ECONOMIC LIBERALISATION AND FOREST RESOURCES

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ECONOMIC LIBERALISATION AND FOREST RESOURCES

• OVERVIEW OF FOREST SECTOR
• LIBERALIZATION IN FOREST SECTOR
• ISSUES IN FOREST MANAGEMENT

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FORESTRY SECTOR IN TANZANIA

• Forests cover 37.8 per cent of the total landmass
  (33.5 million hectares).
• About 13 million hectares gazetted forest
  reserves.
• Over 80,000 hectares under plantation forestry
  management and
• about 1.6 million hectares are under water
  catchments management.
• Forests on Plantations majority state owned a
  few privately owned

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Tropical forest
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SIGNIFICANCE OF FORESTRY

• Forests maintaining the hydrological balance and
  soil protection
• Forests store carbon dioxide
• Linkages to the development of other sectors like
  tourism.
• Forests offer food and habitat for wildlife, -
  four designated World Heritage sites Kilimanjaro
  and Serengeti National Parks, the Ngorongoro
  Crater and the Selous Game Reserves (SLIDE)
• Offers resources for bee keeping
• Have unique natural ecosystems and genetic
  resources (rich in biodiversity)
• Forests provide 95 of domestic energy
  resources (SLIDE)
• Forests provide resources for food and medicine
  (NONE-TIMBER FOREST PRODUCTS)
• Forests provide construction materials in terms
  of timber, building poles, ropes, roofing
  materials etc. (SLIDE)
• Forests are sources of employment

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National Parks of Tanzania
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Sources of Energy

• Charcoal Transported

• Charcoal in a Village

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Poles ready for transportation to urban markets
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ECONOMIC LIBERALISATION MEASURES FOR THE FORESTRY
SECTOR

• Elimination of official prices and introduction
  of market-based prices
• Removal of export taxes reform export and import
  licensing system
• Rationalization of import tariff rates
• Introduction of a retention scheme that allows
  exporters to retain an increased share of their
  export proceeds to finance their imports.

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LIBERALIZATION OUTCOMES

• Growth of Export Trade - Major export products
• lamp and light fittings, mattress supports and
  articles of bedding, furniture and furniture
  parts, wooden frames for painting, casks, wooden
  barrels, cable drums in wood, packing cases,
  veneer sheets and plywood sheets, and other
  related items.
• sawn wood exports have increased by 27 per cent
  while export of wood chips and particles have
  increased by 60 per cent.
• Logging for export (SLIDE)
• Increased importation of machines forks, axes,
  hand saws, circular saws, chain saws, straight
  saws, blade saws and sawing machines. Some large
  timber companies are blamed for acquiring heavy
  machinery that destroys small trees and other
  plants in the forests.
• Increase in demand for forest products following
  liberalization in other sectors e.g.
  construction sector

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Logs
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LIBERALISATION OUTCOMES (CONTD)

• Increased environmental problems due to increased
  scale of production (better technology, growth of
  demand from other sectors e.g. construction
  industry)
• Increased competition with imported furniture,
  and rise in the price of wood due to higher
  demand.
• Adoption of production technology which uses less
  wood to produce modern products, e.g. furniture
  produced now uses more softwood, metals and
  plastics.

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LIMITATIONS

• ILLEGAL TIMBER TRADE
• Growth of uncontrolled timber harvesting
  following increasing overseas demand.
• Driven by greed and profit, some operators broke
  laws, paid minimal wages and minimal prices for
  harvested logsjust 1 of their export value.
  PhotoChinalog.docx
• The unsustainable harvesting has led to
  environmental degradation and the loss of
  commercially viable hardwoods in many areas
  (TRAFFIC) TRAFFIC -News.htm
• Need for proper regulation of the timber
  industry.
• Need for proper enforcement in the forestry sector

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Tanzania Seizes 157 Containers of Timber in Port
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FOREST MANAGEMENT ISSUES (contd)

• FOREST RESOURCES HAVE BEEN DOMINATED BY STATE
  OWNERSHIP
• CENTRAL GOVERNMENT
• LOCAL GOVERNMENT (AUTHORITIES)
• VILLAGE COMMUNITIES
• PRIVATE (FIELD TREES)
• AS FOREST RESERVES / PROTECTED
• AS PLANTATIONS 3 PRIVATE, 16 GOVT.
• AS OPEN FORESTS

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FOREST MANAGEMENT ISSUES

• The parastatals in forestry have been inefficient
  in terms of productivity and marketing of their
  products and are in the process of privatization,
  or liquidation.
• FORESTS RESERVES UNDER CENTRAL GOVERNMENT OFTEN
  FACE SHORTAGE OFF PERSONNEL, TOP DOWN MANAGEMENT,
  LACK OF COMMUNITY PARTICIPATION (OFTEN OPEN
  ACCESS RESOURCES)
• LOCAL COMMUNITIES DENIED ACCESS AND BENEFITS FROM
  FORESTS POOR MANAGEMENT, LACK OF COOPERATION
  FROM LOCAL COMMUNITIES IN MANAGEMENT (FIRES,
  CONTROL OF ILLEGAL TRADE CORRUPTION)

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FOREST MANAGEMENT ISSUES

• FOREST MANAGEMENT REFORMS
• ALLOW PRIVATE SECTOR, LOCAL COMMUNITIES TO OWN
  FOREST RESOURCES
• FOREST CONCESSIONS TO PRIVATE COMPANY e.g. KVTC
• GIVE MANAGEMENT RIGHTS TO PRIVATE COMPANY
• ENHANCE LOCAL COMMUNITY PARTICIPATION IN FOREST
  MANAGEMENT
• IMPROVE REGULATIONS AND ENFORCEMENT
• NB MOST FOREST WILL REMAIN STATE PROPERTY

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Joint Forest Management (JFM)

• Collaborative management approach,
• Forest management responsibility and returns
  SHARED BETWEEN forest owner (central or local
  government) and forest adjacent communities.
• For National Forest Reserves (NFRs) (for
  catchment, mangrove or production purposes) and
  Local Government Forest Reserves (LGFRs) or
  Private Forest Reserves (PFRs).
• Involves signing of a Joint Management Agreement
  (JMA) between village representatives and
  government

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Community Based Forest Management (CBFM)

• For forests on "village land (Village Land Act
  (1999))
• Managed by the village council
• Villagers take full ownership and management
  responsibility
• Involves legal transfer of rights and
  responsibilities to village government,
• Villagers have the right to harvest timber and
  forest products, collect and retain forest
  royalties, undertake patrols and are not obliged
  to share their royalties with either central or
  local government.
• The goal is to progressively bring large areas of
  unprotected woodlands and forests under village
  management and protection.

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Sector Policy on Private sector

• Encouraged to participate in the sector.
• Privatization of parastatals / change management
• Greater involvement in the harvesting, marketing
  and processing of forest products.
• Create enabling environment and regulatory
  framework for the private sector involvement in
  forestry through secured raw material
  procurement, training, research, and transfer of
  technology.
• Promote incentives and credit facilities for
  investments

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Sector Policy on Private sector

• Ensure clear ownership and tenure rights,
  improved access to markets
• Facilitate Cooperation between forestry
  administration and private sector associations
• Provide Reliable information to private
  industries on forest resource base and investment
  opportunities
• Ensure an enabling regulatory framework for
  private investment - appropriate lease and
  concession arrangements.
• Establishment of joint ventures with the private
  sector
• Promote Credit systems and other financing
  mechanisms for forest industries.
• Facilitate training and transfer of technology.

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Some Observations

• No emphasis on private planting of trees on large
  scale basis
• Greater effort is made on managing and
  exploitation of existing forests.
• As long as exploitation of natural forests
  exists, private development of forests and forest
  products is not attractive.
• Forestry resources development require long term
  investment, may not be attractive to private
  investors