Priorities for international cooperation with the countries of central and eastern Europe and central Asia in the transition of their forest sectors

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1 Yhteistyö Keski- ja Itä-Euroopan sekä Keski- Aasian maiden kanssa Keski- ja Itä-Euroopan metsätietopalvelu Dr. Ján Ilavský 1 External researcher The Finnish Forest Research Institute Priorities for international cooperation with the countries of central and eastern Europe and central Asia in the transition of their forest sectors The transition from planned economies to market-oriented ones is a long-lasting process. It is influenced by different levels of initial economic developments, actual political situations, cultural backgrounds, national habits, different natural conditions, amounts of forests, forestry traditions and other factors (Ilavský, J., 2006). Therefore, countries are all in different stages of transition. To keep the changes heading in the right direction and accelerate them, recent activities have to be adjusted to the actual conditions of the respective countries. International cooperation is an important tool to help counties in transition find optimal solutions and avoid the mistakes made by other countries. It has been agreed that there is no best solution to fit all conditions. Specific conditions in different countries have to be addressed by adequate measures. Therefore, it is important to identify the main problems and priorities facing each country. The aim of this article is to contribute to the better understanding of the challenges facing the countries in transition. Introduction International cooperation has played an important role in the political and economic transition of the forest sector from a centrally planned economy to a market economy across central and eastern Europe as well as in the former Soviet Union countries of central Asia. Each country is currently in different stages of the transition process, facing different problems and priorities for the continuation of changes to their forest sector. Therefore, the clear identification of the problems and definition of priorities for international cooperation are important for well-focused actions and ways of cooperation to support the transition process. The FAO European Forestry Commission and the UNECE Timber Committee has undertaken an important coordinating role to encourage the transition process. The joint UNECE/FAO team of specialists to monitor and develop assistance in the forest and forest products sector has played a crucial role in fostering cooperation with those countries in western Europe with traditions in market economy as well as among the countries in transition (Ilavský, J., 2006). The team of specialists has been active since its establishment in 1993, with the mandate updated every four to six years. The name and mandate of the team were last updated in Its current name is the UNECE/FAO team of specialists on forest policy in eastern Europe and central Asia. 1 Dr. Ilavský retired from the senior researcher position of the Finnish Forest Research Institute in June

2 The objectives of the team are to enhance the effectiveness of international activities intended to support and contribute to the sustainable development of the forest sector in eastern Europe and central Asia, notably by: Strengthening forest management and marketing; Strengthening policies and institutions; Improving forest information management and communication; Identifying emerging issues and facilitating dialogue and discussion on important policy and cross-sectoral aspects; Better integrating eastern European and central Asian countries into international networks and forums for discussing forest sector issues in those regions; Advising the UNECE/FAO secretariat about the dissemination of its products in eastern Europe and central Asia and the implementation of its work on forest policy; and Monitoring the implementation of the strategy for UNECE/FAO activities in eastern Europe and central Asia, and UNECE/FAO activities on sustainable forest management. The team will identify priority issues in countries in the region and promote a transparent regional discussion of priorities and best practice in reforming policies and institutions in the sector. In this context, the team will focus on the policy and institutional dimension of the work by: Guiding the development of a publication on forest policies and institutions in eastern Europe; Improving the exchange of information and experiences on forest sector policies and institutions between member countries; Raising awareness of existing forest policy information and networks; Promoting the better integration of countries into international policy networks; Improving public awareness on forest sector issues and issues of a cross-sectoral dimension in eastern Europe and central Asia; and Maintaining the ToS website. Those countries participating in the work of the team identified their priorities and main issues with the transition process in their country ahead of a meeting in March This article summarises those priorities according to the groups of countries with similar natural, geographical, economic, political and other conditions. Grouping the countries Because different countries are in different stages of the transition process, they have different natural, economic and other conditions. Accordingly, they also have different priorities for proceeding with the transition of their forest sector. Countries have been grouped by the author of the article as follows: New EU member countries; Balkan countries; Commonwealth of Independent States in Europe; and Central Asia; 2

3 1. Map for CIT Common features of the transition process of forest management in eastern Europe and central Asia According to the "strategy for FAO and UNECE forestry activities in eastern Europe and central Asia", the following issues have been identified as common to the transition process of the forest sector across the regions of interest. 3

4 Common features in eastern Europe and central Asia The reorganisation of state assets in the forest sector including: The privatisation and restitution of forest land to private forest owners; The sale of forest enterprises to national and international investors; and The restructuring of remaining state assets (e.g. decentralisation of forest management, outsourcing of state forest management to commercial entities). The development of a private forest sector including: Increased private sector investment; The development of private forest management institutions (e.g. associations of forest owners); and The development of forest management and marketing skills in the private sector. The increasing need for social and environmental services from forest management and the appearance of specialised policies and institutions. Changes in policy and legislation to reflect greater private sector involvement in the forest sector and the changing role of the state from controling all forestry activities to designing and implementing a forestry policy. Changes in forest management to reflect a greater interest in economic objectives (i.e. profitability) among private forest owners and state forest enterprises. Changes in the market framework towards determining prices by local and international markets and basing output decisions on the dynamics of supply and demand. The transition to market economies has also generally led to the increased integration of these economies into the global economy (i.e. increased foreign trade and investment) and a greater public awareness and influence on activities in the sector. Eastern Europe and central Asia are defined in the strategy to include Albania, Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kazakhstan, Kyrgyzstan, Republic of Azerbaijan, Republic of Moldova, Romania, Russian Federation, Serbia, Montenegro, Tajikistan, the Former Yugoslav Republic of Macedonia, Turkmenistan, Ukraine and Uzbekistan. Priorities for the completion of the transition process in new EU member countries These countries have proved the presence of a market economy during their accession into the EU. Therefore, by definition, these countries are no longer countries with economies in transition. However, they have valuable experiences to share with the other countries in this region and, therefore, are mentioned here. They also share some specific issues that are different from the other EU member countries. Recent priorities have been identified from the country reports of Bulgaria, Czech Republic, Slovak Republic and Slovenia. Priorities for new EU member countries The enhancement of cross-sectoral responsibility for forests; Nature conservation and the implementation of NATURA 2000; Agreeing the terms and conditions for implementing a system of financial contributions to forestry from EU funds; The application of the new regulation LIFE+ for monitoring forests; The involvement of civil society in forest-related issues; The promotion of a higher consumption of wood and wood products; Defining multifunctional forest planning and the role of state and forest owners in forest planning; Capacity building in the private forest sector; and Building management models of state forests. 4

5 Priorities for Balkan countries Priorities have been identified based on the country reports of Bosnia and Herzegovina, Croatia, Serbia and the Former Yugoslav Republic of Macedonia. Priorities for Balkan countries The improvement of forest sector governance and decentralisation; The application of long-term programmes for forest sector development; Institutional and personal capacities for forest inventory and planning; Forest certification and national certification schemes; Strengthening the private forest sector; The transformation of public forest enterprises; The creation of and support to small and medium-sized enterprises; The increased participation and interest of stakeholders in forestry; An increase in the land area covered by forests; The management of abandoned agricultural land; and Strengthening the capacities of research, educational and training institutions. Priorities for the Commonwealth of Independent States in Europe Priorities have been identified based on the country reports of Belarus and Ukraine. Priorities for the Commonwealth of Independent States The improvement of the legislative framework of the forest and related sectors and its harmonisation with internationally adopted principles of sustainable forest management; The creation of an adequate institutional infrastructure for forest sector governance and decentralisation; The separation of supervisory and managerial roles in public institutions; The creation of economic conditions for sustainable forest management and an increased income from forestry; The improvement of timber marketing and trade; The implementation of forest certification; and Strengthening the capacities of research, educational and training institutions. Priorities for central Asia Priorities have been identified based on the country reports of Armenia, Azerbaijan, Georgia, Kyrgyzstan, Turkey, Turkmenistan and Uzbekistan. They have been summarised by the forestry officer of the FAO Subregional Office in Ankara, Mr. Muzaffer Dogru, as follows (Dogru, M., 2009). 5

6 Priorities for central Asia Establishing a forest inventory and monitoring and assessment capacities; Combating desertification/natural disasters; Preventing anthropogenic damage; Combating forest fires; Watershed rehabilitation and management; Strengthening forest management planning; Strengthening the management of protected areas; Strengthening the utilisation of non-wood forest products; Involving local people and other stakeholders in forestry; and Communication and political commitment. Literature Dogru, M., Strengthening International Assistance and Regional Cooperation for Development of Forest Policies in the Central Asian Countries. Inaugural meeting of the UNECE/FAO Team of Specialists on Forest Policy in Eastern Europe and Central Asia, Budapest, Hungary. Ilavský, J., Years of Economies in Transition: Lessons Learned And Challenges Ahead for the Forestry Sector. A contribution to the work of the UNECE Tiber Committee and the FAO European Forestry Commission. Working Papers of the Finnish Forest Research Institute 24, 74 pp. Strategy for FAO and UNECE Forestry Activities in Eastern Europe and Central Asia. Country reports: Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Georgia, Kyrgyzstan, Serbia, Slovakia, Slovenia, the Former Yugoslav Republic of Macedonia, Turkey, Turkmenistan, Ukraine and Uzbekistan. 6