Unlocking Forest Values for Forest Dependent People World Bank South Asia Agriculture and Rural Development
Key Messages Community-based forestry income could rise from an estimated US$222 million in 2004 to approximately US$2 billion per annum in 2020. Community-based forestry offers vast potential for poverty reduction and rural economic growth in India while also supporting critical national conservative goals. OK But What Are The Details?
Background on Sector Studies Study linked to Bank/Government of India guidelines for engagement in forestry Intensive field work in Jharkhand,, Madhya Pradesh, and Assam, consultations Major literature review Integrated studies: Legal framework, resource assessment and management planning systems, institutions, market systems, perspectives from people Focus on improving livelihoods and conservation
National Policy Issues Forestry Share of GDP is Fairly Small Indian forestry and logging GDP less than 2% of total measured national GDP % GDP Contribution 35 30 25 20 15 10 5 0 1982 1991 2001 Forestry and Logging Agriculture Current Constant Current Constant Mexico (1%), Canada (3%), Finland (8%), Latvia (12%)
National Policy Issues State GDP Forestry Share Quite Variable 3.00 2.50 2.00 1.50 1.00 0.50 GDP Share - Logging and Forestry Services (%) 0.00 Orissa Chattisgarh Madya Pradesh Assam Kerala Karnataka Andrha Pradesh Maharashtra Jharkhand West Bengal Tamil Nadu
National Policy Issues Low Forest Productivity Average Forest Stocking Levels Average Annual Forest Growth
National Policy Issues Concerns Over Wood Supply Timber Supply and Demand Fuelwood Supply and Demand 100 250 million m3 80 60 40 20 Supply Million tonnes 200 150 100 50 Supply 0 1996 2001 2006 0 1996 2001 2006 Household Industry Rural Urban Industry Policy goal of 33% forest cover by 2012, JFM as key element JFM in 27 states, 85,000 committees, 17.3 million ha of forest land (27% of total)
What Is A Typical Rural Forest Community? Agriculture based economies Majority are marginal farmers < 1 ha of land High illiteracy levels, local debt, out-migration Development needs: water, roads, health, education High proportion of tribal groups Poverty is high: Majority of rural people earn less than Rs1,000/month Many rural people live below poverty line
How Do Rural People Use Forests? Forests contribute to livelihoods through: Subsistence fuelwood, and fodder 40-45% 45% fodder from forest Other NTFPs: mostly subsistence uses Communities are not linked to commercial economy through forests 7-8% of household income from natural resources in Madhya Pradesh study Rs/household/year 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Field results Jharkhand, Assam Fuelwood Fodder Poles Bamboo Low range High range
What Does All This Tell Us? Forests are under pressure Most rural forest based communities are poor People rely mainly on marginal agriculture and paid labor for livelihoods Forests currently play a small role in typical rural household economy Forests are not rural people s s main priority for development but can contribute much more BUT HOW?
Use Forests As Pathway Out Of Poverty Path to improved forest livelihood and development Forest is a Safety Net in Lean Times Food and cash income in periods of unexpected food and income shortfalls Forest Supports Current Consumption Food and cash in regular, seasonal pattern each year Low market integration Forest is Pathway Out of Poverty Forest activities are maintained in economies with high market integration Forest activities form the majority of cash income in local economies Where most forest based communities in India are now Where many forest based communities in India could be
How Can We Move From This..?
To This?
JFM Is A Good Framework To Build On Command and Control Government driven: - state owns land/forests - commercial plantations - primary decision-making: - planning - management - marketing JFM Evolving partnership: - state owns land/forests - shared decision-making - shared roles but largely weighted to state - variation across states Community Forest Management Community driven: - variable land ownership - strong community use rights - communities make decisions - state monitors, regulates, guides - forests meet local needs first - often strong commercial focus JFM is slowly evolving in India towards CFM But questions over pace, scale of change, reforms And, concerns over community capacities
What Must Change To Improve Forest Livelihoods And Conservation? Four our Critical Enabling Factors: 1. More secure forest resource and management rights for communities, 2. Effective and flexible institutional models, 3. Better support systems for forest management monitoring & control, 4. Greater access to more efficient markets.
1. More Secure Forest Resource And Management Rights For Communities Where historical rights exist, recognize them in forest policy and law Where they don t t exist, look at longer-term resource right options, more efficient Map forest tenure Stronger legal basis for community-based forestry Efficient Property Rights Clarity over what the rights are for the community Duration of rights is clearly spelled out Certainty over boundaries Rights have legal standing and can be enforced Accessible and fair avenues for legal recourse
Community Forest Tenure in Other Countries China: : 30-100 year land contracts to farmers - land qualifies as loan collateral Honduras: communities enter legal contract for full forest management and production rights Senegal: : communities assigned full management and production rights Tanzania: : village council becomes land manager for designated forests
2. Effective And Flexible Institutional Models For Community-Based Forestry India needs new business models: Communities many can gradually assume more responsibilities (inventory, management, marketing, local monitoring) Forest Department gradual shift in roles to micro-plan approval, extension and advisory services, sharing applied research Private sector can support communities in planning, production, marketing State-level Associations can evolve to provide focal point for community programs, marketing, training, dialogue Capacity building and investment: Needed for communities and Forest Departments
Linking Community-Based Forestry And Rural Development Improving rural livelihoods requires integrated solutions: WB projects in Andhra Pradesh New JBIC forestry programs Focus on rural livelihoods, not just forestry development Improve government service delivery
3. Better Support Systems For Forest Management, Monitoring and Control Improved systems for resource monitoring, planning with communities Stronger capability for mapping to support planning and monitoring Management Information Systems More effective management, monitoring and control with communities Better information on production, demand forecasts, socio-economics, finances Community and forest department capacities
Some Good Progress in India DFID supported visioning and planning work in Orissa and Himachal Pradesh Bank supported inventory and management information systems in Andhra Pradesh ISRO work in Karnataka and Kerala on monitoring with forest inventory, watershed, biodiversity Bank-supported work in Jharkhand on forest livelihoods monitoring systems Operating manual for JFM in Madhya Pradesh, Watershed in Karnataka, forestry in Assam, DPIP in India
Why can t t we do this in community-based forestry? Actual thematic maps for micro-planning - Karnataka Watershed Development Project
4. Greater Access To More Marketing still dominated by Forest Department Some states use old monopoly system: highly inefficient and high transaction costs Others rely more on private sector, but still with significant forest department role Some loosening up with NTFP, but communities rarely market timber Efficient Markets
Efficient Market Access Is Critical Is this the best communities can expect from forests?
How To Achieve Better Access To More Efficient Markets? Strengthen community cooperatives, federations Gradually give communities more choice over marketing channels, for timber and non- timber products Consider reducing forest department marketing role over time Partnerships with private sector are a key to success: look at agriculture for win-win win examples
So, what are potential projections from improved forest productivity and policy reforms for communitybased forestry?
Potential Income Change With Reforms and Increased Productivity - Jharkhand 1,200,000 1,000,000 800,000 (Rs) 600,000 400,000 200,000 0 2004 2012 2020 LOW SCENARIO MODERATE SCENARIO HIGH SCENARIO
Potential National Income Change With Reforms and Increased Productivity 100000 90000 80000 Rs x million 70000 60000 50000 40000 30000 20000 10000 0 2004 2012 2020 Low Scenario Moderate Scenario High Scenario
What Is Possible? Look At Mexico In Mexico a decade ago, 256 communities formed a forest enterprise now manage forests, produce logs, lumber, fuelwood generate over US$1 million per year in state tax revenues US$ 1 million for local social programs
What About Conservation? Empowering communities with management and use rights supports conservation: Community managed conservation zone A) Community conservation in Guatemala improves forest cover B) CAMPFIRE program in Zimbabwe for community wildlife management, copied by many countries
Conclusions and Recommendations JFM is variable across states, history, scale, thrusts Progressive policies being developed by Center (e.g. Common Minimum Program), and states but Implementation slow, and uneven Forests under pressure and not reaching potential Forest communities are poor, based mainly on marginal agriculture Communities harvest low value forest products for subsistence and minor commercial sales Further reforms needed to strengthen: 1. Stronger resource & management rights for communities 2. More effective and flexible institutional models 3. Better support systems for management, monitoring & control 4. Wider access to more efficient markets
Conclusions and Recommendations Excellent potential for community-based forestry with program of state and national reforms.. and improved forest productivity Some positive experiences within India to build on but, Good domestic experiences need to be shared more widely Global experiences important to build perspective Forestry must be better integrated into rural development Further transition will require continued new thinking, new approaches, taking some risks, build capacities NEEDS TIME AND SUSTAINED INVESTMENT