An Investigation into the Widespread Use of Teak in Reforestation Efforts in Panama: Trends, Implications, and Alternative Strategies

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1 Jamie Pottern Restoration Ecology Prof. Glenn Adelson May 4, 2009 Abstract An Investigation into the Widespread Use of Teak in Reforestation Efforts in Panama: Trends, Implications, and Alternative Strategies Since the introduction of teak (Tectona grandis) into the Republic of Panama in the early 20 th century, this valuable exotic hardwood tree has been planted widely in plantations throughout the country. In the past two decades, teak has become the number one tree used in reforestation efforts, comprising over 75% of the area reforested nationwide. Despite causing widespread ecological degradation and being economically destructive for small farmers and landholders, the extensive use of teak for reforestation has persisted. Many economic and political factors account for this trend, most notably national legislation that provides tax incentives for foreign teak investment. Additionally, a lack of knowledge about native tree species many of which have recently been demonstrated to perform better than teak perpetuates an ideology that native tree species do not grow well in Panama. In an effort to improve reforestation efforts and increase the knowledge of native tree species throughout the country, many local and international efforts have been undertaken, including long-term native tree species research, collaborative efforts with local indigenous tribes, partnerships with international organizations, and community education efforts. Additional steps such as the promotion of agroforestry projects, further discussions with local landholders, and greater government involvement in international reforestation initiatives, will be key to ensuring the long-term health of Panama s forest and the well being of its people. Introduction: Teak in Panama The teak tree (Tectona grandis), a valuable hardwood species, has a played a prominent role throughout the long and complex history of global trade in natural resources. Native to southeast Asia, teak (Tectona grandis) is today the tree used most widely in reforestation efforts in Mesoamerica. In Panama, which has been faced with widespread deforestation in the past few decades due primarily to economic drivers, 1

2 approximately 77 percent of the reforested area nationwide is in teak plantations. 1 In some regions, such as the Bayano-Darién region, the agricultural frontier of eastern Panama, teak comprises approximately 99 percent of the reforested area. 2 Led overwhelmingly by foreign timber interests, and prompted by national legislation providing tax incentives, the ubiquitous trend toward land consolidation in teak plantations has many alarming implications for the country. This trend jeopardizes not only the health and integrity of Panama s forests and natural systems, but has long-term social and economic consequences for Panamanians. An analysis of these underlying trends and their implications are critical for forging new and innovative solutions to the many challenges posed by widespread teak production. Local initiatives, such as greater research on native tree species, outreach and education, and the increased involvement of actors such as indigenous communities and non-governmental organizations, will be key drivers of change in the struggle to protect the land, and along with it, Panamanian cultures and livelihoods. I. A Brief History of Teak For centuries, teak (Tectonis grandis) has been prized for its valuable timber and use in high value wood products, such as ships, furniture, and other decorative items for buildings. 3 Today, teak ranks among the top five tropical hardwood species in terms of its global plantation area 4 (see Figure 1). Although endemic only to India, Myanmar, the 1 From ANAM, Indicadores Ambientales de la República de Panamá, 2006: Superficie Reforestada Porcentaje de la Superficie Reforestada en la Repüblica de Panamá, Según Especie, Años , cited in Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3), Ibid. 3 Panama Teak Forestry (2006). Teak: A Global Overview. 4 Panama Teak Forestry (2006). Introduction. 2

3 Lao People s Democratic Republic, and Thailand, teak has been naturalized in Java, Indonesia where it was introduced over 400 years ago, and has been established in other tropical areas around the world. 5 Other sites of teak introduction include tropical Asian countries, tropical African countries on the eastern and western coasts, some islands in the Pacific, such as Papua New Guinea, Fiji, and the Solomon Islands, as well as in northern Australia. 6 The planting of teak in Honduras, Costa Rica, and Panama began in the late 1920s, and now covers over 33,000 hectares in Latin America and the Caribbean, spread mostly across Costa Rica, Panama, El Salvador, Colombia, Guatemala, Venezuela, Ecuador, and Trinidad and Tobago. 7 Figure 1: Native to Southeast Asia, teak (Tectona grandis) is a valuable hardwood tree, widely planted around the world s tropics. In Panama, reforestation efforts since the early 1990s have predominantly taken the form of teak plantations, comprising 77% of the reforestation area nationwide. (Photo Credit: Center for Tropical Forest Science, Web Atlas). 5 Ibid. 6 Ibid. 7 Malana Impex Pvt Ltd: The Teak Timber Trading Company. The History of Teak. 3

4 Other exotic species, such as Acacia (Acacia spp.), Eucalyptus (Eucalyptus spp.), and Caribbean pine (Pinus caribaea), have also been used widely as plantation trees. In fact, teak, acacia, and eucalyptus together represent more than 51% of all plantations established in the Neotropics. 8 Prior to 1990, the main plantation species in Panama was Caribbean pine at 7,000 hectares, but by 1995, teak became the major species with approximately 28,000 hectares of new plantations. 9 II. Underlying Causes of Teak Production in Panama The rise in teak production as a reforestation tree in Panama can be attributed to a confluence of numerous historical, political, and socio-economic factors. As the global demand for teak began to surpass the supply of natural sources of the valuable hardwoods in the mid-20 th century, many countries began to increase their production of teak plantations. In Panama, which faced rapid deforestation throughout the second half of the 20 th century due to similar pressures that encouraged the conversion of forests into lands for ranching and agricultural purposes, teak production was seen as a way to simultaneously reforest the landscape and bolster the economy through competition in the global market for valuable hardwoods. Beginning in 1992, the Panamanian government created a series of policies that provided tax incentives to national and foreign investors to grow teak trees for external markets. These policies resulted in land speculation and a resultant rise in land values, 8 M.H. Wishnie, D.H. Dent, E. Marisca, J. Deago, N. Cedeño, D. Ibarra, R. Condit and P.M.S. Ashton (2007). Initial performance and reforestation potential of 24 tropical tree species planted across a precipitation gradient in the Republic of Panama. Forest Ecology and Management. 241 (1) International Tropical Timber Organization (ITTO). Status of Tropical Forest Management p

5 which prompted small landholders, who were struggling economically to keep their ranches or had already abandoned their pastures to join the urban work force, to capitalize on their land by selling it off to timber companies. As little scientific data have been documented on native Panamanian trees, landowners have been perpetuating the trend of growing familiar cash-crop trees, like teak, instead of using native alternatives for reforestation. Law 24 & Investment Schemes In the early 1990s, the rate of deforestation in Panama was close to 50,000 hectares per year. 10 In light of the visible havoc being wrought on the Panamanian forests, the government sought to decrease the damage being done by providing incentives for timber companies, local organizations, and other groups to start reforestation programs. 11 It was believed that this would not only increase forest cover, but would also generate more jobs around the country. 12 On November 23, 1992 the Legislative Assembly passed the Panama Reforestation Incentive Law, commonly known as Law As can be inferred from the plain text of Law 24, its underlying objective was to induce as much investment in high market value trees as possible in the shortest amount 10 Mariscal, Emilio. Personal communication. April 21, (See Appendix) 11 Ibid. 12 Ibid. 13 Panama Reforestation Incentive Law: Legislative Assembly Law 24 (November 23, 1992). 5

6 of time. Article 4 of the law exempts any person or company participating in the commercialization of products from forest plantations, as long as the forest project is carried out within 25 years. Similarly, Article 5 states that any direct or indirect forest investment by a person or company will be 100% deductible from income tax, so long as the invested money will be used for reforestation activities. Article 6 exempts import and other duties from any equipment or materials relating to reforestation activities. The law also encourages large-scale reforestation by exempting farms who use more than 50% of their land for reforestation or that have a minimum of 200 hectares reforested from real estate tax and transfer tax (Article 7). Any bond, shares, or assets dedicated to reforestation activities and the profits from the sale of those bonds are exempt from income tax (Article 8). Article 9 gives Preferential Forest Loans" for reforestation, which will have a "Preferential Bond" of 4 percentage points lower than the local market interest rate. All of the interest on these loans is 100% deductible from income tax. In what is another huge incentive for foreign investment in Panamanian reforestation, Article 11 gives an immigrant visa to those who invest over $40,000 in forest activities. However, this plantation only has to be maintained for a minimum of 10 years until the final cut of the forest plantation. Additionally, the law also encourages legal mechanisms to exchange external public debt for reforestation (Article 12), and makes squatting a felony on reforested lands (Article 13). While the squatting on plantation lands is a felony, the failure to comply with the guidelines of Law 24 results in what is a comparative slap on the wrist the removal of the owner from the Forest Register for up to 5 years and their rights to incentives and benefits of the law suspended for that time (Article 19). 6

7 While this law indicated the country s political will to increase reforestation, 14 it lacks an ecological interpretation of the form that a successful reforestation effort should ideally take. For example, while the 1992 law declares it necessary To increase all forms of reforestation in the Republic of Panamá (Article 2, Section 1), it establishes a thirty (30) year period during which private reforestation is given priority and full support (Article 2, Section 3) and promotes the establishment, development, and improvement of the forest industry so that reforestation products are used as raw materials (Article 2, Section 5). 15 The only environmental considerations it takes are the protection of wild areas around the Panama Canal Watershed (Article 16), and minimum requirements for areas around deforested lands, such as leaving a strip of forest no less than 10 meters on both sides of rivers and streams (Article 17, Section 2). While such a buffer is essential to the health of waterways, a minimum requirement of 10 meters will not suffice to protect the water body from agricultural runoff and erosion (see section on Environmental Implications). Omitting ecology from the equation, the law neglects to specify a preference for ecological functioning, and instead prioritizes those species from which companies and corporations would profit. Thus, it is not difficult to see why teak, a valuable hardwood species, would be utilized so widely in reforestation. While subsequent amendments to Law 24 (namely Resolution Number AG , the Executive Decree 89 of June 8, 1993, Article 80-C of the Executive Decree 170 of October 27, 1993, and the Fiscal Reform Law 6 of 2 February 2005) have slowed reforestation slightly, it is still a 14 United Nations Food and Agriculture Organization (FAO): The Forestry Department (2002). Teak (Tectona grandis) in Central America. 15 Panama Reforestation Incentive Law: Legislative Assembly Law 24 (November 23, 1992). emphasis added 7

8 persistent trend around Panama with teak as its number one species. 16 The Role of Foreign Timber Companies & Corporations According to a study in the Bayano-Darién, the predominant agents of plantation reforestation between 1994 and 2007 were non-local and well-financed, specifically: 1) international corporations or national international timber corporations, 2) reforestadoras (i.e. a relatively smaller commercial interest that establishes and sells young plantations as investments) or a non-forestry commercial interest (i.e. clients of the reforestadoras, such as investment groups and insurance companies), or 3) an individual. 17 The survey found that during those years, commercial interests afforested 5241 hectares and 28 timber corporations alone afforested 4208 hectares. 18 Additionally, it was found that corporations established plantations on average15 times larger than those of individuals and six times larger than those of reforestadoras. 19 Plantations owned by those based in urban areas were rarely greater than 20 hectares (often less than 10 hectares), while the plantations operated by international corporations were regularly greater than 100 hectares, with the total scale of a single operation often measuring between several hundred to over 1000 hectares. 20 Such trends result in land consolidation and the rapid inflation of land values. Small landholders, struggling economically, are enticed to capitalize on their land by selling it off to the timber companies (see section on Socioeconomic Implications). 16 Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3), See for legislation documents. 17 Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3), Ibid. 19 Ibid. 20 Ibid. 8

9 Unfortunately, websites and advertisements from timber companies extolling the virtues of teak and their positive environmental and socio-economic effects are rampant. These websites, directed at foreign businesses and wealthy individuals, couch teak plantations as growing sustainable investments for your future 21 and being conservation oriented (see Figure 2). One timber company s website explains: Cleared land in Panamá can be bought for as little as $1,500 a hectare and is perfect for sustaining Teak trees in reforestation projects. Panamá real estate is an excellent value and the government has enacted many laws which encourage both business and foreign ownership. With an ideal climate and a supportive government, Panamá is a perfect location for reforestation projects such as Teak plantations. 22 Figure 2: A saw milling operation in Panama City, run by United Timber Industries. This Indian, multinational company has operations in over 15 major teak producing countries in Asia, West Africa, South America and Central America. 23 Timber companies like this one play a large role in controlling the global market for teak, often buying up land from small landholders (Photo credit: United Timber Industries, 2006). 21 United Teak Corporation. (2007). World Conservation- Why do we Need Reforestation Projects? 22 Ibid. 23 United Timber Industries. (2006). Profile. 9

10 Additionally, another website claims that, Properly done teak plantations are socially and environmentally beneficial in addition to being very profitable. 24 While some timber companies may well indeed be environmentally and socially minded, the ecological fact is that teak plantations, planted on such a wide scale and with very little environmental foresight are ultimately detrimental to the health and integrity of Panama s forests. Local Politics In addition to national laws and the widespread influence of timber companies and foreign landowners, local politics also have an influence on reforestation efforts throughout Panama. While the type and scale of reforestation inevitably varies among the different provinces and districts throughout Panama, local governments can be very significant political units. 25 As in the case of the District of Chepo, one of the eleven districts in the Panama Province, where landowners must pay a fee to acquire tree permissions to legally cut on their land, the local government has generated a lot of income through this process. 26 This struggle to obtain as much profit as possible from reforestation induces competing politics between different districts, as well as between those districts and the national government Panama Teak Forestry (2006). Introduction. 25 Nathan Gray, co-director of Earth Train. Personal communication on 3/12/ Ibid. 27 Ibid. 10

11 Limited Research & Knowledge on Reforestation & Native Trees in Panama Most observant landowners would notice the destructive nature of teak trees and other exotics, which elicits the question of why they would still persist in utilizing it for reforestation. Government policies and tax incentives aside, one plausible answer, posited by Emilio Mariscal, one of Panama s top forestry experts, is the lack of data on the subject of appropriate reforestation trees in Panama. 28 Analyzing the history of restoration science, one finds that it has its origins in Europe, where their exploitation of their forest resources dates back several thousand years, and was heaviest in the centuries leading up to the industrial revolution in the 19 th century, when the survival of human society was dependant upon wood and timber. 29 These forest products were used for economic development, the construction of houses, bridges, ships, furniture, and fences, and for charcoal (which fueled the beginning of industrialization) and tanning agents for dyes. 30 This long-term, unregulated use of Europe s forests caused widespread deforestation, and forest management was not instituted until the mid-18 th century when the idea took off and continues all around Europe until this day. Interestingly, pine (Pinus spp.) and spruce (Picea spp.) were the trees used most heavily in forest restoration, due to their large production of seeds, which were easy to harvest, transport, and handle. 33 Accordingly, much of the long-term, well-documented scientific data on 28 Emilio Mariscal. Personal interview on February 17, (See Appendix) 29 Fischer, A. & Fischer, H. (2006). Chapter 10: Restoration of Forests. In Jelte Van Andel and James Aronson (Eds.) Restoration Ecology: The New Frontier pp Ibid. 31 Ibid. 32 The first attempts at forest restoration were in the 14 th century (the oldest managed forest in the world is the Nürnberger Reichswald). Hans Carl von Carlowitz ( ), a member of the administration of the minding industry in Freiberg/Saxony who was also responsible for timber production wrote the first ever textbook on silviculture, calling for the management and sustainable utilization of Europe s forests (Fischer, A. & Fischer, H., 2006, pp. 127). 33 Ibid. 11

12 trees for reforestation and forest restoration come from trees either native to Europe, or those that can glean a high price in the global market economy. In Panama, whose societies prior to colonization and the forces of the western market economy were historically based upon a tribal lifestyle that did not exploit their forests to the same magnitude as Europe, rampant deforestation is relatively recent. Therefore, compared to Europe, there is little documentation of the native Panamanian trees and little scientific knowledge about the appropriate trees and methodology to use for silviculture. The ITTO also reports an apparent lack of research and training capacity on the management of Panama s natural forests. 34 Due to this dearth of knowledge, when Panamanians go to reforest their land, they often resort to planting trees that they have heard of, such as teak, eucalyptus, Caribbean pine (Pinus caribaea), or acacia, which are generally those that have a high market value. 35 III. Implications of these trends Environmental Implications A teak plantation is fundamentally different than a productive and diverse native forest. According to the National Environmental Authority (Autoridad Nacional del Ambiente, or ANAM), between 1992 and 2004 approximately 46,000 hectares were reforested in Panama, predominantly by international timber corporations with interests in export markets. 36 The approximately 33,000 hectares reforested between 1992 and 2000 represent about 9 percent of the total area deforested over the 10 years between 34 International Tropical Timber Organization (ITTO). Status of Tropical Forest Management p Emilio Mariscal. Personal interview on February 17, (See Appendix) 36 Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3),

13 1990 and A recent ANAM environmental management report from January 2009 indicated that since 2000, the amount of forest cover in Panama has increased by one percent, while the rate of deforestation has decreased by half (from a rate of 47,000 hectares per year to 23,000 hectares this year) 38 (see Figure 3). However, reforestation cannot simply counter deforestation due to the lack of environmental standards in typical reforestation. According to Law 24, reforestation is defined only as the planting of forest species, and fails to differentiate between what would ideally be a mixed stand of native species and a monoculture of an exotic species, like teak. 39 In addition to the vague, inadequate definition of reforestation, the statistics from ANAM are simply calculating change in forest cover, without regard to the type of trees that have been planted there. More monoculture plantations are not an adequate indicator of forest health, and the neglect of this difference indicates how lacking Panamanian reforestation policy is in terms of stewarding the protection of their forest ecosystem and fostering principles of sustainability. 37 Ibid, ANAM 38 Zarate, Abdiel. ANAM study shows less deforestation in Panama: The ANAM manager attributes the success to a greater societal participation. January 30, La Estrella. 39 Panama Reforestation Incentive Law: Legislative Assembly Law 24 (November 23, 1992). Article 1, Section 1 of Law 24 defines reforestation as: The action of planting FOREST SPECIES on land lacking trees, whether for purposes of commercial, scenic, environmental, tourism, agricultural, forestry, creation of forested pastureland, energetic pursuits, or for any other purposes. 13

14 Figure 3: Land-cover maps for 1992 and 2000 for the Republic of Panama show the changes in forest cover over an 8-year period. Overall, these maps indicate a loss of mature forests, an increase of rastrojo (secondary forest < 5 years), and the reduction of agricultural sites, which include row crops, pasture, subsistence agriculture, and tree plantations. 40 While tree plantations were virtually absent in 1992, encouraged by tax incentives, they composed 11% of the reduction in agricultural land cover in It should be noted that the accuracy of utilizing satellite images to differentiate between forest cover types may be questionable. (Photo Credit: Wright, S. J., and M. J. Samaniego (2008), derived from LandSat image analyses conducted by the Autoridad Nacional de Ambiente (ANAM)) According to the Center for Tropical Forest Science (CTFS), in Panama, teak grows fairly well in the drier half of the isthmus, is fast-growing, and produces a high quality wood that is very resistant to rot. 42 However, while there is generally a consistent market for this tree, it has proven to produce low-quality timber in much of Panama, as it is most 40 Wright, S. J., and M. J. Samaniego (2008). Historical, demographic, and economic correlates of land-use change in the Republic of Panama. Ecology and Society 13(2): 17. (Labeled as Figure 2 in source) 41 Ibid. 42 Center for Tropical Forest Science (CTFS). Trees, Shrubs, and Palms of Panama: Tectona grandis L. f. 14

15 often planted in poor soils, such as on degraded pastures. 43 Additionally, teak is a deciduous tree, and loses all of its leaves for much of the dry season. 44 When these allelopathic 45 leaves fall off, the tannins they release into the soil prevent any other plants from growing there, further degrading the soil and depriving it of nutrients (see Figure 4). In a 2002 study done by Sean Healey and Robert Gara in southwestern Costa Rica comparing the growth of native species between an abandoned pasture and a monoculture of teak, the abandoned pasture did markedly better in growing more native forest habitat. 46 While a teak plantation may work well in one country, or on one site, it does imply that it is appropriate to grow it everywhere. In fact, in terms of actually promoting reforestation, teak has been highly unsuccessful in Panama because often perfectly good parcels of diverse, forested land are cut down to plant a monoculture of teak. This drastically reduces the biodiversity of the forest, making it susceptible to blights, and causes forest fragmentation. Fragmentation can create islands of remaining forest patches, and when these become too small, often ecosystems or species within those ecosystems, can no longer sustain themselves. Increasingly, stimulated by Law 24, large teak plantations are also being established over pastureland, 47 which is often land that has 43 Emilio Mariscal. Personal interview on February 17, (See Appendix) 44 Center for Tropical Forest Science (CTFS). Trees, Shrubs, and Palms of Panama: Tectona grandis L. f. 45 al le lop a thy n: the release into the environment by one plant of a substance that inhibits the germination or growth of other potential competitor plants of the same or another species (Encarta World English Dictionary). 46 Healey, Sean P., Gara, Robert I (2003). The effect of teak plantation on the establishment of native species in an abandoned pasture in Costa Rica. Forest Ecology and Management 176: Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3),

16 already been degraded. In fact, in the Greater Bayano Region, all of the plantation lands surveyed in 2000 were in pasture in Thus, instead of promoting the growth of a diversity of plants and tree species, a teak plantation generates only low-quality teak trees, which are then cut down. Soil fertility is lost, and reforestation efforts become a setback to regenerating productive forests. With approximately 77 percent of Panama s reforestation area in teak, 49 and with about 1.2 million hectares of land still available for plantation development, 50 it is absolutely necessary to reconsider alternatives to this trend. Figure 4: A teak plantation in Centro Madroño, Panama. An exotic species from Asia, monocultures of Tectona grandis prevent the growth of native plant species in that location, while causing erosion and a loss of soil fertility. Despite the ecological degradation caused by teak, it has been used in the vast majority of reforestation efforts throughout Panama. (Photo Credit: Author). 48 Ibid. 49 Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3), International Tropical Timber Organization (ITTO). Status of Tropical Forest Management p

17 With the loss of productive forest comes a subsequent loss in ecosystem services normally provided by healthy forests, such as the protection of water resources (see Figure 5) or a buffer against strong winds, erosion, and contamination from agricultural and industrial sources. In the 518,000-hectare watershed of the Panama Canal, approximately 326,000 hectares are managed for protection of soil and water cover. 51 Management there is critical for protecting the Canal from siltation and for ensuring the needed water supply for the locks. 52 Most other areas around the country have not been successful at forest management, resulting in degradation and habitat loss. Figure 5: The River Mamoni in Centro Madroño is a vital water resource. Erosion from degraded pastureland threatens the health of the river and the ecosystems throughout the entire watershed, while jeopardizing the quality of the areas drinking water. (Photo credit: Author) 51 Ibid, p Ibid. 17

18 Although the total area of production forests in Panama with management plans is approximately 63,000 hectares, few if any of the existing concessions are thought to manage their forests sustainably. 53 According to the ITTO s 2005 Status of Tropical Forest Management, ANAM has insufficient human and financial resources to carry out the field-level monitoring and control of forestry operations necessary to ensure adherence to forest-related laws and regulations. 54 As a result, illegal logging is widespread in the moist forest area, even in protected areas, creating a huge barrier to long-term sustainable forest management (SFM). 55 Socio-economic Implications: While the ITTO lists the contribution of the forest sector to GDP to be quite low (less than 1% in 2002), it is a critically important economic factor on the local level, specifically for indigenous communities. 56 According to ITTO, the forest sector employs over 6,500 people, many of whom are the rural poor. 57 Tax incentives to reforest land with teak plantations are a critical driver for landholders to cut down primary or secondary forests on their land to plant teak. Not only does this perpetuate a loss of connection to and a sense of ownership over the land such an integral part of the many cultures in Panama but it also serves to direct what could have been products for a local economy into hands of international timber companies or corporations. Around Panama, the reforestation of plantation trees, such as teak, is creating a growing disparity between local incomes and inflated land values, causing local people to 53 Ibid. 54 Ibid. 55 Ibid. 56 International Tropical Timber Organization (ITTO). Status of Tropical Forest Management p Ibid. 18

19 sell their land off to large-scale landholders instead of retain it. 58 As large plantations owned by timber companies and corporations expand and land values go up, small landholders find that they cannot glean comparable prices on their land by ranching, and find it difficult to create their own plantations due to factors such as the lack of land titles and credits, short discount rates, an inability to take advantage of commercial and tax incentives of Law 24, a lack of management skills, and a lack of land. 59 As a result, many small landowners decide to capitalize on the growing value of their land and sell it to a large plantation operation looking to expand, contributing to more land consolidation and the displacement of rural people. 60 IV. What is being done to alter these trends & what can still be done? Scientific Research on Native Species: Throughout Panama (and presumably throughout all of Mesoamerica), there exists an ideology that native tree species do not grow well in Panama. Understanding the overwhelming influence of the timber industry and the lack of published data on native Panamanian trees, it is easy to see where this belief might have stemmed from. However, from an ecological standpoint, it is illogical. Native trees are better adapted to local environmental conditions, their seeds are locally available, and there tends to be local knowledge and familiarity with them and their potential uses. 61 Additionally, using native tree species in plantations often produces high value wood, often comparable or superior 58 Sloan, Sean. Reforestation amidst deforestation: Simultaneity and succession. (2008) Global Environmental Change. 18 (3), Ibid. 60 Ibid. 61 Montagnini, Florencia and Jordan, Carl F. (2005). Tropical Forest Ecology: the basis for conservation and management. pp

20 to exotic species on the same site, which is becoming scarcer in commercial forests. 62 One such native tree is Terminalia amazonia, which has a growth rate and value similar to that of teak. 63 However, the advantages of exotic species for reforestation often outweigh the ecological benefits of using native species. Such advantages include more silviculture information, easier access to seeds with a known genetic makeup and certified origin, well-established markets, and initial resistance to local pests. 64 In order shift the focus of reforestation from unviable, exotic tree species, ecologists and restorationists must provide credible and compelling data in support of native alternatives. In light of this necessity for further scientific information, the Native Species Reforestation Project (PRORENA), a joint research and education project of the Center for Tropical Forest Science and the Tropical Resources Institute at the Yale School of Forestry and Environmental Studies, was started in (see Figure 6). Based at the Smithsonian Tropical Research Institute facility in Panama City, PRORENA s mission is the development of viable strategies for the restoration of diverse, native forests in degraded tropical landscapes. 66 PRONENA runs 3 field offices, 4 principal field research sites, and 3 native tree nurseries, monitors more than 60,000 trees and conducts on-farm trials with over 35 private landholders. 67 Additionally, they work in participation with nearly two-dozen Latin and North American universities, government agencies, private companies, NGOs, and private individuals. 68 The founding of this partnership, perhaps PRORENA s most significant accomplishment, has created a 62 Ibid. 63 Ibid. 64 Ibid. 65 Smithsonian Tropical Research Institute: Center for Tropical Forest Science. PRORENA. 66 PRORENA (The Native Species Reforestation Project). 67 Smithsonian Tropical Research Institute: Center for Tropical Forest Science. PRORENA. 68 Ibid. 20

21 network of actors who previously worked in isolation from one another, who can now easily share and disseminate information. 69 Figure 6: PRORENA (the Native Species Reforestation Project), works in collaboration with the Smithsonian Institute and over two dozen partner organizations to conduct studies on native species reforestation in various geographical conditions around Panama, using over 75 of the most promising but poorly understood native Panamanian trees. (Photo credit: Author). Data from PRORENA s studies cover over 75 native tree species in 38 geographically distinct populations around Panama. Their network of Core Research Sites spans a precipitation gradient of 1,000-2,700 mm per year 1, as well as various soil conditions. 70 With this data, PRORENA hopes to be able to demonstrate the species that have the best survival and growth rates in each region, as well as providing biological information, such as survivorship, morphology, and potential for restoration, for each of the 75 species. 71 Not only will this help to fill the knowledge gap for native Panamanian trees, but because demonstration sites are purposefully located along well-trafficked sites, 69 Montagnini, Florencia and Jordan, Carl F. (2005). Tropical Forest Ecology: the basis for conservation and management. pp Ibid. 71 Ibid. 21

22 it will also help to generate more community participation and awareness about the positive effects and viability of native trees 72 (see Figure 7). Figure 7: Brandeis University students at the PRORENA study site in Los Santos. This mixed stand of native trees has served as a demonstration site for the growth of native Panamanian tree species over a 5- year period, and can be used to persuade landholders of the economic viability of native tree species. (Photo credit: Author). Findings & Recommendations A 2006 paper written by PRORENA researchers and published in Forest Ecology and Management (2007), analyzed 22 native and 2 exotic tree species at 3 sites (Soberania, Los Santos, and Rio Hato) across a precipitation gradient ( mm year 1) in Panama. 73 Although the data is based on just the first 2 years of growth, the results from these sites enabled the researchers to make recommendations for promising species for use in forest reforestation, timber production, and on-farm systems. With this 72 Ibid. 73 Ibid. 22

23 knowledge, landholders will be able to base their species selection upon local site conditions and their own specific reforestation objectives. One encouraging finding for potential timber production, was that after only 2 years of growth, several native tree species developed wood volume indexes (VI) that were as large, or larger than the two most commonly planted exotic timber species, teak and acacia (Acacia mangium). 74 While these exotic species tend to have fast initial growth rates that slow over time, the comparative growth rates of several native species over a short period of time, suggests they might be fast-growing timber species. 75 The native tree Pachira quinta, valued for its high quality timber and is the only native species planted in large numbers in plantations in Panama (4.6% of plantations established between 1992 and 2004), did consistently well and attained an average VI significantly greater than that of teak. 76 Other native species known for high timber quality Tabebuia rosea, Albizia guachapele and Samanea saman all ranked highly. 77 The report suggests that native species that grow well on dry sites may perform better than species traditionally planted for timber production, namely teak. 78 Carbon sequestration Another measure that can be taken to promote the use of native species in forest restoration is more research into how native tree species can be incorporated into 74 M.H. Wishnie, D.H. Dent, E. Marisca, J. Deago, N. Cedeño, D. Ibarra, R. Condit and P.M.S. Ashton (2007). Initial performance and reforestation potential of 24 tropical tree species planted across a precipitation gradient in the Republic of Panama. Forest Ecology and Management. 241 (1) Ibid. 76 Ibid. 77 Ibid. 78 Ibid. 23

24 international carbon sequestration markets. 79 Between 20 and 25 percent of all carbon dioxide (CO2) emissions come directly from tropical deforestation, which is greater than the emissions from the entire global transportation sector. 80 In light of impending threats from global climate change due predominantly to the trapping of CO2 and other anthropogenic greenhouse gases in the atmosphere, restoring healthy forest ecosystems is of critical importance. As trees naturally sequester carbon 81, they are useful not only for mitigation helping to stave off the worst effects of climate change but also for adaptation. Restoring natural habitats will help to strengthen populations of native species and give them a greater chance of survival in an uncertain future. Emilio Mariscal suggests that the Panamanian government might also take advantage of the United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD). Panama is one of nine pilot countries in Africa, Asia, and Latin America recently selected to be part of this new program, which will provide developing countries with international support and guidance to build capacity and reduce global emissions from deforestation and forest degradation. 82 The first Policy Board meeting was held in March 2009 in Panama, and an in-depth report on the potential role of REDD in Panama was presented Mariscal, Emilio. Personal communication. April 21, (See Appendix). 80 Data from recent studies in Panama and Malaysia by the Center for Tropical Forest Science (CTFS) suggest that global warming is reducing the ability of tropical forests to store carbon. (see Tangley, Laura (Dec/Jan 2009). Saving the Forest for the Trees. National Wildlife Federation.) 81 Tangley, Laura (Dec/Jan 2009). Saving the Forest for the Trees. National Wildlife Federation. 82 United Nations Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (UN-REDD Programme). Country Actions. 83 REDD Strategies Presented at the UN-REDD Programme 1st Policy Board meeting in Panama 9-10 March Accessed April 22, Panama%20Presentation.pdf 24

25 Local NGO Approach Earth Train: Earth Train is an environmental non-profit started in nearly 2 decades ago as a youth leadership-based organization focused on training young, talented leaders from around the world to call their peers to action around global environmental issues. In 2001, Earth Train established its permanent international base in Centro Madroño, Panama, adjacent to the semi-autonomous Kuna Yala Territory. For the past few years, they have been focusing predominantly on buying up as much land as possible in the Mamoni Valley Preserve. They have bought up 10,000 non-contiguous acres, and are now focusing on restoring native tropical trees to the degraded lands (see Figure 8). Figure 8: Earth Train has partnered with the Center for Biodiversity Research and Information of the California Academy of Sciences to develop a digital mapping and technical skills program. 84 Their focus has been on research for ecological restoration and for monitoring biological change over time. 85 (Photo credit: Author). Throughout Earth Train s time in the area, they have worked alongside members 84 Gray, Nathan. Earth Train Briefing: 15 December Ibid. 25

26 of the Kuna and Emberá tribes. In fact, Earth Train has forged a formal agreement with the Kuna General and the Cultural Congress to work together to protect the Kuna territory, as well as to develop educational opportunities for Kuna youth and youthdirected ecotourism projects, such as the Pacific-to-Atlantic kayak river journeys from Centro Madroño to the Kuna coast. 86 Additionally, they have also worked to forge partnerships with international organizations, such as Rainforest Capital, LLC., and the Danilo Perez Foundation, which has enabled them to combine international business experience and working capital with on the ground knowledge of community development and grassroots organization. 87 Preliminary discussions with the soon-to-becompleted Panama Museum of Biodiversity have begun, with the intention of collaborating on a variety of projects in the Mamoní Valley Preserve. 88 In addition to working with indigenous tribe members and international actors with a vested interest in the protection of the rainforest, Earth Train has worked to foster relationships with local landholders. They have talked to all of the landholders in the area, and while there are good relations overall, results have varied as there are many different stakeholders with varying interests. 89 Earth Train also conducts research on native tree species research and cultivates native tree seedlings in their nursery (see Figure 9). Emilio Mariscal suggests that Earth Train s reforestation initiatives could be duplicated around the country with a high level of success. 90 Spreading research efforts around to different site locations would enable more information to be gathered for new management techniques and reforestation and 86 Gray, Nathan. Earth Train Briefing: 15 December Ibid. 88 Ibid. 89 Nathan Gray, co-director of Earth Train. Personal communication on 3/12/ Mariscal, Emilio. Personal communication. April 21, (See Appendix). 26

27 restoration models. Further data on agroforestry would also be beneficial, as this often a more sustainable and preferred method (see Agroforesty Section, below). Figure 8: Emilio Mariscal in Earth Train s tree nursery in Centro Madroño, Panama. These seedlings can be sold to land owners trying to incorporate native trees into their plantations, or can be used for forest restoration purposes. (Photo credit: Author). The Azuero Earth Project: Another organization doing reforestation and restoration work is the Azuero Earth Project, located in the southern part of Panama, on the Azuero Peninsula. Their mission is to protect and restore the tropical dry rainforest, which is the most threatened ecosystem in the world, while simultaneously promoting healthy communities. 91 Their work includes preserving remaining forest fragments and connecting them with a mosaic of new forests and farms dedicated to sustainable agriculture, in order to create a biological 91 The Azuero Earth Project. 27

28 corridor. 92 The Azuero Earth Project is working to provide information and resources, such as Sustainable Guides, to everyone who is interested in planting native trees, which can be found on the organization s new website. 93 Native species plots owned by members are used as demonstration sites to show the dramatic difference between teak plantations and native plantings. According to Edwina von Gal, the president of the Project, they also follow up with farmers who are new to native plantings, as these individuals often need technical assistance and much encouragement and support for a few years in order to ensure success. 94 Like Earth Train, the Azuero Earth Project has many partnerships with local and international landowners, researchers, experts, and organizations, and conducts research on native tree species. Agroforestry According to the World Agroforestry Center, agroforestry is the integration of trees into agriculturally productive landscapes, focusing on trees grown on farms and in rural areas. 95 These include trees that fertilize the land for land regeneration, timber and fuelwood trees that provide shelter and energy, and those with medicinal properties that combat disease. 96 Added benefits of agroforestry are increased shade for crops, water retention, erosion prevention, food security and improved nutrition, reduced pressure to deforest by providing on-site fuelwood, and increased diversity of tree crops to hedge against threats from disease and climate change. 97 Data collected by the World Agroforestry Center also suggests that 92 Ibid. 93 von Gal, Edwina. Personal communication. May 3, 2009 (See Appendix). 94 Ibid. 95 World Agroforestry Centre. Introduction to Agroforestry. 96 Ibid. 97 Ibid. 28

29 intercropping certain tree species can produce a more beneficial and ecologically sound outcome than growing one species in a monoculture by itself. For example, using mahogany (Swietenia macrophylla), a native tree species facing commercial extinction, as an undercrop for teak can facilitate heavy thinning of teak without causing to soil to dry up and become eroded. 98 Such measures could be both economically and ecologically advantageous throughout Panama. Community Engagement & Education While changing policies would be the most efficient and far-reaching method to promote the use of native tree species in national reforestation efforts, it appears likely that a business party will succeed the presidency, and continue to support the current environmental and indigenous policies. 99 Even local politics are difficult to influence, and most often it is those being most affected by the results of government policies that have the least role in the decision-making process. In light of such forces, perhaps what is needed most is to foster the education and the empowerment of local people over their land and livelihoods. Too often, foreign projects, despite good intentions, end up having unforeseen consequences. One example is the $61 million given by USAID to increase the use of herbicides and pesticides, which ended up causing widespread environmental damage, as well as impairing the health and livelihoods of local people and locking them into system where they must purchase ever greater quantities of chemical fertilizers and hybrid seeds. 100 Another example is the widespread promotion of specific agricultural crops, like culantro, which was so successful that the supply of the vegetable skyrocketed 98 World Agroforestry Centre. A tree species reference and selection guide. 99 Gray, Nathan. Class lecture. March 12, (See Appendix). 100 Ibid. 29

30 and outweighed the demand, causing widespread economic hardship for farmers. Co-Director of Earth Train, Nathan Gray, suggests that those working to restore the forests in Panama focus on presenting a solid and rigorous analysis of the facts on the ground a picture of what s real. 101 Instead of creating a recipe for action, local groups (as well as international agencies) can become empowered by being invited into the conversation and feeling like they have a stake in what is going on. 102 Conclusion: While the use of teak throughout Panama and much of Central America has caused untold ecological damage and been a set back for true reforestation, an understanding of the underlying factors and what is currently being done to address the issue invites a discussion as to future courses of action. While changing government policies is a necessary step to reducing the usage of non-native species in reforestation, the current research and efforts of local actors are providing an alternative discourse that has already begun to change the minds of landholders and have begun the slow reversal of the usage of teak in reforestation efforts. Research into native tree species must continue, as well the participation of Panama in alternative reforestation programs, such as the UN-REDD, and the engagement of various stakeholders in the discussion through local community-based initiatives like those begun by Earth Train and the Azuero Earth Project. 101 Ibid. 102 Ibid. 30