current activities and those of future generations towards sustainable development (UNIVERSITY FOR PEACE 2002). It is not sufficient for forest management to guarantee a continuous flow of products. Moreover, every single social institution and in particular, businesses, need to adopt ethical codes which can be implemented meaningfully and within the context of a fair society and a principle of accountability (MARGALIT 1998, JONAS 2000). Therefore, the author adopts the following definition: The sustainable use and management of forests (or good forest management) is a process that gives value to forest as an on-going activity. In addition: 1) it entails the intervention in the forest for the extraction of wood and other products and services; 2) the harvest of goods and services is within the productive limits of the system and its carrying capacity, and its level guarantees the permanent functioning of the ecosystems; 3) the operation is profitable according to the manager’s criteria; 4) all actors involved in or affected by the process participate in its design, execution and evaluation and in the distribution of the costs and benefits of the policy and specific practices, according to their rights and responsibilities; 5) it is part of a sustainable development, which means that it is not isolated from national development and related sectors, or from the rights of future generations. Good forest management is a condition which is reached through successive stages and levels of increasing demands that are in tune with national and regional realities and with specific actors in the respective forest management unit (FMU) (DE CAMINO 2002a). Forest management needs to be synonymous with sustainable development at national, regional or local levels, depending on the relative importance of the forest resource and its evolution. However, many experiences show that little progress has been made in terms of integrating effectively the economic development needs of the local communities with the conservation objectives for forests and diversity. Those who have participated in forest management have so far failed to find the strategies and orientations required for translating the principles contained in the definition into effective action on the ground. On the one hand, businesses have aimed at economic development from the point of view of optimising profit (income and utilities) while on the other, local and indigenous communities have not been granted the political and financial long term support needed to genuinely manage their resources.

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Current forest management in developing countries with an emphasis on Latin America

PRETZSCH (2003) and PERSON (2003) both identify various historic stages in policies and thus in forest management over time: 1. 2. 3. 4. 5. 6. 7. Traditional forest use by local communities: holistic, endogenous relationships, local knowledge Forest use by colonial powers: specialisation, fragmentation of resources Forests as the basis for national growth: accumulation of capital and its transfer to other sectors Internationalisation: orientation towards technology and external markets Polarisation: industrial forestry, social and conservation forestry Globalisation: choices between democratisation and devolution or privatisation and deregulation Poverty reduction, governance, institutions and implementation of law.

It could be said that each and every one of these stages exists simultaneously in different parts of the world, but that the trend is increasingly towards the last three.

Current forest management in developing countries with an emphasis on Latin America
Not everything that is taking place in forest management is negative. After all, problems arise, but solutions are being sought and found. There have been some important events since the beginning of the millennium:

1. - A positive response to the results of the Earth Summit (Rio 1992), as conditions for forest management have improved since the nineties. These responses have come from governments, businesses, non-governmental organisations (NGOs), communities, civil society and to a lesser extent from donor agencies. There was an initial trend to improve forest management with a growing number of certified Forest Management Units; to define and apply principles, to set in place criteria and good forest management with legally binding indicators at national level in various countries, and to give recognition to the role played by community forest management as a contribution to sustainable human development.
2. - Forest legislation has been updated in various countries, changing old laws based on the principle of command and control by others and including decentralisation, delegation of authority, access of communities and citizens to forest management, to adaptive management, etc. Often there is a large gap between the proclamation and effective implementation of laws due to the weakness of the official forest institutions and the complexity of the processes, which can make compliance extremely difficult. 3. - There have been significant institutional changes in a few countries. These changes have substantially diminished „institutional uncertainties” with outstanding examples in Guatemala and Bolivia, where legislative changes have been accompanied by profound institutional improvements, and a kind of „wiping the state clean”, which has allowed for a regeneration of

26

Forest management and development
Ronnie de Camino

the ruling institutions and getting rid of many abnormalities from the past (CARRERA et al. 2002, FAO 2000). 4. - It appears that the general trend to deforestation has slowed down. In many countries relevant laws are being more effectively implemented and incentives for better forest management are more commonplace (DE CAMINO et al. 2000, CARRERA et al. 2002). 5. - The level of knowledge has improved. Although it is true that a great deal of knowledge also brings new uncertainties, the risks created by an unreliable forest management have been reduced substantially (AMARAL et al. 1998, MAGGINIS et al. 1998, INAB 1999). 6. - Development of low impact extraction is considerable, reducing the impact on the remaining trees. The change of crown coverage after harvest varies between 10 and 15% according to scale, management intensity and type of ecosystem where work is being carried out, allowing for a normal functioning of the remaining ecosystems (AMARAL et al. 1998, MAGGINIS et al. 1998, INAB 1999, FAO 1997, HEINRICH 1998, DE CAMINO 2002a, CORDERO 2002, QUIROS 2002, CARRERA et al. 2002, CABALLERO et al. 2002). 7. - Forest plantations are increasingly being offered as an alternative to natural forests in order to supply communities and industries with the wood they need. There are numerous examples of community forest plantations that have increased the availability of products and improved people’s and communities’ incomes, as is the case in India, Korea and China, and various countries in Africa, Central and Latin America. In addition, there are large initiatives for industrial forest plantations in Chile, Brazil, Venezuela, Ecuador, China and Vietnam, which aim to generate products and wealth, but which, however, still need to be examined for their social impact, given that they have not brought about a sustainable human development for the communities in the vicinity of plantation areas. There is also a complementary use of wood from plantations and from natural forests for compound products, allowing a much more efficient utilisation of a cubic meter of precious wood for laminated sheets and chip-board or particle board, using wood particles from plantations. To a certain extent, this technique allows pressure to be taken off natural forests, at least in some countries.1 8. - A trend towards an increasingly integral utilisation of forests, including wood, non-wood forest products (NWFP) and environmental services, allowing in certain cases profit to be obtained from harvesting products and supplying services. Some forests produce wood, leaves, fruits and seeds while in addition providing water services, carbon sequestration, and biodiversity and landscape management. Recent developments with regard to Russia’s ratification of the Kyoto Protocol give rise to new hopes that forests will begin to have more value for land use and that this will in turn reduce deforestation and conversion to other land uses. This means that forest management has become a case of simultaneous production of various goods. However, criteria imposed by developed countries are given priority in international negotiations and thus far only carbon sequestration by forest plantations has been accepted, whereas carbon sequestration through forest management and through locking up carbon in protected

27

Current forest management in developing countries with an emphasis on Latin America

areas is not yet valued, making it difficult to grant financial incentives through transactions derived from international agreements. 9. - The emergence of forest certification after Rio 1992 has made an important contribution. It has made exponential progress which nevertheless still only covers a very low percentage of all the world’s forests. The Pan European Forest Certification (PEFC) system has formally certified those areas which already have good forest management. 10. - The greater importance and recognition given to the services provided by natural forests has allowed the use of conserved forests to be valued and it is now considered profitable to leave areas as natural reserves or protected areas. Nowadays, there are communities and private companies developing protected areas for ecotourism, which is currently an emerging sector important for the local, regional and national levels (DE CAMINO et al. 2000). It cannot be said that sustainable forest management at a world level and in developing countries is a widespread activity. Only a couple out of hundreds of forests around the world are well managed. But good examples are also abundant. It is now necessary to multiply these good initiatives and extend them to the largest possible number of forests. To this end, it is necessary to create the social, economic and political conditions on a national and international basis, granting communities access to natural resources, developing reliable systems for forest concessions, simplifying procedures, decentralising authority, bringing payments for environmental services into general use in forest management, giving access to credit, etc.

Forest management and safeguarding the subsistence of communities
A high percentage of the rural population depends on the forest to satisfy its needs. The potential of forests to secure the subsistence of communities requires careful analysis. Some argue that forests, especially natural ones, are not able to guarantee the subsistence of local communities. Others exaggerate the possibilities offered by forests indicating that they can support and bring progress to families in an undefined manner. Neither optimism nor pessimism can be generalised. There are cases where the forest is not sufficient, even if well-managed, and there are others that can guarantee the minimum acceptable conditions for the community and, furthermore, when the resource is rich, society’s development can be based on its management. It is important not to make the mistake of believing that profitability is only a concept without additional meanings. Profitability is not merely restricted to the concept applied by developmental or commercial banks. For example in the forest ‘ejidos’ of Quintana Roo in Mexico, ejido landholders paid themselves high wages for their working hours when they started forest management and commercial operations for the extraction and industrialisation of forest products. From the point of view of a bank the result is obviously low profitability, as a result of the high wages paid. In contrast, for the ejido landholders it meant an increase in the remuneration for their labour and thus an increase in their wages. In other words, planned benefits had been advanced. This is legitimate for people with enormous needs in terms of food and wellbeing. The moment when they can think of investment in the community and capitalisation in forest operations will come in time. 28

Forest management and development
Ronnie de Camino

There are other cases, such as social companies, cooperatives which are not thinking in terms of making large capital investments in their commercial activity (which would be the traditional approach for a company), but which are trying to invest in social and human capital rather than in physical capital. For them, the education and health of their children is important, as well as training and further studies. These communities would be able to concentrate on investing either in technology or in the infrastructure if not so much of their money was going to the State for basic social services for the population. Without a doubt there are communities that have failed in their attempts at forest management and which have undergone substantial economic losses. Others, by contrast, have managed to secure the minimum acceptable conditions for the provision of food, education and health. The forest is a source of partial or total subsistence for many communities. The possibilities of subsisting become more remote the closer communities are to urban areas. Problems begin when trying to access markets because many forest products have a restricted market or market structures become increasingly less competitive the further they are from primary production. Box 1 describes inputs for the means of subsistence provided by forests and the impact that changes in the forests have on communities. A large number of households in developing countries are consumers of subsistence goods from the forest. But the percentage of products from these systems is declining and supplies are increasingly being met by managed trees (agroforestry systems) as well as by natural forests. However, forests continue to be an important source of products and constitute a reserve that can be made use of more intensively during difficult times. Access to forests and tree resources can also help rural households to diversify their subsistence base and to reduce risks. Forests, therefore, form a safety net for the very poor in times of hardship. Forests are a natural capital: past development efforts have mainly focussed on the building of natural capital, without paying equal attention to the way forests are combined with other assets to maintain subsistence, especially by the poor. This lack of attention has led to difficulties in comprehending the contribution made by natural products to sustainable subsistence (DFID 2002). It is difficult to quantify the total contribution made by forests and trees to subsistence. A significant part of forest products are consumed by those who collect them; the amount collected varies according to season, access and alternatives. Most of the information available is descriptive and often extremely specific to each situation. Few studies quantify the proportion of household inputs, allocation of labour, income and costs derived from the forest. Studies have been made on wood fuel and other specific forest products; the surveys and measurements usually leave out information about their use by households or about activities relating to a more complete range of forest products (BYRON / ARNOLD 1997).

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Forest management and safeguarding the subsistence of communities

Box 1: Forest products and rural subsistence systems (ARNOLD 2001)
Characteristics of inputs used for subsistence which come from forests Subsistence and cultural importance Forests form an integral part of the social and cultural frame of reference for forest inhabitants. Forest products supplement/complement inputs from farm systems: fuel, food, medicinal and vegetable products, etc. They are often important to fill seasonal food deficits and other kinds of deficits, especially in times of hardship. Forest food improves the palatability of basic diets and delivers vitamins and proteins. Demand for these inputs may weaken, but persists for some aspects (e.g. medicinal uses). Inputs can become more important when farm production or income from non farming activities decline in importance; when support programmes by the government or new agricultural crops make it necessary to use forest resources, while income increases and external input supplies gain in importance and costs make harvesting activities difficult or divert products from subsistence consumption into producing surpluses that generate income. Changes that can occur in inputs which originate in forests

Agricultural inputs Forests act as a starting point for shifting agriculture and nature protection. Trees on farm provide shade, windbreaks and buffer zones of wood and vegetation. They recycle nutrients at a low cost and on a wide scale. They also provide fodder, wicker for baskets to store agricultural products, wooden ploughs and other farm tools. Trees can come to have a growing importance as a less capital intensive way of combatting the decreasing fertility of the soils and a less intensive way of maintaining land in productive use (e.g. home orchards). But a growing availability of capital and access to externally purchased products can lead to substitution with other inputs (e.g. cultivation of pastures, purchase of fertilisers or plastic packaging).

Commercial products Trees help to diversify the household farm economy, generate income opportunities during non harvest periods, and are a source of income at difficult times. Many products are characterized by the ease and open accessibility of the resource from which they come and are within the limits of the capital and skills, possessed by rural farming families, who mainly engage in small scale activities based on home economics, most of which are low-return, produced for the local markets and are carried out on a part-time basis. They often fill a deficit or are a complementary source of income with a limited growth potential, but are, nevertheless, a very important survival strategy for the poor, often of particular importance to women either as small entrepreneurs or as employees. Some forest products provide the basis for full-time high income activities associated with high entry requirements for capital and expertise in markets which are as much uban as rural Some low-input low-income activities can expand as a result of the growing commercialisation of rural product designs. However, the majority of goods are inferior, and their use is declining. Some are displaced by manufactured alternatives and others are not profitable and are thus no longer produced as labour costs increase. Extracted raw materials are replaced with domestic products or synthetic substitutes. Those activities which in response to a growing and specialised demand generate a higher income, are more likely to prosper, particularly those which serve rural and urban markets. It is probable that a growing proportion of processing and trade will become concentrated in small rural centres and in towns.

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Forest management, including wildlife management, together with access to subsistence resources by the inhabitants of the forest communities and the communities in their vicinity, contributes to an increase in income, improvements in food security, reduction of vulnerability and offers a more sustainable base of natural resources and a greater well-being (DFID 2002). Increase in income Sales of forest products complement other income. A large number of households generate some of their income through the sale of forest products on a part time basis, when farm production is insufficient for the whole year. Income from the forests is mostly seasonal: some products can be harvested only at certain times of the year; labour supply and demand can fluctuate on a seasonal basis; income from forest products can contribute to the purchase of agricultural inputs or food between harvests. Income is often used to buy inputs for the performance of other activities, like sowing seeds or hiring additional labour to look after the crops or to generate working capital for marketing activities. Improving food security and reducing hunger Forests are a source of food and both supplement and complement what is obtained from agriculture; fire wood to cook food and boil water and a wide range of traditional medicines and other hygiene products (see for example HOUSE et al. 1995). It is probable that a large proportion of rural households depend on animal and vegetable products from the forest to satisfy part of their nutritional, cooking and health needs (BYRON / ARNOLDS 1997). With the supply of materials for the fabrication of baskets, building of storage structures, and making of tins and tools used for hunting and fishing in peasant farming, forests also contribute to the domestic economy. They supply inputs for farm systems such as fodder and mulch for soil protection. They contribute to the recycling of soil nutrients, help to conserve water and soil and give protection and shade to animals and crops. Reduction of vulnerability The poor live precariously, without the ability to alleviate adversity. The existence of forests and trees plays an important role as a reserve or safety net, sustaining livelihoods and providing income in times of harvest failure, scarcity, unemployment and during other emergencies or difficulties or for satisfying exceptional needs. Forest food is used more extensively to help satisfy dietary deficiencies at particular times of the year and is especially important in emergency situations such as floods, hunger, drought and war. Increase of well-being Forests supply non material goods which contribute to subsistence with the improvement of social and human capital. A feeling of well-being is dependent on factors such as self-esteem, a sense of control and involvement, health, access to services and political empowerment. Forest

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Forest management and safeguarding the subsistence of communities

management initiatives which support access to resources, participatory decision-making and equity, help increase this sense of well-being. It is possible to achieve sustainable subsistence using forests provided that certain conditions are fulfilled (CARNEY 1998), such as: The community is resilient to shocks and external stress; The community is not dependent on external support; Long-term productivity of natural resources is maintained through management; Forest utilization does not constitute a risk for the subsistence of others or compromise their options. To increase the contribution of forests to the susbsistence of the rural population (WARNER 2000, KAIMOWITZ 2003), it is necessary to have: A people-centered strategy (taking the subsistence needs of the rural population into account). Secure access to forest resources. The rural population should retain or be granted these rights so that forests owned by third parties can be harvested for subsistence goods (with agreements and collaboration arrangements between parties for a conflict-free access, which does not damage the direct interests of those who manage the forests). Incentives for the planting and managing of forests. These incentives should take into account promoting the consumption of subsistence goods among the rural population. Better opportunities. Introducing forest management further in natural forest areas and plantations can also improve the forests’ contribution to subsistence (for example by complementing workers’ wages with access to forest products). New options, such as small-scale forest enterprises, waged-labour in the forest sector, the planting and natural regeneration of trees for sale, and the use of trees and forests as inputs for agriculture and husbandry.

Forest management and poverty reduction (DE CAMINO 2002b)
Forests are part of a rural space which includes rural and urban communities. Poverty has been defined in absolute and relative terms. According to the definition of income in relative terms, the poor belong to that share of the population with less than 50% of Gross Domestic Product (GDP) per capita in the country (BEISNER 1995). This definition is very questionable. A poor person in absolute terms is a person who earns less than 1 $US per day. In reality, the definiton of poverty is much more complicated, since other variables in addition to poverty need to be taken into account. Other questions arise, such as whether poverty includes an appreciation of human development, household sustainability, participation, current consumption, food security, access to social services, income distribution, failure to cover minimum levels of nutrition, poor health, education and other services (MAXWELL 1999). Poverty also means a lack of sufficient food, income and of other goods and services which allow people to maintain an adequate standard of living and quality of life (ARNOLD 2001). 32

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Almost by definition, a large proportion of forests are in rural areas. The rural landscape contains different types of forests and both the rural population and rural poverty have a direct and indirect relation with their quality. Forest resources contribute to the subsistence of 90% of the 1200 million forest inhabitants who live in extreme poverty. They indirectly support the natural environment which makes agriculture possible and which provides food to half the population in developing countries. However, the potential of forests for reducing poverty and mitigating its effects is not given the acknowledgment and value it deserves (IUCN 2004). Although official statistics do not exist at either national or international levels, at least there are some estimates which should give pause for thought. Box 3 shows some figures on dependency of populations on forests. Box 2: Some figures which illustrate people’s dependency, including the poor, on forests and trees (CARNEY 1998)
1600 million people around the world strongly depend on forest resources for their subsistence, out of which: 60 million indigenous people live in the forests in Latin America, South East Asia and West Africa 350 million people who live in or close to dense forest areas depend on forests for subsistence 1200 million people in developing countries use trees on farms to generate food and cash income More than 2000 million people depend on biomass woodfuels (mainly fire wood) for cooking and warmth Forests provide more than 10 million rural jobs in developing countries, to which between 30 and 50 million jobs in the forest industry need to be added Natural products (many from the forest) are the only source of medicine for between 75-90% of the population in developing countries Worldwide, one in four poor people depend directly or indirectly on the forest for their subsistence

These figures on dependency should signal that forest management by communities, towns, the state and the private sector need to be included in strategies which aim to combat poverty. Some figures in Latin America show direct dependency by the rural poor on the forests in the region: In Honduras, more that one hundred associations of poor farmers have access to more than 300,000 hectares of forests (DE CAMINO 2000). In Brazil, more than 5 million people live exclusively from extractivism, both directly and indirectly, affecting over 300 million ha. (CLÜSENER-GODT / SACHS 1994, EMPERAIRE 1999).

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Forest management and poverty reduction

In Chile, small-scale subsistence farmers control 1.48 million hectares of forest in 279 family units (PENA 2000). In the past decade, the World Bank promoted strategies for poverty reduction. These strategies tried to maximise the use of natural, human and produced capital to guarantee the minimum level acceptable for the population. The forest sector has not been used to its full potential, but efforts to do so must be made. There are countries with a large endowment of forest resources, for which it is unthinkable not to include the forest sector in their strategies for poverty reduction. At the same time, there are districts, country towns and areas rich in current and potential resources, which are compelled to take the forest sector into account in their strategy for the reduction of poverty. In nations that use their forest potential intensively there is a regrettable correspondence between the foci for extreme forest development and the rate of poverty in these regions. In Chile, there is extreme rural poverty in areas where forest plantations are concentrated, whereas exports from these industries contribute between 9 and 11% of the country’s total exports (ASTORGA / REBOLLEDO 2004). In Costa Rica there are pockets of poverty in the areas surrounding the national parks. In the Olancho region in Honduras, which has the highest pine wood production in the country, inhabitants complain that the regional authorities are producing considerable wealth, whilst leaving only poverty in its wake in these rural zones. SUNDERLIN et al. (2004) reassert that forests have an important role to fulfil in the alleviation of poverty in at least two ways: Firstly, they are part of a safety net which helps the rural population to avoid poverty or which helps the poor to mitigate their condition. Secondly, forests have an un-developed potential which could provide the basis for progress. The contribution of forests to poor households is not captured in statistics, given that a large proportion of the goods involved are used to sustain the livelihoods of forest inhabitants or are exchanged exclusively in the local markets. In addition, most of the wealth generated by wood goes to benefit the better-off segments of society, while some characteristics of wood resources limit their potential to serve the poor and excluded. In spite of all these obstacles, forests can undoubtably increase their contribution to the alleviation of poverty, provided that those taking the decisions acknowledge their potential and act upon it. As with many things in forestry and forest management, the potential use of forests has not been made widely known. The situation of those 1200 million inhabitants continues to be precarious and is deteriorating as forest degradation takes place. The opportunities offered and obstacles presented by forests in the alleviation of poverty can be found in (SUNDERLIN et al. 2004, ARNOLD 2001): The conversion of forests into agricultural land, a practice that has been carried out for a long time causing deforestation, so that peasant communities can perform agriculture and have a means of subsistence. Forest has been replaced by agriculture and husbandry as a way of diversifying out of forest management, transforming the natural forest capital into the natural land capital for agricultural use. This change has had serious consequences for the sustainability of agriculture and for the subsistence of communities, with negative environmental impacts at local and global levels. However, certain complementary forestry solutions have subsequently emerged through the reforestation of degraded areas by

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businesses and communities and through agroforesty and wild pasture systems. The change of forests into agricultural land has been part of the process of colonisation and agrarian reform in which, in order to avoid conflict, forest land, mainly owned by the state, has been distributed, instead of distibuting agricultural land. Wood is the main source of value in most of the world’s forests, whether as raw material for the forest industries or for producing woodfuel. Existing business estimates for wood do not include much of its value as fuel, for which the highest percentage of its volume is destined. Improving wood production for the benefit of the rural poor has been met with problems related to lack of capital, technology and knowledge of distant markets. Additionally, the poor have never enjoyed wide access to forest resources for the production of wood. In seeking profitability, the State has taken ownership of the resources and is even challenging the rights of the indigenous and local communities (DE CAMINO 1997). In order to contribute to combatting poverty, it is necessary to provide forest-related communities with access and possibilities for efficient production, as is the case in El Petén in Guatemala, where forest community concessions were made; in Mexico with forestry ejidos2 and in Bolivia with forest management in traditional communal lands in the provinces of Santa Cruz, Beni and Pando (Tierras Comunitarias de Origen). NWFPs are direct providers of goods for subsistence or for trading in local markets, and do not have high capital requirements for their production (which can be performed by individuals). They are available in open or semi-open access ownership schemes. But non wood products can constitute a poverty trap and those who depend on them could be condemned to perpetual poverty. A surge of euphoria has encouraged forest management to concentrate on non wood products so as not to put pressure on the ecosystems, based on the naïve premise that all that is contained in forests can be sold and in unlimited quantities. Therefore, it is necessary to look for more profitable schemes for forests’ extractivists which will allow them to control more of the links in the chain of production, including the combination of wood production with non wood products in an integrated management system. Extractivism is important in most countries with forests but in some of these there are stronger marketing organisations providing support as is the case in Brazil’s extractivist reserves (nuts and rubber) or in some community forestry concessions in Petén (Uaxactún community with production of thick pepper, gum, xaté or Chamaedorea spp. and berries). Environmental services benefit the poor population in two ways: with water and the regeneration of soil quality through rotating slash-and-burn agriculture. However, the rural poor do not benefit from external environmental services in neighbouring regions, in the country and in the global society. This is partly due to the fact that it is not the poor who manage the land. They could benefit from the storage of carbon and carbon sequestration arrangements, from the service they provide in terms of protecting biodiversity and providing hydrological services. Current schemes are being excluded at the moment, given that national societies and global society still have not adopted the habit of paying for global services. Employment and indirect benefits. Forest management generates employment and other income opportunities such as trade with and services for forestry workers and companies. In addition, it is expected that forest development will have a trickle down effect, i.e. in 35

Forest management and poverty reduction

creating opportunities for companies, the rural population will also benefit. This is questionable due to the time needed for this benefit to have an effect. All too often, capital generated by forest farming is transferred to other sectors of production, and thus forests subsidise economic activities outside their areas (in Brazil, in the State of Pará, for example, income generated from the farming of two hectares of forests was invested to improve one hectare of grassland). The forest sector can be a large contributor to poverty reduction, provided that a series of measures are taken: 1. - Giving access to forest resources to poor rural communities, such as occurs currently in Guatemala with community forest concessions (CARRERA et al. 2002) and in Bolivia (CORDERO 2002) with community territories of origin (Territorios Comunitarios de Origen) and local community associations (Asociaciones Comunitarias de Lugar), which favour local communities and the local indigenous peoples. There are systems operating in Honduras with rights of usufruct conferred by the State to communities in areas of broadleaf forests (CABALLERO et al. 2002) and with the transfer of rights of usufruct in municipal ejidos and national forests to communities, as has been the case in Yuscarán and recently in Gualaco (GTZ / AFOCO 2002). There are important experiments in Mexico in which rural ejidos control more than 4.5 million ha of forests and manage them directly. 2. - In granting access, territories traditionally managed by grassroots communities are recognised, in addition to providing justice regarding territories which had historically been seized. Also, the norm has been for State concessions to be granted to private companies, which, as a general rule, have neither managed forests well nor protected the territories granted from deforestation. The new trend is fundamentally towards granting concessions to forest communities and indigenous peoples, breaking away from a tradition of asymmetry in terms of access to forests. 3. - The new policy by the World Bank (WORLD BANK 2002) of providing support to projects on tropical forests if they are linked to certified operations can become an excellent tool for increasing the areas under good management and improving access to forest resources for the poor population. Countries need to put pressure on the World Bank to make sure that this new policy will be implemented effectively and that forest management will be integrated into the Strategic Planning for Poverty Reduction. 4. - Combatting poverty requires that the World Bank and the International Monetary Fund (IMF) not only make recommendations to poor countries on how to reduce costs, but also demand from the international community the implementation of what is now called ‘Corporate Social Responsibility’ (CSR) by companies, in addition to what could be termed as ‘International Social Responsibility’, by international and bilateral cooperation agencies. In this way, substantial benefits from good management and a good conservation of forests can be achieved. Even countries with forest wealth can benefit if the World Bank accepts as payment for credit obligations, certificates (credits) for various environmental services, which it can in turn sell to countries which have compensation commitments, under the terms of the international conventions on biodiversity, climate change, desertification, etc. There are differences of

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opinion as to whether the State or the private sector should be managing the markets for environmental services. A successful example, centered on a State management approach, in one of the few countries in which payments for environmental services have been widely applied, is in Costa Rica (DE CAMINO et al. 2002). On the one hand, the disadvantages of a State management approach are exaggerated and on the other the advantages of a company management approach, whose motivation is profit through brokerage, are also exaggerated. This could lead to a situation similar to that of (pyramidal and unjust) income distributions, which today dominate many forest and agricultural products (coffee, pepper, fibers, seeds, fruits) whereby primary producers receive a low percentage of the final consumer price (0.1% in the case of coffee). It needs to be restated that the war on poverty is at the same time national and international, public and private, as well as being a question of economics and ethics. 5. - The poor are poor precisely due to a lack of power and access to resources. The international system should help promote and supervise alliances between companies and local and indigenous communities. Communities have and will continue having forests, a labour force and traditional knowledge. Companies can bring technology, capital, management skills and markets. If each and every company worked in alliance with a community, the private sector could make a contribution to poverty reduction. Such alliances need to be overseen in order to avoid the subordination of weaker members to the stronger, by for example NGOs which help communities in their relations with companies, as was the case in the community forestry concessions of Petén in Guatemala. There is a whole series of impacts that result from arrangements between companies and communities and which must not be disqualified, but analysed closer on a case by case basis (MAYERS / VERMEULEN 2003, CIFOR / FAO 2003). In addition, SUNDERLIN et al. (2004) and KAIMOWITZ (2002, 2003) pointed out a series of factors which seek to improve the potential of forests for poverty alleviation: decentralisation, de-bureaucratisation, changes to land tenure systems, democratisation, anti-corruption campaigns, reallocation of concessions, development of the growing local markets for forest products, availability of new technologies suitable for the small and medium scale enterprise and tackling global environmental threats. These factors are complementary to those mentioned above. To make a real contribution to a systematic reduction of poverty, forest management would have to develop from being a collection of projects without a major impact at the national or regional levels, into becoming a national scheme for forests and poverty reduction with welldefined policies. There is a need to take policy measures which would allow forestry production to become a permanent activity with a long term horizon, starting with participation and going through to self-management, in which the community would decide and the State or NGOs participate and collaborate (DE CAMINO 2000). Kaimowitz goes further by reasserting that forestry reform is as necessary as was agrarian reform in the seventies and eighties (KAIMOWITZ 2002). It would be then a question of taking stock of every forest in every country and putting them to use by facilitating community access to them. The effect of such a measure would be variable according to the resource base of the country or region within a country. It would not solve poverty completely but it would be an important contribution complementary to forest management.

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Forest management and securing peace

Forest management and securing peace
The Nobel Prize for Peace was recently granted to a woman ecologist from Kenya. Many would wonder about the relationship between peace and natural resources and specifically to forests. The granting of this reward is an answer in itself, given that the control of natural resources has always been an object of conflict. Wangari Maathai founded the Greenbelt Movement in 1977, which has since planted more than 10 million trees to prevent soil erosion and provide communities with wood for cooking. A United Nations (UN) report in 1989 highlighted that in Africa only 9 out of 100 trees felled were replaced, causing serious deforestation problems: runoff and loss of soil, contamination and sediment in water, problems in finding wood, lack of animal fodder, etc. The greenbelt programme has been mainly managed by women in Kenyan villages, who through protecting the environment and through waged work, planting trees, are now able to provide for their children and their future in a better way (WOMENS HISTORY 2004). Wangari started from the logic of subsistence and evolved towards a logic of environmental and human rights and the creation of social capital. Just as forests and trees can help to overcome conflicts, they can also make them worse. If we refer to the previous chapter on forest management, subsistence and combating poverty, it is easy to understand the path travelled by the Nobel Prize programme. From the very beginnings of the colonial period in Latin America, the King of Spain granted land rights (as Encomiendas) to subjects who served the Spanish Conquista, in the form of whole tracts of land, including in them as slaves the indigenous populations who lived there. Peace was broken in a radical way. Various indigenous tribes were also at war amongst themselves. However, it appears that natural resources were not destroyed in the wake of these wars, perhaps with the exception of those between the Aztecs and Mayans. In Latin America, natural resources were taken out of the hands of those who used them as a means of subsistence and were put into the hands of others who sought to use them to enrich themselves. A shift occurred from tribal property to private property involving unimaginable areas of land. After independence, the encomiendas were inherited by the liberator criollos, who in the best of cases and not always without a struggle abolished slavery, but who retained the land previously granted in encomienda and continued with the change of use. In several countries wars continued to be waged between liberators and the indigenous population, until all the native lands had been taken away from them. This was followed by a process of transformation and appropriation of products. In a similar way, but with some variations, this model was also repeated in Asia and Africa. In analysing the main causes of conflict in the mountains in Nepal with respect to the management of natural resources, UPRETI (2001), sums things up in terms of the following factors: 1. 2. Socio-economic inequalities and ethnic, cast and gender discrimination prolonged from the colonial period to independence, and even into contemporary modern States. Poor governance: profit seeking, extortion, corruption and domination by one elite, in addition to political bias. The communities do not have the means to protect themselves from powerful groups.

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3.

Ignorance about local needs, interests and experiences on the part of external domestic and international development agencies and use of unsuitable technological systems. Non consultative, non participatory policies were born. Discriminatory implementation of laws and rules skewed in favour of certain powerful groups. Demographic pressure. The growing population increasingly migrates to forest areas in order to be able to carry out agriculture in precarious conditions, without land entitlement, and whilst accelarating deforestation. Criminality and political violence. In forest regions violent conflicts emerge over forest rights, trade in products and power. Lack of participatory, people-centered mechanisms to solve conflicts based on learning, and lack of trust by the people in mechanisms for the solution of conflicts sponsored by the State. Weak, controversial and biased roles for the media and civil society organisations; public information is poor and does not take the weakest groups into account. In discussions, nature conservation predominates over the defence of rights for the rural poor and indigenous communities.

4. 5.

6. 7.

8.

A typology of the most frequent types of conflict linked to natural resources is presented by WARNER (2000) as follows: Intra micro-micro situations of conflict disputes over land ownership and its resources between private and communal owners (forest plantations and indigenous communities in Chile); disputes over borders between individuals and groups (concessionary foresters in Guyana); latent family disputes or disputes among relatives (succession and inheritance); disputes over natural resource projects taken over by elites or by the landowners who have the highest quality resources (forest concessions in Nicaragua held by private companies in indigenous territories); violation of constitutional or operational rights, such as agreements over the use of pastures, forests, illegal fund appropriation (restricting access for communities to collect wood and non wood products). Inter micro-micro situations of conflict situations of conflict between land owners and holders of usufructuary rights over resources (hunters in private and State-owned territories); situations of conflict between indigenous groups and new settlers (associations of retired members of the military and indigenous communities in Nicaragua);

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disputes resulting from envy which emerges from increasing income inequalities (among communities and cooperative members who enjoy access to forest); lack of cooperation among the various groups in the community (discrimination against women); disputes that arise when land arrangements are reviewed (companies with development concession arrangements on forests and indigenous communities). Micro-macro situations of conflict opposite needs and values regarding natural resources, for example between the protection of wildlife and security of subsistence; cultural conflict between community and foreign groups (Amerindio communities and personal concessions in Guyana); disputes over project management between community groups and external sponsors of projects (creation on behalf of sponsors of projects by parallel organisations to those that already exist in the community); disputes arising from political influence (national, provincial and local); disputes arising from differences between the aspirations of community groups and NGO expectations or those of the trading companies (NGOs that try to dictate norms to the communities which correspond with their own values and not with those of the community). Some examples showing solutions as well as conflict are as follows: Reclaiming land cultivated by forestry companies on behalf of the Mapuche and Pehuenches indigenous peoples in south Chile. The communities are currently claiming areas previously held by them as ancestral territories which were passed on to forestry businesses through a long, secular process. Forestry companies have almost fenced in the indigenous population and smallholders and destroyed the relations of production between former agricultural latifundios and smallholdings, reducing employment opportunities as a consequence (ASTORGA / REBOLLEDO 2004). Granting statal concessions of forests in the Atlantic forest regions in Nicaragua to private companies, in territories reclaimed by Miskita and Mayagna communities. The communities turned to the Interamerican Human Rights Court of Justice to reclaim their land. But the conflict grew unnecessarily out of control due to a lack of interest by the government, which competed for indigenous areas in order to obtain fiscal income through stumpage value of woods granted through concession (DE CAMINO 1997). Preferences in terms of granting concessions to private companies instead of to local and indigenous communities. As a general rule, concessions granted by the State have been oriented to private companies (in Peru, Indonesia, Bolivia, Cameroon, Nigeria) and hardly ever to indigenous or local communities (Mexico, Honduras, Guatemala). This fact simply indicates the relations of power between companies and communities and the lack of interest by governments in utilising the potential of forest management for the alleviation of

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poverty. During the eighties in El Petén, in Guatemala, forestry concessions were granted to private companies, who failed to manage the forests and protect them from encroachment. A multitude of situations of conflict arose in the region: illegal wood logging, illegal export of wood over the borders with Mexico and Belize, land disputes, plunder of archeological sites, drug cultivation and trafficking, military and guerrilla presence, etc. By the mid-nineties a radical change took place in the region. The national commission on protected areas (CONAP, Comisión Nacional de Áreas Protegidas), created the community forestry concession (Concesiones Forestales Comunitarias) system, which granted 11 community and 2 industrial concessions to private companies, completely changing the situation regarding land allocation. This move allowed an increase of governance with the change of responsibilities and community rights, as can be observed in El Petén, in Guatemala. There has been a reduction of fires and illegal felling of trees in units granted as forest concessions, because the communities feel they are the owners of the forests, which are valued by their inhabitants and on which they depend for their subsistence. This is the reason why they protect their territorial integrity from forest squatters and prevent the plundering of wood, fires and illegal logging of timber (CARRERA et al. 2002). Something similar happened in the State of Quintana Roo in Mexico, when the government decided to declare invalid concessions granted to para-statal timber companies and gave back the rights over forest areas to the communities. The communities have been managing these forests for almost 20 years now. Good governance has radically changed the situation since community and ejido concessions in Guatemala and Mexico have been certified by the Forest Stewardship Council (FSC). The granting of concessions to private groups linked with power. The struggle for the control of natural resources has been the primary cause of the war in Burma for more than a century. The exploitation of resources, including timber, has helped finance all the fighters in the current conflict. For well over 50 years civil war has ruined most people’s aspirations and restricted any significant development in the country. Burma’s elite and that of the neighbouring countries have profited from the situation, plundering the natural resources for material and political benefits, let alone performing forest management. In their case it is exclusively about exploitation (GLOBAL WITNESS 2003). Conflict situations which have transferred forest rights to local communities as is the case in India and joint forest management. In some communities local authorities have resisted the transfer of rights and responsibilities to the Panyachats, given that officers lose authority and prestige and therefore they prefer to continue maintaining their control and authority. For a long time, solving armed conflict through mediation followed by programmes of reconciliation and reconstruction were the bases on which to build peace. More recently, emphasis has been placed on the promotion of strategies for the prevention of conflicts, focusing on the local level, both in post and pre-conflict situations. Good governance, democratic participation and strengthening civil society are well known local strategies for the prevention of conflict. Less common but of a growing importance is the creation and implementation of „intelligent” development projects, particularly in the area of natural resources. This strategy capitalises on the need for cooperation among actors in the management of natural resources and the project provides the pivot or point of support around which to form the local social basis for peace. The design of community projects contributes substantially to solving conflicts and constructing 41

Forest management and securing peace

peace. It is part of the new strategic philosophy carried out by a certain number of donor agencies, which includes the Swedish International Development Agency (SIDA), the Canadian International Development Agency (CIDA), the UK Department for International Development (DFID) and the World Bank. The strategy can also be associated with the new framework of cooperation between the World Bank and the United Nations High Commissioner for Refugees (UNHCR) (WARNER 2000). Thus it is possible to conclude that forest management can be a source of conflict between countries and communities, at the same time as it can become part of the solution for conflicts, through well thought out forest management projects and programmes.

Forest management and deepening democracy
FUNG / WRIGHT (2003) established that „a fundamental challenge… is to develop transformative democratic strategies that can advance our traditional values - egalitarian social justice, individual liberty combined with public control over collective decisions, community and solidarity and the flourishing of individuals in ways which enable them to realize their potentials”. For the benefit of the entire society, it would be desirable to transform this imperfect democracy in which we find ourselves, especially in the poorer countries of this planet, identifying values that have universal application. Politically speaking, no one can oppose the search for democracy and sustainable development, egalitarian social justice, individual freedom, the control by communities over their own decisions, solidarity and flourishing of individuals. The authors mentioned examine real experiences in various countries with what is called „empowered participatory governance” (EPG), whereby ordinary people participate and influence policies which affect their lives. In this case it is about influencing policies and, more concretely, actions. The EPG is another form of expressing what has been termed community forest management in the case of forests. In the various examples of successful EPG initiatives analysed, we run into principles, design properties and enabling conditions that are present in the most significant experiences of community forest management. The principles of EPG indicate that such experiences usually have the following elements: Practical orientation: organisations which are developing in this area of work are driven by very concrete concerns related to practical problems, such as encouraging actors who are used to competing for power and resources to cooperate and foster more congenial relationships. Examples of this situation exist in systems of governance in the villages of Panyachat in Kerala, India, whereby the practical orientation was the devolving of functions and resources to the local level based on the principle of „subsidiarity“, which encapsulates the idea that everything that can be carried out and decided at the local level should be. In the case of the pilot forestry plan in Quintana Roo, Mexico, the problem was also a practical one: the ejidos lacked the right to use wood in their territories. Another notable case is Hojancha in Costa Rica, where the community was facing degradation of the soils they used due to lack of water in the community. Also, migration caused a reduction of the population by almost 50% in the short space of 10 years. In El Petén, Guatemala, communities were faced with poverty, deforestation and illegal logging. In general terms the

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discussions around national standards for forest management has brought many actors together with different visions, at times even contrary visions, in a spirit of collaboration. Bottom-up participation: In all EPG cases, the search for new channels and application of new approaches is performed by those who are more directly affected by the problems, who apply their entire inventive capacity to the formulation of solutions. This is precisely one of the most distinct characteristics of community management of forests and natural resources in general The communities of Panyachat in India, the forest ejidos of Quintana Roo, the Community Concessions of El Petén and the Hojancha community, have developed their own structures, primarily controlled by members of the community who, essentially self-motivated, try to solve concrete problems such as those already mentioned above. Local people prefer more far-reaching and realistic solutions to the narrow type proposed by those who come from the outside. It is not the case that external elements are never included, but the latter has been increasingly limited to a more passive and purposeoriented task, submitted to the scrutiny of the grassroots community organisation and made to follow the preferences indicated by the community in accordance with their own culture. Deliberate generation of solutions: Participants listen to each other and their respective positions and make group decisions after due consideration. Participants find solutions which can be translated into collective action, not necessarily those which can be totally endorsed or which may seem most advantageous, but rather those which offer solutions which others can accept, and which finally aim to build up a sense of solidarity by trying to see things from another person’s perspective. This is the approach taken by the examples quoted in India, Mexico, Guatemala and Costa Rica and by many other organisations with consultation and governance bodies aimed at generating action and solutions. These concrete examples have their own defined and regulated discussion mechanisms, which have to be respected. Furthermore, taking women into account strongly increases participation. Women now form part of directive boards and special action groups responsible for concrete tasks and specific production. In some cases women also enjoy common rights over resources. In addition to the principles cited above, most cases contain some characteristic design elements. Devolution: The State gives back control and accountability to the communities and their organisations. Grassroots organisations become a substantial public authority given that they become responsible for the fulfilment of laws. In El Petén, communities have enjoyed control over the forest for 25 years. In India, communities manage forest areas jointly with the State. In Quintana Roo, communities have their own organisations which make decisions over resources which belong to them. In Hojancha, the community has created a series of specialised organisations whose purpose is to take decisions regarding sectorial matters. In addition, local representatives of the community now hold key positions in the national institutional agencies in order to serve the community directly. In Honduras, on the basis of a community forestry project, a broad social forestry movement is now being developed in association with the municipalities and with the delegation of forest management in forest areas owned by the State and the municipalities3.

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Forest management and deepening democracy

Centralised supervision and coordination assumes that organisations and their actions enjoy a substantial degree of power and discretion but not as autonomous entities, fragmented in their decision-making. In each case, it has the characteristic of accountability and communication bringing local units together with subordinate institutions. It is about developing new forms of coordinated decentralisation. In the case of the Panyachats in India, forestry services are an important element of interaction, with outcomes of variable quality. In El Petén in Guatemala, CONAP has been responsible for transferring access and control. Simultaneously however, the community is self-accountable and duly monitored with regard to compliance with the terms of the contract. There is an important interaction in Quintana Roo with state authorities, concretely speaking with the governor’s office, as well as with the Secretary of Agriculture and Water Resources. Finally in Costa Rica, the community enjoys the support of several NGOs who are responsible for different aspects, but who also work in close contact with the authorities in the Ministry for the Environment responsible for the conservation area of Guanacaste. FUNG / WRIGHT (2003) suggest this is neither about a democratic centralism nor about absolute decentralisation, since these are both considered to be unrealisable. State-centred and non-voluntary: State power is colonised and formal governance institutions are transformed. Organisations try to influence decisions made by the State through external pressure. The idea is that in future, and because of this pressure, the State begins to replicate the three principles mentioned above as well as the design elements in the rest of its actions. For example, the use of the advanced forest fertiliser system in Costa Rica, introduced to benefit communities, was first started in the province of Hojancha and its application is now expanding into the entire country. The same is true of the ejidos in Mexico; application was first started in Quintana Roo, then on the so-called ejidos of the Mayan zones. Similar solutions were applied in other ejidos. In Guatemala, communities even began to bring the State into compliance with community concession contracts and questioned the government’s decision to declare a mega-park in the areas granted as concessions. In Honduras, after the experience in Yuscarán regarding community forestry, which involved the transfer of a mere 3000 ha of pine forest, 27000 hectares were transferred to the communities in the municipality of Gualaco, Olancho. This is a clear example of how communities have put pressure on the government to go along with compromises. In addition to the principles and design characteristics indicated, enabling conditions are also necessary in order to make EPG realisable. In fact, there are various conditions, which form part of one overall condition: achieving a balance of power between the parties participating in the process. This balance of power is achieved through literacy and capacity building, discouraging any potential for domination, through an obligation to consult before taking decisions, and by allowing for the possibility for forestry authorities to be questioned. In Hojancha, the community has taken over the institutions and intensively trained their technical support, administration and other professional staff. In Guatemala the communities have organisations within their network, such as the Petén forestry communities associations (ACOFOP), which challenge the State or private interests when a situation of conflict arises. In Mexico, the ejidos act independently but form part of civil society groups. This mechanism protects communities from potential unlimited power that might be inflicted upon them by external actors.

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Finally, in the case of community forestry in Honduras, the principle promoted by Westoby is followed implicitly, namely that development through forest management is about people, not trees. In the Yuscarán municipality, after an initial diagnosis, the initiative prioritises integral human development as a fundamental step, supported by two technical and economic elements: natural pine forest management and the creation of integral agroforestry farms as subsistence strategies for the long and short term aimed at income generation and the alleviation of poverty4.

Forest management and the creation of social capital
In today’s world, which is dominated by the economy, any kind of resource provision, ability or attribute, whether natural or physical, intellectual, spiritual or social, is considered as capital. Not wishing to create controversy, we shall continue calling such items ‘capital’ here, since they have already been accepted as such under the concept of capital (even though they could be named differently). It is possible to identify several types of capital, which in human enterprises and natural phenomena can form part of the processes of a system (CARNEY 1998): Natural capital, Physical capital, Financial capital, Human capital, Social capital, Political capital Social capital definitions Social capital is the „set of social relationships on which people” or the community „can draw to expand their livelihood options. These include kinship, friendship, patron-client relations, reciprocal arrangements, membership of formal groups, and membership of organisations which provide loans, grants and forms of insurance” (CARNEY 1998). Relationships of trust, reciprocity and exchange, community rules, norms and sanctions and links between groups, constitute the social capital necessary to mould individual actions into achieving positive results for the people, for biodiversity and sustainability in forest management (PRETTY / SMITH 2004). We are interested in referring to social capital in forest management because it is about a twotrack relationship. We uphold the hypothesis that good forest management can lead to the creation of social capital while at the same time the existence of social capital is a precondition of long-term sustainable forest management.

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In referring to forest management, the economic incentives to produce physical, political, economic and institutional changes are important but not sufficient. In almost every case, there is a need for social change prior to the existence of incentives. The formation of social capital is crucial before the activities that lead to the formation of physical capital can be initiated (TEWARI 1998). Social capital is collective, only exists in the social structure that nurtures it, and has a bigger correlation between local development and institutional efficiency than human or physical capital. An illustration of this is that Russia has an enormous human and physical capital but its GDP fell by 45% between 1989 and 1998, while the GDP of Poland, which also experienced a change of system but which had an organised civil society, grew by 20% during the same period (SOBRADO 2004). In this respect, there are cases that clearly demonstrate that indigenous and ejido communities, in Mexico for example, require more assistance in developing social community capital in order to allow them to manage new ventures such as ecotourism, water bottling, orchid production, etc. (DE WALT 2001). Social capital comes before any kind of collective action (TEWARI 1998). Social capital categories There are different categories of social capital. For example, social capital can be grouped into two distinctive but interrelated categories: structural social capital and cognitive social capital. The structural dimension becomes manifest in formal and informal organisations and networks (the most visible aspects for example are the existence in Costa Rica of regional and local organisations, while the cognitive dimension consists of values, attitudes and beliefs which guide social conduct (the least visible dimension, CARROLL 2001). Another useful distinction is made between social relationships that take place between communities, based on similar history, interest and backgrounds and relationships between extremely dissimilar groups. The nexus within the group (intra) can be classified as being of a linking type, is generally deep and strong and makes collective action possible and functional, while the nexus outside the group (extra), which can be classified as being of a bridging type, may be weaker and more diverse. The relationships of the linking type have more to do with daily relationships within the community while those of the bridging type have more to do with the authorities or with markets (CARROLL 2001). Also, the concept of social capital can be disaggregated into different types of capital, such as (CARROLL 2001): 1. 2. 3. 4. Family and kinship relationships. Community networks or formal and informal institutions with social cohesion and a capacity for action, local knowledge, people’s mutual interdependence (TEWARI 1998). Trans-sectorial links. Frames of reference for political institutions, such as admission of the communities and actors into politics, access to forest resources (SAUNDERS et al. 2002).

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5.

Socio-political relationships (State-civil society). For example the poor and indigenous communities are included in marketing and ownership systems which can be audited, are transparent and participatory. Decentralisation confers value on local institutions (SAUNDERS et al. 2002, BONNAL 1998). Social norms and values, such as a culture of dialogue, visible and invisible, formal and informal networks (TEWARI 1998).

6.

Pre-requisites for the existence of social capital All these types of social capital are crucial in any collective action, including in the field of action of forest management. Social capital requires an institutional and socio-economic climate which includes symmetrical social relationships (especially of power) and an inclusive approach to citizenship. This entails (SANREM 2003, JAIN / JAIN 2002): The opportunity of obtaining an income to cover the needs of the family; Payment of taxes: contribution to local power structures; A real opportunity to participate in community management; Company and citizen literacy with education as a fundamental element; A process of institutional transformation based on grassroots organisations and a reform from the top; Transformation of the paradigms of subsistence and artisanal societies; Development agents need to focus their interventions on the development of synergies between the public and private sectors and strengthen networks of local associations, nurturing the horizontal nexus between communities and providing in this way the mobilisation of viable, locally-defined initiatives. Indicators of social capital formation There is a wide range of indicators for the formation of social capital which can help in this analysis, such as for example: Participation of community members, Participation of women, Protection against illegal uses of forests (in El Petén, concessionaries protect forests against fires, illegal logging and export of timber into Mexico and Belize), Establishing rules for the extraction of resources, Regulating income distribution, Participation in the planning processes, Existence of priorities for investment which favour the creation of human and social capital in the initial stages of management,

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Mechanisms for conflict solving, Community self-reliance, Formation of strategic alliances with NGOs and private companies appropriately monitored, Compromises with other aspects of community development. However, social capital, just as human and natural capital, can depreciate with time and requires constant renewal To this end, it is therefore important to monitor social capital using the kind of indicators mentioned above (MAGNO 1998). Among the factors which erode social capital are market forces, migration and national policies which in many cases destroy community institutions in order to manage communal resources. In addition, modern institutions have encountered difficulties in building up social capital at a sufficiently rapid rate (KAIMOWITZ 2004).

Forest management and Corporate Social Responsibility
Corporate Social Responsibility (CSR) is the commitment that companies make to the economic, social and environmental development in which they find themselves immersed: multifunctional companies with an ethical underpinning which permeates their internal culture workers (men and women), employees (men and women), shareholders, through their strategic plans, in terms of the necessities which emanate from their external and internal policies - public policies, environment, governance, beyond the short-term gain and generation of wealth (CERESO 2004). The World Business Council for Sustainable Development (WBCSD) defines CSR as „businesses’ commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life“. The global business organisation Business for Social Responsibility (BSR) establishes that CSR is about managing companies in such a way as to fulfil or exceed the expectations that society has of them, including ethical, legal, commercial and public elements. CSR is seen by leading companies as more than a mere set of discretionary or occasional gestures or indications motivated by the market, public relations or other business benefits. It is perceived as being a comprehensive set of policies, practices and programmes which are integrated into business practices and decision-making, and which are supported and rewarded by senior management (WBCSD 2004). Companies should go beyond the central objective of maximising their profits and enter into permanent compromises with their workers and their families, with the surrounding communities, with the micro regional and national community and with civil society in general This responsibility is not charity and becomes transformed into a moral obligation. Individual companies, international and national organisations voluntarily adopt a code of conduct with the actors concerned. It is increasingly a matter for debate whether the adoption of CSR should be voluntary or compulsory and legally binding. There are even the beginnings of a debate as to whether one should think in terms of a convention on CSR comparable to the

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Framework Conventions on Climate Change, and on Biodiversity or the Core Conventions of the International Labour Organisation (ILO). Taking the initial definition as a starting point, corporate social responsibility by whoever happens to manage the forest, should take on board that the amount of resources harvested must be in line with the limits of ecosystems, that operations should be profitable (not only in terms of prices, but also in terms of costs and general rationality), that the approach should be inclusive by integrating all actors involved with their various rights and obligations and that, in addition, it should be part of a sustainable development. Forest management has a rural orientation and is furthermore directly linked with pockets of poverty in rural and indigenous communities. The key actors, who exert pressure on forestry operators and who should be taken into account in the definition of a CSR commitment (STORA ENSO 2004, WBCSD 2004), are Consumers, Employees, The communities, Other citizens, nearby and distant, Investors and shareholders, Purchasers and suppliers, The law and those responsible for its implementation, National and local government. Having identified the actors, a company or institution which is going to work in line with CSR has to define a standard which could include: Principles: a brief declaration of values, Practices: examples of the means used by the organisation to improve its performance in respect of standards, Measures: tangible compliance indicators which can be observed and measured in qualitative and quantitative terms, Resources: potential sources of additional information, tools and technologies which a company may need to implement a routine procedure. The principles that are usually contained in a CSR standard can include inter alia: ethics, accountability, corporate governance, human rights, financial return, employment practices, business relationships, products and services, work with the communities, environmental protection, markets and consumers (GOODELL 1999, ISO 2002). A company or forestry operator that subscribes to CSR distinguishes itself by (STORA ENSO 2004):

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Good business practices: exclusion of bribery, fair competition practices including the exclusive use of legal timber in their operations, support to local initiatives without seeking to destroy them through competition. Communication: regular information to and consultations with the public about the company’s general and local plans, for example over wood transportation through the communities, logging close to the villages or hamlets that can be affected by the noise from operations, etc. Commitment to the community: transparent relationships with the surrounding communities and cooperation with them in emergencies, but also in the creation of human and social capital. Any capital that may be formed should not be invested simply as a way of improving the return on business, but also to improve the conditions of the community and its inhabitants. For example, by giving access for the communities to products which are not part of the main business (woodfuel, possibility of using off-cuts from the wood for handicrafts, etc.), by promoting the capacity building of local leaders and good students, etc. Labour force: often, when there is a shift of technology, companies increase their production and reduce their labour force through massive lay-offs. This type of action should be avoided or postponed until the human resource that is being displaced is trained in another area or has been supported by creating alternative businesses connected with his/her previous experience. Working conditions: these need to be guaranteed, attractive, fair and humane. This implies, for example, adequate food, training for carrying out given tasks, quality of work-camps, first aid, health, safety equipment, and all critical aspects relating to carrying out forestry tasks. Diversity: implies respect for ethnic, cultural, religious, gender and social differences. By taking diversity into account, it is possible to create acceptable conditions for women, the handicapped, older adults. Freedom of association: complying with legal norms and even motivating workers’ organisations and sharing channels of communications in addition to giving clear and fast responses. Free choice of work: promoting workers’ capacity building and training so that they can aspire to occupy other jobs within the company. Child labour: strictly complying with the provisions on child labour, cooperating with the authorities to restrict this criminal practice. Remuneration: since the idea is to try to comply with and even exceed the legal requirements, this could imply wages which are above average, which are fair and which not only allow subsistence but also the development of workers. Working hours: in conformance with labour legislation, taking the hours needed for transportation into account (to carry out forest tasks in places which sometimes need several hours to reach, adding up in some cases to more than 12 hours per day if the 8 hour ‘working day’ is applied).

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We could develop a similar list in terms of company attitude with regard to each of the actors involved, that is to say, clients, authorities, shareholders, etc. CSR can also be defined with respect to forest management for multilateral and bilateral agencies, central governments, municipalities and NGOs. It is basically about the promotion of integral human development of the actors involved, human capital and social capital development, as well as fair treatment within the framework of a decent society (MARGALIT, 1998)5. Currently, there is much debate around CSR in the companies. Some employers even go so far as to ask whether a company needs to have ethics when the main objective is to make profit for the owners or shareholders. Within the forest sector the debate around CSR is similar to the one over good forest management certification, as issued by the various schemes. Studies on the extent of compliance by companies with CSR about to be issued a certification by the FSC, for example, are already underway. ASTORGA / REBOLLEDO (2004) consider that forest certification is an illustration of CSR: health, security and well-being of the men and women that work in companies; mitigation or complete elimination of the negative social impacts that forestry activities generate in the communities, respect for indigenous peoples’ rights and the possibility of bringing together and certifying in a joint manner forests and forest plantations of small and medium-size forest owners. It is worth highlighting the need that exists for every institution involved with forest management at any level to publish their level of compliance with CSR. This would allow a completely different level of quality in terms of forest management development. There are already important qualitative differences between certified and non-certified forest management.

Forest management as an engine for economic development
We are now faced with the hypothesis that forest management can transform itself into a pillar of economic development. For the time being, we will not distinguish whether this development takes place in human, integral or sustainable terms, but simply whether it produces economic growth in terms of production. We will also give a microeconomic emphasis to this analysis, that is to say we will focus on the contribution that forest management units make to this growth, since, in strict terms, forest management is the planning and execution carried out by a specified management unit. A well-managed forestry unit has a strong impact on local sustainable development at the same time that it supports sustainable regional and general development. Horizontal and vertical integration in forest management allows a higher impact on development to take place. Some of these effects are (WESTOBY 1962, DE CAMINO 1972, POOL et al. 2002): 1. - Forest management allows the use of very different technologies and of a highly flexible approach to production as regards the relationship between intensity of work and intensity of capital. It is possible to organise forest production involving small or large forest owners provided that a horizontal integration of small forest owners, based on organisational technologies, is achieved at adequate scales. At one end, there are large companies with huge areas of land, which include forest plantations or natural forests, and at the other smallholders who act individually and are organised in cooperatives or associations to improve their efficiency and 51

Forest management as an engine for economic development

power of negotiation. Also, forest management is very flexible in terms of use of technologies and labour force, allowing operation in different conditions of scarcity of capital and relative abundance of labour. 2. - Production of multiple species for forestry use and other uses, in addition to multiple services with local, regional, national and global clients. There is a trend towards a division of production, in which communities are responsible for producing non-wood products and companies for wood production. However, an integrated forest management, orientated to various products and with different levels of integration at the same time, would allow a stable and less risky production. Even in the controversial extractive reserves in Brazil, the need to make use not only of rubber and chestnuts but also of timber is being re-examined as a way of consolidating communities in economic terms. 3. - Complementarity in time and space of forestry activity with other activities in rural areas, especially with agriculture. This concept offers large flexibility for an integrated management of soil resources, combining agricultural and forestry activities, for example. 4. - Orientation in the rural space, therefore presenting a valid alternative for economic development in the rural areas. It is not only about development of forests, but also about the possibility of supplying industries in rural areas. Forest management can be a substantial contributor to the development of infrastructure and to its maintenance. This presents both an advantage and disadvantage in the sense that it opens territories previously closed to other activities and can therefore represent a change of land use. However, in order for rural development to take place, there has to be a commitment from central government in terms of providing rural zones with a road, education, health and leisure infrastructure (similar to that of medium or larger urban centres) that will appeal to the rural population inducing them to stay, and changing positively the image of the rural areas. 5. - During the seventies, there was a huge pressure for import substitution mainly driven by the contemporary dominant model of development. Currently under the influence of the process of globalisation, there is a strong pressure to expand exports, and the forest sector in the tropics allows for a clear orientation towards exports, an activity which thus far has not been fully made use of. It is estimated in addition that the future demand for wood and forest products in developing countries will be very high, and thus production could again target domestic consumption. Some countries like Chile orientate their forest development and production towards the export market. In others, like Costa Rica, tourism based on its forests represents the most important source of revenue. As in the case of these two examples, there is a multitude of options that would allow regular production to be orientated towards export markets. 6. - Forest management has strong links with other sectors of the economy, but it essentially provides the ecological basis for agricultural production, energy production, irrigation and water production, the stability of the ecosystems through biodiversity and, consequently, for the production of forest industries. With so many links to the local, regional, national and international economies, the multiplier effect of forest management in particular and of the forest sector in general is very high.

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7. - Forest management, especially in plantations can be very attractive economically as an alternative to investment. Countries like Costa Rica and Panama have attracted considerable investments with growing prospects in the development of forests with valuable species, such as teak, for example. In this way, land that often was too degraded for agriculture and cattle use, has increased its potential for forestry, industrial production and export. 8. - Forest management is directly linked with other activities, like the management of water basins, with the forest as the basis for seasonal production and distribution of water. This form of production has been slow to be reflected in the markets, but it is beginning to generate payment for environmental services contributing towards the protection of water catchments. Forest management constitutes an example to be followed by other sectors and other types of production because of its ecological benefits and display of responsibility, especially in relation to certified forests. 9. - The trend towards developing social forestry has somewhat tarnished forestry development in private forests. However, forest management allows a very wide range of solutions for all actors involved. Forest management can be carried out by the State on its national forests, by companies with concessions in natural forests and on plantations by individual owners - small or large - and by rural and indigenous communities. Depending on the resource, actor and regional and national circumstances, forest management by any of the players is a valid option. There can also be a combination of actors through different types of alliances. 10. - The advance of forestry science now allows forest management of natural forests and plantations to be carried out with low environmental impacts (lower than with alternative land uses, cattle, agriculture and urban use) and it is even positive in terms of generating water, biodiversity, locking up carbon, and enhancing landscapes.

Conclusions
We have reviewed in this chapter various elements which establish a link between forest management and development. Going by the definition of forest management as part of sustainable development in a region or a country, we have seen its relationship with: Sustaining livelihoods in rural areas The fight against poverty Peace and security Deepening democracy The formation of social capital Corporate Social Responsibility We went on to examine the relationship between forest management and economic development with an enumeration of the favourable characteristics it offers. This, alongside the relationships already mentioned, strengthens the view that forest management, on different scales

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according to circumstances, can become a real pillar of sustainable human development in its economic, ecological and social dimensions. If we are to go by MAX-NEEF’s (1993) definition of human development, it becomes evident that: Development on a human scale concentrates on and sustains itself from the satisfaction of basic human needs (sustenance, poverty alleviation), from the generation of growing levels of self-reliance (social capital, deepening democratisation), and from the organic articulation of human beings with nature and technology (peace and security), of global processes with local behaviour (CSR), of the personal with the social (social capital), of planning with autonomy and of civil society with the State (deepening of democracy).

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Notes
1

An interesting example is given by PORTICO in Costa Rica, a company that manufactures quality doors and which instead of using solid mahogany wood (Carapa guianensis) uses heartwood from certified Gmelina wood, covered by a layer of plywood from mahogany, thus providing an increase of production using the same amount of native timber. Ejido is the collective access to land by organised peasant farmers. Ejido has its origin in the Mexican revolution. L. Espinoza, personal information, 2004 L. Espinoza, personal information, 2004 MARGALIT defines a decent society as one in which institutions do not humiliate people. This implies that companies will not fence in indigenous communities with plantations, wiping them off the map or denying them access to the landscape with which they culturally interact, nor will they pollute the rivers or fill village streets with dust. Companies will respect trade unions and the municipalities will process promptly formalities relating to the communities. Central governments are decentralised so as to efficiently take care of matters and sanction corrupt officers; NGOs will not impose solutions, but help communities in conformity with their own solutions, etc.

2

3 4 5

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References

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GTZ / AFOCO (2002): Consideraciones sobre la forestería comunitaria en Hoduras y estrategia para su masificación. GTZ/AFE-COHDEFOR, Honduras. HEINRICH, R. (1998): Aprovechamiento ambientalmente apropiado para mantener los bosques tropicales. In: BOLFOR-CIFOR-IUFRO. Memoria simposio internacional Posibilidades de manejo Forestal Sostenible en América Tropical Santa Cruz de la Sierra, Bolivia. HOUSE, P. / LAGOS, S. / OCHOA, L. / TORRES, C. / MEJÍA, T. / RIVAS, M. (1995): Plantas medicinales comunes de Honduras. UNAH, CIMN-H, CID/CIIR, GTZ, Tegucigalpa. INAB (1999): Manual Técnico Forestal Instituto Nacional Forestal, Guatemala. ISO (2002): The Desirability and Feasibility of ISO Corporate Social Responsibility Standards. Prepared by the „Consumer Protection in the Global Market” Working Group of the ISO Consumer Policy Committee (COPOLCO). JAIN, N. / JAIN, K. (2002): Social Capital in Community-based Institutions: Trends and Emerging Lessons from Western India. Paper presented at the Fifth International Conference of the International Society for Third-sector Research, South Africa. JONAS, H. (2000): The imperative of responsibility: in search of an ethics for the technological age. The University of Chicago Press. IUCN (2004): Poverty and conservation. www.iucn.org KAIMOWITZ, D. (2002): Pobreza y bosques en América Latina. Una agenda de acción. En Memoria, II Congreso Forestal Latinoamericano, Guatemala. KAIMOWITZ, D. (2003): Not by bread alone.... Forests and rural livelihoods in Subsaharan Africa. In: Oksanen et al. (Ed.) (2003): Fores in poverty reduction strategies: capturing the ts potential EFI Proceedings no. 47. KAIMOWITZ, D. (2004): Keynote address. Tenth biennial conference of the International Association for the Study of Common property (IASCP). Oaxaca, Mexico, CIFOR. MAGGINIS, S. / MÉNDEZ, J. / DAVIES, J. (1998): Manual para el Manejo de Bloques Pequeños de Bosque Húmedo tropical Con especial referencia a la Zona Norte. Costa Rica. DFID/CODEFORSA. Ciudad Quesada, Costa Rica. MAGNO, F. (1998): Forest Devolution and Social Capital. State-Civil Society Relations in the Philippines. Environmental History, Philippines. MARGALIT, A. (1998): The Decent Society. Harvard University Press. MAYERS, J. / VERMEULEN, S. (2003): Company- community forestry partnerships: from raw deals to mutual gains? In: CIFOR-FAO (2003).

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MAX- NEEF, M. (1993): Desarrollo a escala humana. Conceptos, aplicaciones y algunas reflexiones. Nordan Comunidad. Redes Amigos de la Tierra. MAXWELL, S. (1999): The meaning and measurement of poverty. ODI Poverty briefing 3. PENA, A. (2000): Tipología de productores y sistemas de producción: elementos para una estrategia de desarrollo forestal de pequeños y medianos productores. Manuscrito. CONAF, Chile. PERSSON, R. (2003): Assistance to Forestry: Experiences and Potential for Improvement. CIFOR, Bogor. POOL, D. / CATTERSON, T. / MOLINOIS / V. RANDALL, A. (2002): Review of USAID’s Natural Forest Management Programs in Latin America and the Caribbean. USAID/LAC/RSD/E. PRETTY, J. / SMITH, D. (2004): Social Capital in Biodiversity Conservation and Management. Conservation Biology, Volume 18, Issue 3. PRETZSCH, J. (2003): Forest related rural livelihood strategies in national and global development. The international conference Rural Livelihoods, Forests and Biodiversity, Bonn, Germany. QUIROS, D. (2002): Implementación de un modelo de manejo forestal sostenible de los bosques húmedos latifoliados de Centroamérica. En: SABOGAL / SILVA (Eds.) (2002). SABOGAL, C. / SILVA, N. (Eds.) (2002): Aplicando resultados de pesquisas, envolvendo atores e definindo políticas públicas. Simposio internacional IUFRO. Manejo integrado de florestas úmidas neotropicais por industrias e comunidades. Belém, PA. SANREM (2003): Lessons Learned From Conflict, Social Capital and Managing Natural Resources, Mali. SAUNDERS, L. / HANBURY- TENISON, R. / SWINGLAND, I. (2002): Social capital from carbon property: creating equity for indigenous people. Math Phys Eng Sci. 2002. SOBRADO, M. (2004): El capital social y la teoría del desarrollo. Charla dictada en la Universidad para la Paz. Maestria en Desarrollo Rural Universidad Nacional STORA ENSO (2004): Definition of corporate social responsibility principles. www.storaenso.com SUNDERLIN, W. / ANGELSEN, A. / WUNDER, S. (2004): Forests and poverty alleviation. CIFOR, Bogor, Indonesia. TEWARI, D. (1998): Rejuvenating the Community Forestry in Soliya Village, Gujarat, India. The World Bank / WBI’s CBNRM Initiative. UPRETI, B. (2001): Conflict and Peace in Mountain Societies. Case Study: Conflict Management in Natural Resources, Nepal Adroit Publishers, New Delhi.

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UNIVERSITY FOR PEACE (2002): ECO´92: Different visions. University for Peace, Earth Council, IICA, GTZ, OmCED, 2.ed. San José, C.R. WARNER, M. (2000): Conflict management in community based natural resource projects: experiences from Fiji and Papua New Guinea. ODI, Working paper 135, London. WARNER, F. (2000): Forestry and sustainable livelihoods. Unasylva Vol 51, 202, FAO, Rome. WBCSD (2004): www.wbcsd.org/projects/pr_csr.htm WESTOBY, J. (1962): Forest industries in the attack on economic underdevelopment. Unasylva no. 67. FAO, Rome. WOMENS HISTORY (2004): http://womenshistory.about.com/library/bio/blbio_wangari_maathai.htm WORLD BANK (2002): Forest Policy Paper, Washington D.C.

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Requirements for sustainable forest management following the paradigm of sustainable development
Dietrich Burger

Concepts of sustainability
Traditional concepts of sustainable resource utilisation All sustainability concepts are based on striving to utilise resources without using them up. Humans have been aware of the life-threatening risk involved in over-utilisation of natural resources since time immemorial The Gilgamesh epic described 4,000 years ago how overutilisation of forests led to the destruction of arable land, roads, irrigation and shipping routes, and finally to the downfall of the Sumerian kingdom (GARDNER-OUTLAW / ENGELMAN 1999: 9). In many cultures there are customs and rules, and possibly even taboos and religious laws, aimed at preventing overuse of natural resources. Their purpose may be to conserve the stock or functions or renewability of natural resources. Such rules can take many forms, for example hunting seasons, fishery rules, or fallow prescriptions. Forest sustainability Hans Carl von Carlowitz, son of a Saxonian chief forester, chief mining warden to the Elector of Saxony and King of Poland, August the Strong, was the first to use the term „sustainability” in his book „Sylvicultura oeconomica, Anweisung zur Wilden Baum-Zucht” („Manual of wild forest cultivation”), published in 1713 (CARLOWITZ 1713). As a young man travelling through Europe between 1665-1670, he was interested in how the various countries dealt with the shortage of wood, one of the main problems for industry at the time. He was particularly impressed by the „grande réformation des forêts” instituted by Colbert, minister of finance to the French King Louis XIV. As Carlowitz wrote, the decrees of Louis XIV contained everything for his own project. Following the Mercantilist school of the day, economic policy was aimed at meeting the vast financial needs of an absolute monarchy. Silver mining was particularly important for this in Saxony. However, this was threatened by a shortage of wood. As a result, skill, science and zeal were needed to „organise conservation and cultivation of wood to permit continuous and sustainable use“ (CARLOWITZ 1713: 105). Only as much wood should be used as was regenerated. In his book, Carlowitz also dealt with the question of reducing demand for wood in households, construction, brewing, mining and the extractive industries through greater efficiency, and using alternative fuels such as peat. According to Carlowitz, the „poor subjects” had a right to „adequate nourishment and comfort”, but the same rights applied to „their beloved posterity” (GROBER 1999). Intergenerational equity was accordingly already part of sustainability for Carlowitz.

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Carlowitz’s work attracted much attention in Germany. The notion of sustainability in forest utilisation became the basis for the science of forestry which developed in the 19th century. Graduates of German forestry academies worked in Russia, Scandinavia, France, India and the USA, and made „sustained yield forestry” a key term worldwide. Later, the idea of sustainability of wood use was extended to all aspects of forestry (cf. SPEIDEL 1967: 169). „Sustainability” describes „the ability of forestry to utilise wood continuously and optimally and provide infrastructural services and other goods for the benefit of present and future generations” (SPEIDEL 1972: 54). Sustainable forest management as a contribution to sustainable development Consciously using forest management for the purposes of sustainable development poses a much greater and more comprehensive challenge than the aim of sustainability in forestry to limit wood use in its many functions to the regenerative capability (BURGER 1999: 25). The present paper is based on the publication of the GTZ Programme Office for Social and Ecological Standards „Making Sustainable Development a Reality: the Role of Social and Ecological Standards” (BURGER / MAYER 2003). The paradigm of sustainable development is accordingly only presented briefly here. The following sections will consider the principles of sustainable development in terms of their specific application to forest management. The paradigm of sustainable development adopted at the UN Conference on the Environment and Development (UNCED) in 1992 in Rio de Janeiro by 178 governments of countries with every kind of location, history and culture is often criticised as too vague and imprecise. KREIBICH (1996) describes it as „empty words designed to produce a consensus”. It would, however, be wrong to expect the paradigm to deliver precise specifications for development goals and approaches for every single country. The paradigm does not provide a development path as such, but rather helps in the search for development approaches, which may be very different depending on the ecological, historical and cultural environment. The paradigm provides a direction for development approaches by emphasising that resources: should be used in a way which does not limit the opportunities of future generations, should be used efficiently, should be used in such a way that revenues and costs or opportunities and risks are equitably divided between social groups. Two further principles provide a guide in structuring the search for development approaches: as many as possible of those affected should be able to participate in the search by contributing their points of view, experience and abilities and stating their interests, and the goals selected should be fairly negotiated, and programmes formulated for a given level, e.g. national, should not conflict with programmes for higher (e.g. global) or lower (e.g. local) levels, following the maxim „Think globally, act locally”.

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The search for development approaches should consider all resources and their impacts in a holistic manner, in other words all material and immaterial resources needed for human life, i.e.: natural resources or environmental resources, such as the biosphere, landscapes and biotopes with the elements air, water, soil, minerals, vegetation, fauna; economic resources, i.e. tangible assets produced by humans such as machinery, roads, buildings, and financial capital such as money, shares, payment obligations; social resources, i.e.
• •

human capital (people with their training and health) and social capital, the stock of rules, institutions and collective knowledge that determines „how individuals and societies interact, organise, and share responsibility and rewards” (WORLD BANK 1997).

Box 1: The paradigm of sustainable development

does not describe a state
or a goal or the road to sustainable development;

it provides orientation for the search for development approaches
through • principles providing orientation: prudence in dealing with resources efficiency social equity principles guiding action: partnership coherence integration of natural, economic, social resources and impacts

Sustainable forest management, understood as forest management in the service of sustainable development, must take into account all the resources used and consider the cited principles of sustainable development in dealing with them. As these principles can never be implemented simultaneously and fully, sustainable forest management can only be an ongoing process of search and improvement.

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Concepts of sustainability

Just like sustainable development, sustainable forest management is an extremely complex process. As people have difficulty in coping with complexity, the strategy usually adopted is to reduce complexity by considering only simplified aspects of reality, for instance specific resources and the impacts of using them (e.g. economic), and ignoring other resources and impacts. This approach runs into difficulties if people forget that only one aspect of reality has been considered and apply the results of the analysis or decision making process uncritically to reality in all its complexity. The paradigm of sustainable development involves a completely different strategy for coping with complexity, refusing to omit any significant aspect of reality and involving as many interested parties as possible in the search for development approaches, so that they can contribute their different perceptions, experience and interests to the search process. This strategy of dealing with complexity involves negotiation instead of filtering. Participation in the search process by diverse interest groups necessarily involves conflict. If sustainable forest management follows the paradigm of sustainable development, this means cooperative conflict resolution instead of confrontation. Sustainable forest management in this comprehensive sense follows the Rio paradigm, and requires not only ecological, technical and economic competence, but also a large measure of social competence.

Principles and rules of sustainable forest management
The principles of sustainable development apply to all areas of human life and all sectors of the economy, including forest management. They are general guidelines, which can be turned into precise rules. The principles and rules in fig. 1 for sustainable forest management were formulated by analogy with the general principles and rules of sustainable development. The principle of prudent use of resources The principle of conserving resources rather than consuming them, i.e. dealing with resources so that future generations have at least the same opportunities for shaping their life as the present generation, sounds very straightforward, but requires some explanation: When handing down resources, it is not just a question of their quantity but also their quality, and specifically their functionality. For example, when replacing natural forest with plantations, great care must be taken to consider whether the increase in wood production represents a gain or loss for future generations in view of the loss of biodiversity, and possibly also water storage and other functions (cf. COSSALTER / PYE-SMITH 2003). The principle applies not only to natural resources, but also to all other types of resource used by forest management. For example, when introducing new forms of forest utilisation, care must be taken to check whether this involves a loss of traditional arrangements, such as communal risk management or other social capital.

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Equity towards future generations involves not only the descendants of the forest owners, but also the descendants of all those using the forest. With an eye to the global functions of forests, it is necessary to check whether it can be assumed that these vital functions are being preserved for future generations as well. Intergenerational equity does not mean demanding that all resources are handed down in a completely untouched state. The principle is not a ban on development. If the current generation were not allowed to use resources and develop, this would also reduce the opportunities available to future generations. The quality and composition of resources are accordingly altered, but this should be done with an eye to the development opportunities of future generations. Figure 1: Principles and rules of sustainable forest management following the paradigm of sustainable development

prudent use of resources

regeneration rule substitution rule intensity of stress rule precautionary rule integrated resource accounting technical rationalisation ecological efficiency market efficiency consideration of objects, groups, legitimation of claims

efficiency

sustainable forest management following the paradigm of sustainable development

social equity

partnership

partnerships in the added value chain and in governance networks considered as assets; success dependent on distribution of roles and partnership capability of members thinking beyond partial systems; noting lack of coherence with neighbouring systems; assessing risk to sustainability; correcting lack of coherence; minimising frictions and hence economising energy; increasing changes of alliances and support from outside.

coherence

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Regeneration rule: Use of renewable resources should not exceed their regeneration capability. This means first of all that harvests must be smaller in quantity than growth before the next harvest. A purely quantitative comparison of harvest and new growth, however, is not enough to ensure the conservation of the value and regeneration capability of natural capital. This is very clear if we take tropical forests as an example: the removal of relatively small quantities of high quality wood may be less in quantity than the wood which re-grows before the next round of logging, but because the trees felled are often replaced in natural succession by fast-growing but lower grade pioneer species, normal selective use of the best trees - even in small quantities - generally means downgrading the stock of wood. The quality of harvest and new growth must also be compared. To preserve the full functionality of the forest for the environment (e.g. protection against erosion), economy (e.g. wood suppliers) and society (e.g. cultural value) and its regenerative capability, use and regenerative capability must match in quantitative and qualitative terms and also in pace. To ensure this, forest management should seek to maintain a balance as close as possible to nature in terms of diversity, distribution, age profile, and pace of growth and rejuvenation. Sustainable forest management must allow regeneration not only of trees, but also of other plants and fauna. In terms of economic goods, the regeneration rule is reflected e.g. in regulations on depreciation and provisions. It should also be taken into account with social resources. Regeneration of employee health and knowledge has found its way into the subject of sustainable forest management, with trade unions playing a significant role. By contrast, social capital and its regeneration have had virtually no impact as yet in the context of sustainable forest management. Traditional rules often incorporate knowledge stored over generations. If such traditions are abandoned and not replaced by new learning, there is a loss of social capital. The knowledge of a society must be regenerated by lifelong learning by its members. Social security systems, forms of conflict resolution and other social codes also need to be reproduced at least to the extent that changing conditions make them obsolete, otherwise assets are lost. Substitution rule: The German Bundestag commission of enquiry on „Protecting humans and the environment” issued the following call: „Nonrenewable resources should only be used to the extent that a physically and functionally equivalent replacement in the form of renewable resources or higher productivity of renewable and nonrenewable resources is achieved” (DEUTSCHER BUNDESTAG 1998: 46). The composition of the resources used by forest management inevitably changes over time. Besides the substitution rule, however, replacement of resources in one category by those in another category is only permissible if the resources are equivalent. However, this equivalence can only be evaluated with the participation of those affected. The commission of enquiry emphasised the need to compensate for loss of nonrenewable resources through increased social capital „The society of the 21st century will depend more than ever on developing social, intellectual, creative and cooperative skills and abilities. Material resources must be replaced by an increase in the stock of knowledge.” (DEUTSCHER BUNDESTAG 1998: 42). This necessity will also extend to forest management, particularly in countries where natural forests are being depleted like nonrenewable resources and transformed into agricultural areas, wood plantations, or secondary forests. If this process cannot be delayed, the loss of natural capital should at least be cushioned by an increase in

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social capital. For example, an effort could be made to compensate for the loss of natural resources (if this is inevitable) through investment in training for the population. Intensity of stress rule: „It is not scarcity of resources that threatens to set limits for the economies, but the limited ability of ecological systems to accept stress from pollutants and waste of all kinds“ (BUND / MISEREOR 1996: 23). The intensity of stress is given by the level of stress and the speed of recovery. This has to correspond to the response capability of the resource. Just as natural resources can only be stressed to certain limits by substances injected into the environment without losing their ability to function, social resources are also limited in the stress they can handle. For example, social cohesion, which forms part of social capital, cannot be subjected to an unlimited extent to unequal distribution of opportunity without damage, i.e. without reducing social capital. Precautionary rule: Principle 15 of the Rio Declaration says: „Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation” (UNIVERSITY FOR PEACE 2002: 55). If e.g. there are indications that certain forest management processes are endangering the forest population of rare species, tackling this danger may not be left until extinction has become a certainty. At this point, countermeasures generally have no prospects of success. Economic and social resources should be treated with similar awareness of risks. Integrated resource accounting rule: The above rules are necessary but certainly not sufficient conditions for ensuring the availability of resources for future generations. To prevent consumption of wealth, regular accounting is essential However, this must account for all kinds of assets. Although this sounds a trivial requirement, the current system of national accounts does not satisfy it, as it does not take into account changes in environmental assets, human resources and social capital. Destructive forest exploitation increases the domestic product calculated in this way, but the resulting damage to the economy is ignored. This distorted view bears much of the responsibility for the generally minimal interest in sustainable forest management on the part of macroeconomic planners. However, forest planning is also far removed from holistic accounting of assets. While much progress has been made in the inventory and accounting of stocks of wood, little attention has been paid to the development of other forest resources; procedures for accounting for economic goods (particularly finance and tangible assets) are extensively used, but changes in human resources are rarely and only incompletely considered; changes in social capital are not even documented. As a result, even if the stock of wood is prudently utilised, forest management can lead to a loss of assets without this being noticed in time. The efficiency principle Efficiency is the use of resources where the relationship between resources used and resulting impact is as favourable as possible. This can be because a specific impact is achieved with the smallest possible resources, or because the largest possible impact is achieved with a given quantity of resources. The efficiency principle can be interpreted technically or economically. A specific version of the efficiency principle is the principle of ecological efficiency, which deals

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specifically with the use of environmental resources, particularly water, energy, and natural primary commodities. If the relationship between the resources used and impact is calculated at market costs and prices, the result expresses the economic efficiency. In this form, the efficiency principle is increasingly dominating not only the private sector, but also politics. Economic efficiency can have a very important control function for sustainable development if competition results in the provision of products and services at lower cost and stimulation of innovation. However, markets can only perform this positive control function if prices and competition are not distorted, e.g. by subsidies or incomplete information, and if products and services can be offered in markets, which is often not the case for ecological and social functions. Something else to bear in mind is that the market is generally blind to ecological and social goals, unless potential buyers demand and reward ecological and social aspects. Economic efficiency also has an important control function in forest management. Conversely, in addition to the commercial production of goods and services, forest management also has ecological and social impacts on the lives of many people. This is why it is particularly important for sustainable forest management that the legal and political environment and free market measures should ensure that social and ecological considerations are taken into account appropriately in decisions on forest management. Forest management need not always primarily serve the goal of wood production. The water supply and preservation of biodiversity are also possible goals of forest management, and many other such objectives could be listed. However, the efficiency principle must always be considered, as there is always a scarcity of the resources being used, so that the aim must be to achieve the greatest possible impact. Not least, the efficiency principle must also be followed when utilising human resources and social capital, e.g. by employing people in accordance with their qualifications, or striving to use forms of conflict resolution as effectively as possible. The social equity principle The changes caused by forest utilisation can have very different impacts on different social groups, with some gaining and others losing. It is accordingly not enough to consider the impacts at a global level: instead, it is necessary to break them down by social groups and consider which groups have which legitimate claims, and how far these are met. Equitable distribution of the benefits and disadvantages of resource utilisation between social groups neither follows necessarily in the wake of a free market economy, as assumed in the „trickle-down-theory” or „horse-and-sparrow theory” („if you feed a horse enough oats, some will pass through to the road to feed the sparrow“), nor is social equity a purely humanitarian concern to help the weak;

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instead, social equity is a prerequisite of economic capability: „Establishing equity or equality of opportunity for primarily social policy purposes is not just a social goal - it is also a prerequisite for long-term economic capability, and accordingly an economic goal as well.” (DEUTSCHER BUNDESTAG 1998: 33). There are two reasons for this:
• •

disadvantaging individual groups can prevent the development of potential; discrimination can cause discontent, which impacts the will to work and leads to disturbances and conflicts.

In examining social equity, i.e. the claims of different groups, three questions have to be resolved: What is the object of the claims?
• • • •

rights of access to resources, chances and risks, revenue and costs, participation in decisions and power. owners, employees, neighbours, customers, consumers, suppliers, service providers, investors, officials, training institutes, public, media, political parties, associations, advocacy groups, such as environmental NGOs social NGOs trade unions religious groups, churches. statutes and other binding law (legality), international conventions and agreements, and particularly human rights and ILO core labour standards (cf. TOMUSCHAT 2002, REICHERT 2002); traditional rights.

Who are the groups making the claims (stakeholders)?
• • • • • • • • • • •

What is the basis for legitimation of the claims?
• • •

Because forest management has a very wide range of functions and can have a very deep impact on life, a very wide range of claims with different bases must be expected from a variety of groups. Ignoring the types, groups or bases of claims may seem pragmatic at first glance, but

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can prove short-sighted. For example, in many developing countries, traditional communal land rights which national governments reserved for themselves, in some cases many years ago (e.g. forêts classées in West Africa) and had often granted as concessions, are now being reasserted. If each group tries to assert its claims on the basis of different legitimation, this can lead to dangerous conflicts and substantial frictional losses in forest management. Examples are the road blocks stopping wood transport from concessions in Bolivia in 1999, the call by national and international NGOs for a moratorium on logging and certification of concessions in Indonesia at the start of the present millennium, or the destruction of teak plantations in Togo at the start of the 90s. The position of companies and institutions in the forest industry on questions of social equity can substantially affect their ability to act in partnership, their ability to connect in terms of issues and programmes (and hence their political weight), and possibly even their ability to survive. The strategy for sustainable development for the diverse and often conflict-laden claims on forest management is again: negotiation instead of filtering. The most important issue in social equity is combating poverty. This was the central issue of the Rio conference. Agenda 21 starts with an entire chapter devoted to it, as poverty is seen as the main obstacle to sustainable development. In 1996 1.2 billion people - one quarter of the population of the developing countries - had low incomes, i.e. less than USD 1 per capita per day available (BMZ 2000: 207). Poverty is the cause and result of inequitable access to resources, information and decision-making, inequitable distribution of opportunities and risks, revenue and costs, and inequitable forms of exercising power and resolving conflicts. The importance of poverty as the main obstacle to sustainable development was also presented at the Johannesburg conference Rio+10, and the first global goal for the new millennium is to halve the number of those living in poverty by 2015 (UNDP 2003: 1). The forest industry plays a special role in combating poverty (ARNOLD 2002). Two circumstances are particularly responsible for this: Very many poor people live in forest regions. Around one quarter of the poor people in the world depend entirely or partly on forest resources (SCHERR / WHITE / KAIMOWITZ 2002). Every change in forest utilisation has direct impacts on the situation of the poor. While transformation of forest into agricultural or livestock use often results in only a brief upswing in the local economy, followed quickly by a collapse (cf. SCHNEIDER et al. 2000 on this „boom and bust“ phenomenon), forest management can create long term value and reduce poverty. This can be done not only by creating jobs with fair payment, but also by developing potential in addition to wood production (e.g. food or medical products) and forms of use (e.g. tourism), and by taking into account the claims of not only owners and their employees, but also other groups. The partnership principle Partnerships between states, key sectors in society and individuals are called for at many points in the Rio documents, e.g. the Preamble and Principle 27 of the Rio Declaration (UNIVERSITY 70

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FOR PEACE 2002: 58). Under the Rio paradigm, partnerships are a key feature of sustainable development. Without partnership, the changes needed for sustainable development cannot be achieved, and the changes achieved cannot be sustained. WIELAND (1999: 13) notes that the globalised economy „demands the capability for cooperation between organisations in the value chain. Global competitiveness requires global ability to cooperate, and global ability to cooperate requires global competitiveness.” In the globalised economy, production is increasingly a process of division of labour, which is itself increasingly fragmented: raw materials and semi-manufactured goods often come from completely different parts of the world, and production facilities near the consumer often only assemble the individual components and put a logo on the final product. The fragmentation of the production process and the supply of different markets require a complex supply and trade network. Besides productive and distributive functions, the value chain increasingly needs communicative processes, e.g. advertising and consumer education. The globalised economy is accordingly operating increasingly through complex productive, distributive and communicative networks. An individual company cannot handle all the different functions in the value chain competitively, and must act as a partner in the networks. An additional factor is the redistribution of regulatory responsibilities under globalisation. The nation state is increasingly becoming a service state, relinquishing regulatory functions which are increasingly being handled by the private sector and civil society. The actors in sustainable development are themselves participating in establishing the guiding framework, both to protect their interests and to contribute their experience in the interests of appropriate decisions. The individual actors accordingly have to operate not only in value chain networks, but also in governance networks. The goals and contents of partnerships and networks can change over time. Typical phases are: the information phase: partners only exchange information on issues of joint interest or their own experience, the communication phase: partners respond with feedback to the information received, the cooperation phase: the goals and tasks are coordinated between partners on a case by case basis, the alliance phase: coordination of goals and tasks is done through long term and mostly formal agreements. Two features in particular are decisive for the success of partnerships and networks: a clear and binding division of roles and functions between partners, the partnership capability of members. In turn, four factors are decisive for this:
• • •

the partners’ competence for the roles and functions they take on, the efficiency (and specifically the economic efficiency) with which functions are performed; an inefficient partner can be a burden on the entire network, dialogue and communication capability, both within the network and outside, 71

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the ethics of the partners, and specifically their attitude towards the principles of sustainable development and their readiness to implement these. This last factor is becoming increasingly important. One „black sheep” can be a hazard to the reputation of an entire network.

Partnership capability is becoming an important asset, as it is a major factor in determining the future viability of the company. This also applies (and particularly) to companies in the forest industry. They have to be able to act as partners not only to other companies in the value chain, but also to organisations in the governance networks with the ability to influence public opinion, establish credibility and mobilise political support. The coherence principle The sustainable development paradigm provides guidance on how development can be holistically approached. The first three principles provide orientation for content. The focus is on the situations to be considered, showing the direction development should take. However, as human ability to handle holistic perception, evaluation and structuring of complex situations is limited, the paradigm offers two more principles for methodological orientation¸ showing how the holistic demand of sustainable development can be handled despite the limitations. One principle already cited reminds actors that they should not try to establish sustainable development on their own, but should act in partnership. The second methodological principle, that of coherence, is concerned with the limited range of human action. Metaphorically speaking, it is based on the circumstance that thoughts and hands differ in their reach, thus requiring to „act locally, think globally“ - i.e. thinking outside the narrow range of action of the hands. This in turn meets the need to think beyond our own backyard. The segment which we can and wish to shape needs to be seen in the context of reality as a whole. It is important here to consider breaks and incompatibilities on the boundaries of the segment to be shaped - along the backyard fence, as it were. In particular, three types of break need to be watched: Horizontal incoherence with neighbouring systems at the same level, e.g. between agriculture and forestry. The conflicts arising out of such incoherence can possibly be settled or reduced through reference to a shared paradigm at a higher level, e.g. regional development. Vertical incoherence between different levels, e.g. between decentralised units and head office. To avoid decisions at the decentralised level conflicting with those at head office, commitment to the subsidiarity principle can be helpful. This states that the higher level in the hierarchy may only assume tasks which cannot be performed by lower levels. Besides this ban on „recentralisation”, the subsidiarity principle also requires supporting the lower level, ensuring that it has the appropriate environment (and specifically financial and legal security) to develop. Temporal incoherence is contradictions or breaks between past and future development. Changes, and with them certain breaks, are inevitable if there is to be development. To avoid dangerous breaks during the change process, three rules should be followed:

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Requirements for sustainable forest management
Dietrich Burger

Innovations should be based on thorough analysis of past practice. This rule seems trivial, but is often neglected, particularly for innovations in forest use: new processes are often introduced because they seem more efficient in terms of marketable products, without studying and understanding the ecological and social functions of existing forest use, e.g. collecting food or medical products. Innovations should be conceived and communicated as further developments of existing practice, making clear which technical, cultural, organisational or economic elements are being retained and which replaced. Speed of innovation and speed of learning should be matched.

Applying the coherence principle requires three steps: Possible breaks have to be perceived. They must be evaluated to see if they represent a danger to sustainable development, or whether they might cause frictions which release positive development energy (e.g. stimulating rivalries). Breaks may have to be smoothed over or bridged, with two basic possibilities:
• •

the subsystem to be shaped is adapted to the prevailing conditions (e.g. establishments aligned with the legislative framework) or the conditions are altered in favour of the subsystem to be shaped (e.g. forest law amended to favour the establishments).

Compliance with the coherence principle, i.e. the search for coherent integration of the subsystems to be tackled into the overall system, is particularly important for the ability of companies and organisations to survive. Analysis and possible correction of breaks and incompatibilities with neighbouring systems and with the environment generally are prerequisites for minimising frictions and hence saving energy and costs. Tracking developments outside the subsystem is a prerequisite for the ability of companies and organisations to connect thematically and programmatically with the future topics and political programmes which dominate political discussion in their environment. Naturally, this does not mean that forestry companies and organisations should respond to every new issue raised in the media. However, if companies isolate themselves, fail to be aware of political discussion of fundamental future questions, and fail to take a position on these, they run the risk that their potential for contributing to the solution of future problems will not be perceived and honoured, and will cost them chances of new alliances and support from society at large.

Sustainable forest management and freedom
Sustainable forest management is not compatible with the idiom „unable to see the wood for the trees”. It does not permit a narrow focus, and requires a broad view and approach in dealing with forests and associated resources.

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Sustainable forest management and freedom

This requirement is in clear contrast with the tendency towards the increasing focus on „economism” as „the major ideology of the present day” (ULRICH 2002: 35). This focuses very tightly on questions of efficiency in their narrowest sense, the valuation of inputs and results in terms of the market. This creates the danger that outputs which are not marketable and social and ecological aspects will not be appropriately considered in decision making (cf. BURGER / MAYER 2003: 42 et seq.). By contrast, the business ethicist ULRICH (2001: 204) emphasises that commerce means „creating assets”, and that this is „not an end in itself but a means to a good life”. The life-conducive aspect of business requires consideration of not just efficiency issues but also questions of equity (who should assets be created for? how should the costs and benefits of „rationalisation” be equitably divided?) and with questions of purpose (what assets should be created for what lifestyle? how should productivity gains be meaningfully used?). The life-conducive nature of sustainable forest management accordingly requires that efficiency questions, whose central importance is not disputed in any way, should be combined with questions about intergenerational equity and social equity. However, it is also necessary to ask what lifestyle sustainable forest management is intended to serve. Lifestyles can be very diverse in different societies and cultures. However, if we follow SEN (2000) in arguing that development must mean an increase in freedom in all cultures and societies, then sustainable forest management should be required to increase freedom from shortage of resources and shortage of possibilities for participation, increasing opportunities, expanding freedom to shape life, and reducing dependence on assumed material pressures. The five principles cited can assist sustainable forest management’s ability to create or increase freedom, in other words they are conducive to meaning. Forest management which complies with the paradigm of sustainable development requires far more comprehensive awareness of potential and opportunities and valuation of outputs and claims along more dimensions (the social dimension in addition to the ecological and economic ones) than forest sustainability alone. Sustainable forest management starts in the mind. To find and follow the path of sustainability, forest management requires far-sighted and openminded operational and sectoral decision-makers. The present work aims to show how forest certification can help in this.

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Dietrich Burger

References
ARNOLD, M. (2002): Comment: Clarifying the links between forests and poverty reduction. International Forestry Review 4(3), 2002: 231-233. BMZ (2000): Medienhandbuch Entwicklungspolitik, German Federal Ministry for Economic Cooperation and Development (BMZ), Berlin. BUND / MISEREOR (1996) (eds): Zukunftsfähiges Deutschland: ein Beitrag zu einer globalen nachhaltigen Entwicklung, Basel. BURGER, D. (1999): Von forstlicher Nachhaltigkeit zu Waldwirtschaft für nachhaltige Entwicklung. In: Rahmenbedingungen von Waldschutz und Waldbewirtschaftung in den Tropen: Einflüsse und Rückkopplungen anderer Politikfelder. GTZ, TÖB FTWF-14, Eschborn. BURGER, D. / MAYER, C. (2003): Making Sustainable Development a Reality: the Role of Social and Ecological Standards. GTZ Programme Office for Social and Ecological Standards, Eschborn. CARLOWITZ, H. C. v. (1713): Sylvicultura oeconomica, Anweisung zur wilden Baum-Zucht. Leipzig. Reprint by TU Bergakademie Freiberg, 2000. COSSALTER, C. / PYE-SMITH, C. (2003): Fast-Wood Forestry. Myths and Realities, Jakarta. DEUTSCHER BUNDESTAG (1998): Konzept Nachhaltigkeit. Vom Leitbild zur Umsetzung. Abschlußbericht der Enquete-Kommission ”Schutz des Menschen und der Umwelt- Ziele und Rahmenbedingungen einer nachhaltig zukunftsverträglichen Entwicklung” des 13. Deutschen Bundestages, Bonn. GARDNER-OUTLAW, T. / ENGELMAN, R. (1999): Mensch, Wald! Report über die Entwicklung der Weltbevölkerung und die Zukunft der Wälder, Stuttgart. GROBER, U. (1999): Der Erfinder der Nachhaltigkeit - Hans Carl Edler von Carlowitz. Die Zeit, 25.11.1999. KREIBICH, R. (1996): Nachhaltige Entwicklung - Leitbild für die Zukunft von Wirtschaft und Gesellschaft. Beltz, Weinheim und Basel. REICHERT, T. (2002): Sozialstandards in der Weltwirtschaft. GTZ Programme Office for Social and Ecological Standards, Eschborn. SCHERR, S. / WHITE, A., / KAIMOWITZ, D. (2002): Making Markets Work for Forest Communities. Washington, Bogor. SCHNEIDER, R. et al. (2000): Amazônia Sustentavel: limitantes e oportunidades para o desenvolvimento rural Série Parcerias No 1, Banco Mundial & IMAZON, Brasilia. SEN, A. (2000): Ökonomie für den Menschen - Wege zu Gerechtigkeit und Solidarität in der Marktwirtschaft, Hauser, München, Wien.

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References

SPEIDEL, G. (1967): Forstliche Betriebswirtschaftslehre, Hamburg, Berlin. SPEIDEL, G. (1972): Planung im Forstbetrieb, Hamburg, Berlin. TOMUSCHAT, C. (2002): Menschenrechte. Eine Sammlung internationaler Dokumente zum Menschenrechtsschutz. 2. Ausg., UNO, Bonn. UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) (2003): Bericht über die menschliche Entwicklung 2003. Millenniums-Entwicklungsziele: Ein Pakt zwischen Nationen zur Beseitigung menschlicher Armut. Deutsche Gesellschaft für die Vereinten Nationen e.V. Berlin. UNIVERSITY FOR PEACE (2002): ECO´92: Different visions. University for Peace, Earth Council, IICA, GTZ, OmCED, 2.ed. San José, C.R. ULRICH, P. (2001): Integrative Wirtschaftsethik. Grundlagen einer lebensdienlichen Ökonomie. 3. Ausg., Bern, Stuttgart, Wien. ULRICH, P. (2002): Der entzauberte Markt. Eine wirtschaftsethische Orientierung. Freiburg, Basel, Vienna. WIELAND, J. (1999): Die Ethik der Governance. Marburg. WORLD BANK (1997): Expanding the Measure of Wealth. Indicators of Environmentally Sustainable Development. Environmentally Sustainable Development Studies and Monographs Series No 17, Washington.

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Standards: pointing and paving the way to sustainable forest management

From the tropical timber boycott to forest certification
Chris Elliott

From the tropical timber boycott to forest certification
Chris Elliott

The international forest ‘crisis’ of the 1980s
In an influential book published in the mid-1980s, MYERS made the link between international consumption of tropical timber and deforestation: „I remember seeing a tree being felled by a logger in a forest in Borneo...each day thousands of such trees are cut in Borneo. Logging of any sort contributes to a pattern of depletion that may leave little forest of any sort, except degraded fragments, in Southeast Asia by the start of the next century...The consumerist demand by affluent people many thousands of kilometres away from Borneo or Amazonia is a prime impulse behind the headlong rush of many nations that have tropical hardwoods to harvest their hardwood timber at rates beyond which the forest can renew it.” (MYERS 1984: 91-93) Responding to this, international environmental non-governmental organisations (NGOs) began making calls for boycotts of tropical timber, starting with Friends of the Earth in the United Kingdom (UK) in 1984 (DUDLEY et al. 1995:109). Initially this led to bans on the use of tropical timber in public constructions in various municipalities in Germany, Holland, the UK and the United States of America (US) (ITTO 1992:17). Threats to the world's forests had attracted increasing attention from the general public in Western Europe and North America, the media and ‘policy-makers’ since the early 1980s and led to a ‘crisis’ situation by the middle of the decade (WCED 1987: 2-4; POORE et al. 1989: 1). The main issues were tropical deforestation, the loss of old-growth forests in temperate and boreal zones, threats to forest biodiversity, and ecological functions and land rights of indigenous people. These subjects can be summarised (with the exception of the last one) under the categories of deforestation and forest degradation. According to data from the Food and Agriculture Organization of the United Nations (FAO), forests covered about a quarter of the earth's land area in 1995, a total of 3,454 million hectares (ha.). The average annual deforestation rate in the tropics during the 1980's was estimated to be 15.4 million ha. (FAO 1995: 20), a compound annual rate of 0.8%. In 1997, FAO estimated that the annual deforestation rate for the period 1990-1995 was somewhat lower: 13.7 million ha. (FAO 1997b: 17) FAO does not issue figures on forest degradation. However one study using satellite images estimated that between 1986 and 1993, 19% of the world’s rainforest area was degraded (JANG et al. 1996). In another study on Amazonia, the rates of degradation (from closed to open forest), and fragmentation (from continuous to discontinuous forest), were estimated to be 3.8 million ha. per year between 1978 and 1988, twice the deforestation rate in the region (SKOLE / TUCKER 1993).

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The international forest ‘crisis’ of the 1980s

Costs of deforestation and forest degradation are high. Research in the Amazon has indicated that the potential present value of net revenue from the sale of non-timber forest products such as fruits, bark and resins harvested from natural forests may be as high as US$ 2,380 per ha. This is significantly higher than the revenue from alternative land uses in the region after deforestation, such as cattle ranching (GRIMES et al. 1994). Other research in the same region has shown that undisturbed tropical rainforest in the Amazon is a net absorber of carbon dioxide (GRACE et al. 1995) which gives forests added significance in the ongoing debate on measures to mitigate climate change. Overall, FAO estimates that the annual contribution of forest products to the world economy is approximately US$ 400,000 million, and that forestry currently provides subsistence and wage employment equivalent to 60 million work-years worldwide of which 80% is in developing countries (FAO 1994: 3).

International policy responses
Degradation or deforestation of individual forest sites has been noted since antiquity (e.g. MATHER 1990: 30-33). However, it has only been in the late 20th century that forest loss has been perceived as a global problem. The initial focus of attention was tropical forests. One of the first accounts was published by AUBRÉVILLE (AUBRÉVILLE 1938), but it was not until the publication of several assessments of the status of tropical forests approximately twenty years ago (SOMMER 1976; LANLY / CLÉMENT 1979; MYERS 1980; FAO 1982), that the need for international action to conserve forests (i.e. to stop deforestation and forest degradation) was widely accepted by governments and international institutions. This led to a number of policy responses in the 1980s: the initiation of the Tropical Forestry Action Plan (TFAP), in 1985, and the establishment of the International Tropical Timber Organization (ITTO) in 1986. These are primarily mechanisms for providing funding and technical assistance to projects in developing countries, but also fora for discussing policy reforms in these countries. The activities of TFAP, ITTO and other initiatives, involved an increase of official development assistance for forestry from US$ 400 million per year in 1985, to more than US $1,350 million per year in 1991 (FAO 1994: 16). However, the increases in funding and political and media attention associated with TFAP and ITTO had not lead to a reduction in deforestation rates by the early 1990s. This situation resulted in calls from environmental NGOs for tropical timber boycotts, and also demands from developed country governments for action from within FAO, United Nations Development Programme (UNDP) and The World Bank, for reform of international collaboration to promote forest conservation (e.g. CASSELS 1995; FAO 1994). The Director of the UNDP forestry programme was quoted as saying: „Deforestation is clearly out of control, certainly beyond the control of foresters, and we need an urgent re-examination of all ongoing programmes and policies” (LANKESTER cited in COLCHESTER / LOHMANN, 1990: i).

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From the tropical timber boycott to forest certification
Chris Elliott

Reform of international collaboration on forests was prominent on the agenda of the 1992 United Nations Conference on Environment and Development (UNCED), and in various preparatory meetings and processes. After some controversy between developed and developing countries, UNCED produced a set of non-binding Forest Principles and Chapter 11 of Agenda 21 (UNCED 1992a, 1992b) rather than the forest convention that many developed countries had been promoting. Although this was disappointing to some, the ‘global consensus’ on forests represented by these two documents does have some significant features, which have influenced subsequent discussions on forests. After UNCED, the UN Commission on Sustainable Development (CSD) was created to monitor progress in implementing Agenda 21 and other agreements reached at UNCED. In 1995, the CSD established an Ad-Hoc Intergovernmental Panel on Forests (IPF) to promote and review action at the national and international level to implement UNCED decisions relating to forests, and in 1997 the International Forum on Forests (IFF) was created to continue this work.

The emergence of forest certification
Labelling wood products with a mark of quality can be traced back in Europe to a French royal decree of 1637, which stipulated that members of the guild of cabinet makers had to mark the furniture they made. The label, which was a stamp marked on the wood, enabled members of the guild to maintain a monopoly on the production of high quality furniture. It was therefore an expression of the power of the guild. As such, it came under criticism and was abandoned after the French revolution in 1789 (WATSON 1956). In the 1990s under the name of ‘forest certification’, other forms of labelling wood have emerged, with the objective of identifying products from well managed forests. The first certification was carried out in Indonesia in November 1990 by the Smartwood programme of the Rainforest Alliance, an NGO based in New York (CROSSLEY 1995: 36). Since then, certification has developed rapidly, and by September 2004 over 40 million ha were certified under the Forest Stewardship Council (FSC) scheme alone, and more than 100 million ha if all certification schemes are included. The rapid growth of certification was not without controversy. In March 1997, the Food and Agriculture Organization of the United Nations (FAO) stated that: „Certification and the associated issue of labelling is one of the most topical and controversial subjects in forestry at the present time. Certification seeks to link trade in forest products, particularly international trade, to the sustainable management of the forest resource, enabling those who so wish to purchase products coming from sustainably managed forests.” (FAO 1997a: 1) It is interesting to study controversial subjects. However, the interest of certification as a topic lies not only in the controversies themselves, but in the actors and contexts involved. Forest policy is traditionally seen as a branch of public policy, yet in certification we find cases of NGOs and private sector actors taking the lead on issues rather than government forest departments. In terms of context, national-level developments on certification cannot be understood without reference to international timber markets and to the international forest policy debate. In short, 81

The emergence of forest certification

the development of certification can only be understood by reference to increasingly globalized economies and to policy processes involving multiple actors and fora. These actors and contexts are not only found in the case of forest certification. They are increasingly common in other environmental and social issues, and a study of forest certification should yield some lessons of wider applicability. When certification was first discussed, the idea was that it should be implemented by international organizations: in 1989, Friends of the Earth (FOE) (which had been actively promoting tropical timber boycotts in the UK) and several other NGOs, supported by the UK government proposed that the International Tropical Timber Organization (ITTO) carry out a project: „studying the possibility of labelling timber, including both logs and manufactured wood products, from tropical forests to indicate whether they came from forests managed for sustainable production” (ITTO 1991: 3). However, Malaysia, Indonesia and the Philippines expressed concerns that NGOs might call for boycotts of timber which was not labelled, and the proposal was not accepted in its original form. Instead, ITTO eventually carried out a broader study of the incentives required to promote sustainable management of tropical forests (ITTO 1991). In November 1992, the ITTO council meeting was the scene of vigorous criticism by Brazil, Malaysia and Indonesia about an act on tropical timber labelling adopted by the Austrian parliament in June 1992. This act made labelling of tropical timber imports obligatory in Austria, and was seen by tropical timber producing countries as an unacceptable trade barrier (RAMETSTEINER 1994). International pressure on Austria in ITTO and the threat of a formal complaint to the General Agreement on Trade and Tariffs (GATT) led to a revision of the act in 1993. In May 1994, ITTO published the first international report on the status of forest certification (BAHARUDDIN / SIMULA 1994) and organized a working party meeting to discuss the issue. The authors classified certification as a combined instrument of trade and environmental policy. They described the international context in which certification was emerging as follows: „There is a growing world-wide concern about environmental problems which is increasingly affecting trade. Environmental concerns about timber are part of broader product-related concerns of consumers in industrialized countries. These concerns are expected to continue spreading in the future...Environmental concerns about timber and timber products are limited to sustainability of forest management as part of the production process. The concerns are shared by consumers (environmental impacts of the production process of the products to be consumed), trade (market shares, company image) and industry (long-term availability of timber)...There is no more debate on the ‘why and wherefore’ of conserving eco-systems and forests and promoting economic development, albeit sustainable development. Discussion has moved on to a matter of modalities...the adoption of Agreements on Environment and Development at Rio de Janeiro in 1992 . ITTOs Target 2000...ITTO Guidelines...have provided the multilateral framework to minimize the differences between timber producing and consuming countries”. (BAHARUDDIN / SIMULA 1994: vii and 2-3)

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Chris Elliott

BAHARUDDIN and SIMULA (1994) noted that the primary objectives of certification were to improve forest management in order to achieve sustainability, and to ensure market access of certified timber particularly in markets with high environmental awareness. They identified the following general requirements for a viable certification system: credibility, coverage of all types of timber, objective and measurable criteria, reliability, independence, voluntary participation, non-discriminatory, acceptable to the parties involved, adaptability to local conditions, cost effectiveness, transparency, goal-orientedness, and practicability. The report noted that NGOs were broadly supportive of certification in 1994, whereas views in the timber trade and industry varied from strong support to active opposition. Most governments expressed tentative support for certification, albeit with a variety of reservations. Several important tropical timber exporters, including Malaysia and Indonesia linked the implementation of certification schemes to ITTOs Target 2000 and called for a delay, saying that certification should be implemented by that date, rather than immediately. Only two countries (Brazil and Congo) were definitely against certification. Canada, the US and Switzerland expressed support for private-sector certification schemes. The report noted that certification alone was likely to be a second-best instrument to achieve improved forest management and assured market access and that its effectiveness would be enhanced if it was part of a policy package. The authors concluded: „In spite of the uncertainties related to the effectiveness and relevance of environmental labelling as a policy instrument for conservation of natural resources, labelling is expected to become more common, not least because of increasing demand for environmental information on products by consumers, and the less discriminatory nature of labelling as a policy tool compared to other instruments (e.g. product standards and regulations)”. (BAHARUDDIN / SIMULA 1994: vii) . Another study commissioned by ITTO (WADSWORTH / BOATENG 1996) concluded that market demand for certified timber was strongest in Germany, the Netherlands, Belgium and Austria, moderate in the US and UK and virtually non-existent in Japan and Korea. Even in the countries with relatively high demand, interest was confined to certain parts of the market such as the ‘do-it-yourself’ retail sector and the industrial joinery sector. The study concluded that there was little willingness among consumers to pay more for certified products but noted that the market for certified timber was not simply a niche one, particularly as certification began to be applied to temperate forests as well as tropical ones. The study does not suggest why the market demand for certified timber is strongest in the ecosensitive countries listed above but it can be noted that they are all democratic countries with active NGOs and green political parties working on forest conservation issues. These NGOs and political parties have mobilised public opinion on forest conservation issues and sometimes succeeded in placing them on the public policy agenda. It can be seen that a number of fundamental building blocks for certification programmes were developed under the auspices of ITTO, partly in response to pressure from international NGOs such as FOE and World Wide Fund for Nature (WWF). ITTO also played a role as a forum for international discussions on certification. However these NGOs gradually became disenchanted with ITTOs perceived vacillation on labelling and began to pursue initiatives outside ITTO.

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In November 1991, WWF produced a position paper which included the following comment: „Meanwhile, because of ITTO’s inertia, conservation NGOs, including WWF, are working directly with the timber trade on incentives and labelling...WWF is helping establish a credible independent labelling scheme that gives consumers a choice. A group of small-scale traders and several environmental groups - the Forest Stewardship Council - is working on the scheme details...in short, a labelling scheme for wood products is developing, leaving the ITTO behind” (ELLIOTT / SULLIVAN 1991: 5-6). In a detailed analysis of ITTO, GALE (1996) concludes that a tacit alliance was formed between producer and consumer government coalitions and the tropical timber industry to block the negotiation of norms, procedures and compliance mechanisms needed to institute a sustainable tropical timber trade regime, and that in consequence environmental NGOs largely abandoned ITTO as a forum. On certification he notes: „The reluctance of governments to negotiate a certification and labelling scheme under the auspices of the ITTO stemmed from a number of considerations, including doubts about such schemes technical feasibility, cost, GATT compatibility and industry resistance. On the other hand, certification was the mildest of the negative compliance measures suggested (which included bans, boycotts, tariff increases, voluntary export restraints, quotas and levies). By failing to move forward on certification and labelling, governments signalled their intention to create a minimally-effective Tropical Timber Trade Regime that ensured that few consequences and no costs would result from a failure to implement its provisions”. (GALE 1996: 397). In summary, international initiatives such as TFAP and ITTO had not made a visible impact on global or regional deforestation rates by the late 1980s, and were criticized in consequence, particularly by NGOs. Before UNCED, there were therefore calls from some governments, development aid agencies and NGOs for reform of these international initiatives, but no major changes were made. In addition, in the late 1980s, there was an increased interest by policy analysts and intergovernmental organizations like the Organization for Economic Co-operation and Development (OECD) in the use of economic incentives for improving natural resource management (OECD 1989) and in environmental labelling (OECD 1991). The relationship between trade and the environment was also becoming an international policy issue. It was in this context that forest certification emerged in the early 1990s as a policy instrument initially promoted by conservation NGOs, to address the problems of deforestation and forest degradation. These NGOs were able to marshall the technical, political and financial resources to support certification in general, and the FSC in particular: „The experience on FSC shows that an international NGO-based initiative can lead to important development work both within and outside the organization, significant to the extent that it had prompted similar initiatives, national and regional, as alternatives to FSC’s. FSC’s concept was designed by NGOs, probably with small market shares targeted initially.” (BAHARUDDIN / SIMULA 1997: 14)

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Chris Elliott

This quote suggests that NGOs had both a direct influence in promoting FSC, and then as a result of this a (probably unintended) indirect influence on the development of other certification programmes which developed as a response to FSC. The fact that NGOs such as WWF, FOE, the Global Forest Policy Project and Greenpeace had the capacity to support FSC is one of the elements which has contributed to the development of certification. It can be argued that by the early 1990's several international NGOs working on forest policy found themselves in a position to promote certification for two main reasons. First, a number of these NGOs had sought to integrate conservation and development perspectives in their policy proposals. One of the first presentations of the concept of sustainable development can be found in the World Conservation Strategy published by IUCN (The World Conservation Union, formerly known as the International Union for the Conservation of Nature), UNEP (United Nations Environment Programme) and WWF in 1980 (IUCN 1980). A number of the ideas from this Strategy were taken up in the World Commission on Environment and Development (WCED) report (WCED 1987: 43). Certification was identified as a tool to achieve the conservation and sustainable development of forests in the second edition of the World Conservation Strategy, published before UNCED in 1991. At the same time the Strategy questioned the effectiveness of tropical timber boycotts which had been promoted by a number of NGOs in the 1980s: „An important part of the strategy to save tropical forests is to increase the economic benefit for forest nations and communities from using forests rather than converting them to farmland. We therefore need a strong, sustainable tropical timber industry. Economic incentives are needed to build up trade based on sustainably managed forests. A comprehensive package of measures is needed to make trade conditional on sustainability. These would include systems of certification and management with provision for monitoring and financial support for their implementation. Lower-income countries may require assistance to meet criteria...Buying tropical veneers and other valuable tropical hardwood products that have been produced sustainably would encourage maintenance and even improvement of selective wood extraction. Blanket boycotts of tropical timber are likely to favour forest clearance for low-grade shifting cultivation, because they remove economic incentives to keep even modified forests” (IUCN 1991: 132-133)1. In summary, after the WCED and UNCED sustainable development has been recognized by governments as an objective of the emerging international forest regime. To the extent that forest certification could be presented (as it is in the quote above) as a tool to achieve this objective, it is likely to have had more legitimacy with governments than if it had been presented in isolation. This was important because the main funding source for FSC was governments. It also provided a basis for collaboration with retailers through buyers groups. These groups have been seen by some analysts as NGO/business partnerships with the objective of achieving sustainable development (MURPHY 1996). Similarly, the sustainable development concept and the recognition of the need for a sustainable timber industry, provided a platform for dialogue and co-operation with forest companies such as AssiDomän in Sweden who have been supportive of certification. Co-operation with these private sector actors certainly increased the policy influence of NGOs in some countries.

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These NGOs had experienced significant increases in their staffing and income in the 1980s which gave them the technical and financial resources to contribute to the development of forest certification. For example, WWF’s total income world-wide increased from US$50 million in 1985 to US$250 million in 1995. During the same period, the staff of WWF International increased from approximately 50 to over 140 (WWF 1996). Similarly, FOE-UK had an income of £10,000 in 1971, £206,000 in 1981 and £5.3 million in 1995 (LOWE / GOYDER 1983, THE INDEPENDENT 1996). In addition to NGO support another element which has contributed to the development of certification programmes is the set of international processes on criteria and indicators. Documents from these Criteria and Indicator processes have contributed directly to the development of certification standards in several countries, even though the relationship between Criteria and Indicators and certification has sometimes been the subject of controversy. There may have also been indirect contributions from the numerous discussions and publications on Criteria and Indicators and sustainable forest management. It is interesting to note that while the Criteria and Indicators and certification processes have influenced each other they have been supported by different actors (mostly NGOs and private sector actors for certification, mostly governments for Criteria and Indicators). In consequence, they have evolved in different ways. The post-UNCED Criteria and Indicators processes had their origin in agreements between governments at UNCED which were expressed in the Forest Principles and Agenda 21. International consensus on the need for Criteria and Indicators led to their development. Certification developed in a converse manner with programmes developing first and international discussions at IPF and the intersessional meetings to some degree trying to catch up with events. A third element contributing to the development of certification was the increasing interest in parts of the private sector for sustainable development. For example the statements and activities of the Business Council for Sustainable Development (BCSD, later renamed the World Business Council for Sustainable Development, WBCSD) show that by 1992 a number of business leaders from large national and international corporations had expressed support for sustainable development: „Business will play a vital role in the future health of this planet. As business leaders, we are committed to sustainable development, to meeting the needs of the present without compromising the welfare of future generations... New forms of cooperation between government, business, and society are required to achieve this goal” (Declaration of the BCSD signed by 48 business leaders cited in SCHMIDHEINY 1992: xi) The concept of sustainable development has been subject to a variety of interpretations and the BCSD’s interpretation with a focus on economic growth was not the same as that of IUCN, WWF and UNEP in the second edition of the World Conservation Strategy (IUCN 1991). However, what should be noted is that a number of influential business leaders had the technical and political capacity to promote an alternative approach to certification, also within the framework of sustainable development.

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Chris Elliott

Other elements which have influenced the development of certification are the evolution of ecolabelling and the increased use of economic instruments for environmental protection. It is not possible to establish any causal links between these developments, but it is likely that these trends provided a favourable environment for the development of certification programmes. Last but not least, the other significant influences which have affected the development of certification schemes and will continue to do so in future, are the the creation of the World Trade Organization (WTO), the signature of the Agreement on Technical Barriers to Trade (TBT) and the adoption of International Organization for Standardization (ISO) standards 14001 and 14020 on environmental management. The TBT Agreement is likely to influence all ecolabelling programmes. They will increasingly have to demonstrate that their standards are based on the best available information and developed through a stakeholder process, if they are to avoid being considered a trade barrier. The agreement focuses on governmental ecolabelling programmes but will also set a benchmark for non-governmental programmes. ISO has provided a forum and mechanism for the development of system-based certification, and is closely linked to WTO. This will provide additional support for a systems-based approach to certification rather than one based on performance standards.

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Notes

Notes
1

Although the Strategy referred to tropical forests, the adoption of a global approach to forests at UNCED by governments was followed by NGOs, so these recommendations have come de facto to apply to all types of forests.

References
AUBRÉVILLE, A. (1938): La Forêt Coloniale; Les Forêts de l'Afrique Occidentale Française. Ann. Acad. Sci., Colon, 9, 1-245. BAHARUDDIN, H. G. / SIMULA, M. (1994): Certification Schemes for all Timber and Timber Products. Report for the International Tropical Timber Organization, Yokohama, Japan. BAHARUDDIN, H. G. / SIMULA, M. (1997): Timber Certification: Issues and Progress. Report for the International Tropical Timber Organization, Yokohama, Japan. CASSELS, D. (1995): Considerations for Effective International Co-operation in Tropical Forest Conservation and Management. In: SANDBUKT, O. (ed): Management of Tropical Forests: Towards an Integrated Perspective. Centre for Development and the Environment, University of Oslo, 357-375. COLCHESTER, M. / LOHMANN, L. (1990): The Tropical Forestry Action Plan: What Progress? World Rainforest Movement, Penang, Malaysia. CROSSLEY, R. (1995): A Review of Global Forest Management Certification Initiatives; Political and Institutional Aspects. Background Paper prepared for the University of British Columbia/Agricultural University of Malaysia Conference on Certification in May 1996, Kuala Lumpur. DUDLEY, N. et al. (1995): Bad Harvest. Earthscan, London. ELLIOTT, C. / SULLIVAN, F. (1991): Incentives and Sustainability. Where is ITTO Going? Position paper, WWF International, Gland. FAO (1982): Tropical Forest Resources. FAO forestry paper No.30, FAO, Rome. FAO (1994): Report on Forests: Agenda 21, Chapter 11 Combatting Deforestation and the Forest Principles. Report of the UN Secretary General to the Commission on Sustainable Development, FAO, Rome. FAO (1995): Forest Resources Assessment 1990; Global Synthesis. FAO Forestry Paper No.124, FAO, Rome.

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From the tropical timber boycott to forest certification
Chris Elliott

FAO (1997a): Forest Products Certification. Forestry Information Notes, March 1997, FAO, Rome. FAO (1997b): State of the World’s Forests. FAO, Rome. GALE, F. (1996): The Ecological Political Economy of Global Environmental Cooperation: a Case Study of the International Tropical Timber Organization in the Making of the Tropical Timber Trade Regime. PhD Dissertation, Carleton University, Ottawa. GRACE, J. et al. (1995): Carbon Dioxide Uptake by an Undisturbed Tropical Rainforest in Southwest Amazonia, 1992-1993. Science, Vol. 20, 778-780. GRIMES, A. et al. (1994): Valuing the Rain Forest: The Economic Value of Non-timber Forest Products in Ecuador. Ambio, Vol. 123 (7), 405-420. THE INDEPENDENT (1996): May 5, 1996, 5, London, UK. ITTO (1991): Pre-Project Report on Incentives in Producer and Consumer Countries to Promote Sustainable Development of Tropical Forests. ITTO, Yokohama, Japan ITTO (1992): Annual Review and Assessment of the World Tropical Timber Situation. ITTO, Yokohama, Japan. IUCN (1980): World Conservation Strategy. UNEP / WWF, Gland. IUCN (1991): Caring for the Earth: A Strategy for Sustainable Living. IUCN / UNEP / WWF, Gland, Switzerland. JANG, C. / NISHIGAMI, Y. / YANAGISAWA; Y. (1996): Assessment of Global Forest Change Between 1986 and 1993 Using Satellite-Derived Terrestrial Net Primary Productivity. Environmental Conservation, Vol. 4 (23), 315-321. LANLY, J. P. / CLÉMENT, J. (1979): Present and Future Forest and Plantation Areas in the Tropics. Unasylva, Vol. 31 (123), 12-20. LOWE, P. / GOYDER, J. (1983): Environmental Groups in Politics. George Allen and Unwin, London. MATHER, A.S. (1990): Global Forest Resources. Belhaven, London. MURPHY, D. F. (1996): Business, NGOs and Sustainable Development. In: ASPINALL, R. / SMITH, J.(1996): Environment and Business Partnerships - A Sustainable Model? The White Horse, Cambridge, UK, 45-72. MYERS, N. (1980): Conservation of Tropical Moist Forests. National Academy of Sciences, Washington D.C.

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References

MYERS, N (1984): The Primary Source. Tropical Forests and Our Future. W.W. Norton and Company, New York. OECD (1989): Renewable Natural Resources; Economic Incentives for Improved Management. OECD, Paris. OECD (1991): Environmental Labelling in OECD Countries. OECD, Paris. POORE, D. et al. (1989): No Timber Without Trees: Sustainability in the Tropical Forest. Earthscan, London. RAMETSTEINER, E. (1994): Timber Labelling. Federal Ministry of the Environment, Vienna. SCHMIDHEINY, S. (1992): Changing Course: A Global Business Perspective on Development and the Environment. MIT Press, Cambridge, USA. SKOLE, D. / TUCKER, C. (1993): Tropical Deforestation and Habitat Fragmentation in the Amazon: Satellite Data From 1978 to 1988. Science, No. 260, 1905-1910. SOMMER, A. (1976): An Attempt at an Assessment of the World's Tropical Forests. Unaslyva, Vol. 28 (112/13), 5-25. UNCED (1992a): Forest Principles. Non-legally Binding Authoritative Statement of Principles for a Global Consensus on the Management, Conservation and Sustainable Development of all Types of Forests. United Nations, New York. UNCED (1992b): Combatting Deforestation, Chapter 11 of Agenda 21: Programme of Action for Sustainable Development. United Nations, New York. WADSWORTH, J. / BOATENG, P. (1996): Study on Markets and Market Segments for Certified Timber and Timber Products. Report for the International Tropical Timber Organization, Yokohama, Japan. WATSON, F. J. B. (1956): Wallace collection Catalogues: Furniture. William Clowes and Sons, London. WCED (1987): Our Common Future. Report of the World Commission on Environment and Development. Oxford University Press, Oxford. WWF (1996): Annual Report 1995. WWF International, Gland.

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Standards: flexible and practical aids to communication
Dietrich Burger

Standards: flexible and practical aids to communication
Dietrich Burger

Sustainable forest use and communication
A wide range of different actors is involved in sustainable forest management, e.g. forest owners, employees, neighbouring residents, suppliers, customers, officials, associations, environmental and social organisations (to name just a few important examples). These actors communicate with each other verbally and through other signals, react and influence each other. Sometimes they communicate directly, sometimes indirectly through other actors. Sustainable forest management accordingly involves a complex communications network. Disruptions in communication can cause problems for the sustainability of forest management, e.g. if forest workers do not understand which trees are to be left during felling, or if management misunderstands market signals and offers wood types for which there is no demand. The complexity extends beyond the actors’ communications network to the individual acts of communication. Each communication - intentionally or otherwise - conveys an entire package of messages (SCHULZ von THUN 1990): besides the material information, the originators always convey information about themselves (disclosure - „Whenever I say anything, I say something about myself”). The communication also contains a message about what the sender thinks of the recipient, and their relationship. Finally, almost all communications try to influence the recipient - they contain an appeal This bundle of messages which is contained in every communication is shown in figure 1. Figure 1: The four sides (aspects) of a communication (SCHULZ von THUN 1990: 30)

material content

sender

disclosure

communication

appeal

recipient

relationship

To understand communication in the field of sustainable forest management, the lesson from communications psychology that a communication involves not just the material content but also an entire package of messages is very important. The material content can be illustrated using the example of music: a violin can generate a note with a specific pitch or frequency; a note with the same pitch can be played on a trumpet, but the sound is completely different, because violin and trumpet have very different sets of overtones accompanying the fundamental note. The fundamental notes of the melodies in a Beethoven symphony can be played 91

Sustainable forest use and communication

on a recorder. However, nobody would dream of substituting a recorder for the symphony orchestra. The material content of a communication or statement can be compared with the fundamental note, and the package of messages communicated with the sound of the note. Whether a statement is understood or appears credible and whether its appeal is successful depends not only on its material content, but also - and sometimes even more - on the other components of the message, i.e. who is making the statement, what the recipient knows, learns and feels about them, whether the statement succeeds in creating a relationship between the recipient and sender, and whether the appeal speaks to the recipient and the recipient is able to respond to it. Experts are often trained to formulate or evaluate the material content of statements. Most of them are less familiar with the other components of communication. As a result, they are often surprised when the correct material content fails to have the expected effect. Besides the complexity of the communication network and the diversity of the messages transmitted with each communication, communication in and about sustainable forest management is also often complicated by the fact that influential actors (e.g. in the added value chain from the forest to articulate consumers) are often remote from each other, and occasionally live in different language areas and cultures. Abandoning communication because of its many difficulties is not an option, since - as WATZLAWICK and BEAVEN (1969) note - it is impossible not to communicate. We communicate even when we are silent, e.g. through body language. There is always communication, although it can be significantly disrupted and lead to misunderstandings. This is why it is important to make use of aids to communication. Standards are examples of such communication aids. The following pages look at standards and their functions in assisting communication. Initiatives to develop and implement standards can follow different approaches. There will accordingly also be a review of important characteristics of standards initiatives covering the standards themselves and their formulation, and also the features of conformity testing, which may lead to a conformity declaration (e.g. a certificate), in other words a declaration that certain standards have been met. Finally, one of the important characteristics of standards initiatives is how testers are licensed or accredited, and by whom. All these processes are concerned primarily with securing the material content of conformity declarations against misunderstandings, and making them as unambiguous as possible. However, for unambiguous conformity declarations to lead actors to reward such forest management, effective implementation strategies are needed. These go beyond the material information that certain standards were complied with and operate forcefully through appeals, through disclosure by the groups behind the standard initiatives, and through the creation of relationships with the target groups for the strategy. The review of the wealth of possibilities for configuring standards initiatives is followed by a discussion of the important features of certification systems as a specific kind of standards initiative. Overall, the present paper is intended to lay a foundation for the presentation of individual certification systems in the following papers.

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Standards: characteristics and functions
Standards are widely used in international trade, particularly where prices are agreed for goods without the possibility of inspecting and testing them. Prices are agreed for clearly specifiable standards, i.e. quality types or classes, possibly before the goods are even produced or harvested (e.g. future exchanges for grain, cotton, coffee). Standards such as the DIN German industrial standards also play a major role in mass production. Suppliers have to meet specific standards so that the supplied parts can be assembled. Generally, standards can be defined as clearly specified quality characteristics. The International Organization for Standardization (ISO) also requires standards to be the result of a process of consensus and to be approved by a recognised body: „A standard is a document, established by consensus and approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.” (ISO / IEC 1991, Definition 3.2) For a standard to specify unambiguous characteristics, it must also show characteristics of clearly specified aims (cf. HEINEN 1966). The embodiment of the characteristics to be tested is unambiguously defined: if products are required to possess these characteristics (product standards), it must be clear whether the characteristics must be identifiable in all stages of the product’s development or processing, or only in specific ones; if processes are required to possess these characteristics (process standards), it is necessary to define whether compliance with the standard is required for the overall process or just individual phases. If a wood product is accompanied by a declaration that the wood was produced in compliance with certain standards of socially and environmentally acceptable forest management, this involves a process standard which simply makes a statement about the process by which the product was made, and not about the quality of the product itself. The declaration does not show whether or not the wood contains residuals of substances injurious to health as a result of its processing. The features must be defined in terms of quality, rules for measurement and value. This can be illustrated by considering the human feature of height. The quality of this feature is not unambiguous, as a person’s size can mean a lot of things; it is only after we add the rule that size is measured as height that the feature’s quality is uniquely defined. It seems trivial to require that height be measured „from the top of the skull to the sole of the feet”. However, measurement rules are by no means obvious for many features. Without them, the feature is often not uniquely specified. The value of the feature shows the height or required height of a person, i.e. 1.83 m. Values can be measured on different scales. This may be nominal (yes, no), ordinal (e.g. large, medium, small) or cardinal (numerical values). Target features can be given as absolute values, relative values (>X; <Y) or extreme values (maximum, minimum). Certification standards often use criteria which usually state quality and measurement rules for the feature to be tested, and indicators describing the required values of the features. If a standard for a feature specifies a limit (maximum or minimum) which must be satisfied, it is frequently described as a performance standard. By contrast, management system standards do not set limits, but instead require proof that the management system is working towards improving the relevant feature. Well-known ISO

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Standards: characteristics and functions

standards such as the Environmental Management System (EMS) standard ISO 14001 are management system standards. As a result, they can only be used to describe a company, and not a process or product (BASS 1998: 13). The reference period for a feature shows whether the feature is required to be present continuously, or during a specified period only. Standards often appear unambiguous at first reading, particularly where the actors affected jointly agree targets. However, closer reading frequently reveals a lack of precision or weakening clauses which show that the non-ambiguity is only apparent. Weakening expressions frequently encountered are „substantially”, „where possible”, „as soon as possible” or simply the omission of any required period. Standards can perform a wide range of very different functions: Aids to learning and innovation: learning in the sense of a permanent improvement in behaviour is only possible if a measurement rule and desired values (e.g. a „yardstick”) are available to allow evaluation of actual behaviour. Innovations can only be tested and developed further if it is possible to establish whether they are moving towards or away from the target value. Preventing technical disruption: if a facility procures replacement parts which do not comply with the standard, this can result in technical disruptions because the replacement parts cannot be incorporated or do not have the expected durability. Control instrument: it is only possible to establish whether specifications are met if they are formulated in a way which is unambiguously measurable. Management instrument: the most important function of management is to provide guidance for employees. Specifying or negotiating clearly measurable performance is essential for this (Management By Objectives). Assisting internal communication and motivation: unambiguous agreements facilitate internal communication, and goals with clear relevance to social values (such as sustainable development) boost employee motivation. Assistance to communication with business associates and customers: unambiguously formulated standards and doubt-free testing make it easier for customers and business associates to obtain information about a company’s values and policies, i.e. what it stands for and what can be expected of it. Reduction in transaction costs: the costs of obtaining information when entering into agreements can be significantly reduced if unambiguously defined standards are agreed with no margin for doubt and can be checked. In many cases, standards perform several functions at the same time. For example, introducing certain forest management standards can convey the message to customers that the wood from the company was grown and harvested in a way which is socially fair and environmentally acceptable, and also provide evidence to official agencies that legal norms were complied with. They can also improve employee orientation and motivation.

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Standards: flexible and practical aids to communication
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In all these functions, standards help make communication unambiguous and avoid misunderstandings. Standards are, however, only aids to communication. They cannot communicate themselves, and have to be correctly used in communication processes. Depending on the individual cultural background, the requirements and effects of communication using standards can differ widely. Certain modes of behaviour may seem a matter of course to people belonging to the same culture, while the same standard may need to be spelled out and explained to outsiders.

Options for designing standards initiatives
The institutions working on developing and using standards as communication aids are very different in nature, operating in a wide range of fields with highly diverse goals and methods. All these are covered here by the term standards initiatives. The term is deliberately defined broadly. It is intended to cover statutory initiatives, such as the European Union (EU) regulation on organic produce, certification systems like the Forest Stewardship Council (FSC), as well as voluntary commitments by companies to specific standards, like the Global Compact proposed by UN Secretary General Kofi Annan, or standards established and monitored by the companies themselves, such as those the retail chain C&A requires its suppliers to comply with. Standards initiatives can take a very wide range of forms, differing not only in terms of the standards used, but also often in how the standards arose, whether and how compliance with them is checked, and by whom (conformity testing), how testers are licensed (accredited) and by whom, and finally how compliance with standards is rewarded or non-compliance penalised, and by whom. Standards initiatives accordingly display a wide range of features which can take very different forms (cf. fig. 2). When comparing standards initiatives - e.g. for the possibility of mutual recognition - it is very important to compare the full range of features, including both those intended or announced by the standards initiatives and those actually observed. Given the wide range of possible forms standards initiatives can take in terms of formulation of standards, conformity verification, accreditation and implementation, the impression could arise that design is arbitrary. However, this would be wrong, as international conventions and agreements and also (and particularly) the ISO have drawn up numerous rules for specific features of standards initiatives, e.g. that standards must be formulated in a participative and consensual manner. These rules are not binding, and standards initiatives cannot be forced to comply. However, any initiative which fails to follow such generally accepted rules is in danger of being refused mutual recognition by other initiatives, being dismissed by the public as lacking credibility, or being classified as a trade barrier by the World Trade Organization (WTO). VALLEJO / HAUSELMANN (2000) compiled these international rules with specific reference to the field of forestry under a contract from the GTZ Forest Certification Project. Based on this, and with the participation of the two authors, NUSSBAUM et al. (2001) expanded the review of the basic rules for standards initiatives. The review in fig. 2 of the features of standards initiatives is taken from the publication by BURGER / MAYER (2003). This also looks at the individual features. The following section only considers the features which are particularly typical of certification systems. 95

Options for designing standards initiatives

An important key features of standards initiatives is the participation of those affected and interested parties in both formulating the standards and conformity testing. This includes not only whether there is participation, but also (and particularly) how this is handled. Participation can be interpreted in very different ways, from mere presence at decision-making or hearings through to codetermination. Interest groups are unlikely to feel they are genuinely participating if the approach follows the line „invite, inform, ignore”. Participation requires not only the will but also the capability. Particularly where interest groups from different cultures are to be included, there may be problems with intercultural dialogue (from the modalities of the invitation through language to the premises) which complicate or prevent participation. Another point that requires careful consideration is whether there is adequate participation by affected parties if their interests are being represented by international organisations. How far is it necessary and possible to require that participants should themselves participate in drawing up the rules for participation? In connection with the current debate over measures against illegal logging, the question arises whether existing certification systems can serve as effective or even adequate instruments. It is important here to distinguish carefully between two features from the category „Formulation and nature of standards” (cf. fig. 2): legality, i.e. whether the standards require compliance with legally binding norms, and legitimation, i.e. whether the standards correspond with generally accepted rules of behaviour, and were not drawn up arbitrarily or on the basis of a very specific value system, and whether internationally accepted rules were observed for formulation. In the standards of most forest certification systems legality is ensured by the requirement of compliance with national laws and regulations. This establishes that forest certification is complementary to rather than competing with national forestry policy. Complementarity may mean that forest certification provides a control mechanism which supplements and reduces the burden on national controls, or it may also mean that the standard establishes rules which go beyond the limits of legality, so that its legitimation needs clarification. Legality of forest certification becomes a problem where the formal law of a country does not coincide with the population’s sense of right, i.e. where legality and legitimation conflict. Forest certification runs into such conflicts e.g. where companies seeking certification use forest resources under rights transferred to them under the formal legal system, but in which other social groups claim use rights under traditional law. KAIMOWITZ (2004) recently drew attention to this kind of conflict. Various interstatal bodies (e.g. meetings of G7 (Group of the seven major industrial countries), European Union (EU) Parliament and Council of Ministers and the International Tropical Timber Organization (ITTO)) are currently looking for ways to suppress trade in wood from illegal sources. It is conceivable that greater use could be made of existing forest certification systems for this, or new certification systems could be developed which restrict themselves to documenting legality. The Danish government chose the first approach when it decided in 2001 to accept FSC certification as evidence of the legality of wood production (EBA’A / SIMULA 2002). It remains to be seen whether this is sufficient to suppress the trade in wood from illegal sources.

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Standards: flexible and practical aids to communication
Dietrich Burger

Figure 2: Features of standards initiatives (source: BURGER / MAYER 2003)

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Options for designing standards initiatives

Standards of forest certification systems require legal action, but are not themselves laws. Compliance with a specific standard is a voluntary decision. However, once this decision has been taken and documented through the use of the corresponding logo, compliance with the standard is binding (i.e. no longer voluntary). The legitimation of the standards of forest certification systems is mostly based on international or intergovernmental decisions and agreements. The legitimation of the FSC standard and the national standards recognised by the FSC is based on the resolutions of the 1992 UN Conference on the Environment and Development in Rio de Janeiro. The legitimation of the standards approved by the PEFC (Programme for the Endorsement of Forest Certification schemes, formerly Pan European Forest Certification) is based on the resolutions of the Ministerial Conferences on the Protection of Forests in Europe in Helsinki (1993) and Lisbon (1998). The first standards for sustainable forest management were published by the ITTO (1989). However, these were originally intended only as a basis for member countries’ reports to the ITTO. Their formulation was not sufficiently operational for conformity verification as part of certification or for other purposes. Commissioned by the GTZ Forest Certification Project, APPANAH and KLEINE (2001) wrote guidelines for formulating local conformity testing procedures based on the ITTO criteria and indicators. On behalf of the ITTO Council, BAHARUDDIN and SIMULA (2000) used an early version of this work to draft guidelines for ITTO member countries to develop locally appropriate procedures for conformity testing based on ITTO criteria and indicators. Another key feature of standards for forest certification systems is their meaningfulness. This means that it is clear which values a standard is aimed at. A standard aimed at short-term profit maximisation will involve other rules than one aimed at sustainable development. However, a purely verbal commitment to specific values in standards is not sufficient evidence of the meaningfulness of the certification system. What values a standard is aimed at is something which only becomes apparent in combination with the rigour and procedures for conformity testing. For standards intended as communication aids, meaningfulness is very important: it is necessary both to communicate to producers why it makes sense to follow a particular standard, and to explain to customers and other stakeholders why it makes sense to reward production processes which comply with the specific standard by buying products or in some other way.

Certification: a specific type of standards initiative
Certification states that independent testers confirm compliance with specific standards with a certificate. Declarations by the producers about their products (e.g. „the wood was naturally grown”) should not be regarded as certificates. The standards which the certificate confirms have been complied with can cover a very wide range, and should be specified. The statement „the product was manufactured to the highest quality standards” is meaningless unless the standard is cited. Certificates can also be used for very different purposes. The fact that forest certificates were mainly developed as a means of communication in the market should not be taken as implying that certification is exclusively a marketing instrument. The information conveyed in the certificate can be used not only for communicating with customers, but also to

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Standards: flexible and practical aids to communication
Dietrich Burger

demonstrate to insurance companies, banks, officials and stakeholders (i.e. interest groups of all kinds including environmental and social organisations) that a company is complying with specific standards of environmentally and socially acceptable forest management (forest management certificate), or that a processing or marketing establishment is following specific rules regarding evidence of origin (value chain or chain of custody certificate). Forest certification can make standards developed by actors who are not democratically empowered to issue legally binding norms „customary commercial practice“. It is easy to regard the groups which support and advance the certification system as self-appointed legislators. In the context of forest certification, conformity testing is always performed by external testers. It is difficult for outsiders to judge how independent they actually are, and whether the testing is competently and appropriately done, as conformity testing can differ widely depending on the local circumstances and possibilities. A key feature of conformity testing is transparency, i.e. how easy it is in a specific instance for those directly and indirectly affected (including the general public) to get an idea of the appropriateness of conformity testing and its implications, particularly official requirements and the award or denial of a certificate. In describing and comparing certification systems, a lot of attention is rightly paid to the standards, conformity testing and accreditation of testers. It is, however, surprising that virtually no attention is paid to implementation strategies. This is all the more surprising because this category contains the features which account for the greatest differences between certification systems, particularly since differences between standards, conformity testing and accreditation are steadily decreasing. The features of the implementation strategies are also most likely to be crucial in determining the acceptance and future viability of certification systems. The implementation strategy displays the communicative quality of a certification system particularly clearly. On the one hand there is the task of convincing producers to show compliance with a specific certification system, and on the other hand there is the task of persuading actors to reward the benefits which they obtain directly or indirectly from producer compliance with standards. This communication conveys not only material information and an appeal, but also carries relationship messages (cf. fig. 1) by raising the prospect of aid for conversion or incentives or sanctions (cf. fig. 2). The other decisive factor here is the disclosure by the promoters of the certification system. With their credibility and communicative competence, non-governmental organisations (NGOs) can play a decisive role in the effectiveness of the implementation strategy of a certification system, and so contribute to its viability. The material information in communication with producers involves first the comprehensible presentation of the rules with which the production process has to comply, second the explanation of the requirements producers need to meet for conformity testing, and third the presentation of the direct and indirect benefits to them of conformity with the standards. The material information of communication with the actors to whom the appeal is directed about rewarding production which complies with the standards is that it explains to the actors in their language and with their logic what the specific benefits of production in compliance with standards are, and why they should support these standards. These quality declarations are

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Certification: a specific type of standards initiative

accordingly translations of the conformity declaration (certificate) from the language of producers into the language of the target groups at which the appeal is aimed. Such a quality declaration to insurance companies would e.g. show that the risk of accidents, environmental damage and possible social unrest is less for establishments certified by a specific system than for uncertified establishments, and accordingly appeal for giving such certified establishments preferential treatment. For banks, the quality declaration could mean how far compliance with standards helps reduce the economic risk of the certified establishment. The appeal to the banks would be to offer such producers better terms on loans. Forest certification is definitely with us for the foreseeable future. Given the short track record of the current certification systems - FSC, the pioneer, recently celebrated its tenth anniversary - we can expect that all the current systems will continue to develop and to change. Possibly, the greatest changes that can be expected will be in the field of implementation strategies for forest certification systems.

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References
APPANAH, S. / KLEINE, M. (2001): Auditing of Sustainable Forest Management A practical guide for developing local auditing systems based on ITTO's Criteria and Indicators. Bangkok. BAHARUDDIN, H.G. / SIMULA, M. (2000): Framework for an Auditing System for ITTO's Criteria and Indicators for Sustainable Forest Management. Draft ITTC XXIX/16, Yokohama BASS, S. (1998): Forest Certification - The Debate about Standards. Rural Development Forestry Network, network paper 23b, odi, London BURGER, D. / MAYER, C. (2003): Making Sustainable Development a Reality: the Role of Social and Ecological Standards. GTZ Programme Office for Social and Ecological Standards, Eschborn. EBA'A ATYI, R. / SIMULA, M. (2002): Forest certification: pending challenges for tropical timber. ITTO Technical Series No 19, Yokohama HEINEN, E. (1966): Das Zielsystem der Unternehmung. Wiesbaden ISO / IEC (1991): ISO / IEC Guide 2 - General terms and their definitions concerning standardisation and related activities, Geneva ITTO (1989): Criteria and Indicators for Sustainable Management of Natural Tropical Forests. Yokohama KAIMOWITZ, D. (2004): FSC Anniversary (presentation at the FSC tenth anniversary celebrations), Bonn NUSSBAUM, R. / JENNINGS, S. / GARFORTH, M. (2002): Assessing Forest Certification Schemes: a practical guide. ProForest, Oxford SCHULZ von THUN, F. (1981): Miteinander reden 1, Störungen und Klärungen, Allgemeine Psychologie der Kommunikation. Hamburg. VALLEJO, N. / HAUSELMANN, P. (2000): Institutional Requirements for Forest Certification. A Manual for Stakeholders. GTZ Forest Certification Project Working Paper 2, Eschborn. WATZLAWICK, P. / BEAVEN, J.H. (1969): Menschliche Kommunikation. Bern, Stuttgart

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Forest Stewardship Council
Heiko Liedeker / Michael Spencer

Forest Stewardship Council
Heiko Liedeker / Michael Spencer

More than 10 years after its birth in the wake of the Rio Earth Summit, the Forest Stewardship Council (FSC) remains a unique tool for driving and recognizing responsible forest management. Its leading role was reaffirmed in late 2004 when FSC was selected from a field of almost 500 non-government organizations as the inaugural recipient of the Alcan Sustainability Award. The selection process, conducted by the International Business Leaders Forum (IBLF), considered both how FSC operated and the contribution it was making to global sustainable development. The role of FSC as a driver and symbol for responsible forest management was also recognized in a series of independent reviews of forest certification programs during 2004. For instance, a review for the United Kingdom (UK) Government led to FSC being recognized as the preferred standard for procurement of forest products by government agencies in that country. Private buyers of forest products such as the Kingfisher Group has recognized FSC as a preferred symbol of responsible forest products for its Do-It-Yourself chains and the European forest campaign group, Fern, reported that FSC was „the most independent, rigorous and credible forest certification system”. FSC promotes environmentally appropriate, socially beneficial and economically viable management of the word’s forests. It does this by bringing interested people and groups together to develop standards for forest management based on FSC’s 10 Principle’s & Criteria for responsible forest management. Forest management standards are developed at the global, national and sub-national level. FSC accredits independent organizations who certify forest management units as complying with these standards and producers who use FSC certified wood. It helps customers recognize products that use FSC certified wood through a distinctive trademark attached to products. There are a number of factors that make FSC unique: It is independent of any one interest group in the forest sector - balance between different interests is protected in the FSC statutes; FSC standards development processes require broad stakeholder involvement to ensure balanced outcomes; it is a global, membership-based organization with significant voluntary and philanthropic contributions; FSC retains the endorsement of a broad range of environmental, social and industry stakeholders, and its standards are internationally recognized as the global benchmark. FSC puts people at the heart of its program. In fact, four of the FSC Principles relate to social factors. These cover areas such as legal and traditional rights of forest communities and indigenous peoples, equity, cultural identity, traditional forest stewardship and the social benefits of forest management as well as the rights of forest workers. In 2002, a social strategy was approved to promote the FSC vision of socially beneficial forestry, the first fruits of which were the introduction of streamlined procedures to improve access to certification for small and low intensity forest management operations. In addition, FSC has launched an initiative, through an

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How FSC works

extensive consultation process with social stakeholders and others, to ensure that forest communities’ and indigenous peoples’ land tenure and resource use rights are fully taken into account in the elaboration of national forest management standards and the application of FSC Principles & Criteria in the forest. FSC measures success across a number of criteria. By the end of January 2005, more than 51 million hectares of forest in 60 countries had been certified to FSC standards. To show the impact of certification on forest areas, FSC is developing a range of measures to track the environmental, social and economic benefits that flow from FSC certification. The strength of the system is illustrated by the 15 independent third party organizations who certify to FSC standards, the 4363 certificates in 76 countries that have been issued by these certifiers and the US$ 3-5 billion in FSC certified forest products sold each year. Organizational strength is documented by the growing number of National Initiatives, currently in 34 countries, over 600 members and the establishment during 2004 of a permanent FSC International Center in Bonn, Germany..

How FSC works
Governance FSC is an international association of members including representatives from environmental and social groups, the timber trade, the forestry profession, forest owners, indigenous peoples’ organizations, community forestry groups and forest product certification organizations. Governance is built on the principles of equal participation, democracy and equity. These principles are reflected in the FSC statutes and enacted in its triennial General Assembly, its Board of Directors and its standards development processes. The General Assembly of members is the highest decision-making body in FSC. It meets at least every three years to set broad policies and direction for the organization. Membership interests are organized in three chambers - environmental, social and economic. The purpose of the chamber structure is to maintain equal balance between different interests in decision making. Each chamber has one third of the voting power in the General Assembly. The chambers broadly comprise the following groups: The Social Chamber includes non-government organizations whose missions are to protect and enhance social, indigenous or community interests. For instance; indigenous people’s associations, unions, community groups and development organizations. Individual members may be from research, academic or technical institutions or people who have demonstrated a commitment to socially beneficial forestry. The Environment Chamber includes non-profit, non-government organizations whose missions are to protect and promote environmental values and interests of forests. It includes global as well as regional and local environmental groups. Individual members may be from research, academic or technical institutions or people with an active interest in environmentally viable forest management.

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The Economic Chamber includes organizations and individuals with a commercial interest in forests, forestry and forest products. Examples include forest owners, forest companies and other enterprises, employees, certification bodies, industry and trade associations, wholesalers, retailers, traders and consulting companies. Organizations and individuals from the ‘Global North’ and from the ‘Global South’ each have 50 per cent of the voting power within each chamber, in order to achieve a balance between economic ‘north’ and economic ‘south’ interests and to ensure recognition of the specific differences between southern and northern interests. Between General Assemblies, the FSC Board of Directors is accountable to the FSC members. It is made up of nine individuals, 3 from each chamber elected for a three year term. The Executive Director is appointed by the Board of Directors.

Standards
FSC develops international, national and sub-national standards in a transparent, independent and participatory way which balances the interests of all stakeholders, ensuring that no one interest dominates. These processes strive to involve all interested people and groups in the development of policies and standards. The Policy and Standards Unit of the FSC International Center develops international standards, international policies, guidance documents, discussion papers, and advice notes. Standards and policies are approved by the FSC Board of Directors and set out procedures and requirements to ensure that activities throughout the FSC systems are carried out in a consistent and fair manner. FSC is committed to complying with the International Social and Environmental Accreditation and Labelling (ISEAL) Alliance Code of Good Practice for setting social and environmental standards. Based on international requirements FSC National Initiatives develop national or sub-national forest management standards. This ensures these standards are locally relevant and comprehensively reflect the input of local stakeholders while still adhering to the 10 FSC Principles & Criteria for responsible forest management. By way of example, in 2004 FSC approved the forest management standard for the Canadian Boreal Forest. This standard covers a forest area of 325 million hectares stretching from the Yukon to Newfoundland an area that includes 80 percent of Canadian indigenous communities and provides 354 000 jobs. Consultation involved a mailing list of over 2000 individuals, organizations and enterprises and participation of 200 representatives in 15 committees and taskforces over a two year period. With broad support from industry, First Nations, environment and social groups it was an extremely successful national standards development process covering the largest territory in FSC history. Also in 2004, FSC approved a new standard for ensuring the chain of custody is protected for manufactured products. This process started in 2001 and involved a review and situation analysis, deliberation at the 2002 FSC General Assembly, global stakeholder meetings, a series of

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technical working groups, review committees and discussion papers. Pilot tests were conducted involving 31 companies in seven countries. Communication with stakeholders took place through FSC publications (25 articles) and external publications, a special web site and face to face discussions at formal and informal meetings involving hundreds of people around the world. Lastly the introduction of the new streamlined standards for forest certification for small and low intensity managed forests took effect in 2004, a culmination of two years’ work of analysis and consultation, supplemented by field testing the new procedures in locations in both the Global North and Global South. Certification bodies report that, thanks to the new procedures, costs savings of 40% or more have been achieved without the rigor of FSC certification being affected. For the first time this particularly offers a prospect for small operations in the South to access certification.

Accreditation
Growing interest in credible certification of responsible forestry, improved certification standards and increased demand generated by major retailers and public procurement has resulted in a sharp rise in demand for FSC accreditation services. In 2004, the number of accredited certification bodies rose to 15, with 4 new applications in process, and expressions of interest received from a further 8 organizations. The number of FSC certificates on issue grew by over 20 percent. FSC does not undertake certification itself. FSC supports an accreditation program using recognised international requirements (ISO/IEC Guide 17011), and accredits certification bodies for compliance with the requirements of ISO/IEC Guide 65 together with specific FSC guidance for implementation in the forest sector. Accredited certification bodies offer Forest Management (FM) certification against FSC standards to forest managers. To track certified wood products from the forest through processing, trade and manufacturing to retailers and consumers and to prevent misuse of the FSC Logo and trademark, accredited certification bodies offer certification of the Chain of Custody (CoC) to traders, manufacturers, retailers and others. FM certification requires forest managers to adhere to FSC standards for the management of their forests. These standards are developed, based on FSC’s Principles & Criteria, through consultation at the national and local level. Where national or sub-national standards have not been developed yet, certification bodies’ international standards are locally-adapted and applied. CoC certification applies to traders, manufacturers, retailers and others who trade, process or transform forest products. The main objective of CoC certification is to ensure that material from FSC certified forests is tracked through the production process. In this way, customers and consumers are assured that FSC certified and labeled products originate from certified forests. To market timber products from certified forests, FM certificate holders must also have CoC certification. The objective of the FSC accreditation process is to enable existing independent certification bodies working in the area of forest management and/or chain of custody verification, to certify 106

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to FSC standards and award the use of the FSC trademarks to forest management operations, timber traders, processors, manufacturers and retailers. The FSC accreditation process enables existing independent certification bodies by verifying, endorsing and regularly monitoring compliance of their respective certification standards, procedures and competence with FSC accreditation standards and requirements. This ensures that all accredited certification bodies achieve consistent outcomes when certifying forest management operations for conformity with FSC FM standards and timber traders, processors, manufacturers and retailers for conformity with FSC CoC standards. The accreditation process consists of several stages beginning with a request for information, a formal application, document evaluation, an office visit, field visits and an accreditation report to the FSC Board of Directors, which, based on the report takes the accreditation decision. The full accreditation process requires between 9 and 18 months. A list of FSC accredited and applicant certification bodies is available at the FSC web site. The certification audits conducted by accredited certification bodies require balancing social, economic and environmental values and interests. To ensure continued compliance with FSC requirements, the FSC Accreditation Program conducts regular surveillance audits involving both office and field visits to monitor performance of certification bodies. FSC provides monthly updates on certificates issued by accredited certification bodies based on reports submitted. The FSC Accreditation Program undertakes an annual review of all complaints received by each certification body. Complaints and disputes between stakeholders and certification bodies over certification processes and certificates issued are dealt with through a number of dispute resolution mechanisms. In addition to accrediting certification bodies, the FSC Accreditation Program accredits FSC incountry National Initiatives and national FSC forest stewardship standards. National Initiatives are the foundation of the global FSC global network. They are independent national organizations that develop based on the international FSC Principles & Criteria, national forest stewardship standards and promote FSC. Their accreditation by the FSC accreditation program ensures they operate consistently around the world and in line with FSC standards and requirements. At the end of 2004, 34 National Initiatives had been accredited and recognized as complying with FSC requirements. The third area addressed by the FSC Accreditation Program is the accreditation of national or sub-national forest stewardship standards. This is to ensure consistency and integrity of national or sub-national forest stewardship standards in different countries and regions around the world. Through accreditation FSC verifies that national or sub-national forest stewardship standards meet all requirements set by FSC to ensure the credibility of the FSC certification process. These requirements refer equally to both content of the standards and the processes used to develop the standards, including compliance with FSC Principles & Criteria, a balanced national and local consultative process and compatibility with local circumstances. Once a national forest stewardship standard has been accredited by FSC, all certification bodies must use this standard in their certification processes. At the end of 2004, FSC had accredited 22 national and sub-national forest stewardship standards.

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In order to enhance the integrity of its systems and processes, FSC has separated its accreditation program from its standards and policy development program. The objective is to ensure there can be no conflict of interest between the accreditation function and the policy and standard setting processes. Both, the FSC accreditation program and the FSC standards and policy setting program and their respective separation are in full compliance with accepted international norms.

Trademark
The consumer faces of the FSC system are its logo and trademarks. The widely recognized ‘check mark and tree’ logo as well as the words ‘Forest Stewardship Council’ and initials ‘FSC’ complete the connection between the consumer and the forest. Through the trademark, consumers are able to prefer and retailers are able recognize timber products from responsibly managed forests. The FSC trademark is used on some 20 000 products world-wide valued at between US$3 and 5 billion annually. In the UK retail sector alone, products carrying the FSC logo account for over US$2 billion in retail product sales annually. The rate of growth in demand for products carrying FSC trademarks has been strong with major retailers in Europe, North and South America and Asia highlighting their FSC product range. In the Netherlands, consumer awareness has grown following a series of market promotions with more than one in four consumers saying they think of FSC when looking for forest products in stores. FSC trademarks can only be used on products for which a valid FSC Chain of Custody certificate has been issued. The trademark labeling system requires that the certificate number be reproduced as part of the label so that the validity of the certificate can be checked. FSC trademarks cannot be used on products together with the logos, names or identifying marks of other forest certification schemes that do not comply with the 10 FSC Principles and Criteria for responsible forest management. Use of FSC trademarks and labels on products is authorized by FSC accredited certification bodies. The trademarks are also used for promotional purposes other than on particular products. Examples include leaflets, brochures, advertising material and web sites. These uses are strictly controlled by the FSC Trademark Manual as well as FSC standards for promotional use of its trademarks. Use for these purposes is authorized by FSC accredited certification bodies, FSC National Initiatives or FSC International Center. In general, FSC trademarks used for promotional purposes must avoid misleading consumers or the public as to the extent of certification, the scope of certification or the range of products covered by FSC certificates. During 2004, FSC simplified its label designs to provide a more consistent, easy to recognize label for consumers. The process emphasized the importance of adhering to ‘truth in labeling’ requirements. The FSC labels ensure consumers can easily recognize products that contain either 100 percent FSC certified content, or some combination of FSC certified content, controlled sources and/or post-consumer recycled. FSC also developed a label for 100 per cent post consumer recycled so as to provide a simplified offer for organizations and individuals

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following responsible purchasing policies. This initiative removed the problem of a perceived conflict between FSC and recycled products. At the same time FSC was enhancing the integrity of its labeling system, stronger efforts were being made to deal with fraud and forgery. As the value of the FSC system grows, so too does the temptation for unscrupulous or naive operators to ‘free ride’ on the FSC system. FSC stepped up its monitoring of trademark use in cooperation with environmental groups during 2004. As a result, some certificates were suspended and action was taken against companies that did not hold valid certificates but used the FSC trademarks to mislead consumers. At least one European wholesaler subsequently closed its operations. These efforts are receiving increasing priority. FSC has begun to develop strong partnerships with users of the FSC system in order to better promote both demand and supply of FSC certified products. In this regard, the trademark will continue to play an important part in generating recognition for responsible forestry and encouraging forest managers to change their practices in line with the FSC Principles & Criteria.

The future
While FSC has grown strongly during its first 10 years, and is currently experiencing its strongest growth to-date, the future is not expected to become easier. It is becoming increasingly clear that forest area certified is not a suitable measure for the performance of any credible forest certification scheme. It is the quality and scope of economic, environmental and social improvements to existing forest practices that distinguishes credible forest certification. FSC now has to prove its success as environmental, social and economic stakeholders in the global south and north demand more information on FSC’s impact than just hectares certified. Stakeholders have indicated they need to see outcomes relevant to their particular interests measured and evaluated. This is not only a measurement challenge, but requires that FSC together with its accredited certification bodies, certificate holders and partners creates new systems for comprehensively evaluating and measuring its economic, environmental and social impact. Resourcing such a global, inclusive, stakeholder driven program remains a major challenge. Furthermore, while forest certification during its first decade of success was quickly taken up by forest management operations in the global north and only to a lesser extent in the south, stakeholders have indicated they expect more significant outcomes over coming years in terms of certification and adoption of FSC standards in the important forested areas of the economic south. This will require considerable effort as forest management operations in these regions often do not have the capacity, the civil society framework or the legal infrastructure to proceed as quickly as their counterparts in the economic north. FSC needs to improve its relations with economic partners, environmental organizations as well as social, community and indigenous people’s groups to respond to these developments - especially in the economic south but also the economic north. These groups seek concrete benefits from forest certification, not solely economic and environmental ones but also in terms of protecting tenure and use rights, of controlling and managing their own natural resources and in achieving better working conditions. Some view forest management certification as a development tool which can deliver real benefits to improve quality of life. This presents a major challenge to the FSC as many of these

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stakeholder groups are dispersed and operating at the local level. They face technical and marketing obstacles which are very different from those of larger economic enterprises. Decentralization of FSC through a network of regional offices and strengthened FSC National Initiatives will be an important tool to address through the implementation of the FSC Social Strategy such need of local stakeholders, communities and indigenous peoples’ groups. The improvement of workers’ conditions through certification is yet another challenge. FSC accepts the various Conventions of the International Labour Organisation (ILO) covering workers’ rights and, while it does not seek in any way to supplant national labour legislation, it requires compliance with good working practices, including health and safety and the right to collective bargaining, as a way forward to fulfil its mission of socially beneficial forestry. Although FSC criteria relating to labour conditions only apply to forest management operations, FSC is aware of the advantages of extending social requirements throughout the chain of custody. There are, however, practical and conceptual difficulties involved in this and FSC intends to explore how it may most effectively be done. Last but not least an ongoing challenge is presented by competition with other forest certification schemes, which apply less demanding FM and CoC standards, lack the rigor of performance evaluation during certification, are less transparent and/or do not provide equal and equitable participation of environmental and social interests. Since FSC was established 10 years ago, more than 60 initiatives to develop forest certification schemes have been conceived. Few still exist and none of these schemes has proposed a more comprehensive system for forest stewardship certification involving higher standards of forest management, greater accountability or stronger inclusion of stakeholders. While the environment in which FSC operates is challenging, the future remains far more positive than negative. Interest in FSC has never been greater as reflected in the 10 year anniversary conference held during 2004. The rate of growth of certificates issued has been strong. Increasing commitment by governments to responsible sourcing policies is driving interest and demand in credible forest management standards, chain of custody processes and certification. The private sector is embracing more seriously corporate social responsibility which complements FSC´s drive to achieve tangible social benefits. Major retailers are increasing their involvement and engagement with FSC. As the volume of FSC products in the market grows, the bar is being raised to suppliers who are outside the FSC systems. There is growing opportunity for alignment between customers who want to adopt responsible sourcing strategies (as well as consumers who want to avoid products from irresponsibly managed sources) and companies who perceive consumer awareness of responsible forestry as a business opportunity. Some of the world’s major forest products companies are becoming involved in the FSC system in ways unprecedented in FSC history. FSC can provide an independent meeting place where commercial interests can find common ground with social and environmental interests. In doing so, all interests can benefit by working together on matters of mutual interest. In its first decade FSC has successfully moved from a vision to an idea, from an idea to examples on the ground, and from examples on the ground to a model proven worldwide. In its next decade FSC will evolve from a global model to mainstream reality setting the benchmark for economic, environmental and social performance of forest stewardship throughout the sector worldwide.

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Box 1

FSC Principles and Criteria for Forest Stewardship FSC forest management standards are based on the FSC Principles and Criteria for Forest Stewardship. Balanced groups of stakeholders adapt these international Principles and Criteria to national conditions by adding auditable indicators, producing a forest management standard for FSC certification in that country or region of the country. It is this process that enables FSC to promote locally appropriate and globally respected forest management. Set out below are the 10 Principles. The full Principles and Criteria are available from the FSC International web site www.fsc.org. Principle 1: Compliance with laws and FSC Principles Forest management shall respect all applicable laws of the country in which they occur, and international treaties and agreements to which the country is a signatory, and comply with all FSC Principles and Criteria. Principle 2: Tenure and use rights and responsibilities Long-term tenure and use rights to the land and forest resources shall be clearly defined, documented and legally established. Principle 3: Indigenous peoples' rights The legal and customary rights of indigenous peoples to own, use and manage their lands, territories, and resources shall be recognized and respected. Principle 4: Community relations and workers’ rights Forest management operations shall maintain or enhance the long-term social and economic wellbeing of forest workers and local communities. Principle 5: Benefits from the forest Forest management operations shall encourage the efficient use of the forest's multiple products and services to ensure economic viability and a wide range of environmental and social benefits. Principle 6: Environmental impact Forest management shall conserve biological diversity and its associated values, water resources, soils, and unique and fragile ecosystems and landscapes, and, by so doing, maintain the ecological functions and the integrity of the forest.

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Principle 7: Management plan A management plan -- appropriate to the scale and intensity of the operations -- shall be written, implemented, and kept up to date. The long term objectives of management, and the means of achieving them, shall be clearly stated. Principle 8: Monitoring and assessment Monitoring shall be conducted -- appropriate to the scale and intensity of forest management -- to assess the condition of the forest, yields of forest products, chain of custody, management activities and their social and environmental impacts. Principle 9: Maintenance of high conservation value forests Management activities in high conservation value forests shall maintain or enhance the attributes which define such forests. Decisions regarding high conservation value forests shall always be considered in the context of a precautionary approach. Principle 10: Plantations Plantations shall be planned and managed in accordance with Principles and Criteria 1 - 9, and Principle 10 and its Criteria. While plantations can provide an array of social and economic benefits, and can contribute to satisfying the world's needs for forest products, they should complement the management of, reduce pressures on, and promote the restoration and conservation of natural forests.

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The PEFC Council and sustainable forest management
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Introduction
The PEFC Council (Programme for the Endorsement of Forest Certification schemes) is an independent, non-profit, non-governmental organisation, which provides a framework for the development and assessment of independent third party certification of environmentally appropriate, socially beneficial and economically viable management of forests. The PEFC provides an assurance mechanism to purchasers of wood and paper products that they are promoting the sustainable management of forests. This is achieved through nationally or regionally multi-stakeholder developed, independent forest certification systems, based on the criteria, indicators and operational level guidelines developed by the intergovernmental processes promoting sustainable forest management, following the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro in 1992. These on-going intergovernmental processes are supported by 149 governments in the world covering 85% of the world's forest area. In addition the PEFC provides a framework and global umbrella for the assessment of and mutual recognition of national forest certification schemes developed in an open and transparent process with a balanced multi-stakeholder representation.

Background
The PEFC Council was formed in June 1999 as a Pan European initiative with representative schemes from eleven countries. With PEFC’s rapid development into a global umbrella organization for the assessment and recognition of forest certification systems the acronym PEFC was changed in 2003 from the former „Pan European Forest Certification” to mean the „Programme for the Endorsement of Forest Certification schemes”. PEFC today has in its membership 31 independent national forest certification systems from six continents of which 18 to date have been through a rigorous assessment process for endorsement by the PEFC Council involving public consultation and the use of independent consultants, whose assessments are publicly available to provide the assessments on which mutual recognition decisions are taken by the members. To date these 18 schemes account for over 122 million hectares of certified forests worldwide producing millions of tonnes of certified timber to the market-place making PEFC the world's largest certification system. The non-endorsed members’ systems are at various stages of development and are working towards mutual recognition under the PEFC processes.

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Beginning 2005 the following systems are members - both endorsed (*) and not endorsed yet of the PEFC Council: Figure 1: National certification systems in the PEFC Council (April 2005)
AFS Australian Forestry Standard Ltd.* PEFC Austria* PEFC Belgium* CSA Canadian Standards Association* CERFLOR Brazil CertforChile* PEFC Czech Republic* PEFC Denmark* Estonian Forest Certification Council FFCS Finish Forest Certification Council* PEFC France* PAFC Pan-African Forest Certification Gabon PEFC Germany* PEFC Council of Ireland PEFC Italia* PEFC Latvia Council* PEFC Lietuva PEFC Luxembourg MTCC Malaysian Timber Certification Council PEFC Norway* PEFC Polska Portuguese Forestry Sector Council* National Voluntary Forest Certification Council in Russia RSFC Slovak Forest Certification Association Institute of Forest Certification Slovenia PEFC España* Swedish PEFC Co-operative* PEFC Switzerland and HWK - (Schweizerische Holzwirtschaftskonferenz) Zertifizierungsstelle* PEFC UK Ltd.* ATFS American Tree Farm System (USA) SFI Sustainable Forestry Initiative (USA and Canada)

The members of the PEFC Council, the National Governing Bodies, which represent stakeholders at national level, take decisions in a democratic way. Similar to other decision-making processes of international institutions like e.g. the United Nations, the PEFC Council members have one to three votes each in the PEFC General Assembly, in this case based on the national annual timber harvest according to Food and Agriculture Organisation (FAO) statistics. International organisations supporting PEFC objectives can on application become Extraordinary Members of the PEFC Council with an observer status. Currently international associations from the following sectors have chosen this form of membership: saw milling and panel board industry, woodland owners, paper industry, landowners, forest contractors, timber traders, community forests, forest managers and regional foresters. The majority of stakeholders however work in and support the PEFC system by membership in the National Governing Bodies of the national certification systems, among them a wide range of national and local environmental non-governmental organisations (ENGOs) actively involved in the PEFC system.

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Figure 2: Structure of the PEFC Council

Structure
Finland Estonia Denmark Czech Repulic Chile Canada Belgium Brazil Austria Australia USA

France Germany Gabon Ireland Italy Latvia Lithuania BOARD OF DIRECTORS Administration and Management under the PEFCC (3+10 members) SECRETARIAT GENERAL Every day running of PEFCC

United Kingdom Switzerland GENERAL ASSEMBLY Highest decision-making authority under the PEFCC MEMBERS National Governing Bodies are members of the PEFCC Verious Stakeholders EXTRAORDINARY MEMBERS

Lithuania Luxembourg Malaysia Norway Portugal Poland Russia Spain Slovakia Slovenia Sweden

The PEFC Board of Directors has the task to prepare the decisions of the PEFC General Assembly, the every day management of the PEFC Council is undertaken by the PEFC Secretariat General The PEFC Council has the following main activities: Definition of minimum requirements-framework for development of national or sub-national forest certification schemes. Assessment and endorsement (mutual recognition) of national or sub-national forest certification schemes. Administration of PEFC Logo usage rights. Promotion of PEFC recognised forest certification and of sustainable forest management. The following eighteen PEFC endorsed systems (as of April 2005) account for more than 122 million hectares of certified forests (Figure 3) producing millions of tonnes of certified timber to the market place and this figure is increasing rapidly.

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Figure 3: Summary of certified hectares of PEFCC endorsed forest certification schemes (including Japan and the Netherlands for chain of custody certification) (April 2005)

PEFC/Countries Australia Austria Belgium Canada Chile Czech Republic Denmark Finland France Germany Italy Japan Latvia Netherlands Norway Portugal Spain Sweden Switzerland UK Total

Endorsed certified forest area (ha) 1 092 678 3 924 000 230 528 63 700 000 1 527 180 1 935 228 13 641 22 355 596 3 553 043 6 989 651 356 053 0 31 364 0 9 231 700 0 417 502 6 412 149 316 850 9 125 122 096 291

Number of Chain of Custody certificates 1 272 16 0 0 198 4 82 673 496 13 5 14 2 5 0 23 58 157 71 2 090

The Brazilian Program of Forest Certification, Cerflor; PEFC Estonia; PEFC Lithuania; PEFC Luxembourg and PEFC Slovak Republic are currently undergoing the PEFC assessment process. Other certification systems are preparing for PEFC membership and/or submission of their application for endorsement.

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PEFC Council requirements
Requirements of the PEFC certification are laid down in the PEFC Technical Documentation approved by the members of the PEFC General Assembly. The PEFC Technical Documentation comprises the Technical Document, Annexes and Guidelines. It includes the normative documentation for the development, elaboration and implementation of national or sub-national forest certification systems and procedures for their endorsement within PEFC. The general part of the document presents the framework for the documentation and the normative requirements are listed in the respective Annexes and Guidelines (PEFC 2005). The Technical Document defines the common elements and requirements, which have to be met by certification schemes wishing to take part in the PEFC framework and use the trademark of the PEFC Council. These minimum requirements will help to promote sustainable forest management and assure consumers that products with a PEFC label come from or promote sustainably managed forests. In order to ensure an appropriate degree of equivalency and comparability, common threshold requirements are defined for the following aspects of forest certification: scheme development, certification criteria, scheme implementation, audit and certification procedures, chain of custody certification, PEFC Council endorsement and mutual recognition procedures. Annex 1 (Terms and Definitions) defines the basic and fundamental terms relating to forest certification, as they apply for the preparation and use of forest certification standards and for mutual understanding in the international context. Annex 2 (Rules for Standard Setting) based on International Organization for Standardization (ISO) Guide 59 (Code of Good Practice for Standard Setting) provides the rules for the standard setting process that a certification scheme applying for PEFC endorsement and mutual recognition shall fulfil. The rules guide balanced standard setting processes and scheme development at national or sub-national levels. The document covers standard setting procedures for certification of sustainable forest management and Chain of Custody certification, ensuring transparency, balanced representation and consensus in the process. Annex 3 (Basis for National Certification Schemes and their Implementation) defines the minimum requirements a scheme shall meet, rules for its implementation and scheme documentation required for forest and Chain of Custody certification.

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Figure 4: PEFC technical document, annexes and guidelines1

PEFC Council Statutes

Reference Documents Describe referece base of PEFC (see footnote for acronyms) a b c d Memorandum PEOLG and ITTO/ATO PIC C&I for SFM defined by MCPFE, Montreal etc. International ILO Conventions - Core ILO Conventions - Other Conventions Documents Guidelines provide details implementation of normative issues presented in the resprective annex

Normative Annexes include the normative requirements

Technical Document Framework on the elements of the PEFC Scheme

Annex 1 Terms and Definitions Annex 2: Rules for Standard Setting Annex 3: Basis for Certification Schemes and their Implementation Annex 4: Chain of Custody of Forest Based Products Requirements

• Issuance of PEFC logo

usage licenses by the PEFC Council license

• Application of PEFC logo • PEFC Minimum • etc.

Requirements Checklist

Annex 5: PEFC Logo Usage Rules Annex 6: Certification and Accreditation Procedures Annex 7: Endorsement of National Schemes and their Revision

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Annex 4 (Chain of Custody of Forest Based Products - Requirements) covers the international Chain of Custody for tracking of wood flows. This Chain of Custody standard has been developed so that it can be endorsed and utilised by any forest certification or labelling system, which includes Chain of Custody rules, for the purposes of using declarations and/or labels referring to the origin of the raw material in the forest based products. Annex 5 (PEFC Logo Use rules) sets up regulations for PEFC logo use to assure the protection of ownership rights of the PEFC Logo and transparent and credible communication of claims connected with PEFC certification and provides strict requirements for the correct usage of the PEFC logo and claims. The Annex establishes the rules which specify who the owner and governor of the logo is, on who has the right to use the PEFC logo and trademark, on what kind of claims are included in the logo, for what kind of on- and off-product communication the logo can be used for, on what the specifications are as regards the reproduction of the PEFC logo in printed and published form. Annex 6 (Certification and Accreditation procedures) defines the certification and accreditation procedures for forest and chain of custody certifications adopted and considered credible and reliable by the PEFC Council. Certifications for forest management and chain of custody recognised by the PEFC Council, rely on international certification and accreditation procedures as defined in the documentation of the International Organisation for Standardization (ISO) and as well as in the International Accreditation Forum (IAF). Annex 7 (Endorsement and Mutual Recognition of National Schemes and their Revision) describes the procedures for the endorsement and mutual recognition process of national or sub-national forest certification systems against the PEFC requirements. The endorsement of a scheme means that the members of the PEFC Council have determined that the scheme meets the requirements of the PEFC Council. The voting procedures ensure that each scheme votes on each other, based on the independent consultant’s report (publicly available) which guides the decision making. Therefore the schemes mutually recognise each other under the PEFC Council mutual recognition umbrella. The objectives of the Guidelines are (i) to assist bodies, which develop or revise their forest certification schemes and prepare an application for PEFC Council endorsement, and (ii) to facilitate the assessment of the compliance of a national or sub-national forest certification scheme against the PEFC Council requirements carried out by the PEFC Council as a part of its endorsement and mutual recognition process (Annex 7 Endorsement and Mutual Recognition of National Schemes and their Revision). The Guidelines are a compendium with several checklists covering several hundred different aspects of forest certification. 119

Forest management standards

Forest management standards
For the forest certification purposes, each country develops in a broad multi-stakeholder process its own national (or regional) standard for sustainable forest management based on the Ministerial Conference on the Protection of Forests in Europe (MCPFE) guidelines or other intergovernmental processes promoting sustainable forest management (SFM), the national laws and regulations and the core International Labour Organisation (ILO) conventions and other international conventions ratified by the country.

Figure 5: Basic requirements for PEFC endorsed certification systems

Inter-governmental processes for SFM (Pan European C&I Montreal Process, etc.) National laws, regulations, policies, programmes

PEOLG
Reference base National / regional requirements for certification criteria

Review of criteria

International Conventions

Core ILO Conventions

Criteria and indicators for SFM Sustainable forest management (SFM) has been, since the UNCED in Rio in 1992, a leading concept in international deliberations and work. The result today is a broad consensus on principles, guidelines, criteria and indicators for SFM on international governmental level. One such process is the MCPFE, an ongoing process in which thousands of experts from a very wide range of stakeholder groups have been involved. At its conference held in Lisbon in 1998, MCPFE declared its commitment to endorsing the voluntary Pan European Operational Level Guidelines for Sustainable Forest Management (PEOLG), which had been previously adopted by an expert level preparatory meeting. The guidelines form a common framework of recommendations that can be used on a voluntary basis and as a complement to national and or regional instruments to further promote sustainable forest management at the field level, on forest areas. Potential uses of the guidelines as stated by the ministers include its use as an indicative reference for the establishment of standards for forest certification schemes.

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Figure 6: Criteria and indicators for SFM

Criteria and example indicators for sustainable forest management

General Capacity

Growing stock Carbon storage

Balance between growth & removal

Forest area under management

Land use & forest area Forest resources & global carbon cycles Defoliation Productive functions of forests

Non-wood products

Air pollutiants

Cultural values Sustainable Fore st Management

Public participation & awareness Socio economic aspects Research and education

Different damages

Forest health & vitality

Nutrient balance & acidity Productive functions of forests Gerneral protection Biological diversity

Employment

Recreational services Significance of forest sector

Water conservation

Threatened species

General protection Rare Species

Soil erosion

Biodiversity in production forests

Source: Ministeral conference on the protection of forests in Europe

Parallel to the MCPFE process, seven other similar intergovernmental processes are currently ongoing worldwide, which can serve as a basis for the development of national forest certification systems. These are the: Montreal process, Near East Process, Lepaterique Process, Regional Initiative of Dry Forests in Asia, International Tropical Timber Organization (ITTO) Criteria and Indicators for Sustainable Management of Natural Tropical Forests, Criteria and Indicators for Sustainable Management in Dry-zone Africa, Tarapoto Proposal: Criteria and Indicators for the Sustainable Management of Amazonian Forests, 121

Forest management standards

African Timber Organization Principles, Criteria and Indicators for Sustainable Management of Natural Forests. Figure 7: Intergovernmental processes for SFM

Countries participating in the 8 intergovernmental processes for SFM criteria & indicators

ATO

Montreal

ITTO

Dry Zone Africa

Helsinki

Tarapoto

Lepateriqué

North Africa & Near East

Montreal / Helsinki

ATO / ITTO

It is important to note that thousands of experts from a very wide range of stakeholder groups have been involved in the development of these political processes and that they are ongoing. This means that over time as society’s values etc. change and are expressed through the intergovernmental processes, so the PEFC will reflect this. Many countries have, and are developing, their national forest certification schemes building on these all-inclusive political processes, which continue to evolve. Depending on their developing stage, the processes have resulted in Criteria, Indicators or Operational Level Guidelines. The African Timber Organisation (ATO) and ITTO processes

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have resulted in the ATO/ITTO principles, criteria and indicators for the sustainable management of African natural tropical forests. They have been recognised by the PEFC Council as basis for the development of national forest certification systems for the African countries. The Criteria and Indicators of the MCPFE are specified by the Pan European Operational Level Guidelines (PEOLG) which are as follows: Pan European Operational Level Guidelines (PEOLG) The Annex 2 of the Ministerial Resolution L2 states: „The Operational Level Guidelines form a common framework of recommendations that can be used on a voluntary basis and as a complement to national and/or regional instruments to further promote sustainable forest management at the field level, on forest areas in Europe. Adopted at the Fifth Expert Level Preparatory Meeting of the Lisbon Conference on the Protection of Forests in Europe, 27-29 April 1998, Geneva Switzerland.” All forest certification standards applying for endorsement must fully comply with the PEOLG requirements. The PEOLG are also used as the assessment threshold for schemes outside Europe if the relevant intergovernmental process has not developed its own operational level guidelines. Criterion 1. Maintenance and appropriate enhancement of forest resources and their contribution to global carbon cycles 1.1 Guidelines for forest management planning a. Forest management planning should aim to maintain or increase forest and other wooded area, and enhance the quality of the economic, ecological, cultural and social values of forest resources, including soil and water. This should be done by making full use of related services such as land-use planning and nature conservation. Inventory and mapping of forest resources should be established and maintained, adequate to the local and national conditions, and in correspondence with the topics described in these Guidelines. Management plans or their equivalents, appropriate to the size and use of the forest area, should be elaborated and periodically updated. They should be based on legislation as well as existing land use plans, and adequately cover the forest resources. Monitoring of the forest resources and evaluation of their management should be periodically performed, and their results should be fed back into the planning process.

b.

c.

d.

1.2

Guidelines for forest management practices a. Forest management practices should safeguard the quantity and quality of the forest resources in the medium and long term by balancing harvesting and growth rates, and by preferring techniques that minimise direct or indirect damage to forest, soil or water resources.

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b.

Appropriate silvicultural measures should be taken to maintain the growing stock of resources at - or bring to - a level that is economically, ecologically and socially desirable. Conversion of abandoned agricultural and treeless land into forest land should be taken into consideration, whenever it can add economic, ecological, social and/or cultural value.

c.

Criterion 2. Maintenance of forest ecosystem health and vitality 2.1 Guidelines for forest management planning a. Forest management planning should aim to maintain and increase the health and vitality of forest ecosystems and to rehabilitate degraded forest ecosystems, whenever this is possible by silvicultural means. Health and vitality of forests should be periodically monitored, especially key biotic and abiotic factors that potentially affect health and vitality of forest ecosystems, such as pests, diseases, overgrazing and overstocking, fire, and damage caused by climatic factors, air pollutants or by forest management operations. Forest management plans or their equivalents should specify ways and means to minimise the risk of degradation of and damages to forest ecosystems. Forest management planning should make use of those policy instruments set up to support these activities.

b.

c.

2.2

Guidelines for forest management practices a. Forest management practices should make best use of natural structures and processes and use preventive biological measures wherever and as far as economically feasible to maintain and enhance the health and vitality of forests. Adequate genetic, species and structural diversity should be encouraged and/or maintained to enhance stability, vitality and resistance capacity of the forests to adverse environmental factors and strengthen natural regulation mechanisms. Appropriate forest management practices such as reforestation and afforestation with tree species and provenances that are suited to the site conditions or the use of tending, harvesting and transport techniques that minimise tree and/or soil damages should be applied. The spillage of oil through forest management operations or the indiscriminate disposal of waste on forest land should be strictly avoided. The use of pesticides and herbicides should be minimised, taking into account appropriate silvicultural alternatives and other biological measures. In case fertilisers are used they should be applied in a controlled manner and with due consideration to the environment.

b.

c. d.

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Criterion 3. Maintenance and encouragement of productive functions of forests (wood and non-wood) 3.1 Guidelines for forest management planning a. Forest management planning should aim to maintain the capability of forests to produce a range of wood and non-wood forest products and services on a sustainable basis. Forest management planning should aim to achieve sound economic performance taking into account possibilities for new markets and economic activities in connection with all relevant goods and services of forests. Forest management plans or their equivalents should take into account the different uses or functions of the managed forest area. Forest management planning should make use of those policy instruments set up to support the production of merchantable and non-merchantable forest goods and services.

b.

c.

3.2

Guidelines for forest management practices a. Forest management practices should be ensured in quality with a view to maintain and improve the forest resources and to encourage a diversified output of goods and services over the long term. Regeneration, tending and harvesting operations should be carried out in time, and in a way that do not reduce the productive capacity of the site, for example by avoiding damage to retained stands and trees as well as to the forest soil, and by using appropriate systems. Harvesting levels of both wood and non-wood forest products should not exceed a rate that can be sustained in the long term, and optimum use should be made of the harvested forest products, with due regard to nutrient offtake. Adequate infrastructure, such as roads, skid tracks or bridges should be planned, established and maintained to ensure efficient delivery of goods and services while at the same time minimising negative impacts on the environment.

b.

c.

d.

Criterion 4. Maintenance, conservation and appropriate enhancement of biological diversity in forest ecosystems 4.1 Guidelines for forest management planning a. Forest management planning should aim to maintain, conserve and enhance biodiversity on ecosystem, species and genetic level and, where appropriate, diversity at landscape level. Forest management planning and terrestrial inventory and mapping of forest resources should include ecologically important forest biotopes, taking into account protected, rare, sensitive or representative forest ecosystems such as riparian areas and wetland biotopes, areas containing endemic species and habitats of threatened species, as defined in recognised reference lists, as well as endangered or protected genetic in situ resources.

b.

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4.2

Guidelines for forest management practices a. Natural regeneration should be preferred, provided that the conditions are adequate to ensure the quantity and quality of the forests resources and that the existing provenance is of sufficient quality for the site. For reforestation and afforestation, origins of native species and local provenances that are well adapted to site conditions should be preferred, where appropriate. Only those introduced species, provenances or varieties should be used whose impacts on the ecosystem and on the genetic integrity of native species and local provenances have been evaluated, and if negative impacts can be avoided or minimised. Forest management practices should, where appropriate, promote a diversity of both horizontal and vertical structures such as uneven-aged stands and the diversity of species such as mixed stands. Where appropriate, the practices should also aim to maintain and restore landscape diversity. Traditional management systems that have created valuable ecosystems, such as coppice, on appropriate sites should be supported, when economically feasible. Tending and harvesting operations should be conducted in a way that do not cause lasting damage to ecosystems. Wherever possible, practical measures should be taken to improve or maintain biological diversity. Infrastructure should be planned and constructed in a way that minimises damage to ecosystems, especially to rare, sensitive or representative ecosystems and genetic reserves, and that takes threatened or other key species - in particular their migration patterns - into consideration. With due regard to management objectives, measures should be taken to balance the pressure of animal populations and grazing on forest regeneration and growth as well as on biodiversity. Standing and fallen dead wood, hollow trees, old groves and special rare tree species should be left in quantities and distribution necessary to safeguard biological diversity, taking into account the potential effect on health and stability of forests and on surrounding ecosystems. Special key biotopes in the forest such as water sources, wetlands, rocky outcrops and ravines should be protected or, where appropriate, restored when damaged by forest practices.

b.

c.

d. e.

f.

g.

h.

i.

Criterion 5. Maintenance and appropriate enhancement of protective functions in forest management (notably soil and water) 5.1 Guidelines for forest management planning a. Forest management planning should aim to maintain and enhance protective functions of forests for society, such as protection of infrastructure, protection from soil erosion, protection of water resources and from adverse impacts of water such as floods or avalanches.

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b.

Areas that fulfil specific and recognised protective functions for society should be registered and mapped, and forest management plans or their equivalents should take full account of these areas.

5.2

Guidelines for forest management practices a. Special care should be given to silvicultural operations on sensitive soils and erosionprone areas as well as on areas where operations might lead to excessive erosion of soil into watercourses. Inappropriate techniques such as deep soil tillage and use of unsuitable machinery should be avoided on such areas. Special measures to minimize the pressure of animal population on forests should be taken. Special care should be given to forest management practices on forest areas with water protection function to avoid adverse effects on the quality and quantity of water resources. Inappropriate use of chemicals or other harmful substances or inappropriate silvicultural practices influencing water quality in a harmful way should be avoided. Construction of roads, bridges and other infrastructure should be carried out in a manner that minimises bare soil exposure, avoids the introduction of soil into watercourses and that preserve the natural level and function of water courses and river beds. Proper road drainage facilities should be installed and maintained.

b.

c.

Criterion 6. Maintenance of other socio-economic functions and conditions 6.1 Guidelines for forest management planning a. Forest management planning should aim to respect the multiple functions of forests to society, have due regard to the role of forestry in rural development, and especially consider new opportunities for employment in connection with the socio-economic functions of forests. Property rights and land tenure arrangements should be clearly defined, documented and established for the relevant forest area. Likewise, legal, customary and traditional rights related to the forest land should be clarified, recognised and respected. Adequate public access to forests for the purpose of recreation should be provided taking into account the respect for ownership rights and the rights of others, the effects on forest resources and ecosystems, as well as the compatibility with other functions of the forest. Sites with recognised specific historical, cultural or spiritual significance should be protected or managed in a way that takes due regard of the significance of the site. Forest managers, contractors, employees and forest owners should be provided with sufficient information and encouraged to keep up to date through continuous training in relation to sustainable forest management.

b.

c.

d. e.

6.2

Guidelines for forest management practices a. Forest management practices should make the best use of local forest related experience and knowledge, such as of local communities, forest owners, NGOs and local people.

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Forest management standards

b. c.

Working conditions should be safe, and guidance and training in safe working practice should be provided. Forest management operations should take into account all socio-economic functions, especially the recreational function and aesthetic values of forests by maintaining for example varied forest structures, and by encouraging attractive trees, groves and other features such as colours, flowers and fruits. This should be done, however, in a way and to an extent that does not lead to serious negative effects on forest resources, and forest land.

National laws, regulations, policies, programmes, international conventions In addition to national laws, regulations, policies and programmes for forest management, international conventions form part of the national standard setting processes including the: Convention on Biological Diversity, Kyoto Protocol, Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the Biosafety Protocol. The requirements agreed upon in the conventions, even if not ratified by the country, will be respected in order to obtain PEFC Council endorsement. The forest management performance standards of national forest certification schemes, which apply for endorsement and mutual recognition with the PEFC framework, shall also respect the Core Conventions of the International Labour Organisation (ILO). The core ILO Conventions are as follows: No 29: Forced Labour, 1930 No 87: Freedom of Associations and Protection of the Right to Organise, 1948 No 98: Right to Organise and Collective Bargaining, 1949 No 100: Equal Remuneration, 1951 No 105: Abolition of Forced Labour, 1957 No 111: Discrimination (Employment and Occupation), 1958 No 138: Minimum Age for Admission to Employment, 1973 In addition, the ILO Code of Practice on Safety and Health in Forestry Work is recognised as a helpful document, which is recommended to be considered when developing national and regional certification criteria. Schemes development In summary, the PEFC national certification system development follows the following pattern: Stakeholders in each country develop the national (or regional) independent forest certification 128

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Ben Gunneberg / Oliver Scholz

standard and scheme based on the MCPFE operational level guidelines or other intergovernmental processes promoting SFM, the national laws and regulations and the core ILO conventions and others ratified by the country in question. All relevant interested parties are invited to participate in this open and transparent process. The participation of parties should provide for balanced representation of interest categories, represent the different aspects of sustainable forest management and include, e.g. forest owners, forest industry, environmental and social non-governmental organisations, trade unions, retailers and other relevant organisations at national or sub-national level. The PEFC requires that the formal approval of the standard is based on evidence of consensus according to ISO Guide 2. Schemes participating in the PEFC Council have to fulfil requirements, such as an open and transparent process in the preparation and revision of the documentation, periodic review, a consultation process and following the principle of continuous improvement. Figure 8: Tasks of different bodies in PEFC certification

PEFC certification process - a summary Separate bodies National Forest Certification Scheme Action Standard Setting Result Certification Standard/Scheme Forest Certification Certification Body Auditing Chain of Custody Certificate National Accreditation Body Assessment of Certification Body Competence Licencing of Logo Usage Assessment of Certification Scheme Confirmation on Accreditationof Certification Body PEFC Logo on Products Mutual Recognition

PEFC Council

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PEFC recognition and endorsement

Certification
PEFC relies on the credible implementation of a scheme by following internationally recognised certification processes i.e. the use of independent certifiers accredited by national accreditation organisations to certify to the scheme or chain of custody. They are completely independent of PEFC and the certification system owners and have to follow the strict rules required by their processes to maintain the credibility and quality of their work. PEFC offers three forms of certification, individual certification, group certification and regional certification (details see Annex 3 PEFC Technical Documentation). Re-certification takes place every 5 years (maximum) with annual surveillance audits after an audit, which covers both documentation review as well as on-site inspections. The applied certification procedures fulfil or are compatible with the requirements of the International Organization for Standardization (ISO Guides 62, 65, 66).

Accreditation
There are governmental or semi-governmental institutions, like the Finnish Accreditation Service (FINAS), the United Kingdom Accreditation Service (UKAS), the Swedish Board for Accreditation and Conformity Assessment (SWEDAC), who have expertise from other sectors with certification, ensure and control the qualification of certifiers and issue the necessary licences to certifiers to certify. These national accreditation organisations are members of the International Accreditation Forum (IAF), the world association of conformity assessment accreditation bodies in the fields of management systems, products, services, personnel and other similar programmes of conformity assessment. The purpose of IAF is to ensure that its accreditation body members only accredit competent certifiers and to establish mutual recognition arrangements, known as Multilateral Recognition Arrangements (MLA), between its members. Thus the internal and external quality assurance of both certifiers and accreditors are guaranteed. Details of the IAF are available at www.iaf.nu. PEFC Council has committed itself to support the relevant objectives and obligations of IAF and to abide by the requirements of the IAF Bylaws when it became an associate member of the International Accreditation Forum in January 2004. Both accreditation and certification bodies have documented procedures for complaints, disputes and appeals open to all interested parties and individuals.

PEFC recognition and endorsement
Forest certification schemes seeking to be endorsed by the PEFC Council must be developed in an open and transparent way through a multi-stakeholder process.

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National forest certification schemes that seek to be recognised by the PEFC Council and to have access to the PEFC logo must fulfil all the PEFC requirements for forest certification schemes defined in the PEFC Council Technical Document and relevant Annexes. The assessment process is carried out by an independent consultant and includes a public consultation period. The consultant assesses whether the system meets the several hundred requirements of PEFC Council. The assessment report of the independent consultant on any scheme seeking PEFC endorsement is made publicly available on the PEFC Council web page. Based on this independent assessment and their own experiences, members and their stakeholders are able to discuss the applicant scheme at a local level before submitting their final vote on whether to accept an applicant scheme or not. In other words, in addition to an objective independent analysis, this mutual recognition process also provides for the ultimate decisions to be made by the national forums and their stakeholders. Stakeholder groups are expected to participate at national level, but in addition international groups (Extraordinary Members) participate in debates as observers. The endorsed forest certification systems must be reviewed at least every 5 years to incorporate new experiences and scientific knowledge into the standards. The revised certification system has to be submitted for re-endorsement. Figure 9: PEFC endorsement process

PEFC Council Endorsement Process Body Scheme representative/ PEFC member PEFCC Board of Directors Action Application for the scheme endorsement Appointment of independent consultant Public participation

Independent consultant

Scheme assessment

All interested parties and general public are invited to participate in the scheme assessment and their comments can be sent to the independent consultant

PEFCC Panel of Experts

Evaluation of the assessment report

PEFCC Board of Directors

Recommendation on the scheme approval

PEFCC General Assembly

Decision on the scheme endorsement

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International chain of custody

Product labelling
The PEFC Logo is a communication tool that companies can use on their timber, paper and wood-based products to inform their customer base and final consumers about the origin of wood raw material It allows customers and the general public to make a positive choice for sustainable forest management. Companies, who have a valid forest management certificate or a chain of custody certificate issued by the certifier on behalf of the PEFC Council, can use the PEFC Logo optionally on or off product (e.g. promotional material etc). The PEFC Logo usage license number must be used together with the Logo. Details on PEFC Logo usage are described in Annex 5 of the PEFC Technical Document. PEFC has launched a fully interactive database on the PEFC website where anyone can search and find information on any certificate or logo user relating to any forest or chain of custody certification in every PEFC-endorsed certification system. Figure 10: PEFC logo and market claims Input-output and min. % systems Physical Separation

Promoting Sustainable Forest Management For more info: www.pefc.org

From Sustainably Managed Forests For more info: www.pefc.org

International chain of custody
The PEFC international Chain-of-Custody (see Annex 4, PEFC Technical Document), to track wood flows from certified forests to final consumers, can be used by all forest certification systems worldwide, both within and outside the PEFC system, to verify the origin of procured material Instead of having different national Chain-of-Custody standards for national systems, PEFC provides one single common international Chain-of-Custody standard valid in all countries. This holistic approach provides consistency and efficiencies for international companies operating in more than one country. Its structure allows the international Chain-of-Custody standard to be easily implemented into companies’ quality and environmental management systems e.g. the ISO 9001 and 14001

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standards. Group Chain-of-Custody certification is a cost effective solution available to small companies. The PEFC international Chain-of-Custody enables wood processing companies to procure certified material from different countries using different national certification systems or labels and to control the wood flow with only one Chain of Custody system. Once the percentage of certified material coming from PEFC endorsed schemes reaches the required threshold of 70 %, companies can market the resulting products under the PEFC logo. Stringent verification requirements for uncertified wood are mandatory in the Chain of Custody. Companies that procure uncertified material from countries or regions with a higher risk of unsustainable sources have to implement independent second or third party verification safeguards assuring the exclusion of illegally logged wood.

Others
PEFC Council is an accredited NGO with the United Nations Economic and Social Council (ECOSOC) and an associate member of the International Accreditation Forum (IAF).

Conclusions
The PEFC Mutual Recognition process respects the political processes designed to promote sustainable forest management developed by multi stakeholder involvement. The PEFC mutual recognition process operates as a bottom up process, respecting the principles of subsidiarity, which are largely responsible for its success in delivering rapidly growing quantities of timber from certified forests to the market place. PEFC relies on the use of tried and tested certification and accreditation processes (which are completely independent of PEFC) and which have their own rigorous procedures to ensure the reliability, independence and credibility of their work. The independence of the standard setting, accreditation, certification and of each scheme from the PEFC Council is a strength of the PEFC system and assures credibility. Member schemes can at anytime leave the mutual recognition framework provided by the PEFC Council. If they leave, they have the advantage of still having a fully functioning independent national scheme which has certifiers accredited by the national accreditation organisations. In other words they remain fully operational, which would not be the case if PEFC were to provide the accreditation for the certification bodies for example. Extensive documentation of the PEFC system, current up-to-date information and details of national certification systems, both endorsed and not yet endorsed, are available on the PEFC website at www.pefc.org and by subscribing to the PEFC mailing list.

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Notes

Notes
1

Acronyms used in the figure: Pan-European Operational Level Guidelines (PEOLG), International Tropical Timber Organisation (ITTO), African Timber Organisation (ATO), Principles, Criteria and Indicators (PCI), Criteria and Indicators (C&I), Sustainable Forest Management (SFM), Ministerial Conference for the Protection of Forests in Europe (MCPFE), International Labour Organisation (ILO).

References
PEFC (2005): PEFC Council Technical Document, Luxembourg (See website: http://www.pefc.org)

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Lembaga Ekolabel Indonesia - Introduction and implementation of forest certification in Indonesia
Alexander Hinrichs

The evolution of the forest certification system in Indonesia
On the way to the certification working group (1990 - 1993) The debate on forest certification in Indonesia dates back to 1990. Two events in particular were responsible. First, there were conferences in 1990 - including one in Bali - of the International Tropical Timber Organisation (ITTO), resulting in the adoption of the „Guidelines for the Sustainable Management of Natural Tropical Forests” and an agreement that the producer countries in ITTO should develop national guidelines for these. The Indonesian Ministry of Forestry (MoF) declared its willingness to implement ITTO’s goal of broad introduction of sustainable tropical forest management by 2000 („target 2000”). Second, for the first time in the world, with the help of several Indonesian non-governmental organisations (NGOs), the US NGO Rainforest Alliance with its SmartWood Programme certified a forestry operation - the semi-nationalised Perum Perhutani company, which manages teak plantations on Java1. These parallel developments of government interest in a positive high profile for Indonesia in the context of the ITTO process together with hope of the young national NGO movement that it could get publicity for social and ecological issues of forest management with the help of the concept of certification brought the certification approach to Indonesia at a very early stage. This was soon followed by market forces and the powerful Indonesian concession industry2. Plywood production3, which had been booming for years, encountered the first interest in certified wood products at the start of the 90s in the important US and European markets. In 1992 the umbrella organisation of the Indonesian wood industry, Masyarakat Perhutanan Indonesia (MPI)4 set up a „Forest Certification” working group, which was coordinated by the Indonesian concession holders’ association Asosiasi Pengusaha Hutan Indonesia (APHI) and supported by the MoF and the Ministry of the Environment. Building on the ITTO guidelines, this group concluded that the development of criteria for sustainable forest management would be inevitable, and that APHI „should take the lead in developing these criteria rather than run the risk of having them imposed on them“ (ELLIOTT 2000: 99). APHI accordingly developed a „second-party verification” certification standard, and started carrying out conformity testing among its member firms. In April 1993 the newly appointed Minister of Forestry Djamaluddin Suryohadikusumo issued a binding set of state criteria and indicators for sustainable management of the Indonesian natural forest at national and company level (MOF 1993). Based on an analysis of the weaknesses of the statutory forest environmental impact assessment in concession areas, the MoF called for the development of an independent national certification system. With financial support from MoF, the independent certification working group Klompok Kerja Ekolabel Indonesia (Indonesian Ecolabeling Working Group), also called Pokja Lembaga Ekolabel Indonesia (LEI working group), formed at the end of 1993. The group consisted of prominent scientists and NGO repre-

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sentatives, and was chaired by the former environment minister and Brundtland Commission member Prof. Dr. Emil Salim. The LEI working group sets itself the following goals: formulating criteria and indicators for the management of Indonesian forests capable of attracting a consensus, developing a transparent verification process relatively invulnerable to corruption, and a decision process along the same lines, and preparing for the creation of an independent national certification organisation (SALIM et al. 1997). The LEI working group becomes an institute (1994 - 1998) Between 1994-1997 the LEI working group created a national certification standard and an independent voluntary certification system within the context of the competing interests of NGOs, concession holders and the ministries of forestry, trade and the environment. Numerous workshops, hearings and field tests were held, with great attention being given to independence vis-à-vis the wood industry and government agencies, and also vis-à-vis international organisations. Standards and systems were primarily developed by a small group of local experts commissioned by the working group, and discussed with a larger group (which largely remained the same over the course of standard development) of interested NGOs, scientists and representatives of the private sector and forest administration. In April 1997 the working group succeeded in obtaining recognition for the LEI standards for natural forest management from the Indonesian concession holders’ association and the ministries involved. APHI discontinued the use of its own standards and its work on „secondparty” certification. The standard for natural forest management was accordingly recognised in June 1998 as a National Standard (SNI 19-5000-1-1998) by the Indonesian Standardisation Organisation, the national representative to the International Organization for Standardization (ISO). Reaching agreement on all this without changing the standard is a major negotiating success for the small LEI working group in dealing with the powerful concession holders’ association. The MoF played the role of intermediary in this. Until 1998, the LEI working group played a diverse role. In addition to serving as a standards initiative, system developer and implementing certification organisation, it also saw itself as a promoter for certification, sustainable forest management and political change. Forest certification was seen as a marketing instrument, and also as „a means to effectively implement commitment to Sustainable Forest Management, and commitment to Sustainable Development” (SALIM et al. 1997: 6). LEI counted on indirectly influencing forest management and policy, on „partnership rather than a confrontation and inspectorial approach” (SALIM et al. 1997: 6)5. The approach aiming at political change in Indonesia was also the basis of the LEI working group’s goal of developing an autonomous national certification system, instead of going with international developments such as the Forest Stewardship Council (FSC), which was also formed in 1993. However, the LEI system was intended to be flexible enough to obtain recognition from a number of international certification initiatives, in order to be accepted in the consumer markets. 136

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The first discussions with the FSC began in the mid-90s. A meeting in Rome in March 1998 led to a statement of intent on „producing at a later date a memorandum of understanding on mutual recognition”; (LEI 1998:1). In its role as self-appointed promoter, the LEI working group started training Indonesian auditors and national experts for work on the certification panels. With international support, LEI organised road shows on certification and sustainable forest management in various Indonesian provinces. Harmonisation of standards, focused public relations work and increased international contacts finally led on 6 February 1998 to the formation of the Indonesian certification institute, the non-profit organisation Yayasan Lembaga Ekolabel Indonesia (The Indonesian Ecolabelling Institute), generally simply known as LEI6. The LEI institute adopted the following mission: promote and implement policy aimed at sustainable resource utilisation, develop credible certification systems for sustainable resource utilisation, convert LEI to an accreditation organisation to monitor the implementation of national certification, establish the necessary institutional and human capacity for introducing credible national certification (LEI 2002a: 6). LEI establishes itself (1999 - 2004) The MoF supported LEI’s work through regular participation in the workshops, although without major influence on the content of its work. Discussions within the ministry on creating financial incentive systems for certification led among other things to the announcement that certified enterprises would be rewarded with simplified state monitoring. In 1999 LEI carried out its first and last main assessment, resulting in certification of the PT. Diamond Raya concession. Since then, LEI has been working exclusively as national accreditation organisation and „Certification and Sustainable Forest Management (SFM) promoter”, and has now recognised two national and two international certification organisations for Indonesia7. To date, 300 people have been trained as national assessors by LEI. In 1999 LEI also revised and significantly simplified its natural forest standard on the basis of initial field experience and suggestions from national and international bodies. LEI acted as a moderator here: „The results that come out of this multi stakeholder process, i.e., the Indonesian forest certification system, are regarded as stakeholders agreements or consensus. Indonesian stakeholders in this context cover all organisations and individuals representing the forest related businesses, governmental bodies, academics, and civil society groups that have been participating in the open forums and process of developing Indonesian certification system. This list can also be extended to foreign organisations contributing to the process”8. In September 1999 LEI and FSC signed a memorandum on future cooperation. At the same time, the four certification organisations accredited by LEI signed a Joint Certification Protocol (JCP) with those FSC-accredited certification organisations already active in Indonesia, SGS137

The evolution of the forest certification system in Indonesia

Qualifor and the SmartWood Programme of the Rainforest Alliance; this governed the details of their cooperation in the field and how the processes would be streamlined. In September 2000, October 2001 and March 2003 the JCP was internally evaluated, adapted and extended by the participants9. LEI also made contact with the Programme for the Endorsement of Forest Certification schemes (PEFC). LEI was recognised by the British retail chain B&Q already in 2000. To date, 14 concessions with an area totalling c. 2.5 million hectares have been assessed under the JCP. Only one - the PT. Diamond Raya concession (90,957 ha) - has so far met the criteria of both certification systems and been recognised by LEI and FSC (1999). Four other forestry operations (665,046 ha) met the requirements of the LEI system but not of the FSC system, so that no certificates have been issued so far under the JCP agreement. In parallel, SmartWood certified several Perum Perhutani plantations on Java and the PT. Xylo Indah Pratama forest cooperative on Sumatra, all of which are outside the area of application of the JCP. However, these were suspended again by mid-2003. LEI also certified two small cooperative forests on Java in 2004, so that today there are only three LEI or FSC certified forest operations in Indonesia after more than ten years of discussion on certification. The certification debate has become highly politicised in recent years. First, MoF and the concession holders’ association have tried in tandem with international organisations and cooperative ventures to make the issue of certification more accessible to a broader public, and to increase concession holders’ interest and knowledge of the issue10. In parallel with the rapid social changes in the post-Suharto era (keywords: democratisation, decentralisation) and the resulting loss of power of the MoF and the concession holders’ association, there has been a significant increase in the criticism aimed at the forest industry (including forest certification) by individual NGOs. LEI, which from the start had dedicated itself to participating in the political decision-making process and accumulating social capital, was institutionally and organisationally unequal to its goal in these turbulent times, and was unable e.g. to establish the regional discussion fora provided for in the system and welcomed by the NGOs as bodies for consultation with stakeholders and for monitoring the work of certification organisations throughout Indonesia. LEI responded to criticism of LEI and forest certification in Indonesia by further developing its system (creating a separate standard for plantations and community forests, introducing a Certification Review Board and Forest Certification Monitoring Programme and developing a phased approach for certification at the forest management unit (FMU) level). In addition LEI held workshops on current forest policy issues, including illegal logging (causes, possibilities of monitoring through log audit procedures) and the effects of decentralisation. Critics of certification included numerous NGOs, which nevertheless participated in the development of the certification system for community forests, and signed special agreements for this with LEI in July 200211. At the start of 2003 LEI announced that it was transforming itself into a constituent based organisation. This announcement was positively received by all Indonesian NGOs. However, internal evaluations concluded that it was necessary first to improve the organisation of work and management capacity within LEI before such a sweeping move would be possible12. In

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October 2004 LEI finally presented a four-chamber concept for its constituent-based organisation to 130 representatives of all the Indonesian interest groups at a national certification congress. After detailed negotiations on the voting weights of each chamber, the following system was adopted: one chamber for the concession industry (30% of the vote), one chamber for the local population (35%), one chamber for interested parties (in Indonesian, Pemerhati, a mix of representatives of NGOs and the forest administration, 20%) and a special chamber for generally respected individuals (Indonesian: eminen person, 15%). The chamber for the local population was given the biggest vote at the express wish of the NGOs. LEI succeeded in this way in gaining even some of the previously critical NGOs as members, and now hopes to be able to continue the debate about the future of certification in Indonesia in a constructive manner within its own organisation. As a first step, the appointed chamber representatives (10 individuals) will evaluate LEI’s entire programme, including cooperation with the FSC. A meeting with the FSC is planned for mid-2005. Since 2002 LEI has participated in the regular meetings of the Secretariat of the Association of South-East Asian Nations (ASEAN) on developing a Pan-ASEAN Timber Certification Initiative. Following the idea of a „phased approach” LEI supports the development of a regional framework (minimum standard) for legality verification (legal compliance) of wood from ASEAN member states for a start (ASEAN 2005).

LEI’s certification standards
To date, LEI has developed three forest certification standards and a chain-of-custody standard, which are described in various primary documents (see table 1). In addition, LEI has developed a log audit standard for checking the origin of wood used in the wood processing industry (tested to date in two paper mills) and is working on developing criteria and indicators for sea fishing. Table 1: Key documents on LEI’s forest certification standards
LEI document Standard 5000 Standard 5000-1 Standard 5000-2 Standard 5000-3 Standard 5000-4 Standard 5001 Standard 5005 Contents context document: sustainability standards in the production forest standard for sustainable natural forest management standard for sustainable plantation management standard for sustainable forest management by communities and cooperatives standard products for sustainable management of non-wood Adopted 1998 1998, revised 1999 2002/3 in testing planned 2002/3 1998

chain of custody standard terminology

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LEI’s standards are broadly performance based, i.e. their primary goal is to document the effects of the forest management system at issue. In addition, analysis of documentation of operational planning and control, company organisation and the relationship between operators and the local population play a major role. The natural forest standard in particular is notable for its applicability and comprehensibility. LEI has produced high quality documentation of its extensive and carefully structured system for forest certification. Detailed training materials were also produced for certification in production forests (series 99) and chain-of-custody certification (series 88). There is also technical documentation in the form of assessor manuals for fieldwork and guidelines for certification by expert groups (LEI documents 01 - 04). Background material completes the system. All central documents are available on the Internet at http://www.lei.or.id/indonesia/download.php in Indonesian, with a limited number in English. Standard for sustainable management of natural forest LEI’s standard for natural forest management is aimed at the Indonesian concession holder industry with areas between 40,000 and 250,000 ha. The content of the standard draws on the criteria and indicators of the ITTO, ISO 9.000/14.000 series and the FSC principles and criteria, but the standard has its very own structure. LEI divides the standard into the three sustainability or results dimensions - production, ecology and social aspects. Each dimension is further considered on three levels (management dimensions): establishment (area management), division or stand level (forest management), and institutional level (organisation management). This generates a matrix reflecting the structure for deriving criteria and indicators (see box 1). For the natural forest standard, LEI initially developed 144 such indicators, which were simplified to 57 in 1999 as a result of greater field experience and stakeholder inputs. The standard has numerous optional verification aids for each indicator, to be used like a toolbox; these are explained in technical document LEI-01 (LEI 2000). Standard for sustainable management of plantation forests The plantation forest standard follows the structure of the natural forest standard. In formulating it, LEI again drew on from the ITTO, FSC and ISO, with additional input from the Dutch foundation Tropenbos and the International Labour Organisation (ILO). In all, 67 indicators were derived (LE 2003). In contrast to the FSC, LEI accepts direct transformation of natural forest into plantations, provided that this is done entirely legally and recognised by the affected local population. The standard has been repeatedly tested, but there has been no LEI certification of plantation forests as yet.

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Box 1: Breakdown of LEI standard by management and results dimension

Management dimension: a. b. c. area management : forest management: organisation management: area demarcation and protection forest output enterprise organisation

Results dimension: 1. 2. 3. sustainability of production sustainability of environmental outputs sustainability of social aspects

The matrix shows how the management and results dimensions are combined, with each indicator an expression of this combination. The standard focuses on area and forest management. Combination of management and results dimensions in the LEI system and the number of derived indicators, taking the example of certification in the natural forest Management dimension sustainability of production (P) 1. area management 6 INDICATORS (P1.1 - P 1.6) 9 INDICATORS (P2.1 - P 2.9) Results dimension sustainability of environmental outputs (E) 11 INDICATORS (E1.1 - E 1.11) 8 INDICATORS (E2.1 - E2.8) sustainability of social aspects (S) 4 INDICATORS (S1.1 - S 1.4) 5 INDICATORS (S2.1 - S 2.5)

2. forest management 2.1 production management 2.2 environmental management 2.3 social management 3. organisation management

6 INDICATORS (P3.1 - P3.6)

0 INDICATORS (since standard revision)

8 INDICATORS (S3.1 - S3.3) (S4.1 - S4.2) (S5.1 - S5.3)

Source: AGUNG, HINRICHS (2000), revised

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Standard for sustainable management of community and cooperative forests Community and cooperative forests still play a very minor role in Indonesia. LEI has worked for certification of Community Based Forest Management (CBFM) primarily for political reasons. As a result, LEI is working not only for certification of communities, but also for explicit promotion of CBFM in Indonesia and fair benefit sharing. The structure of the community forest standard is an effort to reflect the unique features and diversity of Indonesian CBFM areas. Generally, community forest is divided according to the form of land title into forest on state land, forest on community land (as property of the community and cooperative), and forest on private land. There is a further division based on the production goals into commercial production and production for subsistence, and based on the legal status of the forest area into production forest, protection forest and conversion forest. The result is 24 categories in a community forest typology, although no distinction is made between community management of natural forest and planted stands (LEI 2004). Before starting certification, it is necessary to determine the type of community forest, as this affects not only the certification procedure and relevant standards, but also whether an area is suitable for certification at all. For example, LEI shall not legitimise any use of protected forests, even by communities. The wide range of possibilities does, however, mean the system only partly achieves one of its goals - simplicity. To keep certification of community forest acceptable in terms of costs, LEI has developed a verification procedure for specific cases which is based on statements by a generally recognised individual or organisation acting as a guarantor. This procedure was accepted from the start in the course of extensive public hearings involving NGOs, community representatives and LEI, which have taken place since 2000 for CBFM certification. Initial experience in West Kalimantan and particularly on Java shows that the organisational prerequisites for certification in community forest are frequently lacking13. In addition, the sustainable wood supply is extremely modest in most Indonesian communities, so that larger marketing associations are needed. LEI and the World Wide Fund for Nature (WWF) are trying to develop marketing aids for wood from CBFM areas. Two certifying bodies accredited by LEI (PT. Mutu Agung Lestari and PT. TÜV International) have now had themselves accredited for certification in community forest. In October 2004 forest management of two villages in East Java was certified for the first time by LEI14.

The certification process for natural forest in the LEI system
As the national accreditation body, LEI entrusts certification to its accredited certification bodies, which enter into contracts directly with the forest enterprises. An accreditation manual details the requirements for independence and professionalism of certification bodies and their internal quality management. The specifications of ISO (documents 61, 62) were incorporated. For example, communication between the certifying body, the accreditation body (LEI), the regional discussion fora and the dipute resolution council is specified exactly.

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The LEI certification process reflects the attempt to establish a system which is as robust and invulnerable to corruption as possible, and which takes into account the special features of the country and poor experience with other audit procedures. There are six stages in the procedure: (1) pre-audit (screening process) (2) main audit (field assessment) (3) analysis and evaluation of the field assessment (4) certification (5) monitoring audit (surveillance) (6) conflict resolution. (1) Pre-audit

A pre-audit is carried out to determine whether a forest enterprise is suitable for certification at all, in order to keep costs and time spent to a minimum. LEI assigns performance and evaluation of the pre-audit to an independent expert panel (Expert Panel I) with at least three members, formed on a case-by-case basis by the certification organisation involved. The experts must be technically competent and independent of the forest enterprise to be audited, and be specially licensed by LEI. Their primary task is to analyse operational documents (statements of corporate philosophy, management plans, environmental impact assessments, monitoring reports etc). If necessary, the experts can make a short field visit (field scoping). Expert Panel I decides on the basis of the documentation and impressions from an optional field visit whether the forest operation is suitable for a main audit. If so, the panel makes recommendations in its report for the work of the assessors. The pre-audit is an internal process, i.e. there are no formal stakeholder hearings, and the results are not published. (2) Main audit

The certifying body assembles the team of assessors and publicly announces its work. This is to enable it to work together with the regional discussion fora created by LEI15. The regional discussion fora are meant to contribute their local experience, make important contacts, inform stakeholders of the certification process, help in case of conflict, and generally support the work of the certifying organisation and LEI. The team consists of at least three assessors (corresponding to the results dimensions production, ecology, and social affairs). Assessors must be registered with LEI and trained in certification by LEI, and must have at least three years’ professional experience. They should also have regional experience. LEI can send its employees at any time to a field assessment as observers or moderators, which enables it to monitor the work of the certifying organisations. If the forest enterprise has no objections, observers from interested groups are also permitted. The assessor team analyses the forest operation with the help of documents, forest visits and stakeholder hearings. It generally makes qualitative assessments, i.e. measurements are made

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only in rare instances. The resources needed for the audit are somewhat greater than in comparable FSC certification. The team is also responsible for assigning the operation to a specific type16. Stakeholders can participate in a number of ways: through the planned formal hearings at national, province and/or district level, through meetings with representatives of the regional discussion fora and in writing. The assessor team draws up an audit report containing for each of the 57 indicators a description of the situation and a provisional evaluation by the team. (3) Analysis and evaluation of the field assessment

LEI assigns the final analysis and evaluation of the enterprise to another independent expert panel (Expert Panel II), to be assembled on a case by case basis by the certifying organisation handling the contract. The Expert Panel II consists of the members of Expert Panel I and at least three more experts. In selecting the experts, local knowledge plays a role in addition to professionalism and independence. The team leader for the field assessment reports to the expert panel, and can also be a member of this, but does not participate in the final evaluation. A representative of the forest enterprise can also submit a statement on the audit report. LEI itself can moderate the work of the Expert Panel II, enabling it to monitor its independence. The evaluation of the Expert Panel II is based on three sources: the results of Expert Panel I, the report of the assessor team, and stakeholder inputs, which are possible at any time. Expert Panel II makes its recommendations on the basis of a highly formalised process of analysis known as analytical hierarchy process. This compares the field situation at indicator level with the minimum standard set in advance for each type of operation. The weighting of the evaluation of the indicators also depends on the type of operation, where the enterprise can in principle offset a shortfall in one results dimension through good performance in another results dimension. In contrast to the FSC concept, the decision is simply pass or fail, with no conditions. If the enterprise falls short of the target for certification, it has six months for improvement before a repeat field assessment. If it exceeds this period, the process is ended. (4) Certification

The decision on awarding a certificate is made by the certifying organisation concerned, which follows the recommendation of Expert Panel II. The certificate is valid for five years. There are five levels of certificate (from zinc to gold). The certification decision is public. (5) Surveillance

LEI’s certifying organisations carry out regular monitoring audits, with a frequency depending on the level of certificate. Expert Panel II prepares these audits by drawing up a priorities list and main audit indicators. The results of the surveillance audit itself need not be evaluated by an expert panel. (6) Conflict resolution

LEI has set up a permanent independent dispute resolution committee to handle objections, the Certification Review Board. Forest enterprises along with all other stakeholders can approach this board directly. The Certification Review Board is responsible for examining objections in

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cooperation with the relevant regional discussion fora and in case of doubt can modify the certification decision. The tribunal is made up of prominent personalities from the world of science and NGOs, some of whom also belong to the eminem person chamber. As noted above, certification in the natural forest in Indonesia has been carried out since 1999 under the Joint Certification Protocol (JCP), a voluntary agreement between LEI accredited certification organisations and individual FSC accredited certification organisations. The JCP provides for steps 1, 2 and 5 of the LEI certification system to be carried out jointly, subject to the LEI-5000-1 standard, supplemented by elements specific to FSC. Certification is only possible if both systems are satisfied. The LEI and FSC certification organisations accordingly plan their work together, sending a joint team out for the pre-audit and main audit17. This has had significant learning effects for both sides, and improved understanding of the systems. However, it has also increased the costs of certification.

Differing attitudes to certification in Indonesia
Continuing discussions about indigenous land rights in concession areas, lack of political vision and regulations charged with conflict, miserable performance by many concession holders, widespread and growing illegal logging, all anchored in a system of corruption and nepotism, set the context for implementing forest certification in Indonesia. The rapid decentralisation of large parts of central state power to district level at the start of 2000 also led to major insecurity in state structures and the private sector. This situation is more than unhelpful for introducing innovative concepts of resource utilisation. Attitudes to forest certification are divided in Indonesia today. Although there are many different positions, we will attempt to group them for simplicity into supporters and critics. First, there are the supporters, whose position has been significantly strengthened by LEI’s transformation into a constituent-based organisation. For example, the Joint Communiqué on Calls for Rescuing Indonesian Natural Resources by the government, NGOs, representatives of indigenous groups and the private sector on 22 October 2004 emphasises the important role of certification in resource conservation and social issues (particularly with reference to working conditions). Positions of supporters Supporters are individual national NGOs (including The Indonesian Tropical Institute (LATIN)18, The Indonesian Network for Forest Conservation (SKEPHI)), employees of innovative concessions and the concession holders’ association, employees of the certification organisations, and independent individuals, particularly from fields of science. In addition there are representatives of some international programmes and organisations such as the Tropical Forest Trust (TFT), Tropical Forest Foundation (TFF) and The Nature Conservancy (TNC). All the organisations are distinguished by experience in development and or implementation of certification in Indonesia, and have field experience in concessions. There are also two working groups in Indonesia for promoting forest certification - the Certification Practitioners Group in Jakarta and the producer group Kelompok Kerja Sertifikasi in East Kalimantan19.

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Simplifying, the supporters of forest certification in Indonesia see the positive impacts as follows20: (1) Promotion of participative mechanisms The LEI certification process, further strengthened by the JCP, attaches great importance to participative mechanisms. Stakeholders are involved at all stages of certification, in standards development, before and during the audits, and in case of conflict. By the nature of the process, LEI and FSC compel concession holders to disclose their management to the local population and interested public. This for the first time creates the transparency in the sector that has been called for for years, and persuades the concession holders to cooperate in consultative processes. Supporters of certification cite cases where the relationship between concession holders and the local population has visibly changed for the better in connection with certification, even though the past cannot be simply wiped out. (2) Improvement of concession management The forest enterprises interested in certification to begin with come from a small group of innovative concessions (a few percent of Indonesian enterprises). They have downstream industries with an international alignment. Supporters of certification note that these enterprises are ready to plan intervention for a longer term and invest in improving their forest management and their human resources (further training, accident prevention). Their willingness to invest in ecological and social aspects of forest management as well is significantly greater than that of other concession holders, who are out of reach of either certification or state control, and whose „hit and run“ management style invites criticism of the concession system. Through their own internal audits (self scoping), assessor training, LEI-FSC certification audits and external consultants, the innovative enterprises have in the course of the debate over certification learned much about the concrete content of sustainable management eligible for certification, its introduction and its control procedures. They have realised that greater transparency of planning and implementation is needed, and know that companies certified under the JCP have to meet more stringent technical requirements than statute requires (keywords: reduced impact logging, comprehensive control of environmental impacts, acceptable conflict resolution, verifiable internal chain of custody, effective combatting of illegal logging). International projects in the last few years have built up substantial capacity in these areas in particular, and their implementation can be helped by forest certification21. (3) Influencing forest policy The supporters of certification expect that forest certification will have a positive influence on forest policy through the public definition of management standards, the increase in company transparency, and the unvarnished feedback on the situation in the field. One of LEI’s goals is to do this. At the national level, there was discussion even before decentralisation of incentives for promoting certification, and there are examples at local level where national and local figures of power have made positive statements about certification, third-party auditing and participative approaches to conflict resolution22. Given the dramatic (illegal) scale of destruction of forests in Indonesia, and the increased weakness since decentralisation of state structures, these

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approaches are among the few positive developments, and should accordingly be supported, as the proponents of certification see it. (4) Promotion of community forests In the view of the supporters, certification in community forests raises the profile of community forest management in Indonesia and can help communities obtain legal recognition for their traditional forest management. Certification also provides a systematic and nonstatal framework for setting standards in community enterprises for the quality of acceptable forest management and its organisational prerequisites. It accordingly works hand in hand with the numerous national and international projects and initiatives for promoting this - still minor - form of forest management in Indonesia. Positions of critics Critics of certification in Indonesia include the national NGOs Friends of the Earth Indonesia (WALHI) and the Alliance of Indigenous People of the Archipelago (AMAN), formed in 199923. They are supported by international NGOs, including some which are among the severest critics of forest certification, such as Rainforest Foundation, Rainforest Action Network and Down to Earth Network, which is very active in Indonesia. Most critics have a good picture of the situation of the indigenous population, but have virtually no direct experience of implementing forest certification in the country. NGO criticism dates back to 2000, when a letter of 13 September from WALHI to FSC, LEI, their certification organisations, as well as GTZ and the TNC voiced concerns about the interpretation of the certification standard and the lack of consideration given to the criminal past of the concession holders. WALHI demanded more influence on certification work (LEI responded by creating the Certification Monitoring Programme). A further letter by several international NGOs to the FSC dated 9 September 2000 said: „In our opinion, no certification intended to respect local peoples' rights can be carried out in any concession before the whole concession system has been revised and the boundaries of indigenous peoples’ land have been defined and recognised. We therefore call on you to stop all certifications of logging concessions in Indonesia until such time as the legal position of local community rights has been fully recognized.“24 In March 2001, at a workshop organised by WALHI, 115 national signatories joined in the call for a temporary stop to certification. The basic idea of the moratorium is not a general rejection of the certification approach (and particularly not for community forests25), but is based on the demand made at the same time by WALHI and its international NGO partners for a logging moratorium in Indonesia until the political conditions for good forest management are established, and particularly until legal recognition of indigenous peoples’ land rights is announced or even implemented. Many of the Indonesian NGOs, again with support from international initiatives, also reject the concession system as a whole, and see certification of large concessions as legitimating the system, rather than improving forest management. There is also isolated criticism that the certification process in Indonesia is too much an insider affair, and that many NGOs know too little about this or are too little involved26. International certification bodies are also accused of not having made enough effort to engage in appropriate consultation or initiate open debate about the imple-

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mentation of the FSC certification standards under Indonesian conditions (COLCHESTER et al. 2003)27. LEI is also criticised by local NGOs for the fact that the creation of regional discussion fora is lagging well behind expectations. The link between FSC certification and indigenous land rights was investigated in an extensive study commissioned by WALHI and the results were presented to the public at a major workshop in January 2003. The study analyses the political and legislative framework in terms of FSC principles 2 and 3 (i.e. not in terms of the LEI 5000-1 standard) and concludes, „the current Indonesian forest policy environment is difficult for, even hostile to, certification to FSC standards“. The study's core statement is that the unresolved situation regarding land rights in Indonesia and legal questions about the legitimation of the concession system make a certification moratorium necessary: „an urgent and required next step must be to embark on a national dialogue to decide how and whether to promote voluntary certification in Indonesia using international standards such as those of the FSC. Until such a national dialogue has been held and a national consensus achieved on the way forward, FSC certification processes in Indonesia should be suspended” (COLCHESTER et al. 2003: 18, 24)28.

Conclusions and prospects
Ten years after the start of the LEI certification working group, the debate in Indonesia is back at the start: a fundamental discussion on the sense and purpose of forest certification. Although LEI has since developed a well-thought-through, practicable and widely recognised certification system and acquired some influence on the sector, there is currently little reason for satisfaction for LEI. Implementation of certification has come to a halt - only one area in the natural forest is still certified (the FSC certificates for plantations and the community forest were suspended for performance reasons), and LEI’s certification in the community forest is still in its infancy, despite the award of two certificates. The concession holders have become reticent in view of their own uncertain future, financial bottlenecks (competing wood from illegal logging is considerably cheaper) and the lack of market incentives. As expected, the call for a logging moratorium was not taken up by the MoF, and progress in the discussion of land rights is also minimal The national dialogue proposed by WALHI on forest certification has not emerged so far. Certification has attracted much attention in Indonesia from a very wide range of organisations. It seems that supporters and critics both wish to attach a large number of different issues to the specific topic. The certification debate has certainly led to changes in thinking and acting in Indonesia, and brought a new definition and recognised structure to the requirements for good forest management. Certification has also proved the only instrument to date which has seriously affected the private sector. The current situation helps us to a better understanding of the limits and possibilities of the certification concept. Certification was developed as an approach by the market and civil society outside state structures, and builds on voluntary innovation by individual forest enterprises, irrespective of their ownership. It cannot be a panacea for solving all the many and varied forest policy problems in Indonesia, let alone all the tropical nations. Certification requires a supportive political environment which has to be established by other instruments. Certification

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can, however, help in two respects. At the field level, its contribution consists of providing a model by creating individual case by case solutions in innovative enterprises. Doing this it can easily raise problems which it is unable to deal with itself. These include the unresolved legal questions of the concession system in Indonesia, where an individual solution is entirely possible. At the social level, certification - at least as it is understood by LEI and FSC - requires broad public discourse on the goals of the forestry industry. In a complex situation such as Indonesia, such discourses are extremely complex and not easy to bring to a conclusion. As a result, they are also extremely expensive. Its regained acceptance among the ranks of the critics of certification has consolidated LEI’s position again. We must hope that LEI will ease the tensions surrounding forest certification in its new role as a constituent-based organisation, and that it will also be able to serve its political goals better. It may help if LEI were to lay more stress on the opportunities and limits of certification in Indonesia in connection with other international instruments (e.g. Convention on International Trade in Endangered Species of Wild Fauna and Flora, CITES; Forest Law Enforcement, Governance and Trade, FLEGT) and national processes (e.g. decentralisation, CBFM), and to continue to contribute actively to the regional discussion about the legality of wood products in the context of ASEAN and the Asian Forest Partnership Programme.

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Notes

Notes
1

Perhutani manages around two million hectares of plantation in 54 forest districts. The main tree species are teak, pine and mahogany. For more detail, see SMARTWOOD (2001b). In 1990 there were 564 concessions covering 59.62 million hectares granted to national companies, often conglomerates close to the government. Indonesia’s plywood exports rose between 1982-1994 from USD 500 million to USD 4 billion. MPI includes among other organisations APKINDO (Indonesian Wood Panel Association), ISA (Indonesian Sawmill and Wood Working Association), APHI (Association of Indonesian Forest Concession Holders), AIFTA (Association of Formalin and Thermosetting Adhesives Industries) and ASMINDO (Indonesian Furniture Industry and Handicraft Association). Loc. cit.: „Indonesian ecolabel system promotes co-operation, mutual understanding and partnership among the various stakeholders of the forest…It is therefore in Indonesia’s highest interest to develop timber certification as a means of achieving the nation’s SFM objective”. The foundation is chaired today by Djamaluddin Suryohadikusumo, who as Minister of Forests in 1993 cleared the way for independent certification in Indonesia with Prof. Emil Salim. These are: PT. SUCOFINDO, PT. MUTU AGUNG LESTARI, PT.TÜV INTERNATIONAL INDONESIA and SGS INDONESIA, of which the latter discontinued its work as a forest certifier in Indonesia in 2003. Dr. Mubariq, LEI’s director at that time, in an e-mail dated 23 December 1999 explaining the Indonesian certification process to the national and international certification community. In 2001 there was a survey of certification organisations, assessors, consultants and concessions, see HINRICHS (2001). Support came e.g. from ITTO, GTZ, Ford Foundation and the Department for International Development (DFID): Among other events, GTZ organised an Awareness Conference on Forest Certification in Indonesia in September 2000 together with MoF and LEI, and produced a „self scoping” manual to make certification clearer to forest enterprises (cr. AGUNG, HINRICHS 2000). ITTO directly supported LEI and APHI for a training programme with concession holders. DFID and the Ford foundation supported multi-stakeholder meetings on the topic. The NGOs are World Wide Fund for Nature (WWF), Volunteers Alliance for Saving Nature (ARUPA), The Association for Economic and Social Development Studies (PERSEPSI), Community-based Forestry Management East Kalimantan (SHK Kaltim), Alliance of Indigenous People of the Archipelago (AMAN) and the Indonesian Consortium for Supporting Community-based Forestry System Management (KpSHK). LEI, personal communication. LEI is working in Java on a pilot project with support from WWF and GTZ together with the Indonesian NGOs ARUPA and PERSEPSI on assisting villages with sustainable forest management. A special training programme was developed for this and a number of studies prepared. The Tropical Forest Trust (TFT) on Sulawesi is also working on this. This involves the villages of Sumberejo and Selopuro (810 ha) promoted under the pilot project.

2

3 4

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The Joint Certification Protocol states: „Public consultation is a fundamental component of the FSC and LEI systems and therefore also of the JCP. It starts with a joint public announcement a minimum of 30 days before a field assessment takes place and should be in coordination with Regional Communication Forum (Forum Konsultasi Daerah/FKD), if possible. FKD representatives will be informed 10 days prior to the public announcement. Consultation must take place on national, provincial and district levels. All interested stakeholders shall be involved“ (JCP 2003: point 9). Depending on the type of operation, Expert Panel II gives different weightings to the results for the individual results dimensions. The decision making process, where there is a significant difference between the LEI and FSC concepts, still proceeds independently and separately. The forest enterprise receives two separate audit reports. Latin worked closely with SmartWood in Indonesia in the 90s. The Certification Practitioners Group arose in 2000 out of a SmartWood initiative (contact praktisisertifikasi@yahoogroups.com) as a loose association of individuals and organisations interested in certification. It meets at irregular intervals in Jakarta and does not have an infrastructure of its own. The certification working groups in East Kalimantan arose in 1998 out of a suggestion by GTZ and maintains its own secretariat in Samarinda (contact: kkskaltim@yahoo.com). Its main responsibility is information work on certification and sustainable forest management in the concession sector and local administrations. The following points draw on internal and unpublished discussions within the Certification Practitioners Group over the course of 2003. There are or were close relationships between many international projects and programmes and concessions, e.g. through the Centre for International Forestry Research (CIFOR) to Inhutani II, through GTZ to Sumalindo and the Kayu Lapis group, through the European Union (EU) to Inhutani I, the Dwima group and the Barito group, through TNC and TFT to numerous concessions in East Kalimantan and through TFF and a Reduced Impact Logging Training Programme to numerous concessions throughout the country. MoF issues e.g. exceptional regulations for certified enterprises on logging (permits for certified enterprises to log Ramin (Gonystylus bancanus)) and special treatment under the „soft landing” concept for reducing the national annual allowable cut. MoF has also developed its new concession control system („mandatory verification”) as a third-party auditing approach which is implemented among others by certification organisations accredited by LEI. Since October 2004 the networks have belonged to LEI’s social chamber (AMAN) or the chamber for interested persons (WALHI). E-mail from Liz Chidley, Down to Earth; Simon Counsell, Rainforest Foundation UK; Jessica Lawrence, Rainforest Action Network, Lars Loevold, Rainforest Foundation Norway and Kim Loraas, Friends of the Earth Norway to the FSC Board of Directors. See also DOWN TO EARTH (2001). The same e-mail calls on the FSC to develop a separate certification standard for community forests with LEI.

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This argument may seem surprising considering how much LEI has tried to involve interested groups. As the FSC in agreement with LEI did not try to set up a national working group, there is still no information about its work and the impacts and future of the JCP. The efforts of FSC, LEI and particularly SmartWood (e.g. in SMARTWOOD 2001a) to explain the practice of certification in Indonesia in detail met with little response. The study deals only marginally with the LEI system. However, the proposed FSC certification moratorium applies to LEI as well because of the JCP.

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References
AGUNG, F. / HINRICHS, A. (2000): Self-scoping Handbook for Sustainable Natural Forest Management Certification in Indonesia. SFMP Project (MoF-GTZ). Document 6/2000. ASEAN (2005): Report of the 5th Meeting of the Ad-Hoc Working Group on a PAN-ASEAN Certification Initiative. In preparation. COLCHESTER, M. / SIRAIT, M. / WILARDJO, B. (2003): Application of FSC Principles 2 & 3 in Indonesia: Obstacles and Possibilities. DOWN TO EARTH (2001): Certification in Indonesia: A Briefing. June 2001. ELLIOTT, C. (2000): Forest Certification: A Policy Perspective. CIFOR, Bogor. HINRICHS, A. (2001): JCP Evaluation. Input Paper to the 3rd JCP Meeting in Bogor 2001. LEI (1998): Minutes of meeting between YLEI Board of Trustees and FSC, Rome, March 1998. LEI (2000): Sistem Sertifikasi (certification system). 4 vols. Standard Seri 5000, Seri 99, Seri 55 and Dokumen Teknis 01&02. LEI (2002a): Annual Report 2001. LEI (2002b): Pilot Proyek Sistem Sertifikasi PHBML & PHTL (pilot project community forest and plantation certification). LEI (2003): Standar LEI 5000-2: Sistem Pengelolaan Hutan Tanaman Lestari (standard for plantation certification). LEI (2004): Kerangka Sistem Sertifikasi Pengelolaan Hutan Berbasis Masyarakat Lestari (framework for community forest certification). MOF (1993): Surat Keputusan (SK) 252/1993, SK 576/1993 and SK 610/1993: “C&I of Natural Production Forest Sustainability on National Level” and „Sustainable Management of Natural Production Forest on Management Unit level”. JCP (2003): Joint Certification Protocol (JCP) between LEI-accredited Certification Bodies and FSC-accredited Certification Bodies. SALIM, E. / DJALINS, U. / SUNTANA, U. (1997): Forest Product Trade and Certification: an Indonesian Scheme. Paper at the World Forestry Congress in Antalya. SMARTWOOD (2001a): SmartWood Update on currently certified FSC teak plantations and SmartWood certified Chain of Custody companies using FSC teak. SMARTWOOD (2001b): SmartWood memo to WALHI, Down to Earth, Rainforest Foundation, Forest Monitor, Global Witness and other international NGOs, 31 January 2001.

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MTCC timber certification scheme
Chew Lye Teng / Harnarinder Singh

MTCC timber certification scheme
Chew Lye Teng / Harnarinder Singh

Establishment of MTCC
The Malaysian Timber Certification Council (MTCC) was established in October 1998 to develop and operate a voluntary national timber certification scheme in Malaysia. The formation of MTCC was the result of discussions among government ministries, forestry departments, academic and research institutions, environment department, timber promotion bodies, standards institute, timber industry associations and environmental non-governmental organisations (NGOs) regarding the need to establish an independent and new organisation to develop and operate the national timber certification scheme. Starting off as the National Timber Certification Council, Malaysia (NTCC, Malaysia), it changed its name to MTCC in June 2001. MTCC is incorporated under the Companies Act 1965 as a company limited by guarantee, and started its operation in January 1999. The MTCC timber certification scheme started operating in October 2001. The MTCC scheme is therefore a national certification scheme run by an independent purposecreated organisation (MTCC) that appoints registered third-party assessors to carry out assessments for certification purpose, and issues certificates for forest management and chainof-custody. It also facilitates consultation among all stakeholders in Malaysia on timber certification, including the formulation of standards related and keeping them under review periodically. However, as preparation for endorsement of the scheme under the Programme for the Endorsement of Forest Certification schemes (PEFC), MTCC intends to focus on its role as the national governing body (NGB) while the assessors will be the certification bodies (CBs) which will be accredited by the national accreditation body (Department of Standards Malaysia, DSM). The MTCC certification scheme covers the three regions in Malaysia, i.e. Sabah, Sarawak and Peninsular Malaysia. The forest management standard used, the Malaysian Criteria and Indicators for Forest Management Certification (MC&I), applies to the three main forest types (Dry Inland Forest, Peat Swamp Forest and Mangrove Forest) found in the natural forest in Malaysia.

Structure and governance of the scheme
MTCC is governed by a Board of Trustees, comprising a Chairman and eight other members, which decides the overall policy and direction in carrying out MTCC’s activities. In addition to the Chairman, the members comprise two representatives each from academic and research institutions, the timber industry, NGOs and government agencies, who are appointed by the Chairman for a two-year term. The Board meets four times in a year, and decisions are made by consensus.

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A Certification Committee, established by the Board, has been given the responsibility to (i) decide on applications for forest management and chain-of-custody certification, based on assessment reports submitted by the independent assessors; (ii) decide on the registration and de-registration of the independent assessors; and (iii) consider applications for registration as peer reviewers. The Certification Committee comprises four members of the Board representing each of the stakeholder groups. Appeals against the decision of the Certification Committee are considered by a committee comprising the other members of the Board. The day-to-day operation of MTCC is managed by a chief executive officer, who is assisted by a senior manager, two managers and four executives, together with five administrative staff. The MTCC management is responsible for implementing the decisions made by the Board. Decisions of the Board which are relevant to the stakeholders are communicated to them directly as well as through the MTCC web site and other means such as press releases.

Standard for forest management certification
The MTCC certification scheme is being implemented using a phased approach which involves the use of different forest management standards in the two phases. The standard currently being used for assessing Permanent Reserved Forests (PRFs) in Forest Management Units (FMUs) is the Malaysian Criteria, Indicators, Activities and Standards of Performance for Forest Management Certification [MC&I(2001)]. The MC&I(2001) is based on the 1998 International Tropical Timber Organization (ITTO) Criteria and Indicators for Sustainable Management of Natural Tropical Forests. It incorporates the corresponding standards of performance for Sabah, Sarawak and Peninsular Malaysia which were identified during the regional and national level multi-stakeholder consultations held in 1999. The stakeholder groups involved in these consultations were from government agencies, academic and research institutions, workers’ unions, environmental NGOs, local communities, timber industry associations, women’s organisations and timber promotion bodies. The MC&I(2001) contains the key elements for sustainable forest management covering economic, social and environmental aspects. These are elaborated under six Criteria and 29 Indicators that deal with the enabling conditions for sustainable forest management, forest resource security, flow of forest produce, biological diversity, soil and water, and economic, social and cultural aspects. For the next phase of its certification scheme, MTCC will be using a new standard, the Malaysian Criteria and Indicators for Forest Management Certification [MC&I(2002)], which has been developed using the Principles and Criteria of the Forest Stewardship Council (FSC) as the framework. Similarly, the development of the MC&I(2002) involved broad-based consultation and consensus between social, environmental and economic stakeholder groups through several meetings of the multi-stakeholder National Steering Committee (NSC) that was formed to facilitate the MTCC-FSC cooperation (mainly through standard setting)1, and regional consultations held separately in Sabah, Sarawak and Peninsular Malaysia. These consultations culminated in the national-level consultation held in October 2002 where the representatives of 156

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all the stakeholder groups from the three regions met to finalise and adopt the national standard. The MC&I(2002) covers Principles 1-9 of the FSC (for natural forest) which have been elaborated into 47 Criteria and 100 Indicators with their corresponding regional Verifiers for Peninsular Malaysia, Sabah and Sarawak. The Verifiers contained in the MC&I(2002) reflect the requirements necessary to address the social, environmental and economic dimensions pertaining to sustainable forest management. MTCC has set a target date of January 2005 to use the MC&I(2002) nation-wide. It is envisaged that the certification standard will be reviewed every five years following its initial use. Both the standards under the MTCC scheme are performance-based standards for assessing the FMUs for forest management certification. The performance requirements are expressed as „Standards of Performance” in the MC&I(2001) and as „Verifiers” in the MC&I(2002).

The certification process
Figure 1: MTCC timber certification scheme

Department of Standards Malaysia (national accreditation body)

Malaysian Timber Certification Council (timber certification organisation)

Peer Reviewers Forest Management Unit (FMU) Timber Product Manufacturer/Exporter (applicant)

Independent Assessor

Under the scheme which is outlined in Figure 1, MTCC as the timber certification organisation receives and processes applications for certification (from FMUs in the case of forest management certification and from timber product manufacturers or exporters in the case of chain-ofcustody certification), arranges for assessments to be carried out by registered independent assessors, and prepares evaluation reports based on the assessment reports, client’s comments and peer review comments (in the case of forest management certification) which

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are submitted to its Certification Committee who decides on whether an application merits an award of a certificate. The original plan was for MTCC, as the certification body (CB), to be accredited to DSM, which is the national accreditation body in Malaysia. However, as explained in the last paragraph under „Accreditation”, MTCC in the future will serve as the national governing body (NGB) for the scheme, while the independent assessors will take on the role of CBs and will be accredited to the DSM. Requirements for independent assessors MTCC registers and appoints appropriate companies or organisations as independent assessors to carry out assessments for the purpose of forest management as well as chain-ofcustody certification. Companies or organisations wishing to be registered with MTCC as independent assessors have to comply with MTCC’s terms and conditions for registration. A team comprising a minimum of three qualified and experienced auditors is required for forest management certification. Professional foresters with expertise and minimum five years field experience in forest management, or non-foresters with similar experience in fields related to forest management such as ecology, environmental sciences, biology, sociology and forest economics, can qualify as auditors for forest management certification. For chain-of-custody certification, at least two auditors who have the necessary professional training, work and audit experience are needed for the assessments. The auditors should also be familiar with the local wood-based industries as well as with applicable local regulations and documentation relevant to chain-of-custody certification. From time to time, auditors for both forest management and chain-of-custody certification undergo training to update themselves with the assessment procedures and requirements for certification. The list of registered assessors is posted on MTCC’s website. Peer review The peer review process is only necessary for evaluating the assessment report for forest management certification. Normally, two peer reviewers are involved in one assessment and they are appointed by MTCC, based on the FMU being assessed. The basic aim of a peer review process is to obtain a second opinion on the compliance of the FMU concerned with the requirements of the certification standard. Interested individuals are required to meet certain criteria for registration as peer reviewer. They are to have, amongst others, a minimum of five years experience in forestry or expertise related to various aspects of sustainable forest management such as ecology, environmental sciences, biology, sociology and forest economics; the necessary training and work experience to assess the adequacy of the assessment reports; and a good understanding of the certification standard and its related assessment procedures.

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Assessment of FMUs and requirements for consultation with interested parties
FMUs are assessed by the independent assessors to the requirements of the forest management standard (MC&I). The scope of the assessment is on the forest management system and practices within the PRFs of the FMU. The assessment is conducted to evaluate current documentation and field practices in forest management and to assess the level of compliance with the requirements of the standard. This is done through document reviews, communication or consultation with interested parties, and a field assessment. The assessment is conducted by a team comprising a lead auditor and two other auditors. Members of the assessment team are selected based on relevant technical skills to ensure that the team has the expertise to address the main economic, environmental and social aspects of the forestry operations in the FMU. All team members must be independent of the client’s business interests. When conducting the assessment, an opening meeting is held with the client’s management which will brief the assessment team on the forestry activities in the FMU, including on-going activities covering forest management, development, conservation and harvesting. Based on the briefing, an itinerary is decided by the assessment team, which must also include time for consultation with interested parties in the FMU, such as the environmental and social NGOs, local communities, local and national government officials, forestry departments, academic and research bodies, workers’ unions and timber trade representatives. During the visits to various sites within the FMU, the auditors consult the relevant persons who are involved in the forest management practices, which include the forest managers, forest workers and contractors, regarding these practices. This is in order to ascertain the level of understanding of the procedures and management plans, and the level of adherence to the requirements of the standard. Consultations are also held with persons or groups who may be affected by the forest management practices, such as local communities living within or near the vicinity of the forest area that is being assessed. The main aim of such consultations is to obtain feedback on how forest management practices are actually implemented in the field, the practical problems encountered and the results of these practices. During the field assessment, objective evidence is collected to assess the adequacy of compliance with the forest management standard. Following completion of the assessment, a closing meeting is convened, primarily to inform the FMU management of the recommendations of the assessment team regarding the certification decision, to explain major and minor Corrective Action Requests (CARs) and recommendations, and to record any explanations or disagreements by the management on the CARs or recommendations made by the assessment team. Major CARs raised during an assessment preclude the FMU from being certified. Based on the assessment carried out, an assessment report is prepared by the assessor, which includes the details of the major and minor CARs raised (if any) and a surveillance plan for the

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five-year period of validity of the certificate. The assessment report is forwarded to the FMU management and two peer reviewers for comments and feedback.

Chain-of-custody certification
Applicants for chain-of-custody certification are assessed by the independent assessors for compliance against the requirements as stipulated in the MTCC document entitled Requirements and Assessment Procedures for Chain-of-Custody Certification (RAP/COC). Two auditors are involved in the assessment, one being the lead auditor. During the assessment, the following activities are carried out by the assessment team: A review of all pertinent records and reconciliation of the findings, including spot checks of the product on the ground; Inspection of the mechanisms for identification of certified wood-based material, its utilisation, separation between certified and non-certified product; and Reconciliation of the documented procedures with actual practices. There are two systems available for an applicant to comply with the chain-of-custody requirements; i.e. (i) physical separation system; and (ii) minimum average percentage system. The minimum average percentage system allows the applicant to mix certified and non-certified wood in the course of production if specified minimum average percentages of input of certified wood are met. In this approach, the total batch of products can be labelled as certified when the amount of certified material in the input batch exceeds the set minimum average threshold. The minimum percentage for certified material in the different wood-based products would follow these parameters, and is subject to periodic review: (a) Collections of Solid Wood Products The minimum percentage is at least 70% by volume of the wood used in manufacturing of the product, or the collection of products, for the collection to be certified. Assembled Products made of Solid Wood Parts The minimum percentage is at least 70% by volume of the wood used in manufacturing the product for the product to be certified. Chip and Fibre Products The minimum percentage is at least 30% by volume or weight of the new virgin wood chip or fibre used in the manufacturing the product for the product to be certified. Assembled Products Containing Both Solid and Chip and Fibre Parts The minimum percentage must meet the respective thresholds for the components, so that at least 70% (by volume or weight) of the wood and at least 30% (by volume or weight) of the virgin chip and fibre must be certified for the combined product to be certified.

(b)

(c)

(d)

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Issuance of certificates and public information
For forest management certification, the assessment report, together with the FMU management’s comments and peer review reports, are submitted for the decision of the Certification Committee, which is made taking also into consideration the evaluation report prepared by MTCC. Similarly, for chain-of-custody certification, the Certification Committee makes the appropriate certification decision based on the recommendation of the assessor as stated in the assessment report and the applicant’s comments, and also taking into consideration the evaluation report prepared by MTCC. Where a decision has been taken by the Certification Committee to issue a certificate, the applicant will be awarded, as appropriate, a Certificate for Forest Management or a Certificate for Chain-of-Custody, together with the terms and conditions for the issuance of these certificates. A number is given to each Certificate issued by MTCC. For chain-of-custody, a schedule detailing the scope of certification (i.e. the type of product certified) will be shown in the Certificate. A Certificate for Forest Management or Certificate for Chain-of-Custody is valid for a period of five years. Following certification, the continued compliance of the certificate holders with the relevant certification standards is verified through regular surveillance visits by the independent assessors. Surveillance visits are conducted once every six to 12 months for forest management certification and once every six months for chain-of-custody certification, for the first two years. Subsequently, the surveillance visits are conducted annually, unless there have been major CARs identified in the surveillance visits of the second year. The list of holders of the Certificate for Forest Management and Certificate for Chain-of-Custody are put on MTCC’s web site. The web site also provides summaries of the assessment reports of the FMUs which have been awarded the certificate. In addition to ensuring the transparency of the MTCC scheme, putting such information in the public domain serves to encourage feedback from the public regarding the forest management practices of the FMUs concerned, thus assisting MTCC to monitor the FMUs to ensure continued compliance to the certification standard.

Labelling and logos
The MTCC logo on a product provides an assurance that the material used originated from forests which have been certified by MTCC. The logo is copyrighted and owned by MTCC, and has also been registered as a trademark. The use of the logo has to conform to the rules and procedures specified in the MTCC Logo Guide for Certificate Holders, which details the terms and conditions, various permitted on-product and off-product uses, procedures for getting approval to publish, print or otherwise disseminate material and on reproduction of the logo.

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Labelling and logos

Only certificate holders are allowed to use the MTCC logo on their products. The use of the MTCC logo requires the inclusion of the following key elements (Figure 2): The MTCC logo The MTCC copyright claim, i.e. ‘© 2000 Malaysian Timber Certification Council’ Certificate for Forest Management or Certificate for Chain-of-Custody number of the certificate holder An approved on-product or off-product statement Mean minimum percentage of MTCC-certified material of the total wood, chip or fibre used in making the product or in the batch manufacturing process (for products using the minimum average percentage system) Figure 2: Key elements to be included on a label bearing the MTCC logo

Trademark Symbol

On-Product Statement

At least 70% of the wood used in making this product comes from forests independently certified according to the rules of the Malaysian Timber Certification Council SM 73% Minimum

Certificate for Chain-of-Custody No. 008 © 2000 MALAYSIAN TIMBER CERTIFICATION COUNCIL

Certificate for Chain-of-Custody No. MTCC Logo MTCC Copyright Claim

Mean minimum percentage of MTCC-certified material

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MTCC timber certification scheme
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Accreditation
In the present arrangement, MTCC serves as the national certification body (CB) and the independent assessors are registered with MTCC in compliance with certain terms and conditions. As the CB, MTCC is the authority in charge of issuing the Certificate for Forest Management and the Certificate for Chain-of-Custody which bear the MTCC logo. As mentioned earlier, in future, the independent assessors will take on the role of CBs who will be responsible for the issuance, suspension and withdrawal of certificates. The CBs will be accredited to the DSM which is the national accreditation body (AB) and is affiliated to the International Accreditation Forum (IAF). MTCC will then serve as the national governing body (NGB) for the scheme, with responsibilities such as issuing of licences for the use of logo by certificate holders, keeping a register of the on- and off-product logo users, publicising and promoting the MTCC scheme, and coordination of the development of standards for forest management and chain-of-custody.

Acceptance and perceptions of the scheme
The phased approach taken by MTCC in implementing its timber certification scheme has received broad support from most of the local stakeholder groups. This is reflected in the large number of organisations which have attended and participated actively in the regional and national-level consultations coordinated by MTCC. However, a small group of social NGOs have excluded themselves from the standard-setting process when MTCC indicated that it was not in a position to meet certain „demands” made by them because some of these „demands” required amendments to the relevant state legislation, and while the other „demands” could be included in the certification standard, nevertheless the extent and manner of their inclusion should be the subject of discussions with the other stakeholder representatives as part of the standard-setting process. The main reason why these NGOs are opposing the MTCC scheme and timber certification in general is that they are mainly concerned in protecting the native customary rights of the local communities. One key requirement for certification is security of tenure over the forests, which is normally achieved by gazetting the forests as PRFs. The process of gazettement is however seen by these NGOs as extinguishing the native rights of the local communities over the forests. The NGOs concerned nevertheless continue to be invited to participate in the various consultation processes related to timber certification which are coordinated by MTCC. Based on the broad support given to the MTCC scheme, eight FMUs in Peninsular Malaysia and one FMU in Sarawak have undergone assessment, following which the eight FMUs in Peninsular Malaysia have been certified. The number of applicants for chain-of-custody certification has been steadily increasing since the operation of the scheme, clearly indicating that more timber companies are wanting to be certified so as to fulfill the demands from their overseas buyers for certified timber products from

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Information about the scheme

Malaysia, especially from buyers in Europe. However, many other timber product manufacturers and exporters are still reluctant to apply for chain-of-custody certification as they feel that their overseas buyers are not willing to pay a higher price for their certified timber products, despite the extra effort and expenses that they have to put in to achieve certification. The Danish Ministry of the Environment has given recognition to the MTCC scheme by including it as one of the accepted certification schemes in its document entitled Purchasing Tropical Timber - Environmental Guidelines, describing the MTCC certificate as providing a good guarantee of legal forest management, on its way towards becoming sustainable (DANISH MINISTRY OF THE ENVIRONMENT 2003). The report commissioned by the UK Central Point of Expertise on Timber has also concluded that the certificate issued by MTCC provides the assurance of legally harvested timber (UK DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS 2004).

Current status
By the end of October 2004, eight FMUs in Peninsular Malaysia and one FMU in Sarawak managed by a privately-owned company covering a total of 4.73 million hectares of PRFs (or 33% of Malaysia’s total PRFs) have been awarded the Certificate for Forest Management. A total of 55 timber companies have been awarded the Certificate for Chain-of-Custody. The first shipment of MTCC-certified timber was exported in July 2002 to The Netherlands. Since then, MTCC-certified timber has been exported to other countries, including Belgium, Germany, the United Kingdom, France and Australia.

Information about the scheme
Further information about the MTCC timber certification scheme can be obtained by contacting the following address: Malaysian Timber Certification Council, 19F, Level 19, Menara PGRM, No. 8, Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia. Tel: 603 9200 5008 E-mail: mtcc@tm.net.my Fax: 603 9200 6008 Website: http://www.mtcc.com.my

Notes
1

The NSC is a multi-stakeholder committee that was formed as a result of the decision made at the MTCC-FSC Workshop on Forest Certification that was held in December 2000. The NSC was formed to facilitate the cooperation between MTCC and FSC primarily in the development of the standard for

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forest management certification based on the FSC’s Principles and Criteria through regional and national level consultations amongst all the stakeholders in Malaysia. It should be noted that the NSC is not part of the governance structure of the MTCC. The MTCC plays the role of the secretariat to the NSC by facilitating the NSC standard setting process.

References
DANISH MINISTRY OF THE ENVIRONMENT (2003): Purchasing Tropical Timber - Environmental Guidelines. The Danish Environmental Protection Agency and The Danish Forest and Nature Agency, Copenhagen. UK DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS (2004): Environment Minister Elliot Morley Announces Move To Ensure Government Sourcing Of Legal And Sustainable Timber. News Release ref: 451/04, 9 November 2004, London.

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Demystifying the jungle of competing certification schemes
Nancy Vallejo / Pierre Hauselmann

Demystifying the jungle of competing certification schemes
Nancy Vallejo / Pierre Hauselmann

Introduction
In autumn 1993, a small organization was launched in Toronto, during a somewhat tumultuous meeting. This was the Forest Stewardship Council (FSC). Nobody at that time knew where this organization would be 10 years in the future, and probably not many realized the dramatic and lasting paradigm shift FSC was bringing with its inception. Maybe for the first time, building on the concepts of sustainable development as expressed in Rio de Janeiro the year before, representatives from the business sector, social groups and environmental non-governmental organizations (NGOs) had agreed to develop together a mechanism intended to use market forces to foster sustainable development. The story began in the late 80’s, when the campaigns for a tropical timber boycott started to show their limits, and when the Rainforest Alliance in the USA launched its certification programme SmartWood. By the early 90’s, it became apparent that the growing number of unsubstantiated claims of sustainable forest management was shadowing more serious attempts to identify it, and use it as a market argument. Accreditation, i.e. the recognition by a recognized authority that a body is competent to carry out certain tasks, appeared to be the answer to this problem. But at that time, forest management certification seemed to most as a good, but completely unrealistic idea. Existing accreditation bodies, as they exist in many countries, did not seem to see a good business case in this new work area and declined to embark on such a marginal activity. This lack of interest stimulated the creation of this new body, FSC. Although the general view was that FSC was doomed to failure in the short term - many international conferences were set up to demonstrate that forest certification was not possible while already several million hectares were being certified under the FSC accreditation - it not only survived, but grew, and stimulated an important movement towards certification, far beyond the sole forest domain. To date numerous schemes have been created in very different sectors, from agriculture, marine and fresh water fisheries, health and safety, labour and workers’ rights, fair-trade, organic agriculture1, mining, and many others. While some schemes have appeared before FSC, e.g. the International Federation of Organic Agriculture Movements (IFOAM), which was founded in 1972, some are the direct outcome of FSC’s growing success, e.g. the Marine Stewardship Council (MSC). It can be argued that FSC’s high visibility has given an important impetus to the whole environmental and social certification movement. FSC’s own success also stimulated resistance, some of which was expressed by the launch of competing initiatives, often coming from the forestry sector industry itself. Significant resources, much larger than FSC’s own, were spent, trying to out compete FSC, but without succeeding in materializing its doom. The reasons why FSC is still here, despite its own weaknesses, its sometimes chaotic development and the fierce competition it has to face may lie in the advent of a new global governance order. This is the theme of the first chapter of this article.

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A new governance order

The arrival of new schemes, stimulated by FSC’s success, brought problems of its own, one of which is a new multiplication - although still limited - of different claims with different credibility to different actors, a phenomenon FSC itself had been set up to avoid. The resulting segmentation of the market means that producers must now choose which system to follow if they don’t want to multiply the cost of compliance and certification. While big companies may cope with this situation rather easily, it is more problematic for small producers, particularly in the developing world. The paradox is that some of the systems competing FSC have exactly been set up to better accommodate the need of small producers, who now have several systems to comply with. To attempt to clarify the situation and promote harmonization between the certification systems, a certain number of frameworks for analysing certification schemes has been developed by different actors. This has yet to bear results and what some have called the logo war is still going on. This is the subject of the second chapter of this article. Other sectors, for example organic agriculture and coffee also face the problem of different schemes and approaches to certification. However, the antagonism that has developed in the forestry area does not seem to be reaching the same levels in other sectors. The third chapter takes the example of coffee and reviews some of the mechanisms used to manage cohabitation. The final chapter brings together the discussion of the former ones and wonders if there is at all a jungle of certification systems. It also comes to the conclusion that competition is natural, it is here to stay and maybe the best driver for overall improvement of the forest certification movement. Throughout this article, the words certification schemes, certification systems and certification programmes are used. While they indeed introduce some technical distinctions in terms of scope, the differences are small enough not to change the meaning of this paper and thus, the words are used synonymously.

A new governance order
FSC has not only demonstrated resilience against difficulties and adversity, and stayed alive as an organization; it is continuously growing and improving and its success has stimulated the emergence of several fiercely competing schemes. This has anchored forest certification as a phenomenon that is here to stay. FSC being a small and chronically under funded organization, this situation cannot be related to its intrinsic strength. Reasons must be sought elsewhere. One of the explanations may lie within the forces that drive globalization and the implication it has on global governance. Governance is defined as: „the sum of the many ways individuals and institutions, public and private, manage their common affairs. It is a continuing process through which conflicting or diverse interests may be accommodated and cooperative action may be taken. It includes formal institutions and regimes empowered to enforce compliance, as well as informal arrangements that people and institutions either have agreed to or perceive to be in their interest”

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(Commission on Global Governance 1995: 2 cited in BURGER / MAYER 2003. 50). This entails two key components for the legitimacy of a governance system: the acceptance by the public and private organizations of a framework within which to manage their business a process of negotiation and power balancing (VALLEJO / HAUSELMANN 2004) In a public system, governance is state centered, i.e. the state has the power. But this power can be shared with others (CASHORE 2002). Globalization has induced such a shift of power. FRANKEL (2003) explains that the establishment of the European Economic Community (EEC) in 1958 was intended to boost trade between the participating countries. Governments were ready to drop tariffs to help this to happen. Dropping tariffs was diminishing a direct source of revenue for the states, but by helping multilateral trade to happen more easily, it was estimated that the loss would be more than compensated for by the increase of trade and associated wealth. Dropping tariffs has no impact on national sovereignty and the measure was not changing the governance order. However it soon became apparent that non-tariff barriers are possibly more of a hindrance to trade than tariffs themselves. Amongst these, technical regulations come first. Different regulations in different states oblige manufacturers to adapt their products and production methods to each market. As dropping tariffs was not succeeding in creating the desired common market, it was necessary to harmonize regulations. But the need to harmonize regulations to help trade flow between the countries meant that the sovereign right of states to decide their own laws was questioned, at least for technical matters. Harmonization took place through the New Approach Directive (EEC 1985). This Directive instructed governments to refer to standards developed by the European Committee for Standardization (CEN, Comité Européen de Normalisation) in their technical regulations instead of setting the norms themselves. This was in practice a devolution of power from governments to a private, supra national standardization body and the introduction of a new paradigm in terms of governance. The technical capacity of experts, and the balance of interests in the development of standards became an acceptable substitute for an elected government and its administration, a new governance order. At the global level, the problems and solutions are similar. To avoid unnecessary barriers to trade the World Trade Organization (WTO), through the Agreement on Technical Barriers to Trade (TBT), requires governments to refer to international standards. The Agreement does not specify any standardization organization, but instead refers to some general principles that international standard setting bodies should follow. Among these are the need to be open to representatives2 of at least all WTO members, and decision-making mechanisms based on consensus. The assumed participation of experts representing different economic, public and geographical interests on an equal basis was supposed to create standards acceptable by all, thus not creating unnecessary barriers to trade. Analyzing the extent to which this process works according to expectations is outside the scope of this paper. Suffice to mention that questions are frequently raised concerning the real equality of participation of the different interests in international standardization bodies, including by the TBT Agreement itself at each of its triennial reviews. Other trade limiting factors beyond standardization have also become

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apparent, notably the mechanism for assessing conformity with the standards and the recognition in different parts of the world of the results of these conformity assessments. Besides the limitations of the system, this request put on most governments on Earth to rely on international standards when developing regulations has de facto meant that international standardization has become a new governance order. The development of, and reference to international standards for forest certification by certification systems is part of this new governance order. While this shift of power from government to private standardization bodies was intentional for the sake of better performing markets, another shift has occurred that was maybe less foreseen. This is the governance based on the legitimacy created by multi-stakeholder processes. CASHORE (2002: 505) identifies two kinds of authority, depending on the source of the policy making. One is the traditional state centered given authority already mentioned, the other the private governance systems, which do not get their authority from the state but from the market . He further postulates that „the viability of any NSMD [Non-State Market Driven] governance system will be largely determined by whether it can achieve ’legitimacy’ to operate in the domestic and international spheres”. SUCHMANN (1995 cited in CASHORE 2002) understands legitimacy as „a generalized perception or assumption that the actions of an entity are desirable…” This perception is driven by the different stakeholders participating in such a governance process. Because, as demonstrated in an Edelman Public Relations Worldwide research (STRATEGYONE 2000), „Non-Governmental Organizations such as Greenpeace and Amnesty International have become the new ‘super brands’ in global governance, they have earned a far greater level of trust than some of the most well-respected global multinational companies such as Ford, Microsoft, G-7 [group of the seven major industrial countries] governments and global media.” This makes NGOs a central stakeholder group in NSMD governance. To different extents and with support from different stakeholder groups, all forest certification schemes operate within these new macro policy trends of NSMD governance and standardization. While different certification bodies or schemes may disappear in the short term due to external reasons (e.g. economic considerations), the two big certification families, the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification schemes (PEFC) will most probably remain active in the medium to long term.

The need(s) for harmonization
While it is debatable whether a real proliferation of forest certification systems is occurring, there are clearly two big families. On the one hand, the FSC, with 34 national initiatives globally, brings together under its accreditation system 14 certification bodies operating worldwide under a similar set of basic requirements (the accreditation requirements). On the other hand the PEFC groups 27 national schemes, operating in these 27 countries. The existence of these two families creates a burden for timber product manufacturers and retailers, but principally and mostly to producers. Access to a growing number of markets is facilitated by certification, but adapting the management to certification requirements and the

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certification itself can be costly. Responding to the requirements of two certification systems significantly increases costs, but choosing one over the other diminishes market access opportunities. To draw a parallel with what is happening in the organic agriculture sector, a recent study by the United Nations Conference on Trade and Development (UNCTAD) demonstrates that in many situations, the price premium gained by selling ‘organic’ is eaten by the necessity to fulfil different sets of criteria and undergoing different certification exercises to access either the European, the Japanese or the United States (US) markets (WYNEN 2003). Big companies can afford several certifications. In fact, often they get engaged with several processes, in addition to non-forest related ones. Examples include quality and environmental management systems, social accountability, etc. The issue becomes crucial for smaller organizations. It can even become a trade barrier keeping the most disfavoured actors (e.g. Small and Medium Enterprises (SME) in developing nations) outside the market of certified goods. There is thus a strong rationale for trying to harmonize requirements and procedures as much as possible. These rather objective arguments in favour of harmonization have, however, been overshadowed by many competition related and even emotional elements. One such element is the fact that NGOs in their majority support the FSC system, which they consider a better tool to promote their objectives than the PEFC family. Here is not the place to identify whether they are right or not, but the simple fact that they have this perception creates a higher legitimacy in the eyes of the public at large for FSC than for PEFC. To a large extent, FSC is thus dependent on the support of NGOs and may hesitate to enter into negotiations that could be interpreted by them as watering down the system. The impact of this NGO support, and a further demonstration that they are a key stakeholder can be seen on the shelves: while more hectares have been certified within the PEFC system than within FSC’s, the logo of the latter is almost the only one that is seen in shops. Important efforts have been made by PEFC and its supporters to minimize the perceived differences between the two approaches, trying to push forward talks of mutual recognition between FSC and PEFC. As examples of these efforts, between June 2000 and April 2001, different institutions convened no less than four international meetings. Two similar frameworks for facilitating mutual recognition were developed, the Comparative Matrix of Forest Certification Schemes by the Confederation of European Paper Industries (CEPI 2001), and the International Mutual Recognition Framework by the International Forest Industries Roundtable (IFIR 2001). These attempts have not succeeded in bringing about mutual recognition or even harmonization of some components, but have demonstrated that the cleavage was profound between the supporters of each system. The difficulty to narrow positions has stalled the series of international meetings, an approach that has later evolved into The Forest Dialogue (TFD). The TFD agenda is broader than certification alone, although many of its efforts still focus on it. Different groups have published numerous documents besides the two mentioned above, trying to help understanding similarities and differences between the different certification schemes and systems (e.g. KANOWSKI et al. 2000, MERIDIAN INSTITUTE 2001, NUSSBAUM et al. 2002, WORLD BANK / WORLD WIDE FUND FOR NATURE (WWF) ALLIANCE 2003, METAFORE 2004, OZINGA 2004). These different documents have different audiences in

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mind. For example, the WORLD BANK / WWF ALLIANCE's Questionnaire for Assessing the Comprehensiveness of Forest Certification Schemes/Systems (QACC) is for internal purposes and METAFORE's Matching Business Values with Forest Certification Systems is aimed at helping business buyers to purchase timber products responsibly. Notwithstanding these different audiences, one commonality unites them all: they can be (and are) fiercely criticized by groups from where they have not originated. Two examples show this situation: at the time of publication of the IFIR framework (2001), a joint WWF - Greenpeace press release was titled „Environmental NGOs call for credible forest certification and reject IFIR mutual recognition proposal” (WWF / GREENPEACE 2001) when the World Bank / WWF Alliance launched a test of their QACC, PEFC issued a statement called „World Bank - WWF questionnaire hopelessly flawed - new approach offered by PEFC” (PEFC 2004a) Antagonism remains and does not seem to diminish. It is questionable whether insisting on minimizing the perception of differences or working towards mutual recognition will ever succeed in reducing it. Probably the first occurrence of the need to recognize differences as well as similarities between schemes was reflected in one of the outcomes of a meeting jointly organized in Rome in February 2001 by the Food and Agriculture Organization of the United Nations (FAO), the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ, German Agency for Technical Co-operation), and the International Tropical Timber Organization (ITTO) (FAO / GTZ / ITTO 2001). The following year, NUSSBAUM et al. (2002) published a practical guide for assessing certification schemes where they insisted that organizations wanting to use this guide start by defining their objectives or expectations regarding certification. Indeed expectations, and thus the elements of a certification scheme, may be different depending whether you are, for example, a public authority or a retailer revising your procurement policies or an activist NGO hoping to bring radical changes in forest management. The WORLD BANK / WWF Alliance’s QACC (2003) is putting this recommendation into practice. Its aim is to inform the Alliance on the comprehensiveness of different schemes, in relation with its own objectives. This could be interpreted as a de facto recognition that what is sufficient for the Alliance may not be for others, or vice versa. The World Business Council for Sustainable Development (WBCSD) proposed a slightly different approach, the Legitimacy Thresholds Model (LTM) (GRIFFITHS 2003). This model is intended to „address the pressing issue of certification system proliferation, interaction and conflict.” While the approaches described above suggest that each organization defines for itself what is legitimate in terms of certification, the LTM proposes a multi-stakeholder process to define broad categories of legitimacy, negotiated between the concerned parties. As examples, the model indicates three legitimacy thresholds: a high level to be achieved in order to be „considered credible by defined stakeholder groups, such as customers for procurements”

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a medium level which could involve a limited number of forest management attributes as compared with the high level, and which could be considered legitimate for small owners in developing countries a low level, or minimum threshold, for example legally sourced wood For the system to be operational, certain elements should be in place, including an accepted process to reach agreement on the thresholds and the mechanism to measure them and an agreed rating agency to assess periodically the different schemes. The Forest Dialogue (TFD), „a group of individuals from diverse interests and regions that are committed to the conservation and sustainable use of forests” (TFD 2004a), which was established in 1999, has taken on the WBCSD concept and will „continue discussion on the LTM concept” (TFD 2004b) at its next meeting, held mid-October 2004. To help the discussion, TFD has commissioned a paper „contrasting four approaches to certification system assessment” (WORLD BANK / WWF Alliance QACC, CEPI Matrix, IFIR framework, FERN report [OZINGA 2004]).” The Legitimacy Thresholds Model makes one very helpful proposition: that a framework for assessing the different schemes / systems be agreed by the different stakeholders, thus proposing that a common measurement system (common metrics) should be applied by all. It furthermore reiterates that different organizations may have different legitimacy requirements. However, the proposition may encounter problems for, inter alia, the following reasons: By proposing that broad legitimacy thresholds are accepted through a negotiation process between the different stakeholders, it may simply divide the discussion - and its lack of resolution - that took place on mutual recognition into different parts, as expressed by the high, medium and low categories. To allow the thresholds to be commonly agreed will mean that all elements that are important to each organization need to be included in the assessment framework, but also that none that one organization does not want is incorporated. Considering the history of past negotiations, this is a feat that may prove difficult to achieve. The pressure would not exist, or at least would be much less if the thresholds were left to individual organizations to decide for themselves. The following fictive example may help to clarify this thinking. Imagine the case of genetically modified (GM) trees, a subject that is well known to raise passions. Opponents will probably insist that requirements related to GM tree limitation are incorporated in the assessment framework, and will insist also during the negotiation that all thresholds include some requirement on this topic. GM trees proponents may not care whether there are such conditions in the assessment framework, as long as they have the option to decide that this specific aspect does not enter into their own legitimacy threshold. This could easily be accommodated) if the thresholds are individually set. But this will be significantly more difficult to achieve if the thresholds are negotiated with the GM trees opponents. The interest of GM trees proponents will thus be that no reference is made to GM trees in the assessment framework, something that could probably not be acceptable to opponents.

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Trying to get an agreement on both the metrics and the thresholds for broad categories may thus create a situation where the commonly accepted threshold will not be easier to reach than mutual recognition itself, but furthermore may jeopardize the chances of succeeding in developing a common set of metrics that everyone could accept. Only reaching an agreement on the latter would be a giant step ahead. One further intriguing aspect is the need to now develop analytical papers to analyze prior analytical works on forest certification. Referring again to the history of forest certification, firstly, there were numerous unverified claims. The Forest Stewardship Council was created to harmonize and identify sufficient quality (or legitimacy). Then other schemes or systems entered into play, which has created a new area of disagreement and confusion. Firstly one, then other analytical frameworks have been developed to show similarities and differences between schemes. However, while the number of such frameworks grew, so did confusion and antagonism. We are now witnessing the arrival of a new generation: the analytical frameworks to analyze analytical frameworks. Will this be the end of the spiral? Or just the beginning of another round in a series of papers that will be accepted only by those who can see their own perceptions reflected in these papers?

Other sectors, similar problems
It is often heard that there is a proliferation of certification schemes and systems for forest management. As mentioned above, most if not all fit into two families, from which a producer has to choose: The Forest Stewardship Council (FSC), with 37 National Initiatives, 14 accredited certification bodies, operating worldwide (currently forest management certificates have been awarded in 61 countries (FSC 2004a, 2004b). Several programmes for helping producers to achieve management operation certifiable under the FSC system, such as the Tropical Forest Trust can be included in this family. The Programme for Endorsing Forest Certification schemes (PEFC), which has currently 27 members with certificates in 13 European countries (PEFC 2004b). Several non-European members are in the process of being endorsed by PEFC, which will increase the number of countries that have PEFC certificates to, at the maximum, the number of members. A possible third family is not considered here, the Environmental Management System (EMS) certification, either under the European Eco-Management and Audit Scheme (EMAS) or ISO 14001, because they are not specific to forestry. Responsible management certification exists in other fields than forest. It is for example well developed in the agriculture domain and a cross fertilization and learning process may help all to improve. The situation of a forest producer is compared below with the one with which a coffee producer is confronted.

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Certification in the coffee sector can be: Organic: The organic certification market is broadly divided into regulations in the EU, USA and Japan, all different and requiring different inspections, but unavoidable to enter the respective markets under the denomination ‘organic’ and IFOAM (International Federation of Organic Agriculture Movements), which has the favour of civil society and is, by extension, well appreciated by certain retailers. Rainforest Alliance Sustainable Agriculture certification, which takes a more holistic approach and tries to balance environmental, social and economic elements. Certain important multi-national roasters demand this certification. EurepGap3 / Utz Kapeh4: This certification system has been developed by all the main retail chains in Europe, and is de facto a necessity to reach their market. The EurepGap focuses on food safety and agricultural methods ensuring good and safe agricultural products. FairTrade: Fairtrade certification provides an important price premium for mainly small producers if they comply with a set of principally social requirements - it is the only system that incorporates fixed prices in its standards. However, although FairTrade markets have had for several consecutive years a two digit annual growth rate, the demand is limited, and typically certified producers can only sell a small part of their certified production under the FairTrade regime. Starbucks: As a coffee roaster the North American company has the particularity to sell its coffee to end consumers as a drink, with a high added value compared to green coffee. This allows it to buy at higher prices than market, provided producers comply with a set of specific environmental and social requirements that fit into the corporate social and environmental policy of the company. The Common Code for the Coffee Community (CCCC): Developed initially through a collaboration between GTZ and the German Coffee Association, the CCCC is well supported by all the international traders and roasters. This could be seen as an answer from the latter to the control by retailers through the EurepGap system. The CCCC is still in its development phase. The list above is not exhaustive, but mentions initiatives that may have most impact on trade. Many others relate to shade grown coffee. As can be seen, a coffee grower needs to decide between at least nine major initiatives which one(s) will bring him most benefits, as he will probably not be able to afford to comply with and be verified against them all. The CCCC initiative, as its name suggests, proposes a common baseline for all other approaches, upon which they could build. One expected benefit would be that once implemented and verified, this baseline would not need a different management system nor to be controlled again to access other possibly more demanding certification, thus avoiding costly duplication. Since the implementation phase of the CCCC initiative has not started yet, whether it will be successful or simply add another verification system on coffee producers remains to be seen. While an analysis of the strengths and weaknesses of the initiative falls outside the scope of this article, there are several elements that make this project relevant to this discussion:

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it is about harmonization several other and potential competitor schemes, including from the NGO side5, participate in the elaboration of the initiative several campaigning social and environmental NGOs are part of the process6 (CCCC 2004a) The CCCC initiative has succeeded, at least for the time being, in bringing together the majority of the coffee trade and industry, some big and small producers, different competing certification schemes, and NGOs to discuss and develop a commonly acceptable mainstream verification scheme (CCCC 2004b). This has never been achieved in the forest certification debate. It is thus interesting to try to identify the key elements that have allowed this to happen. The ‘coffee crisis’ which has seen coffee prices plummet in recent years, thus destabilising the revenue of millions of farmers has created a sense of urgency to act amongst most actors. This background is not transferable to the forest sector where even if low, prices are more stable. The presence of the most important actors in the coffee trade and industry, representing together the vast majority of the world coffee trade7, clearly sends the signal that this initiative cannot be ignored by anyone involved in the coffee sector. This situation may not be easily transferable to the forest sector, which is more fragmented than the food sector. The 4Cs initiative was developed as a ‘mainstream’ approach. As such it does not try to supplant other initiatives, only to provide a common ground. It is thus an opportunity to streamline the different verification and certification systems and could favour the overall success of these approaches. It places itself outside the competitive ground of certification. It was developed from the onset as a business-to-business (B2B) declaration scheme, with no on-product labelling (CCCC 2004c), thus placing itself outside the competitive ground of product labels. This last point may be the most important one. These are in our view the four primordial elements that have allowed the CCCC discussion to happen in a reasonably non-conflictive way. On these, the two that may be applicable to the forest certification debate relate to competition. By respecting the niches8 of the other certification schemes, the CCCC initiative has been able to bring the different groups together and avoid a ‘logo war’ where all camp on their position. Could this be transferred to the forest sector?

Recognizing differences
The need to recognize differences between the different forest certification systems has, as mentioned above, been recognized for some time. What the example of the coffee sector tells, is that this differentiation may need to go further than the set of requirements on forest managers and the certification methodologies. It should be extended to the recognition that the clients9 of the different systems may not be the same. If clients are not the same, the messages and their supports (e.g. on-product logo) may need to be different.

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The steps taken by TFD and the Legitimacy Thresholds Model described above could be initial steps in this direction, with the caveat already mentioned. Admitting that different legitimacy thresholds can co-exist, is actually recognizing that there are different needs expressed by ‘certification consumers’ And there are as many market niches as there are needs. It is remarkable that the two forest certification families, FSC and PEFC have different sets of supporters. Very broadly speaking FSC is supported by NGOs and PEFC by the timber producers. Of course this is a generalization and there are some NGOs supporting individual schemes in the PEFC family and producers in favour of FSC. But it is also remarkable that this fact does not keep the two systems from aiming at the same market segment with similar claims and want to be the one size that fits all. It might be worth investigating if this is not a wrong judgement on the part of the schemes themselves. Could the fact that PEFC seems to be the preferred system at the lower end of the distribution chain (supported by producers) mean that its main clients are processing companies, thus making PEFC a perfect candidate for B2B communication? Could the fact that FSC is apparently preferred towards the upper end of the distribution chain (supported by NGOs whose leverage lies with consumers) mean that it is best suited for being used as an on-product communication mechanism? Certification systems should maybe sit together, without being under the pressure of the many external parties trying to influence them, and try to identify if their respective clientele is different. If that was the case, maybe their main business falls into different segments of the market. Maybe after all, FSC and PEFC need not be as much in competition as they are? By identifying and focusing on their own comparative advantages, each would probably end up better off. Finally, disengaging from a fierce competition might help the two systems to identify without passion if and where they have complementarity and find mechanisms such as bridging documents10 to simplify access to the two certifications. But this could only happen if clear niches have been identified and agreed upon. In this respect, it is worth noting that it is a recognized business strategy by certification bodies to provide more than one certificate with one audit. This is happening in other domains, for example with ISO 9000 and ISO 14001 certification and this trend starts to appear in the forest sector: some certification bodies offer both FSC and PEFC11 certification. The question for certification systems is whether they want to have some control over the process or whether they will let it happen organically, through market forces, but maybe in a less harmonized and structured way. Of course, it may also turn out that a similar message, for similar audiences needs to be provided by both systems. As recognized by the World Trade Organization in its third triennial review of the Technical Barriers to Trade Agreement, on the topic of harmonization and mutual recognition agreements (MRA), there are many reasons why collaboration, not to speak of MRA can be difficult to achieve, including the lack of „tangible economic benefits, interest of stakeholders, support from key players;

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underlying compatibility in the regulatory systems of the potential MRA parties; and sufficient resources for MRA negotiation and implementation” (WTO 2003: § 39). But the very exercise of identifying the respective niches through a collaborative approach may help at least to put some order in the rules of the competition game.

Demystifying the jungle
As a conclusion, this chapter reviews what can constitute the ‘myth’ of the jungle. Is there a jungle at all? The word ‘proliferation’ is frequently appended to ‘forest certification system’. This to such an extent that most often, the question whether this proliferation is a reality is not raised anymore. As indicated above, most, if not all certification schemes belong either to the PEFC or the FSC families. Within PEFC, the connection between schemes is done through mutual recognition of participating schemes, while in the FSC system the link is established through an accreditation programme, supposing mutual recognition between the accredited bodies. This situation, at least compared with the complexity encountered in the coffee world, seems rather straightforward. It is indeed arguable that two is too small a number to either call it ‘proliferation’ or seeing this as the typical diversity of the jungle. In this perspective, the myth is the existence of the jungle itself. However, positions are so polarized between the supporters of the two systems, as demonstrated by the press releases mentioned above, that it is difficult to have a neutral stance in the debate and any observer is quickly labelled as pertaining to one camp or the other. The competition between the two systems is fierce, and the rules of the game ill defined. In this perspective, yes, it can be argued that the law of the jungle is currently ruling the relation between the two camps. There is some likelihood that this ‘jungle’ would appear more as a gentle grass field if the two camps could examine where competition occurs and where it does not and build on this to identify complementarities and specificities. If the different actors could take a step back and try to analyze the customer base of each certification system, probably enough differences would be spotted to allow the identification of the specific niche of each system. This is not to say that the niches would not overlap at all, but it is imaginable that a significant part would not fall into the competitive domain. Sending a clear message about this would be most beneficial for the producers who would have on the one hand a better understanding of the services provided by each system, and on the other hand could tap into this complementarity to avoid the duplication of certification procedures - and costs. Although it is questionable whether there is a jungle of forest certification systems, the argument so far is that fierce and not always fair competition12 is creating the perception of a jungle. Thus, removing competition would remove the jungle. Is it feasible? And is it desirable? Completely removing competition between PEFC and FSC is not likely to ever happen. Even if they were to agree, as suggested above that the former should focus on B2B and the latter on 178

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consumer oriented claims, they would still need to position themselves as better covering the need of both the organizations looking for certification and the people to whom the claim is addressed. Both will need to convince forest producers to get certified, and consumers that their system is legitimate for what it wants to achieve. If only for this reason, a certain level of competition will always exist between the two systems. What this article suggests, however, is to try to identify: where competition does not need to occur where it needs to happen ultimately maybe fairer rules of the game Reduced at its simplest expression, certification is only a tool to credibly communicate a message. But if certification is a tool, there is no evident reason why this tool should not be submitted to the same pressures as other tools or products. If a company develops a good product, quickly others will imitate this product, building on the image of the original and trying to incorporate in theirs only what improvement or modification is needed to differentiate it from the original and attract customers. The original product will soon need to adapt to maintain its edge and/or create a new one. This process is probably one of the most powerful engines behind improvements and better service to customers and consumers. This is exactly what competition is about, this is what it does to forest certification as to any other product or service and it has already engaged both systems in significant overhauls. PEFC revised its entire structure between November 2002 and October 2003, answering some of the concerns of its critics and FSC just adopted a completely new approach to the use of its logo, making it easier to apply for companies (FSC 2004c). Could it be that what is needed is a saner competitive environment, not to insulate the systems from competition and its driver towards continuous improvement? Demystifying the jungle of forest certification systems turns out to address several myths: the myth of proliferation. There are only two certification families the myth that the existence of different systems is overall detrimental the myth that the systems need, as they currently do, to send about the same message, to the same audiences and using the same supports (e.g. on-product claims) Resolving this last point may be the key to a more harmonious, if not harmonized co-existence between the certification system families.

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Notes
1

The International Federation of Organic Agriculture Movements (IFOAM) was founded in 1972, thus long preceeding FSC, but it can be argued that its success is relatively recent and has been stimulated, at least partially, by FSC’s own visibility. Representatives need not be government delegates but can be experts from the said countries. Euro-Retailer Produce Working Group (EUREP) and Good Agricultural practices (GAP) Both schemes have recently entered into a mutual recognition agreement and can thus be considered as one. Utz Kapeh and Rainforest Alliance Oxfam, the FoodFirst Informations- und Aktionsnetzwerk (FIAN). Greenpeace accompanied the process until shortly before the launch of the draft 4C code in September 2004. An issue over genetically modified organisms (GMOs) made that they withdrew from the process (GREENPEACE 2004). Including Kraft, Nestlé, Neumann, Sarah Lee, Tchibo, Volcafé. To be understood as the ‘biological’ niche - the specific scope of each, and not in terms of small market size. In the sense of the people to whom the certification claim is addressed. A document that identifies commonalities and additions, allowing for example that certification under one system can be recognized by the other as fulfilling at least some of its own requirements. To be understood in a broad sense, for example including the US Sustainable Forestry Initiative (SFI), which is a PEFC member. Acts of competition may not come from the certification system themselves, but also from their supporters.

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References
BURGER, D. / MAYER, C. (2003): Making Sustainable Development a Reality: The Role of Social and Ecological standards. GTZ Programme Office for Social and Ecological Standards, Eschborn. CASHORE, B. (2002): Legitimacy and Privatisation of Environmental Governance : How NonState Market-Driven (NSMD) Governance Systems Gain Rule-Making Authority in Governance. in: International Journal of Policy, Administration and Institutions, 15 (4), Blackwell, Malden, Oxford. CCCC (2004a): Steering Committee. Common Code for the http://www.sustainable-coffee.net/download/cccc-steering-committee.pdf. Coffee Community

CCCC (2004b): Sustainability in coffee growing, processing and in trading of raw coffee. Common Code for the Coffee Community http://www.sustainable-coffee.net/project/index.html. CCCC (2004c): Common Code for the Coffee Community. 9 September 2004 version, Common Code for the Coffee Community http://www.sustainable-coffee.net/download/4c-drafts/commoncode-en.pdf. CEPI (2001): Comparative Matrix of Forest Certification Schemes. Confederation of European Paper Industries, Brussels. EEC (1985): Council Resolution of 7 May 1985 on a New Approach to technical harmonization and standards, European Economic Community, Brussels. FAO / GTZ / ITTO (2001): Seminar on 'Building Confidence Among Forest Certification Schemes and their Supporters'. 19th and 20th February 2001, Rome FRANKEL, C. (2003): Standardization: policy transformed. Presentation made at the „Green wishes to Standardization” conference October 23rd, 2003, Copenhagen. FSC (2004a): FSC Certified Forests list October 2004. Forest Stewardship Council, Bonn http://www.fsc.org/keepout/content_areas/77/55/files/ABU_REP_70_2004_10_04_FSC_Certified_Forest.pdf FSC (2004b): FSC accredited National Initiatives (October 2004). Forest Stewardship Council, Bonn. http://www.fsc.org/keepout/content_areas/77/77/files/5_1_2_2004_10_21_FSC_National_Initiatives.pdf FSC (2004c): FSC on Product Labelling requirements. FSC-STD-40-201, Forest Stewardship Council, Bonn. GREENPEACE (2004): Greenpeace steigt aus Kaffee Kodex aus. News zu Gentechnik, 10.9.2004 http://www.greenpeace.org/deutschland/?page=/deutschland/news/gentechnik/greenpeacesteigt-aus-kaffee-kodex-aus.

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GRIFFITHS, J. (2003): Forest certification systems and the „Legitimacy” Thresholds Model (LTM): World Business Council for Sustainable Development, Geneva. IFIR (2001): Proposing an International Mutual Recognition Framework. International Forest Industries Roundtable. KANOWSKI, P. / SINCLAIR, D. / FREEMAN, B. / BASS, S. (2000): Critical elements for the assessment of schemes: Establishing comparability and equivalence amongst forest management certification schemes. Agriculture, Fisheries and Forestry - Australia, Canberra. MERIDIAN INSTITUTE (2001): Comparative Analysis of the Forest Stewardship Council and Sustainable Forestry Initiative Certification Programs. Washington DC. METAFORE (2004): Matching Business Values with Forest Certification Systems, Portland. NUSSBAUM, R. / JENNINGS, S. / GARFORTH, M. (2002): Assessing forest certification schemes: a practical guide. ProForest, Oxford. OZINGA, S. (2004): Footprints in the forest. FERN, Brussels. PEFC (2004a): World Bank - WWF questionnaire hopelessly flawed - new approach offered by PEFC. Programme for the Endorsement of Forest Certification schemes, Luxemburg www.pefc.org/internet/html/news/4_1154_64/5_1105_1052.htm PEFC (2004b): Statistic figures on PEFC certification. Programme for the Endorsement of Forest Certification Schemes, Luxemburg http://www.pefc.cz/register/statistics.asp 31/8/04. STRATEGYYONE. (2000): Non-Government Organizations More Trusted than the Media, most-Respected Corporations or Government, Edelman PR Worldwide, Chicago, TFD (2004a): About TFD. http://research.yale.edu/gisf/tfd/index.html TFD (2004b): Moving forest certification forward - creating market conditions for informed choice that accommodates system diversity: 2nd International Stakeholder Dialogue on Forest Certification. VALLEJO, N. / HAUSELMANN, P. (2004): Governance and Multi-stakeholder Processes. Institute for Sustainable Development, Winnipeg. WORLD BANK / WWF ALLIANCE (2003): Questionnaire for Assessing the Comprehensiveness of Certification Schemes / Systems, Washington DC. WTO (2003): Third Triennial Review of the Operation and Implementation of the Agreement on Technical Barriers to Trade, WTO, Geneva. WWF / GREENPEACE (2001): Environmental NGOs call for credible forest certification and reject IFIR mutual recognition proposal, 19 February 2001. http://sfcw.org/mutualrecognition/environmental_ngos_call_for_cred.htm

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Nancy Vallejo / Pierre Hauselmann

WYNEN, E. (2003): Impact of organic guarantee systems on production and trade of organic products. Discussion paper for the International Task Force on Harmonization, UNCTAD, Geneva.

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Forest certification: driving force for sustainable development or counter-productive?

Forest certification as a political regulation concept
Nina Bressel / Klaus Dieter Wolf

Forest certification as a political regulation concept in the context of global governance
Nina Bressel / Klaus Dieter Wolf

Introduction: political regulation in transformation
„Statehood in transformation” is undoubtedly one of the issues currently posing the greatest challenge for political science. This is because it involves the loss of importance of traditional government in its hierarchically regulatory form, which requires no more and no less than a redefinition of the role of the state - that is generally seen as the classic subject of study for political science. The possible loss of importance of legally binding state regulation is the result of the social state’s (self-imposed) overburdening itself with more and more regulatory responsibilities in the face of problems which are no longer limited to national boundaries, and which neither the individual state nor the community of states has the resources to tackle successfully. The traditional regulator - the nation state, which is still as far as ever from evolving into a global state - is almost or entirely unable to keep up with the denationalisation of the entities to be regulated. A particular form of state collapse outside the world of OECD (Organization for Economic Co-operation and Development) is occurring increasingly where there is little left that can be described as statehood („failed states”), and institutional deficiencies make effective setting and enforcement of rules impossible. This gives rise to regulatory gaps which can no longer be filled in a conventional way. States have tried various strategies for countering this reduced ability to solve problems. Domestically, the attempt has been made to make good at least part of the loss of direct ability to act through the corporatist integration of social organisations, e.g. institutionalised participation by major associations in formulating and implementing state policy, as a way of accessing previously untapped resources for problem solving1. This itself led to a change in the role of the state compared with the pluralistic ideal of acting as an intermediary between interests, with the various social lobbies competing to influence state policy. The state was no longer a neutral political instance above the social groups, implementing the results of the pluralist process of social decision making, but instead invited these groups to join in a new concept of the state as an activating, negotiating and cooperating entity. The result of this change in roles was to free the relationships between state and society from hierarchies. At the international level the strategy was to pool limited national resources for problem solving in order to recover regulatory competence at a collective level. A number of international regimes reflect these efforts in international governance. However, both these strategies have had only limited success, leading to the emergence of global governance as a concept combining the elements of international cooperation and involving civil society and private sector actors in the regulatory process, giving access to problem solving resources only available to these groups. The resulting forms of partnership under multi-stakeholder initiatives or networking transcend both the pluralist and corporatist models of political interaction between the public and private sectors.

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Table 1: Various organisational forms of political regulation
Organisational form Nature of decision-making, relationship of the state with business and civil society pluralist different social lobbies compete to influence state policy corporatist institutionalised („incorporated”) participation by major associations in consensual formulation and implementation of state policy partnership various forms of horizontal networked cooperation in dialogue

The term „global governance“ is not used solely descriptively, and often has normative force. Its normative content may be rooted in the paradigm of sustainable development, in terms of both its requirements for forms and goals of political regulation. Where nonstatal actors are included as stakeholders in decision making and implementation under global governance, this addresses a basic prerequisite of sustainable political processes - the integration of those affected into dialogue and consensual decision making and implementation. Even more evident are the connections between global governance and the paradigm of sustainable development in their basic goals of, preferably globally, establishing and maintaining ecological, social and economic security today and in the future (see also Brozus / Take / Wolf 2003). The desirability of integrating civil society actors concerned with the general welfare does not seem to raise special problems in either conceptual or practical terms, even if there is a constant issue with their questionable democratic legitimation (at least as it appears in the conceptual framework of the model of a majority representative government). Initially, however, it is surprising - particularly in connection with the concept of sustainable development - to encounter repeated references (for example, in the Preamble to Agenda 21) to the compatibility of the private sector and general welfare2. This surprise is due not least to the fact that the role of transnational companies in the development policy debates since the 1970s has been associated much more - and certainly not entirely wrongly - with causing problems rather than solving them. Even though the neo-liberal swing of the pendulum, which has been one of the key factors in the political regulation debate has gone too far in many ways, it has nevertheless helped cast the role of the economic global players in a rather less prejudiced light. In the field of forest certification, which - as will be shown in more detail below - fits in well with the concept of global governance, private sector actors are already playing a significant role. In this case, the regulatory gap that their integration is designed to fill is the transnational nature of the problem of ecologically, socially and economically sustainable forest management, which exceeds the capacities of the individual nation states. Forest certification operates at the national or even regional level, tackling the problem at its roots. While state regulation falls short of the demands posed by the complexity and dynamism of the interplay between actors in forest management, forest certification systems are much better at dealing with this because they start by getting all those involved around the table. This is the only way to achieve decisions which can be sustained in the long term and are accepted by all involved, so making it possible to close the regulatory gap at both national and international level. At the international level, the regulatory gap is particularly evident where there have already been various attempts to find a solution on a purely intergovernmental basis, within the framework of international organisations 188

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such as the International Tropical Timber Organisation (ITTO) or the Intergovernmental Forum on Forests (IFF). However, this approach has yet to produce any successful breakthrough. This makes it all the more urgent to take alternative forms of political control in which private sector actors also play a significant role seriously, and to look at their possibilities and risks more closely. Taking forest certification as a political regulation instrument, the following section presents three different forms of regulation which arise out of expanding the group of actors to include civil society and private sector actors. These three forms each represent a specific ratio of public and private regulation. Following the initial, purely descriptive review, the second step is an analytical and normative investigation of what requirements cross-border political regulation generally needs to satisfy in order to meet the demands of sustainability. These two steps provide the basis for offering some points of reference for the conception and evaluation of forest certification systems.

Three forms of political regulation
As noted above, we are currently looking at changing models of political regulation that are summarised in political science under the heading „global governance”, which mark a „transition from binding, hierarchical decision-making structures to network-like decision making structures, including a whole range of nonstate actors” PATTBERG 2004a: 3). This puts the focus on three categories of actors - state, civil society and private sector - on the playing field of political formulation and enforcement of regulations. The way they collaborate gives rise to novel (or at least clearly identified for the first time) regulatory approaches, which can be roughly divided into three categories. First, there is still the conventional purely state regulation. In this, regulations are formulated and enforced in a hierarchical and legally binding form, either unilaterally or intergovernmentally, or in international organisations. A second form is known as the multi-stakeholder initiative. This covers regulatory approaches which may include a large number of different actors from all three categories. Combining the different constellations of actors with the conceivable modalities for participation results in numerous variants within this category. The state may appear here as a purely cooperative partner, as the initiator of the regulatory approach, or not at all. This is accordingly a regulatory approach in which compliance is not imposed from above, but is the result of consensual and reciprocal commitment. The third category can cover either purely private-sector voluntary initiatives, such as company-specific codes of conduct or industry agreements, or purely civil-society initiatives, such as networks of individuals and NGOs. This form of regulation is an approach with little binding force3. All three categories can be found in forest management regulation. The ITTO, for example, is an intergovernmental organisation in which civil-society and private-sector actors have the status of observers and advisers, but which ultimately reserves authoritative decision making for the states involved. Another project with state participation is the International Organization for Standardization (ISO)4. However, as government representatives participate in the decision making process to a varying extent from case to case, and as they also comprise only part of the spectrum of actors, this organisation is in fact a multi-stakeholder initiative5. Another member of this category is the Forest Stewardship Council (FSC), although here the state

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instances are not directly involved in formulation (and enforcement) of political regulations, and it is a regulatory partnership within the private sector6. Finally, there is the Tropical Forest Trust (TFT), a purely private-sector regulatory approach, currently with 29 member companies which want to increase the share of FSC-certified wood in their product range. Purely civil-society initiatives, on the other hand, include the Rainforest Action Network (RAN), whose influence on policy is due to effective PR campaigns and information work. The description of the various regulatory approaches shows how they typically diverge from or even reject the traditional model of a hierarchically regulatory state, each in their own characteristic way. In some cases, the state still appears as a cooperative partner, in others it withdraws entirely. To make possible statements about how best to configure political regulation, and what mix of state and private regulation to give preference to, we need suitable criteria for both the emergence and the results of formulating and enforcing regulations. Political regulation must be able to deal effectively with the problem needing regulation. This alone, however, is not enough, as it leaves unresolved the question of who decides what solution to adopt, and how they do so. This brings up the question of democratic legitimation, as political regulation can only be sustainable if it is based on broad acceptance. The following section looks more closely at the requirements that have to be met to satisfy the joint requirements of effectiveness and democratic legitimacy.

Requirements for effectiveness
One way to rate the quality of political regulation is in terms of its effectiveness. Three dimensions can be distinguished here for „measuring” effectiveness. First, regulation must be reliable, actually address existing problems requiring regulation, and create an appropriate coverage of regulation in the specific problem area (output). Second, formulation and enforcement of regulations must satisfy the requirement of robustness, i.e. compliance must be ongoing and the associated behavioural modifications should also survive changing environments, such as market conditions (outcome). Last but not least, there should be a successful solution (aligned with the goals of the regulatory initiative) to the actual problem requiring regulation (impact). Applied to the instrument of forest certification, these requirements mean that the above regulatory gap (at both national and international level) should be actually addressed (output), that companies should not withdraw from certification at the next opportunity (outcome), and that forest management can ultimately be configured to match the paradigm of sustainable development (impact). With regard to the reliability and robustness of political regulation, it might be supposed at first glance that these are heavily dependent on the motivations of the actors involved - for example, company behaviour is highly rational in economic terms, which makes it unlikely that it will be reliable or even aligned with the general welfare in the long term. However, it is important to bear in mind that these actors are not operating in a vacuum, but already have a social and political environment. One example of what happens when market rationality encounters an environment which is complex and steeped in norms is the FSC, which has already succeeded in some instances in integrating different demands by various actors in fora committed to the 190

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paradigm of sustainable development. It is already clear that forest certification as a political regulation element seems to have the potential for both the certified companies and for consumers and other affected groups (such as the indigenous population) of being able to identify problems arising out of forest utilisation and also provide a long term solution. However, it does not do so automatically, and in particular it may not be robust in the long term unless it succeeds in genuinely offering all parties access on an equal footing to decision-making processes. This brief outline of the three dimensions of effectiveness is certainly not a sufficient basis for making a qualified judgment in practice. Even if it were possible to develop practicable yardsticks, there is still the problem of the availability of data. In many cases, this is likely to be virtually impossible, as international and transnational political regulation is rarely so transparent that there would be no problems here. However, the criterion of transparency itself is applicable in evaluating political formulation and enforcement of regulations. It is part of the second criterion for the quality of government, which involves both the legitimacy of the political result that we have been considering so far (output legitimacy) and the democratic legitimacy (input legitimacy)..

Requirements for democratic legitimacy
As already noted above, it is not enough for political formulation and enforcement of regulations to be effective solely in the sense of reliability, robustness and problem solving capability. In addition, there are certain requirements for legitimacy, based on the fact that formulation and enforcement of regulations - whoever is ultimately involved - will almost always have direct or indirect consequences for the general and individual welfare. The process of political regulation must accordingly meet three requirements on the input side of legitimacy. First, it must ensure control of power and rule. It is important here that responsibility should be identifiable and unambiguously defined, and that there are institutionalised mechanisms to bring those responsible to account (procedural requirement). Given the failure of states in the face of globalisation, a functioning market and public opinion could serve as a functional equivalent of lacking institutional checks and balances for the purpose of controlling rule. Second, the criterion of democratic self-determination implies that the principle of congruence should apply, i.e. those who are affected by a rule must (be able to) participate in setting the rule (participatory requirement). At the global level, and given the absence of a global state, this requirement would favour the multi-stakeholder initiative approach (if we stick with the three models of political regulation outlined above), specifically in a form which involves all potentially affected actors as a way of (re)establishing congruence between the authors and target groups for political regulations. The third requirement is material in nature. One possibility of concretising the legitimacy of political regulation in its content as well could be to review the formulation and enforcement of regulations for their congruence with generally recognised standards for general welfare. To do this, however, it is first necessary to identify such standards. In addition, there is the problem of competing standards, and the associated question of the greater or lesser importance of a specific standard. With regard to forest certification, we can say that the requirements of democratic legitimacy and materiality may not be adequately met when referring to the standard of sustainable development, as either the standard itself or the reference to it may not be

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specific enough. However, a general determination of how specific standards or references to them must ultimately be to permit consideration of their material legitimacy is only possible on a case-by-case basis. Forest certification as an instrument of political regulation must also be legitimate in the sense of these three dimensions, as this also involves a collectively binding allocation of values, for example in the form of setting standards for the rights of indigenous peoples. Developing a yardstick for evaluating the democratic legitimacy of forest certification systems is at least as difficult as in the case of effectiveness, as already suggested in connection with the material dimension. Another problem in evaluating the content of forest certification approaches may be the current large number of different certificates, requiring an unreasonable amount of effort on the part of the consumer to evaluate them. However, it is worth tackling the problems of legitimacy, as this is the only way to ensure in the long term that forest certification as an instrument of political control is ecologically, socially and economically credible, and can rely on broad acceptance, making its implementation possible.

Conclusions
The aim of this paper was to outline various forms of political regulation in the context of crossborder problems in the light of the requirements implicit in the paradigm of sustainability which could also apply in the field of forest certification. To evaluate the quality of formulation and enforcement of regulations that are collective (i.e. binding on the target groups for the regulations) the two criteria of effectiveness and democratic legitimacy were expanded along three dimensions. It should be clear that alternative models for control - alternatives to hierarchical regulation by state actors - need not be damaging to the effectiveness and legitimacy of a government, and can on the contrary contribute important resources for political control which complement those available to the state. Such approaches can also assume the function of an imitative or provisional pioneer, leaving open the question of possible subsequent return to (inter)state control. Which mix of public-sector regulation and private-sector (self-)regulation ultimately and under what conditions best meets the requirements of effectiveness and legitimacy are questions which can only be answered in dialogue between research and practice. For forest certification, we can say that it will be able under certain circumstances to close existing regulatory gaps, and through a process of dialogue and learning to bring us closer to the goal of ecologically, socially and economically sustainable forest management. At the same time, it is important to avoid the error of zealous certification involving certificates which do not deserve their name in terms of effectiveness and legitimacy.

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Notes
1 2

For a detailed analysis of the corporatist model, see BENZ 1997. In the past, business administration has taken the lead in looking at the opportunities and risks of private sector concern with the general welfare, under the heading of corporate ethics. For overviews, see DONALDSON 1989, STEINMANN / LÖHR 1994, ULRICH 2001 and SCHERER 2003. For a relatively critical study of the role of companies in political regulation, see BRÜHL et al. 2001. On the differences between the second and third forms of political regulation discussed here, see also PATTBERG 2004. The ISO 14000 series („Environmental management”) and specifically the 14020 series („Environmental labels and declaration”) are directly relevant to forest certification. For case studies on multi-stakeholder initiatives from areas other than forest management and on the role of different actors in these, see e.g. LÖHR 2004 for PUMA or DINGWERTH 2003 for the World Commission on Dams, where the latter also deals with the input legitimacy of global political networks (vid. inf.). However, the state plays a role in FSC which should not be underestimated, as Principle 1 states that forest certification must always comply with national laws and regulations and also international treaties and agreements to which a country is signatory

3

4

5

6

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References
BENZ, A. (1997): Kooperativer Staat? Gesellschaftliche Einflussnahme auf staatliche Steuerung. in: KLEIN, A. / SCHMALZ-BRUNS, R. (eds.): Politische Beteiligung und Bürgerengagement in Deutschland. Möglichkeiten und Grenzen, Bonn, 88-113. BROZUS, L. / TAKE, I. / WOLF, K. D. (2003): Vergesellschaftung des Regierens? Der Wandel nationaler und internationaler politischer Steuerung unter dem Leitbild der nachhaltigen Entwicklung. Opladen. BRÜHL, T. et al. (eds.) (2001): Die Privatisierung der Weltpolitik. Entstaatlichung und Kommerzialisierung im Globalisierungsprozess. Bonn. DINGWERTH, K. (2003): Globale Politiknetzwerke und ihre demokratische Legitimation. Study for the World Commission on Dams, Global Governance Working Paper No 6, Potsdam/Berlin/Oldenburg. DONALDSON, T. J. (1989): The Ethics of International Business, Oxford. LÖHR, A. (2004): The Changing Role of NGOs for Business: Instruments, Opponents, or Professional Partners? EGOS - Colloquy July 1-3, 2003, Ljubljana. PATTBERG, P. (2004a): „Private-Private Partnerships“ als innovative Modelle zur Regel(durch)setzung? Möglichkeiten und Grenzen eines neuen Konzeptes am Beispiel des Forest Stewardship Council (FSC). in: BRÜHL, T. et al. (eds.): Unternehmen in der Weltpolitik: Politiknetzwerke, Unternehmensregeln und die Zukunft des Multilateralismus. Bonn, op. cit. PATTBERG, P. (2004b): The Institutionalisation of Private Governance. Conceptualising an Emerging Trend in Global Environmental Politics, Global Governance Working Paper No 9, Potsdam/Berlin/Odenburg. SCHERER, A. G. (2003): Multinationale Unternehmen und Globalisierung. Zur Neuorientierung der Theorie der Multinationalen Unternehmung. Heidelberg. STEINMANN, H. / LÖHR, A. (1994): Grundlagen der Unternehmensethik. 2. Ausg., Stuttgart. ULRICH, P. (2001): Integrative Wirtschaftsethik: Grundlagen einer lebensdienlichen Ökonomie. 3. Ausg., Bern.

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Impacts, obstacles to and risks of forest certification
Jürgen Hess

Impacts, obstacles to and risks of forest certification
Jürgen Hess

Goal and approach
The instrument of forest certification has been with us for 15 years now. In 2004, the Forest Stewardship Council (FSC) celebrated its tenth anniversary, and the Programme for the Endorsement of Certification Schemes (PEFC, formerly Pan European Forest Certification) its fifth. Numerous people involved have invested a lot of resources and energy into developing and implementing the instrument, and have attached high expectations (ELLIOT, 2000). The vision of certification involves offering an incentive for raising the standards of forest management as a voluntary market instrument. In addition, however, it aims to promote models of sustainable consumption in which credible proof of sustainable forest management enters consumer behaviour as the primary quality characteristic throughout the entire value chain, from production to the consumer. The aim of the present paper is to compare the expectations and concerns associated with concrete application of the instrument with the impacts observed to date. It will go on to analyse the obstacles and failures which have typically confronted certification to date. The comparison of impacts and obstacles leads to a few crucial risks, which have to be mastered for future progress in certification. Although certification has been applied in practice for some 15 years, it has to be remembered that this is still too short a period to identify the particularly important longer-term impacts. There are very few empirical studies of the impacts of certification to date. Existing studies of certification are based on individual case studies of certified enterprises and countries where these are located, or where processes for developing national certification standards can be tracked. These studies pay very limited attention to the impacts of the instrument (NUSSBAUM / SIMULA 2004: 49). Assessments of the success or failure of forest certification have so far always given very great weight to the certified area. Only recently have various authors based their assessment of the instrument on other quality characteristics and started classifying these (cf. GULLISON 2003; MOLNAR 2003; NUSSBAUM / SIMULA 2004; RICHARDS 2004; SEGURA 2004; BUTTERFIELD et al. 2004; SIMULA et al. 2004; WWF 2005). The impacts and associated obstacles and risks identified in the present paper are broken down for consideration into enterprise and sectoral levels.

Impacts, obstacles and risks at the enterprise level
Forest management There are major changes at the operational level, primarily in the practices in forest management. These include e.g. measures to ensure future availability of products from the forest, 195

Impacts, obstacles and risks at the enterprise level

standards for forest roads to minimise the impact on soil and water, improvements in silviculture and logging (e.g. techniques for reduced impact logging) and regeneration of marginal sites. Specifically in the tropics, the often unsustainable logging of timber species has been replaced by the use of a broader range of species and an increase in the stock of timber (NUSSBAUM, SIMULA, 2004: 30; RICHARDS 2004: 12). Even more important are further developments in an operation’s management system due to the introduction and use of improved methods of mapping, inventory, planning, monitoring and evaluation, and documentation. On the other hand, certification often involves obstacles which are hard for small-scale forms of forest management to deal with, resulting from the requirements for documentation, planning, monitoring and process instructions (NUSSBAUM / SIMULA 2004: 30). Preservation of biodiversity The question of how far certification actually improves ecosystem functions, increases biodiversity, or promotes the survival of endangered species is an ongoing matter of controversy. Based on a review of a whole series of case studies and articles, NUSSBAUM and SIMULA (2004) come to the conclusion that improved protection of biodiversity seems to be a consistent benefit of certification. Frequently, corrective action requirements in the context of conformity verification relate to rigorous monitoring and reduction of environmental influences, with the emphasis on improved protection of representative ecosystems and rare or endangered species (NUSSBAUM / SIMULA 2004: 27-29). GULLISON (2003) describes that certification with the FSC label demonstrably requires a whole range of significant modifications in management. These in turn generate a direct benefit for preserving biodiversity, which supports the effectiveness of certification at the practical implementation level in productive forests. However, a prerequisite for protecting biodiversity is an area whose size matches the ecosystem to be protected. This is occasionally greater than the size of the individual enterprise as a certification unit (NUSSBAUM / SIMULA, 2004: 27-29). The limits to the effectiveness of certification emerge in the areas of the conversion of forest areas to other land uses and the destruction of High Conservation Value Forests (HCVF). Surveys and planning for HCVF in certified enterprises have increasingly become important elements in certification processes (PROFOREST 2003). At the same time, the conversion of forests to other land uses and the efficient protection of HCVF are typical areas where complementary measures to certification need to be promoted. These include regulatory measures to prevent illegal wood use and conversion of forests. They also include e.g. proactive expansion of markets and rewards for environmental services, in order to increase the economic competitiveness of certified enterprises compared with other forms of land use. Large-scale forestry or group and regional certification of small-scale forest management forms offer solutions for ensuring suitable scales for protecting biodiversity. Social aspects The application of forest certification has led to more conscious awareness and constructive handling of social aspects of sustainable forest management. It is reported that employees in 196

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certified concession sites enjoy improvements in labour law, health, job security and wages. This also affects the local population in concession areas. Outstanding elements in this area are the negotiation and implementation of compensatory mechanisms, conflict resolution and improvement in the organisation of the local communities affected (RICHARDS 2004: 7). The positive impacts of certification in the social sphere also include non-monetary benefits of communal forest management. For example, local communities have achieved a better negotiating position and higher institutional status in forest policy processes, and established themselves as legitimate forest users in dealings with the state and environmental representatives of civil society (MOLNAR 2003: 13). In addition, there is the resolution of conflicts over indigenous land rights and local community boundaries (RICHARDS 2004: 8). Perhaps the greatest merit of certification overall is to have gained far greater attention to the social dimension of sustainable forest management than was the case just a few years ago. Much more importantly, certification provides a framework for the actors involved to develop practical solutions both in the context of standard development and implementation processes with their political repercussions and in the certification of individual enterprises. This has, for example, led to greater articulation by representatives of the private sector and the local population of their previous mutual suspicion and to the reduction of the resulting distance through certification processes. The social dimension of sustainable forest management is, however, easily the most difficult to handle, not only in the tropics but also in the European setting. Complex and small-scale living conditions, which also differ greatly between locations, and local values and standards handed down over countless generations - such as different ethnic perceptions of land ownership - are in some cases very difficult to integrate into either labour law, land law or other necessary regulatory codes or into certification standards. They pose major challenges, obstacles and risks to certification. This is demonstrated by arguments that certification lacks the potential to resolve this (COLCHESTER et al. 2003), by difficult certification processes (MEYER 2003), and controversial debates at the level of individual enterprises, as in Malaysia (MTCC 2005; BRUNO MANSER FONDS 2005). However, enterprise level certification under FSC is repeatedly showing that complex social problems in the tropics can be solved, at least locally (MEYER 2003). Conversely, studies at the enterprise level are also showing the problems in adequately handling the social dimension of sustainable forest management increasingly in Europe too (WWF 2005). Forest certification under FSC in the cases studied in various countries also appears in the European context as a mechanism which not only makes social aspects apparent, but also makes them more concrete and supplies innovative solutions. „Forest certification has led to an improvement across all countries in the implementation of health and safety legislation, including the provision of better equipment and training, the use of safety procedures, and the reliance on properly qualified forest workers. Public safety has also improved through the implementation of risk assessments and better signage of work zones” (WWF 2005).

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Market incentives The situation in enterprises already certified is generally still dominated by a lack of significant or any reward for certified forest products in the relevant markets (GULLISON 2003: 158; RICHARDS 2004: 23). There are also demonstrably cases where certified forest products enjoy a remarkable price premium. However, these are clearly restricted to niche markets, such as specific tropical sawn timber or plywood products, where there is a shortage of certified goods. The premia disappear again as soon as the shortage is offset (GULLISON 2003: 158). Although certified forest products are setting the trend on the supply side, higher prices cannot yet be expected as a result (NUSSBAUM / SIMULA 2004: 39-40). Where higher market prices are nevertheless achieved for certified products, these generally do not trickle down to the raw materials producers. The profits are made by dealers and processing industry, not by producers (PINTO DE ABREU / SIMULA 2005). While many trading companies are reporting markups, trading companies which pass on the higher prices to raw material producers or processing enterprises are in the minority. (NUSSBAUM / SIMULA 2004: 39/40) Higher market prices for certified products are accordingly not yet the driving force behind certification. Instead, indirect benefits such as (and specifically) lower costs (SIMULA et al. 2004) and easier market access play a greater role than markups. It is, for example, already clear that companies whose production processes are not certified and who also have occasional public relations problems with their wood supply (e.g. plantation wood from converted natural forests or wood from old growth forest) will have to accept lower market prices if supply exceeds demand (NUSSBAUM / SIMULA 2004: 39-40). Half the world’s certified forests are subject to industrially-oriented private sector management with large-scale units, while 23% of certified forest area is managed by non-industrial private forest owners. Certified forests under communal management currently account for a share of 2% (PINTO DE ABREU / SIMULA 2005). Statistically, forest certification has so far primarily favoured large-scale forms of forest management. This is certainly also the result of structural comparative advantages of these forms of operation in the market and marketing sectors, and particularly in the mass product segment, especially since innovative companies in particular are clearly succeeding in restructuring their production procedures. Local communities and small-scale enterprises have, however, had great difficulty in establishing secure and long-term market links in the face of the competition. MOLNAR (2003) summarises the situation as follows: „They (communities) are unable to keep their costs of production low because of low volume, poor road infrastructure, lack of enterprise efficiency, and distance from markets. Except where they have associated, few communities can deliver a consistent volume of a similar quality to attract buyers”. The situation will continue to deteriorate if wood from the established commercial plantations in developing countries reaches the local, regional and global markets. This will substantially increase the risk of undermining producers in the natural forests who cannot compete with plantation wood. A significant example of this is the industry in the north of Mexico, which is already importing certified plantation wood from Chile with a more consistent quality and

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dimensions and at lower prices than it can produce from certified Mexican local community woods. MOLNAR concludes: „The communities face the double challenge of having a number of steps complete to develop an efficient enterprise, which can be certified at a reasonable cost of audits and investments, and having to look to a future where their natural timber and community wood cannot compete with plantation wood. Forest certification has not developed the expertise to advise or guide communities on these real market issues”’ (MOLNAR 2003: 21). This imbalance jeopardises certification’s claim to address the social challenges of sustainable forest management in particular, thus significantly increasing its relevance for poverty, and exposes it to a loss of credibility and support from the relevant actors. Additional complementary measures to improve market access for local communities are urgently needed. These include marketing strategies which show publicly that the products involved were made by peasants and indigenous population groups and which try either to create suitable market channels or to mobilise existing market mechanisms, such as the Fair Trade Initiative. Governments must lower statutory barriers to small-scale forest management. Forestry agencies, donor projects and NGOs should concentrate much more closely on providing services to establish improved marketing structures. These include expanding and rewarding commercial provision of nonwood products and environmental services (MOLNAR 2003: 42-44). Costs of certification The costs of certification include the direct costs of the certification process itself, which depend very strongly on the size of the enterprises and the distance the certifiers have to travel. Direct costs are relatively low in large and intensively managed industrial production units, but can become enormous for small and medium-sized businesses, making it difficult for them to enter the added value chains for certified products. Direct costs amount for example to 2-3 US$ cents a cubic metre in large enterprises in Poland and the USA, compared with 19 US$ cents a cubic metre for plantations in South Africa. In other tropical forest enterprises, the direct costs vary from US$ 0.26-1.10 or up to US$ 4 a cubic metre for small producers in Latin America (GULLISON 2003: 161). In the tropics, indirect costs due to the introduction of certifiable production processes are far more significant than direct costs. These include investment in infrastructure and technology to enhance the efficiency of logging, combined with more conservative use of resources. They also include higher wages due to compliance with statutory wage and social security regulations (GULLISON 2003: 161) and the costs of measures to secure biodiversity, advanced training, documentation and reorganisation of wages, e.g. shifting from piece rates to hourly wages. In the tropics, however, the decisive factor for the occasionally enormous level of indirect costs consist of the implications of converting forest operations from overexploitation to quantitatively sustainable use of resources. The profits foregone through not overusing the stands in an unsustainable manner create opportunity costs which exceed the potential compensation from existing and even future ecologically sensitive markets. The consequence is that high direct costs of certification and high indirect costs from the introduction of certifiable production processes are often seen by producers as a barrier to using the instrument at the enterprise level, so that these producers are not inclined to embark on a

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certification process. To reduce this risk, increased use of the potential for efficient reduction of direct costs is required. However, reducing the high indirect costs of certification requires regulatory action, as improvements in efficiency in operating procedures and certification alone are not sufficient.

Sectoral impacts, obstacles and risks
Policy and governance The relationship between national policies and forest certification has been dominated since the start of certification by tensions and particularly by very different reactions by national governments. Original positions start with active support in introducing the instrument, for example through reforms in policy and legislation, or through direct financial assistance to certification initiatives, and continue through a passive attitude which allows scope for national and external standards initiatives, extending as far as explicit rejection. With time, and based on different experience, governments have modified their attitude to certification, which is expressed in very different modes of action. In several countries, government participation in certification processes has evolved into direct commitment to developing and implementing national certification systems, as in Ghana or Malaysia. Others support the process of establishing international systems, as in Mexico. Several are hesitant or indifferent to certification processes, as in Cameroon (SEGURA 2004: 5). SEGURA (2004) continues: „Also, the fast and dynamic evolution of the certification process and the very limited documentation of its impacts as a new policy instrument to achieve SFM have been partly responsible for the limited understanding and reluctance of governments to accept it and promote it”. At the same time the role of certification in addition to its original aim as a voluntary market incentive is steadily consolidating its status as a „soft” policy instrument. Positive impacts of certification processes on national forestry policies and regulatory environments can be identified for the following areas:

Participation in forest policy processes by the relevant actors

Processes to formulate national FSC standards by the relevant national initiatives have produced positive influences. The key feature of FSC standards development is a significant improvement in participation by the various actors, with striking examples in countries like Brazil, Bolivia and South Africa. Increased acceptance of local community representatives in local and national political fora, increased awareness of the potential of sustainable forest management, increasingly participative and decentralised forest policy processes, and greater transparency in enterprises and value chains are all demonstrable results of certification (RICHARDS 2004: 4). Without distinguishing between individual certification systems, SEGURA (2004) describes the introduction of a new culture into social negotiating processes, which is characterised by increased awareness of sustainable forest management, as a primary contribution of certification to forest policy developments. Certification has in particular strengthened local actors like local communities and NGOs, which otherwise have only limited access to forest

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policy processes (SEGURA 2004: 7). He continues: „New forms of dialogue have emerged where forestry issues are addressed at local, national, and even regional levels improving the transparency of forest practice, the understanding of what should be deemed good forestry and the appropriate role of different groups in the process”. Of decisive importance in this is that this category of impact is attributable much more to participative processes for developing standards for sustainable forest management than to cumulative biophysical or sectoral impacts of the certification of individual enterprises (RAMETSTEINER 2000, quoted in SEGURA 2004: 7). In other words, the development of national standards in participative processes has the potential to change the quality of forest policy and regulatory environments. The certification of individual enterprises accordingly does not rise above the level of model approaches. It is the national working groups on forest certification in the various countries in particular which have brought together the actors who have traditionally avoided cooperation on forest problems, and who were then put in a position to have a positive influence e.g. on conflict-laden areas such as the long-running internal and external disputes over land rights in Mexico. On the other hand, certification also continues to face major problems in countries with complex ethnic and political structures. The success of certification will depend on how far it succeeds in difficult and complex forest policy contexts and unequal power constellations among the actors involved in providing practicable, verifiable and balanced answers for all participants.

Influence on national legislation and programmes for sustainable forest management

The influence of certification on the design and implementation of national forest policies and forest programmes can be direct or indirect. As in Brazil, Malaysia and Mexico, impacts are more apparent in countries where local actors have taken ownership of the certification process, where there is active participation by local and national government agencies, and national working groups and certification agencies play a prominent role. By contrast, SEGURA (2004: 9) sees the influence as relatively restricted in countries like Zambia or Cameroon, where the certification process is being promoted by NGOs unilaterally or with little integration of local actors, and where governments are marginalised in the process. The influence of certification on national regulatory environments has so far generally been restricted to implementing existing legislation rather than reforming the content of the laws (BASS et al. 2001). Certification as a complementary instrument can support compliance with local regulations, representing an essential gain for countries where the technical and structural capacities of the executive agencies for implementing and monitoring legislative provisions are limited. Conversely, these effects are limited where only a very restricted number of producers have the potential to meet international or national standards. In the few exceptions to date where there has been an interactive process between reforming forest legislation and certification, there is however a possibility of incorporating certification incentives for forest owners directly into statutory provisions. An example of this is Bolivia (SEGURA 2004: 10). At the same time, the potential for influence of certification as an executive mechanism is limited by the requirement of it to be voluntary. Governments use very different approaches and strategies to expand their freedom of action in this respect. In Russia, legislation for a mandatory national certification initiative was introduced in 1997 in order to ensure monitoring of

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wood extraction from concessions in public-sector forest areas. This approach was, however, never ultimately implemented, and is also viewed critically due to its inflexibility and vulnerability to corruption and illegality. Other approaches concentrate on creating a range of incentives for producers who either already have a certificate or are demonstrably in the process of certification. These include tax breaks and exemption from mandatory state controls in Bolivia, facilitated access to national government programmes in Mexico, and tying grants of forest use rights to certification in Guatemala and South Africa. A major risk in mobilising the potential of certification, either as a complementary mechanism for the executive or in supporting reforms in forest policy and legislation, is the lack of adaptation to local situations. Local traditional law, rural communities, ethnic minorities and women should not be subject to discrimination in standard development and implementation (KAIMOWITZ 2003). This is particularly true in areas where land rights questions are complicated or overlapping, or where there are nomadic population groups or populations with extensive forest use (SEGURA 2004: 11).

Influence on sustainable management of state forests

Forests under public ownership account for a major share of the forest areas certified to date. The governments involved have tried to improve their reputation with civil society and the trade in this way, using certification to demonstrate various approaches to sustainable forest management to other forest owners. In the process, governments have also been led to rethink their own role and influence. BILLS (2001) writes: „Our (the Government of the United Kingdom, UK) experience of certification has shown that it is more than just a marketing tool. Continuing the theme of new ways of doing business, certification is proving to be a vehicle for real efforts to promote sustainable forest management in the UK” (BIILS 2001: 5). Governments are increasingly accepting the function of certification as a „soft” policy instrument which can make an important contribution towards attaining sustainable forest management. Governments as large and influential forest owners should continue to play an active role in national, regional and international certification processes (SEGURA 2004: 13). Overall, however, the complexity of the relationships between national policy and governance on the one hand and certification on the other has yet to be clarified in all respects. Perhaps too much has been expected too quickly at the interface between governance and certification in particular. If used as a pure market instrument, certification can only have a limited influence on difficult environments and fundamental economic problems. If restricted to its function as a market mechanism, certification can only have a limited influence on illegal wood use, corruption or other negative aspects of governance. These problems generally arise out of weaknesses in the legal and regulatory environment and public respect for law and order. A market instrument with a market which is still small does not impact these problems (RICHARDS 2004: 5). Specifically in the tropics, certification is still faced by a major discrepancy between current practice and internationally recognised principles of sustainable forest management (RICHARDS 2004: 9). Application of the instrument faces barriers in the tropics such as high interest rates, uncertain land title, political and economic uncertainties and large quantities of

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cheap forest products on the markets from conventional forest exploitation (GULLISON 2003: 161-162). To deal with these tensions, certification is subsidised by donors, NGOs and governments, as for example in Mexico (RICHARDS 2004: 8). This is generally justified by the early stage of development of a new market instrument with weak market incentives, with the high biodiversity of the tropical forests, and with aspects of poverty reduction. However, this also involves substantial risks. These include the passivity of the enterprise management involved, disruption of market forces and efficiency losses (MARKOPOULOS 2003, quoted in RICHARDS 2004: 9). There is also the risk that this support will end before either functional and economically viable market mechanisms are established or difficult political environments are improved. The great risk in all this is that support will be withdrawn much too early. This leads to certification subsequently being rejected by producers, and follow-on audits being abandoned. Markets The potential supply of certified wood is currently estimated at 585 million m3, of which c. 35% comes from plantations. This potential volume is considerable, representing 17% of global roundwood production. Nevertheless, only a limited share of this volume is sold with a certificate. More than 5,400 Chain of Custody certificates are awarded in 74 countries, 80 of them in developing countries, more than 70% in Europe alone. The share in the total trade of wood from certified sources is, however, still slight (NUSSBAUM / SIMULA 2004). The quantitative impact of certification on trade still does not qualify as significant. Despite this, and given the fact that these figures did not exist at all only a few years ago, this market segment has evolved into one of the most dynamic trade sectors. There is much to suggest that the process is continuing to accelerate, and that certified wood will become the main flow in trade in wood products over the next five years (NUSSBAUM / SIMULA 2004). Responsible companies in the private sector have integrated demand for certified goods into their purchasing guidelines, and more and more governments - primarily in Europe, such as the UK and Denmark - are developing regulations for public procurement in which certified wood is given preference in placing orders (ITTO 2005). The emergence of a buyer group in Brazil and the growing interest of tropical domestic markets, as in Mexico and Brazil, are further indicators of the influence of certification on major trading regions (SMERALDI / VERÍSSIMO 1999; RICHARDS 2004: 27). A whole series of producers in tropical regions - mainly in South America - have utilised demand for certified products to gain access to ecologically sensitive markets in Europe and North America (NUSSBAUM / SIMULA 2004). As a result, certification has demonstrably led to numerous producers and consumers rethinking their behaviour. In addition, there are already service initiatives, such as the Global Forest & Trade Network (GFTN) created by the World Wide Fund for Nature (WWF), and the private sector Tropical Forest Trust (TFT), which provide services to promote certification and improve the positioning of certified products on the market (RICHARDS 2004: 13-15). At the same time, there still remains much to be done in terms of market access for certified products in order to support broader application of the instrument in the tropics and subtropics. Although demand for certified goods still currently exceeds the available supply, particularly for high-quality tropical woods, markets have so far shown little willingness to generate corresponding compensation for the higher costs of the enterprises producing these 203

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(RICHARDS 2004: 26). At the same time there are reports that market segments for tropical woods are being replaced by other products because no certified goods were available (ITTO 2005). The share of producers with access to ecologically sensitive markets, which essentially remain limited to North America and Europe, is still minimal Many domestic markets particularly in smaller and poorer countries without significant export rates - are still not accessible to certification. Large-scale companies currently dominate the main routes to the markets, while small and medium-sized firms and local community operations still have very limited access to markets. Market communication about demand is so far essentially a process between companies, consumer demand is still limited (PINTO DE ABREU / SIMULA 2005). Markets generally see themselves as faced by the need to define which certification systems can be accepted and recognised. It seems that market requirements in consumer countries are being developed without adequate participation by producers. This is leading to growing diversity in different requirement profiles on the markets, making it difficult for tropical wood producers to retain a clear picture. There is an urgent need here to use suitable communication mechanisms to establish convergence between the needs of demand and producer needs (ITTO 2005).

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References
BASS, S. / THORNBER, K. / MARKOPOULOS, M. / ROBERTS, S. / GRIEG-GRAN, M. (2001): Certification’s impacts on forests, stakeholders and supply chains. Instruments for Sustainable Private Sector Forestry Series. International Institute of Environment and Development, London, UK. BILLS, D. (2001): The UK Government and certification. International Forestry Review Vol. 3 (4). BUTTERFIELD, R. / HANSEN, E. / FLETCHER, R. / NIKINMAA, H. (2004): Forest Certification and Small Forest Enterprises. Key Trends and Impacts: Benefits and Barriers. Draft Version 6, Rainforest Alliance. BRUNO MANSER FONDS (2005): When will Malaysia start respecting the Penan people’s rights? www.bmf.ch. COLCHESTER, M. / SIRAIT, M. / WIJARDJO, B. (2003): The Application of FSC Principles 2 and 3 in Indonesia: Obstacles and Possibilities. ELLIOT, C. (2000): Forest Certification: A Policy Perspective. CIFOR, Jakarta. GULLISON, R. E. (2003): Does forest certification conserve biodiversity. Oryx Vol 37 No. 2 April 2003. ITTO (2005): INTERNATIONAL TROPICAL TIMBER ORGANIZATION, International Workshop on Phased Approaches to Certification. Bern. www.itto.or.jp. KAIMOWITZ, D. (2003): Forest law enforcement and rural livelihoods. The International Forestry Review Vol. 5(3). MTCC (2005): Information Update - Sela’an Linau FMU 030305. www.mtcc.com.my. MARKOPOULOS, M.D. (2003): The Role of Standards-based Approach in Community Forestry Development. Findings from Two case Studies in Southeast Asia. RECOFSC Working Paper 2/2003 Bangkok. MEYER, C. (2003): Good on the ground. Indigenous Orang Asli at the FSC-certified PITCconcession in Peninsular Malaysia. Case Study carried out for the Tropical Forest Trust (TFT), www.tropicalforesttrust.com. MOLNAR, A. (2003): Forest Certification and Communities: Looking forward to the next decade. Forest Trends, Washington.

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References

NUSSBAUM, R. / SIMULA, M. (2004): Forest Certification: A Review of Impacts and Assessment Frameworks. Certification Paper Second Review Draft carried out for the Tropical Forest Dialogue (TFD). PINTO DE ABREU, J. A. / SIMULA, M. (2005): Setting the Scene: Overview and Implementation of Phased Approaches. Presentation at the ITTO International Workshop on Phased Approaches to Certification. Bern. www.itto.or.jp. PROFOREST (2003): Toolkit for Assessment of High Conservation Value Forests. www.proforest.net. RAMETSTEINER, E. (2000): The Role of Governments in SFM-certification. Discussion Paper P/2000 - 1. Institut für Sozioökonomie der Forst- und Holzwirtschaft. Vienna. RICHARDS, M. (2004): Certification in complex socio-political Settings: Looking forward to the next decade. Forest Trends, Washington. SEGURA, G. (2004): Forest Certification and Governments: The real and potential influence on regulatory frameworks and forest policies. Forest Trends, Washington. SIMULA, M. / ASTANA, S. / ISHMAEL, R. / SANTANA, E.J. / MARCELO M.L. (2004): Report on Financial Cost-Benefit Analysis of Forest Certification and Implementation of Phased Approaches. International Tropical Timber Council ITTC (XXXVII)/13. SMERALDI, R. / VERÍSSIMO, A. (1999): Hitting the Target: Timber Consumption in the Brazilian Domestic Market and Promotion of Forest Certification. IMAZON, Belem, Brazil. THORNBER, K. (1999): Overview of global trends in FSC certificates. Instruments for Sustainable Private Sector Forestry Series. International Institute of Environment and Development, London. WWF (2005): The effects of FSC Certification in Estonia, Germany, Latvia, Russia, Sweden and the UK. WWF European Forest Programme. www.panda.org/europe/forests.

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Forest certification in Brazil: advances, innovations and challenges
Adalberto Veríssimo / Roberto Smeraldi / Tasso Azevedo

Forest certification in Brazil: advances, innovations and challenges
Adalberto Veríssimo / Roberto Smeraldi / Tasso Azevedo

Summary
Of the countries in the South, in Brazil forest certification by the Forest Stewardship Council (FSC) has progressed the most. The area certified by the FSC in Brazil reached 3 million hectares in December 2004, placing the country fifth place worldwide. Brazil also has the largest area of certified tropical forest in the world, with around 1.3 million hectares in the Amazon. Brazil has been a benchmark in the strategic areas of promoting certification, for example with the creation of the group of buyers of certified wood in 2000, or the setting up of the group of producers of certified wood of the Amazon in 2003. Brazil furthermore held the first FSC national trade fair and started a broad consumer campaign to promote the trademark. Such advances are backed by the catalysing forces of the Alliance for the Consumption of Certified Forest Products made up of the non-governmental organisations (NGOs) Friends of the Earth Brazilian Amazon, Imazon (Amazonian Institute of People and the Environment) and Imaflora (Institute for the Management and Certification of Forests and Agriculture).

Introduction
Brazil is a forest country, harbouring around 5.5 million km2 of forest (65% of its territory), which represents approximately 10% of the world’s forests and the second largest forest area, after Russia. Brazil’s forests, and the Atlantic and Amazon Forests in particular, are home to one of the richest biological diversities of our planet. Furthermore, they play a significant role in conserving around 20% of the world’s freshwater reservoirs (PNF - National Forest Programme - 2004). The Amazon accounts for 66% of Brazil’s total forest coverage, while the Cerrados (lit. savannah) account for 24%. The rest (10%) is made up of the remnants of the Atlantic Forest along the coast, the Araucaria Forest in the south, Caatinga in the northeast region and patches of deciduous forests at the transition between the Atlantic Forest and the Cerrado. In addition, Brazil has approximately 55,000 km2 of forest plantations, most of them in the southeast and south regions (LELE et al. 2000, LENTINI et al. 2004, PNF 2004). Brazil’s forests are of increasing economic importance. In 2002, the production of paper and cellulose, solid plantation wood, native wood (from the Amazon, in particular) and non-timber products accounted for around 4% of gross domestic product (GDP) and 8% of all exports, and generated around 2 million direct and indirect jobs (PNF 2004). However, the majority of this production originates from non-managed native forests and noncertified plantations. Despite this, Brazil has advanced significantly in the adoption of forest certification (FSC) both in the plantation sector and in the native forests of the Amazon. In 2004, the certified area reached 3 million hectares of which 57% belonged to the Amazon (natural and planted forests) and the other 43% to the plantations of the southeast and south of the country.

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Introduction

The purpose of this article is to present the advances made with FSC certification in Brazil, the lessons learned, the challenges and the prospects for the next few years.

Evolution of Brazil’s certified area
The area certified by the FSC in Brazil reached 3 million hectares in December 2004, putting Brazil fifth place world-wide, after Sweden, Poland, the United States and Canada. The certified area of natural forests in the Amazon accounts for approximately 1.3 million hectares or 43% of the total Planted forests in the Amazon already top 440,000 hectares or 14% of the total certified in Brazil. The certified area of plantations outside the Amazon represents 33%, a large part being plantations earmarked for pulp and paper production in the southeast and south of Brazil. Finally, the certified natural forests in the Atlantic Forest and Araucaria Forest area make up 10% (Table 1). Table 1: Area certified under the FSC in Brazil as of December 2004 (Source: FSC Brazil 2005)
Type of Management Natural Forests in the Amazon1 Planted Forests in the Amazon Natural Forests outside the Amazon Planted Forests outside the Amazon Total Area Certified (ha) 1,291,381 440,084 300,000 997,000 3,028,991

Certification in the Brazilian Amazon In the Brazilian Amazon, efforts to develop a socially and environmentally responsible forestry sector are recent. Until 1996, forest management was virtually non-existent in the Amazon. It was thanks to certification that forest management began to take hold in the region. In 2004, the managed area of natural forests reached 3.2 million hectares, of which almost 1.3 million (43%) corresponded to natural forests certified in accordance with FSC criteria. This constitutes significant progress, but still is insufficient as timber from managed sources still represents less than 10% of total production.

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Figure 1: Forest areas certified under the FSC in Brazil 2004

FSC’s involvement in the Amazon began in 1997 with the certification of Precious Woods, which started off with an area of 81,000 hectares. Based in Itacoatiara, Amazonas State, that undertaking played a decisive showcase role in the spread of certification in the region. In 2000, the area increased to almost 315,000 hectares with the certification of three other enterprises: Cikel and Juruá (both in Pará) and Gethal in the Amazon. In 2002, the certified area reached 481,000 hectares with the highlight being the appearance of the first community forest management operation in Acre State. Two years later, the area almost quadrupled, reaching the 1.73 million hectare mark (Figure 2). The majority (75%) are natural forests, while 25% are plantations. Beyond this, there is a significant number of forestry operations in the process of being certified, which should not only greatly increase the area certified but also the number of enterprises. From a single pioneer enterprise in 1997 - Precious Woods - certification now, in 2004, encompasses seventeen private companies and five community operations. The geographical distribution of certification now includes the western part of the region (Acre and Rondonia States), the central part made up by the Mato Grosso and Amazon and the Oriental Amazon in the State of Pará. In terms of forest typology, it is divided into dense upland forest, open forest and lowland forest.

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Evolution of Brazil’s certified area

Figure 2: Evolution of certified area in the Amazon

2,000,00 1,800,00 Certified Area (ha) 1,600,00 1,400,00 1,200,00 1,000,00 800,00 600,00 400,00 200,00 0 1997 1998 1999 2000 2001 2002 2003 2004

Certification in the south and south-east of Brazil Certification of plantations in the south and southeast of Brazil began with the certification of the Rio Doce Forests in 1995. The following year, the forest areas of the Eucatex and Duratex companies were certified. From then on, the certified area rose to reach 1.1 million hectares in December 2004, which represents 20% of Brazil’s total plantation area. The large majority of those plantations are planted with species of the Pinus sp and Eucalyptus sp. families. The greatest growth in plantation certification took place in the wood-based panel, sawn wood and pulp and paper sector. However, interest in certification has grown in other sectors such as planted land for charcoal production. For example, the interest of companies in exporting charcoal for the European market led to the certification of the Plantar and Mannesmann companies. The certified plantations of the south and southeast of the country are found in areas belonging to the Atlantic Forest, a biome under extreme threat with only 7% of its original forest still standing. Those plantations play an important role in the conservation of remnants of this type of forest. The Klabin areas in Paraná are an example of the role of certified plantations. Of the 230,000 or so hectares certified under the company’s responsibility, 85,000 hectares are native areas of the Atlantic Forest. Part of that Klabin Atlantic Forest area is managed in order to extract non-timber forest products that are used in the manufacture of cosmetics and phytotherapies, constituting the first global cases of FSC certification for those products. Moreover, in the forest plantations of other companies, between 20 and 30% of the certified area is made up of native forests as part of the FSC’s legal requirements and norms.

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Adalberto Veríssimo / Roberto Smeraldi / Tasso Azevedo

Klabin’s certification in 1998 was an important landmark in FSC history as it was the first instance of a pulp and paper industry having been granted endorsement in the South. Klabin’s certification involved an intense process of public consultation during pre-evaluation, which later came to be a norm in the FSC scheme. The certification catalysed the timber supply for other companies in the south of the country, which in turn increased the interest of those enterprises in chain of custody certification. The result was a vigorous growth in chains of custody from just five in 1998 to 132 in 2004.

The role of the buyers’ group
The Group of Buyers of Certified Forest Products was formed in April 2000 as an initiative by companies who resolved to create a demand for certified products on the domestic market and to lend profile and scale to that demand with the aim of encouraging producers to increase supply in this market. The initiative was based on the observation that raw material and certified products (at the outset only timber-based) were extremely scarce and in the few cases where they did exist, they were destined almost exclusively for foreign buyers. Some pioneering companies, such as Tok&Stok, had tried without much success to develop a supply chain for certain products. A certain frustration characterised both the big companies and a few vanguard designers who approached certification. The group came into being under the administration of the Amigos da Terra, Friends of the Earth - Brazilian Amazon, an environmental body active in the forest sector since 1989 and focused on promoting the sustainability of economic activities. From the start, Friends of the Earth encouraged the members to take into consideration, the option and viability of transforming the group into an independent business association. This process has not been concretised yet but the current work plan is aimed at achieving the aforesaid conditions in the first half of 2006. Over the years, the group acted as facilitator for business relations, source of information on market trends, awareness-raiser of the final consumer and even as go-between in the relations between Brazilian producers and beneficiaries on the one side and the foreign firms on the other. For this reason the group has, since its initiation, been part of the Global Forests and Trade Network (GFTN) managed by World Wide Fund for Nature (WWF) International, which includes groups of producers and buyers in approximately 20 countries. When the buyers’ group was created, the parcel of certified wood that supplied the domestic market was very small in the planted sector and negligible in the native sector. In total, a mere 28 chains of custody existed in Brazil, only two of which were native forest. Then, in the first two years of the group’s existence, the number of national chains of custody grew significantly, initiating a trend of progressive growth. By December 2004, 169 chains of custody were already in existence, more than a quarter of which were linked to products from native forests. Also in 2004, the first 4 national chains of custody were set up for non-timber products. Today, the group, which has 64 members (still prevalently from the furniture sector), is trying to reach ambitious targets such as expanding its membership to the civil construction, corporate

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purchasing and non-timber forest products sectors, launching a campaign to promote the FSC Trademark and improving its marketing services with a dedicated team.

The role of the Brazilian Amazon producers’ group
Half way through 2002, several certified timber companies, Cikel and Gethal in particular, began to show an interest in setting up an association which would unite the certified enterprises of the Amazon. The incentives behind this were fourfold. Firstly, in 2002 the Brasilian Institute for Environment and Renewable Natural Resources (IBAMA) imposed a million-figure fine upon two certified companies in the Amazonas State. That event had negative repercussions in the national media. The reasons for the fine were amply disputed by the companies, who saw in this incident a possible attempt to tarnish the reputation of forest certification. This episode exposed the need for companies to join together to protect their image and, by extension, the credibility of the FSC label itself. Next, the companies thought it essential to expand the supply of certified wood to consolidate the FSC label and the market for certified wood originating from the Amazon. The fear was that the steep increase in demand, in the context of a limited supply of certified wood, might unleash a crisis in the market, which could lead to the demand for wood with other labels. Therefore, the expansion of the supply of FSC- certified wood, through increasing the area certified, was crucial to the strategy to promote this new market. Thirdly, it was necessary for the certified companies to differentiate themselves from the rest of the timber sector in order for this segment to have political power and legitimacy: a crucial factor considering the prospects raised by the Lula Government (2003 onwards) of support for forest management. In fact, the forestry policies announced by the new government, such as the drafting of the forestry concession bill, lines of credit and revision of management norms, signalled the need for strong participation of the certified segment. Finally, the certified companies agreed on the need to establish an area of technical cooperation and a minimum research agenda in order to perfect certified forestry management. In fact, the companies realised that, though they may compete with each other, it is vital to act collectively in areas of common interest. As a result of this convergence of interests, the companies and some certified communities decided - at the beginning of 2003 - to set up the Amazon group of certified forest producers, the acronym for which became PFCA (Produtores Florestais Certificados de Amazônia). In this, the group asked for the support of Imazon, a Think and Do Tank, whose mission is to support sustainable development in the Amazon. The group was formally launched at a large conference (650 participants) on forest management and certification in Belém on 17 June 2003. The Environment Minister, Marina Silva, and the Minister for National Integration, Ciro Gomes, attended the event. The conference also marked the approval of the first bank loans for certified enterprises in the Amazon. At the time of its launch, the PFCA had eight members (five companies and three traditional communities) and a combined certified area of 330,000 hectares. At the end of 2004, the group 212

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had twelve associates and a certified area of 1.5 million hectares, or 87% of certified area in the Amazon (Table 2). By December 2004, the PFCA was already consolidated with its statutes - focusing on membership criteria and code of practice -, directorate and an elected and appointed fiscal council. The budget secured from member company contributions - communities are exempt besides donations, enabled the renting of office space and the employment of an executive secretary. In addition, the PFCA has fully operational working groups, with a particular focus on groups in the operational and commercial area. Imazon’s role was to catalyse the initiative, creating an environment of trust between the companies and communities and assisting with the group’s strategic planning. Beyond that, Imazon organised the drafting of the code of practice and institutional relations with other NGOs, the Group of Buyers of Certified Forest Products and the federal government. Finally, Imazon adopted the principle of delegating control of the group, from the outset, to its members, both business and community. Table 3: Certified enterprises associated to the PFCA at December 2004
Forest undertaking Apruma Association Cikel Brasil Verde Porto Dias Community Gethal Amazonas Ecolog Emapa Juruá Forestry Madevale Orsa Forestry Orsa Plantations Precious Woods Amazon Precious Woods Pará Seringal Cachoeira Total area represented by PFCA Certified area (hectares) 800 248,899 4,209 40,862 22,132 12,000 37,000 4,923 545,335 440,000 122,729 76,390 1,900 1,557,179 State Acre Pará Acre Amazonas Rondônia Pará Pará Rondônia Pará Pará Amazonas Pará Acre -

Popularising the FSC in Brazil
In 1998, Friends of the Earth, Imazon and Imaflora established the Alliance for the Consumption of Certified Forest Products. However, as a result of the scarcity of certified products on the retail market, the Alliance’s work concentrated mainly on initiatives for the intermediate markets between the producer and the wholesaler. For example, the study „Hitting the Target 2” (SOBRAL et al. 2002) examined the issue of the Sao Paulo market, the main market in Brazil and in the world for tropical woods, categorising consumption according to timber yards, civil 213

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construction and the furniture industry. The study enabled the establishment of an initial dialogue with these sectors. As of 2004 - with the increase in domestic chains of custody and the greater availability of raw material - several initiatives were launched directly targeted at influencing the final consumer. The first initiative of this kind was the „Certified Brazil” trade fair held in Sao Paulo in April 2004 and coordinated by Imaflora. The event boasted 50 exhibitors, more than 100 foreign buyers and almost 4,200 visitors. The exhibition was a landmark in FSC history and was even attended by the Environment Minister, Marina Silva, Acre governor Jorge Viana and the Executive Director of FSC International, Heiko Liedeker. The trade fair showed that Brazil has the potential to become one of the main sources of FSC products in the world. The event even hosted workshops on the market for certified forest products and non-timber forest products, corporate social responsibility, certified panels in the furniture and construction industries, and eco-design. The exhibition offered a venue for making business contacts and holding business meetings between exhibiting companies and visitors. On the basis of this first experience, two new significant initiatives are planned for 2005. The first, the „Forest Fair”, will take place in Sao Paulo. The aim of the event is to showcase to the domestic and international public the enormous potential of the Brazilian forests in relation to inputs for the cosmetics, pharmaceutical, graphics, food, tourism, furniture, civil construction and decoration industries, besides wholesaler and retailer networks. Organised under the coordination of Friends of the Earth, and once again in partnership with Imazon and Imaflora, the event is presented as „a veritable forest supermarket with Brazilian charm and international appeal”. There will be individual stands or specialised themes on products and services such as fruit, nuts, palm hearts, spices, fish, wild honey, sweets, essences, fibres and vines, craft items, native rubber, oils, soaps, creams, phytotherapies, tourism, biodiversity assets etc. All timberbased products - furniture, charcoal, paper, cellulose, etc. - will be certified by the FSC, while the other, non-timber products will be certified in part by the FSC or by other appropriate schemes (such as agricultural certification, by Imaflora itself) or selected within the framework of those that received support from the Friends of the Earth’s Sustainable Business Service. In the second half of 2005, a campaign is also planned to promote the FSC trademark to the Brazilian public at large, in the preparatory phase by one of the major advertising agencies in the country, which should receive significant pro bono coverage in the national media.

Prospects and challenges
There is a prospect of rapid growth in certification in Brazil over the next few years. This growth tends to be catalysed by the good business opportunities created by the exports of certified products, in particular to the European Union (EU) and the United States of America (USA). On the other hand, certification could experience slower growth in the coming years, especially in the Amazon, if the structural issues of the Brazilian forest sector are not addressed. These issues are different in the two regions of the country: Amazon and South-Southeast. In the case of the Amazon, the main problem is the land tenure chaos, which inhibits the expansion of the certified area. In fact, only 24% of the Amazon is made up of titled areas

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whereas the unclaimed areas account for 45% of the territory. The remainder (31%) is made up of Conservation Units and Indigenous lands (LENTINI et al. 2004). Brazilian law prohibits the approval of management plans in unclaimed areas. Furthermore, the country does not yet have a forestry concession law capable of permitting forest management in Sustainable Use Conservation Units, such as in the case of the National Forests (VERISSIMO et al. 2002). Therefore, the areas susceptible to management and certification are restricted to the private, titled areas (24% of territory). The great majority of these areas, however, are deforested or already constitute certified areas. As a result, FSC certification will only expand in the Amazon if there is a forestry concession law permitting the management of protected or unclaimed areas. In the South-Southeast, the private companies, particularly in the pulp and paper sector, are investing in the modernisation of their industrial estate and the socio-environmental improvement of their forest operations. Growth in FSC certification could take place mainly in the segment of charcoal production for the iron and steel industry and in specific areas of the pulp and paper sector. Finally, several steps could prove decisive in guaranteeing the growth of the FSC in Brazil in the next five years, in such a way as to enable certification to move from a special niche market tendency (current situation) to one of market leadership. With this in view, the measures identified below, coming from actors of civil society, industry and government, can be considered decisive and potentially synergetic: Increase the supply and diversity of certified products for the external market making Brazil a global benchmark in FSC forest certification. This would attract support from public economic policies, whose interest lies in expanding and securing an external market for Brazilian products. Substantially expand the demand, in the domestic market, for certification in the civil construction sector, the main wood consumer in the Amazon. Market the FSC-certified product to the consumer at large, generating constant demand in all the sectors of the chain and not only in the furniture and exclusive design segments. Create new market chains in the area of certified non-timber forest products, particularly in those sectors where Brazilian production is experiencing strong growth and securing niches in the global market, such as the cosmetic industry. Define effective legal mechanisms for recognising certification in the tendering processes of public bodies and state enterprises. Implement public policies that would, by means of legal, tax and economic instruments, drastically reduce wood originating from deforestation. Approve and implement the forestry concession bill and establish an attractive forestry concession scheme that would help overcome investor reluctance and insecurity mainly with regard to the precariousness of the land tenure situation, particularly in the Amazon.

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Acknowledgements
We are grateful to Marco Lentini (Imazon) and André Freitas (Imaflora) for their comments. We are also grateful to Rodney Salomão (Imazon) for his collaboration in editing the map of certification areas. A. Veríssimo was supported by the AVINA Foundation, the GTZ and the Embassy of the Netherlands.

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References
FSC BRAZIL (2005): Florestas certificadas pelo FSC no Brasil (Forests certified by the FSC in Brazil) (www.fsc.org.br). Access on 28/01/2004. LELE, U. / VIANA, V. / VERISSIMO, A. / VOSTI, S. / PERKINS, K. / HUSAIN, S.A. (2000): Brazil Forests in the Balance: Challenges of Conservation with Development. Evaluation Country Case Study Series. Operations Evaluation Department. The World Bank, Washington D.C. 195 p. LENTINI, M. / VERISSIMO, A. / SOBRAL, L. (2004): Fatos Florestais da Amazônia 2003 (Amazon Forest Facts 2003), Belém: Imazon. 110p. PNF (National Forestry Programme) (2004): Ministry of the Environment. Government of Brazil. SOBRAL, L. / VERISSIMO, A. / LIMA, E. / AZEVEDO, T. / SMERALDI, R. (2002): Acertando o alvo 2: consumo de madeira Amazônica e certificação florestal no Estado de São Paulo (Hitting the Target 2: Amazon timber consumption and forest certification in the State of Sao Paulo), Belém: Imazon, Imaflora and Friends of the Earth. 74 p. VERISSIMO, A. / COCHRANE, M. / SOUZA Jr., C. (2002): National Forest in the Amazon. Science, (297) 1478.

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Dietrich Burger

Forest certification and development cooperation - an innovative partnership
Dietrich Burger

Introduction
Forest certification was often promoted in the tropics by „donors” in the context of development cooperation (DC), although this was occasionally done in a paternalistic manner and without adequate consideration of the existing conditions, which did not help either DC or certification, let alone the target groups. Despite such regrettable events, however, forest certification and development cooperation have a high and still largely unused potential for constructive and innovative partnership. A constructive partnership requires that the partners know their characteristics and take these into account. Since certification has already been described in detail, the present paper presents the goals and principles of DC, in order to examine whether and how certification can help DC achieve its goals. Next, the question is reversed to ask how DC can support certification. It is shown how a partnership between DC and forest certification can have an innovative effect and boost the success for both sides, and when this happens. Further development of this partnership is seen primarily as a communication problem.

Goals and principles of development cooperation
At the 1992 UN Conference on the Environment and Development (UNCED) in Rio de Janeiro, 178 countries agreed on the paradigm of sustainable development. In 1996 the German Federal Ministry for Economic Cooperation and Development (BMZ) declared that the paradigm of sustainable development was binding on all government development cooperation (BMZ, 1996). The goal is accordingly to assist countries, regions, social groups or organisations to discover and be aware of their role as actors in sustainable development. Three steps are required for this: identification of the roles through reflection and negotiation between actors involved, motivation and qualification of the actors for these roles, creation or improvement of suitable environments (structures, guidelines) for role perception. Development cooperation accordingly covers a wide range of themes and sectors, with the participation of very different state, private-sector and civil-society international, national and local actors with a diversity of methods and very different goals, experiences and competences. Development cooperation had been practised long before the Rio Conference, and was not reinvented there. However, the paradigm of sustainable development agreed there outlined a common basic understanding of development, and established a common basis legitima-

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tion for actors from all cultures, religions and political systems and a common framework for the diverse activities and goals of development cooperation. Development is understood holistically, i.e. changes in the environment are just as much part of development as economic and social changes. Because these three dimensions are intimately linked and interact with each other, decisions on resources to be used and process management and impact monitoring should always take environment, economy and society into account jointly. Development is the result of the use of assets - the available resources. This, however, requires taking all kinds of assets into account - environmental assets, economic assets, social assets (i.e. human resources and social capital). If only one dimension of indicators is considered in process management, e.g. economic, then undesired ecological or social processes can easily develop without being noticed in time. The impacts of development processes must be considered in all their dimensions, even if deliberate changes are made in only one of these dimensions. This holistic understanding of development inevitably leads to the insight that impacts of measures to affect development can only be anticipated to a limited degree, that the impacts must be carefully monitored and that measures must be modified if necessary, i.e. that development must be managed not through rigid programmes, but as a learning process. These learning processes must not restrict themselves to analysing short-term and artificially simplified linear cause-effect relationships, but must consider the web of impacts of development processes in their full complexity, including feedback and nonlinear processes. Holistic understanding of development requires systemic and long-term consideration. The precise goals which a country or society wishes to achieve in a specific time period cannot be set once for all time, but have to be negotiated between those affected, taking into consideration the context, and continuously reviewed and modified depending on progress. External assistance within the framework of development cooperation can be helpful in this. While it is not possible to derive precise development goals from the paradigm of sustainable development, it is possible to determine the direction which development should take. In line with the paradigm of sustainable development, it is regarded as legitimate (irrespective of country or culture) to use environmental, economic and social resources in such a way that future generations will have available resources offering them at least the same development opportunities as the current generation (prudent use of resources); the effectiveness of the resources used is as high as possible (efficiency), benefits, opportunities and risks are equitably distributed between social groups (social equity). Development can be conceived and implemented in very different ways. However, the paradigm of sustainable development agreed two common methodological features: those affected are regarded as partners in development and included in the negotiation of development goals and measures,

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development should be coherent at various levels (global, national, local, individual, family, society), i.e. as free as possible from contradictions; sustainable development should be a paradigm for individuals as well as for countries. The paradigm of sustainable development is developed over 1,000 pages in the Rio Documents. The brief presentation here in the form of the holistic understanding of development covering environment, economy and society, the three core statements on the direction (prudent use of resources, efficiency and social equity), and the two core statements on the procedure for sustainable development (partnership and coherence). was developed by an internal GTZ „Sustainability Working Group” in preparation for the 1998 Eschborn Dialogue, which was held under the motto „Reflecting on sustainable development”. This brief form of the paradigm of sustainable development is intended as an easy-to-use location tool if it is needed in DC to help partners in various countries and sectors find or improve routes to sustainable development. The common features in the basic understanding, basis for legitimation and methodological framework created with the paradigm of sustainable development open up the possibility internationally of drawing up a regular balance sheet of progress (e.g. at the UN Conferences „Rio + 5“ in 1997 and Johannesburg in 2002), of treating specific fields in special conferences (e.g. financing issues in Monterrey, 2001), of setting priorities, e.g. MDG (Millennium Development Goals), without replacing or losing sight of the comprehensive paradigm of sustainable development. Besides the conceptual updating of DC through the orientation on the paradigm of sustainable development, DC also needs to be continuously instrumentally modified and improved in the interest of effectiveness. Currently, the German Federal Government is primarily following four modernisation strategies in DC: Greater influence on the framework conditions for sustainable development through global structural policy (WIECZOREK-ZEUL 1999). Under this, global regulatory systems, and specifically those for finance, trade and the environment, are to be further developed guiding the relevant international organisations, e.g. World Bank (WB), International Monetary Fund (IMF) World Trade Organization (WTO), and participating in international conventions, e.g. the United Nations Framework Convention on Climate Change (UNFCCC) or the Convention on Biological Diversity (CBD). Establishing priorities in DC through 10 priority areas:

democracy, civil society and public administration, human rights, and in particular women's and children's rights, legal reform, decentralisation and municipal development,

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• • • • • •

peace development and crisis prevention, education, health, family planning, combating HIV/AIDS; drinking water, water management, wastewater and refuse disposal, food security, agriculture, environmental policy, conservation and sustainable use of natural resources (including combating desertification, preserving soil fertility, sustainable forest management, biodiversity), economic reform and development of the market system (including finance, trade policy and private sector promotion, employment, vocational training, informal sector, Small and Medium Enterprises (SMEs), industrial environmental protection), energy, and transport and communication (BMZ 2004a: 281 et seq.)

• •

Geographical priority areas (BMZ 2004a: 282) through concentration on 70 cooperation countries, i.e.
• •

„priority countries” with if possible at least 3 priority areas, and „partner countries” with if possible just one priority area

Bundling measures in programmes, if possible covering multiple sectors and institutions. Development cooperation and the institutions involved in it are accordingly themselves in a process of development. This cannot mean that concepts and instruments always have to be developed from scratch, and the holistic understanding of development underlying sustainable development in fact requires us to build on learning experience and incorporate the established principles in the new concepts. The following principles in particular have proved their value in technical cooperation (TC): systemic approach (thinking in systems) careful impact monitoring and corrective modification (learning orientation) arise inevitably from the complexity of development processes and the holistic understanding of development underlying the paradigm of sustainable development Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH, the major government-owned German TC organisation, meets these needs through a combination of interdisciplinary technical competence and intercultural regional competence, together with ongoing updating of the instruments for impact orientation. For many years, TC has operated on the principle of transferring ownership of development in a country, sector or project to the key actors as soon and completely as possible. To meet this requirement, TC supports:

participation by those affected in decision-making processes and the equitable distribution of benefits, costs and risks of development measures,

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qualification of actors and modification of the environments so that actors in sustainable development can bring in their competences and fill their roles (capacity development as a central task for technical cooperation), further development of sectoral, national and global forms of governance, i.e. appropriate participation by state, civil society and private sector in management responsibilities.

Development cooperation in the forest sector
Given the importance of forest management as a pillar of sustainable development, it seems appropriate for forest management to be an important issue in international development policy debate. At the UNCED „Rio Conference” forest management was covered in great detail in chapter 11 of Agenda 21 and in the separate document on forest principles. To implement the resolutions of the Rio Conference, the UN Commission for Sustainable Development (CSD) created the Intergovernmental Panel on Forests (IPF) in 1995, which formulated 130 proposals for action that were adopted in 1997 by the UN General Assembly as „Rio + 5”. They included „the concept of National Forest Programmes (NFP) as a framework for orientation for developing and implementing national forest policies”. In 1997 the Intergovernmental Forum on Forests (IFF) was „created to press ahead with implementation of the IPF proposals for action and resolve outstanding questions. By the last IFF meeting in February 2000, over 100 more internationally agreed proposals for action had been adopted” (BMZ 2002: 26). „In 2000 the UN Economic and Social Council (ECOSOC) created the United Nations Forum on Forests (UNFF) and to assist this invited the secretariats of conventions and international organisations relevant to forests to establish a Collaborative Partnership on Forests (CPF). The two together form the International Arrangement on Forests (IAF). The removal of the forest process from the Commission for Sustainable Development (CSD) to an autonomous UN agency reflected the recognition by the international community of the importance of forests to sustainable development” (BMZ 2004b: 13). This reported success does, however, stand in crass contradiction to the fact that the financial volume of international development cooperation (ODA, Official Development Assistance) for promoting sustainable forest management was halved from USD 2,000-2,200 million at the start of the 1990s to USD 1,000-1,200 million in the opening years of the third millennium (JENKINS et al. 2004). In German forest related development cooperation, the annual financial volume of EUR 125 million called for by Parliament has been maintained. This means that „the German Federal Government continues to be one of the biggest bilateral donors in the forest sector” (BMZ 2004b: 10). Currently BMZ is promoting some 170 forest projects in over 50 countries with a (multiyear) total volume of over EUR 900 million. In addition, German forest-related development cooperation is investing roughly half of this amount through multilateral or intergovernmental organisations (cf. BMZ 2004b: 14). The Sectoral Concept for Forest and Sustainable Development (BMZ 2002) is binding for government DC, and provides German NGOs and the private sector with an orientation aid. Three conceptual features of German forest DC seem particularly remarkable:

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Sustainable forest management must be conceived and implemented on a multisectoral basis. „As forest conservation and sustainable management are often seen as purely forest issues rather than multisectoral ones, the importance of sustainable forest management for the economy as a whole and other sectors is underestimated in many developing countries” (BMZ 2004b: 8). Forestry measures must accordingly be integrated into multisectoral programmes such as national forest programmes, and particularly also into national Poverty Reduction Strategies (PRS). This is not only a planning but also a communicative task. „Germany will continue to promote national forest programmes and assist partner countries in making forests an issue for policy and not just considering them as an object for planning” (BMZ 2004b: 47). While the multisectoral threat to the forests has long been known, multisectoral approaches to forest conservation and sustainable management are still in the early stages. German forest DC will continue to follow the established „multilevel approach, i.e. it will operate at several levels (international, regional, national, subnational, local), with networked programmes and combine multisectoral planning with sectoral action” (BMZ 2004b: 13). There has been „particularly good experience with linking policy advisory projects with field projects and preferably feeding concrete experience into policy formulation” (BMZ 2004b:12). „Ecological and social minimum standards (safeguards) are BMZ minimum requirements for programme and project promotion and implementation, and will be operationalised in stages in the cooperation countries” (BMZ 2002:13). „For all forms of commercial forest management … certification under FSC or an equivalent standard for socially and ecologically sustainable forest management must be sought” (BMZ 2004b: 11).

Forest certification as an innovative helper for development cooperation
The goals and principles of forest certification and those of development cooperation are broadly coherent: Both have support for sustainable development as their goal Forest certification can be regarded as a textbook example of the systemic approach: the added value chain is used in a sense as a lever for giving an entity (e.g. in Germany) influence on forest management at a spot possibly thousands of kilometres away, with a completely different culture and environment (e.g. Amazon region). Regular impact monitoring and learning orientation are ensured in enterprise certification with regular controls by the certifiers. In certification, particularly under FSC, participation plays a central role both in formulating the standards and in the process of certification. The standards and regular meetings with the auditors create clear orientation for those active in forest management, which contributes significantly to their qualification and shows clearly in what direction further qualification is needed, including both technical issues and also - and particularly - dealing with interest groups and affected persons.

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Formulation of standards in national working groups contributes significantly to capacity development of the actors involved in both the technical area and communication and negotiation skills. Forest certification - particularly under FSC - with the participation of civil society and private sector in regulatory functions in the forest sector plays a pioneering role in the further development of governance in the forest sector at enterprise, subnational, national and international level. Forest certification can help in many ways to free forest management from sectoral isolation and approach it in a multisectoral manner.

The participation of those affected in standard setting for certifiable forest management leads to consideration of the interrelationships between forest management and other sectors (e.g. tourism, trade, industry) and increased awareness in other sectors of the problems of forest management. The same goes for the participation by those affected and the general public in the compliance verification process. In the framework of the implementation strategy for forest certification, representatives of other sectors (e.g. banks, insurance companies) and consumers can be informed of the advantages to them of forest management complying to the standards, and be persuaded to support this. The PR work associated with forest certification can lead to consciousness raising and corresponding political positioning among the general public for the concerns and problems of sustainable forest management. The standards to be met are based on internationally agreed principles and criteria, and are nationally (regionally) specified and locally applied. Actors at international, national and local level participate in forest certification and collaborate on change processes at all these levels.

• •

Forest certification necessarily implies a multilevel approach.
• •

Forest certification ensures more effectively than any other instrument of forest-related DC that ecological and social minimum requirements are met in DC projects. Due to this high degree of coherence, forest certification can help DC in three ways: 1. Implementation aid for forest DC: operational: forest certification offers enterprises converting to sustainable forest management
• • •

important orientation aids both through the standards to be complied with and the control visits by the certifiers, economic incentives and credibility for the seriousness and binding nature of the intent to convert (enterprises previously known for their exploitive operations will find it difficult to achieve credibility without the communicative help of certification).

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in the forest sector: forest certification initiates change processes which extend beyond the certified enterprise:
• •

a new culture, a „participative culture“, for actors dealing with each other develops in the sector. besides the state forest policy institutions, the private sector and civil society are increasingly involved in regulation processes in the sector, new forms of governance are practised; such forms of governance, e.g. national working groups, can be more effective and efficient as starting points for change processes which DC is seeking to promote in the forest policy sector than the current institution building of classic forestry institutions. forest certification increases transparency in the forest sector in several ways: movements of products in the added value chain become trackable, products from legal sources become identifiable; with new legality, the sector’s legitimacy also improves in the public eye, the quality of forest management in the certified enterprises becomes obvious, including compliance with social, economic and ecological standards. The illustrative and instructive example of certified enterprises increases competence in the sector, not least among the state offices. The labour market for qualified employees grows. Due to its structure-changing impacts, forest certification can contribute to an improved environment for and increased effectiveness of other measures, e.g. in the field of training. Forest certification as a change agent can prepare the sector for more extensive change processes, e.g. entry into National Forest Programmes conceived and propagated in the framework of the Rio follow-up process.

• • •

2.

Help in changing multisectoral environments: The changes promoted in the forest sector by forest certification, particularly in terms of participation, governance, transparency and binding status, can have an effect beyond the forest sector and improve the conditions for sustainable development in multiple sectors. Forest certification can particularly help to initiate a culture of sustainable development, i.e. always considering the social and ecological aspects of development problems as well as the economic aspects, bearing in mind the availability of resources for future generations, using resources efficiently and also with social equity, understanding development as a partnership process and striving for coherence from the local to global levels. The importance of cultural factors as part of and a prerequisite for development is increasingly being understood and addressed. The latest Human Development Report by the UN Development Programme is entirely devoted to this issue, with the subtitle „Cultural liberty in today’s diverse world” (UNDP 2004).

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3.

Innovation help for DC itself: The change processes supported by normal DC projects often stay within the limits of the project area or expire at the end of the project. By contrast, the change processes initiated by forest certification develop an autonomous dynamism because of the associated incentives, resulting in their dissemination over time. The bilateral DC of many countries is increasingly concentrating on specific priorities and countries. However, this poses the risk that geographical or thematic gaps in DC will develop. Promoting forest certification, particularly as a supraregional approach, offers the opportunity of bridging these gaps and contributing towards promoting sustainable forest management in countries which are outside the selected geographical priorities or where forest management has not been selected as a thematic priority.

Opportunities and risks of supporting forest certification through development cooperation
Development cooperation can support forest certification in various ways: Financial and organisational: DC can assume costs either for enterprise certification or for establishing a certification system in a country, e.g. costs of workshops, working groups or studies. DC may also be able to provide organisational support through its network of offices and projects, e.g. in searching for qualified personnel, organising conferences or administration of measures. Conceptual: Based on the long practical experience of DC in various sectors and regions, DC can provide conceptual advice in establishing and developing national certification systems, e.g. on questions of capacity development, participation and governance, impact monitoring and sectoral technical questions, e.g. market studies or technical forestry problems. DC can also support learning processes for conceptual further development through pilot studies on new approaches to certification or impact analyses of existing certification initiatives. Finally, DC can identify new potential for synergy and cooperation through studies on interactions and complementarity with other (e.g. forest policy) initiatives to promote sustainable development. Political: DC participation in establishing and developing national certification initiatives can significantly boost their status and acceptance by the public, and particularly by the government and private sector. DC can also emphasise the significance of forest certification as an instrument for implementing sustainable development in the framework of political dialogue, e.g. in government negotiations on future cooperation, providing political support. Finally, it is conceivable that DC could note in agreeing nonforest measures in forest areas that functioning forest certification in this area can be interpreted as proof of the seriousness of efforts towards sustainable forest use and sustainable development. DC can also operate at international and intergovernmental level, e.g. in the negotiations of the International Tropical Timber Organisation (ITTO) to emphasise the importance of forest certification as an instrument of sustainable forest management and against trade in illegally logged wood, and to stress the political priority of this instrument.

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Opportunities and risks of supporting forest certification through development cooperation

Supporting partnerships: Possibly because of strong roots in emphatically confrontational civil society organisations, it is often a laborious process for forest certification to attract state organisations or the private sector as partners, although such partnerships would seem natural to an outsider. Due to the generally close relationships between DC and government agencies and growing cooperation with the private sector, DC can have a bridging function between state, private sector and civil society and support corresponding partnerships. Intermediation between state and certification initiatives organised by civil society and the private sector can make better use of stimuli from voluntary standards initiatives for institutionalising standards in a statutory framework. Boosting demand: Finally, DC can emphasise the development policy importance of using certified forest products to partner institutions in forest and nonforest projects. Procurement policy of government institutions in particular can make a very significant contribution towards the economic stabilisation of national certification systems. Despite this wealth of possibilities for DC to support forest certification, it is important not to forget that a commitment to forest certification by DC also involves considerable risks: Risk of inadequate ownership: If the decision on forest certification is strongly influenced by external donors, but merely tolerated by the target groups instead of being actively supported, there is a risk that certification will be seen as serving foreign interests, and will not be renewed when projects end, or that the promoted national working groups will shut down. Subsequently, the target groups can also remain passive in other measures. Risk of fragmenting social development: Certification, particularly if it is to be implemented through marketing, requires decision-making structures and management skills which can respond quickly and appropriately to developments in markets. This, however, is often out of line with current working procedures and decision making processes, e.g. in communal forest management. This can lead to failures by communal forest management in the markets, or to disruptions of social relations and procedures. Unfortunately, DC does not always take into account the social conditions for success of certification. Risk of excessive vertical integration: Certification can only be implemented in markets if the entire added value chain is certified right through to the consumer’s supplier. If a forest enterprise wants to sell certified raw wood, it often has problems finding Chain of Custody (CoC)-certified sawmills. It is logical to integrate the next stage in processing into the enterprise, and add a sawmill to forest management in the hope of increasing value added in the enterprise. The easier the financing, the easier it is to take this decision. However, because operating a sawmill involves entirely different requirements in terms of technical knowledge and management capability than forestry, the attached sawmill can easily cause greater losses than the added value from certification of forest management. The loss is easily but unjustly attributed to certification. Risk of inaccessibility of markets which welcome certification: Not every forest enterprise is able to access markets which welcome certification, either because of lack of transport links, quantities supplied or market links. In such cases, it is very risky to implement certification through marketing.

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Forest certification and development cooperation – an innovative partnership
Dietrich Burger

Risk of inadequate qualities: The potential to create added value through certification, although undoubtedly present in many areas, can only be realised if the supplied products meet other quality requirements in addition to certification, specifically in terms of processing and grading quality and reliable delivery.

Outlook
Forest certification is certainly not a simple panacea which could guarantee that forest management makes its potential contribution to sustainable development. However, if approached properly in a given situation, a partnership between forest certification and development cooperation can make an important contribution to this goal This cooperation can be innovative for both partners by developing new role understanding, cooperation partnerships and possibilities for impact. Realising the potential of this partnership is primarily a communication problem. Actors in forest certification and DC pay little attention to each other, communicate little and often in a language which is difficult for the other side to understand. In many cases, prejudices are clung to which make it difficult to realise that the „other side” is working towards the same goals and with entirely coherent principles. Conversely, development cooperation and forest certification have already made a start at various points on very fruitful cooperation in partnership. The present publication will hopefully contribute to the further development of this partnership in the interests of sustainable development.

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References

References
BMZ (1996): Entwicklungspolitische Konzeption des BMZ, Bonn. BMZ (2002): Sektorkonzept Wald und nachhaltige Entwicklung. BMZ Konzepte Nr. 121, Bonn. BMZ (2004a): Medienhandbuch Entwicklungspolitik 2004/2005. Berlin. BMZ (2004b): Fortschrittsbericht zur deutschen Bilateralen Entwicklungszusammenarbeit im Waldsektor. Unterrichtung durch die Bundesregierung. Deutscher Bundestag, Drucksache 15/4600, Berlin. JENKINS, M. / SCHERR, S. J. / INBAR, M. (2004): Markets for Biodiversity Services. Potential Roles and Challenges. Environment, 46/8:32-42. UNDP (2004): Bericht über die menschliche Entwicklung 2004. Kulturelle Freiheit in unserer Welt der Vielfalt. Deutsche Gesellschaft für die Vereinten Nationen e.V., Berlin. WIECZOREK-ZEUL, H. (1999): Nachhaltige Entwicklung durch Globale Strukturpolitik. UN 3/199, 100-103.

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About the authors

About the authors

About the authors

Nina Bressel Since 2000 Nina Bressel has been studying Politics, Law and Economics at Darmstadt University of Technology, Germany. Since 2001 she has been assisting at the Chair for International Relations under Prof. Dr. Klaus Dieter Wolf. Dietrich Burger Dietrich Burger studied Forest Sciences in Freiburg, Munich and Oxford and obtained a PhD from the University of Freiburg. From 1968-72 he worked as a civil servant in the State Forest Authority of Baden-Württemberg. From 1972-81 he lectured Forest Management at the University of Curitiba, Brazil. In 1982-83 he attended an MSc course in Agricultural Sciences in the Tropics, at the University of Göttingen. In 1983-87 he coordinated the EMBRAPA-GTZ research project, in Belém, Brazil. From 1987 to 2004 he filled the following positions at GTZ headquarters in Eschborn: Project Manager, Head of Division of Forest Management and Conservation of Nature, Project Manager of the GTZ Forest Certification Project, Director of the Programme for Social and Ecological Standards. As of 2004, and in an honorary capacity, he became a GTZ senior adviser for sustainable development and professor at the University of Freiburg. Ronnie De CAMINO Velozo Forester and Economist, University of Chile. Dr. rer.nat. University of Freiburg. Currently Professor at the University for Peace, United Nations. Formerly Professor of the Graduate System of CATIE and Invited Professor of the Technological Institute of Costa Rica and of CIDIAT in Venezuela. Founding Member of the Board of Trustees of CIFOR and Former Member of the Board of the TROPENBOS Foundation. Former Chief Forestry Officer of Precious Woods and Research and Planning Manager of CONARE, the Venezuelan Reforestation Company. Consultant for many bilateral and multilateral agencies, with experience in most of the Latin American Countries in the areas of forest management, natural resources policies, sustainable development and community management of natural resources. Chew Lye Teng Bachelor of Science (Honours) from Universiti Malaya and a Masters in Business Administration from the International Management Centres Multinational, Buckingham, United Kingdom. Currently he is Chief Executive Officer of the Malaysian Timber Certification Council, Malaysia (MTCC). In this capacity, he coordinates the implementation of MTCC’s activities that include the facilitation of standard setting processes for forest management and chain-of-custody certification; implementation and monitoring of the operation of the certification scheme; coordination with national, regional and international bodies related to timber certification to facilitate cooperation and mutual recognition arrangements; and administration of the day-today running of MTCC. Prior to this, Mr. Chew was attached to the Malaysian Timber Industry 233

About the authors

Board (MTIB) from 1974 to 1998 where he served in various capacities, including Director of the Technical Services Division as well as the Development Division. Chris Elliott Director of WWF's International Forests For Life Programme. Chris Elliott has a Doctorate in Forest Policy from the Swiss Federal Institute of Technology, Lausanne and a Masters degree from the Yale School of Forestry and Environmental Studies. He has been involved in international forest conservation for over fifteen years and has worked on the ground in Indonesia, Ecuador, Cameroon, Canada and Sweden. He was the first chairman of the board of the Forest Stewardship Council and has published and taught extensively on the subject of forest certification, including a period as guest professor at the agricultural University of Vienna, Austria. Ben Gunneberg BScFor, MICFor, MBA, a graduate from Aberdeen University, a chartered forester and a business graduate from the Open University, he has spent most of his working life in Forestry. His career started as a forestry contractor and after university he worked as a researcher at the University of Wales, Bangor in Forest Economics. Thereafter he worked for the Timber Growers Association in the UK in various posts covering all technical and policy aspects of forestry. As Technical Director he became actively involved in the development of forest certification schemes and became the PEFC Council’s Secretary General at its inauguration in Paris in June 1999. In 2000 he relocated to Luxembourg to set up the PEFC Council’s international headquarters. Pierre Hauselmann Pierre Hauselmann has a Masters Degree in Environmental Management. He has been involved in standardisation and certification for more than 10 years and participated as technical expert in several standardisation processes, including the drafting of the ISO 14000 series of standards on environmental management. He has a broad expertise in multi-stakeholder processes for standard setting and has directly contributed to the policy, strategic and institutional development work of several environmental and social certification schemes. He is a founding member of the Forest Stewardship Council. He has advised NGOs, governmental and intergovernmental organizations, the private sector on issues related to trade and the environment, standardisation, certification and labelling. In 1995 he founded Pi Environmental Consulting, the company in which he is a partner. Jürgen Hess Coordinator of the Forest Certification Component within the Programme for Social and Ecological Standards at Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ). He has a Doctoral Degree in Forestry from the University of Technology of Dresden. From 1997 to 2000 he worked for GTZ in Laos as Advisor for Forestry Education, Research and Organizational Development. In 2000 he changed to Cambodia and until 2003 worked for GTZ as a Forest

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About the authors

Policy Advisor to the Ministry of Agriculture, Forestry and Fisheries supporting the Government of Cambodia in the design and implementation of a National Forest Programme (nfp). Alexander Hinrichs Free-lance expert in international forest management. Alexander Hinrichs is an external advisor to the GTZ Programme for Social and Ecological Standards where he is responsible for coordinating all programme activities relevant to certification in Asia. Furthermore, he advises the ASEAN certification initiative and is actively engaged in development cooperation throughout all of Southeast Asia as well as in China. Between 1996 and 2002, he worked for GTZ as deputy team leader for the „Indonesian-German Sustainable Forest Management Project“ in East Kalimantan. During this period, he worked with many different stakeholders, including the private sector. He has been accompanying the development of LEI since 1997 inter alia facilitating its meetings with the FSC. Prior to his work in Indonesia, he was an academic lecturer and management consultant. Barbara Lang Project Officer in the Programme Office for Social and Ecological Standards at Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ). She has a Masters Degree in Forestry and a B.A. in Modern History, both from Oxford University. From 1998 to 2004 Barbara worked for the GTZ Forest Certification Project, from mid-2003 as its Coordinator (the project became an integral part of the Programme for Social and Ecological Standards in 2001). Prior to joining GTZ she worked for the FSC UK Working Group. As an individual member of the FSC she has been involved in the work of the German FSC Working Group from its beginning (1998) and is presently a member of its steering committee. Heiko Liedeker Executive Director of the Forest Stewardship Council. Prior to this appointment in 2001 he served as Chairman of the WWF’s (World Wide Fund for Nature) European Forest Team and also director of WWF’s European Certification Initiative. He is the former head of WWF Germany’s Forestry Department and a former Board member of the FSC Germany Working Group. He was a senior consultant to the Kingdom of Saudi Arabia for 3 years and advised on the application of environmental information systems. He has also served as an expert at the University of Bucharest in Romania. Mr. Liedeker holds a Masters degree in Forest Ecology from the University of Vermont, USA and an undergraduate degree in Forestry from the LudwigMaximilian University in Munich, Germany during which time he also studied at the University of New Brunswick, Canada. Tasso Rezende de Azevedo Graduated in Forestry from the „Luiz de Queiroz” School of Agriculture, University of São Paulo, 1994. Specialised in Forestry Policy (Oxford University, England, 1997), Forest Certification (Orgut - Upsala, Sweden, 1998), Forest Auditing (Chetumal, Mexico, 1995). He was a Research Associate with the IPEF (Forest Studies and Research Institute) in 1995, the year in which he

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About the authors

also co-founded IMAFLORA (Institute of Forestry and Agricultural Management and Certification) of which he was Executive Chairman until 2002. Between 1997-99 he was Cocoordinator of the Working Group on Non-Timber Forest Products of the Global Forest Stewardship Council (FSC). He has been the leader of the AVINA Foundation since 2003. At the beginning of 2003 he was made manager of Sustainable Use of Forest Resources, Secretariat of Biodiversity and Forests, Ministry of the Environment, becoming Director of the National Forest Programme in November of the same year. Leading Auditor and Senior Instructor for Forest Certification. He has around 35 publications on certification, forest management and forestry policy. Oliver Scholz Graduate Forester. He started his forestry career working in various posts in the German State Forest Service of the State of Hessen. Thereafter he was a researcher at the University in Göttingen. Until recently he was a technical expert for the Confederation of German Forest Owners Associations in Berlin covering economical, technical and policy aspects of forestry. In this position he was actively involved with a wide variety of international processes relating to forestry. Oliver Scholz joined PEFC Council in Luxembourg in 2004 as its Communications Manager. Harnarinder Singh Bachelor of Science (Forestry) from Universiti Pertanian Malaysia (UPM) and a Master in Philosophy (M.Phil.) in Forest Economics from University of Wales, Bangor, United Kingdom. Currently he is Senior Manager of the Malaysian Timber Certification Council, Malaysia (MTCC). In this capacity, his duties include the formulation of policies and strategies in the planning and development of the MTCC scheme; coordination of consultations and discussions with stakeholder groups for the development of certification standards for forest management and chain-of-custody; preparation, implementation and evaluation of publicity and promotion programmes on MTCC; liaising closely with MTCC’s clients, local stakeholders, local and foreign mass media organisations, and all other interested parties; and management of MTCC’s participation in international exhibitions and fairs. Prior to this, Mr. Harnarinder was attached to the Forestry Department Peninsular Malaysia from 1980 to 2000 where he served in various capacities in the Forest Plantation Unit, Silviculture Unit, and Pahang State Forestry Department in charge of forest planning and inventory. Roberto Smeraldi Journalist and Director of Friends of the Earth - Brazilian Amazon. Author of studies and books on public policies, sustainable development and the environment. Between 1989 and 1992 he was President of the International Committee of NGOs for the United Nations Conference on Environment and Development. Since 2003, he has presided over the International Advisory Group of the Pilot Programme for the Protection of Brazil’s Forests, an advisory body to the federal government and the World Bank, of which he has been a member since 1996. He is a member of the Brazilian Forum on Climate Change, presided over by the President of the Republic, as well as of various consultative bodies of the federal government. He is a member

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of several councils of foundations and environmental institutions, such as Yale University’s „Forest Dialogue”. Michael Spencer Head of Marketing and Communication, Forest Stewardship Council (FSC), Bonn, Germany. Michael Spencer was engaged by the FSC in July 2003 to develop strategic marketing and communications programmes for the FSC global network. This work includes: Enhancing the value of the FSC brand through strengthening its market presence, simplifying its promise and protecting its integrity; Identifying potential revenue generating opportunities that could consolidate longer term financial stability of FSC, and; Leading the development of communication initiatives to strengthen the relationships between FSC and non-government organisations, corporations and governments as well as consumers of forest products. Prior to joining FSC, Michael spent almost 10 years in the corporate sector as; Group Manager Corporate Citizenship at the National Australia Bank, Vice President Communication at BHP Billiton and Head of Communication and Corporate Marketing at BHP. He has worked in consulting as General Manager of the National Institute of Economic and Industry Research (Australia) and in government as a senior advisor to the Premier of Victoria (Australia) and media advisor to a number of ministers in the Victorian Government. Michael holds a BA in politics and economics and a Graduate Diploma in Public Policy from the University of Melbourne and, a Graduate Certificate in Management from the Australian Graduate School of Management. Nancy Vallejo Lawyer with a Masters Degree in Ecosystem Management. Since 1999, Nancy Vallejo has been a partner at Pi Environmental Consulting, where she has been involved in policy and strategic issues, and field work related to trade and environment, corporate social responsibility, standardisation, certification and labelling, social and environmental effectiveness of market mechanisms, legal and institutional development, capacity building and training. She has been active with different environmental and social certification initiatives, with a special interest in strengthening their capacity to deliver in developing countries, particularly for SMEs. Prior to Pi Nancy had performed the roles of General Secretary of the Colombian Environmental Protection Agency and Senior International Treaties Co-ordinator of WWF International, focusing on the Convention of Biological Diversity and its implementation in key developing countries. Adalberto Veríssimo Agronomist, with a Post-graduate Degree in Ecology from Pennsylvania State University (USA). Co-founder and currently Senior Researcher of the Amazon Institute of People and the Environment (Imazon) and Leader of the AVINA Foundation since 2002. Author of 14 books and dozens of scientific articles on ecology, biodiversity, forestry management and natural resources policy in the Amazon. Member of the executive board of Imaflor (Institute of Forestry and Agricultural Management and Certification) and member of the technical committee of the ARPA Project (Protected Areas Project), whose mission is to significantly expand the

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About the authors

Conservation Units of Integral Protection in the Brazilian Amazon. Consultant for various organisations such as the World Bank, Ministry of the Environment, FAO and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ). Klaus Dieter Wolf Since 1992 full professor, Chair for International Relations, Institute of Political Science, Darmstadt University of Technology. He has been President of the German Political Science Association (DVPW) since 2003, and written numerous publications on international institutions, the problems of cross-border governance and theories of international relations.

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