Environment and Social Impact Assessment (ESIA)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized LAO PEOPLE S DEMOCRATIC REPUBLIC PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY MINISTRY OF AGRICULTURE AND FORESTRY Environment and Social Impact Assessment (ESIA) Scaling-up Participatory Sustainable Forest Management Lao PDR - Forest Investment Program SUPSFM Preparation Team Vientiane, Lao PDR April 2013

2 Table of Contents 1 INTRODUCTION AND BACKGROUND OF THE PROJECT Further Scaling Up of PSFM FOMACOP/SUFORD/SUFORD AF/feasibility study SUPSFM FOMACOP SUFORD SUFORD AF Goals and Objectives of SUPSFM Project Components of SUPSFM The Legal and Institutional Setting Lao Peoples' Democratic Republic Laws and regulations Judicial Bodies the courts Strengthening dissemination of legal information and increasing legal awareness Key national regulations The World Bank Operational Policies and Directives DESCRIPTION OF PROJECT ACTIVITIES Field Activities Village work Systems and Guidelines for Implementing Field Activities ESIA SURVEY METHODOLOGY Literature review (FOMACOP, SUFORD and SUFORD AF) Field survey in new provinces Tools used during stakeholder consultation Sampling strategy Timing and duration or field mission LESSONS LEARNT FROM PAST EXPERIENCES Free, Prior and Informed Consultations (FPIC) Mainstreaming ethnic and gender work approach Village Forestry Committeees and Village Development Committees Benefit sharing from forest harvest revenues Village development grant and Village Fund Application of safeguards measures Gender equity Capacity of project beneficiaries Land acquisition/resettlement i

3 4.5.5 Grievance and conflict resolution mechanisms Participatory Sustainable Forestry Management PSFM Land tenure Monitoring and evaluation DESCRIPTION OF PROJECT BENEFICIARIES/ AFFECTED PEOPLE Coverage of Field Implementation Demographic data Ethnicity profile SUFORD SUFORD AF SUPSFM project beneficiaries in 3 new provinces Ethno linguistic groups Mon-Khmer groups Hmong-Iu-Hmien groups Sino-Tibetan Groups Customary authorities and decision making in ethnolinguistic categories Hmong-Iu-Hmien and Sino-Tibetan groups Tibeto-Burmese groups Lao-Tai groups Mon-Khmer groups Weakening customary structures and social implications Gender Residence Patterns Birthing customs Division of Labor Women and Non-Timber Forest Products (NTFPs) Increased workload of ethnic minority women Power & Decision-Making Structures Socio-economic settings Poverty profile Target district poverty profile Vulnerable groups Economics and livelihood Education Health Human trafficking ii

4 5.8.2 HIV Use of health services Livelihood settings Land issues Livelihood and agricultural production systems Forest Use and Management (shifting cultivation, legal systems traditional versus state, land rights) Exposure to external market Traders Infrastructure and existing markets Contract farming Contract Farming Tourism ENVIRONMENTAL SETTING SUPSFM Components Regional Environmental Setting SUFORD and SUFORD AF Forest Zonation Forest Zonation in New Provinces and PFAs in Northern Laos A summary of forest cover for northern province PFAs Climate Northern Areas SUFORDs positive environmental (management) contributions GOL capacity and institutional arrangements Forest management and planning SUPSFM Environmental Risks No Project Scenario SUPSFM Internal design challenges INSTITUTIONAL ARRANGEMENTS Institutional framework Institutional and Implementation Arrangements Government stakeholders PAFO, DAFO (agriculture, production forest), MONRE (conservation and communal land titing) Department of Agricultural Extensions and Cooperatives (DAEC) Lao NCAW MoIC DoFI National Assembly iii

5 7.3.7 Party and State Inspection Authority Technical Service Centers LFNC/LWU Lao Bar Association Civil Society Organizations Village level committees Village Forestry & livelihood development committees Village mediation units Financial management EXTERNAL AND INTERNAL RISKS Internal risks No project scenario Risks related to livelihood loss Risks related to Community refusal to participation Risks related to weak consultations and participation Land tenure and access to natural resources External risks Village consolidation Relocation Land concessions Migrations and labor Illegal Wildlife Trade Pesticides Incompatible Concession granting Fire Control Illegal Logging Shifting cultivation and access restriction PROJECT MITIGATION MEASURES Checklist, Eligibility criteria and Project Screening Enhanced community engagement and FPIC Raising legal awareness at community level PLUP Participatory Land Use Planning Physical Cultural Resources Expanding livelihoods Adaptable models of forest-based livelihoods Principles of forest-based livelihood options iv

6 9.7 Integrating Environmental Mitigation within a PES Approach PROJECT FEEDBACK and GRIEVANCE MECHANISMS General Principles on grievance redress procedures Project grievance redress procedures Technical Service Centers: Support mechanism for VMU Format for Recording Grievance and Complaints Griveance forms Petitions MONITORING AND EVALUATION Internal monitoring External monitoring Appendices References Forest Cover Inventory Class Summary GOL Legal Regulations, Policies and International Obligations Districts and population covered by SUPSFM Environmental Management Plan Volume Environmental Management Plan Volume 2 SUFORD Technical Guidelines v

7 ACRONYMS ADB CSO CEDAW CEF CESCR CFV CIF CIFORD CSS DAFO DOF DOFI EGDP EGDS EG ESIA EMPA EMP EU FAO FCPF FID FINNIDA FIP FLM FMU FOMMACOP FPIC FSC GIZ GOL GVFC GVFO HBVF HCV IDA IEC IRD JICA LAK LBA LFNC LUPLA LSMP LWU MAF MDB MFAF MOIC MONRE NAFES Asian Development Bank Civil Society Organizations Convention on the Elimination of All Forms of Discrimination against Women Community Engagement Framework International Covenant on Economic, Social and Cultural Rights Case-Free Village Climate Investment Funds Community Initiative for Rural Development Country Safeguard Systems District Agriculture and Forestry Organization Department of Forestry Department of Forest Inspection Ethnic Group Development Plan Ethnic Group Development Strategy Ethnic Group Environment and Social Impact Assessment Exemplary Managed Forests in Asia Environmental Management Plan European Union Food and Agriculture Organization Forest Carbon Partnership Facility Forest Inspection Department Finnish International Development Agency Forest Investment Plan Forest Landscape Management Forest Management Units Forest Management and Conservation Project Free, Prior Informed Consultation Forest Stewardship Council Deutsche Gesellschaft für Internationale Zusammenarbeit Government of Laos Group of Village Forest Committees Group of Village Forest Organisations High Biodiversity Value Forest High Conservation Value International Development Agency Information Education Material Institut de Recherche sur le Développement Japan International Cooperation Agency Lao Kip Lao Bar Association Lao Front for National Construction Land Use Planning and Land Allocation Legal Sector Master Plan Lao Women s Union Ministry of Agriculture and Forestry Multilateral Development Bank Ministry for Foreign Affairs of Finland Ministry of Industry and Commerce Ministry of Environment and Natural Resources National Agriculture and Forestry Extension Services vi

8 NAFRI NBCA NC NPA NPV NTFPs PAD PAFO PCR PDO PES PFA PLUP PSFM PM PRF PSC REDD SUPSFM SCF SIDA SFMA SIA STEPP SUFORD SUFORD-AF SWAT VD VDC VFC VFLC VFO VLG VMU WAD WB WCS National Agriculture and Forestry Research Institute National Biodiversity Conservation Areas National Consultant Non Profit Associations Net Present Value Non Timber Forest Products Project Appraisal Document Province Agriculture and Forestry Office Project Completion Report Project Development Objective Payment for Environment Service Production Forest Areas Participatory Land Use Planning Participatory Sustainable Forest Management Prime Minister Poverty Reduction Fund People Supreme Court Reducing Emissions from Deforestation and forest Degradation Scaling up Participatory Sustainable Forest Management Strategic Climate Fund Swedish international Development Agency Sub Forest Management Areas Social impact Assessment Strategic and Tactical Enforcement Patrol Program Sustainable Forestry and Rural Development Project Sustainable Forestry and Rural Development Project Additional Funding Soil & Water Assessment Tool Village Development Village Development Committee Village Forestry Committee Village Forestry and Livelihood Committee Village Forest Organization Village Livelihoods Grant Village Mediation Unit Women s Advancement Division World Bank World Conservation society vii

9 1 INTRODUCTION AND BACKGROUND OF THE PROJECT Lao PDR is one of the least developed countries in Southeast Asia. The country has considerable natural resources in forests, water resources, and minerals and these are significant for cultural development, environment protection, and economic development. Its forests cover about 40% of the country, the highest percentage in Southeast Asia, but the total area of forest has declined dramatically from 70% of the land area of 26.5 million ha in 1940, to 49% in 1982, and to only 40% or about 9.5 million ha in Data on changes in forest cover suggest that during the 1990s the annual loss of forest cover was around 1.4% annually, giving an average annual loss of forest cover of about 134,000 ha. In addition to the declining forest area, there has been a steady fragmentation of forests and a decline in the average growing stock within the residual forest, which have both reduced carbon values and had a negative impact on biodiversity. Annual emissions from deforestation and forest degradation were estimated at 95.3 million tco2e in 1982, declining to 60.6 million tco2e by For the period from , the average annual emission is estimated at 51.1 million tco2e. The Lao Forest Investment Program (FIP) to which this ESIA and subsequent safeguard frameworks (from ADB and IFC) relate, have been developed to support the national Forest Strategy 2020 (FS2020) and ongoing efforts to protect and restore forest cover and to reduce forest carbon emissions and implement a national REDD+ program. The program themes have been developed to directly address the primary drivers of deforestation and forest degradation. The underlying idea is that grassroots forest managers operating in any and all forest areas will become more active and vigilant in protecting the forests in their areas from the various agents of deforestation and degradation, and will rehabilitate degraded lands using land management systems that will provide them with livelihood benefits, while enhancing carbon stocks. Overview of PSFM Implementation in PFAs. The current implementation of Participatory Sustainable Forest Management (PSFM) in Production Forest Areas (PFAs) has its roots in village forestry, which was piloted in the late 1990s at large scale covering two state production forests (Dong Sithouane in Savannakhet Province and Dong Phousoi in Khammouane Province). The piloting of village forestry was undertaken by the Forest Management and Conservation Project (FOMACOP) with technical assistance provided by the Ministry for Foreign Affairs of Finland (MFAF) and financial support by the International Development Agency (IDA) of the World Bank (WB). The appropriateness of the developed village forestry systems and procedures has been shown by the inclusion of Dong Sithouane and Dong Phousoi in the FAO List of Exemplary Managed Forests in Asia in the early 2000s, as well as by the certification as sustainably managed forests of forest management units (FMUs) in the two forest areas by the Forest Stewardship Council (FSC) in with extension in The piloting of village forestry was followed by the institution of participatory management of production forests for nation-wide application as an official government policy in the early 2000s. Many of the current PSFM concepts, systems, regulations and operating guidelines have been formulated based on the pilot village forestry model. PSFM was first applied in in 8 PFAs, which have a total area of 0.66 million ha and are located in 4 provinces in Southern Laos. This was undertaken by the Sustainable Forestry and Rural Development Project (SUFORD), which like FOMACOP were provided with technical assistance support by MFAF and financial support by IDA. MFAF and IDA continued their support through an additional 1

10 financing phase, SUFORD-AF, expanding the application of PSFM to cover a total of 16 PFAs, which have a total area of 1.28 million ha and are located in 9 provinces in Southern and Central Laos. 1.1 Further Scaling Up of PSFM As the completion of SUFORD drew near, the Lao Government (GOL) proposed the Lao Investment Plan to the Forest Investment Program (FIP) of the Climate Investment Fund (CIF) with the core objective of reducing GHG emissions from forests by reducing deforestation and forest degradation, conserving and enhancing carbon stocks, and sustainable management of forests (five GHG emission-reducing activities that together constitute REDD+). The Lao Investment Plan includes components on managing five categories of forest areas, i.e. PSFM in three categories of state forest areas (production/ conservation/protection), village forestry in village-use forests, and smallholder forestry in land allocated to villagers, and includes a component to strengthen the enabling environment. The proposal was favorably considered by the FIP Steering Committee with funding provided for three projects, namely: (a) Protecting Forests for Ecosystems Services with the Asian Development Bank (ADB) as the designated Multilateral Development Bank (MDB) partner, (b) Smallholder Forestry with the International Finance Corporation (IFC) as the designated MDB partner, and (c) Scaling up PSFM (SUPSFM or the Project) with WB as the designated MDB partner. During the design of the project it was deemed necessary to introduce a landscape approach to facilitate dialogue and coordination among forest managers at the local level, Provincial and District level authorities and to facilitate the inter agency support to improve local communities livelihoods and tenure security. 1.2 FOMACOP/SUFORD/SUFORD AF/feasibility study SUPSFM FOMACOP FOMACOP started in January 1995 and ended in September It had two sub-programs: forest management and biodiversity conservation. The forest management program consisted of "Village Forestry" in 60 villages comprising 20,000 village people and 145,000 ha of land and forests in the Savannakhet and Khammoune provinces. One of the main features of the program was the establishment of Village Forestry Associations (VFAs) in charge of the logging of "village forest management areas" ranging in size from 400 to 600 ha. While the forests remained under state ownership, the villagers in the program areas would keep the revenue from logging after paying royalties and other taxes. On average, each village would have received about US$3000 per year. FOMACOP also supported a Land Use Planning and Land Allocation (LUP LA) activity from 1996 to 2000, which was conducted in two districts (Songkhone and Thapangthong) with a total of 39 villages. Most villages interviewed in Savannakhet knew of the SUFORD by the name of the Production Forest Project or khongkan paaphalid and considered it as an extension of FOMACOP. Since FOMACOP also undertook LUP LA in selected villages and since the SIDA-supported forestry project operated in some of the same areas, several villagers mixed up the FOMACOP and the SIDA forestry project when asked to remember way back in time and assess changes. 2

11 1.2.2 SUFORD SUFORD has been the main pillar of GOL engagement in forestry in Lao PDR and focuses on sustainable management of natural production forests. The SUFORD project was financed until December 2008 through an IDA Credit of US$9.9 million with parallel financing from GOF in the amount of EUR8 million. SUFORD operated in 8 Production Forest Areas (PFAs) in Champasak, Khammouane, Savannakhet, and Salavan. The specific project objectives were to: (a) Improve the policy, legal and incentive framework enabling the expansion of Participatory Sustainable Forest Management (PSFM) throughout the country; (b) Bring the country s priority natural production forests under PSFM; and (c) Improve villagers well-being and livelihoods through benefits from sustainable forestry, community development and development of viable livelihood systems. Field implementation of SUFORD covered about 640,000 ha of natural forests in Khammouane, Savannakhet, Salavan and Champassak provinces, including ha of the previous FOMACOP and SIDA financed project sites. SUFORD project areas included 412 villages with an estimated population of 100,000 villagers, most of whom benefited either directly or indirectly from the project. A special attempt was made to target the poor, and village development support targeted in many cases to account for different levels of poverty. The majority of the project beneficiaries live in remote districts, where the percentage of the population rated as poor was higher than the national average. The project also contributed to in situ biodiversity conservation through the maintenance of natural forest composition and structure, through the identification and protection of high conservation value forests within PFAs, and through creating buffers around and connectivity between National Biodiversity Conservation Areas (NBCAs). Sustainable management of production forest areas has entailed management of all resources: commercial timber; household wood; botanical non-timber forest products (NTFPs); biodiversity; and environmental services provided by the forest landscape. Forest management and control systems sufficient to achieve forest certification by Forest Stewardship Council (FSC) SUFORD AF Considering SUFORD s implementation successes and GOL s continuing commitment, the World Bank and GOF provided further support to the project. Additional Financing (under World Bank Operational Policy 13.20), is an instrument that provides additional IDA resources (on IDA grant terms), and allows for a project extension of up to 3 years beyond the initial closing date. IDA resources during the additional financing phase were again complemented by MFAF grant resources, governed by bilateral agreement between the Governments of Finland and Lao PDR. The Additional Finance (AF) phase of the SUFORD project provided continuing support to existing SUFORD province but was expanded to include five new provinces. The majority of the population in SUFORD and SUFORD AF areas comprised ethnic groups that needed special attention and culturally appropriate communication to make them partners in the project. Additional and extra attention was also needed to involve ethnic group women in the project. SUFORD-AF added Xayaboury, Vientiane, Bolikhamxay, Sekong, and Attapeu Provinces and included 8 new PFAs with a total area of 539,630 ha. About 438,660 ha are intact 3

12 forest, and of this about 352,150 ha are on slopes that were potentially harvestable. The 311 villages of SUFORD-AF were inside or within 5 km from the border of a Production Forest Area (PFA). The project was implemented by the Department of Forestry together with the National Agriculture and Forestry Extension Service (NAFES). A group of national consultants were engaged to facilitate and support project implementation and reporting at the sub-national level. Involved agencies and contractors attached great importance to ensuring that vulnerable groups such as ethnic groups and women shared equally in the benefits derived from the project and ensuring that adverse impacts are either avoided, or if unavoidable, mitigated. SUFORD-AF worked to improve ethnic group communication and engagement through establishing relations with the Lao Front for National Construction (LFNC), Department of Ethnic Affairs, and the Lao Women Union (LWU) and the Division for the Advancement of Women in MAF. The aim of the SUFORD-AF project was to achieve sustainable management of natural production forests, including sustainable logging based on approved management plans. Revenues from log sales were shared with local communities in an effort to reduce rural poverty reduction. The project also supported improved policy, legal and incentive frameworks for PSFM. Sustainable logging was planned based on forest inventories established with villagers participation. It was anticipated that villagers livelihoods would improve through benefits from casual labor, revenue sharing from sustainable production forestry and village development grants. Villagers were expected to take an active part in implementing forest management activities such as land and forest zoning, forest inventories as well as in designing a forest management plan at the sub-forest Management Area (FMA) level. 1.3 Goals and Objectives of SUPSFM The objectives of the SUPSFM project are building and expanding on the progress made under SUFORD and SUFORD AF but are substantially broader in that SUPSFM explicitly includes reductions in forest carbon emissions, increasing forest carbon sequestration through forest restoration and inter agency coordination at the landscape scale. Project Development Objective The project development objective (PDO) is to execute REDD+ activities through sustainable forest management in priority areas and to pilot forest landscape management in four provinces. Key results from the project will include: Forest area brought under management plans Forest area brought under forest landscape management People in forest and adjacent community with monetary/non-monetary benefit from forest Rate of forest cover loss/gain in target areas compared to untreated areas Enhanced carbon storage from improved forest protection and restoration in selected PSFM areas 4

13 Reduced emissions from deforestation and forest degradation in selected PSFM areas. 1.4 Project Components of SUPSFM The SU-PSFM Project will build on lessons learned from SUFORD and take advantage of existing and emerging opportunities for collaboration with development partners. Key lessons from SUFORD, which have been factored into project design, include mechanisms to increase capacity of the Department of Forestry (DOF) and Department of Forest Inspection (DOFI) for effective planning and implementation; improved project management by bringing consistency to deployment of capacitated staff in project areas; creating sustainable institutional mechanisms through a rigorous community engagement framework; improved safeguard mechanisms through capacity building, additional staff, partnerships with CSOs, and monitoring; expanding incentive options through sustainable livelihoods, PES, and REDD+ benefits; and deployment of dedicated staff, integration in project design, capacity building, and monitoring to mainstream equity and gender issues in all project activities. Opportunities for collaboration exist with ongoing and planned investments by development partners in PFAs, conservation, protection and village-use forests, and in forest law enforcement. These include KfW investments in protection and conservation forest areas in Northern Lao, ADB and IFC in Southern Lao, and GIZ-EU on forest law enforcement, in addition to linkages with ongoing WB projects in poverty reduction, biodiversity, food security, and trade. The Project will include four components designed for the attainment of the PDO, as follows: Component 1: Strengthening and expanding PSFM in Production Forest Areas There are 34 PFAs with a total area of 1.91 million ha located in the 9 SUFORD provinces in Central and Southern Lao, but SUFORD provided support to only 16 PFAs with a total area of 1.28 million ha. The Project will continue to support activities in the 16 PFAs covered by SUFORD, but will expand PSFM implementation to cover all 34 PFAs, while adding 7 more PFAs with a total area of 0.39 million ha located in 3 Northern Lao provinces. Thus the Project will support the implementation of PSFM in 41 PFAs with a total area of 2.30 million ha. Table 1 lists the 41 PFAs and provides some relevant information about them. Component 1 will have three sub-components, namely: Sub-component 1A: Capacity Building and Partnerships: The sub-component is aimed at establishing mechanisms to ensure the availability of adequate and effective capacity for project implementation. The Project will take advantage of increased capacity in the natural resources and civil society sectors, as well as utilize from the outside those skills that are not available in the country. The sub-component will include the following main activities: Sub-component 1B: Community Engagement and PSFM Management Planning: Investments in capacity and partnerships will permit the Project to engage effectively with communities and initiate PSFM management planning in PFAs. Approaches to strengthen tenure and expand sustainable livelihood options are embedded within the community engagement process. The sub-component will include the following main activities: Sub-component 1C: Implementing PSFM plans in Production Forest Areas: Capacity building and community engagement will provide the foundation to effective 5

14 implementation of PSFM management plans. This sub-component will focus on PFA management, consolidation and expansion of forest areas under certification, and implementation arrangements for livelihoods. The sub-component will include the following main activities: Component 2: Piloting Forest Landscape Management Forest Landscape Management offers a cross-sectoral and integrated approach to manage development activities, minimize negative environmental impacts, mitigate climate change, and reduce poverty. Although this approach has not yet been implemented in Lao PDR, interest and support for working at the landscape scale is growing, e.g. ADB and KFW work on biodiversity conservation and corridors using PSFM as a model. This component is aimed at developing frameworks for managing forests at landscape scale and will pilot the application of the framework a Northern Lao biodiversity corridor in cooperation with KfW and in a Southern Lao biodiversity corridor with ADB. FLM plan implementation will be limited only to PFAs within the forest landscapes in conjunction with Component 1. Sub-component 2A: Developing Methodologies and Frameworks for FLM Sub-component 2B: Establishing Pilot FLM Models Component 3: Enabling legal and regulatory environment Component 3 will include sub-components on strengthening legal and regulatory frameworks, strengthening forest law enforcement and governance, and creating public awareness for climate change and REDD+. This component will cover the following sub-components: Subcomponent 3A: Strengthening Legal and Regulatory Frameworks Sub-component 3B: Strengthening Forest Law Enforcement and Governance Sub-component 3C: Creating Public Awareness for Climate Change and REDD+ Component 4: Project management This component will cover the following sub-components: Sub-component 4A: Project management at the national and sub-national level Sub-component 4B: Technical Assistance Sub-component 4C: Monitoring and Evaluation 1.5 The Legal and Institutional Setting Lao Peoples' Democratic Republic Laws and regulations The existing environmental safeguard system of Lao PDR is important, and has been analyzed before developing the social and environmental safeguard compliance framework for SUPSFM. The World Bank safeguard policies place emphasis on using/ applying and strengthening the country safeguard systems (CSS) related to environmental management. Appendix 12.4 briefly describes the CSS related to environmental safeguards in Lao PDR, including institutional arrangements and responsibilities, as well as the regulatory framework/ legislations. In Laos different ministries are engaged with environmental issues and environmental safeguards in the context of private and public investment. In relation to SUPSFM the lead ministries include the Ministry of Agriculture and Forestry (MAF) and Ministry of Environment and Natural Resources with other ministries playing supporting roles.. 6

15 Legislative and other requirements relevant to the SUPSFM include: local, provincial and national laws and regulations, operating licenses, permits and approvals, international standards and conventions and legal obligations to which the GOL is a party. Refer to the Appendix 12.4 for a list and summaries of these key documents relevant to SUPSFM. Constitutionally, Laos is recognized as a multi-ethnic society, and Article Eight of the 1991 Constitution states, All ethnic groups have the right to preserve their own traditions and culture, and those of the Nation. Discrimination between ethnic groups is forbidden. For the social safeguards, therefore, the constitutional framework is in place to ensure the rights of different ethnic groups are protected. Women s rights to equality are also entrenched in the constitution and more recent legislation. The Letter on Forest Management Policy mentioned above contains specific policy intentions regarding community participation in forestry : the GOL has adopted the principle that villagers in forest areas, organized in village forestry associations or other forms of appropriate groupings, should participate in forestry planning and operations at the field level, within the dispositions of the Prime Minister s Order on Decentralization, and share in the benefits derived the forest. The Forestry Law (2007) also recognizes villagers customary rights to forest use, and the Land Law makes provision for communal titling of land. OP 4.10 states that it is part of ensuring that the development process fully respects the dignity, human rights, economies and cultures of Indigenous Peoples. In this respect, the GOL is a state party to various international human rights treaties including the International Covenant on Economic, Social and Cultural Rights (CESCR) which states: in no case may a people be deprived of its own means of subsistence. The first Production Forest Areas (PFAs) were created under Prime Minister (PM) Decree 59 in 2002, and the total number and area of PFAs were increased under additional decrees issued in 2006 and Subsequently the Ministry of Agriculture and Forestry (MAF) issued regulations on forest management. A timber revenue benefit sharing decree was issued in The PM Order on Decentralization (2001) and the Law on Local Administration (2003) make the Province the strategic unit, the District the budget-planning unit, with villages as the implementation unit with, however, the village enabled to formulate development plans. Basic legal and policy frameworks exist to support social safeguards implementation in the Lao PDR. At the same time, however, there are two major policy areas of the GOL that affect this supporting framework: the eradication of shifting cultivation and the policy to transform villages into development centers and townships; these two major policy objectives are directed mainly at ethnic groups living in smaller villages and practicing rotational upland cultivation Judicial Bodies the courts In the Lao PDR, the court system is divided into four tiers: area; provincial - or, in the case of Vientiane, the Vientiane Capital Court; regional; and People s Supreme Court (PSC). There is no district court; in 2010 the 102 district courts abolished and consolidated into area courts. The area courts have jurisdiction over civil claims less than 300 million LAK (USD 36,500), as well as minor criminal cases in which the maximum sentence is three years or less. 7

16 The provincial courts and (one) Vientiane Capital Court are the courts of first instance for those cases falling outside of the jurisdiction of the area courts, as well as being the appellate courts for cases decided by the area courts. The three regional courts - Northern, Central, and Southern - hear appeals from the provincial courts. In terms of the formal justice system and Access to Justice, the area courts are the most significant for the majority of the population in Lao PDR. This is both because of the type of cases that they handle - i.e., small disputes or minor offences - but also because of their relative proximity to where people live, particularly in the rural areas. At central level, the People s Supreme Court (PSC), located in Vientiane, is the highest level court and court of last resort. In addition to its appellate jurisdiction, it has authority to issue guidelines or instructions on legal issues to, and supervises the work of, the lower courts. The PSC may also serve as the court of first instance in certain important cases. In 2009, almost eight and a half thousand cases were brought to court - i.e., to the formal justice system - throughout Lao PDR. The law provides for open trials in which defendants have the right to defend themselves with the assistance of a lawyer or other persons.. An important aspect of access to justice is the availability of legal advice. Although there have been some improvements since 2003, the shortage of lawyers continues to be a problem in Lao PDR Strengthening dissemination of legal information and increasing legal awareness Lao PDR has embraced the goal of establishing a state firmly based on rule of law by Helping the population and especially the poor and vulnerable groups to understand and exercise their rights is a keystone of development. Legal empowerment is a process through which the poor are protected and enabled to use the law to advance their rights and interests. The Legal Sector Master Plan (LSMP; September 2009) already recognized that capacity building and the upgrading of legal awareness, by method of dissemination of Laws and supplying legal information broadly, is essential and urgent, and will allow people access to Law and Justice. The dissemination of Laws, especially, these Laws affecting daily life of the people, protecting legitimate interests and promoting the rights and performing of obligations of all citizens in the society will primarily add to a reduction of the violation of Laws. (LSMP, 41). Developing a wide public understanding of the legal framework is the responsibility of the Law Dissemination Department within the MoJ but is also supported by the provision of community legal services through civil society organizations in legal awareness and legal aid services and also through the Lao Bar Association (LBA) project on legal aid and legal awareness. One way to empower poor and ethnic minority communities can be achieved through the setting and training of community-based paralegals. Paralegals are persons with specialized training who can provide legal assistance to disadvantaged groups, and who often are themselves members of these groups. In Lao PDR, taking into account the amazing ethnic diversity, community-based Paralegal would be efficient in disseminating legal information and increasing legal awareness in their community. Existing initiatives to recruit, train village para legal to raise awareness about basic law rough paralegal at community level by NGOs and LBA have proven more than satisfactory and demonstrated that community-based paralegals (1) can bring parties together to mediate, take 8

17 witness statements and gather information, draft and deliver letters, assist citizens in navigating structures of authority, and organize communities to address their own justice problems; (2) can educate communities, individuals and chiefs about laws governing a particular issue and legal processes; (3) can provide many of the basic general and criminal services that clients of legal aid programs need and (4) are appropriately located to understand the issues and the form of intervention most suitable to a specific community or case Key national regulations Decree on Sustainable Management of PFAs. (No.59/PM, Vientiane 22/5/2002). This Decree covered the identification, establishment, planning, management and harvesting of Production Forest Areas (PFA) and the key principles for monitoring the implementation of sustainable forest management on PFAs throughout Lao PDR. It further covered the duties and functions of relevant government agencies (MAF, PAFO, DAFO), local authorities and villagers in participatory management of PFAs. Decree on Industrial Tree Plantations and Environmental Protection. (No. 96/PM, Vientiane 11/06/2003). This decree promoted the planting of industrial fiber plantations of fast growing indigenous and exotic species, and the planting of trees for land re-greening and environmental protection. MAF is to coordinate with local authorities to select and survey areas of barren land, degraded forest, vacant land and secondary forest for such plantations. Technical assistance and financial incentives are to be provided to encourage plantation development. Regulation on Establishment and Sustainable Management of Production Forests. (No. 0204/MAF, Vientiane, 30/10/2003). This regulation appears to be a further elaboration of Prime Ministerial Decree 59 of 2002 in that it defines principles and procedures for establishing PFAs and instituting sustainable forest management on PFAs throughout the country. It refined the criteria for PFA selection given in Decree 59 (See Section 5.2 for a more detailed description of PFA criteria), and provided direction on both the preparation of PFA Management and operational plans and on important management activities within the PFA (boundary demarcation, timber harvesting, forest regeneration, biodiversity conservation and NTFP management). This regulation provided much more detailed direction for timber sales which has been superseded by Decree of The President of the Lao People s Democratic Republic pertaining to the sharing of revenue from timber harvested in the Production Forest Areas. (No.001/PM, Vientiane capital, 31/1/2012) (see below). Amended Land Law, No.61/PO, dated 21/11/2003 The objectives of the Land Law are to determine the regime on the management, protection and use of land in order to ensure efficiency and conformity with [land-use] objectives1 and with laws and regulations, and to contribute to national socio-economic development as well as to the protection of the environment and national borders of the Lao People's Democratic Republic. Of specific interest for this project are the following articles (most relevant in bold): Article 3. (New) Land Ownership; Article 17. Determination of Scope of Agricultural Land Use Right Article 21. (New) Determination of the Scope of Forest Land Use Rights; Article 22. (New) Allocation of Forest Land Use Rights; 9

18 Article 48. Land Certificate; Article 49. (New) Land Title; Article 52. Acquisition of Land Use Rights; Article 53. (New) Rights of the Holder of Land Use Rights. Forestry Law (No. 06/NA, Vientiane, 24/12/2007). This new law supersedes the Forestry Law 13/NA of 9/11/2005. The objective of the law is to define the basic principles, regulations and measures on inventory, management planning, sustainable management, protection, development and utilization of forest resources and forestland. Natural forests are the property of the national community as represented by the government. Use can be allocated to individuals or organizations in accordance with established regulations. Conservation and maintenance of forest resources for watershed protection, biodiversity, forest services and the livelihood of local peoples is the primary objective of sustainable forest management. Of specific interest for this project are the following articles (most relevant in bold): Article 9. Forest categories Article 12. Production Forests Article 27. Preservation of trees and NTFP species Article 35. Promotion of tree and NTFP plantation; Article 36. Management of tree and NTFP plantation activities; Article 39. Categories of utilization of the forest and forest products; Article 40. Utilization of forest and forest products for village benefit; Article 41. Utilization of forests for households; Article 42. Customary utilization of forests; Article 49. Logging and harvesting of forest products Article 51. Distribution of NTFP and wood products Article 53. Transport of timber and forest products Article 56. Categories of forestland Article 61. Preservation of Production Forestland Article 65. Development of Production Forestland Article 68. Utilization of forestland for households Decree on associations No.115/PM, Vientiane, 09//04/2009 This Decree sets the rules and regulations governing the establishment, operation and management of associations registered as legal entities in Lao PDR for the purposes of: (i) Promoting the Lao people s rights of freedom, creativity and ownership in the organization of associations aiming at national protection and development; (ii) Providing references to individuals or organizations intending to set up their associations; (iii) Providing references to government organizations concerned in managing, facilitating and encouraging lawful activities by associations, promoting associations contributions towards socio-economic development and poverty eradication, as well as countering and restricting activities affecting national stability, social order and individual rights of freedom. Decree on cooperative No.136/PM, Vientiane, 05/03/2010 This decree determines rules, regulations and measures regarding establishment, activities and administration of cooperatives in the Lao PDR in order to assist and support small commercial entrepreneurs in collectivity being competitive, cooperating and helping each others, growing in production for trade and establishing income, contributing in alleviation of poverty and improving living conditions of the people. 10

19 Decree of The President of the Lao People s Democratic Republic pertaining to the sharing of revenue from timber harvested in the Production Forest Areas. (No.001/PM, Vientiane capital, 31/1/2012) This decree supersedes parts of Regulation No.0204/MAF, Vientiane, 30/10/2003 most notably on the issue of benefit sharing from timber harvested. Article 1: States that the division of revenue gained from the sales of wood exploited in the production forest areas has to be divided in two parts: Part 1: Seventy percent (70%) of the total revenue as the state budgetary revenue; Part 2: Thirty percent (30%) of the total revenue as the budget to support the forestry management, protection-conservation, and development activities, primarily the production forests, and the funds for the development of villages or the village groups bordered with the production forests. Article 2: The Division of the Second Part of the Total Revenue. In order to be used into various purposes, the second part of the total revenue has to be segregated into 4 portions as follows: First portion: Twenty (20%) percent as the trust funds for developing the forests and the forestry resources; Second portion: Twenty (20%) percent as the trust funds for developing the production forest throughout the nation Third portion: Twenty (20%) percent as the trust funds for developing the exploited production forests. Fourth portion: Forty (40%) percent as the trust funds for developing the villages or village groups that are the agreement partners in the management of the production forests. Decree on compensation and resettlement of people affected by development projects. (No. 192/PM, Vientiane, 07/07/2005). This decree defines principles, rules, and measures to mitigate adverse social impacts and to compensate damages that result from involuntary acquisition or repossession of land and fixed or movable assets, including change in land use, restriction of access to community or natural resources affecting community livelihood and income sources. This decree aims to ensure that project affected people are compensated and assisted to improve or maintain their pre-project incomes and living standards, and are not worse off than they would have been without the project. This decree is followed by Regulations for Implementing decree 192/PM on compensation and resettlement of people affected by development projects (2010) and the Technical Guidelines on compensation and resettlement (2010). Resolution of Politburo on Formulation of Provinces as Strategic Units, Districts as Comprehensively Strong Units and Villages as Development Units. (No. 03/PM, Vientiane, 15/02/2012) This resolution provides general legal reference for decentralization politics. Province, district and village level governments are requested to explore new roles and responsibility for enhanced integrated leadership to enhance ownership and accountability. Two prominent sections are: Study to define principles regarding decisions that [provinces, district] are not allowed to make by themselves (provinces/district have no right to decide), especially with regard to management, extraction and use of natural resources; management and use revenue collected that is exceeded the plan; leasing-concession or disposal of State assets, approvals and issuance of business registration, management of public vehicles and assets and others Secondly: Define revenue units (custom-tax) for villages and strict regulations; as well as to define expenditure regulations for management-administration village tasks, including regulations for creation of reserves, funds, collection of fees and service charges of village for transparency. 11

20 Important ongoing revision on key legislation Two key legislations on land and forestry are currently under revision in Lao PDR. The National Assembly has oversight over a process that will lead to a land policy followed by a land use master plan, and a revised land law. The current draft of the land policy provides recognition to customary land management rights, collective management and community management rights. The design of SUPSFM is based on the existing land and forestry laws but the project will update the design and implementation plan if required, depending on the opportunities presented by the revised laws on land and forestry. Table 1: Other related legal documents related to the project Legal document Year of endorsement Constitution in Lao PDR 1991, updated in 2003 Decrees Decree on the management and protection of Wild Animals, Fisheries and on 1989 Hunting and Fishing. Decree on the Establishment of National Forest Reserves 1993 Decree on the Implementation of the Law on Land No and Ministerial 2007 Direction No. 564/NLMA, 6th August Decree On State Land Lease and Concession Fee Rate, No. 02/PO, Date: 18/11/ Decree on State Land Lease or Concession 2009 Decree on the Preservation of Cultural, Historical and Natural Heritage 1997 Decree on the Implementation of the Water and Water Resources Law 2001 Implementing Decree for the Environment Protection Law 2001 Decree on the Establishment of the National Regulatory Authority (NRA) for the 2004 UXO program in Lao PDR Decree on the Organization and Activities of the Nam Theun 2 Catchments 2005 Management Project Authority Decree on Environmental Impact Assessment 2010 Laws Water and Water Resources Law 1996 Law on Water and Water Resources 1996 Law on Agriculture 1998 Environment Protection Law 1999 Road Law 1999 Law on Property 2002 Law on National Heritage 2005 Law on Labor 2006 Wildlife and Aquatic Animals Law 2007 Electricity Law 2008 Fisheries Law 2009 Regulations Regulation on the Management of the National Biodiversity Conservation Areas, 2001 Aquatic and Wild Animals Guidelines, Policies and Standards Regulation on the Management of National Protection Areas, Wildlife and Aquatic 2003 Animals Resolutions of the Lao PDR Government on National Strategic Plan for the UXO 2004 Program in the Lao People s Democratic Republic The Safe Path Forward Agreement on National Ambient Environmental Standards 2009 Lao PDR National UXO / Mine Action Standards 2009 Environmental Guidelines for Biomass Removal from Hydropower Reservoirs in Lao

21 PDR Instruction No. 1668/NLMA. CAB, dated 29 April 2008: on the Use of New Formats 2008 of Land Titles and New Registration Book Ministerial Direction No. 564/NLMA 2007: on Adjudication Pertaining to Land Use 2007 and Land Occupation Right for Registration and Land Titling Public Involvement Guidelines 2009 Technical guidelines on Village Grievance Handling 2010 Decree on Village Grievance Handling 2010 O3/PM, June 1996: Instructions and Recommendations on the Continuation and 1996 Expansion of Land Management and Land and Forest Allocation 822/MAF, August 1996: Directives on Land and Forest Allocation for Management 1996 and Use No. 0054/MAF, 1996: Ministerial Approval/Decision on Customary Use Rights of 1996 Forest Resources The World Bank Operational Policies and Directives The environmental and social policies and procedures of the World Bank are widely regarded as de facto international standards for the environmental and social management of resource development projects in countries with developing or absent regulatory frameworks such as Lao PDR. The World Bank undertakes environmental screening of each of its proposed project to determine the appropriate extent and type of ESIA to be undertaken. The Bank classifies the projects into one of four categories 1 depending on its type, location, sensitivity and the nature and magnitude of impacts on communities and the environment. While the SUPSFM project is not expected to have adverse environmental impacts, it has been assigned Category "A" status because it may trigger several bank safeguard policies. Refer to Table 2 and Table 3. This is a precautionary measure to make sure that all safeguards policies are given proper attention, and to help the SUPSFM preparation team identify ways to enhance the expected positive impacts. For a Category A projects the borrower, the Government of Lao PDR is responsible for preparing an ESIA. Table 2 World Bank Project Classifications Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing a report, normally an EIA. 1Refer to: K: ~pagePK: ~piPK: ~theSitePK:502184,00.html 13

22 Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas--including wetlands, forests, grasslands, and other natural habitats--are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. The findings and results of Category B EA are described in the project documentation (Project Appraisal Document and Project Information Document). Although the SUPSFM project is intended to improve overall forest management capability and increase forest cover in Lao PDR, there is a risk that some sub-project activities my cause localized small scale negative impacts. As such the ESIA, Environmental Management Plan (EMP) 2 and Social Safeguard frameworks will be compliant with World Bank Safeguard Policies: Environmental Assessment (OP 4.01), Natural Habitats (OP 4.04), Forest Strategy (OP 4.36), Pest Management (OP.4.09) Physical Cultural Resources (OP 4.11), Involuntary Resettlement (OP 4.12) and Ethnic Minorities (OP 4.10) Table 3: Relevant World Bank Safeguard triggers World Bank Safeguard Environmental Assessment (OP 4.01) Natural Habitats (OP 4.04) Forest Strategy (OP 4.36) Description/Comment In World Bank Operations, the purpose of Environmental Assessment is to improve decision making to ensure projects are sound and sustainable, and that potentially affected people have been clearly consulted. The (OP 4.01) is the umbrella policy for the banks environmental policies. Refer to Table 2 Forests are managed for broad range of goals, which include livelihoods, timber, conservation, biodiversity and environmental services and cultural purposes. The World Bank does not support projects involve significant conversion or degradation of critical natural habitats. Where this does occur, analysis must prove that benefits far out way costs. The bank will take account of the Loa Governments ability to implement conservation and mitigation measures. In regard to this trigger these issues are addressed in within the various technical guidelines and policies that have been developed over the SUFORD years, and the SUPSFM project environmental screening process outlined in the EMP. At various levels of government, the World Bank has supported forest management projects in Lao PDR that include governance capacity building, increasing village grassroots participation, livelihood enhancement sustainable forestry, biodiversity management and conservation, forest planning and law enforcement. In regard to this trigger these issues are addressed in 2 The ESIA includes the Environmental Management Plan (EMP) in two volumes, Appendices 12.5 and 12.6, published under separate cover. 14

23 Physical Cultural Resources (OP 4.11) Pest Management (OP.4.09) Involuntary Resettlement (OP 4.12) Indigenous Peoples (OP 4.10) within the technical guidelines and policies that have been developed over the SUFORD years, and the project environmental screening process outlined in the EMP. The project activities will be widespread across several provinces. The areas are replete with in physical cultural resources of various sizes and values. It is known that the illegal trade of objects occurs throughout Laos, with the result being a steady erosion of Laos s rich cultural wealth. The project environmental screening process, outlined in the EMP, will help identify and design appropriate responses to manage physical cultural resources. Together with Chance Find Procedure these provide an appropriate and effective response to cultural heritage management requirements under this World Bank trigger Although pesticide use in SUPSFM is discouraged where alternative natural biological solutions can be practically applied, total avoidance is unlikely. Discouragement assists land managers from becoming dependent on costly and potentially destructive chemicals and fertilisers. The inclusion of this Safeguard encourages adoption of Integrated Pest Management Strategies. The project environmental screening process in the EMP will help identify and design appropriate responses to pest control. It is unlikely that the project will require significant acquisition of private land, if any. Local people affected by the project will benefit from more sustainable access to forest and other natural resources as well as projectsupported actions for improved livelihoods. Nonetheless, short term loss in livelihood may be unavoidable since the development of alternative resource allocation and livelihoods are longer-term processes. In line with OP 4.12, any short term loss from changes in livelihoods will be mitigated in Community Action Plans which are developed in participation with project-affected communities. Many project beneficiaries are known in Lao PDR as Ethnic Groups. In line with OP 4.10, the project has developed a Community Engagement Framework (CEF) to facilitate community participation, will engage with communities. The CEF is based on a process of free, prior and informed consultations with the goal of establishing broad community support. The CEF ensures that Ethnic Peoples will receive benefits that are culturally appropriate and gender- and intergenerationallyinclusive. Potential risks or; adverse effects on the communities will be identified, managed, and mitigated by means of Community Action Plans which are to be developed and implemented with the participation of communities that opt to be included in the project. This aim is consistent with GoL national policies that promote a multi-ethnic society, and seek to ensure the full participation of ethnic groups in the country s development. 15

24 The SUPSFM design has triggered two World Bank social safeguard operational policies (OP): OP 4.10 Indigenous People and OP 4.12 Involuntary Resettlement. That the project could conceivably result in land acquisition or resettlement/relocation has triggered OP Since the GOL has determined that none of the 49 ethnic groups living in the country is indigenous per se, the accepted terminology used in Lao PDR is ethnic group. As many of the target communities belong to ethnic groups, the World Bank Policy on Indigenous People applies. The World Bank s policy on Indigenous Peoples requires that free, prior and informed consultations would be conducted with affected indigenous groups leading to their broad community consent to participate in the project. It also requires that potential adverse effects on the Indigenous Peoples communities should be avoided, and when avoidance is not feasible, should be minimized, mitigated, or compensated. Indigenous Peoples should also receive social and economic benefits from the project that are culturally appropriate and gender and intergenerationally inclusive. While no single definition can capture their diversity, in particular geographical areas, indigenous peoples can be identified by the presence in varying degrees of the following characteristics self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories 7 customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and an indigenous language, often different from the official language of the country or region. 2 DESCRIPTION OF PROJECT ACTIVITIES The project development objective is to execute REDD+ activities through sustainable forest management in priority areas and to pilot forest landscape management in four provinces. The project will start in 2013, and will operate for a period of 5 years. During this period, the project will continue to support ongoing PSFM activities in thirty four (34) PFAs located in nine (9) provinces where SUFORD was active. At the same time the project, introduce PSFM activities in seven (7) additional PFAs in three (3) new provinces of Oudomxay, Luangnamtha and Bokeo. By the end of the project, 41 PFAs located in the 12 provinces are expected to have forest management plans in place. Opportunities to create synergies with other funding agencies supporting PSFM and REDD+ initiatives have been identified and are expected to be fully developed during the course of project implementation. SUPSFM funds will mainly provide operational resources while the Ministry of Foreign Affairs for Finland (MFAF) will provide the bulk of the TA resources under this project 3. Where collaborative agreements are reached, 3 Sustainable Forest Development Sustainable Financing Phase Project, SUFORD-SF draft prepared by Indufor (2012) 16

25 overarching safeguards requirements outlined in this document will be applicable to activities with the participating communities. The key results indicators outlined in the Project Results framework include: a. expanded areas under approved forest management plans b. forest landscape management approach in Lao PDR developed and agreed c. increased number of people with monetary and non monetary benefits from forests d. decreased rate of forest cover loss in project areas e. enhanced carbon storage from improved forest protection and restoration f. reduced emission from deforestation and forest degradation in project areas. 2.1 Field Activities PSFM and livelihoods development activities in participating villages will be facilitated by teams consisting mainly of district line agency staff with support from national consultants contracted by the project. In addition, opportunities will be explored and sought to involve nonprofit agencies (NPA) and mass organizations (Lao Women s Union and National Front for Construction) to enhance the community engagement process particularly concerning livelihoods development. Village work on both PSFM and livelihoods development will be modular, with work modules defined around specific tasks. The district-npa teams will be provided training and practicum on the work modules before they are sent to do cascaded training in villages. Initial training of district-npa teams will take place in the province, while practical field training will be carried out in a focal village. Those training activities will be facilitated by a Trainers Team of expatriate and national consultants, including as well invited resource persons from development partners for specialized topics, e.g. on a particular livelihood enterprise or option. 2.2 Village work Village work will consist of various activities that are related to PSFM and livelihoods development. Those are listed below. Further details, e.g. process steps, indicative timing, are given in Annex 1. I. Village organizing for PSFM and livelihoods development (first 3 months) Focus group discussions and village assembly meeting to disclose the Project and secure prior free and informed consent of the village to participate Establishment or activation of the Village Forestry and Livelihood Committee (VFLC) Identification of forest area categories that overlap with the village Initiating the formation of livelihood groups Participatory land-use planning (PLUP) with the following sub-activities Introductory village assembly meeting about land use and livelihoods Village history, population, and problem census Socio-economic baseline data collection and analysis 17

26 Village 3D model building or use of high resolution image (0.5 m resolution) to facilitate identification of village features, e.g. farm lands, settlements, high conservation value forests, access roads and tracks, etc. Village boundary demarcation on the ground and delineation on the 3D model or high resolution image Delineating forest area categories on the 3D model or high resolution image Delineating current land uses on the 3D model or high resolution image Increasing understanding of outcomes of land-use decisions using a simulation game Zoning on the 3D model or high resolution image and recording of zoning information on the village map Painting the 3D model Painting the village map on wooden board and installing in a strategic site Discussion and signing of village agreement on land management, village land management rules, and description of plots Drafting the contents of the Village Action Plan Training the VFLC on monitoring and reporting of PSFM and livelihood activities and results Final village assembly meeting to disclose the various PLUP results II. PSFM activities for various categories of FMUs in the village (follows after PLUP) Forest resources assessment and formulation of PSFM plans (first 2-3 years) Land-use mapping of FMUs based on forest area categories identified during PLUP Partitioning of FMUs into zones based on PLUP and compartments within zones Participatory setting of management objectives of FMUs and the dominant management objective of each zone of the FMUs Identification of high conservation values and delineation in the maps of FMUs Forest inventory in production and potential production forest zones Analysis and reporting back of results of the forest inventory to the village Specification of forest management system for each zone of FMUs Specification of forest management activities by compartment of the zones Writing of management plan of FMUs Plan validation and approval process Implementation of PSFM plans of FMUs (third year and onwards) Pre-harvest inventory (FMUs with production forest zones) Sustainable harvest planning (FMUs with production forest zones) Securing sustainable harvesting quota (FMUs with production forest zones) Marking trees to be cut (FMUs with production forest zones) Contracting the logging operations (FMUs with production forest zones) Controlling the logging operations (FMUs with production forest zones) Timber chain-of-custody process (FMUs with production forest zones) Timber sale (FMUs with production forest zones) Turnover of timber revenue share (FMUs with production forest zones) 18

27 Post-harvest assessment (FMUs with production forest zones) Sustainable collection of non-timber forest products Maintenance of high conservation values Forest protection from various drivers Forest restoration (see livelihood development) Implementing grievance and conflict resolution mechanisms III. Livelihoods development in each village (following after PLUP) Communal titling of village-use forests in undesignated forest areas Leasing of village-use forests inside state forest areas Village-state agreement on forest restoration inside state forest areas Titling of smallholder agroforestry areas to farmers Exploring livelihoods development option with the village Village visits and discussions with villagers on current livelihoods and outlooks for livelihoods development Contracted studies or by development partners on various livelihood options preferred by or recommended for villages under different situations and considering existing and future markets Selection of livelihood options for further feasibility study Decision on livelihood options to develop in the village Preparation of proposals for funding from the village livelihoods grant (VLG) Management of VLG Developing capacity of VFLC in financial management Obtaining of VLG and financing of intended livelihoods projects Monitoring of VLG use, results, and issues Resolution of issues affecting livelihoods Monitoring the development of village livelihood groups Formal organizing of developed village livelihood groups into associations for enterprise development, marketing, and related purposes 2.3 Systems and Guidelines for Implementing Field Activities The systems and guidelines for implementing various PSFM and VLD activities are in general already well developed, although further development to cover enhanced mechanisms will be needed. For instance, those for PSFM are described in detail in the PSFM Operations Manual developed by SUFORD. Those for PLUP will be adapted from the PLUP Handbook developed by NAFRI-IRD-CIFOR. Systems and guidelines have also been developed for REDD+ REL and MRV by SUFORD and various development partners (KfW/GIZ/JICA/WCS) and will further be developed as part of Component 3. Timber revenue sharing has also been developed with guidelines recently released by GOL. Systems and guidelines will be developed for a few new tasks that have not yet been covered by SUFORD and other projects, such as leasing of degraded land in PFAs for forest restoration, including revenue sharing from products harvested from forests restored through village initiatives. It should be noted as well that a low-intensity, low-impact timber harvesting system has been developed by SUFORD, documented in the PSFM Operations Manual, and applied for several 19

28 years already in the pioneer PFAs supported by SUFORD. Low-impact logging methods include minimized logging access infrastructure development, directional felling, and supervised log transport that applied together have resulted in low impact to habitats. Low-intensity timber harvesting where only 1 or 2 trees are harvested per ha also contributes to low logging impact on habitats, as well as to low clearing of the canopy thus preventing the influx of bamboos and weed species and other unacceptable changes in stand structure and species composition in harvested stands. The silvicultural treatments developed under SUFORD have been applied primarily in southern and central provinces. Additional investigations will be required during SUPSFM to develop silviculturally appropriate techniques for northern Lao forests. 3 ESIA SURVEY METHODOLOGY The ESIA method consists in a systematic and in depth literature review of key documents produced under the SUFORD Project. This allows describing the project beneficiaries/ characteristics in old SUFORD provinces and to finding out about and capitalize upon experiences and lessons learnt under SUFORD. The second method used consist in a field visit of 10 potential target communities in Louang Namtha and Oudomxay Province ted by the SUPSFM project. The experience under SUFORD strongly suggests the importance of continuous learning and adjustments throughout the implementation process, and of active participation of beneficiary communities, in order to adequately address the significant diversity of cultural and socioeconomic conditions across project areas as well as rapidly changing operational environment. Such critical determinants of successful PSFM as access to market, forest covers, soil/ terrain conditions, absorption capacity, and so on, varied across SUFORD villages and continued to change during project implementation. Active private sector investments in mining, agricultural plantations, hydropower development frequently changed local socioeconomic landscape abruptly. Community livelihoods are complex and diverse; situations change due to various external factors; development of alternative livelihoods need various support tailored to the different needs and capacity levels of beneficiary communities; and community understanding and ownership are critical for the success of sustainable forestry. A blueprint approach of conducting a comprehensive ESIA and devising pre-determined sets of interventions during preparation proved to be inadequate. The project therefore decided that a more process-oriented approach would be taken whereby detailed collection of environmental and social data would be carried out during implementation at village level through participatory Social Assessment (SA) processes. This ESIA therefore aimed to identify a broad range of relevant variables that will affect project performance and potential impacts that may result, and provide a framework for the more detailed and participatory assessment of environmental and social issues and for the development of mitigation measures during implementation. More specifically, the ESIA aimed to assess general trends in community livelihoods and resource use as well as relevant environmental settings in project areas, identify key issues that community resource diagnostics and participatory assessments that will be conducted during implementation should pay particular attention to, and provide the analytical framework and methodological approach to be used in the process. 20

29 3.1 Literature review (FOMACOP, SUFORD and SUFORD AF) There is an extensive library of literature that has been developed for SUFORD, including ethnic development plans; socio-economic impact assessment; traditional ecological knowledge; and various technical handbooks. Of pertinence to SUPSFM were several recent reviews of the SUFORD AF social livelihoods program, in particular key studies including Ethnological study of Katuic speaking groups (Daviau, 2006), Chamberlain SIA (2008), Ewers (2012), Anderson et al (2012) and other field studies undertaken by SUFORD during implementation.. These reports were complimented by various mid-term reviews, field assessments and project social impacts assessments. It also benefits from the extremely valuable experience from project implementation by an Applied Anthropologist hired as the Ethnic and Gender TA and involved in the SUFORD AF (November 2012-February 2013). The ESIA thus benefited from the broad lessons learnt during the implementation of previous projects in terms of the social and environmental impacts that had not been anticipated during their preparation, and how the projects tried to address them and where gaps remained to be addressed, as will be described in more detailed below, these reports indicate that by and large environmental and social impacts of the forestry and livelihood components are relatively minor, but that some aspects of the design of and implementation of SUFORD provided short comings that need to be addressed under SUPSFM. These challenges relate to SUPSFM activities in both the previous SUFORD areas and new northern provinces. Since the SUPSFM is extending into new areas that have not previously had social and environmental evaluations pertinent to SUFORD, social demographic diagnostic has been required. While the challenges to SUPSFM are expected to be similar to that experienced by SUFORD, the social and environmental fabric of the northern areas may present yet new unforeseen issues. Safeguards, both environmental and social become important aspects of SUPSFM design and implementation. A number of scoping missions have been conducted over 2012 between the WB and various stakeholder line agencies, primarily at provincial and central level. As well as means to further develop the SUPSFM design and gauge GOL capacity, the missions provided a forum for SUFORD technical advisors to present project progress and discuss its positive aspects and challenges. This ESIA makes use of these shared lessons and was supplemented village level surveys and district office meetings. 3.2 Field survey in new provinces There is a vast amount of reference literature and tool kits available detailing a variety of participatory tools and methodologies that can be employed to engage with various communities and key target groups. However, the choice of method and tools as often depends on the context, objective, time availability and the type of stakeholders being consulted. This ESIA used the approach of a Rapid Rural Appraisal, following the guidelines of the WB on Free Prior Informed Consultation. Advantages of this method are the ability to address several objectives in one village visit. The method has facilitated the project preparation team in engaging meaningfully with the stakeholders to inform them about the planned project, to gauge their interest and to get a bird s eye view of the social-economic realities, gender division of work, existing livelihood strategies, and particular focusing on natural resource use and 21

30 management and tenure aspects. In addition to this, the team discussed village development plans, potential impacts the project could have and identified possible mitigation measures Tools used during stakeholder consultation A large variety of tools listed beneath- have been employed in order to find reliable and valid data on one side, and to provide adequate information to the involved stakeholders on the other side. The main techniques for consulting with, and distributing information to, the involved stakeholders have been: collective meetings in the form of workshop, discussions with key informants and key group discussions. Questionnaire: To facilitate the process of gaining data from a large group of people following a structured way of questioning. Two sets of questionnaires were developed for the purpose of this stakeholder consultation, which provided insight on various topics for the specific stakeholder group. Mapping and plotting: Participatory mapping techniques involved facilitating community members in developing spatial representations of their areas by creating maps on a large piece of paper. Such maps reflect the rudimentary locations of villages, different categories of forests, low land for agriculture land, upland agriculture areas, water resources, as well as management issues. The process of making the map and the discussions that occur while it is being made are important outputs of the exercise. Map information will be digitized so that it is documented for future reference. These results will not be used as definitive land use assessments, as this exercise will be carried out under PLUP. The results of the preliminary mapping exercise were merely to inform discussion on the broader issues of forest use and livelihood. Scoring and ranking: This process indicated the order of importance among variables (e.g. NTFPs, wealth, livelihood strategies) that were identified by the villages. For less complex issues, villagers can be asked to rank products during semi-structured interviews. A pairwise ranking system or scoring (matrix ranking) system was used for more complex issues. Historical transect: The technique of having the community construct a transect of the area helped to identify successful and unsuccessful management systems so that a new management system can avoid the same mistakes and promote the positive aspects endorsed by the community. The decline and or increase of certain forest products and species can be established such that the management plan can address these issues. Cash flow calendar: The cash flow calendar documented the flow of money over time and the status of indebtedness throughout the year. This information can contribute to an estimation of the need for financial resources at a specific moment in time. Seasonal calendar: The seasonal calendar documented the flow of forest products over time and how product collection changes over the season. This information can contribute to an estimation of yields. GIS mapping and photographs: This will provide digital information on the exact location of the village and moreover provides a visual impression of the village and the surrounding areas. This information will contribute in assessing the capability of the land to implement alternative livelihood options for a particular village Sampling strategy 22

31 By late October 2012 after the consultation workshop was undertaken in several provinces in the North of Lao PDR, consensus was reached between MAF, DoF and WB on the new entry provinces and PFAs. The team selected Nam Fa PFA in Long district in Luang Namtha province and Nam Nga PFA stretching out over Xay, Beng, and Nga district in Oudomxay Province. In the absence of factual up to date information on location, names and number of villages an initial estimation of project villages has been made based upon year 2000 data from DoF GIS department. A buffer zone of 10 km around the PFAs was plotted on the initial maps from the DoF GIS department. Although, anecdotal evidence from the field mission suggest that villagers as far 20km from the PFA use its resources, it can be assumed that villages within the 10km radius would use PFA resources more frequently and intensely. This zone basically ensured that villages, which might be physically located outside the PFA, however still use resources inside the PFA, would be included in the ESIA of the project. A total number of approximately 100 villages were accounted for. The preparation team took 10% 4 and ended up with an initial 10 villages to conduct the ESIA ground truthing. The team initially planned to conduct consultations in 4 villages in Long district Luangnamtha and 6 (3 x 2) villages divided over Xay, Beng and Nga districts in Oudomxay. Due to difficulties accessing some villages only 2 villages were consulted in Long district Luangnamtha province. To compensate for that shortfall, the preparation team decided to conduct additional village consultation in Nga and Xay district, Oudomxay. Based on the review of secondary data regarding these provinces, it was determined that not all villages in the target provinces and district would be homogenous. In order to get an adequate representation of about 10% of the villages, which were likely to be impacted by the project activities, the preparation team identified a set of criteria. A stratified sampling along these criteria has facilitated the sampling process of villages for the consultation/baseline/impact assessment field visits. The identified criteria are listed below: Accessibility: this criterion determines whether and how relatively easy it is to access the impacted villages by road and also relates to possible mobility of villagers to access markets Ethnicity: this criterion defines which ethnic groups are present in a certain village. Consolidation and/village development clusters: the Government of the Lao PDR has currently several development strategies and policies in place, some of these aim to consolidate and or give special attention to certain villages throughout the country. Wealth Status: wealth status according to GoL standards (poor, average, well off) Forest Dependency: this criteria assess the dependency of household livelihoods on forest products Village location related to PFA: villages with their village territories inside the PFA, are likely to have different impacts then villages located in proximity of PFA. Availability: this defines whether the community is actually available to host a meeting with the assessment team at the proposed time. Distance to district: closer proximity to district would suggest better connection to market and other sources of income Geographically located near border sub-district (khumban), district and/or province: the project activities can only be implemented in a selection of villages in a certain 4 This percentage is often used for assessment for project assessments and audits by ADB and the World Bank. 23

32 amount of PFA s, therefore it is good to assess potential impacts on project geographical borders Number of villages per district: districts with high and low village density On the basis of these criteria the SUPSFM Prep Team made a shortlist of villages to be selected for consultation. A second round of selection, together with the DAFO staff determined which villages actually were available for consultation. Some of the preselected villages had to be dropped and replaced by 2 nd selection villages. Reasons for converting to 2 nd selection villages were; (i) inaccessibility of villages due to bad road condition and heavy rainfall; (ii) some villages were not available because of the harvest season. The final selection of villages reflected a balance of villages with a variety of ethnic groups, different access road conditions, variation of forest dependency and different geographical locations in relation to the PFAs Timing and duration or field mission A table with these criteria in the header row was distributed by the end of October 2012 amongst the PAFO offices in the participating provinces, with the request to populate the table and sent it back to the project preparation team. After one week without any response from the participating provinces the preparation team decided to start planning the field mission with the participating districts and provinces, it was assumed that the table could be populated during consultation meetings with provinces and districts and selection of villages could be made on location. Prior to departure some village data was sent back from Oudomxay province, however data from Luangnamtha remained incomplete till the team actually physically consulted the DAFO staff in Long district. Gaps in data available at the ESIA stage will be filled through the Community Resource Diagnostics and Participatory Social Assessment to be carried out during implementation prior to or at the beginning of engagement with respective beneficiary communities. 4 LESSONS LEARNT FROM PAST EXPERIENCES The objectives of the literature review were to assess key social and environmental aspects of the SUFORD project to identify key lessons learnt so that Safeguards could be improved, or formulated and then integrated into SUPSFM design. Specifically the ESIA focused on the following: 4.1 Free, Prior and Informed Consultations (FPIC) This section discusses the lessons learnt from SUFORD and SUFORD AF in relation to village consultation (including woman and ethnic minorities), in decision making, planning and implementing PSFM and Village Development (VD). One of the main cornerstones or underlying principles of the social safeguards is effective community consultation. According to the 2008 Social Impact Assessment (SIA), in the initial phase of the SUFORD, the implementation of the Ethnic Group Development Plan (EGDP) was rated as only moderately satisfactory primarily because villagers reported that decisions had been made too fast and 24

33 no attempt was made to investigate local traditional decision-making processes and how these might be incorporated into the planning process. Thus, during the preparation of the SUFORD AF, emphasis was placed on making extensive improvements to the project to ensure the participation of ethnic minorities. This was done by focusing on the consultation process and on the role of an applied anthropologist to provide inputs on the relevant groups for inclusion in all aspects of implementation, notably in VD, PSFM, and LUP. The role of the anthropological components was crucial in incorporating anthropological concerns into SUFORD guidelines for all aspects of the operational side of the project. It was also emphasized that project personnel needed to be informed on the specific ethnic characteristics of each group prior to engaging in consultations since groups will have different interpretations and expectations depending on ethnic backgrounds; that ethnographic analyses of village social structures would need to be carried out, especially where ethnic minorities were not well-known. It was also pointed out that all project information need to be translated and presented in the language of ethnic groups. Mass organizations such as the Lao Women s Union were engaged to provide support for communication with local communities. Despite these efforts recent reviews of SUFORD safeguard performance have concluded that the Free, Prior Informed Consultation (FPIC) process was not well implemented or effectively monitored despite improvements to project design. Field investigations have revealed that government and mass organization staff tasked with village level work has only a limited understanding of the FPIC concept. Inherent challenges in communicating with Ethnic groups and especially with ethnic women remain for SUPSFM to address. Based on recent fieldwork by Ewers (2012) and others and on field surveys undertaken during preparation of the ESIA the team can make the following recommendations: Given the size and complexity of the PSFM program Government should also engage both Lao Women s Union and Civil Society Organizations to support consultation efforts in the future; Consultations must be conducted as a process in which women and men of different ethnic groups are given full information to consider; Consultation must be conducted with women s groups separately in villages and in their own languages. Their thoughts and opinions must be reflected in overall decisions. The people to facilitate ethnic group women should themselves either be women of the same ethnic group or be able to speak the particular language fluently; The timing and location of meetings is crucial to ensure the participation of women and poorer families. There should be a small survey done before consultation starts to find out when it is most convenient for women and poorer families to attend important meetings; and finally Perhaps the most salient guidance can be traced back to the Social Impact Assessment (2008). This document clearly states the project needs to budget enough time and resources to be able to interact comfortably with villagers throughout the life of the project. This will enhance the learning process of both the project and the villagers. 25

34 4.2 Mainstreaming ethnic and gender work approach Mainstreaming Ethnic Group Issues in SUFORD-AF basically meant to carry out project implementation in a way that caters to culturally appropriate modes of communication. The implementation approach for Ethnic Group work comprises: a) raising awareness of ethnic issues with the technical forestry staff, LFNC and LWU through guidelines and special training; b) supporting PAFO s and DAFO s technical work in villages with extra facilitation from ethnic teams of LFNC and LWU, and c) integrating ethnic group and gender issues into the regular technical training that is carried out in SUFORD. A workshop held on 29 April 2009 agreed to establish an institutional agreement on collaboration between the Lao Front for National Construction (LFNC) and MAF. The LFNC is a mass organization under the Party. It has a Department for Ethnic Group Affairs and the central LFNC has officially appointed the Head of the Division of Ethnic Affairs to work closely with project s Ethnic Group Facilitation Teams or Ethnic Team. These Ethnic Teams consisted of LFNC and Lao Women Union members at province and district level. The Ethnic Teams were set up in support of the Technical Teams of Provincial Agricultural and Forestry Office (PAFO) and District Agricultural and Forestry Office (DAFO). Earlier consultancy reports indicated a need to engage with the LFNC in the project activities. This engagement was not implemented in Phase 1 but in the AF Phase, where the project moved to new provinces with a high number of diverse ethnic groups, the engagement was established. As an organization the LFNC is designated as an advisor to the central committee of the Party, and it has a mandate to act in the interest of the ethnic groups and reduction of poverty. Its tasks are to enhance the administrative mechanism for inclusion of ethnic minorities in promotion in rural development activities and ensure that other agencies are aware of the requirements for the participation of ethnic minorities. The ethnic groups have their traditional leaders; therefore it is effective to approach them by the LFNC officers as they are often from the local ethnic groups and have knowledge of the local language. SUFORD-AF made room for LFNC in the project by including budget lines for its work along with LWU to form an ethnic (group consultation) team. The LFNC is represented from Central down to village level. So is the LWU. The Lao Women s Union (LWU) works with the project along with the LFNC. It is also a mass organization, which seeks to enhance women's capacity for self-development and promote women's role in society. The LWU is represented from Central down to village level. LWU has conducted dissemination throughout the country by organizing workshops, seminars, and publication of handbooks as well as communicating through newspapers, TV program and radio broadcasting in three main ethnic languages, namely Lao, Khmu and Hmong. Five Gender Resource Information and Development Centers (GRID) were set up across the country to promote knowledge and information concerning gender and development in Lao PDR, ensure gender mainstreaming into the planning process in all areas and government sectors, conduct training on gender perspective for government officials at all levels and research. The Ministry of Agriculture (MAF) has a Women s Advancement Division (WAD), which acts as a representative of LWU. It supports measures in forestry and agriculture for woman to benefit from development activities. WAD is an important partner to facilitate sustainable gender 26

35 development in the Ministry and in their field programs. It has the power to influence the advancement of women within forestry and agriculture within the country. The villages in SUFORD AF differed in terms of their need for support. To ensure that the available resources were used effectively, the villages were ranked into a priority order where the high priority villages, that is, First Priority Villages, would benefit from the most extensive support. The villages in under SUFORD AF were divided into two levels of priority: first priority and second priority villages. A: First Priority Villages (75 villages) meeting the following criterion: multi-ethnic with a recent history of migration; no dominance of Lao-Tai groups, villages ethnically diverse, or consisting of ethnic groups who communicate traditionally in their own language/s (other than Lao); villages with poor infrastructure and services; villages with a high dependence on forest systems for their livelihoods and villages located inside PFAs. B: Second Priority Villages (236 villages) include all other multi-ethnic villages or villages inhabited by one ethnic group who communicate traditionally in their own language/s (other than Lao). According to the EGDP, Coordination with PSFM and VD processes, in First Priority Villages, the technical PSFM and VD process must be preceded by non-technical visits by LNFC staff. Technical teams will follow recommendations from the LNFC staff on how the consultative process is best set up in each village and what specific issues relating to ethnicity need to be taken into consideration. The performance monitoring conducted in June 2012 revealed that 50% of the LWU and 53% of the LFNC representatives went to all target 1 villages in their respective target areas. Comparatively, 88% of the LWU and 87% of the LFNC representatives went to the priority 2 villages with the technical team. In terms of availability of human resources, 88% of the LWU and 60% of the LFNC representatives estimated they have sufficient human resource available to join the SUFORD project. At the beginning of the project a survey was conducted to inventory the ethnicity of the civil servant at district and provincial level in the LWU and LFNC. Unfortunately, the results were never used to select relevant collaborators, as illustrated by the ethnic and gender profile below. Main challenges identified during SUFORD AF implementation - The LFNC and LWU were both key partners in the project. Initially an inventory of the ethnicity of staffs in each of the district and provincial departments was conducted in order to prioritize key individuals that would have collaborated with the project. Unfortunately, the outcome of this inventory has initially not taken into consideration. This resulted in most of the LWU and LFNC representatives to be from Lao-Tai ethno linguistic family and unable to bridge linguistically and culturally with the target communities. This lack of ethnic staffs among ethnic team at provincial and district level able to bridge culturally and linguistically with targeted communities which is a constraint in facilitate information sharing and technical work. 81% of the LWU representatives (13 women) belong to Lao-Tai groups and 19% belong to Mon-Khmer groups (Brao in Attapeu, Khmu in Vientiane province and Yae in Sekong). 27

36 - Others constraints include the lack of accuracy in using ethnic names both in daily activities and project documents; and the fact that community level meetings were often conducted in Lao language without proper translation in ethnic languages. The ethnic and gender team also lacked ethnic and gender awareness (male interview female, no gender segregated group discussions). - Another constraint lay in the fact that the ethnic and gender teams that accompanied technical teams did not have clear task and lack skills in facilitation for technical teams so often they remained remain in the background and silent. - Initially the capacity of LNFC and LWU to record both quantitative but even more qualitative data was weak. - The ethnic and gender team was not initially asked to help in resolving conflicts or requested to raise sensitive issues such as land grabbing, impact of concessions on people access to agricultural land, corruption cases, etc. - Ethnic and gender team suffered from a lack of efficient coordination between provincial and central level. Central level team lack leadership and was not aware of planning, implementation and there is no reporting done by the LFNC/LWU so the achievements of the provincial ethnic and gender team is not acknowledged. - Initially the LFNC and LWU were not properly trained or made aware of the implementation approach outlined in the EGDP that clearly defines three main ways to mainstream ethnic and gender issues: (1) raising awareness of ethnic issues with the technical forestry staff, LFNC and LWU through guidelines and special training; (2) supporting PAFO s and DAFO s technical work in villages with extra facilitation from ethnic teams of LFNC and LWU, and (3) integrating ethnic group and gender issues into the regular technical training that is carried out in SUFORD. - At the outset SUFORD-AF lacked formal link between project strategy, implementation, and central level discussions and meeting with key actors involved in the WAD. This meant that the WAD was not operational and was never mobilized to help address gender related issues. - Neither LFNC nor LWU were involved in planning of field activities. Mostly they were requested to accompany the technical staffs in the field. - Finally, huge turn over of project collaborator resulted in loss of capacity building provided and lack of ownership by government stakeholders resulting in lowering the efficiency of the work done. Achievements - SUFORD AF managed to address the lack of ethnic collaborators among government counterpart at local level and select key collaborators belonging to Mon-Khmer groups in Sekong and also hired female interpreters (Harak in Sekong Province) to allow setting up an interface in ethnic language; directly allowing women to participate in their native 28

37 language. An official letter has been sent to all provinces to strongly advocate for the recruitment of ethnic candidate to collaborate with the project. - LFNC and LWU were trained in participatory methodology and provided with clear tools and leading them directly in the field doing participatory monitoring and increasing their facilitation skills. They have monitored both VD and PSFM related activities in the 5 SUFORD-AF provinces. - One of the main achievements of conducting this participatory exercise has been the increased ownership of national, provincial and district level ethnic and gender teams in implementing the work. At the end, the central level team including the national advisor and the NAFES staff have become fully operational in training and leading provincial and district team in the field and in bringing back highly valuable indicators to the central level - One important achievement has been the operationalization of institutional framework between central, provincial and district level in terms of planning and coordination. This resulted from setting up a process characterized by: District and provincial teams acquired new skills and experience in data collection and recording both qualitative and quantitative information useful to the project Provincial and district EG team can pursue the work in other target villages based on their own planning and send their results to the central level ethnic and gender team for compilation, analysis and reporting Both ethnic team and technical staffs have enhanced communication and coordination skills in working with ethnic (minority) groups and women Provincial EG teams use reporting format introduced by central level to report activities and findings Central EG team prepare reports and send to provincial level and relevant stakeholders for discussion Sensitive issues are increasingly acknowledged, discussed upon and recorded. Recommendations Inventory the ethnicity of each LFNC and LWU offices in each of the target district and require that ethnicity and gender are criteria for recruiting government representatives from the LFNC and LWU to ensure that they can bridge linguistically, culturally and in a gender sensitive manner with the target communities. If LFNC and LWU are not able to provide the required linguistic skills then these should be contracted separately. Ensure that individuals nominated to fill key positions are committed to collaborate with the SUPSFM project in order to avoid turn over and loss of trained staff during implementation. Train LFNC and LWU in ethnic awareness and participatory methodology and approaches to ensure that they have the sufficient skills to facilitate technical work, conduct consultation and gather and report data at community level Train LFNC and LWU about conflict resolution mechanisms to ensure that they fulfil their role in the grievance redress process. 29

38 Improve the coordination between district, provincial and central offices in terms of planning and also reporting activities implemented. Provide LFNC and perhaps to a lesser extent the LWU with logistical means to participate in the project as they lack access to basic equipment such as computer, printer, Internet connection, motorbike, etc. Involve the LFNC and the LWU in planning of project activities; both organizations have good knowledge of the field realities, distance to villages, seasonal accessibility, constraints in terms of language proficiency, production system, etc. Train LFNC and LWU fully in the safeguard framework and Community Engagement Framework to ensure that they are aware of all relevant guidelines and requirements. 4.3 Village Forestry Committeees and Village Development Committees SUFORD has established village and group-of-village (kumban) committees and organisations since its inception in 2003: these organisations include Village Forest Committees (VFCs), Village Forest Organisations (VFOs), GVFC and GVFO (whereby the GV stands for Group of Village). VFOs, are defined under PM Decree 59 and MAF 0204 (2003) on PFAs, while GVFOs were defined under DOF Notice 2154 dated 24/12/2004 and submitted in September SUFORD village forestry institutions consisted in VFO as an all-encompassing village institution to which almost all villagers in a village have signed up as members, while the VFC is a 3-5- person committee elected by the VFO. The village headman is an ex-officio member. Then the GVFC/GVFO is an organization with representatives from VFOs in all SFMA villages. This GVFC/GVFO is to enter into a Forest Management Agreement with DAFO and collaborate in SFMA Plan implementation and be in charge of sharing the revenue among all villages in the SFMA according to their respective Village Development Plans (VDP). To enhance ownership of the villagers in preparing village development plans, implementing, monitoring, evaluation and management of village development activities effectively, the Village Development Committee (VDC) chaired by the village chief has been established in 311 target villages in eight Production Forest Areas of 5 new provinces. Currently, there are 1,466 VDC members, among whom 296 are females, accounted for 20%. Committees charged with development fund management the VDCs have been more active since the VDFs/VDGs themselves require more meetings and actions. According to the Sub-FMA management agreement, the VFC would (1) organize work teams to be provided training by DAFO and which would participate with DAFO in formulating management and annual operation plans of the Sub-FMA and in conducting forest management operations implementing the management and annual operation plans of the Sub-FMA; (2) ensure that forest management and related work was done by the village work teams properly following the prescribed procedures and within the time period agreed to with DAFO; (3) oversee customary forest use by villagers within their respective village territories, formulate village rules for this purpose, and regularly monitor collection of various forest products and other customary forest-use activities, furnishing DAFO/FMTU an annual report of these activities; (4) disburse the annual funds provided by DAFO for conducting forest management operations and administration of the VFCs, providing an accounting of the funds to DAFO, and returning unused funds to DAFO; and (5) participate in annual timber sales and sharing of net 30

39 revenue from timber sales and hand over to their respective village administrations the share for village development. Main challenges identified during SUFORD AF implementation Ewers (2012) findings make it clear that VFCs exist in all SUFORD villages and are considered part of village administration in line with MAF Regulation on Village Forestry (No 535, 2001) however the VFO and the apex organizations GVFC/GVFO described in SUFORD Toolkit were not fully operational as they have few regular functions to carry out. All forestry work by DAFO was carried out with the VFC and village headmen of the villages that had the timber forest inside their territory; comparatively, village without timber within their territory were much less involved. Ethnic women s roles in forest committees have not been supported. Women are largely kept absent from all forest-related activities despite their interest in, and use of, forest resources both wood and non-wood. This fails to recognise the socio-culturally and economically important relationship that women have with forest and forest resources. Community members in ethnic villages can often not even name people in the VDC or VFC. In some communities, even the village leaders have to look into the project document to list members. In Attapeu and Sekong provinces, many newly appointed and VDC members were unaware of their roles and responsibilities; in one village VDC members were even not aware that they were sitting on the committee (Hinlat village, Sanamxay district, Atttapeu Province). The election of village administration has a significant impact on the VDC and VFC as elected positions are linked to formal political positions (village head, deputy, women union representative and elders association). Changes in the village mass organizations also end in changes in VDC and VFC membership and newly appointed leaders usually are unaware of their tasks and have low understanding about the whole project. In many cases the members had gone and were not even replaced! This strongly suggests that in reality, the committees are not properly functioning. In Poungsang village, Vangvieng district, Vientiane Province, the Khamu ask for equality in terms of participation in the VDC as resulting from the consolidation policy, Niou (Lao) and Poungsang (Khamu) have been consolidated (and now called PounKham) and the Lao chief manage both VD funds. There is not a single Khamu in the VDC of Pounglak village. Many informants interviewed complained that the Lao monopolize all functions. Achievements SUFORD has largely succeeded in its attempts to ensure that there is proportional representation of ethnic groups and women on the committees and organisations set up by the project. However, since the committees/organisations themselves lack clarity with regard to their ongoing roles and do not fully understand their rights and 31

40 responsibilities under the law, this increased representation of ethnic groups and women should be seen only as a starting point from which much supporting work is still required. Gender disaggregated village development planning was implemented under SUFORD and under SUFORD AF. SUFORD helped establish the principle of preparing separate lists of priority activities by women and men before merging these priorities to achieve a gender balanced final list. Recommendations Innovative ways of designing PSFM modalities are warranted for the SUPSFM, in particular since the SUPSFM has much broader objectives than timber harvest and includes indicators for an increase in land and resources under legal control and management of indigenous and local communities. Community empowerment requires organization and security of tenure. Sufficient time and support must therefore be provided to develop institutions that are legally viable and match the resource units in question (timber or plantations or NTFP etc) and where benefits can be shared with equity. As the Ewers report has shown, the VFO does not exist and should not be assumed to be a pre-existing mechanism for participation in SUPSFM initiatives. Only the VFC exists as a mandated ubiquitous village institution linked to the village administration. A variety of institutions with bylaws and internal rules for benefit sharing should be developed under SUPSFM in accordance with the forest zone it manages. Some may be village level and some may be supra-village. Benefits and rights will constitute incentives for villagers to take part in the sustainable management for carbon increase and livelihood co-benefits. The relevant attributes of the forest resources that are of importance for developing appropriate institutions comprise the legal categorization, which will require solving of the overlay and interplay of functional and legal categories presently found in Lao PDR; the nature and value of the resource units (timber, NTFP, grass, commercial fast growing species etc) that can be withdrawn by groups of people (whether for subsistence or for the market); and the natural richness of the natural endowment of the resource in question. 4.4 Benefit sharing from forest harvest revenues The possibility for villagers to benefit from the timber harvested in their land started with FOMACOP project, which ran between in Khammouane and Savannakhet provinces. The purpose of the project was to create a village forestry model, in which the villagers would govern their own land and its use. During FOMACOP the villagers themselves took care of harvesting and forest management, collected money from the harvestings and paid the government taxes according to harvested volumes. After FOMACOP ended in 2000, the harvesting has been transferred back to government s hands in all FOMACOP villages. 32

41 During SUFORD a new revenue benefit sharing system from timber harvesting was prepared (reg. no / MAF. 2002: Regulation on Establishment and Sustainable Management of Production Forest, ). According to this law, villagers would receive their share at SubFMA (SFMA) or village level. The village share was calculated as 25% of the difference between the floor price and the actual sale price. Seventy-percent of the additional revenue shall be shared between the following funds: Twenty-percent to the forest development fund, under Forestry Law, Art. 47; Twenty-five percent to the operation costs for implementation of annual operation plan; Twenty-five percent to the local development fund(s). This fund(s) shall be held in the village or group of villages account for village development activities to develop and improve the livelihoods of local people. These funds shall be spent according to relevant finance regulations and be consistent with development plans established by the village or group of villages and approved by the District Development Committee in coordination with DAFO. After being implemented for a few years this revenue sharing scheme was found to be flawed because the floor price and sale price were frequently very close together and as the sale price approached the floor price there was almost no revenue to share with communities. In 2012, a new presidential decree was approved (001/PM; Decree of The President of the Lao People s Democratic Republic pertaining to the sharing of revenue from timber harvested in the Production Forest Areas, ). This decree also passed through the National Assembly Standing Committee: 08/ST Decision Of The National Assembly Standing Committee pertaining to the sharing of revenue from timber harvested in the Production Forest Areas, 16/01/12). According to this new legislation, the benefit for the villages will be calculated from the total revenue (no longer from the net revenue). In the new system, the government will take 70% of the total revenue. The remaining 30% will be divided as follows: Thirty percent (30%) of the total revenue as the budget to support the forestry management, protection-conservation, and development activities, primarily the production forests, and the funds for the development of villages or the village groups bordered with the production forests. 1. First portion: Twenty (20%) percent as the trust funds for developing the forests and the forestry resources; 2. Second portion: Twenty (20%) percent as the trust funds for developing the production forest throughout the nation 3. Third portion: Twenty (20%) percent as the trust funds for developing the exploited production forests. 4. Fourth portion: Forty (40%) percent as the trust funds for developing the villages or village groups that are the agreement partners in the management of the production forests. A new regulation governing the implementation of PM decree 001 has been drafted and is expected to be piloted in 2013 and then finalized and submitted for formal endorsement. Implementation Challenges 33

42 SUFORD communities do not understand well about benefit sharing principles or their entitlements under the law. This lack of awareness has led to lack of accountability and in one case to misappropriation of funds. The new regulation governing implementation of PM decree 001 is expected to address this issue. SUFORD Toolkits and Manuals prescribed that the timber revenue was to be shared among all villages in a SFMA, but the villages in a SFMA do not constitute an organic unit and this inter-village sharing has proven impractical during implementation. The new law stipulates that revenue can flow either to individual villages or to a group of villages. Responsibility for managing timber sales was transferred during SUFORD from MAF to the Ministry of Industry and Commerce (MOIC). While MOIC has made some progress in developing systems for transparent and competitive log sales these approaches have not yet been widely disseminated and are note currently implemented uniformly across all provinces. Recommendations Increase community awareness of benefit sharing principles and entitlements under the law to ensure that they can claim what belongs to them. Set up monitoring mechanisms to ensure that funds are transferred to village level accounts in a timely and fully transparent manner. Continued support for MOIC to implement transparent and competitive log sales will be required in all participating provinces under SUPSFM. Support for developing verified chain of custody will also be needed. 4.5 Village development grant and Village Fund In SUFORD all villages including those villages 5 km from the PFA boundary received a village development grant of 8000 USD. This was scheduled to take place in two instalments: first US$3000 and then US$5000. All VDGs were transferred from the central level to the bank accounts of the target villages. 412 villages had released all VDGs of the US$3000 tranche. However, 64 villages out of 287 eligibly targeted villages had not released VDG of US$ 5000 tranche to their villagers as of December 2008 (the original closing date). The key reasons for late release of VDG were (i) lack of banking facilities in remote villages, (ii) changing from inappropriate planned activities to newly potential activities, and (iii) requirement to collect partly amount of the first instalment prior releasing the second instalment. By the end of October 2010, all target villagers had received their VDG of US$ The total amount of VDG released stood at approx billion LAK (USD 3.9 million). Of these, 90 % were given as loans to individual households (Report on Internal Review, 2011). These funds, which were intended to be issued as grants were converted at the request of villages (but also in conformity with national policies)_ into revolving funds. This pattern of converting grants to loans was identified during SUFORD. Unable to identify a skilled partner agency to facilitate the 34

43 development of microfinance institutions at village level, SUFORD AF discouraged the use of grant as revolving funds. As of September 2012, the total amount of VDGs released to individual households stood at approx. 28 billion LAK (Annual Report ). A total of 26,396 households in 412 villages have benefited from the scheme. SUOFRD promoted the establishment of Village Development Fund (VDF) in each village in order to secure the VDG, to establish a formal mechanism for managing timber revenue at village level and to extend the impact of timber revenue to a larger number of beneficiaries. VDF is a fund, which includes savings of the VDF members, village revenue (from timber) and external contributions, including collected VDG transferred by the SUFORD project. The project assisted in setting up the VDFs in four old provinces. 299 VDFs have been officially established so far. Some VDFs continue to function as revolving funds and a large portion of repayments from VDG recipients have been used to recapitalize the VDFs. As of September 2012, all together 299 VDFs have been established with 8,100 members. Total VDF capital was approx. 4.6 billion LAK. During SUFORD AF in the 5 new provinces, in order to improve livelihood of local villagers, reduce the pressure on natural resources, SUFORD provided VDGs for livelihood development and income generating activities (in the form of a draw down fund). As of 30 September 2012, all 310 target villages had received US$4000 each. Nearly 9.9 billion LAK was released to villagers; of whom 4% was directly allocated to VDCs for administrative costs. Financially, 92% of the remaining VDG were invested into food security related activities; 3 % for livelihood and Infrastructure; and 5% for SME enterprise development activities. 12,559 families received VDG; of which 5,283 (or 42%) self-identified as poor families. Poverty reduction is an indirect objective of the SUFORD project. There were two key ways in which poverty was reduced, first through distribution of village development grants and second through sharing timber revenue with the village communities. However, the timber revenue received by villages has been quite modest; so far so the main impact has come from the VDGs. To respond to the common question on how much the SUFORD project has contributed to reducing poverty in Laos, a study analyzed the impact of VDGs was conducted in 4 old provinces. The study found that household loans given using the village development grants coincided with moderate reductions in poverty in targeted villages. In 2009, at the beginning of the observation period, the proportion of poor households was almost the same among households that received and did not receive a loan, 29 % and 28 %, respectively. In 2012, it was found that among those households that had not received a loan, the proportion of poor households had dropped to 14%. Among those who had received a loan, the proportion of poor households was 9%. This suggests that the loans were able to accelerate poverty reduction. Ongoing Challenges faced by SUFORD AF The main problem experienced by the VDFs is that their efforts to develop a revolving fund are financially and institutionally unsustainable. The revenue earned from interest on loans is low and unless commercial microfinance institutions step in there is no adequate support structure for VDF. 35

44 The public sector institutions do not have the necessary professional skills to manage such schemes and commercial microfinance in Lao PDR is at a very early stage of development and is not yet able to meet the existing demand. The establishment of new revolving funds should therefore not be encouraged except in exceptional cases. In the future, if it is consider necessary to fund village investments through public sector schemes, the projects to be supported should be selected much more carefully. Recommendations To the extent feasible, the existing VDFs should be supported to become self-sufficient both institutionally and financially but in the absence of specialist support on microfinance this may be difficult. Ownership and management of VDF/VDG must be entirely with the villagers. DAFO signatures should not be required to authorize use of VDF fund., and villagers not DAFO should have the final say in what they do with their money. This may also be seen as part of a learning process for ethnic group villagers. All VDF funds transferred through DAFO or PAFO must be transferred to village accounts in a timely manner and all such transfers should be monitored at village, provincial and central levels Village bank account books must be properly updated (ex. Interest owing properly shown) and all such books held by villagers. Public notification meetings to inform funds status to all households must be held. Lengthy, complicated approval and fund release procedures must be simplified perhaps with the assistance of a consultancy. It would be important to create uniform and transparent practices for all provinces to use, which would be at the same time flexible enough to take into account the varying and sometimes difficult circumstances. The most efficient and reliable way would probably be to request the benefit sharing information from PAFOs in each province and ask them to provide the information on a quarterly basis, followed by random audit of selected SFMAs. It needs to be taken into account, though, that the timber revenue benefit sharing takes place earliest one fiscal year from harvesting. Also, to make sure that the full amount has reached its destination, it would be necessary to require DAFOs to inform SFMAs of the money that they have received within a specified time limit. A suitable time limit could be 3-4 months. In order to make sure that the information has been received and understood, it would be necessary for DAFOs to visit the SFMA or village and ask the village chief to fill a ready-made template of their meeting, which would state the amount of money that they have been informed of and the necessary steps that are required of them to access the funds. In many ethnic minority villages, it is likely quite difficult to require even the village chief to fill such a template, in which case the job should be delegated formally to an 36

45 independent and reliable partner (NPA representative, school official, contracted auditor) Application of safeguards measures SUFORD s implementation over two phases and some ten years has generated a number of lessons learned regarding the implementation of social safeguards. The first phase developed an Ethnic Group Development Strategy (EGDS) in 2002 for its provinces. These had a limited number of ethnic groups. As of 2009, the project has expanded into five new provinces with a much more diverse ethnic composition than the four older target provinces. SUFORD-AF Project Appraisal Document (PAD) includes a Project Implementation Plan where volume IV is a Village Development Operational Manual (Sep 2008). Part of the Manual contains a description of the Consultation Framework for Ethnic Groups. The consultation framework is included under the Village Development project component that constitutes a separate SUFORD-AF project component. The said Consultation Framework constitutes the Safeguard instruments of the project. The findings of a FINNIDA Mid-Term Review (Finnish Support to Forestry and Biological Resources: Country Report 5. Lao Peoples Democratic Republic, 2010) of SUFORD AF: Marginalized groups are recognized in the project design through an Ethnic Group Development Plan but little evidence of consideration during implementation and outcomes. (p. 9);... The project [SUFORD AF] contains an Ethnic Group Development Plan, though it is uncertain how this is to be applied and the GoL s commitment to it (p. 17). Marginalized groups During the project preparation an EGDP was prepared to ensure that ethnic minorities do not suffer negative impacts and they receive social and economic benefits appropriate to their culture and circumstances. At the time of the Mid-Term Review few field activities had taken place among the ethnic minority villages; implementation had mainly advanced in the better off and more easily accessible districts and villages populated predominantly by Lao and Tai-Kadai... (p. 21). It was also observed weak linkages between safeguard processes and other aspects of the project. Safeguard functions and responsibilities were not sufficiently integrated with technical processes carried out by PAFO/ DAFO at the local level, which limited the effectiveness of safeguard measures in ensuring full and meaningful participation of target communities. Mechanisms to monitor implementation of safeguard measures were not adequate, and gaps were often left unaddressed for some time. Safeguard assessment concluded that LWU and LFNC should have played a more active role in monitoring and evaluation; that neutral parties such as NGOs should also have participated in project monitoring, and that project monitoring indicators should have included those specific to safeguard compliance including on ethnic women. Recent field assessments also found that SUFORD project learned from lessons during implementation and took steps to address many issues mentioned above, under the initiative of the Ethnic and Gender Advisor hired by the project. Safeguard measures developed under the SUPSFM project incorporate the lessons learned and building on the improvement in safeguard performance in the final years of SUFORD. 37

46 Recommendations Strengthen mechanisms to monitor implementation of safeguards including clear indicators. Set up clear baseline in order to enable the measurement of project impacts and achievements. Provide a clear and practical consultation Framework for Ethnic Groups Refine the modalities of implementations of the Ethnic Group development plans Set up mechanism to ensure that poor households and vulnerable groups are not left aside but actively involved as beneficiaries in project activities Gender equity The principles of gender equity with respect to natural resource use, its management and decision-making, particularly in upland areas and among different ethnic groups, are quite varied. Different concepts of gender-specific rights and responsibilities have developed over time as a means whereby livelihoods may be sustained and cultural identity expressed. Under SUFORD, some 44% of target villages are either mixed Lao with other ethnic groups, or entirely other ethnic groups. In expansion areas the proportion of varied ethnic groups is much higher. Of these, many groups more numerous in northern provinces follow patrilineal, patriarchal social structures, such as Tai Dam, Hmong and Akha. Ethnic groups from southern provinces have typically more matrilocal or bi-lineal social structures. Types of labor inputs and agricultural tasks tend to be gender defined, while extensive data on gathering of forest products indicate that women tend to gather products for consumption, domestic use or local roadside sales, while men tend to use the forest for more raising cash. The type of ethnicity and social structure not only determines the degree of gender equity in decision-making over land, natural resources and their use, it also determines availability of adult male labor for the more heavy tasks in the seasonal calendar. Traditional land use is often regulated by the spirit world, and men are often the intermediaries between the natural and spirit worlds for key activities such as building a house or clearing land. Subsequent activities, which are more the domain of women, cannot continue until some key men's activities are completed. When a statutory legal framework of land allocation and land management policy overrides customary land and resource use, the focus of land use tends to shift away from the collective and cooperative to the individual and household. This has gender equity implications for the project, both in terms of overall project structure, in community consultation methodology, and in activity planning. It was a lesson learned under SUFORD, that if the project ignores existing customary use of land and forest, it would not result in significant cooperation from villages. One reason why this often occurs nonetheless is that project staff tend to talk only to village authorities, who are usually men, and do not take into account the differences between men and women of land use. This is particularly important in villages of mixed ethnicities, where hamlets have been consolidated into one larger village, regardless of the differences in culture, language and natural resource use. Furthermore, ethnic group women tend to be both less 38

47 familiar with Lao language than do men as well as less literate, often resulting in women's views being completely marginalized or ignored, as was experienced in SUFORD. The SUPSFM project requires local teams to include persons with familiarity over different languages, as well as training on gender equity sensitivity as part of the community engagement process. The Lao Women's Union is the mass organization with the best field representation and access to members with a broad language base, and will be integral to field activities in project districts. Activity planning is also typically undertaken with male village leaders, not taking into account women's labor contributions or opinions of preferred options, nor limitations on women's involvement in certain activities. For example, marketing exchanges beyond the local level are predominantly male activities, resulting in financial management often remaining out of women's hands and bankbooks only in the male household head's name. A lack of equity may also be reflected in tenure instruments, which tend to cite the male household head on documents rather than husband and wife. Gender equity is statutory under Lao law, and if property or land has entered the family through the wife, or if a husband and wife have cleared new land together, then both names must be on the tenure document. Given this situation, gender-responsive training and development programs, particularly for field staff, will be necessary. The project structure will also need to reflect gender equity in data gathering and management, time allocated for community discussions, and agreement process for project-supported activities. SUFORD Project concept papers, give high importance to gender integration and mainstreaming and ensuring that women benefit from program activities. Nonetheless, when we look at gender mainstreaming at project organization level we see that it is rather left on the sidelines than being brought into the mainstream, let alone conceptualizing that the mainstream should be changed by virtue of women s equal rights to participate in it. We also see that there are inconsistencies with the project-related documents, which spill over into all aspects of the project s work program, including the way activities are planned, implemented and monitored. The Monitoring and Evaluation (M&E) system also is not adequately geared to monitoring women s use and benefits of project outputs, and there are no adequate indicators to show impacts on women s improved abilities to exercise their economic, social, cultural and political rights. Recommendations Train project stakeholders including field staff, LWU, LFNC, NPAs about gender equity and gender mainstreaming Ensure that project will empower women as direct beneficiaries and avoid their marginalization in financial management, tenure issues, etc. Set up a culturally and gender suitable interface; this means conducting activities in local languages and providing enough time to ensure that women are fully involved Capacity of project beneficiaries Given that a much higher proportion of target beneficiaries under the SUPSFM project will be drawn from a broader number of ethnic groups, and that PFA locations will include more 39

48 upland areas, it must be recognized early on that the project will be working with communities whose capacity to interact with it will need more time and strong communication methodologies. Evaluations of SUFORD implementation identified the need to better explain the concept of PSFM, to allow communities to either opt in or opt out of activities, and to understand the consequences of restricted access to their customary forest and upland cultivation areas. An effective system used by FOMACOP is to have all concerned district staff participate in the training of villagers in a model village. This gives the concerned district staff an opportunity to practice as trainers before they are sent to the villages assigned to them. This system is especially important for district staff members who lack experience as trainers. Under the SUFORD-AF project, the VD teams in 9 project provinces had conducted 507 capacity building evens of 488 planned events (or 104%) from October 2010 to October Total of 1,927 training days were delivered to 8342 participants with 31% are female (Data gathered from VD Quarterly and Annual Reports from ). Main trainings were village administrative and financial management, technical extension services, producer groups and small business management, on-the-job training on VDF management, and monitoring and evaluation. Capacity building activities One of the most important lessons learned under SUFORD is to improve project recognition of people's existing livelihood activities which pre-date national preparation of PFA maps and boundaries. Most importantly, the capacities of field teams must be enhanced to meet the higher demand of communicating, discussing and planning with communities with limited communication skills with Lao speakers, and may often have experienced adverse consequences in their interactions with local authorities. Additionally, traditional customary land use practitioners may not accept the extension opportunities available under the project during the lifespan of the project especially in the more remote upland areas. Years of experience in Laos has demonstrated the reluctance of subsistence farmers to innovate or engage in the broader monetary economy. In more traditional communities emphasis will be placed on adding crops with greater value (both monetary and nutritional) to existing rotational agriculture practices the focus will include familiar products (particularly NTFPs), reforestation, and tenure strengthening, then the possibility of community cooperation can be enhanced. Challenges In terms of capacity building activities, the past experience suggests that ethnic villagers are seldom able to take advantage of training in the form of lecturing. Training was not usually provided by experienced trainer, and it often took the form of top-down lecturing of participants; training material not provided or not adapted to the capacity of participants. Recommendations Capacity building is best approached through learning by doing. 40

49 Ideally, all capacity building activities should occur at community level to ensure that a maximum of participants can be involved, especially women who lack exposure and are less eligible to leave the village. Training should also take place in local languages. Training should be practical and participatory avoiding lecture / top-down approach that often prevailed during the SUFORD-AF project Land acquisition/resettlement While it is true that SUFORD/AF has not induced resettlement or relocation of any villages, it does not mean that resettlement or village consolidation processes initiated by other agencies and projects have not affected SUFORD financed PFAs and SFMAs. Several thousand Hmong refugees were repatriated from Thailand in 2010 and many of the returnees were resettled in Pak Bueak (Bolikhamxay). In Kaleum District (Sekong) dam construction and mineral exploration caused access restrictions, removal of timber and the relocation of at least nine ethnic group villages that were supposed to be included under SUFORD AF, while one village is to be resettled in Lamam District. In Kaleum even the district capital will have to be moved. While in general SUFORD areas to date have not been badly affected by resettlement, this does not mean that SUPSFM is immune. District authorities are also inclined to redraw village and kumban boundaries for consolidation purposes and to carry out Lao People s Revolutionary Party (LPRP) policy on creating larger development sites. Recommendations Set up a clear typology of all target village for the project to acknowledge the status of each community (stable, planned to be resettled, resettled, etc.) and exclude villages that have been relocated in the last 4 years and villages slated for consolidation or resettlement in the coming 4 years (consistent with World Bank financed Poverty Reduction Fund (PRF) project in Lao PDR) Ensure that all project stakeholders are made aware of WB resettlement policies also the Lao government policies on compensation Grievance and conflict resolution mechanisms According to the EGDP, three distinct cases where complaints mechanisms are needed (i) disputes within the villages (ii) disputes between the village and a private party, (iii) disputes between village and government authorities. With respect to the first case, the project planned to promote the use of traditional institutions for conflict resolution. Suggested approaches would include relevant project guidelines and relevant staff will be trained accordingly. The approach provided in the guidelines would consider the option to engage District authorities, the Land Management Authority or the LFNC for mediation. With respect to disputes with private sector, SUFORD would be able to provide limited support to ethnic villages by training the DAFO and LNFC staff to assist ethnic villagers in lodging formal complaints. Assistance would cover technical issues as well as language. Constraints 41

50 LFNC was not made aware of its crucial role in conflict resolution both in terms of language facilitation and helping villagers to lodge formal complaints. In fact, there was even no formal mechanisms to acknowledge conflicts or grievance Actions taken In order to determine if any remaining conflicts or problems, or whether the project had any negative impact on local communities, and in absence of a better alternative or extensive resources need to undertake complex impact assessments, a simple checklist was devised which could be used by LFNC and LWU representatives with GVFO and VFO members. The list consisted in 6 main areas of investigation including (1) facilitation and representation; (2) social issues; (3) resource exclusion; (4) benefits and timber revenues; (5) material; and (6) information provided. A last section is devoted to villagers concerns or demand. The list allowed recording key issues/ conflict emerging in the sub-fma areas and the impacts of the sub-fma management plan and allowed opening up a discursive space and record Village Forestry Committees perceptions, ideas and concerns. In each Sub-FMA, a report has been produced for each meeting summarizing the main findings of the meeting with a special focus on the attendance, the quality of the facilitation, the degree of participation and also on the impact assessment conducted. This is particularly relevant since the project aims to maintain and enhance traditional resource use rather than to exclude or prevent it. A database of critical issues that have been prioritized has been produced and it has been agreed that the DOF will directly contact the relevant stakeholders at provincial level to discuss about resolution mechanisms for the conflicts listed during the meetings. It should also be noted that in parallel to SUPSFM the Forest Carbon Partnership Facility (FCPF) would be financing the strengthening of national conflict resolution mechanisms. Efforts between projects will be closely coordinated and the World Bank social safeguards team based in Vientiane will facilitate coordination and facilitate the development of a uniform approach to resettlement and village consolidation across the Bank portfolio. Opportunities: LFNC & LWU grassroots voices reach central level: Clear tools are prepared by central EG team and to allow capturing oral material including villagers voices, perceptions, concerns and relevant issues (in collaboration with FCPF and other WB projects). Provincial and district EG Team were increasingly skilled in capturing and recording oral material and using various tools and methodologies Clear indicators about status (gender/ ethnicity/ socio economic profile) of project beneficiaries were made available Discursive space have been opened during meetings allowing peoples concerns to be acknowledged and recorded EG team insisted on quotas to ensure women, poor and ethnic minorities participation during interviews or activities EG team acknowledged key issues such as change of beneficiaries, conflict over the land, etc. Challenges Opportunity for public expressions of dissent is still quite limited in Lao PDR; 42

51 This situation is not expected to change in the near-term but in the medium term initiatives to incorporate mass organizations and civil society participants more fully into project activities is likely to improve project performance and provide training opportunities for a next generation of leaders Although difficult to implement in practice it will be important to coordinate and facilitate dialogue among SUPSFM support partners (LWU, LNFC, CSOs at provincial level) and participants in the Dedicated Grant Mechanism. Recommendations Empower the LFNC as a key actor in grievance redress mechanisms from community level to district and province up to central level. Raise awareness of LFNC and other project stakeholders about conflict resolution mechanisms Involve LFNC in monitoring grievances at community level Enhance LFNC skills in capturing and recording oral material and supporting villagers in fill up grievance forms. 4.6 Participatory Sustainable Forestry Management PSFM The methods used to monitor progress with forest management planning under SUFORD consisted mainly of quantitative assessment. Keeping track of how many agreements were signed and how many Sub-FMA plans were completed left out any measure of the quality of the interactions and the breadth and depth of understanding among community members. Especially among Ethnic groups there were clear indications that planning required more time and a more sustained dialogue to reach consensus especially the most marginalized groups. It is now widely accepted that project beneficiaries from ethnic groups were not given sufficient opportunities or support to fully participate in sustainable forest management planning and in developing a shared understanding of the terms of forest use. For instance, field surveys have concluded that some ethnic communities did not have sufficient chance to negotiate on the extent of production forest areas within their village boundaries even though they rely heavily on rotational upland cultivation for livelihood. There is no evidence that access restrictions have been imposed under SUFORD but SUPSFM will have to revisit the mapping process and selectively apply elements of the newly developed Community Engagement Framework to ensure that all communities are able to redress remaining doubts and lingering concerns. Recommendations Ensure that local authorities are involved in participatory forest management to ensure that customary land tenure is taken into consideration. Provide time at community level to implement all project activities Define clear steps to be followed by the technical teams and empower the community by presenting the whole process including all steps. Avoid top down approach and implement grassroots participation at community level Traditional rotational swidden cultivation is a sophisticated, sustainable agricultural system that can make a significant contribution to local food security. Local farmers must be allowed to employ their traditional rotational farming methods on those lands 43

52 that are zoned for agricultural production. Care must be taken during village forest planning to ensure that sufficient land is available to allow appropriate fallow periods. High Conservation Value Forest (HCVF) SUFORD defines HVC6 forest areas as areas critical to traditional cultural identity of local communities. The concept of sacred forests serves as a powerful sanction against cutting and burning forests of high conservation value. This notion refers to forest areas, which are believed to be inhabited by powerful spirits, and, therefore, not cleared, burned or cultivated by the local population. Although common among both the northern, central and southern groups, this belief and the accompanying restrictions against cutting and burning such forests appear to be most strongly upheld among the groups in the south largely because these groups still tend to live in their homelands and are less penetrated by modern Lao society. Indigenous communities/ethnic groups are often shy to talk about their spirit beliefs and be reluctant to indicate where there are sacred grounds, spirit forests, cemetery forests and so forth. Culturally significant areas fall under the High conservation Value Areas number 6 in the forest management plans. SUFORD is committed to inventory and preserve those areas and is aware that in village spirit forests it must carefully monitor what happens to these spirit forests from then on, since these forests are often full of very valuable large trees and inroads are constantly attempted to make deals with local people. Challenges In some provinces HCV 6 areas were not inventoried and not mentioned in the forest management plans. This needs to be remedied through culturally appropriate means and protective measures need to be introduced to avoid any losses in these culturally significant areas. Outsiders working in local communities should show greater sensitivity to the impact of their presence upon the need to conduct ritual ceremonies, and help to meet the costs involved. Currently, in most cases involving outsiders, ritual compensation, perceived as fundamental to maintain harmony and community well being, is never taken into consideration. Measures taken During sub-fma meetings gathering GVFO in 4 sub-fma in Sekong province, the ethnic and gender team have successfully inventoried over 80 HCV6. The HCV6 areas including ceremonial sites, caves, forest cemetery, Buddhist monuments, etc. the information was provided to the national forestry consultant and integrated in the management plan. During monitoring visits in Sekong province, many village informants explained that the fundamental role of community rituals must be preserved and validated. Such rituals are critical to communities, ensuring community peace, harmony and well being, such as the annual ritual to honor the spirit of the land, (conducted in a holy area preserved by the whole community), or the spirit of the forest, to guarantee health and peace, be preserved and validated. Communities should be guaranteed the right to manage their 44

53 traditional sacred place, including sacred forest, so that these critical ritual events can continue to be observed. Outsiders working in local communities should show greater sensitivity to the impact of their presence upon the need to conduct ritual ceremonies, and help to meet the costs involved. Currently, in most cases involving outsiders, ritual compensation, perceived as fundamental to maintain harmony and community well being, is never taken into consideration. Recommendations Inventory all culturally significant areas in each target community and all participating provinces Record customary rules defining the access of those areas and the ritual requirements or compensations that must be provided in case of impact Raise staff awareness of customary significant areas SUPSFM to support recording, disseminating and enforcing local laws and community standards concerning significant customary forest areas to ensure that outsiders will implement accordingly Land tenure Many ethnic groups practice a system of land use and resource management, which is uniquely adapted for upland areas. This has developed over generations as part of traditional ways of life, and is underpinned through ritual and customary practices. This section looks at how women s land and property rights are established and maintained under these customary or traditional tenure systems. Recent field surveys have pointed out that village resettlement and merging, the takeover of land for concessions, ongoing policies to restrict villager access to land and timber resources plus the lack of adequate land tenure arrangements in the ethnic group villages with upland cultivation is resulting in confusion over forest and agricultural land management in some project areas and undermining both customary systems, as well as the statutory systems which are supposed to replace them. PSFM must be predicated on adequate land tenure systems whereby villagers with upland rotational cultivation are supported and assisted to have communal tenure over enough agricultural land to ensure their livelihoods. Recommendations SUPSFM should improve the consultation processes through adoption of the enhanced participatory land use planning (PLUP) methodology developed by MAF and MONRE jointly in 2009 Integrate gender sensitive consultation and data management; Prepare and financially support activities which give equal weight to men and women's land and natural resource use; 45

54 Improve local communities enforcement capacity to prevent villagers and migrants opening new slash-and-burn areas (conversion of primary forest) Monitoring and evaluation As previously mentioned the mechanisms developed under SUFORD to monitor project implementation were not adequate, and gaps were often left unaddressed for some time. Many formats prepared by central level that would have been useful to monitor participation of ethnic minority, women and poor were simply not shared until late in the project cycle. This resulted in the lack of proper indicators to measure to which extent poor, women and ethnic minority participated in project activities. Safeguard assessment concluded that LWU and LFNC should have played a more active role in monitoring and evaluation; that neutral parties such as CSOs should also participate in project monitoring, and that project monitoring indicators should include those specific to safeguard compliance including on ethnic women. Recommendations SUPSFM should set up both internal and external monitoring mechanisms. Internal monitoring of the actual implementation against the planned activities, time frame, budget and entitlement that will be done on an on-going basis throughout the duration of the project and should involve village authorities in this process. Qualified staff based in Technical Service Centers (TSCs) should be responsible for implementation of the investment activities that involve land acquisition and/or resources access restriction. An appropriate agency and/or an independent qualified consultant should conduct external monitoring once a year. 5 DESCRIPTION OF PROJECT BENEFICIARIES/ AFFECTED PEOPLE The main project beneficiaries will be the communities involved in the implementation of PSFM in PFAs and other forest categories in the forest landscapes covered by the Project. They will benefit from a diversity of expanded livelihood opportunities. Villages located within PFAs that have significant forest stocks will receive direct and tangible benefits from employment in timber production and share of timber revenue. In addition, they and those that do not have well stocked natural forests or access to such resources will receive specific benefits through opportunities for expanded livelihood support. Vulnerable communities, ethnic groups, and women will receive priority attention in project design and participatory processes. Management of forests at landscape scale will expand the coverage of beneficiaries outside the scope of PSFM in PFAs. As forest landscape management will potentially include other categories of forest areas, such as conservation, protection, and village-use forests, the number of villages that will benefit will include those outside PFAs but within the other forest areas in the forest landscape. However, this will be realized only when FLM is implemented in the next phase, as in the current phase the Project will focus on concept development and application at the FLM planning stage. 46

55 The Government and its institutions will also be the main project beneficiaries. District, province, and national forestry and other relevant government institutions and their staff will receive training and support from the Project. The Government will further benefit from improved quality of forest management, and improved rent capture and revenue collection. 5.1 Coverage of Field Implementation There are 34 PFAs with a total area of 1.91 million ha, which are located in 9 SUFORDsupported provinces in Central and Southern Lao. However, SUFORD provided support to only 16 PFAs with a total area of 1.28 million ha out of the 34 PFAs. The Project will continue to support selected activities in the 16 PFAs covered by SUFORD, but will expand PSFM implementation to cover all 34 PFAs, while adding 7 more PFAs with a total area of 0.39 million ha, which are located in 3 Northern Lao provinces. The Project will thus support the implementation of PSFM in a total of 41 PFAs with an aggregate area of 2.30 million ha. Table 1 lists the 41 PFAs and provides some relevant information about them. Table 4: Districts comprising the PFAs to be supported by the Project Official area, ha FMAs (district) Province PFA name District names Pioneer PFAs of SUFORD ( ) Champasack Pathoumphone 27,043 1 Pathoumphone Champasack Silivangveun 37,590 2 Bachiang, Sanasomboon Khammouane Dong Phouxoi 147,406 3 Mahaxai, Xaibouathong, Xebangfai Khammouane Nakathing-Nongkapat 105,416 3 Boualapha, Mahaxai, Xaibouathong Salavan Lao Ngam 74,580 4 Khongxedon, Lao Ngam, Salavan, Vapi Salavan Phou Talava 61,772 3 Salavan, Taoi, Tumlane Savannakhet Dong Kapho 51,650 3 Phalanxai, Phin, Xonbouly Savannakhet Dong Sithouane 150,900 2 Songkhone, Thapangthong Expansion PFAs of SUFORD ( ) Attapeu Ban Bengvilay 37,862 1 Sanamxai Attapeu Nam Pa Huayvy 75,037 2 Sanxai, Xaysettha Bolikhamxai Phak Beuak 112,756 5 Bolikham, Pakkading, Paksan, Met, Vientong Bolikhamxai Phou Pasang-Punghok 47,657 1 Bolikham Vientiane Nongpet-Naseng 68,725 4 Feuang, Kasi, Met, Vangvieng Vientiane Phou Gneuy 100,228 4 Feuang, Met, Meune, Sanakham Xaiyabouly Phou Phadam 95,224 3 Paklai, Phieng, Xaiyabouly Xekong Huaypen 89,532 3 Kaleum, Lamam, Lamman Expansion PFAs in 9 SUFORD provinces Attapeu Nam Kong 88,559 4 Phouvong, Sanamxai, Sanxai, Xaysettha Bolikhamxai Huay Sup-Namtek 8,590 3 Bolikham, Thaphabath, Paksan Bolikhamxai Phou Tum 12,179 1 Bolikham Champasack Nongtangok 58,000 2 Mounlapamok, Sukuma Vientiane Houay Siat 36,479 2 Kasi, Met Vientiane Phou Phaphiang 36,107 2 Saysomboun, Vangvieng Vientiane Phou Samliam 44,780 2 Hom, Saysomboun Xaiyabouly Huay Gnang 36,717 1 Hongsa Xaiyabouly Kengchok-Nam Ngim 114,943 2 Phieng, Xaiyabouly Xaiyabouly Pha Nang ngoi 29,144 2 Ngeun, Xienghon Xaiyabouly Pha Nangnuane 48,174 2 Khop, Xienghon 47

56 Xaiyabouly Phou Phadeng 16,393 1 Botene Xekong Dakchang 38,461 2 Dakcheung, Kaleum Xekong Dakmong 5,028 1 Dakcheung Xekong Namdee 11,760 1 Dakcheung Xekong Phoukateum 21,338 1 Kaleum Xekong Prong 16,990 1 Dakcheung Xekong Xienglouang 5,396 1 Dakcheung Expansion PFAs in Northern Lao Bokeo Phouviengxai 44,894 1 Pha Oudom Bokeo Sammuang 78,699 2 Houaysai, Ton Pheung Louangnamtha Nam Fa 24,649 1 Long Louangnamtha Phou Led Longmoun 20,150 2 Nalee, Viengphoukha Oudomxai Namnga 98,786 3 Beng, Nga, Xay Oudomxai Namphak 52,118 3 La, Namor, Xay Oudomxai Saikhong 69,791 3 Houn, Nga, Pakbeng 12 provinces 41 PFAs 2.30 M 63 Table 5: SUFORD-AF district and Expansion districts 5 Province SUFORD-AF Districts Expansion Districts Total Sub-FMAs Attapeu Bokeo Bolikhamxai Champasack Khammouane Louangnamtha Oudomxai Salavan Savannakhet Vientiane Xaiyabouly Xekong Total Demographic data The SUPSFM project will target 983 villages in 59 districts in 12 provinces. According to the Forest Inventory and Planning Division (FIPD), the target population is estimated around 543,794 people. Khammouane province comes first in terms of number of village (162 target villages), followed by Sayabouly (156 villages) and Vientiane Province (131 target villages). Louang Namtha is the smallest province both in terms of target villages (8 villages in 2 districts) and target population (2,566 people/1,294 women). Table 6: List of SUPSFM Project target provinces, districts and number of target villages 5 Note: Provinces with shading are original provinces. No village livelihood grant will be provided except for the 2 expansion districts in Champasack. However, the villages in the original provinces are entitled to submit forest restoration proposals for funding by the Project. 48

57 Province District names Number of Population Female Villages Attapeu 4 Phouvong, Sanamxay, 49 33,549 17,707 Sanxay, Saysetha Bokeo 3 Houayxai, Meung, 34 10,339 4,995 Phaoudom Bolikhamxay 5 Bolikham, Bolikhan, 52 42,919 20,358 Pakkading, Paksan, Viengthong Champassak 4 Bachiang, Pathoumphone, 89 55,576 27,888 Sukuma, Xanasomboun Khammouane 4 Boualapha, Mahaxay, ,480 No data Xaybouathong, Xebangfai Louangnamtha 2 Long, Nalae 8 2,566 1,294 Oudomxay 6 Houn, La, Namor, Nga, 44 18,599 9,042 Pakbeng, Xay Saravane 6 Khongxedone, Laongam, 93 46,057 23,120 Salavan, Taoy, Tumlan, Vapi Savannakhet 5 Phalanxay, Phin, 78 37,451 18,800 Songkhorn, Thaphanthong, Xonlabouli Vientiane 8 Feuang, Hom, kasi, Met, ,937 46,497 Meun, Sanakham, Vangvieng, Xaysomboun Xayabouly 7 Boten, khob, Ngeun, Paklai, ,577 60,284 Phieng, Xayabouly, Xienghone Xekong 3 Dakcheung, Kaleum, 87 27,744 13,672 Lamam 12 provinces 59 districts 983 villages 543, , Luang Namtha Province The mountainous Luang Namtha province has an area of 9,325km2 and is located in the northern Lao PDR. The province shares borders of China (140km), Myanmar (130km) Oudomxay Province (230km) and Bokeo Province (100 km). The Mekong River constitutes the NW border of the province. There are three large rivers that drain westwards/southwards into the Mekong: Nam Tha, Nam Pha and Nam Long. The province is divided into five administrative districts, namely Namtha, Sing, Long, Viengphoukha, and Nalae. Luang Namtha Province is a center for commerce between China, Laos, and Thailand Bokeo Province Bokeo province locates in the northwestern part of the Lao PDR, and shares border with two neighboring countries and 3 other provinces as follows: On the west with Thailand forming a distance of 145 Km and with Myanmar 98 Km; with Luangnamtha province on the northeastern part (100 Km), with Oudomsay province on the eastern part (100 Km), and with Sayabouly province on the southern part (35 Km). The mountainous area covering 70% of the total area of 619,600 ha forms most of the landscape. The province comprises 5 districts, namely Houaixai, 6 The amount of female excludes the female population from Khammouane province. 49

58 Tonpheung, Parktha, Meung, and Phaoudom, in which the last district has been included in the national list of 47 poorest districts. This is a home of multi-ethnics where 13 different ethnic groups living together, such as Khmu, Leu, Lao Hmong, Lamed, Lahou, Youan, Iumian, Tai, Samtao, Akha, Phounoi and Thaineua. Based on the statistic provided by the Provincial Department of Planning and Investment in 2010, Bokeo has a total population of 158,638 people (79,516 are women) living in 27,606 households. Tonpheung district situates 52 Kilometers away from the provincial city covering the total area of 715,000 ha. The district comprises of 50 villages, grouping in 9 development clusters and 1 large development village (Namkeung-kao). The total population is 29,748 (13,219 women, living in 5,123 households. Paddy rice cultivation is the main occupation of the population, while livestock raising and planting of other crops are other options for their additional income generation. In Tonpheung district, the development of tourism sector is currently the main focus, for instance the integrated tourism development project operated by Dok-nguikham Company Ltd., and a Souvannakhom tourism site where a large Buddha statue existed. The district shares the western borderline with Thailand forming a distance of 45 Km and with Myanmar 44 Km. Phaoudom District The district locates 71 km away from the provincial capital in the southern direction. The mountainous landscape covers 65% of the total area of 1,579,000 ha. The total population of 38,359 people (19,326 women) comprise of different ethnic groups, including Khmu 35.9%, Lamed 34.8%, Lao 11.2%, Lue 10.3%, Hmong 5.3%, Taidam 2.2%, and others 0.3%. The population density is 24 person/km2. Houayxai District is the municipal district of the province. With a total land area of 1,860,500 ha, the mountainous landscape covers the largest part. The district administrative arrangement is divided in 14 development clusters, comprised of 89 villages and 10,761 households. From the total population of 151,156 people, more than half are women counting at 74,819 people. The district shares borders with other districts, provinces and neighboring country: with Tonpheng and Meung districts on the northern side; with Parktha and Phaoudom districts on the southern side and with Luangnamtha province (Viengphoukha district) on the eastern side and with Thailand on the western side Oudomxay Province Oudomxay Province is located in the center of mountainous northern region of Lao PDR. It covers a total area of 15,370 km sq. Mountain land with numerous watersheds, accounts for 85% of this area, and there are about 45,000 hectares of agricultural land lying in five main plains. An estimated 90% of the mountainous area is still forested. Total population is , with density of 15 persons per km2 for the whole province, ranging from 7 in Namo and 29 in Pakbeng. There are 7 districts and 277,953 people divided into 14 ethnic groups (Khamu, Hmong, Samtao, Leu, Tai, Lamet, Akha, Bit, Hor, Mien, Kong, Sat, Phusang and Yang). A large proportion of population has a tradition of rotating swidden cultivation and more than half of the population (57%) is below poverty line. Oudomxay is one of the major opium growing areas of the country, 1/3 of villages grow opium in upland farms. According to the Justice Provincial Department, the main issues pertaining to justice are break of loan agreement, land mostly inheritance dispute and divorce. 50

59 5.3 Ethnicity profile With a population of over seven million, Laos is the most ethnically diverse country in mainland Southeast Asia. As is the case elsewhere in Southeast Asia, the main socio-economic division in Laos is between upland dwellers and inhabitants of the lowlands. This dichotomy summarizes roughly the division between Tai societies (Buddhist, paddy rice growers, literate) and those who are animist, illiterate, egalitarian and practicing swidden agriculture. However, such a dichotomy risks over-simplifying very complex cultural configurations. The ethnic Lao are culturally and politically dominant and make up about half of the population. The term Lao is a political notion and every citizen is designated this label, which refers to political citizenship. The population of the Lao PDR consists of 49 ethnic groups (with 160 sub-groups) and is classified into 4 ethno-linguistic groups, namely Lao-Tai, Mon-Khmer, Hmong-Iumien, and Sino- Tibetan. In reality there are many more ethnic groups in the country, some estimates state that there are as many as 236 (Chamberlain, 1995). Table 7: Ethnic classification in Lao PDR Ethnolinguistic superstock Mon-Khmer (Khamuic, Palaungic Katuic, Bahnarique and Vietic sub-groups) Lao-Tai (Tai Dam, Deng, Neua, Khao Sek, Lao) Hmong-Mien (Miao-Yao) (Hmong Khao, Mien, Yao) Sino-Tibetan Tibetan-Burmese (Akha, Lahu, Phounoy, Lao Seng) Chinese Hor Total: 49 No of % of Poppulation Groups % % 2 7.4% 7 2.5% 0.2% Many ethnic groups living in Laos are in fact transnational minorities that are also found in neighboring countries. This is the case for many Sino-Tibetan, Hmong-Mien and Mon-Khmer groups, and also for the ethnic Lao majority (there are more than 20 million ethnic Lao living in north-eastern Thailand compared to 3 million who live in Laos). The multi-ethnic Lao people enjoy solidarity and equal rights before the law. Article 8 of the 1991 Constitution presents the Lao State as multi-ethnic and forbids discrimination based on ethnicity: The State pursues the policy of promoting unity and equality among all ethnic groups. All ethnic groups have the rights to protect, preserve and promote the fine customs and cultures of their own tribes and of the nation. All acts of creating division and discrimination among [or] between ethnic groups are forbidden. The State implements every measure to gradually develop and upgrade the economic and social level of all ethnic groups SUFORD 51

60 During SUFORD ( ), 58% of the target communities belonged to Lao-Tai linguistic family; mostly Lao and Phouthay ethnic group. In the 4 provinces initially targeted by SUFORD, a great majority of ethnic minority belonged to Katuic speaking groups. About 1.3 million people living in Thailand, Cambodia, Laos and Vietnam speak Katuic languages; the vast majority of which (more than a million) belong to the Kui-Bru (West Katuic) subgroup, living mostly in eastern Thailand and Cambodia. The greatest diversity of Katuic languages lies in Saravane and Sekong provinces and adjacent border areas of Vietnam. Katuic speaking groups of the Mon-Khmer accounted linguistic family accounted for 14% of the villages and about one third were ethnically mixed; this means that there were both linguistic family (Lao-Tai and Mon-Khmer). Katang was the second most important group found in the target area with 74,081 people (12.2%) and altogether with ethnic Lao and the Phoutai, the only Mon-Khmer group to be found in all targeted districts. Phoutai come third with 60,363 people (9.9% of the population). Makong come fourth with 27,484 people (4.5% of the population) and are found in 16 districts. In fact, Charouy and Chari groups found in Khammouane province are included under Makong in the 1995 census. Finally, Xouay come in the fifth position and are found in 17 out of 18 target districts SUFORD AF Moving from SUFORD to SUFORD-AF, the project has shown an increase in cultural diversity in the SUFORD-AF provinces. The ethnic groups under SUFORD and SUFORD-AF comprise Harak (Alak), Tarieng, Tri, Souay, Brao, Khmou, Hmong and Mien and others. Mon-Khmer accounted for 28% in SUFORD to 40% in SUFORD AF. SUFORD-AF differs from the original SUFORD Project due to the increased cultural diversity of the villages in the Project areas. The new project provinces and districts vary in social characteristics: predominantly Lao closer to the river and moving eastward decreasing irrigated rice cultivation and increasing shifting cultivation and to the poorest villages located on remote upland locations. Villages are generally organised along ethnic lines, though in some cases larger villages will consist of more than one ethnic group inhabiting different hamlets or neighborhoods. The Lao government s resettlement programs introducing new groups in existing villages or establishing new villages in PFAs (e.g. in Bolikhamsay) constitute a new and emerging challenge. Increased cultural diversity in the new project provinces generates increased challenges. The risks and issues concerning ethnic groups and the project stem from the considerable variation in terms of social organization, culture, land use practices, food security, Lao language competency, resource access, gender roles and participation in local development planning processes. Many ethnic groups are also more vulnerable and liable to risks and challenges such as (a) potential changes to traditional & current land-use practices, (b) cultural forests, (c) Lao language, (d) weaker capacity of particular local communities to participate in development activities, (e) weak capacity of PAFO & DAFO staff to work with vulnerable ethnic groups, lack of language skills, gender and cultural sensitivity, and (f) lack of adequate attention on the part of government programs to the traditional practices of ethnic communities, especially in relation to shifting cultivation. 52

61 SUFORD AF SUFORD SUPSFM project beneficiaries in 3 new provinces There is an increased ethnic diversity from SUFORD (Lao-Tai and Mon-Khmer), SUFORD AF (Lao-Tai, Mon-Khmer and Hmong-Iu-Mien) and SUPSFM (Lao-Tai, Mon-Khmer, Hmong-Iu-Mien and Sino-Tibetan). One major difference is the inclusion of ethnic Sino-Tibetan linguistic ethnic groups, which are populating certain areas in Luangnamtha and Oudomxay. Lao-Tai reduces from 58% of target population in SUFORD to 48% in SUFORD AF new target villages to 14% in SUPSFM (Oudomxay and Louangnamtha). In SUPSFM target area (Louangnamtha and Oudomxay), Hmong-Iu-Mien and Sino-Tibetan will account for 40% of the target communities. Increased cultural diversity in the new project provinces generates increased ethnographic challenges. Ethnic groups have different livelihood strategies, gender relations and overall worldviews that need to be considered in implementation. The risks and issues concerning ethnic groups and the project stem from the considerable variation in terms of social organization, culture, land use practices, food security, Lao language competency, resource access, gender roles and participation in local development planning processes. Amongst the villages visited during the SUPSFM survey were ethnic groups such as Thai Dam, Hmong, Kamou, Akha and Lahu, with the latter two being Sino-Tibetan ethnic groups. Although on the surface there might not seem to be any salient differences between these groups, further research in the implementation phase is recommended to assess any differences in natural resource management, natural resource tenure, gender dimensions, and social organization. Safeguards, which applied for previous SUFORD-AF, will continue to apply and due to increase of ethnic minority groups in the project area as seen from table X, will be even more important under this project. Table 8: Number of village per ethno linguistic category in SUFORD, SUFORD AF AND SUPSFM 7 Phase Provinces Hmong- Iu-Mien Lao-Tai Mon- Khmer mixed Sino- Tibetan Tibetan- Burmese Total number villages Most important groups Champasak Lao, Katang, Khammouan Salavan Savannakhet Total: % 57 14% % 412 Phoutai Makong, Xuay, Taoey, Laven, Pako Ngae, Tri, Lavae, Alack, Katu, Nhahem Over 10 ethnic groups Attapeu In addition to Bolikhamxay SUFORD: Lao, Talieng, Brao, Sayabouly Yae, Katu, Harak, Khamu, Pray, Sekong Hmong, Iu-Mien, Vientiane Taimeuy, Jhru. Total 23 7% % 83 27% 73 23% 311 Over 20 ethnic 7 Data source: SUFORD is from /Data for SUFORD AF 2011/Data SUPSFM: December SUFORD AF Ethnic and Gende advisor consolidated all data available in one table list of village. The list for SUFORD was inaccurate with wrong ethnic labeling so he revised it for each of the 412 village. Unfortunately the population for the SUPSFM in Louangnamtha and Oudomxay was not made available by the preparation team. The list for Bokeo province has not been made available yet. 53

62 SUPSFM groups Louangnamtha In addition to SUFORD and SUFORD AF Oudomxay Total 12 21% 8 14% 12 21% 15 26% 11 19% 58 Akha, Kinmoun, Hmong, Khamu, Lao, Leu TOTAL Over 25 ethnic groups 5.4 Ethno linguistic groups Mon-Khmer groups Mon-Khmer groups are known as the first inhabitant still occupying Laos. The most conservative scholars evaluate their arrival on the Lao territory around 3,000 years ago, and some more than 5,000 years. Mon-Khmer totals 147 languages and belongs to the Austro- Asiatic super stock located in Southeast Asia totaling 74 millions speakers. They dominated the region until the arrival of Lao-Thai (second wave of migration) from Southern China from the IX century onward. In Laos 5 branches represent the Mon-Khmer family: Palaungic, Khmuic, Banharic, Katuic and Vietic are recognized as the first inhabitant of the territory that corresponds to actual Laos. Figure 1: Mon-Khmer linguistic family Source: Chamberlain & all, 1995, courtesy of Gerard Diffloth Homogeneity and paradigms are observed in the Mon-Khmer groups. Similarities include exchange of important wealth at marriage, post-partum rituals, and burial in cemetery, sacred forest, and festival of the territorial spirit at the end of the agricultural calendar. Then, the influence of Tai-Lao groups is variable depending on the time length of the interaction. 54

63 Mon-Khmer groups in the Indochina Peninsula all share the same myth of origin referring to the original flooding of the earth. They also all believe in divinities, yiang, which are located in a specific area, and are quite personal. They distinguish domestic versus natural spirits or spirits of the inhabited space, space built or used by man and spirits of nature or brushwood spirits. Natural spirits (potentially unlimited) are praised outside the village space during a diurnal ritual. Shamanic ceremonies involving house spirits usually start after dusk and end before dawn. Mon-Khmer practice swidden cultures on the higher lands. The field is cultivated one season and left in fallow to allow biomass regeneration. In Northern Laos community splits in smaller production units that live in their fields during the agricultural season while in the south, the abundance of land allows periodical displacement of the whole community toward new production land and the circular movement of the migratory trajectories mark the limit of the village land. Sacrifice of animals is understood to be necessary for the general good of the village and to increase the ritual status of the owner. The sacrifice of buffalo brings prestige and status to the household head sponsoring the animal. The man s capacity to produce and capitalize on the buffalo is acknowledged by the community and the spirits. The loss of value of the buffalo is light compared to the symbolic capital gained by the individual. However it is one, which must be regularly reinforced and extended by new sacrifices and alliances between individuals from the same status. 8 In Mon-Khmer communities, buffalo skulls/horns ornament the roof of the community house, and the houses and coffins of important or influential persons Katuic speaking groups In the 4 provinces initially targeted by SUFORD, a great majority of ethnic villages belonged to Katuic groups. About 1.3 million people living in Thailand, Cambodia, Laos and Vietnam speak Katuic languages; the vast majority of which (more than a million) belong to the Kui-Bru (West Katuic) subgroup, living mostly in eastern Thailand and Cambodia. The greatest diversity of Katuic languages lies in Saravane and Sekong provinces and adjacent border areas of Vietnam 9. For Katuic speaking groups including Makong, Tri, Katu, Chatong, Triu, etc, the Takong riayh is the religious leader. This elder is in charge of the conduct of all community rituals, village business, weddings, conflict resolution between village farmers, and also between villages. He is also involved in the establishment of new settlement and presides over the council of elders. In the past, he would decide upon the taking of weapons for war against other ethnic groups or other villages. Forest, ancestors and spirits The forest is the domain of several supernatural forces or spirits called Yiang and each place inhabited by those spirits is known by all members of a community. Forest is traditionally the area where every human are born, where sepulture are put, and also an area for ceremonial exchanges and gathering of resources submitted to rituals. In fact, the forest and its resources 8 Condominas, Nous avons mange la foret de la Pierre Genie-Go. 9 Copyleft Paul Sidwell, Last updated June

64 belong to the spirits and there are regulations and interdictions for human beings to follow when they evolving in those areas. Yiang manifest them when they are unhappy when a rupture of the harmony between humans and the Yiang occurs, for instance because interdictions that aim to a pacific coexistence between human beings and spirits are not respected. That is why traditionally action and behaviors while in forested areas were strictly observed and embedded in the customary laws of each community. Ritual interventions by shamans who act as intermediaries between the divinities of the territory and the humans, aims to reset the harmony between the humanized world and the forest. Traditionally, there is no political entity above the village level. Access to land and resources are traditionally associated to the notion of territoriality according to which the land is managed by one community that traditionally exercised communal rights over the land and Katuic groups share a common notion of kuruang according to that the first inhabitant of the land owns the land. This is the case for Nathong village in Phin and Toh village in Phalanxay for instance; both are the first community that had settled down in their area and the founding lineage took possession of the land and set its kuruang and who has the right over the land and all resources. Each village is then composed by several lineages; the founding lineage that owns the land and other lineages that have settled posterior to it and that are usually apart of a larger structure, which has its land of origin and where it has the right of the first inhabitant. Villages that came posterior to the first inhabitant had traditionally to ask the right to settle on the land and usually paid tribute to the spirit of the land once a year in the sacred forest or Kaneak. Yiang Su is to the natural world what Yiang Kaneak of each descent group is to the village. (Vargyas, 1996:120). Each village that has the ancestral right over the land also has a sacred forest Aruiht Kaneak or forest sanctuary. This sacred forest is at the core of the patrilineal identity of the group and shelter the spirit of the dead, the Yiang of the patrilineal ancestors and more precisely of the diseased who have been absorbed into the pool of the lineage divinities by their death (Vargyas, 1996:117). Kaneak must be informed about everything that happens in the household or the community: birth, marriage, divorce, death, construction of a new house, timber extraction; that is why it is always invited; not doing so would provoke illness of fatalities in the community. Every human being is linked to Kaneak and each newborn is introduce and recognized by the deity as one of his own and will protect him. Every year, before the beginning of the agricultural calendar, a community ritual is implemented in the sacred forest and conducted by leader of the founding lineage Kuya called arieh/arouayh and usually seconded by another elder, from the second lineage that came altogether when the village was established. Arie vel is a hereditary function handed down from generations to generations, from the founder of the village to the actual descent, owner of the land and in charge of the community ritual in the sacred forest. The ritual is conducted to reassert the integrity of the land, its boundaries and to insure good harvest, health of its 56

65 population and of the animals husbanded on its land, security during the production cycle and to allow the use of the land and the resources. Representative from each household participate in the community ritual, as all farmers that live, cultivate or make use of the land and its resources must pay respect to the spirit of the land. Even the whole neighboring communities that live on a different kuruang must honor the spirit of this land. Every household bring along one chicken for sacrifice but all the chickens are boiled and are eaten during the collective feast held in the forest and where all participants join. There is clan differences in the implementation of the ritual presided by the ariayh, but the ritual remains a community event that insures that the relationship with the land and the spirit associated to it is preserved. Large trees called taya teyo are worshipped and believed to shelter spirits Yiang. Those trees are highly protected from logging because the cutting of those would released the Yiang chri (in Brou), malevolent spirits that would be harmful for humans and animals evolving on the land Bahnaric speaking groups: Tarieng profile The Bahnaric languages are a group of about thirty Mon Khmer languages. There are approximately 700,000 Bahnaric speakers distributed over a region roughly centered on the area where the borders of Vietnam, Cambodia and the Lao PDR meet. Bahnaric is commonly recognized as having four main branches: North Bahnaric, South Bahnaric, Central Bahnaric and West Bahnaric. According to Sidwell (2002:7), the Bahnaric languages can be classified as follows: West Bahnaric: Jru', Nyaheun, Oi, Laveh, Brao etc. North Bahnaric: Sedang, Rengao, Jeh, Halang etc. Central Bahnaric: West Central: Kasseng, Taliang, Yaeh North Central: Alak East Central: Cua South Central: Tampuon; Bahnar; South Bahnaric. Oy, Nyaheun and Jhru all belong to the West Bahnaric Branch of Eastern Mon-Khmer SUFORD AF has been targeting Harak people in Tok-Ongkeo, Javik, Kasangkang and Pakpoon sub-fmas in Lamam district, Sekong province. The project extension in Dakcheung will target mostly Tarieng communities. Talieng like to live in groups of relatives called chong, and there are many specific groups of relatives such as: Hiang, Prao, Tangorl, Palong, Klig, Yea, Churuum, etc. Each chong is named after the name of elderly person who administers the traditional practice of the community. The elder of chong has the role to keep and guard the community s gongs, which were bought from the community-sharing fund. Presently the gongs are shared within the community and neighboring communities when the gongs are needed for ritual ceremonies, which buffalo or cow is killed. (Mann 2008) When make agreement on marriage, the bride price is considered a strict obligation for the groom side. The groom s family has to give bride price to the bride s parents, in addition to the cost of arranging the wedding ceremony. The bride price is increased relatively to the larger number of streams, which people cross from the bride to the groom s location. One stream is equal to one buffalo. If the man cannot afford to pay the bride price and for the wedding, he is in debt, some men are in debt for years. If the husband or his parents die before the 57

66 marriage debt is not paid off then the relatives (children or grand children) have to take responsibility for paying off the debt. However if the husband s family is really poor, the debt can be cancelled based on the agreement made between the 2 families, but it is a rare practice. (Mann 2008) The agreement on divorce obligation is made on the marriage day. The one who initiates the divorce should leave everything to the other. Either has to pay compensation of the bride price, plus one buffalo and the cost of all kinds spent on the wedding day (rice, alcohol, cows, pigs, buffaloes, dogs, chicken, etc.,). Everyone keeps his or her own inheritance, even in the case of divorce. If they have constructed property after marriage, they will calculate the value and divide by two. (Mann 2008) When dividing parents heritage, sons get larger part of the inheritance than daughters. All of them will get equal part, but daughters don t receive any land or property as they move to the husband s house. The last son gets the house. The window women can remarry but the new man has to pay the bride price and cost of wedding to the parents of her former husband. If husband was in marriage debt before he died, his parents will pay the debt to parents of the former daughter-in-law after receiving the bride price plus the wedding price from the new man. (Mann 2008) Single woman is not allowed to live alone in a separate house. Unmarried daughter gets part of parents inheritance and has to live with them until their death, after that her brother will let her living with his family. The inherited land of unmarried sister can be shared for use with brother s family but cannot transfer ownership to the brother. She should keep land as her own asset to secure her future life. (Mann 2008) Khmuic groups: Pray Ethnic Pray are found in Xayabouly province in some communities currently targeted by the SUFORD AF project. There will be many more Pray communities targeted by the SUPSFM project with the extension to Hongsa district. Pray are sometimes referred to by the term Lao May which means new Lao referring to the recent integration of the group into the Lao nation. According to Chamberlin (1995), Pray is classified as Austro-Asiatic, Mon-Khmer, North, Khmuic, Phray-Pram, and Phay/Mal/T in. The Pray is the most important ethnic minority group in Sayaboury district with more than 15,000 people scattered over 24 villages, followed by the Khamu (more than 9,000 people/12 villages) and the Hmong (near 7,000 people/9 villages). Some Pray people are also found in Phieng district and some have also migrated in Vientiane Municipality and live mostly near Khao Liao harbor north of the town. Locals distinguish two main linguistic groups; Doikao marks the limit between both groups: one would pronounce eat rice pong cha and the other pong xa. Ethno historical perspectives According to historical research conducted by historian amateur from the provincial capital, the Pray all lived in one village, the most ancient, and established about 700 years ago on the location of the actual Sathan village, and called Saphat. The community split due to epidemics and all villages that today start with Sa (like in Samet, Sapi, Saket, Sakup, Sama, Sala, and so on) came from the Saphat village. 58

67 Some villages had long houses; usually one for each clan, such as Sametngay well known for its 6 longhouses; the longest had 38 sons-in-laws. The entire village burned down in the 1980s in the season of swidden burning. But the second Pray group, from Doikao up to the Thai border apparently never had longhouses; Pray were living in traditional houses, model of which is still observable in Sala village for instance. In Thailand, the group is called Thin or Lua (Lawa) and essentially lives in Nan province. According to Jordan (2001), the term Thin is also spelled Htin, Tin, H tin and the term Lawa or Lua has also been used for a Palaungic language in Mae Hong Son and Chiang Mai provinces (Deepadun & Ratanakul, 1997). The pray population in Thailand is estimated around 36,000 people. According to their mythology, the Lua are the original inhabitants of northern Thailand. It is believed that southern China, the Shan state in Burma, the Lan Na area, and northern Laos were formerly controlled by the Lua (Aroonrut Wichienkeeo). Satasombat noted that the Lua in northern Thailand still remember a kingdom that could have been formed by Khun Louang Wilangka, the great Lua Leader. The existence of this kingdom is acknowledges in Tai Yuan chronicles and the Lua area acknowledge as the first inhabitants and the founders of the towns and settlement of the north. The ancient Tai Yuan chronicle gives Doi Ngen (Suthep) as the site of the former capital of the Lua, founded prior to the creation of the Mon kingdom of Haripunjaya in the eight century AD. In Doi Phu Kha, in Nan province, the Lua still remember being the first inhabitant of the lowland areas in Woranakorn or Pua. The migration of the Tai Leu from Sipsong Panna more than 2 centuries ago resulted in the vertical migrations of the Lua toward the hills. This is when the Lua started practicing shifting cultivation. Marriage patterns and sociocultural change Among the original, indigenous features of Prai society, we find an exogamic clan system (People can only marry outside of their clans), matrilocal residence (after marriage, couples move to the village or residence of the wife s family) and matrilineal descent; this means that the new couples takes the mother s family/clan name on marriage, and inheritance is through the female line. The history of communities often starts with the establishment of the first mothers referring to the mother of ritual that led their community to the site of the village. Pray females work for 2 years in their husbands house prior getting married. Pray women pay for the dowry, and then the male enters their house. In case of divorce, if the female initiate the divorce, she has to pay the fine (about 50,000 LAK in average per village). But in the case where the male initiate the divorce, he has to pay the fine, but also the cost of the female labor (for the 2 first year of labor provided to the husband s family prior wedding) estimated around 3,000 Baht. In Pray society, the woman side traditionally pays for the dowry; the young woman goes to work two years in her husband s field prior getting married and the husband goes to live in his wife s house. But one young woman from Doikao in Saysethan district where the future district capital will be located - replied that when the Lao will be coming, they will be the one paying for the dowry. Her strategy is then to wait for the establishment of the new district and the end of the pray traditional matriarchal system to get a Lao husband who will pay for the dowry. 59

68 There is a clear link between traditional elite and the new political structure imposed upon Pray s matriarchal and matrilocal social structure that illustrate that even if women s prerogative seems to regress, traditional women authority legitimate male s contemporary leadership. As observed in Doikao, all political leaders: village head, vice head, LWU, LYU, and so on are all blood related to the mother of ritual (mae hit), who live above the village and is in charge of production rituals. This woman still lives in the longest house that preserved the pen trouay, long wooden plank that cross the entire house, that symbolise the wooden plank that would cross entire longhouse before the abolition campaign that raged from 1993 onward in the area resulting in the dismantling of all long houses Hmong-Iu-Hmien groups The Hmong are recent arrivals in Laos, coming for the first time in 1810 ultimately from Hunan and Guizhou in China. They are thus one of the most Confucianized groups and marked by a rigid system of patrilineal clans. The Hmong are divided among 19 patrilineal clans xeem: Chang, Cheng, Chu, Fang, Hang, Her, Khang, Kong, Lor or Lo, Lee, Moua, Phang, Tang, Thao, Vue, Xiong, Vang and Yang. The clans are strictly exogamous: a marriage must be with a person from a different clans from one s. A person primary loyalty is primarily always toward member of a person one s clan, irrespective of village or region of residence and there is a strong solidarity between clan member (Ovensen, 1995:20). At marriage, the woman leaves her clan and become member of her husband s clan. A ceremony called hu plig is conducted to inform and get the consent of spirits and also to insure that the soul of the young couple and in particular of the girl (shifting clan membership is a delicate matter) do not stray or wander (Ovensen, 1995:21). The lineage kwv tij gathers people who trace descent in a direct line from a common ancestor. But Ovensen argues that the sociality of the Hmong is predominantly focused on the spatial proximity of relatives. Finally, the household tsev forms the basic social and economic unit. The head of the household usually the eldest man take major socioeconomic decisions. Due to strong socioeconomic autonomy of the household, the concept of village has different meaning and this explains why Hmong are not attached to any particular village as a social of spatial unit. For the Hmong, the primary foci of social identification is the household, the group of close relatives and the clan and their social identity is fixed through concept of patrilineal descent groups, lineage and clans (Ovensen, 1995:24). In terms of Governance or decision making among the group, Hmong men are the agents of hereditary transmission of the ancestral line, play the principal role. Only men participate in meetings related to the governance of the group and women are relegated entirely to the background. Hmong women never take part in discussion and cannot vote in assembly which they may attend only as observers (Yang Dao, 1993:25). Old men cast the deciding vote. More experienced and wiser, they are generally listened to and their advices are almost always followed. Hmong leaders are elected by group suffrage and are nominated among the clans most intelligent, capable, generous, influential and generally oldest members. Traditionally, each hamlet or village is led by a headman, assisted by one or two notables. He finds amicable 60

69 settlement of disputes among members of the community. Hmong is a well definite and wellrespected hierarchy (Yang Dao, 1993:24). As Morechand underlined: A clan chief can rule over an entire region, thanks to the influence he acquires through the mediation of his clan and his clientele. Ancestral worship is widespread among patriarchal clanship structures. Apart from Buddhism and animism, ethnic Mien also worship Taoism. They believe in ancestors and also Gods. The Iu Mien believe there are 33 levels of heaven, for protecting a human earth such as Praya In, Youlai, Guanyin, 7-star sisters, a ghost of the moon, the sun and others. In Iu-Mien societies, leadership structures amalgamate both secular and religious functions with the religious leader and the head of the tribe being the same person as a leader or clairvoyant that has responsibility for worship of the ghosts of places Sino-Tibetan Groups There are about 148 languages and over a billion speakers in the Sino-Tibetan linguistic family. As for the Hmong-Mien, in Sino-Tibetan patriarchal clanship system men, as agents of hereditary transmission of the ancestral line, play the principal roles and are usually the decisive authorities and only men participate in meetings related to the governance of the group. Men with greatest experience and considered the wisest, wield greatest influence and their recommendations are almost always followed. Leaders are nominated among the clans most intelligent, capable, generous, influential and generally oldest members Akha profile Akha legend has it that they began to slowly migrate from their ancestral homeland in Tibet more than 2,000 years ago into southern Szechuan and Yunnan in China. More recently, mostly during the 19th century, they have migrated into northern Burma, northern Thailand and northern Laos. The present Akha population of Laos is approximately 60,000 divided between the northern province of Phongsaly and two districts of Luang Nam Tha (Muang Sing and Muang Long). Until recently Akha livelihoods in Muang Long were based almost entirely on swiddening of crops such as rice, opium, maize and cotton. During the past ten years or so more than 20 Akha villages have been established on the lower slopes of the highlands, less than a days walk to Muang Long town. This has been partly in response to Lao PDR Government policy on shifting (swidden) cultivation and forest preservation and consequent pressure by local officials on the Akha of the mid slopes to resettle close to the lowlands and to take up wet-rice cultivation. Another factor that has encouraged resettlement has been the steady decline of highland soil fertility and swidden rice yields, coupled with the enforced prohibition of opium production since 2002/3. Akha social organisation is both patrilineal and patriarchal. This is relevant insofar as it indicates a socially embedded system of male dominance. For example, after marriage the wife is incorporated into her husband s lineage. This has important implications if there is divorce. The wife has no claims on the children of the marriage as they are considered to belong to the husband and to be under the protection of his ancestors. It follows that sons are also more 61

70 desirable than daughters, as at least one son is needed to perpetuate the patriline. Male dominance and privilege are reflected in the domestic, political, ritual/religious and economic spheres. The Akha house is divided into a men s room and a women s room, often with separate fireplaces. A wife can only eat after she has served her husband. The village headman, village ritual experts and village elders - all men - dominate political decisions affecting the village as a whole; women are denied any formal role in community decision making. Although shamans are often women the most important ritual specialists are men. The economic sphere hunting is an exclusively male activity. Both men and women are active in agriculture, although women are expected to work longer and more in the fields. In addition to farming work, there are the constant demands on women to do weaving, collect firewood and draw water, pound rice, prepare meals and care for children that occupy them to the full each and every day. Male dominance is also reflected in the constitution of adolescent male and female groups where the leader of the male group has control over a number of customary practices expected of their female counterparts, including the massages offered to visiting guests to the village and the provision of sleeping partners if so requested Kim Di Mun (Lao Houay) - Lantene The Lao Houay, as the Lao have called them since 1975, or Kim Di Mun, as they call themselves, belong to the vast tribal group of Yao formerly called Lantène. Lantène is a southern pronunciation of the standard Chinese word Landian that has become the usual ethnonym for the Mun subgroup of Yao in China. Mun (LandianYao) are today to be found in three provinces of China: Hainan (Sanya), where they are known as Miao, Guangxi, and Yunnan ; in Vietnam they are extending their numerous tribal subgroups from Quang Ninh to Lai Chau on all the Northern provinces; in Laos they only are in the provinces of Phongsaly, Oudomxai, Luang Namtha and Bokeo. They should have accounted for about 10,000 of the 22,695 Yao recorded by the 1995 Census. The Laotian Mun divide out into only two tribal subgroups: Kim Di Mun at the mountain foot and Kim Diang Mun at the mountain top. The former is to be found in Bokeo, Luang Namtha and Oudomxai provinces, the latter is living in Phongsaly. According to Laurent Chasée (1999: 108) there were in 1995 some Kim Di Mun in the provinces of Luang Namtha, Bokeo and Oudomxai. In all prospects, they are a small and sparse population, albeit still very conspicuous nowadays as a fascinating minority when they walk their way along the streets of Luang Namtha. Their ancient links with Vietnam and China and their own pattern of East-West migration inside Laos never too far from the Chinese border has made them a de facto border population with interesting modes of adaptation and integration into the Lao state where they arrived some 130 years ago. They have also developed their own strategy for preserving their ethnic and cultural identity together with a strong sense of citizenship as Lao nationals. When the other Yao group, the Mien Yao, fled the establishment of the Lao PDR in great number, the Kim Di Mun preferred to stay and managed quite successfully their rallying to the new authority. Thus, they quietly accepted the name of Lao Houay Lao of the Streams given to them by Lao officials inasmuch it matched, indeed, their most favorite econiche Lahu Kui Mussur Lahu population average about 500,000 individuals and stretches throughout the mountainous regions of Southwestern Yunnan (60%) to Shan State in Burma (22%), in Chiangrai, Chiang Mai, 62

71 Lampang, Mae Hong Song et Tak (10%) and in Louang Namtha and Bokeo in Northern Laos (3%). They are famous for their hunting skills; Lahu means The hunters. Chinese Chronicles mention that during the Tang dynasty around 796, Lahu had their own kingdom named Nanchao and its capital Li-Kisangasih was known by the Chinese as the capital of the 8 Indigenous Chiefs. Historical sources also mention the existence of an independent Lahu Kingdom around the th century located near the Burmese border between the Salween and the Mekong. From a social point of view, the household is the primary social unit of the Lahu society. The customary leaders are the Pah Hku or spirit doctors; ritual specialists. Residence pattern after marriage is primarily matriolocal; the husband will move in his wife s house but the husband remains the main authority under the house. Compared to other ethnic groups, the Lahu are generally the most dependent from forested space for collecting forest food, medicinal plants, NTPFS, raw material to produce handicrafts (mostly basketry), hunting and trapping. 5.5 Customary authorities and decision making in ethnolinguistic categories Through out Lao PDR, customary conflict resolution mechanisms continued to dominate. Still, the boundaries between the three justice systems - informal, semi-formal, and formal are porous, interdependent, and have a symbiotic effect upon oneanother. Cases move between the different mechanisms, as justice users at tempt to navigate their way to the best process and outcome for their case. The village is traditionally the primary political, economic and social unit. Leadership is a crucial issue for many of the ethnic groups in the project areas. While the villages have official Village Heads, it does not mean that they have a lead role in all matters. Traditional or customary leaders, for example, choose upland areas for the current season s cultivation, may resolve disputes in the village and with other villages, may manage sacred spaces in the village and its surrounding land, forests and water, and be important intermediaries between the temporal and spirit worlds. In other words, they perform functions that support the traditional livelihoods systems of the local villagers and are respected. Thus, not to explicitly include them in discussions on matters related to land and forest planning is not culturally appropriate and represents an adverse social impact. According to the Access to Justice Survey (2011), women seem to prefer an informal mechanism even more than men. Customary leaders provide what is called traditional mediation; a process when mediators, use their traditional and custom practice to help the parties to settle their dispute and conflicts. The strengths of the traditional mediation is that it is not based on formal rules and procedures and help parties to reach mutual agreement because led by respected community elders. The main constraints concerning the traditional mediation is that it may be ruled by a dominant group (important clan, patriarchal structure) and sometimes it may be in conflict with the formal law in case of forced marriage after rape or compensation for death for instance. 63

72 The customary law of each group contains a cosmological vision of the sacred space and regulations to maintain the social harmony. From an historical point of view, each community use to manage the life of its people based on a cosmological vision of the space. Customary law systems are not stand alone legal systems but rather outward, visible signs of an integrated world view, existing as total social fact and comprised of a complex, ordered system of customary, political and legal authority. However, it would be inaccurate to imagine each ethnic group in isolation and its customary practices impenetrable, ancient and static. To the contrary, customary practices are in a constant state of flux, and are better characterised as flexible and adaptive social organisms engaged in vibrant social processes of interaction and interpenetration. Customary practices rely upon community involvement and consent, (albeit limited to those who exercise power and influence), thus must be constantly re-negotiated and modified. Many factors drive change including the group s relationship to the dominant society, and the gradual penetration of other social, political and economic forces, which can also fuel internal demands for change. Closer examination of customary practices in Lao reveals the degree to which the customary practices of ethnic groups are fluid and influenced by others thus defying neat labelling. There is a type of social process that overrides cultural distinctions, in a sense that common social and political structures crosscut the conventional, linguistically-derived concepts of tribe and tribal culture. Cultural traditions and identity among hill and valley neighbours are shaped by their patterns of social interaction and adaptation. Buddhist ideas penetrate the cultural fabric of highlander cultures and vice-versa. Rigid traditional dichotomies between animist highlanders and Buddhist lowlanders usually result in the misreading of complex cultural configurations. For example, while initially only some Lao-Tai groups were Buddhist (other Tai speaking groups such as the Tai Dam remained animist), nowadays, many other ethnic groups have to varying degrees also converted to Buddhism. Thus pockets of Budhism can be found in segments of communities across many ethnic groups and layered over or alongside other belief systems without apparent inconsistency. This includes the Phounoy for instance, who converted to Buddhism approximately 700 years ago during King Souliyavongsa s era, but who also continue to assert Latsukan customary beliefs. Many groups have a Buddhist temple in their village, but also maintain vernacular practices and cults. Consistent with this point, animist beliefs continue to be relevant to all of Lao s ethnic groups with both lowland Buddhist and ethnic minorities remaining committed to animist worldviews. One commonly held belief across ethnic groups is that spiritual forces manifest when harmony between human and spiritual worlds is ruptured, for example, where rules of peaceful coexistence between human beings and spirits are violated. This explains why customary beliefs and practices have often been strictly observed and frequently rely upon interventions by ritual specialists. These specialists are empowered to act as intermediaries to re-set harmonious relations between human and spiritual worlds Hmong-Iu-Hmien and Sino-Tibetan groups 64

73 In patriarchal clanship system men, as agents of hereditary transmission of the ancestral line, play the principal roles and are usually the decisive authorities and only men participate in meetings related to the governance of the group. Men with greatest experience and considered the wisest, wield greatest influence and their recommendations are almost always followed. Leaders are nominated among the clans most intelligent, capable, generous, influential and generally oldest members Tibeto-Burmese groups Traditional Akha villages have two leaders: (1) the dzoema is the village administrator and the ultimate judge in charge of conflicts resolution and arbitration of disputes. He is also the shaman and guardian of traditions, while the (2) buseh is in charge of the village s external affairs. The Akha village traditionally is a political, economical and social primary unit. Politically autonomous, there must be at least three patrilineal clans to constitutes a viable entity and insure matrimonial exchanges between the clans. Without territorial rights and distributed transnationally, Akha have developed a clan system «adjeu» and elaborated a complex genealogical system. The oldest clans go back 60 generations ago to a founding ancestor. The head of the clan is usually the elder male. Individuals are free but must not transgress customs and traditions embedded in the Akhazangr. The word Akhazangr or Zangr, has been translated as religion, way of life, customs, etiquette, and ceremonies, and traditions as handed down by the fathers. Akhazangr certainly has the authoritative heaviness of the Jewish Torah or the Roman Catholic Scripture and Tradition, except that it does not claim divine revelations but rather the authority of a succession of sixty-four generations of patrilineal ancestors during the ldong journey from Tibetan borderlands into China, Burma, and Thailand. Another characteristic of Akhazangr is that it indeed includes the whole of Akha life at all levels, in other words, the whole of what American anthropology calls culture. It describes when, where, and how forest has to be cleared and burned; rice and vegetables have to be planted and harvested; hunting by traps or driving have to be performed; villages and houses have to be founded or built; husbandry tasks have to be taken care of; game and animals have to be slaughtered and divided; food has to be cooked; children have to be conceived and brought up; and transactions have to be managed. Akhazangr also contains prescriptions indicating how to relate to many different categories of groups and persons within the Akha milieu, including family, lineage, and clan, in matters concerning marriage, penal and judiciary rules, as well as outsiders. zangr meticulously describes proper daily behaviour: when to get up in the morning and in which order to proceed; how to allocate labor; how to hold a bamboo teacup or whisky container in the part of the year dominated by spirits and the part dominated by humans; which line males, and which line females have to follow when weeding the fields; in which direction to hold your dibble-stick while making holes (for males) and how to put the rice seed in the holes (for females); and how to hold your machete or 65

74 sickle when walking to the fields. In other words, it contains the whole elaborated system which we call etiquette, except that, in daily Akha behaviour, interaction and language have no marked traces of a court or upper class, from which so many good manners, courtesies and words (including the word etiquette ) in class societies have been derived. The transmission of Akha customary law embedded in oral archaic texts from the Phima (reciters, teachers) to the Phiza (students) is not an easy endeavor and may take as long as ten years or more: training of Phiza require a literal, word-by-word, concentrated, meditative type of memorization (200:132). The language of those oral archaic texts is not understandable for lay-person, even in the case of population segments separated by hundreds of years; the texts share high degree of mutual intelligibility. Cultural and structural unity of the group Lao-Tai groups In Lao-Tai groups, elder people recognized by the whole community act as the leaders, but usually the function is not hereditary transmitted. This is not the case for Tai Leu whose authority is comprised of Sen (secretery), Cha (chief) and Panya, and all functions are hereditary and open both to male and females In Phouthai communities, the leader is also in charge of community rituals in the village sacred forest pha mahesack In situations of conflict, people usually refer to appointed representatives from both sides called sam tao si kae; Tai Neu select elders using a draft system. This process is not open to women who are not allowed to participate in meetings or in conflict resolution committees Mon-Khmer groups Mon-Khmer groups are generally led by a council of elders comprised of older males. The council is presided over by the representative of the founding lineage who established or founded the village in charge of the community rituals; the highest authority, known as Leukounkoung by the Khmu and the Takong Riayh to Katuic and Baharic speaking groups. This is the decisive body in charge of regulating conflicts emerging within the community or with neighboring communities. For the Brao, the function is not transmissible. The Khmu Rok Krong recognizes nine main clans ( Ta in Khmu Krong language). Leukounkoung is the head of Khmu clans and is usually an elder man who commands admiration and espect amongst the community. When Leukounkoung retires or, more unusually, loses the confidence of the community, then senior villagers will decide upon a successor who would ordinarily be his son or brother. In relation to everyday dispute resolution, clan elders will consider and resolve dispute, however in more serious or unresolved cases, the Leukounkoung will become involved and decide the case with the clan elders. While previously women were not considered eligible or qualified to 66

75 participate in clan decision-making, these views have softened, however informal cultural barriers to their participation in community decision making remain, and still greatly constrain their involvement. In Makong communities, those who are senior people, considered competent and who command respect within the community, take on roles of conflict resolution and leadership. Ritual specialist roles such as leaders of worship of a ghost of place, ancestor spirits, clairvoyants, charm practitioners, are inherited by sons and grandsons who are considered endowed with special powers to communicate and mediate between ghosts and spirits Weakening customary structures and social implications Communities are placed under great stress when confronted with cultural loss and rapid change. This can exacerbate existing, or create new, social problems and challenges. Customary law systems struggle to deal with all of these. Traditionally, throughout Laos, ethnic groups would not mix within a village unit; this means that most of the villages are traditionally culturally homogenous. Resettled and consolidated communities often put together different ethnic groups and this often makes obsolete traditional customary practices that are often not compatible between different cultural configurations. In those resettled and consolidated village, the communities increasingly rely on State institutions for conflict resolution. Some ethnic groups are undoubtedly doing better than others in meeting these challenges.the Hmong and Mien ethnic groups appear more resilient to external forces of change. Their communities are more functional, cohesive, and generally better off, than those of some other groups. The Iu-Mien have retained use of customary dispute resolution practices. These are still the most popular in all communities; including, those that have experienced many changes. Iu- Mien communities continue to have confidence in the effectiveness and efficiency of customary law procedures. They use their native language, save money and time, utilise civil remedies that are cheaper, ensure that victims face, pride, and reputations are restored; thereby, achieving reconciliation be tween the parties and engaging communities in participatory justice processes. Overall, ethnic communities face increased levels of alcohol abuse, drug-taking, and drug trafficking; including children and teenagers. This results in greatly increased health problems and higher levels of anti-social behavior in some communities. The linkage between interruptions to male livelihood activities and alcohol abuse or domestic violence is strong. Men who are unable to fulfil the bread-winning role expected of them, often face selfesteem and identity conflicts. Also, they have increased discretionary time on their hands. Such conditions result in more men turning to alcohol as a prop and taking out their frustrations through violence against family members. Men are (allegedly) more likely to use prostitutes now, take on concubines or engage in polygamy;even amongst groups in which this is not customarily permitted. All of this further fuels conflict between husbands and wives. Women have to work even harder to compensate for their husbands absences and lack of productivity, as well as cope with domestic violence and marriage breakdown. 67

76 5.6 Gender In general, women are disadvantaged in comparison with men with respect to access to development benefits, education and health services. Women s representation in positions of power and decision making remains limited. Ethnic minority women are the most disadvantaged in Lao society. Women in Lao PDR have a far lower average literacy rate than men. For example, an ADB study in 2000 found a female literacy rate of 48% compared with a male literacy rate of 74%. The literacy rate of women Khmou is 23% compared with 61% for men Khmou. The literacy rate among Hmong women is 8% compared with 46% for men. Many ethnic minority women do not speak Lao. Ethnic minority women are traditionally in charge of the physical reproduction of their group and also of key economic activities such as the selection of the indigenous upland rice varieties to be planted or collecting wild food products. Abrupt changes in livelihoods make much of the women s knowledge obsolete, while at the same time drastically increasing their work load. Being in charge of collecting the daily firewood, fetching water and gathering forest food products, they are the first to be affected by increased competition over resources due to resettlement, consolidation and land reform. The emergence of prostitution, increasing alcoholism and drug abuse that are symptomatic of individual difficulties and social disruption also increase women s vulnerability. Women, and particularly those of certain ethnicities, are seen as being extremely vulnerable to changes that affect their economic activities, especially changes in the environment, settlement patterns, and land usage rights. Women are also much more likely to be victims of any Gender- Based Violence (GBV) - i.e., violence that is targeted against, or disproportionately impacts, one gender - and, in particular, of Domestic Violence (DV). A corollary to this is that they are affected, directly or indirectly, by problems fed by changes in social order and stability; such as prostitution, alcoholism or drug use Residence Patterns The household is the primary social unit for Laos ethnic groups. Marriage is also a cultural lynchpin for all ethnic societies in Laos. Knowing marriage customs and patterns are key to understanding the relative status of women and men in society, as well as for guiding the possibilities and entry-points for incremental improvements in gender equality. Residence patterns and modes of marriage have a tremendous impact upon women s status within the community. Generally speaking, women have a higher status and greater decision-making powers in matrilocal systems because the house and property belongs to her family. This places the woman in a central position, bestowing upon her more power in economic and social life. If she co-resides with her own family, she is also much less vulnerable to mistreatment by her husband or his family, as the presence of her natal family can act as a strong deterrent. If abuse does occur, her family is then more likely to intervene on her behalf. Residence patterns also impact upon women s quality of life, and their ability to access information about their rights, as well as to seek a remedy in the event of conflict. In some ethnic groups where the custom is that a bride moves in with her husband s family after 68

77 marriage - i.e., a patrilocal system - the woman is in a relatively weak position in terms of status within the family. Significantly, she is disadvantaged in terms of realising her rights in the event of a family dispute or break-down of the marriage and, indeed, more likely to be restricted in seeking external assistance to resolve any dispute. In a matrilocal system, where the husband moves in with the wife s family, the woman will be in stronger position, both as regards her substantive rights but also in being able to call upon assistance when a dispute arises. The models of intra-group governance and decision-making, including dispute resolution are largely based upon clan structures in groups such as the Hmong, Phounoy, and Khmu - or upon a council of elders, amongst the lu-mien and Makong. Women have traditionally been excluded from such power structures and decision-making, albeit exercising ritual authority in many matters, but this exclusion seems to be softening; e.g., amongst the Khmu Birthing customs All groups have gender-related spatial restrictions. These are often related to women s status in the household or connected to a specific time: e.g., menstrual periods, when women are forbidden to visit places of worship; or after giving birth, when the new mother is forbidden to visit others houses and pregnant women are prohibited from entering the house of a new mother. In some groups, women are also forbidden from entering houses through a men s entrance or approaching the household spirits or ancestors altar. Each community also has its own distinct cultural attitudes and practices relating to pregnancy and childbirth, which are reflected in diet, work patterns, use of herbs, traditional healers, and healing ceremonies. Childbearing practices occur in accordance with the cultural norms of that society. The Lao, Hmong, Khmu, and Xouay deliver their babies in houses; whereas, Khmu women give birth in small houses next to the main house. The Taoi, Katang, Makong, and Tri, on the other hand, traditionally deliver in the forest. While the relevance of such practices to matters such as health policy is more readily apparent, the link with justice is less so. Nevertheless, as with residence patterns, these practices affect - and reflect - subtle differences in women s status and rights, as well change in this regard over time. It should also be noted that none of the ethnic groups studied in the Survey have the tradition, or the contemporary practice, of having women as customary decision-makers. While women are largely excluded from wielding power in the political sphere, they often play important roles in rituals: especially those associated with health, traditional attendance practitioners, divination or healing Division of Labor Similarly, but more obviously, a gender-based division of labor is linked to (women s) economic and social well-being and status in a community. It may influence the nature, content, or exercise of men and women s respective rights, as well as their demands for justice. In general, in Laos, across all ethnic groups, men perform tasks that are considered heavy, dangerous, solitary, done at night or that require short bursts of energy. Such activities include: clearing the land for swidden cultivation, warfare, preparing agricultural tools, hunting, trapping, and fishing, as well as organising religious ceremonies, giving alms, organising 69

78 weddings, constructing a house, and as noted above - governing the household, family or village. Women carry out most domestic chores and provide much other labor input; ranging from collecting firewood and water to production activities that can be done simultaneously with childcare, which require longer periods of time and usually done in groups of two or more. Such activities include: clothes production, cooking, taking care of children, washing clothes, and feeding domestic livestock. Sons are generally given more opportunities and rights compared to daughters, including for education and social involvement, in part due to the demands upon girls - and women s - time because of their workload. Women shoulder a much greater burden of labor than men, but higher social and economic value is attached to men s work than to women s. These two factors create and entrench gender inequality because the division of labor is not based on being different but equal. Rather, it systemically elevates and privileges men s roles: endowing men with economic and social power, while concurrently devaluing women s roles. Thus, men and women operate on an uneven playing field, where access to power, resources, and opportunities are not balanced. Women tend to be primarily (as opposed to secondarily) responsible for more tasks than men, especially those which are time-consuming or tending oriented (i.e., brush clearing, transplanting, weeding, watering, seed selection). Women are much less responsible than men only for ploughing in the lowland system and cutting big trees in the upland system and they are more responsible for many secondary crops, including all vegetables (especially if tending is required: watering and weeding). They are often very much interested also in trying to market these secondary crops Women and Non-Timber Forest Products (NTFPs) Women across all ethnic groups are involved in the collection of NTFPs equally or more than men. In villages and communities with longer and more interdependent relations with forest, and where there is adequate access to reasonable quality forest, women tend to be involved in NTFP collection on virtually a daily basis. They collect forest foods such as wild banana for pigs, and various greens, insects, mushrooms, shoots and fruits for family consumption. Men may hunt and trap small mammals and birds and collect wild honey. The household dependence on forest areas depends also on the general preferences, and orientation, of the ethnic group whether to collect or not. When the families collect NTFPs for marketing (broom grass, wild palm fruit (mak thao), paper mulberry, bamboo shoots, etcetera), there is greater allocation of both male and female labor to this task. Overall, poorer families tend to rely more on NTFPs (given adequate forest quality and access in the surrounding area) than better off families for subsistence, as their fields and livestock don t provide them with adequate food security Increased workload of ethnic minority women Both the gender and poverty situation in the project area varies considerably between the wellestablished lowland villages with paddy areas (especially of the Lao-Tai groups) and the midand upland villages of ethnic minorities including those which have moved or have been 70

79 resettled to lower lying areas. The mid- and upland villages have little or no paddy areas thus making the livelihood situation of the overall village generally more precarious. Rice shortages are common in such villages, while traditional coping mechanisms can either no longer be used (opium poppy cultivation) or have become less effective. Women s status and position in many of the ethnic minority groups prevents them from exercising their rights and they thus experience greater vulnerability to poverty, indeed greater depths of poverty, than do men. Women are farmers across all ethnic groups and farming systems, but household farm labor is highly integrated. Nonetheless, the differences in household allocation of labor result in different impacts on women and men from different government policies and actions which is resulting in greater hardships for ethnic minority women. A disturbing issue us that upland farming women s agricultural workload is becoming heavier, while at the same time their families are faced with increasing difficulties to meet their food needs (their rights to food security are reduced). Many of the causes of women s reduced rights to a secure livelihood are structural, with some of the causes starting at the policy level, and resulting in women s reduced access to productive resources, especially including land. According to Gerbert and Louangkhot (2007) the following causes were cited as most important for women s increased workload and reduced food security: The implementation of the land and forest allocation policy which limits the number of upland plots to three, meaning artificially induced reduced fallow times (previously at eight to ten years, now only two or three); The small village merger policy which has resulted in smaller villages moving together or in smaller villages moving down to join already existing larger villages, so that there are at least 50 households; The implementation of various land concessions, such as for rubber or timber, may also reduce land available nearby the village for women s and men s productive activities. Government policy to reduce the total number of plots allowed to remain in the rotational cultivation system has two immediate impacts on the farming system itself. First, with the reduced fallows the weed pressure increases; second, the reduced fallowing times don t allow larger trees to grow up anymore. Since women are responsible for weeding they have much more work to do, plus their share of the land clearing work also increases with the increase in brush and shrubs (women s task to clear, men s to cut the larger trees). If women cannot keep up with the weed pressure, they may also choose to make smaller plots. Merging villages causes many women (and men) to have to walk longer distances back to old fields, as there is no land available in the new place. Women often carry children with them, or leave very young children/infants behind, which also has a negative impact on the children s health Power & Decision-Making Structures The village is traditionally the primary political, economic, and social unit. Ethnic communities in Laos observe one of two systems, or structures, of power: one is clan-based and, the other, on a council of elders. Hmong-Mien and Sino-Tibetan groups follow a patriarchal clan system, while Mon-Khmer groups are generally led by a council comprised of older males and presided over by members of the founding lineage ; i.e., the family or descent-line that founded or established the village. None of the ethnic groups have either the tradition or the current practice of having customary women decision-makers. 71

80 Katuic speaking women In Katuic societies, the household is the main unit of labor and the women are the main labor providers. Women s daily chores include fetching water, pounding, soaking, steaming, serving the rice, cooking the meals, looking after children, forest-food products collection, feed small animals, etc. The first task of the day (it s still dark outside) is to start the fire and steam the rice that she soaked the night before, and steams rice generally twice a day; the family eats twice with the quantity of rice steamed in the morning and she steams another meal for the night. Early morning is also devoted to fetching water. During the meals, her husband will often discuss about the task of the next day for himself, her and the children. The family usually eats together and the parents usually sleep together unless the husband has to look after the rice in the paddy field or the garden. Pounding the rice usually by hand occurs in the morning ad stretch at least one hour; there is one or two kok (mortar) depending of the size of the family). While implementing her daily duties, the woman also takes care of the children; talk to the daughter in law for her to go to work outside the house; the wife of the head of the household is the head of the female labor and the children. After the breakfast she goes to look for food and firewood or to the field if the time as come for agricultural activities (planting, weeding, harvesting, etc.). Women are responsible of the household s food security in terms of production (wedding, planting of all crops, watering, and harvest), small animal husbandry and forest food products search, collect and processing. Digging wild tuber, khoi, priiang is usually woman s tasks: she is the one who collect, cut, soak in water and cook those starchy food. Other forest edible items include louk pa literally meaning children of the forest or shoots come first in the household daily diet: bamboo, vay, boun, san, tao, fishes, batrachians, mushrooms, reptile, and small animals (rats, rodents, and birds), vegetables and mollusks. Furthermore, this fundamental task in insuring her household s survival and physical reproduction is embedded in the special prerogative women have in the Katuic society: the selection of rice varieties. Other seasonal activities include weaving mostly during January and February in time of release from the agricultural production cycle. The hardest period of the year is during the planting and the harvesting period where the woman has both to work and provide breastfeeding to the baby. In a woman s life, women interviewed said that the best period in a woman s life; when she is the most free is before the wedding and before having children. In almost all communities focus group discussions with women illustrate that the main constraint in a woman s life comes with her first pregnancy and stops at the end of her reproductive age and pregnancy and pounding rice appears here to be the most constraining task of women. This natural event used to comport risks for both the woman and the newborn. Cultural restrictions and taboos vary considerably in the village visited. Xouay deliver in the house as Lao do while Taoi, Katang, Makong, Chari and Charouy deliver outside the house, and in the best 72

81 case in a birthing hut built behind the house but never in front. In the most progressive katuic communities, in case of placenta retention, the woman is allowed to return home; a luxury that women in more conservative community cannot afford. When she leaves her lineage to enter her husband s lineage, she brings her labor and the woman will work hard during her entire reproductive life; the situation will improve when she gets old and if she can rely on the support of her daughters-in-law that will, them also, provide the family with their labor. As mentioned, marriage is the occasion of the most important wealth exchange in the Katuic society. But marriage is also a strategy of alliance between households and regulated by system of khoy wife-taker and khuya wife-giver; the latter is also the founding lineage of the community who owns the community s land and is in charge of the community ritual in the kaneak vil (sacred forest) held once a year after the completion of the agrarian calendar. Marriages occur according to the status of the inhabitant; the first inhabitant gives its daughter to the new comers but the reverse is strictly forbidden. And all marriages in the communities are traditionally dictated according to this regulation. If there are two sisters, the son of the younger sister can marry the elder sister s daughter, but the elder sister s son cannot marry the younger sister s daughter. Regulations are complexes but the area of concern regarding gender is that when getting married, a woman is indebt for her whole life and will have to work hard to repay the dowry spent to acquire her labor from her family. 5.7 Socio-economic settings Poverty profile The National Growth and Poverty Eradication Strategy (NGPES) is central to the national development agenda and encapsulates the essence of the Lao PDR s approach to the achievement of the goal set in 1996 by the 6th Party Congress, namely, that of exiting from the group of Least Developed Countries (LDCs) by In this strategy, high priority districts for poverty alleviation and development efforts were identified. These are presented on Map A.8. At that time the most relevant and reliable data for poverty monitoring available was at the district level thus priority was given to this level. Moreover, co-ordination, consultation and participation can best be achieved at the level of the district. The Prime Minister s Instruction No 010/PM resulted in the definition of a poverty line together with different poverty criteria allowing local authorities to identify and monitor poverty at the district and also at the household level. Poor districts were those districts where over 51% of the villages were poor. There were additional criteria which included districts where over 40% of the villages were without a village school or one nearby, or were without a dispensary or pharmacy, or if over 60% of the villages had no access road or were without access to clean water. On the basis of these criteria, 72 out of the 141 districts were identified as poor with 40 identified as very poor. For reasons of national equity, seven of the remaining 32 districts were added. These districts have an incidence of poverty of 70%, the highest, as calculated from the number of poor households. The incidence of poverty in the remaining districts is 35%. The 73

82 average incidence of poverty of all the 72 poor districts is 55%, which is significantly higher than the 23% poverty incidence in the remaining non-poor districts. The poorest districts are clustered in the north-west of the country in the provinces of Luangnamtha, Bokeo and Oudomxay and in parts of Phongsaly province. From Huaphanh province they then follow the Vietnamese border and the Phou Luang (the Annamite Chain) down to the south-eastern tip of the Lao PDR. In terms of topography the poorest red districts can be found mainly in the mountainous and highland areas where accessibility is often difficult. Interestingly, only very few of the poor priority districts can be found along the border with Thailand. Most of the non-poor districts are located along the Mekong River, the Lao-Thai border, and also on the main roads from the north to the center of the Lao PDR. Oudomxay is the poorest province with 500 poor villages (91.6%), followed by Bolikhamxay (88.2%/134 villages) Attapeu (86.1%/99 villages) and Sekong (85.5%/3,966 villages). Sayabouly has the least number of poor villages (47.4%/136 villages). Table 9: Number and Percentage of Poor Villages and Households by Province using the criteria of PM Decree No Target district poverty profile There are 983 target villages in 59 districts in the 12 provinces targeted by the SUPSFM project including 17 very poor districts, 14 poor and 28 non-poor districts. Table 10: SUPSFM target districts poverty profile 74

83 Status Very poor districts Poor districts Non-poor districts Amount: Names Bolikhan, Dakcheung, Hom, Kaleum, Long, Meung, Nalae, Namor, Nga, Pakbeng, Phaoudom Phin, Phouvong, Sanxai Taoy, Thapangthong Vienthong Bachiang, Boualapha, Feuang, Khop, La, Mahaxay, Met, Pathoumphone, Sanamxay, Sukuma, Tumlane, Xaybouathong, Xbouli, Xienghone Population 87, , ,046 Nb of women 43,596 72, ,806 Bolikham, Boten, Houayxai, Houn, Kasi, Khongxedon, Lamam, Laongam, Meune, Ngeun, Pakkading, Paklai, Paksan, Pakxan, Palanxay, Phieng, Salavan, Sanakham, Saysetha, Songkhone, Vangvieng, Vapi, Xanasomboun, Xay, Xaysomboun, Xebangfai, Xienglouang, Xonlabouli Sanxay district in Attapeu is the poorest district of the country followed by Kalum in Sekong and Phouvong also in Attapeu. The table below displays the list of the 17 poorest districts and their rank according to the NGPES. Table 11: Rank of the 17 poorest districts targeted by the SUPSFM project per province Province District Poverty Rank Population Female Attapeu Sanxai 1 11,478 5,692 Sekong Kaleum 2 10,133 5,050 Attapeu Phouvong 3 6,912 3,530 Bolikhamxay Vienthong Oudomxay Pakbeng Saravane Taoy 9 4,112 2,064 Louang Namtha Long 10 1, Bolikhamxay Bolikhan 16 6,652 3,245 Sekong Dakcheung 17 6,103 3,080 Louang Namtha Nalae 18 1, Bokeo Meung 20 2,493 1,166 Oudomxay Nga 30 8,570 4,087 Vientiane Hom Bokeo Phaoudom 33 5,829 2,796 Savannakhet Phin 35 4,698 2,358 Oudomxay Namor 38 3,190 1,631 Savannakhet Thapangthong 42 13,288 6,670 9 provinces 17 districts , Vulnerable groups Poverty and ethnicity While poverty levels are high across the country, districts identified as the poorest are indicative of the correlation between poverty and geography (highest in upland, remote and inaccessible locations); ethnicity (with ethnic minority groups, particularly those belonging to the Mon- Khmer ethno-linguistic group being amongst the poorest) and severity of UXO contamination, with communities living in the most contaminated locations being among the poorest in the country. As shown in the table below, if the 10 The population does not include the number of women for Xaybouathong district. 75

84 Mon-Khmer represents only 20.6% of the country s population, they account for 54.3% of the country s poor. Table 12: Ethnic Groups and Poverty in Lao PDR % of National Population Incidence of Poverty Headcount Index (% of population) Total Lao PDR By Geographic Area Urban Rural With all-season road 31.4 Without all-season road 46.2 By Ethnic Group Lao-Tai Mon-Khmer Hmong-lu Mien Chine-Tibet Source: World Bank 2005 based on LECS3 11 Ethnic minorities are unequivocally the most vulnerable groups in Laos. They are at the very bottom of the social structure, stereotyped as backward, environmentally destructive and counterproductive. They also face territorial, economic, cultural and political pressures. Disabled people A total of 70,261 people in 65,015 households in the Lao PDR are reported as having a disability. This comprises about 8% of all households and about 1.3% of the total population. When compared to the World Health Organization s (WHO) estimate that up to 10% of a population will have a disability, these figures for the Lao PDR appear to be very low. The main challenge relating to disabled individuals in Lao PDR is that there is no accurate or precise data on disability nationwide and no nationally recognized classification of disability (Lao Socio-Economic Atlas). While most people with a disability are found in urban areas, many rural areas are affected by UXO contamination including eastern Sekong & Saravane provinces in Southern Laos and Xieng Khouang and Houaphan provinces in the Northern Part of the country Economics and livelihood Out of the ten village only one village accounted approximately 90% of average wealthy (1,080,000-5,000,000 LAK/month) households. One village had about 50% of average wealthy households. The remaining eight villages were categorized as poor (1,080,000 LAK/month) households. Only one village does not make use of any credit system, all the other communities are receiving credit from friends or relatives, or in some case the village saving/development fund. Most household loans vary between 0-5,000,000 LAK some households loan up to 10,000,000 LAK and occasionally they loan beyond the 10,000,000 LAK. Poor households are primarily relying on fishing, hunting and NTFP collection (score 33) as their livelihood strategy, livestock raising (18) and lowland rice cultivation (15) are almost half less important. Average wealthy households seem to be most reliant on livestock raising (11) and cash crop farming (10). Fishing, hunting and NTFP collection amongst these households is almost half less important (6). Upland rice farming and upland gardening is significantly higher in importance amongst the poor households compared to the average wealthy households. Any access or user 11 LECS3 refers to the third Lao Expenditure and consumption suyrvey conducted underthe National Statistic Center. 76

85 restrictions to natural resources inside PFAs deriving from this project would increase the vulnerability of the communities, especially for those poor households who are have a high level of dependency on NTFPs for their livelihood. This issue is further discussed under Section 3.2. Trends and seasonality Important recent cash crops in Long district are banana and rubber. In Oudxomay districts these products were complemented by production of cotton for the provincial handicraft industry. In both Luangnamtha and especially Oudomxay the corn is also important cash crop for farmers. Chinese traders have approached villages which are located near the paved road in the valley and agreed with them to lease their paddy land for banana plantation and there sloping land for rubber plantation. Anecdotal evidence suggest that these entrepreneurs are part of a Chinese conglomerate, who operate according to the 2+3 method. This means that villagers will provide labor and land and the Chinese company provides financial investment, technical assistance and market. Contract being made are not very favorable for the farmers and by leasing out their farmland for several years makes them often reliant on the income from labor in the fields, hence the villagers become very vulnerable for shock or market fluctuation. To offset this vulnerability the villagers have been reported to encroach certain parts of the conservation and protected forest areas to grow upland rice. This issue will be further explored in Section 3.2. Social structure and grievances Most of the villages have established some type(s) of village organizations and committees. The organizations mentioned most often are the Micro Credit and the Livestock organizations each four times. Second most common is the Farmer organization, which is established in three villages. Rubber, rice bank and handicraft groups have been established each two times. Village Forestry organization and Bamboo organization are only mentioned ones. Village grievances committees said to have been established in most of the villages, however they are not the only ones dealing with grievances, since communities often also use the village headman, family and village elders for grievance resolution. The main type of grievance is between families, secondly most important are the grievances related to forest. Grievances regarding NTFP s, aquatic life are less important and conflict regarding land is considered as least important Education According to the 2005 census 23 percent of the population had never been to school, 28 percent were at school and 47 percent had left school. A much higher percentage of women than men had never been to school, 30 percent for women compared to 16 percent for men. 12 percent of Lao had never gone to school and a few other groups have attendance below 20 percent. Among the larger ethnic groups 33 percent of Khmou had never been to school, 42 percent of Hmong and 25 percent of Phouthay. For Tri, Akha and Lolo the percentages of never been to school are as high as 75 percent and more. However, there have been improvements for all ethnic groups but females are behind in all groups; low differences among some groups such as Lao, Ngouan, Thaineua, Thaen and Moy or large differences for groups like Lamed, Katang, Ta-oy, Cheng, Sdang, Pacoh and Hmong. 77

86 Table 13: Percentage Completed Primary School in 1995 and 2005 Table 14: Percentage Completed Lower secondary School in 1995 and Source: National Statistic Center: 78

87 Literacy rate The literacy rate differed considerably among the ethnic groups (see table 4.9). The rate was higher than national average for Lao ethnic group was 85 percent, Moy 84 percent, Ngouan 81 percent, Thainuea 80 percent, Tai 77 percent and Lue 76 percent. The rate was in particular low for Lahoo, Akha, Lolo and Tri. With the exception of Lao the literacy rate for the minorities were 55 percent. This is relatively low compared to Lao ethnic group, for female minorities 41 percent of which Lao females 79 percent, and for male minorities 70 percent of which Lao male 91 percent. Thus women in particular are lacking behind men among minorities. Table 15: Literacy rates by Ethnolinguistic Groupings (1995) Taking into account ethnic minorities low level of literacy and proficiency in Lao language, SUPSFM should consider developing ethnic-gender sensitive training material in local languages or using local facilitators and all information supplied orally should have written text accompanying and poster or other type of material should be considered as well. 79

88 SUPSFM should adopt a formal strategy on ethnicity and develop a culturally sensitive approach to programming to ensure that ethnic minorities and vulnerable segments are not marginalized in the process and that resources are mobilized to increase knowledge about ethnic groups and involve ethnic issues in project planning, monitoring and evaluation. The low literacy level of the Tibeto-Burmese groups will be a main constraint in implementing the SUPSFM project in the three northern provinces. Local languages should be used and promoted as much as possible during activities at field level and during training in order to ensure beneficiaries understanding. Manuals, project information and documentation should be made available in local languages as much as feasible. 5.8 Health Human trafficking Human trafficking is on the rise in Asia as people flee poverty and conflict. Better transport and communication links contribute to the problem. According to a recent study by the Swedish Government, human trafficking ranks third, (after drugs and arms smuggling), in the scale of organized crime. Women and children are the most vulnerable. They are used for commercial sex, domestic labor, and construction work. Children are also in demand for factory or farm work or in the entertainment sector. Trafficking amounts to a gross violation of human rights and hampers the struggle to end poverty and gender inequality in Asia. One effective way to reduce the degrading trade is to address the factors that render women and children vulnerable HIV Official data on blood tests for HIV/AIDS indicate increasing levels of incidence: the number of deaths from HIV/AIDS has also increased from 72 between 1990 and 2000 to 24 in 2001 alone. 13 A recent study by CARE International s STD Training and Education Materials Project in Louang Prabang and Oudomxay suggests that outreach program should focus more on at risk populations groups, namely female traders, truck drivers, male government officials, commercial sex workers, and ethnic minorities 14. The Project may lead to negative impacts in terms of higher exposure of local population to HIV/AIDS and STD. In Louang Namtha, the numbers of nightclubs/bars and women selling sex in towns (and recently villages) along the road is growing steadily. Against a backdrop of rapid proliferation of commercial sex sites, the specific nightclubs and bars are constantly changing, with venues closing and new ones opening. Lyttleton escribed well the expansion of sexual networks in Louang Namtha: Remoteness and limited range of multi-partner sexuality coupled with the absence of needle based drug abuse are key issues in the apparently low rates of HIV infection in most of Lao PDR. Route 17B represents the concrete dismantling of elements of these boundaries. Multi-partner sexuality is typically associated with the ethnic peoples living in and around Sing and Long. However when sexual interactions create networks that extend beyond cultural groupings the potential for infection is increased dramatically Official data from NCCA, dated 22 March CARE International in Lao PDR. STD Training and Education Materials Project, Mid-Term Evaluation, November C. Lyttleton, P. Cohen, H. Rattanavong, B. Thongkhamhane, An ethnographic study of social change and health vulnerability along the road through Muang Sing and Muang Long,

89 5.8.3 Use of health services Utilization of health care services is very low (0.1 annual patient visits per person in some rural districts). Less than 30 per cent of people in need of medical services turn to the health system for help (MIC survey, 2000). Barriers to utilization include language and cultural barriers, poverty and lack of money to purchase services and medicines, limited education and distance/lack of roads to access health centers. For those who do seek treatment, the quality of curative services is extremely poor: treatment guidelines are outdated and often not followed; skilled human resources are scarce; and facilities are often in poor condition and lack basic equipment. Financial resources are scarce and inequitably distributed. Capacity of health sector workers, administrators and managers is very low. 5.9 Livelihood settings Although most of these groups practice swidden or rotational rice cultivation as their main livelihood strategy, differences are observed in exact time and resource allocation per livelihood activity. In addition to cultivation and other farming practices, ethnic groups vary in their off-farming practices, use of the forest, gender issues, and other cultural practices that shape their overall lifestyle. The groups have considerable variation in terms of social organization, culture, land use practices, food security, Lao language competency, resource access, gender roles and participation in local development planning processes. Many ethnic groups are vulnerable to shock, trends and seasonality. These include, however are not limited to: resettlement to lowland areas with limited agricultural land combined with a need to continue use their old and far away areas, changing market prices, in and out migration. While looking at the livelihood strategies of these ethnic groups it can be observed that food security is often a primary concern for ethnic minorities. Non Timber Forest Products (NTFPs) are an important source of nourishment and they are also a major source of income. Rural people are generally highly dependent on forests especially as sources of food, raw materials, traditional medicines and revenue. In many areas, villagers may obtain half of their income and also protein from NTFPs. It is often the poorest that are most dependent on NTFPs and for whom forests act as a safety net during times of need. Between 20-55% of household subsistence and/or income may be derived from NTFP, but this figure may rise as high as 90% for the poorer households. There is a very close link between the forest and women s life, as they are the persons who visit the forests regularly to collect fire wood and food e.g. vegetables, bamboo shoots, mushrooms, wild berries, and medicinal herbs so they know the forest intimately Land issues Land is, of course, the most valuable and, often, a sacred asset held by communities. Access to land and resources are traditionally associated with particular ideas of territoriality; whereby, land is managed by a community that has exercised communal rights over that land. In essence, management of land is governed by the consensus of the socio-political group - or emanates from the group it governs. Concepts of land ownership and entitlement to land use vary from ethnic group to ethnic group. 81

90 The clash between customary uses of land and the allocation or confiscation of customary land for development under state law or policy has had a deleterious, occasionally devastating, impact upon some ethnic communities. The lack of formal recognition of the full range of customary land usage practice means that ethnic groups have an inadequate legal platform for mounting their claims so they might be considered by courts. While there have been some adjustments made that allow for greater recognition of customary land rights - e.g., of subsistence needs in the Decree on the Management and Use of Forest and Forest, Land 27 and the recognition of communal land contained in Directive 564 under the National Land Management Authority (NLMA) there still remain large gaps, with the law only offering limited recognition of rights and reliable implementation of protections of customarilymanaged land, as well as a lack of progress made in relation to informing and empowering communities to act upon their rights when land disputes arise. Engaging with customary law authorities on the customary use of land, and achieving a clearer and more comprehensive legal regime protecting customary use of land, should contribute to the sustainability and stability of economic development efforts. Aside from causing great unhappiness and undermining ethnic communities livelihoods and ways of life, the failure to provide due recognition of customary land rights, or just compensation, can create tensions that threaten to turn into protest or even criminal damage against state and commercial interests; potentially creating instability and making Lao PDR a less desirable place for investment and economic growth. Moreover, some customary concepts of responsibility are not upheld in state law Livelihood and agricultural production systems Agricultural system practices are dynamic and influenced by many factors such as land availability, land quality, land tenure, population pressure, climate, market facilities, labor availability, food preferences, ethnicity and government policy. Agriculture is a key economic activity in Lao PDR, of which rice is the most important crop, contributing about 60% of total agricultural production. Over 90% of rice is grown under rain-fed conditions. In the lowland environments this accounts for 70% of the area and 76% of total rice production while in the upland environments, rain-fed production accounts for about 21% of the area and 14% of total rice production. Livelihood and land use systems in Laos have been described by Raintree and Soydara (2002). They stressed that most rural households in Laos practice "multi-livelihood" strategies that involve a mixture of subsistence and income-earning activities. Recent studies indicate that rural villages engage in no fewer than 8 and sometimes as many as 15 distinct activities; combining hunting and gathering with agriculture, horticulture, animal husbandry and forestry to achieve a measure of livelihood security. The principle elements of livelihood security are farming systems, dependency on the forest and the harvest of wild animal and plant NTFPs. There are basically three main systems of agricultural cultivation in project areas: lowland rice paddies (both irrigated and rain-fed, though there is very little irrigation in the SUFORD or SUFORD-AF project areas); upland rotational (swidden or shifting) cultivation; and plateau plantation agriculture. Raintree and Soydara [2002] stressed that these three systems are actually points on a continuum of practices that most often grade into one another. Any one of 82

91 these systems is almost never practiced to the exclusion of the others, particularly at the points of transition from lowland to upland and upland to highland. The characteristics of these three systems are described as follows. Lowland rain-fed systems involve one annual cropping of traditional paddy rice varieties (2-4) with yields between 1 and 3 tons/ha. Buffalo and cattle are used as draft animals, for cash income and sometimes for meat. They are free-ranging during the dry season and confined by tethering, often in adjacent forest areas, during the wet season. Domestic pigs, poultry (chickens, ducks and turkeys) and aquatic/terrestrial NTFPs are important for food and cash. One to four month rice shortages are common and household incomes are generally low. Upland rain-fed systems involve rotational swidden cultivation of rice (yields of tons/ha), inter-cropped with cucumber, chilis, taro and sesame with fallow periods of 3-10 years. Maize for sale and animal fodder is the second most important crop, but sweet potato, ginger, cassava, groundnuts, soybean, sugarcane, papaya, coconut, mango, bananas and citrus are also important. Melons and watermelons may be important dry season crops. There is a very high dependence on animal and plant NTFPs both for subsistence and for cash income to purchase rice. Adoption of rain-fed paddy is common wherever topography and soils (both serious limitations) allow. Three to four month rice shortages are characteristic of these communities, along with low income, poor health, high infant mortality, low life expectancy, and little access to services. Plateau farming systems in the project area are principally situated on rich volcanic soils (i.e. Bolaven Plateau) that allow commercial cropping of coffee, tea, and cardamom, supplemented by tree fruits and vegetables in home gardens Rubber plantations The cross-border rubber sensation, seemingly sudden, stems from a mix of policy and market factors. On the Lao side, the provincial government explicitly promotes rubber as a means to stabilize shifting cultivation and alleviate poverty. Across the border, China s rising demand for natural rubber, driven by its rapid economic growth, is trapped with a stagnant domestic supply and soaring world prices for natural latex. Owing mostly to land scarcity, Chinese investors and villagers are increasingly looking to its neighbors for potentials in rubber cultivation. The Chinese government also encourages rubber investments abroad by offering favorable policy incentives and generous subsidies to businesses through the Opium Replacement Special Fund. Lastly, Luang Namtha villagers, inspired by their Chinese peers, have increasingly come to regard rubber as a promising pathway to a prosperous future Chinese mu In northern Laos, farmers are often not using the national or international measurement system, but the Chinese area unit system. This indicates well the importance of the Chinese trading network with farmers who calculate the yield of their crops in unit per 1 mu ( 亩 ) = 10 fen ( 分 ) = hectare. There is also Chinese technical assistance often based at community level that provides seeds, technical support, and market. 83

92 5.9.3 Forest Use and Management (shifting cultivation, legal systems traditional versus state, land rights) NTFPs Biodiversity is of critical importance to many people's livelihoods in Lao PDR, as well as the national and local economy through the use and trade of non-timber forest products (NTFPs). It is estimated that about half of the cash income in rural households in Lao PDR is derived from NTFPs (STEA, 2004). NTFPs also provide an important source of food and medicine for subsistence use in most local communities. A very high diversity of forest products have been recorded as being part of the daily diet of rural Lao families. Over 700 edible NTFPs have been recorded so far, including edible shoots and other vegetables, fruits, tubers, mushrooms and wildlife. There are limited previous studies of NTFP harvesting and trade in northern Lao PDR. Studies that have been conducted indicate that NTFPs are commonly used by villagers are of significant importance for food security and livelihoods. NTFPs are especially important for families in upland areas, where shifting cultivation is commonly practiced. In a study of NTFPs in upland areas of Lao PDR (Foppes and Ketphanh, 2005), NTFPs provided an average of around 45% annual family cash income. It was also highlighted that cash income is only a minor part of total family income. Most NTFPs collected are directly consumed by families. As most households in upland areas are unable to produce enough rice to feed their family all year round, collection of NTFPs is important coping strategy, particularly for poor families. NTFPs therefore play an important role in maintaining food security Opium cultivation The Lao government has also banned opium cultivation, declaring the country opium-free in But in 1997 about 60% of highland villages in Long district in Luangnamtha province grew opium. The total area and volume of production is high compared to other districts in the province, including Muang Sing. In 2002 the area of poppy cultivation in 53 cultivating villages in Muang Long was estimated as 638ha. Or 47% of the total area of poppy cultivation in Luang Namtha province. The volume was 4.8 tonnes or 51% of the total volume produced in the province. Opium productivity in Muang Long in 2002 was also the highest in the province at 7.3 kg per ha. Some highland villages grew opium extensively such as Jakhamlu (30ha) and Mone Laem (59ha). The Hmong village of Mone Laem has long been (and still is) a source of opium for local villages that do not grow opium and surpluses were traded across national borders (in particular to Myanmar). Subsequent near-eradication of opium over such a short period has placed a heavy economic burden on highland communities. Opium is still cultivated in northern Laos; existing only in very remote and isolated areas, cultivation in Laos increased from an estimated 1,600 hectares in 2008 to about 1,900 in The factors driving the recent increases are diverse and complex. Opium cultivation is strongly linked to poverty, which is not just a function of income, but is driven by a range of socioeconomic and security related factors. 84

93 5.10 Exposure to external market Traders The upgrading of route 17B that connects the Sing market with the now bimonthly Xiengkok market has ushered in a wider network of trade and far broader expansion of people movement into the towns and rural communities and back and forth across borders. The types of goods and their trade have also been transformed. In a microcosm of global changes throughout the world, increased flows of people, trade items and ideas move into and through the area, in turn, leading to changing lifestyles in a broad range of sectors. Route 17B links China with the Mekong across river from Burma and upriver from Thailand. The Xiengkok border post provides a ready access point for Thai and Burmese traders and travellers who reach Lao territory from the river. From the Burmese town of Chiang Lap (a large Lue town about 15 kms upriver) traders come to sell goods such as cotton, cosmetics, silk, perfume, soap, tobacco, food, coconuts, dried fish, and fresh-water seaweed at the bimonthly market in Xiengkok. Others come to purchase buffaloes and cattle in the mountain regions. An arrangement between Muang Long and Tachilek in Burma allows officials to get together each year for sports and arts exchanges. Along the way, Burmese men who visit Lao will occasionally spend time in the growing number of bars that provide hospitality services. Thai traders usually come to buy timber and buffalos. An influx as Lao and Chinese trade agreements were reached that opened up economic relations between the Laos and China. Since then there has been a dramatic increase in the numbers of Chinese, some working legally, others operating clandestine trade (such as in protected animal and plant species) beneath facades of legitimate businesses. While only a small number of petty traders come from Thailand and Burma, they are eclipsed by the current Chinese influence, which ranges from individual traders selling any number of items from vegetables to nail-clippers in the market or travelling medics selling injections and vitamins in the more remote villages or the entrepreneurs who trek through the mountains collecting human hair for doll factories, or less scrupulous traders buying endangered turtles through to small factories producing animal feed, processing rice, liqueur or wood, and a copper mine. They themselves are ethnically diverse - Chinese Akha, Chinese Lue and Chinese Haw - and this has significant implications for the differing styles of social interaction that emerge as a consequence of their presence Infrastructure and existing markets Louang Namtha, Oudomxay and Bokeo are surrounded by three countries with booming economies. There is a long shared history of trade and exchange between the people of Luang Namtha and those of the Chinese province of Yunnan. These provinces not only share a common border but also share the same history with a big percentage of the population being related or sharing family networks. Because of such strong connections, the people on both sides of the border have long established business relationships which have now become even deeper. 85

94 Louang Namtha province has five check-points three of which are major. The most important is Nateui International Check-point - a gateway for overland travel and trade between China, Myanmar and Thailand - about 20 km from Mohan in China and 37 km from Namtha town. It is the main frontier for Chinese-Lao trade. Pangtong Check-point in Sing District is used for most of the informal Chinese trade not only facilitating trade with Luang Namtha but also with other parts of the country including Oudomxay and Xayaboury. Last but not the least, is Siengkok Check-point bordering on Myanmar and acting as a major channel for transit trade with Thailand. Luang Namtha has two other checkpoints - Huakong which shares borders (across the Mekong river) with China and Thailand and is used mainly for patrolling the waterways - and Ban Mom - a traditional checkpoint in Sing District which is mainly for immigration and where technically no trading activity is allowed. Traders (local and foreign) complain about lack of supplies and low quality; they are eager to buy larger volumes and pay higher prices for better quality. According to Vernon (2006) priority products for the uplands should be forages (especially legumes such as stylo), cattle, goats and soybeans. Several NTFPs are also recommended. In the case of Oudomxay, all of these products are currently produced and have ready markets. These products can also improve agricultural sustainability. Planting of tree crops (e.g. for timber) using funds raised from the sale of carbon credits also appears to be a promising opportunity. Maize is the main export crop in Bokeo province. Cultivation has expanded considerably in recent years, particularly along the river, on the border with Thailand. While nearly all production is sold across the border and channeled to the Thai animal feed industry, in recent years part of the harvest has been exported to China through Luang Namtha province. In Bokeo individuals, companies or farmer groups are given exclusive purchasing rights over small maize production areas, usually within a cluster of two to five villages. In exchange, these agents must provide production services within the allocated area and purchase the local harvest. At a minimum, monopsonistic agents must supply hybrid seed on credit, with its cost and perhaps some interest being deducted upon the sale of the crop. The sale of fertilizer on credit is also common; land preparation services and the supply of herbicides less so. The policy of allocating specific production areas to contracting agents was already in place in early Most of the villages visited had all year access to the district markets which were most of the time not further away than 20 kilometer. Villager do visit the district markets on regular basis varying from everyday to 1-2 per week. Products available on these markets include, however are not limited to: cooking utensils, linen, farming hardware, construction materials, agriculture chemicals, food products etcetera. Villagers could either use public transport, which was daily available in most villages or own private transport. All but one village were connected to the electricity grid and most of them had access to protected spring water. UXO was not considered an issue in the area. Whereas almost every village had a primary school, only two villages had a secondary school. Village dispensaries and village health centers were only sporadic available. Village development activities, plans and expected impacts Most of the villages received some external development assistance and have plans to develop the village further. The assistance varied from livestock and poultry raising (5 villages) to environmental health and family planning activities (4 villages each). Amongst the topic most mentioned when discussing village future development plans were livestock and agriculture 86

95 expansion, second most important for the communities seem to a variety of infrastructure improvements. Most of the communities belief that the project will have funds available to improve the livelihoods and that improvements will be made to the forest. Some communities are hoping to receive support in the form of livestock and agriculture. All but two communities believe there will be no negative impacts. The only negative impacts expected are when communities do not follow the plans which will be mutually prepared and agreed upon. Constraints As pointed out by Vernon, a serious constraint on the development of agriculture in Oudomxay is overregulation of trade by the government. There are too many quotas, fees, taxes, licenses, documents and price controls. To take one example, a farmer wanting to sell his buffalo in Vientiane would have to waste one or two weeks obtaining 9 official documents and paying numerous fees and taxes. Taxes and fees paid by traders are actually deducted from the price paid to the farmers; in other words it is farmers (even those who are very poor) who are paying for the taxes and fees collected from traders by the government. The only way traders can survive government regulations is by being dishonest, for example, when exporting 16 tons of NTFP they may declare and pay taxes/fees for only 4 tons. Another anomaly is that the Lao government puts its own exporters at a disadvantage compared with Chinese traders. Lao traders are required to obtain licenses, quotas and pay fees and taxes, but very often Chinese traders avoid all these costs and simply pay bribes at the border; consequently their marketing costs are often lower than those of Lao traders so they are able to pay farmers higher prices. This is good news for farmers, but bad news for Lao traders. The fact that farmers in Bokeo do not have the right to sell to anyone but the authorized buyer is particularly costly when the agent in question is exploiting his or her monopsonistic position to offer poor services to farmers, charge them high prices for inputs, pay low prices for their crop, or a combination of these. The policy also creates plenty of opportunities for rent-seeking by well-connected individuals, who may gain exclusive marketing rights on account of their influence over local government officers and perhaps the payment of bribes. While complaints from farmers and local officials may result in the re-allocation of purchasing rights, monopsonies are not subject to any periodic assessment. There is therefore too much room for discretionary decisions from local government structures. Ideally, the allocation of maize trading licenses, and any decisions about who gets such rights and over which areas, should be based on a formal and independent review system (Wandschneider, 2011) Contract farming In the investment for industrial tree plantation, the Government promotes the 2+3 contract farming. This type of investment involves the joint participation between the villagers (land owners) and the investors whereas the inputs from villagers are the land and labor while the investors have to take care of capital, technical inputs and marketing. The sharing of benefit will be calculated based on the amount of production or interest gained in which the villager will receive 60-65% and the investor 35-40% depending on the agreement initially reached by both parties. The villager s owned land is mostly a private land with or without documents, in the 87

96 form of small plots which can be less than 1 ha, and scattered in many places. The participation of the villagers is on the voluntary basis of each family. The Luang Namtha government officially promotes a 2+3 contract farming model with generally 70% of the proceeds (profit or products) going to villagers and 30% going to the investor. The province felt that this arrangement, compared to concession, provides villagers more secure access to their land and a stronger sense of ownership in the plantations (Shi, 2006). In Oudomsay province such contract farming modality has been widely implemented. In Oudomxay province, there were 10 projects in which the investment contract were concluded under the 2+3 contract farming with the total approved area of 28,109 ha, including the plantation area for rubber, cassava, banana and jatropha. Shiw s survey on the ground (2006), however, indicates a vastly different picture than the official version. With few exceptions all villages contracting with large investors in Sing and Long operate under a 1+4 model: villagers give only land; companies do planting and maintenance with hired labor (either from the village or elsewhere) for a certain number of years, until a partition of tree, land, latex or profit occurs. Villagers then typically get no more than 30% of the partition, companies claiming the rest Contract Farming This modality is also called the concession-like contract farming. Villagers are providing investors with land (village land), which was often already given out and promised (in terms of size) in a deal beforehand between district authorities and investors. Often the village head is responsible to find the amount of land required. The land plots are normally much bigger than those provided to investors within 2+3 modality. The whole area will be planted by the company, and after an agreed number of years the responsibility of handling a certain proportion of the planted land will be given back to the villagers. From this moment on villagers will have to take care of this area. The larger rest of the land will be further developed by the company, using also its own labor force. Such contracts may last up to 20 years. The benefit for the villagers derives actually only from the profit they will achieve from the production on their own village land. They will also be responsible to sell the products. The share of benefit will be based on the number of trees after 1-8 years of planting with many different rates, whereas villagers will get 15-60% and the company 40-85% of the total number of rubber trees, depending on the agreement reached by both sides. Most of such contract farming is done on communal village land, former production forest, fallow forest after shifting cultivation and sometimes even on agricultural land. Land areas can be as big as 500 ha, but are at least ha big in most of the cases. Contracts are often not clear about sharing the benefit. Until now all companies involved in 1+4 contract farming are still responsible for the whole planted area. With beginning of next year some first plantations will go back into the responsibility to villagers for the first time. Then it will be seen how the handling of those plantations will be managed and by whom. In louang Namtha province, out of the total 147 projects which use state land for concession, lease or 1+4 contract farming: 103 projects are implemented and active; 2 projects have not shown any activity so far; 1 project was stopped temporarily; 18 projects were approved but have never started (e.g. because of running out of funds, unsuitable 88

97 land); 19 projects already were completed according to the contract, were cancelled or stopped before the end of the contract period (Inthavong, 2009) Tourism Lao PDR possesses a scenic and often mountainous natural environment, and contains a population with many traditional cultures; characteristics that form the basis for the promotion of tourism development in the country. Lao opened its borders to international tourism in 1989 and, since then, the industry has developed rapidly to become one of the country s largest and most dynamic earners of foreign currency income. Tourism is an important and growing component of the Lao PDR economy. Tourism is one of the main industries driving Laos economic growth and is included among the GOLs 11 priority sectors to support national socioeconomic development. Tourism contributes to national and local economies by: Introducing foreign currency; Facilitating domestic financial liquidity; Supporting investment in domestic sectors such as hospitality and transport; Creating significant employment opportunities; and Distributing income to rural and remote areas. The tourism sector also constitutes one of the 11 flagship programs in the 10-year strategic framework of the Greater Mekong Sub-Region (GMS) Economic Cooperation Program. This recognizes the important contribution that tourism makes to socio-economic development (especially poverty reduction) and conservation of natural and cultural heritage resources. According to the Lao National Tourism Administration (LNTA) the international tourist arrivals in Lao grew from 14,400 in 1990 to 2,008,363 in 2009, an average growth rate of 20.53% per annum. In 2009, over 2 million tourists generated approximately US$268 million, making tourism the third most important sector in the Lao economy in terms of revenue, after mining (1 st ) and hydropower (2 nd ) sectors. Tourist stays in Lao are becoming longer. The average length of stay by tourists between 2001 and 2009 is approximately one week (rounded 6 to 8 days) compared with an average stay of five (5) days between 1993 and 2000 (LNTA, 2008). In the northern provinces of Luang Namtha, Bokeo and Oudomxai there is a burgeoning tourism sector, originally from a trickle on from the UNESCO World Heritage listing of Luang Prabang but now forming into its own niche on the back of cultural and ethnic minority aspects and wilderness. Ecotourism is promoted widely by the provincial ecotourism offices, with a number of private operators offering activities in protected areas and Production Forest Areas (PFAs) including guided treks, bird-watching, home-stays, camping trips, mountain-biking and rafting expeditions. 6 ENVIRONMENTAL SETTING 6.1 SUPSFM Components 89

98 SUPSFM Component 1: will provide continuing implementation support to Production Forest Areas (PFAs) with existing forest management plans, and initiate forest management planning in additional PFAs in existing SUFORD and SUFORD AF provinces. Environmental settings for these areas has been documented under previous studies, including the ESIA for SUFORD (2002) and ESIA for SUFORD AF (2008). Refer to these documents for the environmental context of SUFORD activities. This ESIA does however discuss the impacts of new SUPSFM activities of Component 1 on these environments, but does not outline the environmental setting in detail. SUPSFM Component 2: will focus on supporting the adoption of a forest landscape management approach for forest and biodiversity resources in Northern Laos, and include PFAs in the provinces of Oudomxay, Luang Namtha, Bokeo and Xayaboury. FLM offers a cross-sectoral and integrated approach to manage development activities, minimize negative environmental impacts, mitigate climate change, and reduce poverty. This approach has not yet been implemented in Lao PDR. The model will be developed in close collaboration with both ADB and KfW and the focal area will include contiguous production, conservation and protection forests. The following sections refer primarily to descriptions of environmental conditions for northern PFAs that will be funded under this component. SUPSFM Component 3: is intended to strengthen legal and regulatory frameworks for implementation of PSFM and REDD+ at sub-national levels, and frameworks for FLM and will be developed at the national level. Support will also be provided to enhance monitoring and dissemination of information in relation to timber management and salvage logging. As it is focused on the regulatory aspects of forest management on-ground activities are not part of this component and do not require any impact assessment. Signficant support will also be provided under this component to strengthen forest law enforcement at national and sub-national levels. FLEG support is expected to have a wholy positive impact on forest and biodiversity management especially as synergies are expected from the increased inter agency coordination achieved through the implementation of the landscape approach. SUPSFM Component 4: This component will cover project management at the national and subnational level, Technical Assistance, and Monitoring and Evaluation. The Government of Finland - Technical Assistance will provide national and international consultants, and, capacity building and training to support expansion of SU-PSFM in PFAs, strengthen forest law enforcement and governance, support forest sector policy reform, build capacity for participatory land use planning, support development of sustainable livelihoods, and undertake analytical work as required to meet the overall objectives of the SU-PSFM project. On-ground activities are not part of this component and impact assessment is not required Regional Environmental Setting Physiography and Vegetation The region of the FLM component is part of the Northern Highlands physiographic unit of Lao PDR. This area covers most of northern Lao PDR and consists of rugged hill and mountainous topography, mostly between 500 and 2000 m ASL (Above Sea Level). Almost all of the Northern Highland area drains into the Mekong River. The provinces of Bokeo, Luang Namtha and Oudomxay intersect the Northern Indo-china Subtropical Forests Eco-region (Xayaboury lies further south), as defined by the World Wildlife 90

99 Fund for Nature ( The geographical extent of this large eco-region includes parts of the highlands of Myanmar, Lao PDR, and Vietnam, as well as southern China. The area is generally mountainous, with peaks reaching up to 2,000 m ASL, while the major river valleys lie at an elevation of m ASL. In Xayaboury elevation ranges between 450 to 750 m ASL. The vegetation of this ecoregion is typically tropical forest. Types of forest occurring in the area include tropical seasonal rain forest, tropical montane rain forest, and evergreen broad-leaved forest and monsoon forest (Wikramanayake et al., 2002). The area is characterised by mountainous terrain and forested hillsides but lacks large areas of suitable land for permanent agriculture and for paddy rice cultivation. The Northern Indo-china Subtropical Forests Eco-region is home to an unusually large number of unique mammal, bird, and plant species. More than 183 mammal species are known to occur in this ecoregion, of which four are endemic and five near endemic. Mammals of conservation significance recorded include the Asian elephant (Elephas maximus), gaur (Bos gaurus), southern serow (Capricornis sumatraensis ), banteng (Bos javanicus), and red panda (Ailurus fulgens). The ecoregion also supports a very high diversity of birds, with at least 707 species recorded. Avifauna species include Ward's trogon (Harpactes wardi) and the near endemic short-tailed scimitar babbler (Jabouilleia danjoui) (Wikramanayake et al., 2002). Geology and Soils The northern part of Lao PDR is characterised by complex geology, with sedimentary rocks of Palaeozoic age, comprising shale, siltstone and sandstone interwoven with volcanic rock, such as andesite, dacite and rhyolite. Limestone of Permian to Carboniferous age is also found in the area. The rocks are covered by quaternary soil deposits and alluvial soils. The bedrock is fractured and folded. Due to its steep terrain, the majority of soils are classified as shallow or undifferentiated soils. Surface Water Lao PDR has the highest per capita availability of renewable freshwater resources in Asia. In 1998, the United Nations concluded that the quality of water in the Mekong and its tributaries in Lao PDR is quite good, and not significantly affected by human activities (UN, 1998). High sediment load is a natural phenomenon experienced in northern highland streams during the wet season. The problem is exacerbated in catchments subject to deforestation and shifting cultivation practices which promote sediment transfer to streams and increase sediment load. Water hardness is common in streams that flow over limestone areas. In general, rivers in northern Lao PDR are characterised by high ionic content in the dry season which drops during the wet season due to dilution. Pesticide use is rising and is largely unregulated and not monitored. Poorly managed mining activities can also have detrimental impacts on water quality. Little is known about aquifer systems (quality or quantity) in northern Laos. Fisheries Different life-history stages of fish normally require separate habitats to optimize survival, growth and reproduction. Migration enables the necessary shifts to be made between habitats, but the distance travelled is dependent on habitat distribution and life-history stage. Migrations are usually undertaken for at least three reasons: trophic, dispersal-refuge and reproduction. A fourth type of migration is when fish make an avoidance reaction in response to temporary or seasonal adverse conditions. Some migrations may involve a movement of only a few meters, whilst others may involve vast distances covering hundreds or thousands of kilometres 91

100 (Warren and Mattson, 2000). Migratory fish populations of the northern Laos are not well described in the literature. In turn, the spawning grounds for many Mekong fish species have still not been identified. However, large quantities of ripe fish move into many of the tributaries in Lao PDR as well as Thailand and Northern Cambodia, so it is likely tributaries that contain PFAs and are directly linked to the Mekong, such as the Nam Fa and Nam Kha contain key spawning habitats (Poulsen et al. 2004). Impacts of hydropower development on fisheries in Lao PDR have been well summarized in a recent article by Guy Ziv, etal. in the Proceedings of the National Academy of Sciences January 28, SUFORD and SUFORD AF Forest Zonation Many of the project areas (existing and new) have high significance for terrestrial ecosystem conservation because of significant forest diversity. Lowland rainforests are the most threatened forests in Laos (and most of Southeast Asia), due to their easy conversion to permanent agriculture, and their accessibility for logging, hunting, NTFP extraction, and roadconstruction. FIPD land classification maps show that the original SUFORD project areas contain a mix of lowland Semi-Evergreen and Dry Dipterocarp Forests and riverine wetlands, while SUFORD-AF project areas are dominated by Mixed Deciduous, Dry Dipterocarp, and Savanna Forests at lower elevations and Lower Montane forests on upper slopes (UOL, 2008). Three of these habitats are weakly represented in the Lao national protected area system: Semi-evergreen, Dry Dipterocarp and freshwater wetlands [Berkmüller, 1995]. They are priorities for conservation and wise management wherever they occur in project areas. The most important are the Semi-Evergreen Forests and wetlands, but Dry Dipterocarp (along with Mixed Deciduous) forests are becoming a priority because of the mistaken impression that they are degraded and thus candidates for conversion (UOL, 2008). The following section presents a very brief and simple description of major forest formations in SUFORD and SUFORD-AF based on nomenclature employed by Whitemore [1990] and Rundel [2001], as presented in UOL, The boundary between evergreen and semi-evergreen rainforest is difficult to delineate and thus most forest statistics combine the two, however, there are important ecological differences. Lowland Evergreen Rainforest is the most luxuriant and complex of all plant communities. The main tree canopy regularly achieves a height of 45 m or more. These forests are characterized by tremendous species diversity, often containing as many as 10,000 plant species and 1500 genera. True evergreen rainforest in Laos is confined to escarpments of the Boloven Plateau and windward slopes of the Annamite mountains; areas with over 2500 mm of precipitation annually and a one to two month dry season. These forests are dominated by the family Dipterocarpaceae, the most common genera of which are Shorea, Dipterocarpus, Anisoptera, Hopea, and Vatica. Semi-Evergreen Rainforest occurs as a transitional belt between evergreen rainforest and seasonal (monsoon) forests. It occurs in areas of the Mekong lowlands and uplands with annual rainfall between 1400 and 2600 mm and a two to five month dry season. There is somewhat less species diversity, a slightly more open canopy and a somewhat smaller stand structure than in evergreen rain forests. In addition to the Dipterocarp genera noted above, deciduous trees such as Walsura, Lagerstroemia, Irvingia and Koompassia may comprise up to one third of the upper canopy, and the lower canopy may contain genera normally 92

101 characteristic of drier forest formations such as Albizia, Pterocarpus, Dalbergia, Diospyros, Sindora and Tetrameles. Semi-Evergreen rainforest constitutes the richest lowland forests in the current SUFORD PFAs but is absent from SUFORD-AF PFAs. Monsoon forests (which include Mixed Deciduous Forest, Dry Dipterocarp Forests, and Savanna Woodlands) are more commonly known in Asia, are more or less open-canopied formations growing in areas with a distinct dry season (usually more than three months with rainfall less than 60 mm) and generally at elevations below 800 to 1000 m. Distinct dry seasons may be the result of either macro-climatic air movements or topography where rain-shadows occur in the lee of the mountains. Different formations occupy habitats of increasing drought severity, but there is a complex interaction between local variations in rainfall, soil moisture and soil texture. This mosaic of ecosystems has been made even more complex by the actions of human cultivation, livestock grazing and regular, usually anthropogenic, low intensity fire. In fact, fire has exerted such a dominant, historic influence over the composition and structure of many of these forests that they are often termed fire-maintained forests. Any attempts to prevent fires in these ecosystems invariably results in the build-up of understory fuels, resulting in subsequent high-severity, and often catastrophic fire. For purposes of this discussion, monsoon forest will be considered to fall within three broad types: Mixed Deciduous Forest, Dry Dipterocarp Forests, and Savanna Woodlands. These may be artificial differentiations, since there does not always seem to be well-recognized boundaries between the three types. Nor is it often possible to separate climatic climax monsoon forest from fire-maintained edaphic climax forests or degraded forests. This creates significant interpretive problems in forest-change mapping programs. Mixed Deciduous Forest occurs in areas with fairly high rainfall (> 1,500 mm annually) but with a strong dry season of four to five months. It is semi-closed forest, often of good height (30-40 m), in which the upper story is composed largely of deciduous species. A bamboo understory is common, mixed with evergreen shrubs and small trees, though under-stories are often depleted by over-grazing. The most characteristic tree genera occurring in deciduous forest include Acacia, Afzelia, Albizia, Caesalpinia, Cassia, Dalbergia, Diospyros, Irvingia, Lagerstroemia, Pterocarpus, Sindora, Terminalia, Xylia, and Dipterocarps such as Shorea, Vatica and Dipterocarpus. Certain Dipterocarp species such as Dipterocarpus alatus and Hoopea odorata may be present in riparian areas along stream courses. This formation comprises the overwhelming majority of potentially harvestable forests in the SUFORD-AF PFAs. Dry Dipterocarp Forests are characteristic of lowland areas with annual rainfall of <1500 mm., a four to five month dry season and shallow, rocky or sandy, nutrient-deficient soils. Stands are more or less open with a grass/forb understory, and of low stature (5-10 m in height). Communities are often simple in composition and dominated, depending on soil type, by the five Dipterocarp species - Dipterocarpus intricatus, D. obtusifolius, D. tuberculatus, Shorea obtusa and S. siamensis - these are the only deciduous species out of approximately 550 in the Family Dipterocarpaceae - and the Combretaceae species Terminalia alata. The structure and composition of these forests in maintained by regular, low-intensity fire. Savanna Forests occur either in strongly seasonal rainfall regimes where the ratio of dry months to wet months exceeds 1:1 or on localized very coarse-textured sandy soils (Spodosols). Pine savanna is maintained by frequent, low-intensity ground fires and is characterized by open-canopied forests of Pinus merkusii over either grasslands or communities of the bamboo 93

102 genus Arundinaria. Dipterocarpus obtusifolius may be locally co-dominant where savanna communities arise from degraded mixed deciduous or dry Dipterocarp forest. The Lower Montane Forest is the zone of transition between tropical and sub-temperate vegetation, where lowland rainforest trees of families such as Dipterocarpaceae, Fabaceae, Meliaceae and Datiscaceae gradually give way to trees and shrubs of the families Fagaceae, Lauraceae, Myrtaceae, Magnoliacece and the order Coniferales. This transition occurs at elevations between 700 and 1000 m with annual rainfall of 2000 to 3000 mm. The Lower Montane Forest is characterized by large numbers of oaks of the genera Quercus and Lithocarpus, chestnuts of the genus Castanopsis, laurels of the genera Litsea and Cinnamomum, the magnolia genus Michelia, the myrtle genera Syzygium and Tristania and the tea genera Schima and Anneslea. These broadleafed hardwoods are often found in association with tropical conifers of the genera Keteleeria, Pinus, Podocarpus, Dacrycarpus and Fokienia Forest Zonation in New Provinces and PFAs in Northern Laos The area of new PFAs is located in the northern part of Laos where the terrain is mountainous with low lying river valleys. As most land is found on mountain slopes, the area available for paddy rice is limited and the landscape is therefore dominated by rain-fed upland agricultural fields, fallows and forests. Farmers cultivate this hilly landscape via shifting cultivation, a practice that uses fire to clear temporary fields for cultivation. After some years of cultivating the fields are then abandoned (fallow period) for some years and left to recover before they can be burned and used again for cultivation (Yokoyama, 2003; Foppes, et al. 2004) (in Steen, 2009). Over the centuries, this has created a landscape that for a long time in the uplands of Laos that looks like a pattern of ever alternating agricultural land, fallows and forests. (UNDP, 2002) (in Steen, 2009). The main forest type is mixed deciduous forests, a blend between evergreen and deciduous trees. This forest is mainly located on higher elevation along the districts borders (Anon., 2005). These areas still have fairly dense forest that support a wide variety of uses (in Steen, 2009) Vegetation cover of new Northern Province PFAs (Bokeo, Luang Namtha, Oudomxay and Xayaboury) The Forest Cover Inventory Project has mapped all land cover in Lao PDR using satellite data, the most recent assessment used data from Because of the scale of the task (national), the method adopted a chunking-up approach where key vegetation community types were aggregated into three broad land cover classes: Forest, Potential Forest and Other, as well as one class for Water bodies Table 16 presents the aggregated land cover classes. Table 16 Forest Cover Inventory Aggregated Land Cover Classes Major Classes Forest Cover Potential Forest Cover Other Bamboo forest, Unstocked forest, Ray Ever Green Forest, Mixed Deciduous, Dry Dipterocarp Forest, Mixed Broad Leaved and Coniferous, Gallery Savannah, Scrub, Rice Paddy, Agricultural Plantation, Agricultural other, Grassland, Swamp, Urban 94

103 Forest, Coniferous Forest Built up Due to resource constraints the vegetation classification (species, structure and distribution) of the northern province PFAs was not undertaken during the SUPSFM preparation stage. Because of its aggregation the data has limited application for detailed plan development, but it does however provide an initial understanding of regional vegetation connectivity. Detailed vegetation community and biodiversity assessments of the new PFAs, and nearby area, will be undertaken as part of project planning. provides a summary of area and land cover types for the three northern provinces. Figure 2 presents total areas of PFAs in each of the new FLM provinces and indicates that Xayaboury has Province PFA Name Forest % cover Forest Potential Forest % cover Potential Forest the largest designated PFA area, with Luang Namtha the least. In relation to forest cover category Oudomxay province has the greatest percentage of remaining forest cover. Other % cover Other Bokeo Phouviengxais % % % 44,849 Sammuang % % % 78,706 Oudomxay Sayhkong % % % 69,793 Namphak % % % 52,118 Namnga % % % 98,786 Luang Namfa % % 985 4% 24,633 Namtha Phou Led % % 601 3% 20,150 Longmoun Xayaboury Kengchok-Nam Ngim 104,927 Total Area (ha) Huay Gnang ,717 Pha Nang ngoi ,175 Pha Nangnuane ,147 Table 17: New SUPSFM PFAs by area and land cover type Province PFA Name Forest % cover Forest Potential Forest 95 % cover Potential Forest Other % cover Other Bokeo Phouviengxais % % % 44,849 Sammuang % % % 78,706 Oudomxay Sayhkong % % % 69,793 Namphak % % % 52,118 Total Area (ha)

104 Phouviengxais Sammuang Sayhkong Namphak Namnga Namfa Phou Led Longmoun Kengchok-Nam Ngim Huay Gnang Pha Nang ngoi Pha Nangnuane Luang Namtha Xayaboury Namnga % % % 98,786 Namfa % % 985 4% 24,633 Phou Led % % 601 3% 20,150 Longmoun Kengchok-Nam Ngim 104,927 Huay Gnang ,717 Pha Nang ngoi ,175 Pha Nangnuane ,147 Figure 2: New PFAs by area (ha) 120, ,000 80,000 60,000 40,000 20, ,943 98,786 78,706 69,793 44,849 52,118 24,633 36,717 48,174 20,150 29,144 Bokeo Oudomxay Luang Namtha Xayaboury 96

105 Phouviengxais Sammuang Sayhkong Namphak Namnga Namfa Phou Led Longmoun Kengchok-Nam Ngim Huay Gnang Pha Nang ngoi Pha Nangnuane Figure 3: Total PFA area (ha) by province 250, , , ,000 50,000 0 Bokeo Oudomxay Luang NamthaXayaboury Analysis of the various land cover types in the Figures 4,5 and 6 reveals that forest cover percentages are relatively the same inside PFAs as they are in adjacent landscapes outside PFA boundaries. This suggests that land use activities and intensities within PFAs are generally similar to those outside PFAs in surrounding areas, and that PFAs have either been cleared prior to designation as production forests, or that designation has not influenced land management activities. Forest cover analysis over time would provide additional insights on trends and processes influencing land cover change. There is slightly more forest type inside PFAs, but generally the clearing levels are consistent for all classes. Figure 4: Comparison of % 'forest' cover inside new PFAs (blue) to a 20km radius outside their borders 70% 60% 50% 40% 30% 20% 10% 0% Bokeo Oudomxay Luang Namtha Xayaboury 97

106 Phouviengxais Sammuang Sayhkong Namphak Namnga Namfa Phou Led Longmoun Kengchok-Nam Ngim Huay Gnang Pha Nang ngoi Pha Nangnuane Phouviengxais Sammuang Sayhkong Namphak Namnga Namfa Phou Led Longmoun Kengchok-Nam Ngim Huay Gnang Pha Nang ngoi Pha Nangnuane Figure 5: Comparison of % 'potential forest' cover inside new PFAs (blue) to a 20km radius outside their respective borders 80% 70% 60% 50% 40% 30% 20% 10% 0% Bokeo Oudomxay Luang Namtha Xayaboury Figure 6: Comparison of % 'other' land cover inside new PFAs (blue) with a 20km radius outside their respective borders 40% 35% 30% 25% 20% 15% 10% 5% 0% Bokeo Oudomxay Luang Namtha Xayaboury 98

107 6.1.4 A summary of forest cover for northern province PFAs Xayaboury Province PFAs Kengchok-Nam Ngim PFA, Xayaboury This is the largest of all PFAs (114,943 ha) in the four northern provinces and has also retained the largest area of forest cover class (41%) in Xayaboury, almost entirely in the southern half. Due to limited data the reasons for the preservation of forest cover in this area could not be determined. The proximity of concession areas is also not known but these issues will be addressed during SUPSFM implementation planning steps. Figure 7: Kengchok-Nam Ngim PFA Forest Cover Inventory results with 20km boundary Land Cover Data

108 Pha Nangnuane PFA, Xayaboury This PFA is the second largest in Xayaboury (48,174 ha), and has retained only 17% of its forest cover class, while also having the largest proportion of potential forests of all northern PFAs. The forests to the west are a mosaic of both types, while to the east, forest have largely been cleared. Concession areas for this PFA are not known. Figure 8: Pha Nangnuane PFA Forest Cover Inventory results with 20km buffer Land Cover Data

109 Huay Gnang PFA, Xayaboury Huay Gnang is the third largest PFA in Xayaboury (36,717 ha) and has retained 31% of its forest cover class in a relatively uniform mosaic pattern of forest, potential and other for the entire PFA, although slightly more forest still remains in southern areas. This PFA carries the greatest percentage of potential forest cover of all new PFAs. In the north it has a border with Mekong and Bokeo province. Concession areas are not known, but Highway 4b dissects this PFA. Figure 9: Huay Gnang PFA Forest Cover Inventory results with 20km buffer Land Cover Data

110 Pha Nang Ngoi PFA, Xayaboury Province The smallest of Xayaboury PFAs and the third smallest of all northern PFAs, it has retained the least of all forest cover (16%), concentrated in the northern areas around the tributary headwaters of Huay Paet. This PFA has the largest proportion of other land cover class. Concession areas are not known. Figure 10: Pha Nang Ngoi PFA Forest Cover Inventory results with 20km buffer Land Cover Data

111 Oudomxay Province PFAs Namnga PFA, Oudomxay Figure 11 presents Forest Cover Inventory mapping for Nam Nga PFA, Oudomxay. The map shows that large areas of Nam Nga PFA have been cleared of forest in its central areas, which matches similar clearing patterns outside the PFA boundary. Proportionally, however there appear to be more dense stands outside running in the NE SW direction. The clearing pattern maybe attributed to terrain features that have limited certain activities. It is understood that the Lao-China railway line concession will pass in a north-south direction through this PFA. No other known infrastructure development concessions are within or near the PFA. The Phou Heephii NPA shares the northern boundaries of the PFA, which is also divided by Highway N13. Village settlements are scattered throughout the PFA but mostly concentrated along the major road route. Figure 11: Forest Cover Inventory results of Nam Nga PFA, Oudomxay plus 20km buffer Land Cover Data

112 Sakhong PFA, Oudomxay The Sakhong PFA in the south of Oudomxay province is bordered by the Mekong River on its southern border. On the opposite Mekong River bank is Huay Ggang PFA, Xayaboury Province. There is no adjacent NPA or conservation forest. Large tracts of forest have been cleared to potential forest and other categories, although some forest stands still exist in central and western areas. Only 25% of the forest cover remains inside the PFA. The Nam Beng HPP reservoir extends along a small section of the PFAs western boundary. Refer to Figure 12. Figure 12: Forest cover Saykhong PFA plus 20km buffer, Oudomxay Land Cover Data

113 Nam Phark PFA, Oudomxay The Nam Phark presents a mosaic of cover of which 43% is forest cover and 43% potential forest cover. It has no adjoining NPA or conservation forests, and is divided into almost equal parts by three districts: Namo, La and Xay. The PFA is subject to three mining concessions, one in La district and two in the northern part of the PFA in Namo district. The China-Lao railway corridor is west of the PFA. Refer to Figure 13. Figure 13: Forest cover Nam Phark PFA plus 20km buffer, Oudomxay Land Cover Data

114 Luang Namtha Province PFAs Phou Led Loungmoun PFA, Luang Namtha At 20,150 ha Phou Led Loungmoun PFA is the smallest of the new PFAs. But of all the new PFAs Phou Led Loungmoun has retained the highest percentage of forest cover (68%). The mosaic pattern of land clearing appears to be similar within and outside. There is a continuum of large tracts of intact forest within, between and adjacent areas. The northern boundary of this PFA borders the Nam Nga NPA, and to the south is a mix of protection forests and undesignated lands. Available information indicates that no infrastructure concessions are present in the NPA or PFA, although to the south lies part of the reservoir for the proposed Nam Tha1 hydro power project. Maintaining and enhancing biodiversity corridors within this PFA and between and existing stands of forest - irrespective of legal status would be a worthy consideration for SUPSFM investments. Figure 14: Forest Cover Phou Led Longmoun PFA, Luang Namtha plus 20km buffer Land Cover Data

115 Nam Fa (Pha), Luang Namtha Nam Fa PFA has retained 58% of its forest cover, the third highest percentage of the new PFAs. Importantly this PFA also has 37% of potential forest cover, mostly in its western half. Large tracts of intact forest cover or mosaic cover occur around all borders, but are particularly prevalent to its south where there appears to be few roads and village settlements, and is an area dominated by the Nam Kan NPA. The Nam Fa PFA also shares borders with the Laeng Nam Ma and Laeng Nam Mai Protection Forest Areas. The Nam Fa is subject to three development concessions: one tin mine currently operating in its north-east corner, and two proposed hydropower project concessions. The Nam Fa HPP (in Bokeo Province) has a reservoir that will back-flood the entire valley floor of the Nam Fa river through the PFA. The Nan Long 1 and 2 HPP is located to the PFAs north. (See later discussions topics on Sammuang PFA.) Figure 15: Forest Cover Nam Fa PFA, Luang Namtha plus 20km buffer Land Cover Data

116 Bokeo Province PFAs Sammuang PFA, Bokeo Sammuang PFA is the largest in Bokeo province at 78,706 ha and has retained the second highest percentage forest cover (62%) of all new province PFAs. As with the Nam Fa PFA in Luang Namtha, the Sammuang PFA is subject to the proposed Nam Fa HPP whose reservoir will back-flood the entire Nam Kha and tributaries in the north and central sections. Information on other concessions is not known. The Sammuang PFA shares a border with the Nam Kan NPA, which is dominated by large continuous tracts of forest cover. Figure 16: Forest Cover Sammuang PFA plus 20km buffer, Bokeo Land Cover Data

117 Phouviengxai PFA, Bokeo Phouviengxai is the smallest PFA in Bokeo with an area of 44, 849 ha. Of all the new province PFAs it has retained the least forest cover at 21%. Patterns of clearing outside the PFA are the same as inside. The PFA shares an eastern boundary with the Laeng Nam Tha Protection Forest Area which shows only marginally more forest cover. The Phouviengxai PFA is subject to the Nam Tha 1 HPP which will potentially back flood that river systems and tributaries located in the central-north area of the PFA. Figure 17: Forest Cover Phouviengxai PFA plus 20km buffer, Bokeo Land Cover Data

118 6.1.5 Climate Northern Areas Tropical monsoon climates generally occur between 10 0 and 22 0 of the equator and dominate large parts of Indochina, including all of Laos. The distinct seasonality of the climate is caused by moist, warm, tropical maritime air masses flowing on-shore at times when the sun is overhead, and dry continental tropical or sub-temperate air masses flowing off-shore at times of the year when the sun is lower in the sky. The annual passage of the sun back and forth between the Tropics of Capricorn and Cancer determines the timing of rainy and dry seasons. Thus in Laos, the maritime, southwest monsoon brings rain from mid-april to October and the continental, northeast monsoon brings dry conditions from November to March. The Northern Highland region rugged mountainous topography is between m, with only six percent of the area being under 20% slope, and with half exceeding 50% slope. It has a moist to dry sub-tropical climate with annual rainfall between 1, mm. Generally, soils are heavily leached and acidic with low water retention capacity and low fertility. Climate, topography and soils combine to make most of the sloping land in northern Lao susceptible to erosion and more suited to the production of trees than to arable farming. 6.2 SUFORDs positive environmental (management) contributions GOL capacity and institutional arrangements SUFORD has assisted DOF in developing a diversity of forest and land management systems including a national forestry reporting system, internal monitoring system, document management system, budget planning system and budget monitoring system (MAF, 2012). SUFORD has helped DOF to develop a large set of comprehensive guidelines (technical and otherwise) for PSFM and village development incorporating guidelines for working with ethnic groups. An impressive number of training courses have been delivered (more than 7000 training days for government staff). The monitoring results indicate that the new approaches have also found their way into practice. Studies conducted on the performance of government staff have shown that their skills have improved (MAF, 2012). SUFORD has assisted DOF in collecting information on development concession activities from amongst various provincial authorities, which has lead to an improvement in coordination of concession granting and management by line agencies Forest management and planning SUFORD project together with Lao National Chamber of Commerce and Industry (LNCCI) and World Wildlife Fund (WWF) has assisted domestic wood processing manufacturers to establish the Chain Of Custody (COC) system. Currently, there are four Forest Stewardship Council CoC certified factories in Lao PDR, two more are expected to be certified by the end of 2012, and five more factories have expressed their intentions to become CoC certified in 2013 (MAF, 2012). The project s impact on forest area was assessed in 2010 in four PFAs in the old provinces.. The assessment showed that in 7 PFAs 16 out of 8 the overall rate of 16 Champassack: Patoumphone; Khammoune: Dongphousoy & Nongkaphat; Salavan: Phoutalava & Laongam; Savannakhet: Dongkapho & Dongsithuane) 110

119 deforestation declined since active project implementation started in At the same time, the rate of deforestation accelerated outside the PFAs suggesting that forest protection is more effective inside the PFAs than outside. The SUFORD project contributed to this development in several ways (i) by providing technical support to the declaration of PFAs in 2006 which gave them legal status and banned forest conversion inside PFAs, (ii) by formulating forest management plans which define forest area and provide clear rules for forest use, and (iii) by enhancing livelihoods through village development grants (MAF, 2012). The forest management plans and guidelines are implemented in good practice which is demonstrated by the fact that a significant portion of the forests inside the PFAs have been certified to the international FSC standard, and DOF has been able to maintain the certificate for five years and extend it for another five-year period, after a thorough reassessment in spring The total pool of forests certified to the FSC pure standard is currently 81, 618 hectares located in the PFAs in Khammouane and Savannakhet provinces. In spring 2012 another 239,529 hectares of forests inside the PFAs were certified to the FSC controlled wood standard in Savannakhet and Salavan provinces. These areas represent the first and largest areas of certified natural forest in mainland SE Asia (MAF, 2012). 6.3 SUPSFM Environmental Risks The major potential negative environmental risks associated with the project relate to the northern province FLM pilot projects, sustainable forestry in previous SUFORD areas, the management of wildlife and botanical NTFPs, illegal and unplanned logging, and possible minor environmental impacts arising from village livelihood development projects. The extension of logging operations into steeper, more environmentally-sensitive northern uplands region of Laos must be undertaken with care. SUPSFM aims to introduce the concept of economic and environmental operability under different site conditions and different forest harvesting systems, while supporting the ability of local communities to develop and expand livelihood opportunities. Community forestry and degraded forest restoration will be important components of this work. Part of an operability assessment will be to zone-out lands that are too steep, unstable or fragile to log safely, or are best suited for livelihood expansion. Sivlicultural analysis will also be undertaken to determine appropriate treatments and annual allowable cut levels for Northern forest. Economic analysis will be undertaken to determine if timber quantity will justify the costs of access, and timber extraction. As noted in earlier sections, large tracts of forests from northern PFAs has already been removed. Due to excessive logging in the south in the past, the level of sustainable harvesting is low, estimated at 4 m3 per ha for southern PFAs. There is likely to be a similar scenario in the north. A greater harvest intensity should not be considered solely in order to make an economic analysis for timber harvesting more favorable, given the inevitable higher access and extraction costs. Greater harvesting intensity usually means more site disturbance and residual stand damage, and a greater density of skid trails and extraction roads etc, all of which are environmentally damaging in steeper lands. The key to increasing the harvesting volume is the promotion of lesser known species which will be accessed during field surveys. (MAF, 2012). 111

120 Given the considerable evidence of declining wildlife and NTFPs and the considerable role these forest resources play in forest health, food security and livelihood activities, there will be greater emphasis on improved management of these resources in project design and implementation. This aspect forms a significant part of Components 1 and 2, where horticultural assistance is given for NTFP development so that harvesting can be shifted from the forest to areas of NTFP cultivation, with the forest a source mainly for materials for genetic improvement and initial propagation materials. Wildlife management and NTFP programs will be expanded and continued throughout the project. The possibility exists of minor environmental impacts arising from village development projects. These will be dealt with by a screening process and impact management guidelines for different types of projects. One of the key challenges is to find alternative and sustainable livelihoods for people who practice pioneering shifting cultivation. In this regard, collaboration with development efforts in other sectors is crucial as the resources within the forest sector are a fraction of the resources required (MAF, 2012) No Project Scenario Agricultural development projects by way of rubber plantations etc are likely to impact forest cover more significantly in non-managed PFAs, where government planning and oversight is minimal. Conversion of forests into agricultural concessions is one of the main drivers of deforestation outside of PFAs, and has also been observed on a limited basis within PFAs under SUFORD. The rapid expansion of plantations surrounding a PFA pushes local people to search for arable land inside the PFA. Lacking alternatives they usually practice shifting cultivation which often results in reduced forest cover (pioneer agriculture). Under SUFORD, DOF has systematically rejected plantation concession proposals inside the PFA, but this agency has less control over other types of developments such as mining and hydropower (MAF, 2012) that can cause significant forest cover loss. Forest management plans and related guidelines developed by SUFORD are considered adequate to ensure the sustainability of forest management and logging where they are applied. For instance, the biodiversity assessment conducted under SUFORD concluded that many key elements of SUFORD-style logging already in place will maintain wildlife conservation values of the PFAs. The report cites that SUFORD-style logging has little long standing deleterious impacts upon the environment or wildlife. The plausible alternative to SUFORD-style logging of the PFAs is a situation of much heavier habitat encroachment and ongoing high wildlife extraction. If implemented successfully, SUFORD management will substantially reduce habitat encroachment, and may somewhat reduce wildlife extraction levels. (MAF, 2012). In unmanaged PFAs, rates of wildlife species extraction would continue to rise progressively as demand increases as the cost benefit ratio shifts more towards greater profitability for hunting efforts. Forest roads created under SUPSFM may exacerbate this problem by facilitating ease of access, however SUPSFM activities alone would not be solely accountable for local species decline or extinctions, nor can SUPSFM be solely responsible for such consequences. Strengthening partnerships with DOFI and villages will be necessary aspects of regulating and reducing wildlife hunting activities. 112

121 6.3.2 SUPSFM Internal design challenges SUFORD has been the main pillar of World Bank engagement in forestry in Lao PDR and has focused on sustainable management of natural production forests. SUPSFM is a continuum of this project with a primary focus on sustainable forest management but with additional components of livelihood development, and incentives for broader adoption of smallholder agro-forestry. The SUPSFM project is expected by 2018 to attain a significant scaling up of participatory sustainable forest management in PFAs, and the expansion of opportunities for local communities to gain livelihood benefits from their participation in managing all categories of forest areas. The project is anticipated to have positive social and environmental impacts, especially for communities who are primary beneficiaries. The project will aim to promote sustainable management of Lao PDRs forest estate, and enhance livelihood security for forest-dependent communities. Forest products will be harvested at sustainable levels without degrading forest resources. Timber harvesting with retention of large trees in harvested stands would lead to minimal changes in species composition and stand structure, and minimal habitat impacts. The decree on timber revenue sharing, and revised auction procedures will continue to provide enhanced revenue to communities. The project will also provide access to community development services, training and improved village revenue, reducing dependence on natural forest resources, and promote in situ biodiversity conservation. The project will use well-tested and nationally adopted participatory land-use and forest management processes which would help resolve land use issues, clarify land tenure and resource use rights, and ensure greater consultation, fairness and consistency in land use and forest regulation and management. This will make a direct contribution to alleviate rural poverty, promote economic development, and strengthen the ability of local communities to prioritize and implement their own development. Such efforts are expected to attract support from provincial and district authorities as they are well aligned with established GoL revenue and policy implementation objectives. Under SUPSFM there are four broad components, with sub components, that will seek to expand and strengthen PSFM using Participatory Land Use Planning (PLUP) and land allocation to develop future forest and land use agreements. The four components include: 1. Strengthening and expanding PSFM in PFAs 2. Piloting Forest Landscape Management in northern provinces 3. Enabling the legal and regulatory environment 4. Project Management Summaries of these components and their related impacts assessment is provided in the following section. Component 1: Strengthening and Expanding PSFM in PFAs Subcomponent 1A: Developing Partnerships to Increase Implementation Capacity. During the first year of implementation this subcomponent will finance a capacity assessment and develop a program to build the skills required to implement all project activities. Enhanced capacity building and skills development will include technical forest management, facilitation and communication skills, improved financial management, gender equity, and monitoring and evaluation. This subcomponent will also support development of strategic partnerships with National Institutions and Non-Profit 113

122 Associations (NPAs; used to describe CSOs in Lao PDR). Regional and international agencies will also be contracted to augment strategic skills as needed. To enhance capacity for consolidation and expansion of forest areas under independent certification, this subcomponent will finance the creation of a Forest Certification Unit (FCU) within DoF. Subcomponent 1B: Community Engagement in PSFM and Village Livelihood Development. Under this subcomponent participating villages, following the Community Engagement Framework (CEF), will produce and implement site-specific Community Action Plans (CAPs) that identify local social, natural and institutional capital and identify options for generating sustainable livelihoods (including forest-based livelihoods). CEF will identify needs of vulnerable people, women and ethnic groups and issues related to tenure, access and resource utilization. This subcomponent will finance both the revision and implementation of guidelines for forest management planning. Financing will also be provided for drafting forest management plans including but not limited to field inventory, data collection and analysis, and mapping actual and proposed land use options. Component 2: Piloting Forest Landscape Management Subcomponent 2A: Developing Methodologies and Frameworks for Forest Landscape Management. This sub component will support the development and adoption of a landscape approach for forest and biodiversity resources management in four provinces in northern provinces.. Support will be provided to convene stakeholder discussions and consultations at district, provincial and national levels to produce key components of a forest landscape framework, including but not limited to, definition of roles and responsibilities, inter-agency coordination mechanisms, revenue generating opportunities and conflict resolution mechanisms. Benefit sharing arrangements for restoration of degraded areas and carbon will be developed. Activities financed under this subcomponent will include support for coordinated management planning, elaboration of methods for REDD+ related Measurement, Reporting, and Verification (MRV) and Reference Emission Levels (REL) at the landscape scale, and improved coordination on forest law enforcement. Processes used during development of the forest landscape framework agreements will be documented so that methodologies can be used to support replication in other landscape areas. This subcomponent will be implemented in close collaboration with the ongoing Finland supported project on strengthening national spatial planning capacity in Lao PDR for sustainable natural resource management. Subcomponent 2B: Establishing Forest Landscape Pilots. Support will be provided under this subcomponent for implementation of CEF and PSFM planning in village use forests. Support will also be provided for designing provincial pilots based on the mechanisms and frameworks developed under subcomponent 2A. These provincial pilots will cover activities in Luangnamtha and Bokeo, Provinces. Component 2 will be undertaken in close partnership with KfW which is designing a new landscape project and have agreed in principal to partner with the Bank. Component 3: Enabling Legal and Regulatory Environment Subcomponent 3A: Strengthening Legal and Regulatory Frameworks. This subcomponent will support development of legal and regulatory frameworks for implementation of PSFM and frameworks for FLM. Support will be provided for improved monitoring and reporting on timber revenue benefit sharing, domestic timber processing and sales, tracking the share of timber coming from certified sources and international timber trade. Regulatory frameworks for communal tenure over forestland shall also be strengthened. 114

123 Subcomponent 3B: Strengthening Forest Law Enforcement and Governance. The subcomponent will strengthen forest law enforcement and governance through Department of Forest Inspection (DoFI) implementation of the National Forest Law Enforcement Strategy Targeted support will be provided for priority issues such as monitoring salvage logging and improving capacity for assessing environmental compliance. Support will also be provided for implementation of REDD+ requirements relating to control of timber leakage, chain of custody, and related forest certification requirements. This subcomponent will be implemented in collaboration with the GIZ-EU initiative on FLEGT which aims to establish a Voluntary Partnership Agreement (VPA) with Lao PDR. Subcomponent 3C: Creating Public Awareness for Climate Change and REDD+. This subcomponent will support GoL efforts to create public awareness for climate change and REDD+ by designing a national communication strategy and a public awareness campaign. A program of public awareness and education will be developed with active participation from MAF, MoNRE, National Assembly, NPAs and other DPs active in REDD+ in Lao PDR. The strategy and design of this activity will be developed and implemented in concert with the FCPF and DGM. The strategy will use of diverse media and products to reach all ethnic groups in Lao PDR. Component 4: Project Management This component will cover project management at the national and sub-national level, Technical Assistance (TA), and Monitoring and Evaluation. Finland TA will provide national and international consultants, and capacity building and training to support expansion of SUPSFM in PFAs, strengthen forest law enforcement and governance, support forest sector policy reform, build capacity for participatory land use planning and tenure strengthening, support development of sustainable livelihoods, and undertake analytical work as required to meet the overall objectives of the SUPSFM project. As there is a focus on project management aspects, no negative environmental impacts are anticipated in this sub-component SUPSFM Activities within PFAs and Forest Landscapes Forestry The project will continue to provide implementation support to PFAs with existing forest management plans, and initiate forest management planning in additional PFAs in SUFORD provinces. The Project will also focus on consolidation and expansion of forest areas under certification, and implementation arrangements for livelihoods in relation to existing areas. The project also intends to demonstrate a transformational change in the forestry sector by introducing the concept of FLM. SUPSFM is extending its reach beyond the traditional bounds of SUFORD and is adopting a broader landscape approach by including adjacent forest areas including those in conservation, protection, and village-use forests. This is termed the forest landscape approach to participatory forest management. Traditional SUFORD-style forestry practices will continue under SUPSFM and implementation of safeguards will be guided, as they have been, by the technical guidelines that has been developed, but with improvements to monitoring and reporting. Table 18 and Table 19, summarise key activities and corresponding safeguards. 115

124 SUPSFM Activities within PFAs and Forest Landscapes Livelihoods For livelihoods enhancement in old SUFORD areas and new Provinces - CAPs will be developed to inform the process of forest management planning. Livelihood production groups will be organized in project villages with support provided based on criteria related to food security and socio economic status of households; dependence on forest resources; and, willingness to participate in a production group. Various livelihood options are being considered. These include PES, smallholder tree farms, agro-forestry, NTFP domestication, restoration and rehabilitation of degraded lands, and village enterprises. Many activities required to support these livelihood options will require changes to existing land and water resources use and conditions. For options that are not specifically forestry related, safeguards are required because implementation of the CEFs and development of CAPs could result in environmental and social impacts which must be managed and mitigated. Table 20 provides a summary of key activities likely to be implemented under SUPSFM. 116

125 Table 18: list of key activities relating to SUPSFM Planning Activity Organizing and Forest Landscap Negative Positive Comment Planning Impacts Impact Establishment of Technical Service X No risk or risk manageable Center (TSC) and Forest Range Office (FRO) linked to TSC FRO staff re-orientation and X No risk or risk manageable organizing for FLM Forestry extension, prior and informed X No risk or risk manageable consent Village organizing for FLM X No risk or risk manageable Boundary demarcation: khumban and X No risk or risk manageable FMUs Resource assessment (forest X No risk or risk manageable inventory, HCVF) Participatory land-use planning (PLUP) X No risk or risk manageable Environmental and Social Safeguards processes to be introduced and integrated into SUPSFM PLUP process Forest management planning (state FMUs) X No risk or risk manageable -Environmental and Social Safeguards processes to be introduced and integrated into SUPSFM FLUZ process Forest management planning (village forests) X No risk or risk manageable: Environmental and Social Safeguards processes to be introduced and integrated into SUPSFM PLUP process Formalizing village rules for forest use X No risk or risk manageable: Environmental and Social Safeguards processes to be introduced and integrated into SUPSFM PLUP process Integration into the khumban/pfa management plan X No risk or risk manageable: Environmental and Social Safeguards processes to be introduced and integrated into SUPSFM PLUP process 117

126 Table 19: list of key activities relating to SUPSFM Implementation Activity Forest Landscape Implementation Negative Positive Comment Impacts Impact Annual operations planning (all FMUs) X Risk manageable under existing SUFORD technical guidelines Pre-harvest inventory (sub-fmas only) X Risk manageable under existing SUFORD technical guidelines Sustainable harvest planning (sub-fmas only) X Risk manageable under existing SUFORD technical guidelines Approval of harvesting plan and quota (sub-fmas) X Risk manageable under existing SUFORD technical guidelines Sustainable harvesting operations (sub- FMAs) X Risk manageable under full compliance to existing SUFORD technical guidelines. Post-harvest assessment (sub-fmas) X Risk manageable under SUFORD technical guidelines. Forest regeneration and protection (all FMUs) X Some risk of pesticide use but project can be screened through Negative Check List and questionnaires for areas outside PFAs. PFAs HCV to comply with existing SUFORD technical guidelines. Maintenance of HCVs (all FMUs) X No risk, or risk manageable under SUFORD technical guidelines. Implementation of village rules for use of forest Internal monitoring and reporting (all FMUs) Organizing for forest protection and restoration Establishing law enforcement links with DOFI Preparing forest protection action plan (in AOP) Implementing the forest protection action plan Mapping proposed restoration/regeneration areas Planning and proposal preparation for Village Livelihood Development Fund financing Implementation of funded livelihood proposals Registration of restored/regenerated areas X X X X X X X X X X Risk manageable under CEF process and PLUP No risk or risk manageable No risk, or risk manageable under SUFORD technical No risk or risk manageable No risk or risk manageable Risks types variable depending on activities. Managed with CEF CAP process and and PLUP No risk or risk manageable No risk or risk manageable Risks types variable depending on activities. Managed through Production Groups and TSC technical support No risk or risk manageable Table 20: Activities relating to SUPSFM livelihood development/enhancement 118

127 ACTIVITY Livelihood development Potential Negative Impacts Potential Positive Impact Comment Land allocation for livelihoods X Resource access restrictions not expected under SUPSFM funded activities. Securing tenure over land for livelihoods X Resource access restrictions not expected under SUPSFM funded activities. Survey of suitable deforested X Risks manageable. areas in state forests Exploring livelihood and X Risk manageable. enterprise options Building capacity in Technical X Risk manageable. Service Centers Extension work in villages X Risk manageable. Selection by the village of X Risk manageable. livelihood options Preparation of X Risk manageable. livelihood/enterprise proposals Appraisal and approval of X Risk manageable. funding of proposals Capacity building in villages X Risk manageable. Implementation of approved livelihood proposals Monitoring and reporting of progress Adjustments based on monitoring results X X X Internal and external environmental risks exist but can be managed under EMP. Risk manageable. Risk manageable. 119

128 7 INSTITUTIONAL ARRANGEMENTS 7.1 Institutional framework The Project components and activities will be implemented at the national level by a number of ministries and their agencies, and at the sub-national level by their line agencies under the direction of the Provincial or District Administration, as the case may be. Day-to-day implementation at grassroots level will be undertaken by participating villages and district teams following the approach described in the previous section. Oversight will be provided at three levels by multi-agency committees, namely: the National Project Steering Committee (NPSC), the Provincial REDD+ Steering Committee (PRSC), and the District REDD+ Steering Committee (DRSC). The latter two committees are expected to have an oversight role not only for the SUPSFM Project but for other REDD+ related projects, as well. NPSC will be chaired by the Vice Minister of MAF; its members will include DG/DDG level representatives of participating agencies in various ministries (MAF, MONRE, MOIC, MPI, etc.), as well as national leaders of mass organizations like LWU and LNFC. PRSC will be chaired by the Vice Governor of the province; its members will include the District Governors of participating districts, division heads of participating line agencies, and representatives of LWU and LNFC. DRSC will be chaired by the District Governor; its members will include the unit heads of participating line agencies and representatives of LWU and LNFC. Project management offices will be organized at three levels, namely: the National Project Management Office (NPMO), the Province Project Management Office (PPMO), and the District Project Management Office (DPMO). The project management offices will act as Secretariat of their respective project steering committees. Headed by a project manager, those offices will report directly to the chairperson of their respective project steering committees although they will link on a daily basis with the main implementing agency of the Project, i.e. DOF and forestry line agencies at province and district levels. The project management offices will be responsible for the smooth flow of inputs to project activities and the monitoring, verification, and reporting of outputs of project activities. They will also be responsible for procurement and financial management subject to limits set at their levels. Coordinators will be appointed at national, province, and district level for each participating agency. The Coordinators will link with their respective project management offices to ensure the flow of resources needed for implementing their agency activities according to the work plan and to report outputs. 7.2 Institutional and Implementation Arrangements The Department of Forestry (DoF), MAF will be the implementing agency for the project. DoF is responsible for managing PFAs, village forests and non-timber forest products; designating areas for forest regeneration and commercial plantation and contributing to the monitoring of forest cover for the whole country. DoF retains substantial responsibility and authority for implementation of production related forest-sector policies and manages most of the forest sector technical data and expertise. The department has a good track record of working with the Bank in the implementation of the SUFORD Project. Given this mandate and background, 120

129 DoF is the most appropriate implementing agency and provides a sound basis for expanding activities to additional production forest areas. Responsibility for coordinating the development and reporting of the national forestry issues to the government and international conventions including the national REDD+ program has been with DoF, MAF for since inception but there is now a stated intention to transfer the program eventually to a new Department of Forest Resource Management (DFRM) under the Ministry of Natural Resources and Environment (MoNRE). DoF will continue to take responsibility for managing REDD+ related implementation and monitoring under its territorial mandate and will collaborate closely with DFRM on REDD+ that includes sharing information and knowledge, participation in forums, and joint planning meetings at the technical level. DFRM and DoF will continue to work together on building up REDD+ Readiness including land use planning and strengthening tenure rights, safeguards, piloting tools for Reference Emissions Level (REL) and Measurement, Reporting and Verification (MRV). Given reorganization within MAF and MoNRE; the expanded scope of the project and piloting the landscape approach in forest management and REDD+; effective coordination mechanisms will be established between DoF and related departments in key ministries. The Prime Minister s Ordinance (2002)on Piloting the Formulation of Provinces as Strategic Units, aims to clarify roles and responsibilities between central and sub-national levels as well as building their capacities in strategic planning and implementation of government policies. Under these directions, the project will ensure close coordination with and active participation of provincial and district governments in the design and implementation of project activities in project provinces. The provision of a special funding envelope of USD 50 million in grant under FIP called a Dedicated Grant Mechanism (DGM) for Indigenous People and Local Communities in all eight pilot countries presents a unique opportunity for these groups to engage directly in both the planning, design and the implementation of government planned SUPSFM investments and REDD+ activities more broadly at local and national levels. In Lao PDR, the FIP DGM will be led by Civil Society Organizations (CSOs) on behalf of ethnic groups and local communities with a funding envelope of 9% or USD 4.5 million. The World Bank has been selected as a trustee to support CSOs in implementing this program in Lao PDR. The project will ensure close collaboration with CSOs in implementation of the DGM in Lao PDR. A national level Project Steering Committee (PSC) chaired by Minister MAF, to provide policy guidance and enhance inter-ministerial coordination, will be established. Ministries that have an important bearing on effective project management will have representation on this committee. In addition to MAF and MoNRE participant ministries will be MoF as the legal borrower and with oversight on fiscal policy and fiduciary guidelines; MPI with its responsibility for decentralization, and coordinating aid effectiveness; MoIC for its responsibility in setting timber floor price, management of timber auctions and export; and DAEC and NAFRI with national responsibility for agriculture and forestry extension, and research respectively. Other stakeholders including CSOs, particularly LWU and LFNC will also be represented on the steering committee. Provincial and district level steering committees will be chaired by the Vice Governor, and District Governor, with membership from provincial level departments and 121

130 divisions corresponding to the National PSC members. At the grassroots level, a Village Forestry Committee will be established for project activities. Different sectors of the village will be represented including sub-groups, women, elders, youth, and ethnic minorities. See Figure 1. The NPMO will be established at DoF and will be responsible for overall project coordination and management, at the national and province level. The NPMO will also be responsible for financial management, procurement, monitoring and reporting. The NPMO will also be responsible for implementation of national level project components related to policy, legal issues, and forest sector monitoring. The NPMO will have a National Project Manager (NPM), and adequate finance and procurement staff. GoF-TA will provide a long-term CTA who will support the NPM. The institutional arrangements for the project will rely on existing national, provincial, and district departments, divisions, sections, units, and/or offices. MAF and DoF will look after policy and legal aspects of the project and technical guidelines for conducting PSFM operations. The existing REDD+ Office at DoF will look after REDD+ concerns. DoF and FIPD will look after the National Forest Monitoring System. Various DoF divisions take charge of the strategic plan and program for putting the National System of PFAs under PSFM. DoFI will take charge of forest law enforcement and rule of law. DAEC and NAFRI will provide technical support in the development of sustainable livelihoods. DAEC will coordinate its line units operating down to the Technical Service Centers (TSCs) to provide technical services in sustainable livelihoods development and establishment of village forestry associations and cooperatives for input and output marketing and other value chain processes. Departments under MoNRE will look after national level implementation of policy on land use, land allocation, and land titling; the formulation and implementation of management plans for conservation and protection forest areas that comprise forest landscapes with PFAs; and monitoring issues associated with the environmental impact of forest and related activities. The project will also collaborate with external organizations such as LWU, LFNC, NGOs, CSOs, national and regional universities and training centers, and the Lao Wood Industry Association. Each agency/institution or department/division will select a person or persons responsible for their respective project related activities. 7.3 Government stakeholders PAFO, DAFO (agriculture, production forest), MONRE (conservation and communal land titing) Department of Forestry (DoF) will be responsible for overall project implementation, through the National Project Management Office (NPMO) in Vientiane. Provincial Project Management Offices (PPMO) will be established at provincial levels in the PAFO, with District Project Management Offices (DPMO) in DAFO. DoF will coordinate and facilitate the constructive participation of the other involved ministries and relevant line departments. These include, however are not limited to, the Department of 122

131 Import and Export of the Ministry of Industry and Commerce (MoIC), and Department of Agriculture Extension and Cooperatives (DAEC). The NPMO will be responsible for project coordination and overall direction, procurement, financial management, and monitoring and reporting. The PPMOs will share responsibility with NPMO for financial management, and monitoring and reporting at sub-national level and will be primarily responsible for coordinating forest inventory, planning, management and development of PFAs. The DPMOs will also play an important role in monitoring and reporting and will continue to be the core units responsible for operational implementation of PSFM activities in PFAs at the sub-fma level. The land agencies under the Ministry of Natural Resource and Environment (MONRE); will support the forestry team and conduct Participatory land Use Planning (PLUP) and document (application, technical description of boundaries, maps) for communal titling of village use forest Department of Agricultural Extensions and Cooperatives (DAEC) The Department of Agricultural Extensions and Cooperatives (DAEC) will continue to provide national level guidance, support and training to village development activities and exercise an oversight function through its Rural Development Division. Responsibility to deliver technical and support services to, and provincial oversight of, village development activities will be transferred to the Planning Section of PAFO (as PAFES is no longer operational). DAFO will manage on-the-ground technical service delivery to local people in support of CEF preparation including both forest management and livelihood planning Lao NCAW The National Commission for the Advancement of Women (NCAW) is the national machinery for the promotion of gender equality. The sub-commissions on the advancement of women is responsible for coordinating the implementation of national laws, policies and plans for the advancement of women by their respective organizations. MAF Sub-CAW has the Vice-Minister as the Chair. At present MAF engages in a significant step to adopt MAF Resolution on Gender Mainstreaming in Agriculture and Forestry, which will guide their long journey to actualize the goal of gender equality in MAF workforce and women and men in agriculture and forestry population. Capacity building for MAF Sub-CAW is needed in order to carry out gender sensitization within the AF institutions and to monitor gender disaggregated data collection for planning, reporting and assessment purposes MoIC MoIC authorizes the operation and establishment of finished wood processing facilities on the basis of confirmation of the level of sustainable wood supply by MAF. MoIC governs the activities of the commercial forest sector and will be responsible for rationalizing processing capacity with current and long-term sustainable wood supply. Under SUPSFM, MoIC will continue with the responsibility for timber pricing and for establishing and administering the 123

132 competitive bidding system for logs at the second landing. MOIC is also responsible for development and certification of chain of custody (COC) from the second landing onward DoFI The Department of Forest Inspection (DoFI) and the Provincial Forest Inspection Services have the responsibility to enforce forest laws and regulations through monitoring and inspection of timber harvesting operations, log transportation activities and timber processing facilities. DOFIs responsibilities extend to suppression of wildlife crime. DoFI works closely with police, customs services, the army, state prosecutors and the courts to detect forest crime, make arrests, confiscate illegal materials and help punish violators by issuing fines and facilitating criminal prosecution National Assembly National Assembly can support the project with external monitoring and in specific the Ethnic Minorities Committee of the National Assembly would be most suitable for monitoring progress on activities relating to the ethnic communities in the target areas Party and State Inspection Authority The Party and State Inspection Authority (PSIA) is in charge of inspecting the performance of the Party members in public administration both the government and local administration. PSIA not only inspect the performance of the mandate of Party member but also consider the complaints from the general public regarding the execution of development projects. In practice, it is another channel of complaint when the aggrieved party failed to protect its right under administrative and judiciary procedures, then it often will go to Party and State Inspection Authority Technical Service Centers Esperience has highlighted the need for a smaller management unit working closer with the project beneficiaries. In line with the decentralization policy instructions on piloting of threeformulation of the finance sector (Sam Sang) Number 2202/MOF, Vientiane Capital, dated: 15 August 2012 the project will strengthen existing District Agriculture Extension Offices or establish Technical Service Centers. In these centers staff from DAFO, DoNRE, and other relevant offices will be placed. By establishing and strengthening these sub-district technical service centers it is expected that the project will be able to work more effectively and efficiently LFNC/LWU Mass Organizations and Civil Societies in Lao PDR are actively involved in participatory planning and awareness raising activities to advance the government s development agenda at the grass-roots level. Their role in forest management is just beginning to take shape, as are government practices for engaging civil society in development plans. Relevant mass organizations who have been identified, although underutilized in SUFORD project 124

133 implementation are the Lao Women s Union (LWU), and the Lao Front for National Reconstruction (LFNR). With respect to institutional arrangements, the key recommendation emerging from all documents is that the Lao National Front for Construction, and the Lao Women Union (LWU) should be more closely involved in implementation of project activities. Dedicated funds for involvement of the LWU and LFNC will be made directly available to the LWU and LFNC to overcome financing issues limiting coordination/co-implementation during the implementation. LNFC is organized on all administrative levels from national to village level. LNFC includes senior citizens, veterans, and represents different ethnic groups. Its main aim is to promote a sense of solidarity and equality of among the population irrespective of social status, ethnicity and religion, in line with article 8 of the Constitution The LNFC currently has overall charge of the planning and implementation of ethnic minorities programs. The LNFC coordinates with the Party, the ministries and the relevant committees. LNFC on village level should be utilized by the project in the participatory planning process and during the implementation of village based activities 17. The roles of the LWU are to educate women of all ethnic groups on the Constitution, Laws, Legislations and International Conventions related to the rights and benefits of women and children and to mobilize and advocate women to actively participate in the socio-economic development; to take part in protection of fine culture and traditions of Lao women of all ethnic groups among others. LWU is currently implementing community forest project in Bokeo and Luangnamtha in the North. LWU has rich experience in Women In Development Program, which is similar to Village Development Program implemented by MAF. LWU can be a partner to support women in the program areas 18. The activities include Buad Bang Pa a Buddhist terms and process for ordaining forest. The activities start with village participatory planning process (PPP) involving both men and women. They partner with PAFO and DAFO in conducting session on gender issues in forest and in general, awareness raising on forest protection and use and other issues related to poverty reduction (political obligations). In the session, the villagers discuss on how to use forest product in village common forest to balance forest preservation and livelihood. The session also helps the villagers to come up with village rules for forest use, community-based monitoring and control of village forest. Penalty measures and amount of money collected as fine are also set as part of village forest rules Lao Bar Association The legal profession, which is attached to the formal court system, is in its infancy in Lao PDR. The Lao Bar Association (LBA) was established in its present form in 1989 by PM Decree 24 and developed in 1996, pursuant to Prime Ministerial Decree 64, and currently the LBA has 101 full members, out of whom 9 are women. The average age of members is 50. There are Other government agencies specifically working with ethnic communities are: (i) Ethnic Minorities Committee of the National Assembly; and the (ii) Institute of Cultural Research and Institute for Linguistic Research, within the Ministry of Information and Culture. 18 Indufor (2012). 19 Idem as

134 candidates, of whom 5 are women. There are 35 persons in the incoming batch of candidates, 9 of them women. The LBA consists of 9 sub-committees, namely Legislative, Inspection and Disciplinary, Technical and Education, Financial and Administration, Public Legal Education, Legal Aid and International Relations Committees. The LBA conducts a general assembly once per year and its president is elected to serve a three year term. With assistance from UNDP, seven regional offices have been established, aiming to make legal services accessible to the population. The current LBA membership can be divided into three categories. The first group consists of senior and older lawyers who retired from the Lao civil service or who used to work in independent professions. The majority of lawyers in this group hold a law degree from France or has studied for a qualification at the same. The second group consists of lawyers who have studied law in Russia, or in other socialist and western countries, including the US and Australia. The third group of lawyers is represented by young lawyers who have graduated from the National University of Lao. However, it has only been recently that this group of law graduates has started to join the LBA through the Intern Training Program initiative. The LBA s profile in the country is very low. While lawyers are better known in urban areas, they are still an unknown breed in most rural areas. Citizens generally have a limited understanding of the law, the role of lawyers, and the legal system, particularly in rural areas. In Lao PDR, people tend to consult relatives and friends or big man (Phou Yai), rather than lawyers, regarding legal matters. Although this may be adequate in minor conflicts, it has not proven effective when confronting more serious legal issues, especially those involving criminal charges or significant civil disputes. In many such cases, even though there are laws in place to protect the rights of the accused, violation of rights still occurs and many people do not know that they have any form of redress (LBA, 2010). The GoL wishes the LBA to become an independent, self-regulatory organization in the future. The Legal Sector Master Plan (LSMP), which has been approved by the Government, is also committed to making the LBA independent with its own capacity to manage the legal profession as a self-regulatory institution and with a Code of Conduct and rules of procedure for the LBA to conduct its own affairs. A national steering committee has been appointed to implement the LSMP. According to the LSMP, the following activities are envisaged for the period relating to lawyers and the LBA: 1. A Law on Lawyers, a Code of Conduct for lawyers and internal regulations, aimed at strengthening the LBA s professional independence; 2. Improvement of the ability of the LBA to manage their own activities; and 3. Improvement and modernization of the technical foundation of the LBA. There are currently 101 lawyers who hold a license from the LBA and an additional 29 intern lawyers who will be promoted within this year. There are 9 lawyer office units in Vientiane capital city and also six regional offices throughout country: (1) Ban Huaypoun, Pakse distrcit, Champasak province,; (2) Justice department in Savannakhet province; (3) Ban Somsanouk, Thakhek district, Khammouane province; (4) Ban Luangprabang, Luangprabang district, Luangprabang province; (5) Ban Phonexay, Xay district, Oudomxay province; and (6) Ban Phonsavanh, Peak district, Xiengkhuang province. There are also two legal Aid Clinics in 126

135 Oudomxay and Champassak provinces providing legal aid to the poor and vulnerable people including women, children and ethnic minorities. 7.4 Civil Society Organizations As of now, more than 180 Civil Society Organizations (CSOs) operate in Lao PDR. The CSOs generally refer to the international Non-Governmental Organization (INGOs), local Non-Profit Associations (NPAs) and foundations. The Government of Lao PDR, represented by DoF, realizes the importance of the contributions CSOs can make in the project and is willing to explore possible partnerships. However the exact engagement of the CSOs in the project needs to be consulted and designed with the above and concerned stakeholders in a strategic and sensitive manner during the implementation of the project. Potential roles for the CSO to be explored are: free prior informed consultations with communities, participatory planning process and implementation and monitoring of activities. Their role is critical as supporting DAFO team as part of the project field team. Although not sitting as part of the REDD+ Task Force as members, some of the relevant CSOs participated actively in SUPSFM preparation discussions, attend REDD Task Force meetings on an ad-hoc basis and are kept informed of significant developments in the forest sector in general and REDD+, SUPSFM and DGM processes in particular. As part of the meetings conducted, relevant CSOs were informed of the Dedicated Grant Mechanism for Indigenous People and Local Communities (DGM) including the potential allocation of DGM resources to Lao PDR, criteria for using the fund and the possibilities of utilizing the DGM fund for ethnic and local people in Lao PDR. 7.5 Village level committees Village Forestry & livelihood development committees District teams working in villages at the time of SUFORD dealt with the Village Forestry Committee (VFC) in tasks concerning PSFM and the Village Development Committee (VDC) in tasks concerning village development. The VFC is the village committee that administers the Village Forestry Organization (VFO). The main changes to be made in the Project are that: (a) VFOs will no longer be organized, and (b) the Village will be asked to organize a Village Forestry and Livelihood Committee (VFLC) to serve as the link between the village and the project in both PSFM and livelihoods development. The VFLC should be headed by the Village Chief and should include a Secretary and Treasurer as members. One of its important functions will be to organize village teams to work with the PSFM Team in forest management activities, e.g. preharvest inventory, harvest planning, tree marking, supervising logging operations, etc. Another function will be to conduct participatory monitoring of both PSFM and livelihoods development. The VFLC will also be the fund manager of the village receiving shares of timber revenue and managing the Village Livelihood Grant and the Forest Restoration Grant that will be provided by the project to fund approved livelihood and forest restoration proposals of intended beneficiaries. The project will encourage the VFLC to be the catalyst in the formation of self-help groups, nurturing the groups to evolve into production groups and later into associations. Livelihoods 127

136 that are village enterprise-based, e.g. processing and marketing of NTFPs; woodworks producing such products as door and window jambs, and door and window frames; etc, should be owned and managed by a village association. As an enterprise is formed in a village, the production groups that spearhead the production activities of the enterprise should evolve and be formally organized as an association that can legally enter into marketing and similar contracting arrangements Village mediation units In 1997 a Decision of the Minister of Justice (No. 304/MOJ) established Village Mediation Units (VMU). New guidelines for the VMUs were issued by Decision No. 08/MOJ, dated 22 February The VMU is a village level institution which plays a role in resolving disputes which occur within the village. VMUs use peaceful means, based on both the state legal framework and acceptable local traditions. The VMUs have jurisdiction to resolve civil and family disputes, and minor criminal cases. In addition, VMU s other functions are to assist the village administration authority to enhance knowledge of and compliance with State laws in the village. It acts as the disseminator of laws and regulations in the village, encouraging people of all ethnic groups within the village, to respect and strictly comply with laws and regulations. It closely coordinates with the judicial and other bodies involved (GRID, 2005: 25). There are now 8,766 VMU throughout the country. In 2009, the VMUs processed 8,118 cases (of which 5,529 were civil cases and of those, 4,492 of which were solved) and 2,529 criminal cases (of which 1,150 were solved). 2,476 cases remain open representing 30.5% of the annual caseload 20. The main strengths of VMUs are that they provide justice at a community level and use defined rules and procedures yet still provide a further opportunity for parties to re-negotiate and find mutual agreement to resolve the dispute. The Access to Justice Survey (2011) found that community use of VMUs is highest in peri-urban regions. Urban areas are more likely to use State Courts and rural areas more likely to use customary law mechanisms. While almost three quarters of participants in the study knew of the existence of VMUs, only between a third and a half, knew how to access them, believed they were effective, believed they were in accessible locations, and conducted proceedings in understandable languages. Nevertheless, they do succeed in resolving a very high proportion of disputes before them, (between 84-88%), with little notable variation between resolution rates between peri-urban and rural areas. Furthermore, while only 12.3% of respondents had used VMUs, those who had, generally had positive experiences. The Access to Justice Survey (2011) also revealed that 74.3% % of the VMU users reported that someone in the VMU had explained to them how the resolution process works. 86.5% said that the VMU understood the issue they had submitted, 90.5% said that the VMU respected them, 77% said that they are satisfied with the outcome of the VMU resolution process, 86.5% thought that VMU members were fair and neutral in resolving disputes, and 87.8% of the VMU users would use the VMU again. These results suggest that VMUs are largely fulfilling their mandate and having a positive impact in the local justice sphere. 20 Source: Access to Justice Survey in Lao PDR. 128

137 The VMU can assist the village administration to enhance justice in the village; e.g., by disseminating law and regulations, encouraging compliance with the law, and settling minor disputes, both civil and criminal. Such dispute resolution is carried out on the basis of the law, as well as local tradition, but usually in order to reach a negotiated, conciliatory settlement of the problem; i.e., a mediated settlement. A village may be declared a Case-Free Village (CFV) if it meets the criteria defined in Article 7 of Decision No. 209/MoJ dated 19 October That means VMU could resolve all civil matters and small offences, under Articles 25 of the Penal Law, brought before it in a given year, rather than having any of them appealed to a higher level; e.g., the area court. Once declared a CFV, some minor disputes that are not complicated or dangerous to society are resolved within the village, either by the VMU or a customary mechanism. CFV status is accorded with a ceremony attended by Chief of District, local dignitaries and brings with it benefits, such as additional development assistance. The aim of CFV s policy is to educate family members and villagers to know and understand Laws correctly and deeply and have awareness to comply with the Laws, to strengthen harmony and solidarity in family and village levels and to prevent negative occurrences or violation of the law for contribution to the family and village developments and to ensure social justice and fairness at grassroots level. As such, it is something to strive for and is not to be lightly relinquished by village officials. In August of 2009, there were 2,142 CFVs in Lao PDR. However VMUs are not without their weaknesses and efforts to strengthen them are ongoing. Their impact remains impeded by a number of identified factors including; their lack of basic facilities and community education resources, their compromised levels of community trust, legitimacy and authority, delays in their decisions, variable fees, the lack of availability of their members, their non-representative composition (including of the poor and women), their susceptibility to corruption and their insufficient skill-levels and capacity to resolve conflicts and fulfill their mandate. 7.6 Financial management For timely execution of project activities, accounts will be established at each of the project management offices, i.e. at national, provincial, and district levels with ceilings defined based on the level of financial requirement according to the activities indicated in the first annual work plan and on the turn around time for fund replenishment. An exception is that the District PMO may avail of the Provincial PMO account instead of having its own account if the expected rate of financial flow is not high enough to warrant having its own account. Another possible exception is that the expected rate of financial flow of a national agency, e.g. DOFI, may provide justification for the office to have its own account. The decision on how many accounts to keep for the Project will be determined before or shortly after Project start up, but after a detailed work plan for the first year of operations will have been drafted. 129

138 8 EXTERNAL AND INTERNAL RISKS 8.1 Internal risks No project scenario The FIP project presents a genuine opportunity to build upon lessons learned during SUFORD and scaling up and further strengthen participatory sustainable forest management by addressing some of the gaps found under SUFORD. Without the FIP project, the knowledge gained under SUFORD about community engagement for forest management and the confidence growing in DOF and people about the potential on co-management of forest resources will not be allowed to develop further. Communities capacity in preserving and managing forest and natural resources would not be strengthened resulting in a loss of access and incapacity to cope with external pressure over land and resources. The mechanisms set during SUFORD to increase capacity of the Department of Forestry (DOF) and Department of Forest Inspection (DOFI) in controlling timber extraction ensuring law enforcement will also be made obsolete and would allow encroachment and unauthorized logging inside the PFA. Therefore, without the FIP project, the mechanism of forest management may revert back to the business as usual where local communities are disempowered and are evinced from accessing production land inside PFAs and customary use of resources on one hand and potential conflict due to unilateral decisions by the responsible government agency, not acknowledged by the communities and resulting in inter village disputes. The upshot will likely be that the loss in forest cover, and the negative impact on the livelihood of forest dependent people that result, will remain unabated Risks related to livelihood loss Project impacts include a potential for constraints on or the loss of livelihood due to restrictions on selected livelihood activities or access to forest resources. The impact however, is expected to be minor because the Project would preserve or enhance the current land and resource use patterns to the extent that is technically possible and environmentally sustainable, based on participatory community planning processes and PLUP. The project also will seek to introduce more sustainable resource use and a diversity of forest-based livelihoods options, including agroforestry systems, whether or not villagers are economically displaced. Land acquisition is expected to be minor, if any, because most civil works would be carried out on public land Risks related to Community refusal to participation The development of sustainable forest use may well require a short term restriction of access to certain parts of the forest that they have had generally free access for livelihood activiites. Also, community members may not be able to clearly understand and exploit support provided by the project for alternative livelihoods. There are therefore possibilities, although slim, that communities refuse to participate in project implementation or adopt activities that may result in short term losses in livelihood. The project will seek to address the risk by conducting Community Engagement based on gender sensitive consultation processes through adoption of the enhanced participatory land 130

139 use planning (PLUP) methodology and community consensus of village area boundaries. Beneficiary communities will be fully informed of the community engagement processes and potential risks involved in developing sustainable forest resource use, and develop and endoprse the Commuity Action Plan (CAP) as the expression of broad community support to project activities to be implemented for sustainable resource use and livelihods. Conversely, community members have an option to opt out of the project by not agreeing to endorse CAP at the community level Risks related to weak consultations and participation The project s core activity is to work with communities which are reliant to varying degrees on forest resources for their livelihoods. Many of the communities to be included in the project are culturally and linguistically distinct ethnic groups who live outside the mainstream Lao culture Land tenure and access to natural resources Options for secure tenure of households and communities in Laos are constrained by uncertainty and competition for land. The legislative framework is under revision, and clear divisions exist among decision-makers as to future directions. On the one hand there is improved recognition for individual and community tenure rights and stated national objectives to reduce poverty and improve productivity through secure title for rural farmers. On the other hand, there remains strong incentives for government to retain control over land and postpone decisions. Furthermore, projects provide low financial incentives to provincial and district staff for titling compared to Foreign Direct Investment (FDI) will prove interesting in terms of how matters evolve. Analysis in this section is based on existing practices, laws and policies at the time of ESIA preparation, as well as on precedents established in several provinces with strong support of those provincial authorities. Given the current emphasis of devolving responsibilities from the Center to the Province and District (but not village cluster or kumban) (referred to in Lao as sam son or 3 pillars), the future may rest on the principle of establishing methods and processes acceptable to provinces which favour community tenure rights which enable long term community investment opportunities and reach the national objective of turning land into capital. Such methods and processes need to be defensible by local authorities to the Center under whichever legal framework is in operation at the time, and provide revenue to local authorities either in the form of cost per title or tax revenue per land parcel. The methodologies to secure land tenure both inside and outside Production Forest Areas (PFAs) will need both financial support and development of implementation processes. Based on assessment of progress, methodologies can subsequently be expanded to other districts and provinces. Lessons from SUFORD. The Participatory Sustainable Forest Management (PSFM) objective of SUFORD remains the focus of the SUPSFM program and is intended to be scaled up. While SUFORD benefits included some agroforestry opportunities and village-level benefits sharing, some unintended adverse effects also occurred, especially in villages of ethnic minority groups. Current forest use was well identified under the project, but changes in future forest use was determined without 131

140 sufficient consultation or integrating existing land uses, while women's views were not adequately considered. Tenure security was integrated into SUFORD's activities in that Memorandum of Understanding were signed between individual communities and DOF to document their respective rights and responsibilities. Focus on land within PFAs did not take account of external pressures on villagers' land outside PFAs. Villagers who lost access to agricultural land outside PFAs were sometimes forced by circumstances to clear land inside PFAs for cultivation purposes. SUPSFM needs to address these concerns, particularly where ethnic minority groups are common and where their land uses may be different from Lao-Tai ethnic groups. The rise of migration of individuals and families from other provinces more rigorous in preventing slashand-burn, also needs to be monitored. This is said to be more common in northern than in southern provinces, and needs to be a consideration in the three new provinces. It would not be useful to make land and forest use agreements with traditional communities, only to find that migrants can ignore these and open up land with impunity. In particular, the following improvements are needed: (i) better consultation processes through adoption of the enhanced participatory land use planning (PLUP) methodology developed in 2009, which has been pilot tested in several provinces to date ; (ii) integration of gender sensitive consultation and data management; (iii) preparation of activities which give equal weight to men and women's land and natural resource use; (iv) community consensus of village area boundaries, activities, land use and land tenure, for PFA land areas targeted for SUPSFM activities; (v) improved enforcement capacity to local communities, supported by provincial and district authorities, to prevent villagers and migrants opening new slash-and-burn areas; (vi) inclusion in the project methodology of community land adjacent to but outside PFAs, and making it eligible for agroforestry support. Land Policy and Tenure. Currently relevant policies and strategies for land tenure issues in SUPSFM WB include: Political Report of the 9th Party Central Committee 7th National Socio-Economic Development Plan ( ) (NSEDP) Land Law 61/PO, 2003 Forestry Law Forestry Law, No. 6/NA, 2007 Decree on State Land Lease or Concession, No. 135/PM, 2009 Decree on Environmental Impact Assessment, No. 112/PM, 2010 As of the time of ESIA preparation, the legislative framework for land and forestry is under revision, with a new national Land Policy, Land Law, Agriculture Law, and Forestry Law in preparation. Matters may therefore change during the first year of project activities, with possible consequences for subsequent implementation. However, the 7th NSEDP notes the intention to issue land titles to farmers under the food security and poverty reduction strategy of the agriculture and forestry sector. It proposes to issue one million titles under village land use plans, but only if this can be done without creating conflict. Importantly, the Plan recognises that: "Fertile land and quality forest remain central to the well being of most Lao people and it is not in great abundance. Sustainable land management is therefore criticial. Issuing secure land titles, especially to rural families on priority, will provide safeguards and help mitigate risks". Additionally, the Political Report of the 9th Party Central Committee to its National Congress identifies the need to speed up land allocation and to " ensure that long-term 132

141 land use rights are given to each farmer in rural areas", while "while encouraging business operators, villagers and the general public to plant trees in an expansive manner, contributing together with the global community to fighting global warming and climate change". Many issues have been addressed in the draft Land Policy, including recognition of customary land management rights, collective management and community management rights. However, gaps remain. According to the Economic, Planning and Finance Committee of the NA which is primarily responsible for shepherding both Land Policy and Law through the preparation and ratification process, there are five key issues which have not yet been adequately addressed in the Policy. These are: (i) definition of different land tenure rights remains unclear, while community forest rights are specifically excluded. Rights are restricted to utlization and management as opposed to tenure; (ii) sectoral management responsibilities in the postreorganisation phase are unclear and still provide opportunity for misunderstanding; (iii) methods to reach the NSEDP and 9th Party Congress objective to "turn land into capital" remain unexplained. It is not specified how the country can ensure all Lao citizens have equal access to land; (iv) decentralisation versus centralisation is poorly explained, nor how this will work out in practice; (v) the topics of compensation in the event of compulsory land expropriation are not satisfactorily addressed. There is a slight reference to the need to compensate customary land if it is appropriated. The topics of resettlement and grievance redress mechanisms are not referred to at all. Government retains the authority to expropriate any type of land, whether covered by tenure rights or not, for purposes of national interest as well as for Foreign Direct Investment (FDI) opportunities. This means that irrespective of any tenure document anyone might possess, there remains limited protection against land being sequestered. A title or concession lease may only increase the value of compensation a developer might have to pay. Under current law, and if future legal revisions enables government to retain comprehensive rights of expropriation, land tenure in Laos can only be enhanced, not guaranteed, and rest on making expropriation as expensive and unattractive as possible. Addressing land tenure under SUPSFM must therefore take into account a very dynamic set of circumstances, but with stated Party and national intentions to safeguard rural tenure security as a key strategy to reduce poverty, improve agricultural production, and enhance environmental protection. SUPSFM must therefore help Lao PDR address: (i) access to natural resources for livelihoods enhancement; (ii) long term security over productive land and forest resources for rural individuals and communities; and (iii) potential for investment choices under project activities; (iv) authority delegated to districts and villagers to apply on-the-spot fines and confiscation of equipment where community regulations are breached. Elsewhere in Laos the concept of community land titling (CLT) has generated substantial interest in the development world. Some practical precedents have now been established, most importantly in Khammouane province, where in January 2013, CLTs were issued for village forest and common agricultural and grazing lands for 5 villages in Nakai district. Each village received one CLT for their forest land, amounting to just over 9,000Ha for the 5 villages. The work is ongoing in Nakai, and a further 9 villages are scheduled to have their community land titled, with a final total of almost 17,000Ha of forest land covered by this form of secure tenure. The Nakai example demonstrates that where there is political will at provincial level, results can be achieved and tenure for communities secured. The province and Nakai district 133

142 authorities are happy to share their experiences and lessons learned in establishing this important precedent, so that other provinces and districts can learn by their example. Under the SUPSFM project locations, CLTs may be issued in some areas but not others. DoF estimates that some 34% of forest land is community forest lying outside designated forest areas. For community use agroforestry land (including common use agricultural land) in villages outside, but adjacent to, PFAs, more secure community land tenure can be sought through CLTs. This is a new approach and will require linkages forged with MoNRE for wider dissemination, including budget agreements to fund respective steps in the process, as well as visits to Nakai to internalize lessons learned. Community Action Plans (CAPs) prepared after PLUP will need to include agreed CLT use regulations. However, in designated forest areas, such as PFAs, other forms of legislation apply, and neither individual nor community land titles are permitted. Nonetheless, leaseholds are allowed within PFAs for individuals, farmer associations, community or production groups (collective/luam moo). Self-help groups, can apply for additional utilisation rights or land leases on unstocked or degraded village use forest land for cash crops, tree crops or NTFPs. Such leaseholds could cover a larger area within and outside PFAs and have a 30 year duration, as is the case with FDI and other concessions, with an option to extend its timing beyond this period. Households, jointly or individually, can apply for leases up to 3has per labor in the household. Demonstrated commitment to planting or reforestation should first be exhibited by applicants to ensure that genuine reforestation ensues. In this way, those managing and protecting the forest can more clearly be identified, also making it easier to assign benefits and payments. Leaseholds provide long term tenure, and the nature of leaseholder needs negotiation and agreement. Leasehold land parcels can be individual, or for a community as a whole, or for farmer self-help groups, or for cooperatives. There may also be more than one leasehold held by more than one type of leaseholder in the same village, and for different purposes. The number of leases, units of entitlement and benefits-sharing constituents, need to be discussed and agreed between the project and communities, and included in an investment plan which will be a central component of the CAP. 8.2 External risks Village consolidation National policies relating to poverty reduction have been revised several times over the past ten years in Laos. Although many of these are well-intentioned, poor implementation has instead led to marginalisation of many communities, particularly from smaller ethnic groups 21. One of the most significant is the 8 th Party Congress and Directive Order No. 9 of the Politburo, 8 th June 2004 which instructs the merging of villages in order to maximise the distribution of poverty reduction activities and accelerating economic development. It is also the principal policy document cited by local authorities to develop land concessions with the stated objective of turning land into economic opportunities whereby national development may be speeded up. 21 In 2006 a Participatory Poverty Assessment (PPA) was conducted by James R. Chamberlain supported by the Asian Development Bank, which was clear on the adverse impacts of non-project-related relocation and consolidation of villages. James R. Chamberlain, Participatory Poverty Assessment II, National Statistics Center, Asian Development Bank, ADB TA 4521, Institutional Strengthening for Poverty Monitoring and Evaluation, The situation has accelerated since this study. 134

143 This policy means that in upland areas where villages are comprised of less than 200 persons, and of less than 500 persons in lowland areas, they must be amalgamated administratively with another village to meet the minimum population requirement. The consequence of this has been an increase in land and natural resource disputes, as unfortunately village merging may not take account of the ethnicity of villages, nor of preexisting customary use rights. For example, of the ten villages in Luang Namtha surveyed by the TA project preparation team, five were consolidated in previous years. This has mixed ethno-linguistic groups such as Khmu, Akha, Tai Dam, Leu, Lao and Hmong into one village. Each of these have different languages, land use practices, perspectives on gender equity, property and inheritance practices, etc. Village headmen from one ethnic group appointed by local government may have no authority from the perspective of another group. Once a village has been consolidated, typically a more dominant group will see the land of the "new" village as legitimately theirs to use, leading to disputes between themselves and the previous users, as well as unwanted pressure on land productivity able to support a smaller population, but not a larger one. The consolidation and relocation elements of the national policy are also problematic from the WB's perspective. The WB has stated policies which do not allow it to support this kind of relocation or loss of resource access, nor to permit project funds to be used to facilitate the national policy. In ongoing projects the WB has instituted exclusion criteria disallowing villages that have been consolidated in recent years (or slated for consolidation within the next several years) from being included in project financing Relocation The relocation of villages from the highlands to the lowlands or within the highlands is linked to strategies to reduce shifting cultivation, eradicate opium production, improve access to government services, and consolidate villages into larger, more easily administered units. While government relocation policy aims to contribute to the development of the target population, to provide remote populations access to basic services such as health, education, water or electricity, and to guarantee them a better livelihood, resettlement is reported in many cases to have led to increased poverty, food insecurity, and leads to high mortality rates. As a result, the issue has raised concerns among a number of government agencies, donors and international organizations. Resettlement has also accelerated the dissolution of customary law and practices. Many ethnic group villages in the project area are no longer found in their original habitat, but have been resettled because of GOL policy to persuade the groups to give up shifting cultivation and migrate out from the highlands. Villages are also resettled because of infrastructure development such as dams. In resettlement cases villages often end up consisting of more than one ethnic group. In such villages communication needs to take place in Lao or otherwise there is limited communication. Where some ethnic groups came first land rights and forest access of newcomers may be somewhat curtailed. The resettlements, which are intended to promote the settling of the highland populations by enforcing a restriction on (pioneer) slash-and-burn agriculture, may actually cause increased and diversified rural mobility, where people move back to their old areas to cultivate the land due to the limited land where they were resettled. 135

144 The resettlements are seen by GOL to facilitate the implementation of a rural development policy new roads, schools, sanitation works, the implementation of land tenure reform, intensification of agriculture, preservation and exploitation of timber resources (the primary source of income for the country) are all designed to accompany this new dynamic of population settlement. The resettlement means that many ethnic groups no longer have a long experience with the forests around them. They may no longer have a spirit forest area and the burial forest would be a new area. Also the indigenous knowledge of plants and trees may be lost if they are moved to lower altitudes. In the lowlands some lowland Lao villages are very old with well-established cultural traditions and rules for protection of forest resources. A further impact of relocation is diminished status for women. When major upheavals in communities are experienced, as in the relocation of villages, or when access to natural resources is denied, women lose control of agricultural land. This may cause them to cease to participate in rituals for ancestors or to preside over agrarian rites. Women s power to preserve culture may be lost as a result; thus, denying them a key source of power and status in their communities and widening existing gaps of gender inequality Land concessions The topic of land has become one of the most pressing in Laos and one of the most complained about by villagers to the National Assembly (NA). Provision of land concessions has caused the loss of land not only in villages but also in forestry and watershed areas. Problems arose because concessions were granted without surveys or supervised land allocation, without consultation with local communities, with no consideration of existing land uses by villages, coupled with a perception that granting concessions enables government to achieve targets in other stated policies (such as eradication of slash and burn cultivation). Some land concessions are for as long as 70 years, which means original residents will never be able to repossess their land within their lifetimes. Many concessions have reduced the cultivation and forest resource areas available to villagers, and pushed them into opening up land in designated forest areas. Consequently thousands of villagers have lost their right to use or access their land, and been forced to leave their villages and find work outside farming. At present a moratorium has been called on the granting of all concessions until 2015, but only for mining and rubber plantations. Similar moratoria in the past ten years have been short lived and not strictly enforced. Land concessions have been championed as a means of reducing poverty by opening land productivity. In many instances, the opposite has been the case, with land losses to communities resulting either in greater impoverishment, or pushing villages to encroach on protection, conservation or production forest areas. A recent publication on concessions in Laos 22 has painted a stark picture of the current situation. It notes the lack of reliable information on the scope and scale of land concessions in the country, but that the number of such deals has increased by fifty-fold between 2000 and This study identifies, for the first time, the actual scale of land concessions, who has them, and where they are to be found. The study notes the majority of concessions are in the form of leaseholds not amounting to more than 5has. It distinguishes conceptually between a 22 Concessions and Leases in the Lao PDR: Taking Stock of Land Investments, by Oliver Schonweger, Andreas Heinimann, Michael Epprecht, Juliet Lu and Palikone Thalongsengchanh, Center for Developoment and Environment (CDE), University of Bern, Bern and Vientiane, Geographica Bernensia,

145 "concession", being mostly FDI and larger in size, from a "leasehold", being mostly domestic investors and smaller in size. DoF favours leaseholds rather than concessions for communities under the SUPSFM project. The study found that while only 5% of concessions are very large and over 1,000Ha each in size, they account for 89% of the total land area under investment. Agriculture and forestry concessions account for 14% of those awarded. Domestic investors account for 65% of awards, but on average, for investments ten times smaller than foreigners. China, Thailand and Vietnam are the largest investors, with China having more presence in the north of the country, and Vietnam in the south. Table 21: Overview of Concessions and Leases in Lao PDR Source: Oliver Schonweger, Andreas Heinimann, Michael Epprecht, Juliet Lu and Palikone Thalongsengchanh, op cit As the studies maps indicate, concessions affect every province where SUPSFM is to be implemented. Investment tends to be in more accessible locations where the poverty incidence also tends to be lower overall. However, more than half of villages where concessions use village land are poorer than the national average. A direct link between poverty incidence and presence of concessions has not been made, but it does note that villages with foreign-funded forestry projects are the most likely to have poverty incidences higher than the national average (62% of villages with forestry projects) 23 by virtue of the fact that larger tracts of land are available in upland areas, which are by definition poorer than the national average in any case. By contrast, areas under domestic investment have the lowest poverty incidence (22% of villages with leaseholds), but also that very few agriculture and forestry investments are made overall Land concessions overlapping SUFORD PFAs Concession requests that overlap PFAs are routinely rejected by the Department of Forestry and existing concessions cover only a tiny fraction of designated PFAs. Nevertheless, in Laos concessions are and will continue to be a serious threat to sustainable forest management especially for forest areas outside of PFAs. Even inside of PFAs there are a number of large legacy concessions for mineral exploration and hydro development that predate the establishment of the PFA system.. It was reported by DOF counterparts that new concession 23 Ibid, section

146 requests were being submitted with increasing frequency before the moratorium was imposed in June More seriously some concessionaires disregard the boundaries of designated forests and consciously or unconsciously encroach on designated forest areas when their concession is entirely outside. In Attapeu, for example, rubber and eucalyptus plantations have encroached on SUFORD AF village lands largely outside but also to some extent inside the PFA. When people lose areas where they can do annual cropping, graze cattle, collect firewood and/or NTFPs, they may have to encroach on areas zoned as production, conservation, regeneration, or protection forests or be forced completely out of the area. Villagers livelihoods are so negatively impacted by concessions in some areas (such as parts of Attapeu) that they have no choice but to expand their cropping and grazing areas inside designated forest areas. If the encroachment area is large it can threaten the certification status of forest management areas that have been previously certified by the Forest Stewardship Council (FSC) undermining investments and substantial efforts that have been made to develop, protect and certify the area. In Phoutalava PFA, Salavan Province, there are private stakeholders within the PFA who own rubber plantation areas. The increase in rubber and other concessions is a development strategy promoted by some local authorities to generate revenue. Provincial and District planning appears to be disconnected from the MONRE and MAF strategies for Protection and Production Forest in these areas. It has also been reported that some District and Provincial Governors believe that cassava and rubber concessions are an effective means to alleviate poverty and should be promoted within the PFA. A 122 ha cassava plantation was undertaken by an entrepreneur who purchased PFA land from the villagers. The area was likely to be regeneration forest prior to complete clearance; an estimated m3 of timber was destroyed. There is a road that has been constructed and renovated which provides access to parts of Phoutalava. It is reported that a foreign company has conducted logging in this area and has submitted an additional request for a provincial logging quota. The company has been directed to submit its request to DOF where it is likely to be rejected. However, this is an indication of the need for increased dialogue with local decision makers and the need for stronger enforcement actions when illegal logging occurs in PFAs in the future. In Bolikhamxay Province, at least one cassava factory is proposed in Khamkeut district, and while this is outside the SUFORD area, it has impacted the FSC certified rattan area. A foreign company has also been investigating the potential for a berberine concession within the boundary of the PF, but the location has not been approved. The price of berberine is very low at present. Such schemes are welcome if they are implemented in conjunction with local communities and harvested in a sustainable manner. However, many such concessions merely operate to extract the resource with no sustainable management plan and little if any revenue returning to the local communities. The issue of NTFP licenses needs to be reviewed during the SUPSFM project, since this is not yet well articulated or understood at local levels. It is reported that some officials believe that commercial NTFP concessions can be granted within PFA areas, with no regard for the local communities current rights over sustainable harvesting. Several mining concessions continue to exist within PFA areas; these are either exploitations, prospection or other forms of license. Some of these, such as the mine in Phoutalava also come with a reported annual allowable harvest, while others merely exist on paper. It has been 138

147 recommended that a dialogue be organized with the Department of Mineral Resources and the Department of Energy Promotion and Development to ascertain the status of existing mineral and hydropower concessions within all 51 PFAs. The NLMA (2010a) identified 236 concession and lease projects on state land in Xayaboury province, with a total area of 10,018 ha, 9,827 ha (98%) was concession and 191 ha lease. The largest holdings were in Hongsa district (6,250 ha), followed by 806 ha (8%), and 670 ha (7%) in Sayabouly and Kenthao district respectively. The smallest area is in Thongmixay district with only 7 ha (0.07%). Mining concessions occupy the largest area at 6,018 ha (60%), followed by thea agricultural sector 3,767 ha (38%). Within the agricultural sector, 3,363 ha is under rubber plantations. The majority of rubber plantation areas were identified in Sayabouly, Phiang and Botaen districts. In the mining sector, the concession area for lignite exploitation in Hongsa district was 6,000 ha (99.7%), the rest being given to quarry rock Land concessions in Bokeo Province In Bokeo province a total 32 projects exist, out of which 14 projects (44%) are implemented in the form of lease, and 18 projects (56%) in the form of concession.. The concession projects within the industrial sector are reported as the highest with 10 projects (31%), while 8 projects (25%) were found within the agricultural sector, and 5 projects (16%) within the mining sector. Most of the investment projects within the agricultural sector are involved in rubber plantations which are largely implemented within Meung and Houaixai districts. The majority of the concession projects in the mining sector are engaged in the exploitation of cliff-rock, sapphire, and gold sedimentation. The total area of state land being granted to investors for lease and concession was reported at 75,854 ha, out of which the concession area occupied 75,801 ha (99.93%) while only 52 ha was being used by lease projects. The district where the largest area of lease/concession existed is Houaixai covering a total area of 71,165 ha, out of which 67,600 ha is occupied by the concession area of the Project for Bio-diversity Preservation and Natural Tourism Site Development. The rest of the lease/concession area was found in Tonpheung district (3,083 ha) and Meung district (682 ha), respectively. For rubber plantations, the provincial authority has promoted the 2+3 contract farming in order to secure benefits for the local community. This scheme requires the participation of local people who will be benefited from such investment with a minimum 60% of the total production amount. This method of contract farming is quite effective in comparison to the concession projects implemented in other provinces, especially those in Southern Lao, where the investors fully invest in the concession while the local people can only benefit from daily wage employment. Promotion of 2+3 contract farming by the provincial authority can be considered as another option that contributes to rural community development, improvement of living conditions of the people, and a gradual move towards poverty alleviation. 139

148 Land concession in Luang Namtha Province According to NLMA (2009) 147 concessions and leases on state land were granted in Luang Namtha. The majority of the projects are using smaller lease areas within urban and peri-urban areas, mainly within the construction and service sectors. Most of those projects lease an area smaller than 5 hectares. The sector acquiring most area is with the agricultural sector, mainly for rubber plantations, which includes approximately 30,000 hectares of small holder concessions. Most of the rubber plantations in Luang Namtha Province are in the form of 1+4 contract farming. Only six of the 35 rubber plantations are domestic investments. There are five mining sector projects including concessions for copper antimonite, coal and quarry rock. There are eight projects in the industrial sector, mainly for processing factories that require relatively small areas of land. During a field visit in November 2012 it was observed that large areas of Long and Sing districts, primarily following the Nam Ma valley are under banana plantations, mixed with rubber. It could not be confirmed whether these were new concessions or converted rubber plantations. A tin mining concession occupies part of the Nam Fa PFA, and the wastewater from this site is said to be contaminating local waterways. In addition two hydropower projects are being proposed, the Nam Fa HPP and the Nam Long 1 and 2 HPP. The Nam Fa HPP will flood back the Nam Fa river through the Nam Fa PFA and also flood the Nam Kha through Sammuang PFA, Bokeo province. The Nam Long HPP is a mini-hydro development on the Nam Long river, which borders the Nam Fa PFA. While the development does not encroach directly into the PFA, new access tracks and infrastructure siting will open areas that did not previously have access and will lead to increaseed human activity. This hydropower project requires a small dam of 18m in height and a headrace tunnel that cuts off a loop in the Nam Long river to divert flows to the 15MW powerhouse some 10 km downstream. The head generated by the dam and river gradient is about 470m (Maunsell and Lahmeyer Consultants, 2004). Long District In Long there are only seven projects (7%), however, the areas being granted for such projects are larger in comparison to the other districts, covering altogether an area of 16,772 ha or 66% of the total area within Luang Namtha Province. A joint venture concession project alone covers an area of 10,000 ha along the Mekong River along the international border with Myanmar. A foreign company which had invested in a rubber plantation in Ban Houaimor, Long district later relinquished an area of ha after realizing that the area was not suitable for rubber plantation because of high altitude. These slopes have been cleared significant soil erosion is unavoidable, unless appropriate reforestation and steps to arrest soil erosion are undertaken. Nalae District In Nalae district there is only one foreign company engaged in promoting rubber plantation under the 2+3 contract farming. The company was provided approval by the District Governor to establish a demonstration garden over 20 ha and plantation over 2000 ha. However the 140

149 company cleared 329 ha area for the demonstation garden leading the Provincial Governor to order the company to stop land clearing. At present the provincial and district administrative authorities are trying to find a solution and to impose measures towards such action. However, up to now the company still continues running the rubber plantation and has not yet moved out from the area even though it was ordered to do so by the Provincial Governor. Viengpoukha district: There are 11 projects (10%) in Viengphoukha district, with a total area of 1,634 ha (6%). A company was authorized to promote a rubber plantation under both modalities of contract farming (1+4 and 2+3) on an area of 3,000 ha. However, the approval of the land for the rubber plantation was done without any land zoning in advance. Therefore some areas are situated within the area of Nam Ha National Protected Area. The area belongs to the villages Ban Namnoi and Ban NamPamanh, and covers 450 ha of the Nam Ha National Protected Area Land concessions in Oudomxay Province By 2009, 111 concessions had been granted on state lands and 78 projects were being implemented, 23 are sleepers that have shown little progress or activity, six projects are in early stages of exploration, and four projects were stopped or cancelled. The largest number of concession grants were given to the construction sector, followed by agriculture. The largest areas were for mining grants (NLMA, 2010). In the agricultural sector, the majority of projects were for plantations. Eight projects for rubber,, and two projects each for eucalyptus, and aromatic tea (13%). The rest of the projects were for sweet corn and wild orchid plantation. The majority of agricultural concessions were under 100 ha and located in the districts of Namoe, Pakbeng, Lah, and Xay (NLMA, 2010). Most of the projects in the industrial sector were small scale leases and concessions for operating processing factories for timber, corn and animal feed. In the mining sector, most projects involved the land concessions for copper, limestone, salt, tin and zinc exploitation. At least three mining concession soverlap Nam Phak PFA although the purpose and status has not been verified. Mining concessions in Oudomxay cover 5,039 ha, which is 77% of the total area under grants (NLMA, 2010). Oudomxay hosts a part of the proposed 420 km Kunming Vientiane railway link that is planned to connect northern and central provinces of Lao with China. On the Lao PDR side the railway will originate in Luang Namtha Province and then pass through central Oudomxay. The proposed railway line and service corridor will pass within 5 km of Nam Phak PFA and directly through the Nam Fa PFA of Oudomxay province Migrations and labor In the Lao PDR, about 73 percent of population lives in rural areas. Since 1995 there has been a substantial movement from rural to urban areas across all provinces. In 1995, 83 percent of the population lived in rural areas. This trend to move to cities has been particularly strong in provinces such as Borikhamxay, Vientiane Capital, Xayaboury and Xiengkhuang, but slow in Oudomxay (no such movements), Luangnamtha, Huaphanh, Saravane, and Sekong. There is a positive correlation between high population increase and movements to cities, which suggests that internal migration plays an important role (NSC, 2012). 141

150 Unplanned migration of shifting cultivators from other Northern regulations including Phongsaly, which is quite strict about preventing slash & burn. This needs to be considered, since even if communities agree processes, these migrants can bypass a village process and just do what they want. In northern Laos Chinese companies work under the 2+3 approach according to which villagers keep their land. The problem lies in the need of labor for harvesting the rubber. For Louangnamtha Province alone it is estimated that 20,000 to 40,000 laborers are going to be needed and in Oudomxay Province 48,000 workers will be needed over the next three years. In both cases, Chinese labor migrants are likely to come to fill the gap. A group of Vietnamese rubber growers has urged the Lao government to allow it to import more technicians as the country cannot supply enough skilled workers Illegal Wildlife Trade Significant overharvest of wild vertebrates typifies all areas of PFAs visited under the SUFORD biodiversity assessments and repeated violations of wildlife protection and trading laws were observed (MAF,2010). Lao PDR wildlife law is adequate on paper to prevent hunting-driven extinction of vertebrates, but enforcement is uneven and throughout the country harvestsensitive wildlife is declining (MAF,2010). Illegal hunting is done to supplement domestic consumption or for commercial trade. Wildlife trade has been increasing in recent years due to improvement of road networks, increasing wealth in provincial towns, and expansion of trade networks with Vietnam and China. SUPSFM road and track upgrading may complete the links between markets and wildlife. The building of roads into new areas can change the cost:benefit ratio in favor of hunting. This would lead to collection of a far wider variety of wildlife species for sale from areas which were previously inaccessible and remote (MAF, 2010), and accelerate local stock depletions and contribute to extinction. SUPSFM activities that have the potential to facilitate increased illegal wildlife trade are: Track construction and upgrades Road network development Road upgrades. Networks of roads in logging areas or village forest areas not previously accessed can result in a major proportion of the total logging-associated canopy loss factors, resulting in habitat fragmentation and habitat conversion. In terms of catalysts for hunting and habitat conversion, roads are among the most damaging changes to an area. Without a considerable accompanying increase in enforcement of national wildlife laws, new roads are guaranteed to increase destructive hunting pressures (MAF, 2010). Therefore one of the most effective means of preventing these activities is to limit road development overall Pesticides Pesticides are chemicals designed to kill or control insects, weeds, disease and other unwanted organisms. Over 800 active ingredients are sold worldwide in tens of thousands of formulations. Products are widely used in agriculture, public health, domestic and urban areas. 24 Source: Oudomxay facing shortage of rubber tappers, Vientiane Times, September 12,

151 Many pesticides have been found to be harmful to human and animal health or to the environment (PAN, 2009). Some pesticides have been identified as posing a long-term, global environmental hazard, and are banned or severely restricted by international conventions. International bodies, including the World Health Organization, have classified (some) pesticides according to their acute toxicity, carcinogenicity, or their potential to disrupt hormone systems. Lao PDR has emerged as a supplier of raw agricultural commodities and tree crops as a result of domestic and foreign demand. This has facilitated a dramatic increase in demand for agribusinesses, which have a much greater propensity to use, and have a reliance on pesticides. This use can create a flow on effect with villages adopting similar practices, but with inadequate understanding of appropriate uses of pesticides. Agriculture is an important sector in Lao PDR, accounting for about 28% 2526 of the GDP and employing the greater percentage of the Lao labor force. Crop production is largely dominated by paddy rice, which represents approximately 63 percent of crop production. Growing farmer awareness and increased pesticide availability is likely to see an upward trend in pesticide use. SUPSFM project activities will be widespread across several provinces, with variable environmental conditions. Although pesticide use in SUPSFM is discouraged where alternative natural biological solutions can be practically applied, total avoidance is unlikely. Discouraging the use of pesticides has the benefit of preventing land managers and farmers from becoming dependent on costly and potentially destructive chemicals and fertilisers. Integrated Pest Management Strategies are required where pesticide use is unavoidable. To determine if pesticides are necessary sub-component projects, such as assisted rehabilitation and NTFP development, are filtered through the Negative Check List and Project Screening Process. Where required, an Integrated Pest Management Plan will be prepared and contain information on the following: i. The types of chemicals to be used, including trade names and active ingredients. ii. Place of purchase. iii. Target area and reasons for use. iv. Level of prior training undertaken for chemical handling and use. v. Application procedures timing, quantity and application systems. vi. Storage arrangements. vii. Safety equipment requirements. viii.environmental impact mitigation including alternative biological control options. Activities that may require pesticide use: Forest restoration Agro-forestry site preparations NTFP yield enhancements 25 Down from 30.4% in Ministry of Planning and Investment, Statistics Year Book 2010, Vientiane Lao PDR. 143

152 Types of pesticides and their toxicity Organophosphate pesticides Organophosphates (OPs) are among the most widely used insecticides in the world, and many do not appear on restricted lists. They are among the most acutely toxic of all pesticides to vertebrate animals and humans as well as insect pests. OPs act as cholinesterase inhibitors : they deactivate an enzyme called Cholinesterase which is essential for healthy nerve function. OPs are used in both professional and amateur products and are common in veterinary medicines such as sheep dips as well as agricultural products. They are regularly detected as residues in food items such as fruit and vegetables, and may occur above the safety level known as the Acute Reference Dose, a measure of the highest dose which can be safely consumed in one sitting. Pesticides which cause cancer In 1993, Pesticides News listed 70 possible carcinogens now the list has grown to over 240. Many of the pesticides included are obsolete chemicals but may be found in stockpiles. Other pesticides are still in use, especially those cited by the US EPA. For some pesticides, like DDT, there is agreement about carcinogenic potential, but with many others authorities do not have similar positions. Endocrine disrupting pesticides Some pesticides are suspected of being endocrine (hormone) disruptors. These chemicals affect parts of the human body and wildlife hormone systems and can lead to an increase in birth defects, sexual abnormalities and reproductive failure, and may increase the risk of cancers of reproductive organs. As yet, there are still many aspects of these substances that is not understood. Pesticides toxic to bees Many insecticides, unsurprisingly, are highly toxic to bees, some more so than others. There are also a few herbicides and fungicides which are toxic to bees. Some pesticides have restrictions placed on their use, to try to minimise risk to bees: for example, they must not be used in a field where bees are foraging. In the UK beekeepers must be notified 48 hours before certain pesticides are sprayed. Honey bees are of particular concern when considering the environmental impact of a pesticide because they pollinate 40% of the world's major food crops. In recent years honey bee populations in the US and Europe have been falling dramatically. Pesticides may be a contributing factor, along with parasites, diseases and unfavorable weather conditions. Pesticides at low concentrations which do not directly kill bees may nevertheless have sublethal effects (such as altering foraging behavior) on a colony already under stress from disease. A number of pesticides belonging to the group known as neonicotinoids have now been withdrawn in France, Germany, Italy and Slovenia, because of concerns that they are contributing to bee mortality Incompatible Concession granting The Government of Laos (GoL) has designated 64% of total land cover in Laos under designated forest categories. This means that the only form of secure land tenure for forest or agricultural land for rural communities within this designated area can be via leasehold, irrespective of the 144

153 fact that such designated areas may well be traditional land or ancestral domains of different ethnicities. Approximately 29% of the land area given to concessions and 26% of all concessions, occur in designated forest areas (see Figures 17 and 18) Map 1: Location of Concessions and Leases across Lao PDR 27 Source: Oliver Schonweger, Andreas Heinimann, Michael Epprecht, Juliet Lu and Palikone Thalongsengchanh, op cit 27 The concessions and leases shown on this map include only those with spatial data 145

154 Figure 18: National Forest Management Figure 19: Naitonal Forest Management Categories in the Total Area of Lao PDR 28 as Categories in Areas under Investment 29 Source: Oliver Schonweger, Andreas Heinimann, Michael Epprecht, Juliet Lu and Palikone Thalongsengchanh, op cit Land categorised as unstocked forest, whether in a designated forest area or outside it, accounts for 45% of land areas handed over to concessions, while forest land (designated or not), accounts for 37% of concessions land 30. Therefore a disproportionately massive 82% of concessions are awarded on forest lands. Additionally, land designated as unstocked forest does not mean it is unused. Typically it is used for agricultural purposes, particularly swidden or rotational cultivation, and is therefore vital to the food security and livelihood interests of rural smallholder farmers. It seems that provincial and district authorities consider swidden areas available to foreign investors, partly because de facto local community use may not be recognised, and partly because it is national policy to promote sedentary agriculture and therefore traditional swidden areas are not acceptable, despite this cultivation method being the most sustainable and appropriate for the size of the upland population as well as the local conditions and comparitively poor soil quality of upland land areas. While rotational shifting cultivation is officially tolerated, the reduction of fallow period (from 8 to 15 years to 3 years) undermine the system and leads to decrease of yields and increase of workload especially for women in charge of weeding. Added to this is the consistent lack of transparency over the terms and conditions of concessions awards at all levels. It can therefore be seen that local communities experience considerable difficulties not only in retaining their own community forest for their resource use, but also face massive competition from investors when it comes to accessing forest areas for individual or community leaseholds. Not only does this divest communities of the resources needed to sustain livelihoods, loss of undesignated swidden agricultural or community forest areas to concessions has pushed some households and villages to open up areas in designated forest areas, such as PFAs, in order to continue to meet their cultivation needs. Not only does it make it more difficult for communities to ensure sustainable resource use, it removes the natural resources on which they depend, while also undermining national objectives to re-forest a substantial proportion of the country's land area. 28 "Total area" refers to the entire land area of Lao PDR 29 "Total area" refers to the total area under investment 30 Schonweger et al, op cit, Table

155 Award of concessions for large tracts of on all types of forest land, as well as in-migration of families (particularly in northern provinces) to escape stronger law enforcement elsewhere and to open up new cultivation areas, are both significant threats to tenure security as well as to the prospects of sustainable forestry. Given the growing pace of devolution to province and district, but also remembering that concessions may be given from the national level also, SUPSFM discussions should be held early and often with provincial authorities to develop specific agreements to exclude concessions inconsistent with SUPSFM project objectives or which threaten the tenure status of community, individual or leasehold areas supported by the project either within a PFA or in community areas adjacent to a PFA. It is recommended that other IFIs supporting FIP and REDD+ activities in protection and conservation forests reach the same sort of provincial agreements. Strong provincial support will also be required to control inmigration onto village land which might threaten existing customary land use rights or zoning and land use agreements reached through the PLUP process and reflected in project-supported CAPs Fire Control SUFORD studies (see Ketphanh et al, 2012) have shown that villages have a high dependency on deciduous dipterocarp forests for household income (35% of total value). Deciduous dipterocarp forests are prone to flooding in the rainy season and drought in the dry season. Fires occur regularly. These forest types constitute a fire-prone ecosystem, however current fire frequencies are believed to exceed natural levels. There are good examples of local communities managing deciduous dipterocarp forests in a sustainable manner, by not allowing any cutting of trees and protecting against forest fires. In addition to NTFP and timber, these forests provide other essential functions, including regulating water services, which are compromised by excessive fire, or hot fires. The extent to which anthropogenic fire has altered the extent and ecological function of deciduous dipterocarp forests is vigorously debated with, so far, little resolution. In a natural system, fires would occur in any given area less frequently than they do at present, but each might be rather stronger (reflecting greater accumulations of combustible material). It is not easy to tell what is the 'optimal' fire regime for deciduous dipterocarp forests. Not least because people, fire and deciduous dipterocarp forests have been interacting for so long in South-east Asia that some adaptation has probably taken place already (MAF, 2010). From a wildlife habitat perspective it was observed that fire at current levels in SUFORD PFA deciduous dipterocarp forests is probably at levels sufficient to severely reduce habitat suitability to various specialist birds. Particular care should be taken that logging does not increase the level of fire; it should probably decrease it somewhat (MAF, 2010). As fire-prone habitats become more fragmented, single fires are more likely to contribute to long-term damage. Excessive fire creates case hardened wood of the trees and stumps with birds, mammals, and insects unable to penetrate and shape the wood in their usual manner. Furthermore, reduction in vertical cover and loss of organic duff on the ground reduces the habitat suitability for numerous forest organisms. Intensely burned areas may leave significant amounts of downed woody debris and standing snags. However, the habitat and nutrient benefits of these snags and 147

156 debris may be severely limited if fire has caused the exterior of the wood to be case hardened (MAF, 2010) Illegal Logging Large scale illegal logging Illegal logging, which includes unplanned sanctioned logging, is common in Lao PDR and operates at a variety of scales. Since its introduction SUFORD style forestry has managed to stablise illegal logging and over harvesting in most of the financed PFAs. This success can also be attributed to GOL s meaningful pursuit to discourage grant of incompatible concessions and developments that may precipitate unsustainable forest clearing activities in PFAs. Despite these successes illegal logging holds the greatest threat to sustainable forestry in Laos. An analysis conducted by SUFORD TA using remote sensing technology was conducted in Salavan and Xekong provinces in The study area covered included the Huay Pen and Phoutalava PFAs as well as one protection forest area and national protected area (NPA). The study identified 44 logging sites with a total affected area of 9,565 ha (subject to field verification). Of these, the majority, 8,205 ha were found in Production and Protection Forest Areas, with only limited logging occurring in Conservation Areas. No logging is permitted in Protection and Conservation Forest Areas and in Production Forest Areas logging can be done only in accordance with approved forest management plans. The only sanctioned logging site that is known to be in compliance with regulations is inside the Phoutalava PFA covering 56 ha. However, it appears that it was not detected in the remote sensing analysis because the logging done in SUFORD sites follows the guidelines for reduced impact logging and the harvesting volumes are very low. While ground truthind data collection has not been completed to verify the results of this analysis, it is clear that illegal or unplanned logging is a major problem which undermines the sustainability of forest management in Lao PDR (MAF, 2012). Policy, laws, regulations other legal instruments are relatively strong in Lao PDR, but difficult to enforce given the scale of the resources that require management. The GOL s capacity to manage natural forest sustainably, and to monitor and control illegal logging in PFAs is limited due to weak institutional arrangements. (These weak institutional arrangements are not treated in this report.) Unauthorized or illegal forest operations are typically either forest clearing -conversion of forest into other forms of land use - or logging. Logging occurs in two major forms, either as (a) highly intensive logging concentrated on a comparatively small area, often accompanied by construction of new roads, or (b) as highly selective logging, which collects trees - often of a certain species and quality - scattered across a comparatively large area. The first form is relatively easy to identify, compared to the second. Highly intensive logging and forest clearing can be easily and cost-effectively monitored using satellite image based remote sensing to assess the loss in forest cover over a given period of time. Remote sensing can further be used as a navigation aid in combination with ground surveillance. This combination forest cover monitoring and ground verification - will increase enforcement capability. SUFORD applied this procedure for the first time in 2010 with good success. The intention of the assessment was not to act as a means to prevent illegal logging as it happens but to evaluate the extent of logging that had occurred and then allow DOFI to review the fingins to determine if proper procedures under law have been followed. This approach is having a positive influence on the governments (provincial and central) enforcement and compliance cultures within agencies by improving overall transparency. It is recommended that periodic forest cover monitoring with field truthing be continued in SUPSFM. 148

157 It is not the role of SUPSFM to police logging infringements. Traditionally, information on illegal activities has been passed to SUFORD and DOF staff through community and government contacts. The two organizations, along with DOFI, then coordinated efforts in an attempt to assess the situation and identify those involved. SUFORD, once it advises government and passes on what information it has accrued, then allows government counterparts to assume responsibility enforcement. In November 2012 the central level government ministries of MAF, MONRE and MIP formulated an intergovernmental committee to assess the issuance of overlapping concession for rubber and eucalyptus plantations in an attempt to curb illegal logging. It is expected this process and assessment will be extended to provincial levels. SUPSFM participation, either informal or formal, should be encouraged. As a component of these discussions, SUPSFM should disclose which PFAs are likely to be the subject of forth coming forestry cover monitoring assessments. This type of disclosure may well assist integration of forest management activities, limit overlapping concession granting, forewarn and thereby protect the PFAs timber from illegal logging, and strengthen overall enforcement capacity. Concession clearing Code of Practice With regard to concessions and the risk of potential illegal logging it is recommended that the protocols be adopted for each concession in or near project targeted PFAs and khumbans. Following consultation activities with the GOL, a Project-specific Code of Practice should be prepared, and approved by the Ministry of Agriculture and Forestry for salvage logging and biomass removal operations. The Code of Practice would: Clarify roles and responsibilities of stakeholders in the salvage logging and biomass removal process, including: Logging Contractors, PAFO salvage logging/biomass removal committee, Concession owner Clearly identify areas to be logged/cleared and any areas where logging / clearing will be restricted; Environmental and social safeguards, including the requirement for consultation between contractors and local communities. Small scale level illegal logging and over harvesting Under SUFORD there were no rules regarding the regulation of firewood collection from PFAs, and no comprehensive studies to indicate the volume of wood that is being extracted for this purpose. It is believed however that firewood, and other small-scale use timber resources, are being extracted unsustainably. The SUPSFM project will support a number of activities that can help protect the PFA and nearby forests from village level illegal logging and over-harvesting. Participatory forest land use zoning (FLUZ), as a prerequisite to forest management planning in PFAs, along with PLUP serves to separate areas for forest management from areas for agriculture, and other uses such as biodiversity conservation. Village participation in this process is a key link to reducing the incidence of unsustainable logging, as well as deterrent to external entities from acquiring forest areas without following appropriate regulations. Since zoning decisions are made by the villagers guided and supported by technical experts - those decisions are generally respected by them. It is envisaged that through greater ownership of forest management plans, villages will have a vested interest in adopting 149

158 sustainable practices e.g. restoration and setting quota limits. Villages will also be linked with DOFI for timely reporting of cases of illegal logging. To enhance broader adoption of sustainable local forestry, PFA demarcation and forest usage signs that promote permissible activities would be continued under SUPSFM. Demarcation of PFAs has proven to be an effective tool against inappropriate concession granting. The demarcation sign provides tangible physical evidence of the existence of a PFA, and it assists local managers and villagers in negotiating with external developer interests. This practice would be continued, and can also include signage of ongoing and planned activities in areas outside PFAs in the greater khumban. Report: Vientiane Times 21 st December The forest rangers of Oudomsay province seized illegal timber weighing approximately 100,000 tonnes worth 1.23 billion LAK last year. "In , the provincial authorities of Forestry Supervision Division of Oudomsay province in cooperation with all district levels of Agriculture and Forestry Divisions monitored illegal exploitation of forest resources and seized illegal timber," said Head of the Provincial Forestry Supervision Division, Mr. Somssak Chanthavong. The suspects who wee involved in timber and non-timber forest production trafficking have been fined, he continued, adding that our duty is forest protection and promotion of sustainable use of forest resources in seven districts Shifting cultivation and access restriction Shifting cultivation involves cutting down vegetation, burning it in situ and then planting crops on the cleared land. Once crops are harvested, the land is left fallow for natural vegetation to re-grow. This agricultural system has traditionally been widely practiced in many parts of Lao, but most prominently in the north. In the mountainous northern regions of Laos the overall population density is relatively low (24 people per km 2 ), however the availability of arable land is also very limited. Shifting cultivation (rotational) practices have been developed to account for these conditions, however conversion of land for concessions and other forms of development (mining, hydropower etc) is making even less land available for farming and food production. This is having a two-fold affect. The first is that it is forcing villages to reduce the fallow periods. A study by Management of Soil Erosion Consortium (in Pierret et al, 2011), identified fallow periods dropping from eight to nine years in the 1970s, to two to three years more recently. A shorter fallow period produces lower yield rates than longer fallow. The second response is that to make up for the short fall in food availability, shifting cultivation is now expanding more rapidly into new forest areas, vis. pioneer shifting cultivation. In addition, lands that had been rehabilitated in an effort to produce harvestable timber have also been converted to shifting cultivation. The dilemma that will be faced by SUPSFM is that should it pursue stronger enforcement to protect forest resources, it may have the very negative consequence of reducing peoples food resources. Under the government land reform program that sees consolidation of villages into larger centers, there has been an impact on local forest resources. In the larger centers food 150

159 requirements have increased as a response to population expansion, which places pressure on local forests. To overcome this issue, opening up rural economies to more investments that produce employment opportunities for local villages and shifts people away from farming and forest product dependency is required. Concession granting is often seen as a tool to achieve this, so a cycle of restriction and conversion may continue. 9 PROJECT MITIGATION MEASURES 9.1 Checklist, Eligibility criteria and Project Screening There are some limitations to involving all villages in both the forest landscape and PFA approaches. These limitations mainly relate to local level effects of national strategies and potential consequences for effectiveness of project engagement and investments. It also is part of the process of arriving at Broad Community Support (BCS) to ensure that communities are able to make informed decisions as to whether they wish to be included in project's activities or not. It will be necessary, therefore, to have an initial screening of villages against criteria to be developed by the project, as well as to determine levels of interest by communities themselves, to finalise who will move to the next step of project engagement, and who will be excluded. The safeguards approach adopted in projects in Lao PDR supported by the WB is to exclude villages from project consideration if they have been relocated or administratively consolidated in the four years prior to date of screening in an area, and to arrive at provincial and district agreements that no village involved in SUPSFM activities will be relocated or administratively consolidated for a minimum of four years after the project concludes its activities in that village. Project administration may have other considerations to include in project screening, assisting them to prepare appropriate plans and to allocate budgets in a timely manner. It is recommended that a checklist is drawn up at project inception, which should include the four years before and after exclusion criteria. 9.2 Enhanced community engagement and FPIC The PSFM objective of SUFORD remains the focus of the SUPSFM project and is intended to be scaled up. While SUFORD benefits included agroforestry opportunities and village-level benefits sharing, some unintended adverse effects also occurred, especially in villages of ethnic minority groups. Current forest use was well identified under the project, but changes in future forest use was determined without sufficient consultation or integrating existing land uses. In addition there was a need to improve consultation with women and strengthen tenure security Focus on land within PFAs only did not take account of external pressures on villagers' land outside PFAs, resulting in loss of village cultivation areas and pushing farmers to clear land inside PFAs for cultivation. Lessons learned for PSFM upscaling and expansion therefore needed to address these weaknesses, particularly with ethnic minority groups and where their land uses may be different from Lao-Tai ethnic groups. Migration of individuals and families from other provinces rigorous in preventing slash-and-burn, also needs to be monitored. This is said to be more 151

160 common in northern than in southern provinces, and needs to be a consideration in the three new provinces. It would not be useful to make land and forest use agreements with traditional communities, only to find that migrants can ignore these and open up new areas for cultivation. In particular, the following improvements are needed: (i) better consultation processes through adoption of the enhanced participatory land use planning (PLUP) methodology developed in 2009, which has been pilot tested in several provinces (ii) integration of gender sensitive consultation and data management (iii) preparation of activities which give equal weightage to men and women's land and natural resource use (iii) community consensus of village area boundaries, activities, land use and land tenure, for PFA land areas targeted for SUPSFM activities (iv) improved enforcement capacity to local communities, supported by provincial and district authorities, to prevent villagers and migrants opening new slash-and-burn areas (v) inclusion of community land adjacent PFAs, and making it eligible for agro-forestry support. Enhanced community engagement requires project implementors, to improve their willingness to listen to communities and to provide livelihood and tenure opportunities of interest to them. Making unilateral decisions about villages' land and use rights will not result in positive benefits for villagers and not constitute BCS. Hence the consultation process should also include villagers' right to opt in or opt out of involvement with the project, clarified during the initial scoping step. To support community engagement, field teams will need to undertake consultation stages which will result in BCS, as reflected in a Community Resource Profile, an output of baseline work, and final agreements on a number of issues (including area boundaries, investments and activities), which will be included in Community Action Plan (CAP). BCS will not be a one-step only process, but a cumulative process with different types of agreements at different project implementation phases. Furthermore, BCS also means that villages have the choice to opt out of project involvement, as well as to opt in. If the choice is to opt out, this means that the project does not have the power to subsequently change village land areas, or to restrict access to them, unilaterally. 9.3 Raising legal awareness at community level As mentioned above, legal empowerment is a keystone of development and a process through which the poor are protected and enabled to use the law to advance their rights and interests. SUPSFM will support legal awareness through VMU (legal awarenesss is one of the mandates of the VMU). In areas where they already exist, communtiies will be informed and directed toward paralegals for legal awareness as grassroots paralegal are effective agents for creating legal awareness amongst ethnic minority communities. Other arguments for expanding the role of paralegals in the provision of legal services is threefold accessibility, quality of communication, and financial and non-financial costs (Byrne & all, 2007). Developing ICE material in ethnic language (posters, pamphlets, calendars, T-Shirts, etc.) and Public Address System Broadcasts/community radio (example Khoun radio in Xieng Khouang supported by UNDP; or radio program in Brao language supported by GAPE in Champassak) could also be considered as effective ways to disseminate legal awareness in ethnic minority communities. 152

161 9.4 PLUP Participatory Land Use Planning Participatory and use planning will be used to identify land use areas and agreements with communities and this is central to PSFM strategy and a mandatory pre-step towards issuance of tenure documents. There are numerous PLUP methodologies used in Laos at the time of project preparation. DoF will follow the updated and participatory LUP (PLUP) Manual issued by MAF and NLMA under a joint MoU in Key methodological improvements of the 2009 PLUP Manual already cover most of the requirements from SUFORD lessons learned, and include: (i) more participatory methods; (ii) time takes is days per village (though the GoL preparation team is proposing this be reduced to 7 days); (iii) current land tenure analysis is undertaken, distinguishing between state, community and private land; (iv) gender disaggregated processes and documentation are required. Many agencies are recommending three-dimensional PLUP (3D-PLUP), originally developed in the Philippines and piloted in Laos by CIFOR. While 3D-PLUP has many advantages, particularly when working with less literate communities, it also takes longer and requires new training of field staff. So far, DoF plans to continue to work with its own Manual, but plans to harmonise PLUP methodologies in Laos are under way, and project PLUP methods should reflect this when it occurs. The DoF will use 0.5 meter resolution aerial photographs rather than 3D terrain model. Remaining challenges include the fact that district authorities are more accustomed to instruct communities than to listen to community views, and as transmitters of state policy, are prone to short-cut a fully participatory methodology. In some provinces and districts, limited human resources and capacity, lack of supporting project, inadequate budgets,, often result in central government policies not being effectively implemented at district and village-level application. Facilitation skills are often weak among DAFO. According to MoNRE, MAF continues to be responsible for PLUP in PFAs and village forestry and agricultural land, while MoNRE is now responsible for PLUP in conservation and protection forest, and for issuing and registering land tenure documents for individuals and communities. PLUP is a vital step in the community engagement process, resulting in community consensus over land use zones, reflected in signed boundary agreements within and between villages. This provides the basis for subsequent land management plans to be developed, which will be through the outputs in a Community Action Plan (CAP). Both the process and outputs will be deemed evidence of a satisfactory village free, prior and informed consultation leading to broad community support. 9.5 Physical Cultural Resources SUPSFM project covers a wide footprint across three provinces in northern Laos. In this area is a rich diversity of cultures and ethnicities and there is potential for SUPSFM activities to impact on PCR. This policy addresses PCR, which are defined as movable or immovable objects, sites, structures, groups of structures, and natural features and landscapes that have archeological, 153

162 paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Their cultural interest may be at the local, provincial, or national level, or within the international community. Detailed evaluations of village PCR was not conducted as part of the SUPSFM preparation. Its is anticipated that the FLUZ and PLUP planning process which preceeds ground activities, will identify known and potential PCR sites. In the view of the Safeguards Manager and village committee a project activity is likely to a) involve significant excavations, demolition, movement of earth, flooding, or other environmental changes; or b) is located in, or in the vicinity of a physical cultural resources site then the World Bank PCR policies are triggered. As work (forestry related or other) intensifies the opportunities to uncover artifacts (chance finds) increases. Furthermore any in-migration related to the project is likely to have indirect impacts on physical cultural resources in the area, such as an increased risk of theft, vandalism and illegal trade. During implementation, but prior to on-ground activities, the Safeguard Manager should meet with competent government authorities such as the Ministry of Culture and Information, as well as village committee (PLUP), and provincial authorities to verify whether physical cultural resources would be affected by a project in any given location. 9.6 Expanding livelihoods Potential options for expanding forest-based livelihoods consist of three principal models. All models assume rainfed (non-irrigated) conditions. The three models serve to enhance forest resources and the environment through smallholder tree farms (referred to by IFC as smallholder woodlots), agroforestry systems, and accelerated natural regeneration Adaptable models of forest-based livelihoods Model 1 This model builds on current tree-farming practices of smallholder teak tree farmers in Luang Prabang Province, wherein smallholder tree farms (usually one hectare or less of teak) are established separately from areas used for upland or lowland rice and/or commercial crops. Economically valuable tropical hardwood trees (both indigenous and exotic) will be promoted in addition to teak (Tectona grandis) including rosewood (Pterocapus macrocapus), Taengwood Balau (Shorea obtuse), red colored wood (Jamba in India) (Xylia Kerrii Craib & Hutch), mahogany (Swietenia mahagoni), and kheng (Lao)(Hopea odorata), as well as other suitable tropical hardwood species. In this model, farmer organizations will be established to undertake assisted natural regeneration (ANR) in both designated (PFAs) and undesignated forest areas (village use forests). In the context of the recent precedent set in Nakai District, Khammouane Province, effective community management of village use forest could lead to community land titles. In addition, since smallholder tree farms can create ecological conditions similar to natural forests, farmers will be encouraged to cultivate relatively common NTFPs (those normally consumed by rural households) to supplement sources of household food, improve nutrition, and sell any surplus to traders. 154

163 Model 2 This is an agroforestry model consisting of smallholder tree farms with modified spacing (2 9 meters is proposed, rather than the more common 2 meters). Project extension / outreach technicians will promote cultivation of upland rice and/or other shade-tolerant commercial upland crops, and NTFPs, including selected essential oil crops between the rows of trees. The upland smallholder tree farms will consist of a monoculture of teak (similar to the smallholder farms near Luang Prabang); or, a mix of economically valuable tropical hardwoods including teak and other indigenous or exotic species; or, fruit trees (i.e., citrus: namely oranges and lime; the most common in Nam Bak District, Luang Prabang Province and Viengthong District, Houa Phanh Province, respectively); or, economically valuable fast-growing indigenous tree species, namely those used to harvest resins including benzoin (from Styrax tonkinense), for benzoin, and agarwood (or eaglewood) (khedsana, Lao) (Aquilaria crassna) for oil used to produce medicine or incense; to harvest bark, the most common species being Peuak meuak (Lao) (Boehmeria malabarica Webb), and Nyang bong (Lao) (Persea kurzii or P. gamblei Kostern.); and, to harvest shoots as well as wood products, namely bamboo (Dendrocalamus spp. and Bambusa spp.) and rattan (Calamus spp.). Project extension / outreach technicians will promote the inter-cropping of trees planted in modified spacing with crops that tolerate partial shade, some of which already are familiar to upland producers, including: selected varieties of upland rice, pineapple, Job s tears, peanuts, sesame (Sesamum indicum) (that also is drought resistant), and soybeans. In addition, villagers could use the relatively large space between the rows of trees to produce improved forage for eventual livestock grazing (when trees reach a reasonable size and cannot be damaged by large livestock). Farmer organizations will be established to undertake ANR in undesignated forest areas, leading to a community land title. Forestland in the undesignated forest areas could also be leased out to individuals or communities to cultivate NTFPs for enhancing food security, nutrition, and sale in existing markets. More permanent commercially-oriented perennial tree crops also could be promoted that include arabica coffee and tea (Camellia sinensis), that both grow in semi-shade and for which products from Lao PDR have growing regional and international niche markets (i.e., organic and fair trade arabica coffee to Japan and Europe). More complex agroforestry could be designed to ecologically resemble old growth forests and include new crops with existing regional and international markets, including: essential oil crops, nutraceuticals, and medicinal herbs. Model 3: Through this model Project extension / outreach technicians will promote enrichment planting and ANR in State forests in Production Forest Areas (PFAs) and community managed undesignated forest areas (village use forests). Within PFAs a benefit sharing program will be implemented in consultation with communities as payment for environmental services; building on the lessons learned from the SUFORD Project. Communities in PFAs are expected to share responsibility with the government for protection and rehabilitation of the PFA, while benefiting from NTFPs and payments for labor provided to undertake log harvesting, ANR and providing protection against illegal logging. This model is proposed for communities located inside or adjacent to PFAs. They will have the opportunity to derive food security and income from agriculture, agroforestry, and benefit sharing from the harvesting of state managed forests. Thus, in addition to benefit sharing from log harvesting in the PFAs, rural households can benefit from agricultural modernization, mechanization, adoption of post-harvest technologies, value-added processing, and improved nutrition. 155

164 Agriculture: Consistent with the GOL s Agricultural Development Strategy to 2020, modern agricultural techniques will be promoted through this model, including using improved seed varieties for rice, fodder maize, legumes, and other commercial field crops; and, improved livestock and fish breeds. Farmer organizations will be established to introduce local production of improved seed varieties for sale to nearby communities, improved livestock breeds, and mechanization (for soil preparation, crop harvesting, and post-harvest handling; based on the approach used by the ADB supported Smallholder Development Project at the Department of Agricultural Extension and Cooperatives-DAEC). Community groups also could be organized for family-based post-harvest handling and value-added processing of selected crops (e.g., cassava, peanuts, coffee). Nutritionbased livelihood self-help groups will be organized to introduce new and more nutritious fruits, vegetables, and pulse crops to home gardens and to prepare nutritious meals for school-aged children. Agroforestry: Farmer organizations will be established to (i) promote smallholder tree farms of teak and other tropical hardwoods; (ii) undertake ANR at undesignated forest areas using fast-growing indigenous species, including bamboo and rattan; (iii) cultivate NTFPs for food security, nutritional improvement, and commercial sale on both the smallholder tree farms and undesignated forest areas; (iv) use modified spacing of smallholder tree farms to create grazing areas for large livestock; (v) introduce the cultivation of high-value essential oils with existing markets in both smallholder tree farms and undesignated forest areas; and, (vi) introduce nutraceutical crops and medicinal herbs as NTFPs for domestic and regional markets Principles of forest-based livelihood options Although the three proposed forest-based livelihood models are not rigid, they should adhere to certain principles, namely: Smallholder food security, inclusive of improved nutrition, is the highest priority of each of the three forest-based livelihood models. When suitable and with some adaptation, crop production and livestock (and fish) raising activities can be exchanged; or, both can be introduced in a classical agro-silvo-pastoral model. Tree species to be promoted should be limited to teak, other economically valuable fast-growing indigenous species, and endangered, endangered, and vulnerable 31 exotic hardwood species that are already part of the agro-ecosystems of Lao PDR. Each model should be promoted through farmer organizations. Formation of village level groups should be a sequential process that will promote sustainability over the long-term. The sequence is a modification of the process adopted by the Poverty Reduction Fund (PRF) and the multidonor supported Northern Uplands Development Program (NUDP); it includes promoting in sequence: learning groups, self-help groups, farmer production and marketing groups, farmer associations, and agricultural cooperatives. The long-term objective of establishing farmer organizations is to provide opportunities for the economic empowerment of communities. The principles of ecological landscape management should be followed in the planning and implementation of the proposed models, namely: (i) stakeholder participation; (ii) adaptive management responsive to social, economic, and environmental changes; and, (iii) a clear and consistent evaluation and learning framework. 31 Based on the current IUCN Redbook species classification. 156

165 9.7 Integrating Environmental Mitigation within a PES Approach Ecosystem services (also referred to as environmental services ), in the Production Forest Area (PFA) context, are the broader benefits obtained from forest ecosystems in addition to revenue from timber sales. These include i) provisioning services, such as food and water; ii) regulating services, such as flood control; iii) cultural services, such as spiritual, recreational, and cultural benefits; and iv) supporting services, such as nutrient cycling. Payments for Ecosystem Services (PES) involves the users of these services and the providers entering into a voluntary agreement to maintain or enhance an ecosystems ability, through engaging in a certain land-use or management regime that is (more) ecologically benign, to provide a well defined service for a specified period, for an agreed price, paid conditionally upon provision of the service in question. The various markets the services can be sold through include: Market segment for watershed services; Market segment for Biodiversity; Market segment for Landscape Beauty, and the Market segment for combined ecosystem services 32. In short, PES is a scheme to reward land users who adopt practices that generate, maintain or enhance ecosystem services, hence promoting sustainable land use 33. For a PES scheme to be feasible there must exist a Willingness-to-pay (WTP) for a particular service. This presents some challenges in PFA s as beyond a project level approach there may not exist any service users at all or any with the capital or need for the continued or enhanced provision of a particular service. For example, in a feasibility study conducted in Luang Prabang Province, villagers were prepared, or had a WTP of USD$0.3/month/household to improve the quality, quantity and timing of flows in the stream they relied on. This was deemed inadequate to cover activities which would counter the erosion and waste which was reducing water quality and thus it was unfeasible. Additionally, the villagers were prepared to pay for a waste collection system but not invest in upstream land-use change 34. This demonstrates the financial incapacity of rural communities in Lao PDR and the lack of understanding regarding the nexus between land use type, land use type location, and the cause and effect nature of ecosystem alteration due to the interconnectedness of all aspects of a catchment. To raise their WTP, village-level capacity building is needed to raise awareness and understanding of their role in waste production and watershed management, the health and environmental impacts of their actions and how different management practices can lead to improved environmental outcomes which positively impact their lives 35. Also, alternative livelihood strategies offered in the SUPSFM may help increase communities ability to pay. The above example also highlights the importance of the presence of users who have the capacity to pay for the maintenance of a particular service they rely on. George et. al,. suggest that in Lao PDR WTP (could also be interpreted as ability-to-pay ) by local stakeholders is very low meaning that any PES scheme would have to be externally funded 36. Additionally, where 32 Solgaard, A., et al Vital Graphics on Payment for Ecosystem Services: Realising Nature s Value. GRIDArendal. Web source: 33 Mousquès, C. Relevance of Payments for Environmental Services (PES) for Watershed Management in Northern Laos. Web source: 34 Sengsoulichanh, P. et al, Payment for Environmental Services (PES): Case study in Luang Prabang province, Lao PDR. IRD, IWMI, MSEC, NAFRI. Web source: Ironically their WTP would only be enough for land use change but was insufficient to pay for waste infrastructure/collection. 35 Mousquès, C. Relevance of Payments for Environmental Services (PES) for Watershed Management in Northern Laos. Web source: 36 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed 157

166 the water resource is owned by many poor smallholders, or where there are many non-point sources of degradation/contamination, difficulties arise in setting up the market and monitoring individuals behavior which subsequently results in high transaction costs and reduced cost-effectiveness. Accordingly, (based on an evaluation of Vietnam s potential for PES) PES is unsuitable in watersheds where potential buyers are predominantly poor or lack basic knowledge of the linkages between land-use and watershed services. Despite this situation predominating in the social and geographical landscape of the PFA s the presence of hydro power developments in Lao PDR provides some impetus for the feasibility and functioning of a PES scheme. Payments in PFAs may arise from the maintenance of hydrological values and watershed protection services.. In addition, PES for watershed services functions more efficiently where there is a clear distinction between upstream providers and downstream users. Where providers and users are one and the same (i.e. much of rural Laos) the WTP is generally low, especially where ecosystem services are generally perceived as free, where some members of communities are unwilling to pay other members of the community for fixing a problem they have caused and local social antagonisms 37. PES incorporates a catchment and landscape approach to land management and such mechanisms generally focus on activities and services that produce off-site benefits to ensure that the actions of a few do not have negative repercussions on others downstream in a catchment. In this way the interconnectedness of landscapes, resources and resource users are acknowledged and steps taken to incentivise and reward landowners for sustainably managing resources on their land. On a landscape level a PES scheme has the capacity to bring about much more productive, resilient and sustainable ecosystems capable of providing the services required for life, livelihood, production and industry at all junctures in the catchment-landscape continuum. The PLUP process will be an integral part of the implementation of a PES scheme, providing key information on the land type, land cover, condition, current resource use, future management scenarios, and environmental risks in PFAs that will be classified further into one of these four core services: provisioning services, regulating services, cultural services and supporting services. Economic-ecological zoning will be used to identify areas where an ecosystem service value is present and would be disrupted by any intended developments or current and future livelihood activities. The results from the PLUP process are an important pre-cursor for the introduction of PES mechanisms and the economic evaluation of the full range of ecosystem services within chosen PFAs. The five-step process presented here is an amended version of one used to assess PES for catchment services in a hydropower development in Cambodia, although the approach outlined has been adapted and contextualised to be country and project specific. It is an approach which seeks to maximize co-benefits and create synergies between market-based conservation mechanisms (PES, REDD+) and livelihood, agroforestry and sustainable forest management components of SUPSFM. services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1: A common problem in Lao PDR where GOL relocation policies have grouped different ethnic minorities together in small communities. George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1:

167 Step 1: Define the ecosystem service and identify benefits of the service For watershed services this involves the stipulation of a minimum water flow with precisely defined bacteriological and chemical quality, achieved through the maintenance of forest cover to preserve water quality for local villages and downstream users. Within Production Forests Areas (PFA s) the predominant activities for which payments could be made would be for adhering to sustainable forest management 38 practices and for sustainable agricultural production, rather than payments for biodiversity or conservation, which are common elsewhere 39. This is appropriate as agriculture and deforestation are the two major causal factors of land degradation 40. While PFA s do contain high biodiversity and High Conservation Value area s that need protecting (and could be done so using an economic incentive scheme such as PES), the scope for these market segments is relatively small and could be more efficiently captured under and within Protection and Conservation Forest category areas. However, this does not preclude them as improvements in forest and agricultural land management will have positive impacts on biodiversity which could also be marketed. However this market segment is relatively weak in Lao PDR, especially in thinly stocked PFA s. The main livelihood activities which communities within PFA s are engaged in which pose threats to environmental services that are of sufficient economic value as to render a PES scheme feasible are logging and agriculture. Due to the prevalence of hydropower developments in Lao PDR and in the PFA s in question, and the relative lack of demand for other market segments such Landscape Beauty in these areas, the market segment for watershed services would be the most likely market to target. However, the protection of one ecosystem service usually has beneficial impacts on the ecological functioning of other market segments so the potential for bundled or stacked payments for ecosystem services, such as biodiversity, would remain open. With the existence of several market-based forest conservation mechanisms operating together there is great potential for synergism between them. This is particularly important since high opportunity costs and less favorable returns and, high transaction costs, from conservation incentive schemes remains a reality. Therefore, the opportunity to maximise returns by stacking and bundling 41 between and within these schemes presents a viable option and a means to increase the feasibility of market-based forest conservation mechanisms to compete with less ecologically benign alternative land uses. 38 Reduced Impact Logging (RIL) harvesting operations, selective cutting and waste minimization, thorough inventories, surveying and monitoring, preservation of High Conservation Value Forest and incorporation into the management regime of ecosystem and forest restoration 39 This does not necessarily preclude them altogether though, they are more likely to be secondary or bundled markets rather than the main the services to be marketed. 40 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1: Bundled refers to one payment for multiple services as a result of actions taken to target one particular market segment; Stacked refers to multiple payments for the provision of different services sold under separate market segments but from the one property/location/project. 159

168 SUFORD AF has already made headway in this approach 42 and lessons from this wil be applied to SUPSFM implementation. Diversification within the realm of PSFM (Participatory Sustainable Forest Management) income streams, wages for forest management, benefit-sharing from timber sales, REDD+ and Biodiversity Offsets within a PES framework as well as the increased abundance of NTFP s that would result from more sustainable forest management practices- should in theory provide adequate incentives for communities to participate. Furthermore, due to the growing body of evidence suggesting that biodiversity is a key determinant of a forests ability to provide ecosystem services, particularly carbon sequestration and the fact that REDD+ activities will inherently lead to improved biodiversity, there is huge potential for co-benefit between REDD+ and the subsequent marketing of biodiversity offsets through PES 43. At this stage, given prevalent and ongoing issues with land insecurity and therefore carbon tenure, the potential for payments for activities that enhance the capacity of ecosystems to sequester and store carbon is an avenue which will take some time to develop. Issues such as incentivising communities to make long-term commitments to sustainable management and use of forests and participating in A/R (afforestation/reforestation - including agroforestry) activities in areas they have no tangible rights over, and guaranteeing the equitable distribution of benefits to those who change their behavioral patterns in areas where ambiguity surrounds carbon tenure present serious barriers for carbon based PES schemes. George et al. site inflexible land use and land allocation policies as one of the biggest obstacles to a successful PES scheme in Lao PDR 44 and report that acceptance of PES principles and constraints are directly related to stakeholders perception of their land rights 45. This is not surprising given that clear property rights are usually considered as a central component of PES markets 46. In their study, George et al. found that of the two potential private enterprises which relied on water and had the ability to pay, already had control over the entire headwater areas they exploit, one being a 3000 ha concession. This essentially rules out any possibility of a pro-poor PES scheme. A more concerted effort on the part of the government in regards to relinquishing absolute control of forest areas to community 42 Majella, C. Financing the Implementation of a REDD+ Project: Weighing Costs with Forest Carbon Market Risks and the Opportunity of Other Finance Options. SUFORD Project. Web source: 43 Kaye, M Global forest expert panel presents key findings on link between biodiversity and carbon. Forests News- CIFOR George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1: George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1: The current land allocation system makes it difficult, if not impossible, for farmers to alter land-use. Whereas it is a basic principle of PES that there is enough flexibility to alter land use so as to ensure delivery of ES, district land was strictly allocated on a village basis under the National Growth and Poverty Eradication Strategy. 46 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1:

169 groups (i.e. a materialisation of the approach of decentralisation of forest governance) is needed to address these issues. Community titling, which has already begun in some areas, is seen as a positive move in the right direction. Further progress along these lines would help avoid a tragedy of the commons type scenario where a resource is depleted beyond its natural regenerative capacity despite this not being in all stakeholders longterm interest, a scenario which has unfolded in many other forest areas in Lao PDR 47. Since most populations within PFA s are largely agrarian (supported by timber harvesting and collection of NTFP s), and since the dominant forms of agricultural production are unsustainable due to the transition away from more ecologically benign traditional slash-and-burn rotational agriculture to more conventional forms of continuous cash cropping with synthetic fertilisers and chemicals 48, a focus on reducing the disruption to agricultural lands ability to provide ecosystem services is advised (PES for sustainable agriculture) 49. This area of PES is largely undeveloped and piloting this approach would be pioneering into little explored realms in the PES field. But, given that PES is a mechanism to recognise and reward land use innovations which positively impact on environmental goods and services, the growing body of research highlighting the carbon storage capacity of agricultural land, the agrarian nature of rural livelihoods in PFA s and the high levels of erosion inherent in annual cash cropping systems, it seems an obvious direction to proceed in. That it also provides the opportunity to smoothly transition into more sustainable and resilient forms of agriculture also removes many of the barriers which have traditionally impeded this. PES for sustainable agriculture also provides some powerful synergies with other aspects of the SUPSFM, primarily in relation to expanding livelihoods and agroforestry development 50, that strengthen the overall implementation of the program. The MSEC (Management of Soil Erosion Consortium) program in Houay Xon catchment, Luang Prabang Province, acknowledged that alternative farming practices and careful management of sensitive areas (e.g. riparian zones) opens new avenues for the improvement of downstream water quality by reducing sediment delivery 51. Since improved farming and agro forestry practices will be introduced under the SUPSFM it makes sense to make them compatible and complementary to improved watershed management. Stemming negative flow-on effects to users of environmental services further down the catchment can only be achieved by capturing the main drivers of ecosystem degradation. Ignoring the role of agriculture in watershed protection, carbon storage and biodiversity 47 Hardin, G The Tragedy of the Commons. Science 162: There are various drivers behind these trends including but not limited to: population growth, shortage of arable land, integration with the market economy (cash stimulus, access to synthetic inputs), growth of concessions and GOL policy reducing the amount of land available and land degradation. The expansion of maize farming in northern Lao PDR is so destructive in terms of erosion, Lienhard et al. (in George et al.), have labeled this land use as an example of resource mining agriculture. 49 This can also be read as reducing all negative impacts of agriculture on the ecosystem services to be marketed. This is not to focus on this market solely but to market it in tandem or in a bundle with watershed services. 50 Agroforestry can be seen as not only a means of production but is also used as a management tool and valuable input for sustainable land management. It can fulfill a swathe of functions: erosion prevention, control and remediation, act as wind breaks, perform regulatory functions (nutrient cycling, water management), conserve and enhance biodiversity with the provision of complimentary habitats and carbon sequestration and storage (in soil as well as in terrestrial ecosystems). 51 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1:

170 enhancement (to name a few) whilst simultaneously increasing and diversifying production would result in the SUPSFM running at half its capacity and effectiveness and would be a wasted opportunity due to its failure to recognise the inextricably linked nature of social geography, forestry and agriculture. Incorporating agriculture in PES provides a more integrative and wholesome approach on the landscape, sector, and ecosystem levels. A carefully designed integrative approach- SUPSFM/REDD+/PES- can align the latent synergies and facilitate co-implementation. Another example of the applicability of this approach is the alignment of village development grants with projects which complement and enhance the feasibility of PES projects. The PES feasibility study in Luang Prabang found that grey water and contamination from human wastes were also big contributors to lowered water quality. A WTP of USD$0.3/month/household was deemed enough to cover agricultural change but not enough to build the required infrastructure (composting latrines). By aligning a Village Development Grant with the need for infrastructure to deal with human waste and grey water a previously unfeasible PES framework could become viable 52. It should be acknowledged from the outset that PES is not a panacea and should only form a part of a package of instruments, especially those which reduce the opportunity costs of SFM and conservation 53. While PES has an important role to play in poverty reduction and conservation it cannot perform these functions in isolation, especially in a country with a generally low WTP. PES mechanisms confront the market failure dilemma inherent in tropical forestry, where there is generally an acute weakness or absence of markets for forest ecosystem services. But the failures in the policy and governance arenas also need to be targeted to achieve tangible advances in the realm of SFM. In this way PES and REDD+ can also act as a market incentive for improved forest policy and governance in a well rounded harmonisation of approaches to forest ecosystem conservation, emissions reductions and carbon sequestration and storage. On top of this lies the need to design and establish integrative frameworks for coordination and harmonisation of government and local community actions and this remains one of the greatest challenges for watershed management 54. The necessity of this approach becomes all the more apparent when considering that agricultural production needs to be targeted in any future REDD+ framework. A REDD+ framework will have to capture the threat to food and income security posed by REDD+ activities. Additionally, because agriculture is one of the biggest drivers of forest loss and degradation 55, the transition to intensified yet stable, resilient and productive agriculture on current arable land should be treated as a priority as this transition could be an eight to ten year process. PES can provide the catalyst and facilitate the initial impetus for this transition and act as an agent to buffer the shock of this transition. The 52 Sengsoulichanh, P. et al, Payment for Environmental Services (PES): Case study in Luang Prabang province, Lao PDR. IRD, IWMI, MSEC, NAFRI. Web source: 53 Richards, M. & Jenkins, M Potential and Challenges of Payments for Ecosystem Services from Tropical Forests. Forestry Briefing 16. Forest Policy and Environment Program. Web source: 54 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1: On a global level up to 80% of all deforestation is the result of agriculture. Moss, C Infographic: Charting the history of agriculture and climate change. Forests News- CIFOR. Web source: 162

171 transition itself is not hugely taxing in extra labor when accounting for the labor required to clear new forest areas and prepare fields and this needs to be factored in and relayed to help compensate farmers risk adversity. In this way the process to gain the balance, cooperation and synergy that needs to be achieved between and agricultural and forestry sectors can be initiated long before an absence of this interface presents a barrier to REDD+ implementation 56. PES has the potential to act as a subsidy to encourage farmers to adopt more sustainable forms of agriculture and thus offset risk adversity and compensate for reduced yields in the early stages of transition. The issues surrounding the problematic nature of marketing forest carbon strengthens the argument for pioneering PES for sustainable and conservation agriculture, as the potential for communities to gain tangible use rights to un-forested areas is much more likely. While forest-based mitigation strategies can be implemented more easily than convincing farmers to adopt new farming practices, in some contexts poor governance and unclear tenure can reduce the effectiveness of forest conservation in lowering carbon emissions. Therefore, agricultural reforms in conjunction with forest based mitigation strategies could prove far more effective 57. Moreover, with almost 100% of villagers engaged in agriculture and the serious degradation the types of agriculture practiced cause on the local and catchment level, this presents a valuable opportunity to have a financial cushion in the transition to a regime of sustainable land management. Given the high dependence on agriculture for subsistence and income, many people s livelihoods are vulnerable to any loss in productivity associated with resource degradation so the creation of a more stable foundation for agriculture needs to be established to simultaneously reduce pressure on forest resources, reduce ecosystem degradation and increase livelihood security 58. Given the above, the watershed-based ecosystem services to be marketed under these assumptions are: water quality, regulation, timing and flows, purification services carried out by forests and biomass, erosion control and flood mitigation (large storm events being the time when the largest sediment flows occur). These services ensure that water reaching downstream users and consumers in the lower catchment areas: is clean- for human and aquatic health and for agricultural use is consistent/regulated- flows are maintained throughout the year for environmental flows and human needs. Additionally, the risk of flooding is decreased due to filtering of rain events through the various levels of ecological sponges embedded within healthy forest ecosystems and sustainably managed agricultural landscapes these also assist in drought mitigation has low turbidity/low sediment loads- resulting in reduced problems of sedimentation for hydropower reservoirs through reduced erosion. This also has benefits for aquatic life for biodiversity and nutrition/food security and agricultural production through the maintenance of valuable topsoil 56 Grieg-Gran, M Beyond forestry: why agriculture is key to the success of REDD+. iied Briefing. Web source: 57 Börner, J. & Wunder, S Forests or Agriculture: not necessarily an all or nothing trade-off. Forests News- CIFOR. Web source: 58 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1:

172 has reduced problems of nutrification and toxicity from agricultural inputsreduced risk of algael blooms etc in reservoirs and better human and aquatic health (due to changes in practices used in agricultural production) flood damage is reduced. Step 2: Quantify the actual value of the ecosystem service The actual value can be represented as a measure of the monetary savings not paid for purification plants and water supply facilities (pump, pipes, tanks, dams etc) and not required in x-number of villages. This can also include maintenance and plant replacement costs over a given period. The monetary value of the service is the cost saving over the area of land put aside for the service (e.g. $/ha). An ecosystem service inventory needs to be conducted. This forms the basis of ecosystem services baselines from which PES progress can be measured. Because national or sub-national assessments of this nature are not currently operational for PES in Lao PDR the best option would be to move forward on a project-only assessment basis, including site-specific data, baselines, and measurement protocols. Having an accurate baseline helps to determine whether, and to what extent, PES activities succeed in delivering promised ecosystem services benefits. Creating a baseline requires adequate, consistent classification of ecosystem types and services. Inventory and mapping might reveal levels and types of services that are delivered under alternative land management regimes- to be determined during PLUP activities, indicate the degree to which ecosystem service supply is spatially congruent, and help to forecast changes in services and societal needs in the future. Assumptions will need to be made and these must be clearly stated for transparency 59. To accurately work out values: the downstream uses and number and type of user s of water needs to be established. the values of irrigated agricultural outputs the levels of household consumption (of water) and the current market value of replacing that free open access with a bought or pumped replacement and/or installation, functioning and maintenance of pumping and/or purification facilities/bore holes. Investments in watershed management are cheaper than treatment or new water supplies, for example in the US, it is estimated that each $ spent on watershed protection saves $7-200 in new filtration and water treatment facilities 60. the expected levels of sedimentation in reservoirs- reservoir sedimentation estimation (according differing land and forest management practices)- how many years assumed rates of sedimentation would take off the lifespan of a reservoir (the amount of years taken off lifespan the yearly profitability of the dam) and/or the disruption to power generation and supply power value loss calculation (no. of hrs/days/kwh lost value of output per hr/day/kwh). The 59 Hawkins, S Laying the Foundation: An Analytical Tool for Assessing Legal and Institutional Readiness for PES. Forest Trends/Katoomba Group. Web source: 60Richards, M. & Jenkins, M Potential and Challenges of Payments for Ecosystem Services from Tropical Forests. Forestry Briefing 16. Forest Policy and Environment Program. Web source: 164

173 World Commission on Dams found that 10% of studied projects lost 50% of their active storage as a result of sedimentation 61. Another alternative is costing the removal of the sediment from the reservoir. In the Lam Dong pilot in Vietnam Soil and Water Assessment Tool (SWAT) was used to predict water runoff and suspended sediment levels entering the Da Nhim Reservoir. The varying water inflows generated by the SWAT model were entered into a Power Generation Production model of the Da Nhim Hydropower Plant to estimate the daily power production outputs. The production value and net benefit under the two scenarios were estimated, as well as the Net Present Value (NPV) of the forest in dollars per hectare per year. The total power generation forgone due to the shift between the two scenarios was estimated, followed by the cash-flow from the power generation during the lifetime of the reservoir. The change in the NPVs between the two scenarios was estimated, as well as the NPV of the losses. Finally, the value of the environmental service that forests provide in reducing sedimentation in the reservoir was estimated 62. flood damage data would need to be analysed to ascertain costing of flood damage to infrastructure (houses, schools, roads, irrigation works), agriculture (crop losses and infrastructure/assets lost, destroyed or damaged) and lost/disrupted (economic) revenues Figure 20 is a chart detailing how these values were modeled using the SWAT model in a PES pilot in Lam Dong, Vietnam 63. Two divergent land use scenarios were run through a SWAT model to demonstrate the impact on hydropower production and generate tangible economic values for water regulation and soil conservation ecosystem services. Figure 20 PES Soil and Water Assessment Tool (SWAT) model 61 Arias, M.E. et al Paying the forest for electricity: a modelling framework to market forest conservation as payment for ecosystem services benefiting hydropower generation. Environmental Conservation: Thuy, N. T. B et al, Payment for Forest Environmental Services: A Case Study on Pilot Implementation in Lam Dong Province Vietnam from Winrock International. Web source: 63 Thuy, N. T. B et al, Payment for Forest Environmental Services: A Case Study on Pilot Implementation in Lam Dong Province Vietnam from Winrock International. Web source: 165

174 Step 3: Model the changes to ecosystem services as a response to changes in land use Modeling the changes in land management type and area of coverage will be initially facilitated using the results of the PLUP process. This will include aspects of social management changes i.e. extension and variations of village boundaries, population intensities etc. Based on initial indications, changes in land use will involve a shift to more permanent forms of agriculture such as smallholder woodlots and agroforestry, and (in watershed areas or all rain-fed agricultural land) the adoption of conservation farming techniques (Sloping Agriculture Land Technology, The Vetiver System, Living fences, zero-tillage, green manuring, crop rotation, permanent soil cover) 64. This will immediately enhance agricultural lands capacity to provide ecosystem services. In terms of timber harvesting operations, this may be harder to quantify and model due to the difficulty in acquiring base-line data for current and past logging rates (for setting reference levels) in areas which in the past have been largely (or fully) unregulated. In this instance the land use change will be to start logging (but depending on the current rates of harvesting, logging activities may decrease or increase - to be more sustainable than past logging or to begin logging more earnestly in untouched or highly stocked areas). Therefore, in some regards (although not all because PES mechanisms applied to sustainable agriculture is very unchartered territory) modeling changes in ecosystem services emanating from agricultural land would be much easier as indicators can only get better with the introduction of sustainable conservation farming techniques. On the other hand, in regards to the commencement of harvesting operations (which theoretically should have only just begun with the approval of a management plan) indicators on the changes to ecosystem services emanating from the forest ecosystems would, it has to be assumed, decrease across the board with the onset of logging introduced into that landscape. What has to be assumed in reality is that unsustainable rates of logging have been occurring across the PFA s and all logging henceforth will be conducted in a more ecologically benign and low impact manner and therefore improvement in the provision of ecosystem services should be observable across the board. Any payments for the enhancement of carbon stocks in forests would probably be best accounted for under REDD+ and not PES- deforestation rates would be mapped, a reference emission level (REL) set and payments made for reductions in carbon released from forest which is sustainably harvested (where carbon levels remain markedly higher) as opposed to the unsustainable way it would have otherwise been harvested (pertaining to the pre-requisite of conditionality in REDD+ 65 ). With the addition of the + in REDD+ the potential to capture all of the carbon benefits of SFM/sustainable harvesting means a much greater proportion of carbon sequestered, stored and not released can be accounted for and rewarded. The development of forest cover baseline assessments would form the basis for estimating carbon offset values that would enable 64 If any agriculture at all is to be permitted in these watershed areas. 65 Payments are only made for carbon saved that, under normal forest use or management, would have otherwise been lost. 166

175 the generation of additional revenues from standing forests or restoration activities 66. However, the increases in soil carbon that could be expected to occur with the introduction of conservation farming would be better marketed under PES as it would be easier to stack it with sustainable agriculture rather than trying to obtain payments for the increased capacity to perform that ecosystem service under a separate market mechanism such as REDD+. Despite the fact that REDD+ now includes a much broader range of mitigation potential than under the initial REDD mechanism (i.e. to include below ground carbon storage). Methods of physically modeling these changes: Testing water quality/turbidity Monitoring, measuring and quantifying erosion. This can be done using sediment traps to ascertain the sediment yield. This data can then be used to model the likely impact of land use options on soil erosion using the AnnAGNPS model 67. In the study in Luang Prabang Province results from modeling showed that with an annual crop covering just 10% of land area sediment yields were 2.2tonnes/ha, this increased by 600% when the annual crop covered 100% of land area 68. observing stream flows and comparing them to historical records (or from community oral history/local knowledge) similarly comparing the incidence of flooding measuring soil carbon levels (before and after changes) Step 4: Determine the effects of these changes on the value of the service provided by the ecosystem Management activities to be carried out which will mitigate these problems and strengthen ecosystem ability to provide goods and services: Sustainable Forest Management: Reduced Impact Logging (RIL) harvesting operations, selective cutting and waste minimisation, regular monitoring, detailed forest inventory s and surveys pre and post harvest, preservation of High Conservation Value Forest and the incorporation of ecosystem and forest restoration activities within the management regime. This kind of management approach has big gains for both biodiversity and carbon sequestration and storage. It is also particularly important for watershed management issues as the destruction of forest cover, whether from intensive timber harvesting or agricultural conversion, can significantly increase sediment yields. In some extreme cases, deforestation with resulting sediment delivery to reservoirs has reduced the projected useful lifespan of the facilities by as much as 50% Thuy, N. T. B et al, Payment for Forest Environmental Services: A Case Study on Pilot Implementation in Lam Dong Province Vietnam from Winrock International. Web source: 67 Sengsoulichanh, P. et al, Payment for Environmental Services (PES): Case study in Luang Prabang province, Lao PDR. IRD, IWMI, MSEC, NAFRI. Web source: 68 Sengsoulichanh, P. et al, Payment for Environmental Services (PES): Case study in Luang Prabang province, Lao PDR. IRD, IWMI, MSEC, NAFRI. Web source: 69 Arias, M.E. et al Paying the forest for electricity: a modelling framework to market forest conservation as payment for ecosystem services benefiting hydropower generation. Environmental Conservation:

176 all logging will adhere to an approved management plan and PLUP outcomes and recommendations activities to decrease forest degradation- reduction of firewood collection through creating synergies with alternative livelihood components of SUPSFM, sustainable management of NTFP collection, prevention of fire and encroachment by outsiders etc restoration of degraded and logged forest areas protection of watershed, riparian and high value conservation and restoration areas How these management actions will affect the value of the service: the services provided by forests to be marketed include- soil protection and stabilisation, water regulation and filtering, carbon sequestration and storage and biodiversity. The sum of these management interventions will equate to increased forest and ground cover, greater canopy closure with an intact understory, greater accretion of organic matter, stabilisation of soil, and the recovery of degraded forests will allow for greater carbon sequestration and storage, not to mention the positive influence of all of the above on biodiversity indicators. Sustainable or conservation agriculture: this refers to managing land in a manner that conserves or restores ecosystem services and biodiversity on agriculturally productive landscapes by minimising agricultural pollution, modifying management of soil, water, and vegetation resources and restructuring farming systems to mimic natural ecosystems 70. It achieves these aims by integrating the management of protected areas, watersheds, degraded forests, farms and plantations into one land management regime. This will be facilitated through the PLUP process. Combined, this has the effect of restoring and sustaining ecosystem processes, and by extension ecosystem services. This also adheres to the landscape level management approach advocated by the FIP. Sustainable/conservation farming technologies or techniques include: minimum or no-tillage minimal fertiliser and chemical use maintaining a constant ground cover and promoting legume fallows, green manure composting and other organic soil amendments and fertilisers crop rotation precision placement of live inputs in the agricultural landscape- e.g. live fences and strategic placement of agroforestry lots and carefully designed species variation in the planting layout- legume/vetiver/s.a.l.t. contours integrated pest management technologies. How these management actions will affect the value of the service: the services provided by agricultural landscapes to be marketed include: soil protection and stabilisation, water regulation and filtration, run-off management (flood mitigation) terrestrial and soil carbon sequestration and storage, biodiversity. Minimal disturbance of soil and constant ground cover in conjunction with strategic permanent crops will prevent erosion, prevent soil carbon emissions and increase 70 For example, inserting or integrating what are essentially artificial levels or story s of ecological sponges that absorb, filter and slowly but continually release water perform the functions of the various levels of an intact and healthy forest. 168

177 carbon storage capacity in soils and agroforests; increase water retention, filtration and slow-down runoff (also reducing erosion and preventing flooding and reduce the intensity of droughts); minimal/no use of fertilisers and chemicals will have a positive impact on soil micro-organism populations which play an important role in carbon sequestration and soil organic matter content with subsequent improvements in soil porosity and capacity for water retention and co-habitat for biodiversity. The studies conducted in Luang Prabang clearly corroborated these anticipated outcomes, finding that alternative farming practices and careful management of sensitive areas (e.g. riparian areas) opens new avenues for the improvement of water quality by reducing sediment delivery 71. There is a clear correlation between land use type and erosion and sediment yields. Determining the effects of these changes on the value of the services could be established by taking the baselines calculated in Step 2 and then replicating the process and determining the differences. However, there are many other means by which this can be done. In the Luang Prabang study, information gathered on land use and soil erosion can be used to calculate the cost of ecosystem service provision using the following equation: Cost of Change = [C(1+2+3)] B 72. This same study also noted that under (the then) current land allocation system it was almost inconceivable for farmers to consider altering their land use, given that they would have no rights over any improvements they made, and no guarantees even of userights of the investments they made. In the authors opinion this rendered the likelihood of gaining the voluntary involvement of communities for implementing a PES scheme highly unlikely and therefore unfeasible. Comparing and contrasting the original ecosystem function value brought about by changes within the PLUP process can be as simple as taking a percentage change of the area of a land type and its service. For example, the original X Ha of forest cover for water quality service is reduced to Y Ha. The difference in Ha is the value in n x $/Ha. Step 5: Identify financial measures to ensure maintenance of on-going service provision At the outset this step requires the identification and definition of the management regimes required to maintain the service over a given period (see Figure 19 for estimates of the associated costs of implementation in Lao PDR). The cost of maintaining or enhancing the provision of ecosystem services through these land management practices can then be assessed using simple calculations. The total costs linked to the adoption of the new practice are subtracted from the benefits derived from the new practice. Three types of costs were identified: (i) set-up costs including any initial investments e.g. to buy seeds, equipment and access training; (ii) initial opportunity costs associated with change in land use (e.g. loss of 71 Sengsoulichanh, P. et al, Payment for Environmental Services (PES): Case study in Luang Prabang province, Lao PDR. IRD, IWMI, MSEC, NAFRI. Web source: 72 C is the total adoption cost of the new practice, including: 1) cost of setting up the system (investments, training, etc); 2) losses related to the adoption of new practice; and 3) production costs linked to management of the new practice 4) Finally, B corresponds to the benefits of the new practice. Sourced from: Sengsoulichanh, P. et al, Payment for Environmental Services (PES): Case study in Luang Prabang province, Lao PDR. IRD, IWMI, MSEC, NAFRI. Web source: 169

178 profits as new crops mature); and (iii) production costs associated with managing the new practice (more labor intensive, new taxes etc) 73. Once this has been undertaken estimations can be made as to the costs of the chosen management regime changes. This will need to include all interventions (technical assistance, monitoring, evaluation and reporting, safeguards monitoring etc) and royalties, including village payments. For the ecosystem service in question the program needs to ascertain it s Net Present Value (NPV) and model how this may change over time and how climatic anomalies (droughts- water levels- and storm events- sediment loads- particularly pertinent in PES for Hydropower) and other similar unpredictable variables may affect the values 74. This helps to more accurately quantify the impact of forest conservation on hydropower production. Figure 21: Selected environmental management practices and estimated costs Any given PES scheme also needs to establish a realistic baseline for valuing the lost revenue from, for example, power generation as a result of a service not being provided by an ecosystem (for example, forest cover which prevents erosion). The annual value of lost revenues (for power generation anyway) increases over time (as reservoir sedimentation increases) and these calculations can then be used to help determine the viability of a PES scheme as any proposed scheme can only be feasible if the losses in revenue are less than the cost of paying for forest conservation and if the outcomes of that management action reduced losses by a tangible amount 75. The investment (in conserving ecosystem services) should be less than the net present value of future revenues. In a hydropower project in the Cardamom Mountains of Cambodia, the cost of protecting 460, 000 ha of forest was calculated at US$ 400, 000/yr, or US$ 0.9/ha/yr. However the cost of forest protection in the Cardamoms is uncharacteristically low due to access constraints and its status as a protected area (affording it relatively good forest cover). In highly disturbed watersheds such as those which lie within PFA s this cost could be expected to increase quite significantly with the presence of logging and agriculture. An average figure for tropical forest ecosystems in developing countries has been estimated at US$ /ha/yr 76. Studies conducted in the South East Asian region report that sediment yields increase exponentially as forest cover is 73 George, A. et al, Potential and limitations of Payments for Environmental Services (PES) as a means to manage watershed services in mainland Southeast Asia. International Journal of the Commons Vol. 3:1: Arias, M.E. et al Paying the forest for electricity: a modeling framework to market forest conservation as payment for ecosystem services benefiting hydropower generation. Environmental Conservation: It should be noted that in hydropower schemes the payments are usually determined by the cost of removing sediment from the reservoir, not kwh s of lost energy production. 76 Arias, M.E. et al Paying the forest for electricity: a modelling framework to market forest conservation as payment for ecosystem services benefiting hydropower generation. Environmental Conservation:

179 cleared with maximum reported values approaching 100 t/ha/yr in large watersheds with mixed land use (i.e. PFA s- see Bruijnzeel in Arias, M.E. et al). In Vietnam results indicated that one hectare of forest was valued at US$69 per year to the Da Nhim hydropower project, of which US$14.60 was attributed to the benefits accrued from water regulation and US$54.40 for reduction of sediment into the reservoir. Translated into production cost, water regulation and soil conservation was priced at VND per kilowatt-hour of electricity produced 14.9 VND for cost of water regulation and 49.6 VND for reduction of sediment into the reservoir. These initial estimates formed the basis for policymakers to consider and ultimately decide upon the payment levels stipulated in the pilot PFES policy: 20 VND per kilowatt-hour for power generation and 40 VND per cubic meter for water provision 77. In addition, this step needs to incorporate and capture the following: 1) a benefit sharing mechanism to and within the communities who change their behavior and, 2) how the services will be paid for and by whom. 1) Benefit sharing mechanisms will depend largely on the local level institutions and arrangements which are present in participating communities and should be tailored to the particular social conditions which may be unique to the area. Existing timber sharing revenue mechanisms will be simultaneously put in place and so one option is to funnel funds through these same channels. However, if sustainable agriculture is going to be targeted it may be necessary to formulate new groups as different community members may be engaged in different livelihood activities (and thus not involved in a timber sharing group). It is essential that whatever mechanism is adopted is fully transparent and functioning as a PES scheme can and will only be successful where people gain tangible financial benefits for the behavioral changes and managerial adaptations they make (albeit payments will be conditional on the maintenance of the service in question). The opportunity costs of protecting upland watersheds in community areas need to be estimated and incorporated in this valuation, adequately compensating those who may be required to desist from certain activities which degrade forests and soils in particularly fragile or valuable areas. The development of watershed management plans are necessary to ensure the accurate quantification of the financial costs of forest management and this can be captured in the PLUP process. 2) how the services will be paid for and by whom: PES has manifested broadly across the world depending on the particular circumstances pertaining to the areas in question. While the basic principles outlined in the beginning of this document remain the same the manner in which the broader arrangements of each scheme manifest are inherently shaped by the particular circumstances on the ground. The following is an overview of how various schemes have approached the implementation of PES. These can be classified into four main types: Public payment schemes to forest owners or managers in which the government is the main or only buyer (e.g., national PES programs in Costa Rica, China and Mexico). Trading between buyers and sellers of ecosystem services around a regulatory floor on the level of services to be provided or a cap/quota on allowable damage or deterioration, known as cap and trade mechanisms. 77 Thuy, N. T. B et al, Payment for Forest Environmental Services: A Case Study on Pilot Implementation in Lam Dong Province Vietnam from Winrock International. Web source: 171

180 Private market-based deals in which beneficiaries of ecosystem services contract directly with service providers (e.g. downstream beneficiaries with upstream watershed managers). Eco-labeling or certification of forest or farm products in which consumers pay a green premium to assure neutral or positive ecosystem impacts 78. Within these four main types there are many options available. To use the hydropower sector as an example again, payments can come from the consumers as a percentage of the rate paid for electricity, or in the form of an extra or higher tax on high emission sectors such as fossil fuels; these can also be paid directly from the hydropower company or from the government. In other schemes funds can come from grants, loans, compliance and voluntary markets, bonds, private sector payments and combinations of the above. Case studies of PES schemes in Asia: 'Community Forestry' land management contracts: Sumba Jaya, Lampung Province, Indonesia The Indonesian Community Forestry Program ran a project with Rewarding Upland Poor for Environmental Services (RUPES) to transfer the management of cultivated state-owned (watershed) Protection Forests to communities, provided they agree to and sign a contract to manage it as multi-strata coffee gardens, thus ensuring that the land will continue producing watershed protection benefits. Essentially this allowed farmers to obtain land tenure in return for contractual obligations to conserve and protect remaining forest (including patrols, removing encroachers and preventing fires), to plant trees in their coffee farms (400 trees/ha) and plan and map soil and water conservation measures to be enacted. ICRAF provided support to demonstrate the potential of agroforestry in watershed protection (also known as protective gardens in Indonesia). According to ICRAF a "coffee-agroforestry mosaic can be as effective as the original forest cover in protecting watershed functions related to water yield and water quality. This is particularly pertinent considering the original forest cover in state managed forests (regionally) is generally quite degraded 79. The contracts gave legal permission to use state-owned protection forest, for a trial period of five years with the possibility of extension to 25 years. So far, no extensions have been granted. The reason cited for this is the lack of monitoring capacity within the forestry department, necessary to confirm good performance of the Community Forestry groups during their fiveyear trial period, high registration fees for the Farmers Committees levied by the government as well as long approval times of applications (up to 4 years) and high transaction costs in dealing with government forest agencies in drawing up the necessary maps and management plans. Another reason cited was deflated coffee prices at the time. This would be buffered in future by the products from the tree crops but 5 years is generally too short to receive tangible gains from agroforestry systems. The problems were exacerbated by the fact that the local government was forced to waive the annual land fees from beneficiaries as coffee prices were so low, thereby decreasing the governments capacity to invest in the program. However, a more accurate interpretation may be that the government was essentially unwilling to grant 25-year use-permits. 78 Richards, M. & Jenkins, M Potential and Challenges of Payments for Ecosystem Services from Tropical Forests. Forestry Briefing 16. Forest Policy and Environment Program. Web source: 79 Porras, I. & Neves, N Indonesia- Sumba Jaya: 'Community Forestry' land management contracts. Markets for Watershed Services- Country Profile. IIED. Web source: 172

181 The authors noted that in many cases the prospect of gaining tenure acted as an important incentive to join the program but that the incentives to maintain and comply with commitments were weak. One recommendation to assist in maintaining compliance was the establishment of a Village Development Fund with the ability to withhold funds should compliance be unsatisfactory. This is already a facet of SUFORD AF s approach and so the relevant mechanisms in this regard are already in place. Payments were made by the National government on behalf of water users in general, and of hydropower plants in particular, like the government-owned Way Besai Plant. The scheme developed socioeconomic baseline data acquired through participant surveys and the use of a rapid rural appraisal tool to guide rewards compensating land users for the continued, maintained and/or improved provision of ecosystem services. This involved the development of a Negotiation Support System, combining a reconciliatory negotiation process with a toolbox that could clarify the likely consequences of plausible land use change very similar to the PLUP process which will be used in PFA s. All monitoring was done through community groups who learn how to trap and use sediments. A multi-tiered financial reward scheme provides some funds upfront and then pays additional specified amounts based on effects achieved during the commitment period and offers an interesting model to consider. A RiverCare group will receive US$1,000 for a reduction (in sediment load) of 30 percent or more, US$700 for a 20 to 30 percent reduction, US$500 for a 10 to 20 percent reduction, and US$250 for a less than 10 percent reduction 80. Equitable Payments for Watershed Services - Mount Guiting-Guiting Natural Park, The Philippines In the Cantingas Water Fund in the Philippines, indigenous communities who participated in reforestation and patrol activities (aimed at illegal loggers) were paid with consumer coupons (at the request of women s groups) at a village store. In this way the fund also contributed to creating a more harmonious social environment with social sanctions on alcohol consumption and gambling. The Fund was financed by the Local Government Unit with contributions from the Romblon Electric Company 81. The program resulted in a net decrease in the rates of illegal logging in the watershed with 139 illegal loggers apprehended and 2,438 board feet of timber confiscated 82. The Kulekhani Reservoir, Makwanpur, Nepal Two hydropower plants are powered by flows from the Kulekhani catchment. The two plants provide 17 per cent of all the hydroelectricity in Nepal. More than 46,000 people live in the Kulekhani catchment area. Deforestation of upland areas in the past and periods of intense rain during the monsoon have caused frequent landslides, leading to dramatic sediment build-up in the reservoir. This has severely reduced power production. To tackle the problem the government has promoted watershed conservation programs, including projects employing local people to build sediment trap dams. In 2003 a PES scheme was established in collaboration with the government, linking upland communities in the Makwanpur area with 80 Porras, I. & Neves, N Indonesia- Sumba Jaya: 'Community Forestry' land management contracts. Markets for Watershed Services- Country Profile. IIED. Web source: 81 Duncan, E Payments for Environmental Services: An equitable approach for reducing poverty and conserving nature. WWF. 82 Porras, I Philippines- Mount Guiting-Guiting: Equitable Payments for Watershed Services. Markets for Watershed Services -Country Profile. IIED. Web source: 173

182 downstream developments at the hydropower plants. Under government regulations, the Makwanpur District Development Committee receives 12 per cent of annual royalties paid by the Kulekhani power plants to the central government. The scheme specifies how this money should be allocated, with those living in upstream catchment areas receiving the largest share. In upland communities received US$ 3,000; in US $5,000; and in about US$ The PES scheme has not only helped conserve upland areas and given vital additional income to poor communities, it has also raised awareness among local people about the provision and payment of ecosystem services. Like many other PES schemes the payment method has not been without problems. Payments are made indirectly, through government institutions. This has made the scheme vulnerable to political interference and conflicts between rival local bodies with various disputes holding up ongoing implementation of the scheme PROJECT FEEDBACK and GRIEVANCE MECHANISMS 10.1 General Principles on grievance redress procedures Even though villagers who participate in the project will ultuimately benefit from sustainable use of forest and other natural resource and alternative livelihoods that the project seeks to develop, miscommunication, short-term loss in livelihood and internally and externally originating conflicts may occur. Grievances that arise due to project activities will be resolved following a grievance mechanism that is based on the following key principles: a. Rights and interests of project participants are protected. b. Concerns of project participants arising from the project implementation process are adequately addressed and in a prompt and timely manner. c. Entitlements or livelihood support for project participants are provided on time and in accordance with the above stated Government and World Bank safeguard policies. d. Project participants are aware of their rights to access grievance procedures free of charge. e. The grievance mechanism will be in line with existing policies, strategies, and regulations on redressing village grievances as defined by GOL. f. The grievance mechanism will be institutionalized in each village by a selected group of people, involving ethnic minorities, women, and representatives of other vulnerable groups in the village. At the beginning of the project implementation, the SUPSFM project should set up a Grievance Redress mechanism from the community level up to central level Project grievance redress procedures A grievance mechanism will be available to allow any project-affected persons to appeal decisions, arising from project practices or activities related to use and management of land, forest or other assets. Project participants will be fully informed of their rights and of the 83 Solgaard, A., et al Vital Graphics on Payment for Ecosystem Services: Realising Nature s Value. GRIDArendal. Web source: 174

183 procedures for addressing complaints whether verbally or in writing during consultation, assessment surveys and implementation of activities. Care will always be taken to prevent grievances rather than going through a redress process. This can be ensured through careful activity design and implementation, by ensuring full participation and consultation with villages, and by establishing extensive communication and coordination between the community, the project, and local authorities in general. There are three distinct cases where complaints mechanisms will be required: (i) disputes within or between villages (ii) ) disputes between village and government authorities; (iii) disputes between a village and a third party other than the government. In case of conflicts, claim, an issue or a problem, an individual or a group may decide to submit a grievance, either verbally or in writing, to the Village Mediation Unit which is the first interface of grievance redress at the community level. Step 1 Village level The first step in case of a grievance would be to report to the Village Mediation Unit. The VMU will be in charge of documenting the grievance by using the form provided and signed/fingerprinted by the Grievant for processing. The project will develop grievance registration forms, similar to the Form 1 developed under NT2 project, for use by complainants and record by VMU. The VMU should be required to provide immediate confirmation of receiving a complaint and should complete an investigation within x days of receipt. Then, within 5 days after receipt of the grievance the VMU should meet the Complainant to discuss (mediate) the grievance and, if they are found to be simple miscommunication or clarification, they will be addressed immediately. If it is found that further investigatuions are needed to find adequate solutions, Technical Service Centers will be called upon for technical guidance. Solutions will be provided to complaiants within three weeks of original complaint registration, or if solutions cannot be found within three weeks, complainants will be informed of the progress on every two weeks afterward. If solutions canont be found at the village level or if the Complainant is not satisfied with the response, the issue is transferred within one month to the next level, led by the District Grievance Coommittee, for further action. The Project will provide training and capacity development support to VMU to strengthen their representativeness and capacity to address grievances fairly and equitably. In particular, participation of vulnerable people including minority ethnic groups in the village, women, youth and other vulnerable people in VMU will be required and carefully monitored. Training will also be provided so VMU is well aware of the rights and responsibilities of communities under the project and the supports and assistance they are entitled to under the project. Step 2 District level Griveances that cannot be resolved at the village level will be brought to the District Steering Committee that will have 30 days after the receipt to review all available information from the investigation by both VMU and TSC, and analyze / investigate each case. Within 30 days, the DSC invite the Complainant to discuss the grievance and the Grievant is informed of the outcome of the investigation and the decision. 175

184 If the Complainant is satisfied with the outcome, the issue is closed, and the Complainant provides a signature as acknowledgement of the decision. If the Complainant is not satisfied with the outcome, the Complainant may submit an appeal to the DSC if there is additional relevant information for reconsideration. Within 14 days the DSC will both collect facts and reinvestigate and will invite the Complainant to discuss the appeal and the Complainant is informed of the outcome of the investigation and the decisions made. If the Complainant is still dissatisfied with the outcome, he/she can then submit his/her complaint to the Provincial Steering Committee. The DSC will also be in charge of compiling all grievances into a District Grievance logbook. Step 3 Province level In case of strong or unresolved grievances such as land grabbing cases will be referred to the Provincial REDD+ Steering Committee (PRSC) that will be chaired by the Vice Governor of the province. Members of this committee will include the District Governors of participating districts, division heads of participating line agencies, and representatives of LWU and LNFC. The Provincial National Assembly should also be involved in acknowledging the grievance and advocating for suitable resolution. PRSC will both collect facts and reinvestigate and will invite the Complainant to discuss the outcome of the investigation and the decisions made. If the Complainant is still dissatisfied with the outcome, he/she can then submit his/her complaint to the National Steering Committee. The PRSC will also be in charge of compiling all grievances into a Provincial Grievance logbook. Step 4 Central level Grievances that cannot be solved at the provincial level will be sent to the National Project Steering Committee (NPSC) chaired by the Vice Minister of MAF at the central level and members will include DG/DDG level representatives of participating agencies in various ministries (MAF, MONRE, MOIC, MPI, etc.), as well as national leaders of mass organizations like LWU and LNFC. The World Bank TT may participate as an observer. Step 5 is not only the ultimate level and end of the process that can only be reached after having gone through each of the previous steps; this means that a Grievant 84 can directly contact the central level NPSC or national assembly Technical Service Centers: Support mechanism for VMU At any stage of grievance mechanisms, Technical Services Centers will be called upon to assess disputes and grieveances from technical perspectives and provide guidance to relevant agencies to help identify technically sound resolutions. Advice and guidance of TSC will be useful not only about grievances related to livelihood activities (through provision of timely advice to resolve technical matters to improve the implementation of livelihood activities), but 84 Grievant: an individual or group that has an issue, concern, problem, complaint, or claim [perceived or actual] that he, she, or they want addressed and/or resolved. 176

185 also for disputes related to boundary conflicts and overlapping use of land and forest resources. The role of TSC that will exist in an arm s length of communities is particularly important to ensure that technically sound solusions are found at an early stage before they are escalated Format for Recording Grievance and Complaints Griveance forms The Grievance Procedure Form will be developed that will consist in 5 different forms including: Form 1: Form 2: Form 3: Form 4: Form 5: Griveance registration form (by VMU) Grievance initial investigation (by VMU) Technical Service Center investigation form DRSC grievance outcome PRSC Grievance outcome Petitions In addition to the formal, semi-formal, and informal dispute resolution mechanisms petitions can be filed. A petition is a document presented by a citizen or organization to the relevant authority requesting that they consider and deal with an action or decision made that the petitioner believes infringes the law and affects the interests of the State, community, the rights or legitimate interests of the petitioner. For example, as part of the National Assembly s oversight role, it has a mandate to receive public petitions. These may relate to administrative decisions, court decisions or individual state officials decisions or behaviour. Petitions are reviewed and may be referred to the Standing Committee of the National Assembly. The Standing Committee may then request the OSPP or SPC to review and re-consider a court decision or instruct the government to address the grievance. There are three types of petitions: (1) a petition to a State administrative body, which is called a request ; (2) a petition to a judicial body, such as the prosecutor or court, is called a claim; and (3) a petition to the National Assembly that is called a petition for justice. 11 MONITORING AND EVALUATION The SUPSFM will build on the existing reporting; monitoring and evaluation system developed for SUFORD, and will be aligned with GoL Forestry Strategy 2020, World Bank core indicators for the forestry sector, and the SUPSFM Results Framework. The project will also undertake special studies on free, prior and informed consultations, stakeholder participation, especially ethnic groups and women, technical aspects of project implementation, safeguards, capacity building and other issues relevant to the project. The role of communities in monitoring will also be strengthened. The GoF-TA will play an important role in results monitoring and evaluation in close partnership with DoF with a strong focus on capacity building. 177

186 11.1 Internal monitoring 1) Village self-monitoring. Village Forestry and Livelihood Committees (VFLC), under the support of the project Forest team and Livelihood team as well as the consultants embedded at the district level, will take a lead and carry out a participatory monitoring of project performance, impact, efficiency. A community meeting will be held on a quarterly basis where villagers will discuss their perceptions on the efficiency of project support, suggestions they may have to improve the efficiency or alternative options, and any negative impact that has occurred and remains to be resolved. Such meetings will also be used by the project to asses the level of understanding and ownership of villagers to PSFM and alternative livelihood development, as well as changes in people s attitude and behavior. These participatory monitoring efforts will not be stand alone activities but will be linked to the overall project monitoring and evaluation framework. 2) Participatory Monitoring and Evaluation. The project will carry out an annual meeting at the district level where village representatives, including both a representative of VFLC and another villager nominated by villagers, will present their perspectives and opinions collected through the village self-monitoring process. If the VFLC representative is a male, then the second village representative should be a female, or the vice versa. If a village consists of multiple villages that have been consolidated, at least one representative of each hamlet will also participate. Village level meetings will precede the annual district level meeting, in participation of Village Grievance Units, where perspectives of villagers will be discussed and outstanding grievances or issues that are raised to VGU frequently will be reported. The PSFM teams and VLD teams supporting respective villages will support the village level meetings, paying particular attention to ensure vulnerable people and the minority ethnic groups from each hamlet will meaningfully participate in the village level meetings. This district level meeting will be organized by DAFO and supported by the project Forest team and the Livelihood team as well as the consultants embedded at the district level. At the meeting, village representatives will be encouraged to share their perspectives on project performance, suggestions for improvement, outstanding grievances, and other relevant issues. Measures to improve project performance and resolve outstanding grievances will be also discussed and agreed. Minutes will be taken and kept in the project file, and progress on agreed actions will be discussed in the meeting to be held in the following year. 3) Project monitoring. Project implementation will be regularly supervised and monitored by the relevant Technical Service Centers. The consultants hired by the project and embedded at the district level will prepare a quartetly progress report.and describe their observations in project performance including on issues related to safeguards, which will be kept in the project file for possible review by the World Bank. The National Project Management Office (NPMO) will supervise and monitor the process at least one time per year and include the results in the Project annual reports to be furnished to the World Bank. The Project staff in close consultation with local government and project beneficiaries will establish a set of practical monitoring indicators in line with the project objectives. Indicators will cover at least the following aspects of the project: Budget and time frame of implementation 178

187 Delivery of project activities (project inputs) Project achievements in developing alternative natural resource use and livelihoods (project outputs and outcome) Consultation, Grievance and Special Issues Monitoring of benefits from project activities. 4) Forest inspection department. The SUFORD project has initiated the design of an internal monitoring system but has taken only partial steps to implement it. The setting up of the Forest Inspection Department (FID) with a clear enforcement function provides a new opportunity for efficiently monitoring timber extraction in the SUPSFM target areas. The FID should be involved in monitoring the Strategic and Tactical Enforcement Patrol Program (STEPP) especially in areas of greatest risk External monitoring External monitoring: Project activities will be subjected to external monitoring by appropriate agency and/or an independent qualified individual consultant or a team as required. The external monitoring agency or consultants should be hired under terms of reference that specify frequency of monitoring, sampling and interview methods, and reporting requirements. Monitoring reports will be maintained by SUPSFM monitoring team and made available to the World Bank supervision team. External monitoring will take place at least once a year, focusing on process indicators, output indicators as well as impact indicators. 12 Appendices 12.1 References Chamberlain, J (2008) Social impact Assessment. 179

188 Daviau, S. (2012) Report on Ethnic and Gender work performance and Village Development related monitoring. Department of Agriculture Extension and Cooperatives DAEC), SUFORD, Vientiane, Lao PDR, June Daviau, S (2012) Customary Law Survey. Ministry of Justice, UNDP, Lao PDR. Daviau, S. (2011) Access to Justice in the Lao PDR, Lao Bar Association, ministry of justice, UNDP, Vientiane, Lao PDR. Daviau, S. (2006) The People and Their Forest, Ethnographic Study on Katuic groups in five PFAs (Production Forest Areas) in Saravane, Savannakhet and Khammouane Province, Lao PDR. In cooperation with the Lao Front for National Construction (LFNC). Co-operation between Governments of Lao PDR, Finland and World Bank in the framework of the Sustainable Forestry and Rural Development Project - Lao PDR (SUFORD). Daviau, S. (2003) Land tenure, Livelihood and Natural Resource Management in Rmeet and Khmu Rok Communities. Contribution for Project Formulation in Sisaket area, Pha Oudom District, Bokeo province, Lao PDR, Prepared for Concern Worldwide, Octobre Ewers, K. A., Khamla Phanvilay, Daovorn Thongphanh, Samphanh Phomma (2012) A Study of SUFORD Village Forestry Institutions (VFC, VFO, GVFC, GVFO). Sustainable Forestry for Rural Development Project Additional Financing (SUFORD - AF) Foppes, J. and Ketphanh, S. (2005). Non-Timber Forest Products For Poverty Reduction And Shifting Cultivation Stabilisation In The Uplands Of The Lao PDR. In Bouahom, B. Dr., Glendinning, A., Nillson, S., and M. Victor (eds) Poverty reduction and shifting cultivation stabilization in the uplands of Lao PDR: Technologies, approaches and methods for improving upland livelihoods - Proceedings of a workshop held in Luang Prabang, Laos PDR, January 27-30, National Agriculture and Forestry Research Institute. Vientiane, Lao PDR. Gebert, Rita & Ny Luangkhot (2007) Rights-Based Approaches to Gender and Livelihoods Implications for Programming, Rural Development in mountainous Areas of Northern Laos (RDMA), GTZ. Inthavong, C., P. Thalongsengchanh & all (2009) Report findings of the State Lease and Concession. Inventory Project in Luangnamtha Provicne, NLMA, Land Management and Registration Project, GTZ, Vientiane, Lao PDR. Inthavong, C., P. Thalongsengchanh & all (2010) Report findings of the State Lease and Concession. Inventory Project in Oudomxay Province, NLMA, Land Management and Registration Project, GTZ, Vientiane, Lao PDR. Khontaphane, S. S. Insisiangmay & V. Noplintha (2006) Impact of border trade on locl livelihoods. Lao- Chiense Border Trade in Luang Namtha and Oudomxay Provinces. Technical Background Paper for the third National Human Development Report, Lao PDR International Trade and Human Development, UNDP. Lao National Tourism Administration and Asian Development Bank (2008). Mekong Tourism Development Project in Lao PDR: Project Completion Report. Lemoine, J. Wealth and Poverty: A Case Study of the Kim Di Mun (Lantène Yao, Lao Houay) of the Nam Ma Valley, Meuang Long District, Luang Namtha Province, Lao PDR. Realized in the framework of the project: Development and Testing of a GIS-Linked Sentinel Surveillance System and Data Base on the 180

189 Trafficking of Girls and Women in the Upper Mekong Sub-region (RAS/98/H01) under Inter-Agency Agreement and under close supervision of the UNESCO Regional Advisor for Culture in Asia and the Pacific Mann, Elizabeth Study on Women s Land and Property Rights under Customary or Traditional Tenure Systems in Five Ethnic Groups in Lao PDR Land Policy Study No. 13 under LLTP II Sponsored by: Lao- German Land Policy Development Project (German Contribution to the Lao Land Titling Project II in Lao PDR). Vientiane, GTZ. National Land Management Authority and the Natural Resources Research and Information Centers, Findings of the State Land Lease and Concession Inventory in Bokeo, Lao PDR. National Land Management Authority and the Natural Resources Research and Information Centers, Findings of the State Land Lease and Concession Inventory in Luang Namtha, Lao PDR. National Land Management Authority and the Natural Resources Research and Information Centers, Findings of the State Land Lease and Concession Inventory in Oudomxai, Lao PDR. National Land Management Authority and the Natural Resources Research and Information Centers, 2010a. Findings of the State Land Lease and Concession Inventory in Xayaboury, Lao PDR. STEA (2004). National Biodiversity Strategy to 2020 and Action Plan to Science Technology and Environment Agency. Vientiane. Steen M., Forest products and services of northern Laos: Case studies from two forest dwelling villages. Swedish University of Agricultural Science. Ministry of Agriculture and Forests, Status of SUFORD and Future Directions June nd DRAFT for Internal Use only, Department of Forestry Lao PDR. Maunsell and Lahmeyer, Power System Development Plan for Lao PDR Final Report Volume C Project Catalogue, Wellington NZ. UN (1998). Sources and Nature of Water Quality Problems in Asia and the Pacific. Economic and Social Commission for Asia and the Pacific. United Nations, New York. University of Laos (Forestry Faculty), An Environmental Impact Assessment Of Additional Financing For The Sustainable Forestry And Rural Development Project (SUFORD AF) Draft for discussion. Vernon, E. (2006) Market Analysis Report. Oudomxay Community Initiatives Support Project Department for Planning and Cooperation Oudomxay Province. Project Code: IFAD Loan No. 586LA, UNOPS No. LAO/02/F01, LD No. LAO/412. Wandschneider, Tiago (2011) Market Access for Farmer Organizations Project, Bokeo Province, Laos. Final Evaluation Report. Pierret, A.; de Rouw, A.; Chaplot, V.; Valentin, C.; Noble, A.; Suhardiman, D.; Drechsel, P Reshaping upland farming policies to support nature and livelihoods: Lessons from soil erosion in Southeast Asia with emphasis on Lao PDR. Marseille, France: Institut de Recherche pour le Développement (IRD); Colombo, Sri Lanka: International Water Management Institute (IWMI). 181

190 Poulsen A.F., Hortle K.G., Valbo-Jorgensen J., Chan S., Chhuon C.K., Viravong S., Bouakhamvongsa K., Suntornratana U., Yoorong N., Nguyen T.T. and Tran B.Q. (2004). Distribution and Ecology of Some Important Riverine Fish Species of the Mekong River Basin. MRC Technical Paper No. 10. Weiyi Shi (2008) Rubber Boom in Luang Namtha. A Transnatonal Perspective. Rural Development in Montainous Areas of northern Lao PDR. GTZ, Vientiane, Laos. Warren, T.J. and Mattson N.S. (2000). Fish passes and migration. Can fish passes mitigate the impacts of water-related development on fish migrations in the Mekong Basin? Catch and Culture. Mekong Fisheries Network Newsletter. ISSN X, Vol. 6, No. 2 December 2000 pages 1 to 4. Wikramanayake, E., Dinerstein, E. (2002). Terrestrial Ecoregions of the Indo-Pacific: A Conservation Assessment. United State of America, Island Press. 182

191 12.2 Forest Cover Inventory Class Summary 183