Development of Forest Policy and Its Instruments during the Transition Period in Latvia

Size: px
Start display at page:

Download "Development of Forest Policy and Its Instruments during the Transition Period in Latvia"

Transcription

1 International conference Supporting the Forest Sector Reform in Russia and in the Southeast European Countries by Assessing the Experience from the New EU Member States Pushkino, March 2007 Development of Forest Policy and Its Instruments during the Transition Period in Latvia Jānis Birgelis, Director, Department of Forest Policy and Strategy, Ministry of Agriculture, Republic of Latvia Metsäntutkimuslaitos Skogsforskningsinstitutet Finnish Forest Research Institute

2 Supporting the Forest Sector Reform in Russia and in the Southeast European Countries by Assessing the Experience from the New EU Member States Development of Forest Policy and its Instruments During the Transition Period in Latvia Department of Forest Policy Ministry of Agriculture 21 March, 2007

3 CONTENT ¾ brief introduction forest resources forest Sector ¾ transition period land reform, privatization ¾ milestones of forest sector development Forest Policy institutional reform National forest and related sectors programme

4 LAND USE IN LATVIA 38,5 <33 44,4 >50 4,4 1,9 1,4 Farmland Inland water 3,3 4,2 1,9 Forests Built-up-areas Scrubland Roads Bogs Other

5 FORESTS IN LATVIA Scots pine Norway spruce Birch Other 7% Forest cover >50% 24% 48% 21%

6 OWNERSHIP STRUCTURE ha ,000 forest owners 8.5 hа - awerage holding State Private Collective farms Other Источник: Министерство земледел

7 FOREST PRODUCTION EXPORT Mln EUR Roundwood Furniture Sawnwood Boards Древесное топливо Carton,paper Playwood Other Источник: Министерство земледел

8 IMPORT-EXPORT BALANCE Forest sector Light industry Metals and related products Engineering industry Chemical industry Other Agriculture and food industry. Minerals Building materials

9 TRANSITION PERIOD ¾ understanding market economy ¾ land reform ¾ privatization of state owned forest industry companies ¾ favourable conditions for export of forest production ¾ development of private forestry ¾ inefficient management of state forests ¾ fixed prices ¾ export custom tax ( ) ¾ stakeholders formation

10 INSTITUTIONAL REFORM-1 Ministry of Forest Ø State Forest Service Ø State Forest Service Forest Management removed from Forest Production Association Latvijas Mežs and placed into newly established Ministry of Forest with 35 Regional Forests Ministry of Forest is eliminated. State Forest Service (SFS) is created under Ministry of Agriculture Þ SFS is directeded by Chief State Forester Forest Department, Ministry of Agriculture Formulation of forest policy and legislation transferred to the Department of Forest

11 PROCESS OF DEVELOPMENT FOREST SECTOR STAKEHOLDERS 1996 STATE FOREST GOVERGANCE OPTIMIZATION FOREST POLICY NATIONAL FOREST AND RELATED SECTORS PROGRAMME FOREST LEGISLATION /

12 FOREST POLICY FORMULATION Why? ¾ to agree on general development principles of the Latvian forest sector ¾ to create a favourable environment for economic development ¾ to preserve the ecological values of Latvia's forests ¾ to ensure the social functions of forests ¾ to start defining a strategy for achieving these goals ¾ to optimizing legislation.

13 FOREST MANAGEMENT CYCLE In Latvia years

14 VALUE ADDING PROCESS Forestry productin 0.3 bln EUR Value of forest sector production ~ 1.7 bln EUR CONSUMER

15 FOREST POLICY The regulatory function includes formulating forest policy and preparing the necessary legislation for its implementation, while providing information to and making possible the participation of all stakeholders.

16 FOREST POLICY The supervision function includes the creation of an institutional system that ensures implementation and enforcement of legislation in all forests, regardless of ownership type

17 FOREST POLICY The ownership function means state forest management that ensures fulfillment of the socially accepted ecological and social functions characteristic of state forests, the preservation and increase of state forest value and income to the forest owner - the state.

18 FOREST POLICY The support function includes activities carried out by state institutions and/or with state funding to create conditions for long-term forest function stabilization and to promote private entrepreneurship

19 INSTITUTIONAL REFORM REGULATORY formulating forest policy and drafting the necessary legislation for its implementation Department of Forest SUPERVISION To ensure implementa tion and enforcement of legislation in all forests, regardless of ownership type State Forest State Forest Service Service LVM Ltd OWNERS' Management tomaintain and increase of state forest value and income to the forest owner - the state Ministry; Forest Section SFHI SII FDF SUPPORT To create conditions for long-term forest function stabilization and to promote private entrepreneurship SHE Private Entrepreneurship

20 STATE FOREST AUTHORITY Forest Advisory Board Ministry of Agriculture Forest Section State Forest Service 12 Reginal Forests SJSC "Latvijas valsts meži" Forest Research Station Supervision 8 regional centres Share holder Advisory

21 FURTHER DEVELOPMENT ¾ formulation of National forest and related sectors programme (process started just after institutional reform) ¾ understanding complexity of the issues ¾ first stage completed ¾ long term development goals formulated and approved by Government (in 2006)

22 CROS-SECTORAL COORDINATION Demands of society Non-market products and services and other considerations Market products and services Policy framework Internal (forest) policies External (other) policies Market framework Supply and demand relationships Forest sector Forest owners and managers Forest based industry External factors Socio-economic Environmental

23 SECTORAL VERSUS INTERSECTORAL COORDINATION Chemical Consultation Industry Service Energy State Authority Information Technologies Tourism, Recreation Packaging Forestry Education FOREST AND FOREST PRODUCTS Woodprocessing Science Building Architecture, Design Transport Logistics,

24 LONG TERM DEVELOPMENT OBJECTIVES ¾forest and forest land is sustainably managed ¾forest based industries are competitive and meet consumer s needs ¾konwledge and skills of human resources ensure reaching long term objectives

25 THANK YOU! JANIS BIRGELIS Department of Forest Policy Ministry of Agriculture