DECENT WORK AND SUSTAINABILITY POLICY INTEGRATION IN THE FORESTRY SECTOR Sustainability & social responsibility in the forest industry - background Environmental debate: destruction tropical forests, threat to health of temperate and boreal forests Peter Poschen Policy Integration Department International Labor Office (ILO) Rio Conference 1992: 3 components of sustainability Sustainable Forest Management = Sustainable in forests protection of environment Study visit International Masters Course, Geneva, 19 February 2007 1 2 economic social justice The Forestry Sector: an industry on the move WORLD OUTPUT VS. TRADE WOOD PRODUCTS 1990-99 Trade is outgrowing production Includes: -Industrial roundwood -Sawnwood -Wood-based panels 10 140 130 120 110 Production Export Import World market prices 100 90 80 Foreign direct investments (FDI) Source: Faostat Forestry Data 1990 199 1999 3 4 Foreign Direct Investment: US AND FINNISH FOREST INDUSTRIES 1982-98 WORLD PRICES: PRICE DEVELOPMENT WOODEN FURNITURE 1990-96 Source: Kaplinsky & Readman 6 1
SECTORAL ASPECTS TREE PLANTATIONS Concentration of purchasing power: Publishers, retailers: construction material, DIY, furniture (e.g. IKEA) Environmental reasons and wood supply: Tropical timber Plantations Recycling The share of plantationgrown timber will increase substantially Today 3% Tomorrow (2040) 0% 7 8 WHERE IS THE INDUSTRY HEADING? Development of demand: Modest growth, major redistribution urban South East Asia, Eastern Europe Change in structure: Concentration into larger units Relocation to the south and to the east: New markets, low-cost production, raw material 9 Employment & income Poverty, Indigenous rights, local populations Sustainability in times of globalization? Globalized industry (Multi-national enterprises, global production chains) Biodiversity, Greenhouse gases, CO 2 trading 10 SOCIAL DIMENSION OF SUSTAINABLE DEVELOPMENT EMPLOYMENT TRENDS Social dimension has to be incorporated into policies related to the forestry sector Industrialized countries: Stagnation/fall/rationalization e.g. Finland Shared international vision for policies & strategies ILO texts, of criteria & indicators for sustainable forest management Certification of products Growing attention to social components of sustainable 11 Developing countries: Growth: Uruguay Stagnation: Chile Resource shortages: Indonesia R.S. & transition: China Transition: Russia 12 2
JOBS GROWING ON TREES Formal employment > 10 million real jobs (in DCs) but: Workingpoor Quality? Furniture 7% Wood industries Visible sector 37% Forest-based informal sector 34% Invisible sector 63% Pulp and paper industry Forestry Fuelw ood production 29% Forests and poverty - on causes and effects Dependence on forestry = cause of poverty For most poor people way out of poverty is way out of forests Limited scope for forestry as solution 13 14 ILO guide: social dimension of sustaianble Minimum requeriments: Decent work Fair distribution of benefits and income Participation in decision making Adopted by FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification Schemes) (partly) 1 WILL CERTIFICATION WORK FOR PEOPLE? Benefits: Has put people back on the map Recognition of role, needs and rights Substitute for inexistent labour inspection (provided certifiers are qualified) 16 Will certification work for people: limits Example: Brazil certified pulp plantations Most forestry workers recruited through contractors for the minimum wage (~US$100/m) =working poor 17 Will certification work for people? Questions/doubts: Certification will work least whereitismostneeded Certification cannot address macro-economic issues (social exclusion, unemployment ) How good are forest-based livelihoods? 18 3
ILO advisory services: More and better jobs Social dialogue Partnerships Incl. Private-public Codes of practice Certification Chambers for sustainable National Forestry Programs Forestry is an industry that is trying to be sustainable in a world that is not 19 20 The forest industry and The forests, the poor, and the foresters Forests and poverty - on causes and effects Forests low economic carrying capacity Much forest-based employment is last resort Even safety net function precarious Forest industry can contribute to/perpetuate poverty Workdays per ha 4 40 3 30 2 20 1 10 0 1 3 7 9 11 13 1 17 19 21 23 2 Pinus radiata Eucalyptus Years 21 22 Not seeing the people for the trees? Pointers for sustainable Ambiguity of objectives: people or trees/forests? World Food Programme Tropical Forestry Action Programme Industrial forestry trickle down Farm-forestry Community forestry When in doubt, forestry is about trees and economic I just don t want to develop, that s all. 23 Take people seriously Give social objectives same status Solutions need to include ways out of forestry Productivity Integration with other sectors and players: SME s Skills Rights, representation Investment You cultivate land, you built your own house, you make rope, you work copper as what should I classify you? As a patient person. 24 4
Pointers for sustainable Map potential and risks Ex-ante + monitoring Pointers for sustainable No blue-prints Analytical and managerial capacity Representation 2 26 QUALITY OF EMPLOYMENT CONCLUSIONS No sign that globalization directly affects wage levels Outsourcing strong and negative influence, e.g. forestry contractors Skill critical in ICs and DCs 27 Productive employment key: decent work Role of forestry limited Integration with other sectors Mix of approaches National capacity building essential 28