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PAPUA
NEW GUINEA RAINFOREST CAMPAIGN NEWS
Sustaining
Papua New Guinea's Natural Heritage-National Forest Plan Critique
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Forest
Networking a Project of Ecological Enterprises
http://forests.org/
10/12/98
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RELAYED
TEXT STARTS HERE:
SUSTAINING
PAPUA
NEW
GUINEA'S NATURAL
HERITAGE
an
analysis of the papua new guinea
national
forest plan
Advance
Copy - Do Not Quote
DRAFT
8/98
WORLD
WIDE FUND FOR NATURE
GREENPEACE
PACIFIC
Contributing
Authors:
Frans
Arentz
Brian
Brunton
Andre
Carothers
Lafcadio
Cortesi
Hartmut
Holzknecht
Christopher
LaFranchi
CONTENTS
I. EXECUTIVE SUMMARY
1.1 Areas of Concern
1.2 Short-term and Long-Term Recommendations
II. INTRODUCTION
2.1 Overview
2.2 History of the Forest Sector
III.
THE NATIONAL FOREST PLAN AND PNG LAW
3.1 Legal Dilemmas
3.2 Conclusion
IV. THE
NATIONAL FOREST PLAN AND PNG'S CUSTOMARY RESOURCE OWNERS
4.1 Overview
4.2 Ambitious Legislation
4.3 The Reality of Customary Ownership
4.4 Conclusion
V. THE NATIONAL FOREST PLAN AND FORESTRY IN PNG
5.1 Overview
5.2 Ensuring Future Harvests
5.3 The Role of the Government
5.4 Conclusion
VI. THE
NATIONAL FOREST PLAN AND PNG'S BIODIVERSITY
6.1 Overview
6.2 Ensuring Set-asides
6.3 Conclusion
VII.
THE NATIONAL FOREST PLAN AND THE PNG ECONOMY
7.1 Overview
7.2 The Economics of Forests
7.3 Incentives for Industry
7.4 Assessing Cutting Levels
7.5 The Raw Log Ban and Value-Added Processing
7.6 Small-scale Enterprises
7.7 Conclusion
7.8 Ensuring Rural Livelihoods
I) EXECUTIVE SUMMARY:
One of
the goals of Papua New Guinea's National Constitution is to ensure
that
the country's natural resources are "conserved and used for the
collective
benefit of all, and replenished for future generations". The
experience
of the last quarter-century suggests that the manner in which
successive
PNG governments have managed the country's natural wealth,
particularly
its forest resources, has fallen short of that mandate.
In the
early 90's, the government undertook a major forestry reform program
under
the auspices of the National Forest Conservation and Action Program
(NFCAP)
to address forest management problems in PNG. The international
community;
bilateral, multilateral and the NGO community played a major role
in
supporting the government initiative by providing financial and technical
assistance.
As part of this reform effort, a new forestry Act and Forest
Policy
was developed, and the PNG Forest Authority (PNGFA) was reconstituted
and
given the mission "to promote the management and wise utilization of
the
forest resources of Papua New Guinea as a renewable asset for the well-
being
of present and future generations." As part of its new mandate, the
PNGFA
was charged in the 1991 Forestry Act with producing "a detailed
statement
of how the national and provincial governments intend to manage and
utilize
the country's forest resources." In response to this law, the PNGFA
released
the National Forest Plan (the Plan) in June of 1996.
Before
its endorsement by the National Forest Board and subsequently by the
National
Executive Council, the Plan was not widely circulated for review and
comment
by relevant agencies, interested individuals and organizations and
the
public at large. In addition, the Provincial Forest Management Committees
were
not given sufficient time to comment on the Plan. These circumstances
have
left the impression that the development of the Plan was largely a "top
down"
exercise with little input by the landholders of Papua New Guinea.
As non
government organizations (NGOs) concerned with the sustainable
utilization
and conservation of forests in PNG, the WWF Pacific and
Greenpeace
Pacific have endeavored to review the Plan and with this report,
offer
an analysis its implications for the people and environment of PNG.
The
report explores the social, economic and environmental implications of
the
Plan and suggests options for a revised approach that could help the PNG
government
fulfill its Constitutional mandate of ensuring that the nation's
natural
resources are managed in a sustainable and equitable manner. The
report
concludes that industrial logging as currently practiced in PNG and as
proposed
in the Plan is not an environmentally or economically sustainable
development
option in the long term.
The
report argues that the purported benefits of industrial logging, in the
form of
infrastructure development, job training, national revenue and
technology
transfer, are overblown and, in fact, outweighed by the cost to
the
ecological and social integrity of the country. It recommends a
realignment
of the government's role in development planning, and a rapid
transition
to other forms of resource use that can better provide such
benefits
over the long term, while, at the same time, fulfill the nation's
economic,
environmental and social goals.
1.1)
Areas of Concern in the National Forest Plan
The
National Forest Plan falls short of the mandate of the PNGFA because it:
a) Portrays PNG's forest resource, or some 70%
of the country's land area,
solely
in terms of its potential for industrial logging. As a result, no
consideration
is given to existing and potential alternative development
opportunities
in the forest, particularly those uses which would provide
economic
and other benefits at a lower environmental and social cost than
industrial
logging. The immediate and future costs of this approach are
detailed
in the body of this report.
b) Suggests allocating the nation's forest
resource to industrial logging
prior
to any agreement with resource owners, ignoring the Constitutional
reality
of customary ownership of PNG's natural resources. While the
intention
to "acquire" rights to forest resources is reiterated in the Plan,
its
designation of forest areas and projections for timber production in
areas
where local communities have yet to articulate their own management
preferences,
undermines the reality of customary ownership, and, in many
cases,
precludes the consideration of other options.
c) Does not incorporate existing conservation
areas or landowner petitions
for
development options other than industrial logging. There is a persistent
lack of
governmental capacity to process and assist in the establishment and
implementation
of community requests for development alternatives or
conservation
initiatives such as Integrated Conservation and Development
Areas
or Wildlife Management Areas. As a result, there is an emphasis in the
allocation
of governmental assistance toward unsustainable, short-term uses
of the
forest.
d) Ignores the analysis of the Conservation
Needs Assessment and the GEF-
sponsored
BIORAP process, which identify areas of primary biological
importance.
These analyses of PNG's ecological conditions should be included
in any
land-use planning exercise, as they represent a significant asset to
the
country that is incompatible with industrial logging.
e) Underestimates the effects of industrial
logging on the sensitive and
complex
forest ecosystems found in PNG. The negative silvicultural impact of
industrial
logging on PNG's forests, partly documented in this report, draws
into
question the basis for asserting levels of cut and regrowth that form
the
basis of the Plan's projections. The 35-year cutting cycle used to make
these
projections does not reflect the latest scientific consensus on forest
management
and regrowth.
f) Does not comply with the Forestry Act. The
requirements of the Act are
that
the Plan "be consistent with the National Forest Policy and relevant
government
policies." In presenting an unsustainable management regime for
PNG's
forests, the Plan clearly violates the Fourth Goal of the Constitution
and the
goals of the National Forest Policy (i.e. "protection of the nation's
forest
resources as a renewable natural asset"). In addition, the Plan has
been
altered between first and second printings, despite the legal
requirement
that the Plan be approved by Parliament.
1.2)
Short and Long-Term Recommendations
The
report's recommendations are based on the fact that the landholding
communities
are the owners of the country's natural resources and are
recognized
as such in the National Constitution. Therefore, the sustainable
development
and management of natural resources must begin with the informed
decisions
of these communities, and then proceed based on their capacity to
effectively
manage and implement those decisions. It suggests that the most
appropriate
role for government is as facilitator of the educational, legal,
scientific
and procedural components of the process that develops the
capacity
of communities to perform this function.
The
report also highlights the need for a comprehensive analysis of the
natural
and human resource context in any area of the country prior to
suggesting
allocation of areas for industrial
logging. Without this it is
impossible
to adequately consider the range of management options available
in a
particular area.
The
report makes two sets of recommendations. The first set is considered
"short-term"
and can be implemented now by existing agencies. If followed,
they
would help rectify some long-standing problems in the agencies that
administer
PNG's natural resources, and would put "on hold" some processes
that would
benefit from examination and reform. In addition, they would bring
the
forest sector up to basic scientific and industrial standards. Finally,
they
would refocus current provincial and national level planning toward
delineating
those areas where industrial logging should not take place based
on
existing laws, regulations and provincial/national interests (e.g.
protecting
watersheds or biological values). This approach avoids the
presumption
that government should dictate what happens in a particular area,
and
instead acknowledges the fundamental right of PNG's resource owners to
manage
their resources as they see fit, so long as their decisions are within
the
bounds of the law.
Short
term Recommendations:
1) Withdraw the existing National Forest Plan,
and begin the process for a
revised
approach to forest planning, as outlined in the long-term
recommendations.
2) Redraw existing maps to identify areas where
industrial logging would be
inappropriate
in terms of biodiversity and/or the sensitivity of the
landscape
(karst substrate, steep slopes, etcetera), the Logging Code of
Practice,
community requests for alternative uses and other relevant factors,
using
the CNA, PNGRIS and BIORAP data, with additional field studies as
appropriate.
3) Impose a moratorium on new Forest Management
Agreements and extensions of
existing
agreements, until the capacity to manage PNG's natural resources
effectively
is developed (as outlined in this report's long-term
recommendations);
4) Develop new standards for socially
responsible and environmentally
sustainable
forestry which will apply to all logging plans and which are
consistent
with internationally recognized principles for independent,
performance-based
certification;
5) Ensure compliance of existing concessions
with the Logging Code of
Practice
and existing calculations of sustainability. In particular,
permitted
harvest rates must be reduced in regions, such as the Gulf and
Western
Provinces, and East and West New Britain, where they exceed what can
be
sustained even under the existing 35-year cycle;
6) Process the backlog of community based
applications for Conservation
Areas
or Wildlife Management Areas and alter
existing maps to include
approved
protected areas.
7) Establish an independent, third-party
forestry operations inspection
capacity
designed to ensure that industrial logging operations are complying
with
PNG law and the new standards for socially responsible and
environmentally
sustainable forestry. Rank and make public the environmental
and
social performance of industrial logging companies in order to assist in
decision-making
regarding requests for logging concessions.
8) Where industrial logging is the landholders'
chosen development option,
the
government should ensure that it meets new forest management standards
(rec.
#4) and try to encourage higher bidding, greater extraction efficiency
and
better compliance with laws and regulations, by fostering a more
competitive
atmosphere for logging concessions, perhaps through auctioning
harvest
concessions in association with the communities which choose the
industrial
logging option. The PNGFA should consider taking full advantage of
the
option to require performance bonds guaranteed by a third party. The
PNGFA
should also investigate opportunities to increase competition within
the
industry.
Long-Term
Recommendations:
These
long-term objectives require a more fundamental change in how the
forests
are being managed. The Report finds that sustainable management of
PNG's
natural resources depends in large part on the government's ability to:
1) Coordinate resource-related activities in
PNG;
2) Coordinate the definition and mapping of
appropriate uses for PNG's
natural
resources;
3) Facilitate the analysis and articulation of
development options by
stakeholders
particularly at the community, and occasionally at the
provincial
and national level;
4) Coordinate the establishment of venues or
processes in which such options
can be
discussed, disputes can be resolved and agreements can be achieved;
5) Promulgate and ensure the enforcement of
effective regulations governing
resource
extraction (such as new standards for socially responsible and
environmentally
sustainable forestry), the accurate identification of
landowners,
and the protection of sensitive areas.
For
PNG's resource-owning communities, the sustainable management of their
natural
resources depends on their ability to:
1) Successfully identify and evaluate
development options, including
identifying
and accessing markets for products, evaluating and entering into
effective,
enforceable agreements, and
2) Successfully implement and manage those
decisions, including monitoring
the
performance of contractors, enforcing regulations where appropriate,
managing
conservation areas, and ;
3) Secure financing for those options which do
not necessarily offer
immediate
material benefits, but are consistent with determinations of areas
of high
biological interest and/or other national, provincial or local goals.
Increased
government support for landowners to perform these functions is
thus a
fundamental component of this reform. This support could be provided
at the
district and provincial level as part of the reforms under the
"Organic
Law," and it could be instituted at the national level as
appropriate.
Wherever
this capability is administered from, it will be most effective if
it can:
a) use, to the degree possible, contemporary
methodologies for integrating
economic
and environmental accounting to reflect non-timber land values
("ecosystem
services");
b) include the variations in PNG's terrestrial
ecology, and the impact of
each
development option on that particular ecosystem, to inform negotiations
determining
appropriate land uses;
c) identify areas which are essential for
maintaining local ecosystem
services,
representative viable ecosystems and areas of greatest
biodiversity,
using information contained in studies such as the CNA, PINGRIS
and the
GEF-sponsored BIORAP analysis;
d) include an effective and comprehensive
representative landowner
identification
process, such as an upgraded and modified Incorporated Land
Group
process;
This
set of criteria will require a government structure which balances
provincial
and national authority with effective delegation of powers and
responsibilities
to communities. One way to implement this structure could be
through
a comprehensive legal, environmental and commercial "extension
service"
or "development options service." Management of the service could be
done by
government while the on the ground work could be done by inter-
disciplinary
teams drawn from pools of qualified persons hired on a contract
basis.
These extension teams could be organized and managed by independent
firms
or NGOs responding to tenders developed and managed by government, and
serve
two separate functions:
a) to help communities determine, through an
analysis of options, the most
beneficial
uses of their natural resources. This process should align with
the
determination made at the national level of areas of biological
importance.
Such consultations and information exchange would occur prior to
designation
of a given area for any particular land-use. This support
capacity
would include legal, forestry, education, organizing, business and
other
expertise which would work with resource owners to identify and
assess
their development options in accordance with the national-level
resource
utilization planning process;
b) to assist communities, after the appropriate
use and the resulting level
of
government support are determined, to establish the land use options they
have
chosen. This function could include the capacity to train community
members
to establish their own businesses, manage conservation areas or
monitor
and enforce agreements and extraction practices according to local
needs
and national law. In addition, the function of monitoring the
environmental
performance of contractors can and should be placed in the
hands
of landowners.
Without
financial support, however, the process outlined above will remain
biased
in favor of less sustainable options. In order for national goals for
socially
responsible and environmentally sustainable development to be
attained,
assistance will have to be provided as a priority to communities
which
have chosen more environmentally benign and socially beneficial land
use
options. Therefore, a substantial fund should be established to finance
the
investigation and establishment of ecosystem-based and community-based
uses of
the forest, including tourism, small scale agriculture, the
production
of non-timber forest products, and Conservation and Wildlife
Management
Areas.
II. INTRODUCTION
2.1 Overview
Papua
New Guinea is blessed with great wealth in natural resources, preserved
over
the millennia in part because of the country's vast and mountainous
terrain,
and in part because of the long history of community land tenure.
The
country is now embarked on the road to development. This path has in part
taken
the form of exploitation of the country's natural resources to promote
economic
growth. The question that faces Papua New Guinea as it enters the
21st
century is how to successfully take advantage of the country's natural
wealth
without compromising the long-term health of the nation's communities
and
environment. If care is not taken, the country may make the mistake of
sacrificing
the natural wealth of a nation for short-term economic return and
the
enrichment of a few.
Papua
New Guinea is at a critical juncture in its history. Some natural
resources,
particularly large tracts of forests, are rapidly disappearing
from
the face of the earth. PNG's forest wealth is enormous, thanks to its
size
and the slower pace of exploitation. But the demand for wood products is
uneven
and subject to considerable price fluctuations and trends that are
difficult
to predict. This places the country at the mercy of volatile
international
demand and structural changes in the timber industry.
Sustainable
stewardship of this natural wealth can offer the greatest long-
term
benefits for all Papua New Guineans. But this approach requires an
immediate
and sustained investment of resources and political will in order
to
ensure the perpetual stream of benefits that a well-managed renewable
resource
can provide. At the moment, due in part to the setbacks to many of
the
Asian economies, the demand for Papua New Guinea logs is at its lowest in
a
decade, presenting PNG with the opportunity to evaluate other courses of
action
regarding its natural wealth.
2.2
History of the Forest Sector
Ten
years ago, Papua New Guinea began a comprehensive reform of its forest
sector.
The Commission of Inquiry into the Papua New Guinea Forest Sector,
under
Justice Barnett, was set up in 1987. The inquiry found widespread
corruption
and mismanagement in the logging industry, including transfer
pricing
and under-reporting of log volumes (which dramatically reduce
government
revenues), environmental destruction through poor logging
practices,
inadequate inspection and monitoring procedures, the flagrant
breach
of agreements and contracts, and graft and collusion among industry
and
government officials. In addition, a wholly inadequate proportion of
logging
revenue was reaching the resource owners. It was clear that the
nation
had no clear national forest policy or plan, nor sufficient
understanding
of the resource base, to ensure a balanced approach to resource
use.
The
Barnett Report, along with subsequent efforts to examine the industry
through
the government of PNG's participation in the Tropical Forestry Action
Plan,
led to significant changes in the government's natural resource
policies.
A review of the forest sector was performed by the Government in
1989,
with the technical assistance of the World Bank, and the report
presented
in April 1990. In early 1991, it was broadened into the National
Forestry
and Conservation Action Programme (NFCAP).
Out of
this process emerged a White Paper on National Forest Policy which was
approved
by the PNG National Executive Council in 1991. The Paper called for
a
reinvigorated forest authority as the institutional mechanism for achieving
the
goals of increased sustainability of extraction and more equitable
distribution
of income. The National Forestry Act was passed in October of
1991.
This legislation established the PNG Forest Authority (PNGFA) under the
direction
of a National Forest Board.
The
newly-constituted PNGFA drafted a paper, the National Forestry
Development
Guidelines, which was approved by the National Executive Council
in
1993. Since then, the PNGFA has written a Logging Code of Practice,
beginning
with "Key Standards" published in 1995, which establishes standards
for
sustained yield logging techniques. These two documents form the basis of
government
forest policy, and are discussed together in this critique.
Taken
together, these reforms were designed to address the problems raised in
the
Barnett Report and other reviews of the sector. The six critical
components
of reform, for the sustainability of
PNG's forest resources, are:
a) the creation of a National Forest Board,
consisting of representatives
from
the National Forest Service, the Forest Industries Association, the
National
Alliance of NGOs, and the Secretaries of the Department of Personnel
Management
and the Department of Environment and Conservation. The new
structure
was intended to depoliticize and depersonalize the granting of
concessions
and create an open and accountable process for negotiating with
the
industry;
b) the creation of the Forest Management
Agreement, a formal process which
includes,
among other things, a "resource owner awareness" component
(designed
to increase local understanding of rights and options regarding
development
of resources). The FMA process, in conjunction with other aspects
of the
reform, was intended to ensure the adherence, by all parties, to
agreements
that allowed for the sustainable extraction of timber and the
equitable
and timely distribution of revenue to both resource owners and the
federal
government;
c) the establishment of the Incorporated Land
Group as the legislated
configuration
of community resource owners, with the accurate identification
of that
entity as the cornerstone of an effective legal prerequisite to
successful
community resource management.
d) the logging code of practice, designed to
regulate and reduce the impact
of
logging activities on the environment;
e) the recrafted revenue system, designed to
increase income to both
resource
owners and the government, and also to ensure that the risks
associated
with price fluctuations are shifted more to the industry, while
permitting
resource owners and the government to share in income from
international
log price increases;
f) the creation of Provincial Forest Management
Boards, and the subsequent
drafting
of Provincial Forest Plans, to be collected and published as a
National
Forest Plan.
This
final component, the National Forest Plan, was intended to provide a
blueprint
for the sustainable management of PNG's forests. The mandate of the
committee
charged with creating the plan was to establish a methodology for
the
development of Provincial Forest plans, to help the Provinces identify
and
analyze the forest resource in a manner which would facilitate rational
planning
that the sustainable development of the resource, and to coordinate
and
incorporate those Provincial plans into a comprehensive national plan.
According
to Ruth Teria of the PNGFA, the PNG Logging Code of Practice and
the
National Forest Plan are intended to "set this nation on the road to
responsible
and sustainable forest development and management." This report
finds
the Plan flawed both in the process thorough which it was developed,
and in
the scope and type of management it sets out for PNG's forests. This
report
makes recommendations that may assist in reaching the original goals
and
policies set forth in the Act.
III. THE NATIONAL FOREST PLAN: LEGAL IMPLICATIONS
(draft)
3.1
Overview
Unlike
almost all other countries, the government of PNG recognizes that
local
people, based on undocumented customary property rights, own some 97
percent
of PNG's land area, including all forests. This enduring principle
pervades
all aspects of the country's political, legal and social structures.
Papua
New Guinea has an impressive and comprehensive system of laws and
regulations
governing the environment and natural resource extraction. It is
also
widely recognized, however, that the capacity and inclination of the
state
to implement and enforce this collection of laws is uneven at best. As
James
Fingleton points out, (1992) "Having the right laws on the books and
seeing
them implemented can be.two quite different matters."
The
history of PNG's natural resource legal structure, derived from the
Australian
land and resource management philosophy, is incompatible in
significant
ways with customary land ownership. PNG recognizes three levels
of
legal obligation: legislated, contract and traditional law. In the case of
natural
resources, the three levels are poorly integrated. These two facts-
the
poor record of enforcement and the tension between these competing legal
orientations-has
allowed a destructive form of development to emerge and has
often
strained the relationship between resource owners and the government.
"Indeed,"
as Kathy Whimp (1997) points out, "the history of state
intervention
in PNG may give many resource owners cause to doubt whether the
state
is really acting in their interests."
3.2 The
Legal Dilemmas of the National Forest Plan
Some of
the legal tensions created by this history have emerged in the
context
of the creation of the National Forest Plan. The responsibility for
drawing
up a National Forest Plan, as stated in section 47 of the National
Forestry
Act, rests with the PNG Forest Authority. The statutory objectives,
set out
in Section 6, include the primary mandate that the forest resources
be
managed "to conserve and renew them as an asset for succeeding
generations."
It is
clear from that broad mandate that the National Forest Plan must
reflect
a commitment to sustainability, both environmentally, and in terms of
sustained
yield, of the forest resource. The sustainability of the current
forest
management regime rests primarily on the size, rate of harvest and the
pace of
concessions being granted (and in turn the lawful cutting cycle), and
the
forest extraction practices employed.
In
fact, as noted in the forestry section of this report, the cutting
practices
of the industries operating in PNG are not adequately monitored,
falling
far below international standards and often in violation of the
existing
PNG laws and regulations governing forest practices. Moreover, as
PNG's
Department of Environment and Conservation notes in a recent
publication
(Petasi, Saulei and Parsons, DEC/UNDP, Waigani, PNG, 1997), the
35-year
cutting cycle is likely to be fundamentally incompatible with the
goal of
sustainability, either economically or environmentally, as the
regeneration
cycle of high-value hardwoods is likely to be as much as twice
the
mandated period, or from 70 to 200 years. Finally, some of the
concessions
already granted, particularly in East and West New Britain add up
to a
pace of cutting that exceeds even the PNGFA's calculation of
"sustainable"
exploitation. It would seem, then, that according to the
requirements
of the Act, the country's own forest practices guidelines, and
the PNG
Constitution, industrial logging as it is practiced in PNG is on
shaky
legal ground.
The
statutory requirement for the plan merged from an understanding that
forest
concessions were being granted in the absence of a national level
framework
for understanding the potential, and the limits, of the nation's
forest
resource. As the law is written, the existence of a National Forest
Plan is
a prerequisite to the development of PNG's forest resource. The Plan
itself
must take account of the provincial forest plans (47(1)) which cannot
be at
variance with the National Forest Development Guidelines. ("In
conformity
with" Section 49(1)). And the NFP must be tabled in Parliament.
The
original NFP planning body, consisting of government officials, NGOs and
consultants,
was organized inside the PNGFA in 1993 and began a deliberative
process
that was attempting to resolve various ambiguities in the
interpretation
of the law, and questions relating to the calculation of
sustainability
and appropriate levels of cut. It also set about informing
Provincial
governments and other ministries about their opportunities
and
obligations, a process that took over a year. This group was disbanded
abruptly
by Forestry Minister Andrew Baing in 1995 and the managing director
dismissed,
after which a new "task force" was set up outside the PNGFA, which
combined
the rudimentary Provincial Forest Plans into the current NFP.
This
National Forest Plan, dated May 1996, has been subsequently changed. The
new
plan contains substantial modifications to the map of the Western
Province
and other, not insignificant modifications to the map of the East
Sepik
Province. The alterations to the map of the Western Province are
additions
of eight concessions known as "a-h Fly-Strickland". These
concessions
are marked as "potential areas for future development" on
the
amended Western Province map, and as "projects likely to be
developed" on
MAP 2.
There is no mention of these additional projects in the appropriate
appendices.
Nor is it clear whether the revised plan was tabled in
Parliament.
Therefore, the legal status of the current plan is unsure, and
actions
based on the plan may be open to court challenges.
In
addition, there are several concessions that were granted in the period
when
the plan was being developed, all of which may be in legal jeopardy. For
the
example, timber permits were allocated to the Prime Group in 1995 and in
the
Morobe Province before either the Gulf Province Plan or the National
Forest
Plan were published.
3.3
Conclusion
It is
clear that the NFP as written not only violates the spirit and letter
of its
formal objectives, but it exposes the government to legal action. To
summarize,
the Plan may be in violation of PNG's Constitutional requirement
for the
"sustainable" use of the nation's resource. Particular concessions
may
have been issued, and alterations in existing concessions may have been
made
without proper Parliamentary approval. And the disbanding of the first
commission
designated to fashion the Plan, and the subsequent formulation of
a
"task force" outside the PNGFA to complete the effort, may offer
legal
support
for challenges to any concessions granted since 1995.
As the
sophistication of resource owners increases, the likelihood that the
government
will find itself in legal confrontations increases. To make the
current
regime legal, the government should consider renegotiating existing
concessions
to bring them into conformity with the latest understanding
regarding
economic and environmental sustainability. In particular, those
regions
where concessions already granted exceed even the current calculation
of
sustainability, such as East and West New Britain and New Ireland, should
be
renegotiated.
The
Constitutional mandate for "sustainability" in the sector suggests
that
the
government should redouble its effort to review the cutting cycle and
other
forestry practices and to bring them into conformity with the latest
scientific
understanding of tropical forests. In addition, the capacity to
plan
and monitor concession cutting regimes at the level of the individual
coup is
necessary to ensure sustainability.
Finally,
the NFP would improve and gain credibility as a document if it was
embedded
in a larger multi-stakeholder, integrated land use planning process
that
uses the Provincial Organic Law to function at the local, provincial and
national
level. Such a planning process would conform to the requirements of
the PNG
Constitution by focusing on the fact of traditional resource
ownership
and create conditions for land use options to emerge from
landholders.
Based on national law and common interests, it would establish
the
parameters for what should not take place in an area, rather that
dictating
what should happen there. It would also take into account the
resource
rights of future generations. In areas where forests are managed for
timber
production, it would ensure the sustainability of the resource by
reflecting
the latest scientific knowledge on forest health and regeneration,
and it
would include the capacity to enforce logging regulations and plan
logging
at the level of the coupe.
IV. THE
NATIONAL FOREST PLAN AND PNG'S CUSTOMARY RESOURCE OWNERS
4.1
Overview
The
negative impacts of the last few decades of industrial forestry on PNG's
traditional
communities is well-documented. Among the most obvious effects
are
those associated with poor logging practices, such as stream and river
contamination,
the diminished capacity of the forest to deliver important
non-timber
services (such as building materials, rotating agricultural plots,
plants
and animals for food and medicine), the destruction of sites of
cultural
importance, and the diminished capability of the forest to provide
sound
economic alternatives to industrial logging.
In
addition, these same reports underscore the corrosive effects of
industrial
logging on the social structure of traditional communities.
Unequal
or inadequate compensation, poorly constituted resource owner groups,
poorly
crafted logging contracts, and the chronic failure of contractors to
provide
promised infrastructure services are among the many factors that have
contributed
to the disintegration of traditional forms of community. Coupled
with
the damage to the environment, these social impacts have resulted in
increased
poverty and lawlessness, alienation of the young, migration to
towns
and cities and the failure of traditional forms of social control and
economic
livelihood.
In
particular, industrial logging directly and indirectly affects the lives
of
women, who already are responsible for a large portion of the labor that
provides
for the daily sustenance of rural families. The negative impacts
associated
with forest management regimes that take men away from the home
(for
example, to take temporary jobs at logging camps), and that damage
streams
and reduce the availability of non-timber forest products fall
disproportionately
upon women. Rural communities are exposed to alcohol
consumption,
gambling and other socially destructive habits through the
presence
of logging camps.
As a
result, the stability and predictability of indigenous peoples' lives is
severely
diminished. They lose control over the use of their land, food,
environment-indeed
their entire livelihood. In many cases the timber industry
has
made life harder for resource owners at all levels. Not only do they have
to face
destruction of their environment, but they face the destruction of
their
society.
The
forest sector reforms that slowly have been implemented during the 1990s
were
intended to solve these problems. The Forest Management Agreement
process
was designed to help establish the appropriate resource owner group,
and
help resource owners gain an understanding of the implications of various
development
plans through the Development Options Study, and then monitor and
ensure
their sustainability. Various mechanisms to increase institutional
capacity,
such as the AUSAID-funded program to train and place forest service
personnel
in provincial offices, and the capacity-building program at the
Department
of Environment and Conservation, were designed to increase the
government's
capacity to oversee logging operations.
The
production of a National Forest Plan is intended to further these aims by
providing
a national planning framework for utilization of PNG's forest
resource,
and by outlining government research programs and development
efforts.
Included in the Plan is funding for improved forest resource
research
and data collection, rural employment promotion through sound forest
management
and plantation development, support for increased wood processing
and
small sawmill operations, as well as opportunities for public education,
such as
resource owner awareness workshops.
4.2 A Failed
Effort
According
to the National Forest Plan ("Specific Objectives", section 2.2),
the PNG
Forest Authority (PNGFA) intends "to acquire and maintain management
rights
for PNG's commercial forest resources" and by doing so "to
effectively
control
and monitor harvesting and export operations," primarily through
Forest
Management Agreements struck with Incorporated Land Groups, "to ensure
the
sustainability of the resource."
These
objectives remain unrealized. Although only a few years have passed
since
the restructuring of PNG's agencies and laws that govern forest
resources,
the program represented by this plan has proven difficult to
accomplish.
This is perhaps not surprising, as the PNG Forest Authority has
been
burdened with a considerable mandate: to acquire secure and long-lived
exploitation
rights to the satisfaction of both resource owners and
extractive
industries while simultaneously overseeing the formation of land
groups
and the contracts between resource owners and private companies. It
must
also analyze the resource base, enforce forestry laws, conduct research
into
economic alternatives, assist in establishing conservation areas,
monitor
revenue from logging, and protect the environment.
Perhaps
the most significant change in forestry law, in terms of the social
structure
of PNG's customary resource owners, is the effort to reform the
methods
used to secure resource owner agreement with logging industry
representatives.
The 1991 Forestry Act (as amended) sets out two methods of
encouraging
the participation of resource owners: through a process involving
the
incorporation of land groups (Incorporated Land Groups, or ILGs, using
the
1974 Land Groups Incorporation Act) or by gaining the approval of at
least
75% of resource owners resident in the resource area.
The ILG
process was included in the 1992 Forestry Act Amendments as the
recommended
approach to involving resource owners because, if properly
managed,
it can solve many of the problems listed above. Ideally, an ILG is
generated
and managed by the resource owners themselves, with assistance from
a
trained facilitator. It sets in place the minimum procedural requirements
for a
customary resource group to be recognized under modern law as a 'land
group'.
These include rigorous consultation, decision-making and decision-
recording
processes, concluding with the delegation of signing authority to
designated
members of the community.
In
practice, unfortunately, the process has been plagued with damaging
shortcuts
and occasional misconduct. As in the past, the most common approach
has
been for logging companies, often in collaboration with forestry
officials
or provincial forest boards, to contract with a small number of
individuals
who claim to be representative of local resource owners. Either
company
representatives or foresters (or both) identify relevant customary
resource
groups (usually clans) and put together the documentation required
to set
up Incorporated Land Groups or to determine, as required by law, that
75
percent of the customary resource owners support the agreement. This
process
is rarely successfully carried through, and the same problems that
plagued
pre-1991 agreements between landowners and foreign logging companies
persist
today.
Part of
the problem, again, is the difficult mandate of the PNGFA, which
includes
acting as supervisor of the ILG process, enforcer of legal
procedures,
and monitor and enforcer of forestry regulations. One of the
difficulties
that faces the often understaffed and poorly trained field
offices
is the fact that they remain heavily dependent on logging companies
for
transport, housing, supplies and other support in the field. Forestry
officials
in the field are subject to inducements and overwhelming pressure
to
overlook improper practices and coercive arrangements. The current PNGFA
policy
of placing two project supervisors with each logging project has been
fulfilled
in only a small number of projects.
These
processes also result in little security to contractors, whose
investments
are often threatened by the community backlash against the
environmental
destruction and unequal distribution of benefits that follows.
As a
result, the industry continues to opt for the crudest "cut and run"
operating
regime rather than risk a significant investment of finances or
time in
any particular forestry project.
At the
same time, the implementation of the new legal structure remains
incomplete,
largely because of industry pressure on the PNG government.
Although
passed by Parliament, regulations and standards for logging
practices,
which could help preserve PNG's forests, are not being put into
practice.
The requirement that organizations representing customary resource
owners
register themselves with the Forest Authority has likewise been
delayed.
This regulation, which would provide the government with details
of the
memberships, shareholders, structure, and other important information
relating
to the current so-called "landowner companies" has been opposed by
both
the industry and by the PNG Forest Resource Owners Associations (which
is
allied with the industry) and heavy lobbying has ensured the current
suspension
of this requirement.
PNG's
national forest policy, and the NFP developed from it, both share the
major
weakness of focusing on just one major aspect of the forestry sector-
that of
large-scale industrial logging operations. While large-scale
operations
managed by highly capitalized foreign entities are able to extract
logs at
a low cost, they are, as we have seen, burdened by considerable
unaccounted
costs to forest dwellers and the environment. Most importantly,
from an
economic and social perspective, the National Forest Plan's exclusive
focus
on industrial operations does not take into account the potential for
small-scale,
more environmentally sustainable forestry options. Much work has
been
done to investigate the potential of wokabaut sawmills and other
economic
uses of the forest such as non-timber forest products and
ecotourism-uses
that could both preserve regional economic potential and
social
structures as well the environment. Yet nowhere in the NFP is there an
analysis,
or even acknowledgment of, the potential for land uses other than
industrial
forestry.
4.3 The
Reality of Customary Ownership
The
main flaw in the National Forest Plan, however, is its lack of
acknowledgment
of the reality of PNG's land tenure: that the ownership, use,
management
and control of forestry resources rest by law in the hands of the
country's
traditional communities. While the Plan asserts that more than 3
million
hectares of PNG forests are currently available for timber
harvesting,
it is also true that the decision of how to utilize this resource
remains
in the hands of PNG's traditional communities. Although there have
been
considerable changes in the letter of the law and the structure of PNG's
resource
management agencies, the government has not yet fashioned a role for
itself
that actually takes this fact into account. Instead, it continues to
position
itself as broker between resource owners and timber companies,
earning
the full respect and cooperation of neither. And, due to short-
sightedness
and corruption, it has failed as an advocate for the interests of
the
environment or of PNG's future generations.
The
dilemma for PNG is, of course, that under the prevailing incentives and
the
overwhelming influence of industrial forestry interests, PNG's
communities
more often than not have opted for exploitation and conversion of
their
forests, even though this does not usually serve their long-term
interests,
nor those of the nation as a whole. Historically, as a result, the
interests
of the nation, and of the environment, are not effectively promoted
by any
single agency or sector. Ideally, the government would serve as the
arbiter
between competing interests, but this role has proven difficult
because
of the lack of a strong independent civil service, the absence of a
strategy
for multi-sector land use planning that integrates community,
provincial,
and national interests, and the Constitutionally protected
ownership
rights of PNG's traditional communities.
6.4
Conclusion
For
these reasons, the government must fundamentally shift its perception of
its
role in relation to traditional communities and natural resources. The
government's
primary goal should be to work with PNG's traditional
communities
to promote strong, informed, and balanced community-level
resource
management by the communities themselves. This broader educational
approach
requires the PNGFA to act more in the role of a facilitating
organization
rather than a broker between the people and industry and
enforcer
of regulations and procedures. At the same time, it must represent
the
broad range of forest values, including environmental benefits and the
rights
of future generations, as the basis on which it builds its cooperation
with
resource owners.
The
obligation to abide by the law as written in the PNG Constitution, and
also
represent the values of biological diversity and the rights of future
generations,
will require a robust capacity to promote broad-based awareness
of
community development options, a system of effective incentives to manage
resources
in ways that serve larger national goals, and an extensive training
capability
to assist communities in determining and ultimately managing their
chosen
development option.
To meet
the goals outlined above, the PNG government should consider
developing
an administrative capacity to coordinate all resource-related
activities
in PNG. This institution would have the capacity and the power to
require
mandatory reviews and consideration of the social, economic and
environmental
impacts of various land uses. In conjunction with efforts to
strengthen
the sustainable resource planning capacity at the district and
province
levels (as part of the provincial reforms under the "organic law"),
a
national capacity of this kind could bring the results of the national
level
efforts to identify ecologically sensitive areas to bear on regional
land
use decisions.
At the
same time, an `extension or options investigation service' should be
established
which would offer comprehensive support for PNG's traditional
communities.
This support, based in a staff trained in negotiation, law,
mediation,
forestry, economic development and related skills, would be made
available
when communities are making choices among their development
options.
NGOs should have a prominent role in developing and implementing
these
programs, the ultimate goal of which should be to develop capacity in
communities
to evaluate and manage their future. At the same time, through a
trust
fund, a system of incentives, either monetary or `in-kind' (training
and
infrastructure) should be created to encourage communities to adopt
development
options that take into account particular national interests,
such as
biodiversity preservation, strengthen village skills, community-based
enterprise
and create a rural tax base, and maintain community integrity and
are a
source of community pride.
The
`incorporated land group' approach, as an integral part of `community
resource
management', needs to be reviewed and supported further. In
particular,
the Land Groups Incorporation Act of 1974 needs to be reviewed,
brought
up to date and strengthened with appropriate amendments. This should
include
a program for the training of land group facilitators charged with
developing
and maintaining processes for accurately and fairly determining
local
community representation and interests. This work should not be
undertaken
by any staff members within departments or employees of logging or
other
resource exploiting companies.
V. THE
NATIONAL FOREST PLAN AND FORESTRY IN PNG (draft)
5.1
Overview
Papua
New Guinea is endowed with rich reserves of diverse forests which are a
significant
source of revenue for the country now and, if properly managed,
can
provide income for PNG's citizens and government in perpetuity. The
country's
total land area is 46.5 million hectares, of which close to 75
percent
(about 36 million hectares) is forested. The National Forest Plan
(NFP)
is based on the PNGRIS mapping project, contained in "Forest Resources
and
Vegetation Map of Papua New Guinea," PNGRIS publication number 4 of the
Australian
Agency in International Development (1995). The NFP takes a very
narrow
view of forest uses. In general, it only acknowledges and provides
guidance
for managing the forests to produce commercial timber under a large-
scale,
export oriented, industrial forestry model. Within this framework,
which
essentially leaves out subsistence, cultural, ecosystem service,
biodiversity
and other forest values, the NFP asserts in the introduction
that
the allowable cut is set at levels to "ensure that the areas of forest
resource
are harvested on a sustainable yield basis."
It
divides the country's forest resource into 5 categories:
a) production forest, comprising "forest
currently acquired and identified
production
forest yet to be acquired" for logging.
b) protection forest, defined as areas
"that have been identified and
gazetted
by the Department of Environment and Conservation as being areas
with
high conservation and biodiversity values."
c) reserve forest, defined as "areas yet
to be classified."
d) salvage forest, defined as "forest that
is cleared for other uses,"
e) land suitable for afforestation, which
refers to "areas of grassland and
severely
disturbed natural forest.that have been acquired.for the purpose of
establishing
a forest estate."
To
date, the National Forest Service has acquired 8.7 million hectares of
production
forest, consisting of 3.7 million hectares (45%) of operable
forest,
and 5 million hectares (55%) of forest which is considered inoperable
on the
basis of topography, the presence of watercourses and periodic
inundation
(i.e. swamp). According to the Plan, a further 3.2 million
hectares
of production forest have yet to be acquired.
Uncertainties:
The
first area of uncertainty in the plan centers on the actual acreage of
available
forest. The NFP interprets the combined conclusions of the PNGRIS
data
and PNGFA and CSIRO studies to assert that there are 11.9 million
hectares
of acquired or potential production forest (category one) and a
further
8.2 million hectares of "potential production forest", a subcategory
of
"reserve forest" (category 3).
These
assessments have been disputed. Saulei (1990) estimates that 15 million
hectares
of the natural forest, containing some 500 million cubic meters of
logs,
are commercially operable. More recent estimates assess the
commercially
operable area to be less than half that, or 6.5-7 million
hectares
(CSIRO, RRA-AIDAB 1993). Yet another assessment suggests that
because
of competing land use imperatives, including conservation, the actual
land
available for industrial forestry could be as low as 3 million hectares
(Aitkens,
1993).
Also
debated is the appropriate Annual Allowable Cut (the maximum
sustainable"
annual cut). Estimating the annual allowable cut involves
calculating
the growth rate of tree species and assessing a level at which
regeneration
approximates appropriation. The determination of a cutting cycle
(the
length of time an area must be allowed to grow back before being
subjected
to a second cut) is generally based on the ability of the forest to
regenerate
after harvest, and the rate of growth of residual trees which are
left
during felling and which form the tree crop at the next felling cycle.
Sustainable
yields, in forestry, imply that at
minimum the forest will
regenerate
naturally to the state that began the cycle, which in the case of
PNG has
been set at 35 years. Economically, the presumption is that a harvest
of
roughly equal value will then be available.
Using
these assumptions, the annual allowable cut, calculated at the national
level,
is estimated in the NFP to be 4.9 million cubic meters. By contrast,
using
similar assumptions, a 1993 rapid appraisal by the CSIRO estimated a
sustained
yield harvest of three million cubic meters annually.
This
cutting cycle is not the industry standard in similar Asian forests. The
lowland
dipterocarp forests of Peninsular Malaysia are logged on a 70-year
cycle,
and of Sabah on a 60-year cycle (references). And, unlike most other
Asian
nations, PNG's forests tend to contain smaller trees and less
concentrated
stands of commercial species. The industry's focus on far fewer
species
in PNG means that the pressure on commercial species is far greater
than
the "allowable cut" would suggest. PNG should consider adopting
longer
cycles,
like those employed in Sabah and Peninsular Malaysia. If a longer
cutting
cycle were introduced, the assessment of annual allowable cut would
be
proportionally reduced.
From a
forestry perspective, the assessment of an appropriate cutting cycle
is
uniquely dependent on local forest types and topographical conditions. The
practice
of managing forests on a national basis, as is demonstrated in the
National
Forest Plan, ignores the individual ecological conditions of areas
under
concessions, and is subject to political pressure that is not
necessarily
compatible with sound forest management. Therefore, the aggregate
provincial
assessments of "sustainable yield" in the Plan are questionable on
at
least two points: first, they may make erroneous presumptions about
potential
yields in individual concessions, and secondly may be based on
"unsustainable"
pressure on individual areas within the concessions. It is
highly
likely, moreover, that the industry-wide adoption of modern forestry
practices
would further reduce yields. In sum, it is only possible to manage
forests
on a project-by-project basis, in which specific geographical and
forestry
considerations can be taken into account.
Finally,
it is important to note that the bureaucratic designation of the
forests
of PNG for any purpose remains potentially problematic, in the sense
that
the land and its resources are owned by the customary owners, and as
such
any designation must have the involvement and approval of those owners.
It is
not clear, from the NFP itself, to what degree that process has taken
place
in a particular area. The plan, then, may prove grossly misleading if
it
implies that resource owners support logging in areas where in fact they
do not.
The role of the government should not be to initiate logging plans
but
rather to support the investigation and analysis of options, respond to
landholder
interests, and provide education, technical assistance and other
resources.
4.3
Ensuring Future Harvests
The
health of the forest after logging depends on scale and rate of
concessions,
and the technique and skill of those doing the logging. As a
rule,
logging in PNG by major operators has been destructive. Logging
companies
operate on short leases (up to 25 years) with no guarantee that
even
these will be honored for their duration. Thus they are concerned with
maximum
log extraction, at minimum cost, for maximum profit, and in the
shortest
possible time. This has resulted in many 'cut and run' operations,
in
which employees are paid according to their productivity (volume of wood
extracted
per day). They have little incentive to reduce soil and stand
damage,
nor to invest in enduring infrastructure, such as roads and bridges,
that
can serve the community after logging has ceased.
Damage
to the forest ecosystem during extraction most commonly occurs because
of soil
disturbance and soil compaction, damage to streams and damage to
residual
trees and other vegetation, thus endangering the ability of the
forest
to recover fully. In most cases, operators do not have the necessary
skill
or incentive to fell a tree in a way that minimizes stand damage and
maximizes
log extraction efficiency, or to operate a bulldozer so that it
does as
little damage to the soil and understorey as possible. In addition to
causing
excessive damage to any trees left for purposes of forest
regeneration,
uncontrolled felling can substantially reduce efficiency in the
subsequent
skidding operation.
According
to observation and studies from the field, log extraction tracks
are
often pushed through hillsides, and stream crossings are made by pushing
logs
and soil into streams. From 40% to 70% of residual trees, which would
form
the next crop and are the basis for a regenerating forest ecosystem, are
damaged
extensively during logging. Tracks left from pulling logs through the
forest,
logging roads and log dumps account for about 14-20% of the total
forest
area. This damaged terrain is removed from timber production for
future
crops and is also a source of stream sedimentation and pollution. A
further
30-40% of the area may be traversed by bulldozers as a consequence of
poor
pre-harvest planning and lack of coordination between the activities of
the
fellers and bulldozer operators. Landing operations, where logs are
delivered
after being extracted, are also potential sources of pollution.
After
logging operations have ceased, a small amount of attention on the part
of the
operator can improve the prospects for a significant second growth. As
part of
the forest management plan, minimal tending such as vine cutting and
liberation
thinning, as well as enrichment planting, plantation
establishment,
establishment of regeneration and growth plots, nursery
facilities,
and timber stand improvement should all be employed. There is
unfortunately
little such treatment taking place, and contractors often
undertake
a second cut in an area before the end of the logging lease, which
may be
as short as 3 years.
Part of
the problem with logging in PNG is the lack of adequate government
oversight.
The ability of the National Forest Authority to adequately police
concessions
is compromised by the difficulty in keeping an arms-length
relationship
with contractors in the field. The Department of Environment and
Conservation,
with only four officers covering forestry projects in the whole
country,
is even less equipped to carry out effective policing. Incentives to
participate
in various forms of illegal or unethical dealings with
contractors
in the field are powerful.
4.4 Conclusion:
Industrial
logging: Large-scale industrial logging presents the greatest
threat
to the ecology of PNG's forest resource. That the NFP allocates the
vast
majority of PNG's forest resource to industrial logging, without
consideration
of more advisable economic alternatives or the understanding
and
choices of PNG's resource owners, underscores the shortcomings of the
process
from which the Plan emerged. In the future, as this report makes
plain,
industrial-scale logging should give way to more sustainable and less
disruptive
modes of utilization.
In
areas where industrial logging is being considered or is already underway,
much
progress can and should be made to bring forestry practices into
alignment
with international standards. An important action would be the
development
of new standards for socially responsible and environmentally
sustainable
forestry that, at a minimum, are consistent with internationally-
recognized
principles for independent performance-based certification, such
as
those developed by the Forest Stewardship Council. These standards should
be used
as the basis on which new forest management agreements are negotiated
and
timber concessions tendered. Such standards would be an important aid to
landowners
wishing to pursue forest management options involving markets that
provide
an advantage to forest products with such independent, performance-
based
certification. The standards would assist the Forest Authority to
encourage
this kind of forest management as an alternative to the current
industrial
logging model.
For
existing operations, standard procedures for protecting the capacity of
the
forest to regenerate naturally should be implemented. This would, at a
minimum,
require a more conservative approach to logging, with more attention
paid to
preserving standing seed trees, areas that can promote regeneration,
and
more careful and sustainable silvicultural practices. For example,
establishing
protected status for sensitive areas and ensuring the
preservation
of natural forest corridors are critical parts of any
environmentally
sensitive extraction regime
In
addition, the cutting cycle should be raised to 60 years or more, to bring
it into
conformity with the practices of neighboring Asian nations with
similar
silvicultural conditions, as well as more up-to-date scientific
information.
The Logging Code of Practice should be fully implemented and
enforced.
The PNGFA, or the appropriate resource governing agency, should
increase
its capacity to police concessions and to train resource owners in
managing
their forest resources. Since virtually all logging standards can
easily
be checked and monitored, customary resource owners should be able,
with
very little training, to provide on-the-ground monitoring. At a minimum,
reporting
could be done through the forestry project supervisor(s) with
copies
to the appropriate provincial forestry office.
The
capacity of the PNGFA to plan logging operations effectively needs to be
improved.
Planning requires adequate maps in which stream buffer zones,
wetlands,
steep slopes, local human use zones and other protected areas are
demarcated.
A written plan outlining the tactical approach to cutting each
coupe
should be an integral part of all logging operations. Such a plan would
describe
in detail the items shown on the map, including for each harvesting
coupe a
description of the types of harvesting planned (i.e.. reduced impact
selective
logging), a description of the types of harvesting equipment to be
used in
each coupe, an estimate of the volume of timber to be removed from
each
coupe, species to be harvested, a schedule showing the year in which
each
coupe is to be harvested; descriptions of any special problem areas
noted on
the map, and a discussion of potential problems relating to the
local
communities; detailed information about the forest transportation
system
such as road design parameters for different conditions; annual labor
requirements
for harvesting operations and for construction and maintenance
of the
forest transportation system; and estimated cost of harvesting
operations
in each coupe and of the construction and annual maintenance of
the
forest transportation system.
Sustainable
Alternatives: It is clear that the National Forest Plan as
written
is inadequate to the task of ensuring the sustainability of PNG's
forest
resource. Ideally, it should be recast in the context of a more
comprehensive
integrated land or resource planning process, one based in the
careful
and comprehensive education and capacity-building of resource owners.
Since
ultimate control over the country's resources rests with communities,
such a
process would more reasonably begin with a determination of where,
because
of impacts on other communities or violations of PNG laws and
regulations,
industrial logging should not take place, and then work with
other
programs and mechanisms to provide alternatives that will still meet
the
development aspirations of people living in these sensitive or valuable
areas.
For the
future, and within the above constraints, the government should be
fostering
a fundamental shift in emphasis, away from industrial logging and
toward
more diverse and enduring resource management strategies. An important
complementary
action to this shift would be, as mentioned above, the
development
of new standards for socially responsible and environmentally
sustainable
forestry. In addition, as is recommended in the summary and in
other
sections of this report, mechanisms for assisting communities in
assessing
their development options need to be developed and strengthened,
and
support for implementing plans that align with the goal of strengthening
local
capacity and self-reliance and preserving the biological diversity of
the
country should be made available.
Finally,
the information and mapping capacity of the PNGFA and/or any agency
that
governs the management of PNG's natural resources should be increased to
enable
accurate, environmentally safe and effective planning to take place at
the
local level. Current high elevation photography and satellite imagery
date
from 1973, making assessments of current land use and other parameters
largely
useless. A national land-use planning capacity could be enhanced by
utilizing
various information systems cumulatively.
V. THE
NATIONAL FOREST PLAN AND PNG's BIODIVERSITY (draft)
5.1 Overview
Although
Papua New Guinea occupies less than one percent of the terrestrial
surface
of the planet, it contains approximately 5 percent of the world's
terrestrial
and freshwater aquatic species. The forests contain more than
15,000
species of vascular plants, including some 1,200 tree species and a
large
number of rare and potentially threatened varieties, especially among
the
fern and orchid families. PNG's warm-blooded fauna include 644 species of
breeding
birds and 215 species of breeding mammals. Seventy-six of the bird
species
are endemic to Papua New Guinea, as are roughly 50 species of the
animals.
There are 282 species of freshwater fishes and 505 species of
amphibians
and reptiles.
The
most comprehensive survey of the biodiversity of PNG is the two-volume
Conservation
Needs Assessment (CNA 1992), produced by the Biodiversity
Support
Program, a USAID-funded consortium of the World Resources Institute,
Conservation
International, and WWF. According to the CNA, "Papua New
Guinea's
tropical forests and freshwater wetlands are equal in biological
importance
to the Amazon and Congo Basins." In the survey, 43 areas of
national
biological importance and 99 areas of localized importance are
identified.
The survey also described in detail PNG's 10 ecologically-defined
classes
of forest and declared 17 areas to be of "major importance to
conservation
of PNG's forest environments."
In
dividing up the country into areas based on commercial forest potential,
the PNG
National Forest Plan fails to incorporate the findings of the above
studies.
Instead, it identifies roughly 20 million hectares of the country's
approximately
35 million hectare national forest estate for logging and
reserves,
including in this category virtually all accessible lowland
rainforests.
Parks and Wildlife Management Areas are listed as map
appendices,
and most of the existing or planned Integrated Conservation and
Development
sites are ignored.
5.2
Preserving Biodiversity
Despite
acknowledging biodiversity as a national interest, the NFP fails to
adequately
or effectively incorporate conservation values and associated
opportunities
either in the way it was produced, or in its implementation. It
is
clear that the obligation to balance biodiversity protection with economic
development
in the form of industrial logging was not carried out. Several
areas
of biological importance identified by the CNA are slated for logging.
For
example, the habitat of the rare Scott's Tree Kangaroo in the Torricceli
Range
is earmarked for logging, as is part of the Adelbert Mountains, the
only
habitat of the Fire-Maned Bowerbird, PNG's rarest bird. In the Hunstein
Range,
the plan calls for logging a vast forest wilderness containing perhaps
the
world's largest stand of Kauri Pine as well as a large area considered a
"biologically
important forest" in the CNA. In Oro Province, logging is
occurring
in the habitat of the rare Queen Alexander Bird Wing Butterfly.
Logging
is even proposed in the Lake Kutubu Wildlife Management Area,
potentially
destroying the watershed of Lake Kutubu with its 11 endemic fish
species.
The NFP
declares the PNGFA's interest in preserving areas having
"significant
environmental and ecological values." However, the promotion of
alternative
development strategies for areas that are not appropriate for
industrial
logging is hampered by the PNG government's disinclination to
provide
mechanisms and incentives for communities to make more sustainable
choices.
For example, the opportunity for traditional communities to declare
their
land as conservation areas is enshrined in the Conservation Areas Act
of
1978, according to which conservation areas can be proposed by the
Minister
of Environment and Conservation or "a person, group of persons or
authority
may make a written request to a minister." Unfortunately, the Act
requires
the establishment of a National Conservation Council to oversee the
Conservation
Areas. This has never been done and no Conservation Areas exist
to
date.
Moreover,
existing protected areas are not adequately protected, and efforts
to
establish new ones suffer from lack of administrative support. According
to a
1992 study (WWF-DEC Protected Areas Review, 1992; Conservation Areas
Strengthening
Program,1993), there is little support for either designation
from
national or provincial government agencies, and management of existing
gazetted
areas is poor or nonexistent.
This
shortcoming persisted through the creation of the NFP. According to
officials
involved in writing the NFP, the Department of Environment and
Conservation
was charged with contributing to the production of the plan by
delineating
areas already set aside or under consideration for some form of
protection,
and by processing requests from traditional communities for
conservation
and wildlife management area status. According to interviews
with
staff of the National Forest Authority, the Department of Environment
and
Conservation was unable, or was not allowed the opportunity, to supply
accurate
and updated delineations of the various protected areas. This may
have
occurred as a result of political pressure to complete a plan in order
to
permit concessions to be granted. The DEC's lack of capacity also
contributes
to this lack of coordination between departments. According to a
senior
official interviewed, a backlog of some 300 community requests for
some
form of conservation area has yet to be processed.
5.3
Conclusion
The
general lack of attention to competing uses other than industrial logging
draws
into question the entire NFP process, and suggests that the need to
"have
something on paper" that was perceived as meeting the statutory
requirements
of the 1991 Forestry Act prevailed over a more thoughtful and
comprehensive
planning procedure. That the original body convened in 1993
under
the PNGFA to produce the plan was dismissed after many months of work
(and
replaced by an outside "working group") is indicative of the
politicization
of the planning process.
The CNA
and similar biological studies represented an important step in
identifying
areas of biological interest to the future of Papua New Guinea.
By not
taking account of the conclusions of those efforts, the NFP forgoes an
important
opportunity to identify areas in which industrial logging should be
discouraged
or prohibited. Such a national mapping exercise could serve as
the
basis for all development planning efforts, providing a baseline for the
subsequent
implementation of incentives and disincentives to economic
development
and other initiatives in the forest.
It is
ultimately more important to provide education, incentives, and
financial
and legal support for PNG's traditional resource owners to choose
development
options that preserve the ecological integrity of the areas in
which
they live. At a minimum, it is unfortunate that even those communities
that
have decided on conservation as their "development option" are not
receiving
support from the government agencies charged with processing such
requests.
As a result, the option to create Wildlife Management Areas or
Conservation
Areas, guaranteed in PNG legislation, is rarely implemented
successfully.
The Department of Conservation should have the expertise and
the
resources, as well as adequate influence in the planning process, to
inform
and encourage communities to adopt effective conservation options and
then
implement those decisions in national and regional planning exercises.
There
are as yet no mechanisms for providing financing to communities which
opt for
conservation instead of logging. A Conservation Trust Fund earmarked
to help
communities who choose more sustainable development options would
help to
encourage preservation. In addition, a comprehensive information
gathering
and disseminating capacity would enable communities to incorporate
national-level
goals into their decision-making. Finally, adequate training
is
needed for communities to manage and police Conservation and Wildlife
Management
Areas.
THE
NATIONAL FOREST PLAN AND THE PNG ECONOMY (draft)
7.1 Overview
PNG's
forests provide, in addition to financial returns from current uses,
benefits
that are difficult to measure: environmental goods (wild foods,
fibers,
etc.), services (protection of rivers, biodiversity, etc.) and future
development
alternatives (tourism, community-based enterprises, etc.). These
benefits,
despite their obvious value, are not reflected in the national
"balance
sheet." The costs of poor forest policies, which can result in
indiscriminate
cutting and considerable environmental and social damage, are
likewise
not accounted for in strict monetary terms. Policies must therefore
be
implemented that can begin to account for these competing needs and
imperatives,
and these policies must take into consideration criteria beyond
the
financial.
Evidence
suggests that the best balance of these competing demands on PNG's
forests
is not being realized. As mentioned elsewhere in this report,
industrial
logging is being drastically over-emphasized and over-valued to
the
almost complete exclusion of other uses and values, a bias that results
in
damage to the environment and to the social structure of PNG's rural
communities.
These
problems have not gone unheeded by the government. The Forest Sector is
being
reformed through several key initiatives: a National Forest Board, a
Forest
Management Agreement, a logging code of practice, a recrafted revenue
system,
Provincial Forest Management Boards and a National Forest Plan.
Despite
these reforms, there remain serious problems with the way PNG manages
its
natural resources. In particular, the country requires an integrated
land-use
planning and implementation capacity that can incorporate as well as
support
input from communities and other stakeholders seeking to achieve the
best
use of their natural resources. Several basic economic principles should
frame
this process.
7.2 The
Economics of Forests
Traditionally,
many problems arise in managing forests because the non-
financial
benefits are undervalued or ignored in planning. Large parts of
PNG's
rural economy, including the forest services that don't enter a formal
cash
economy, are not quantified and escape notice. About 84% of PNG's
population
live in rural areas, the majority of whom earn their livelihood
growing
crops for food and cash, and collecting wild foods and natural
materials.
Trees, fibers, and non-timber products provide shelter and energy.
Fish
afford a supplemental source of protein in many rural areas. But few of
these
benefits show up in calculations of national income.
Any
disruption of the ecological balance that supports rural livelihoods
incurs
a cost. For instance, soil erosion from timber cutting can degrade
fisheries
and reduce crop yields. In this way, the industry can damage the
resource
without affecting its immediate financial goals, but with
considerable
impact on communities and, as a result, the wealth of the
nation.
(Indeed, as mentioned elsewhere in this report, PNG's current forest
policy
encourages unsustainable forest cutting and poor forestry practices).
While
establishing a system of national accounts that quantifies non-
financial
forest benefits is a difficult task under any circumstances, an
understanding
of the benefits of an intact forest for rural people could
begin
to widen the basis for resource planning, as well as form a component
of
resource-owner education programs. For example, Reid (1996) estimated a
per
hectare return to industrial logging at US$ 1,023 in stumpage, of which
resource
owners would receive US$ 248 under the revenue system proposed by
the
World Bank. This "present value" figure is a discounted estimate of
the
return
over five cutting cycles and translates to annual income in perpetuity
of US$
30 per hectare. This figure becomes lower if a smaller interest rate
is used
(thereby placing greater value on future benefits). In Reid's
example,
a 6 percent rate (lower than the market rate) corresponds to an
annual
income in perpetuity of US$ 15 per hectare. By comparison, global
studies
of the value of minor forest products and services such as fruits,
fibers,
latexes and medicines have yielded ranges from US $5 per hectare per
year to
more than $400. Hunting values range from US $1 to US $16. Erosion
control
value has ranged from $1 to $30, with a median of about $10 per
hectare.
(World Bank Environment Department Paper No 013, Lampietti and
Dixon).
In
addition, because of the long-term damage associated with logging
practices,
PNG is also eliminating many potentially profitable future
economic
options for its forests. For example, tourism, small-scale forestry,
and
commercialization of genetic resources all depend on preserving PNG's
biological
resources and, in some cases, biological diversity. Ecotourism
enterprises
and pharmaceutical prospecting can't normally occur alongside
industrial
logging as currently practiced in PNG.
7.3 The
Industry's Incentives
Under
current conditions, industrial loggers are motivated to cut down the
forest
quickly and move on. Companies granted logging licenses from the PNG
Forest
Authority (PNGFA) have no direct financial incentive to invest in
regeneration
or, in fact, any form of longer-term management of PNG's forest
resource.
Given the choice of harvesting valuable species now or leaving
stands
to grow, firms are acting in their best financial interest by cutting
immediately
and banking the proceeds (see Rice et al., 1997).
This
decision is influenced by inflation-adjusted interest rates (earned by
companies
banking proceeds), expected commercial timber growth rates, and
expected
price increases for raw logs. Even if estimated returns from
delaying
harvests were attractive, firms may wish to avoid the risks imposed
by
potential environmental, social and political changes. Wind, fire and
disease
all pose risks to future returns. Moreover, many of the Forest
Management
Agreements overseen by the PNGFA between logging companies and
the
forest's traditional owners have proven to be unstable, further
encouraging
the industry to harvest quickly and inefficiently.
Moreover,
because of corruption and the inordinate influence of industrial
logging
interests over national policy, the government and people of PNG are
not
receiving the maximum long-term value of the forest resource. As
mentioned
elsewhere in this report, the logging industry has successfully
delayed
or weakened environmental and social regulation. Poor enforcement and
oversight
of concessions has encouraged contractors to disregard the
requirements
of Forest Management Agreements and the logging code of
practice,
creating a spirit of mistrust and lawlessness in the field.
Lack of
market competition exacerbates these problems. Over one-half of
industrial
logging harvests are controlled by a single corporate entity-the
extended
holdings of Malaysia's Rimbunan Hijau (Filer, 1997). Under these
conditions,
PNG's government and resource owners lose the premier power of a
consumer-the
power of choice. As a result, the logging firm feels little
competitive
pressure to harvest using techniques that a more competitive
atmosphere,
accompanied by a functioning regulatory apparatus, might be able
to
promote. Without it, and in the presence of the corruption which is
endemic
to the forest sector, the government
and resource owners are
encouraged
to contract for services with an industry that has power to resist
tax
reform and compliance with PNG's laws and regulations. Consequently, the
government
loses tax receipts and resource owners lose royalties and pay
higher
environmental costs.
7.4
Assessing Cutting Levels
The government
is trying to safeguard the resource for present and future
generations
by limiting harvest quantities to an annual allowable cut, a
figure
"calculated as being the maximum sustainable harvest" (National
Forest
Plan,
1996). Elsewhere in this report, serious questions are raised about the
advisability
of this cutting cycle, particularly when drawn at the national
level
over a terrain that is as diverse and irregular as that of PNG.
For the
purposes of this section, the main problem with such a calculation is
that
the value of a forest, as we have said, is far more than the value of
the
trees left standing at any given time. Rural livelihoods, cultural
identity
and development options are bound, directly or indirectly, to a
healthy
forest. Moreover, static timber quantities don't guarantee that
future
generations can realize present income levels because of the change in
species
mix. The value of the future secondary growth is highly unlikely to
be as
valuable as the present stock of trees. Again, while short-term
financial
interests of all parties may be served by cutting the forest today,
the
long-term impact for PNG will be negative.
7.5 The
Raw Log Ban and Value-added Processing
The
National Forest Plan includes a provision reserving a portion of the
annual
cut for in-country processing. The goal, one shared by successive PNG
governments,
is to add value to PNG's forests, promote employment and aid in
the
acquisition of technology.
Section
7.0 of the plan outlines an industrial forest development program
involving
the establishment of saw mills, plywood mills, and furniture-making
facilities.
Unfortunately, with respect to the most capital-intensive
industries,
such as plywood, this is a difficult goal. First, unless PNG has
an
advantage in terms of the cost and efficiency with which timber products
can be
produced, it is unlikely that a viable industry can be developed
without
government assistance to industry such as tariffs and subsidies. In
addition,
most timber processing industries are more capital-intensive and
less
labor-intensive-hence, low levels of employment are likely.
Other
countries in the region, notably Indonesia, have developed plywood and
related
processing industries, but at great expense to the government and the
environment.
Large-scale industries require a high volume of raw material
inputs
to achieve return-on-investment and employment goals, leading, in some
cases,
to inequitable distribution of benefits and to massive, subsidized
pressure
on forest resources and thus increasing the scope and level of
forest
destruction (Rice et al., 1997). Indonesia is blessed with greater
concentrations
of marketable tree species, a more developed infrastructure,
and a
more skilled labor pool. Nevertheless, to keep the industry competitive
in
Indonesia, the government has depressed the domestic price of raw logs,
resulting
in distortions that have promoted the accelerated felling of the
country's
forests.
7.6
Small-Scale Enterprises
It is
far more likely that small-scale non-industrial processing, that
targets
niche markets for which PNG has an identified advantage, can prove
profitable.
These enterprises include the manufacture and sale of natural
resource-based
products such as furniture, handicrafts, textiles and
carvings;
harvest and sale of natural products including nuts, butterflies
and
fibers; non-consumptive forest uses such as tourism development; and eco-
timber
enterprises using portable saw mills.
Unfortunately,
under the present circumstances the short-term monetary
returns
to these activities are unlikely to compete favorably with logging
royalties,
especially if logging occurs on an unsustainable scale and with
the
current level of government support, and small-scale enterprises are not
explored
or supported. However, exceptions exist: portable sawmills
reportedly
provide resource owners with a higher per cubic meter return than
logging
royalties. In the case of the Lak area of New Ireland, only the eco-
forestry
alternative was found to be financially acceptable (Sekhran, 1996).
In Oro
Province, a project involving the manufacture and sale of textile art
has
thus far helped preserve the forest by uniting traditional clans in an
effort
to establish an economic alternative to industrial logging in an area
of high
biological interest.
The
profitability of these and related businesses would be enhanced with
further
research and experimentation. Information on questions such as local
timber
markets, access to markets, and minimum economic scale (to attract
investment
and meet needs of suppliers) is useful. Resource owners and the
PNGFA
need to compare monetized logging returns to the combination of returns
from
small-scale enterprises and environmental goods and services.
In
terms of policy-making and planning, positive aspects of small-scale
logging
enterprises include: a slower rate of harvest; potentially higher
return
per cubic meter harvested; employment and skills development; and
benefits
from increased competition in the logging industry. However,
downsides
also need to be studied: portable sawmills can work in terrain too
difficult
or marginal (and often sensitive to perturbation) for industrial
logging
companies; such enterprises are sometimes more costly and difficult
to
regulate; continuing to harvest areas that have been commercially logged
can
result in significant environmental impacts; ecological changes and
effects
are not well known; taxes may be smaller and can be harder to
collect,
and the government can lose export tax revenues.
7.7
Conclusion
The
National Forest Plan, slating as it does the vast majority of the
nation's
forest resources to industrial logging, represents a highly
unsustainable
and environmentally destructive model of development. It
ignores
less damaging economic alternatives, neglects the unquantified
benefits
that accrue to rural people from intact forests, and overlooks the
costs
to the environment and environmental services of industrial logging.
And it
fails to distribute profits equitably or to ensure sound investment of
these
profits. It also fails to incorporate the large opportunity costs that
eliminating
the forests in the present imposes on the future, since many
nascent
and emerging economic options depend on an intact forest for their
development.
Returning
balance and a longer-term perspective to PNG's forest policy means
reducing
considerably the focus on industrial logging and promoting less
destructive
alternatives. This will preserve the existing, usually
unquantified
forest values that support rural livelihood, preserve
biodiversity
and also preserve options for the future that will provide more
reliable
income. For the present, however, this will mean reduced receipts
from
log export taxes, as well as reduced landowner receipts from
concessions.
However, the current low international price for PNG logs
represents
an opportunity to redress the balance of emphasis and investigate
other
avenues of economic growth without risking significant revenue loss.
International
lenders and aid and development agencies, in particular AUSAID
and the
World Bank, are considering establishing a fund to explore and
finance
conservation and alternatives to industrial logging. A development
fund of
this sort, administered carefully, could create opportunities for PNG
to move
beyond industrial logging and create viable alternatives, while
lessening
the impact of the dislocation caused by a reduced reliance on
industrial
logging. This would be of real benefit to PNG's long-term
environmental
and economic security.
In
addition, some capacity to incorporate currently unquantified forest
values
would greatly enhance the ability of communities and the government to
fairly
evaluate development options. Along with other critical data such as
ecological
sensitivity and market potential for local products, this
information
should be made available to communities when they are considering
their
future. Accompanied by adequate training in business development,
forest
monitoring, marketing and related skills, this informational capacity
would
enable communities to make and implement good decisions, and then
manage
them successfully.
Finally,
where concessions have already been negotiated, the PNGFA should
encourage
higher bidding, greater extraction efficiency and compliance with
laws
and regulations by strengthening the existing right to auction harvest
concessions
and use performance bonds guaranteed by a third party. In
particular,
ways to limit the influence of one contractor, Rimbunan Hijau,
should
be found in order to enhance the benefits that accrue from a more
competitive
forest sector.
7.8
ENSURING LONG TERM LIVELIHOOD
Rural
communities face a difficult decision: to live off the proceeds of
industrial
logging by granting foreign firms access to their resources, or to
develop
and use local resources themselves. The trade-off is simple:
industrial
logging can provide high cash income for a finite period-assuming
resource
owners are fairly compensated-while alternatives, such as small-
scale
forestry, may not be able to match the immediate income levels
available
from logging royalties. However, they may provide a sustainable
source
of livelihood indefinitely.
The
actual present-day cash value of each of these options is still uncertain
and
debatable: it varies by location, agreement with contractors, the
alternatives
chosen, and many other factors. What is known is that the
overall
benefit to the community of each option is tied to two things. The
first
is the preservation of the present values of an intact forest; that is,
guarding
those aspects of an unlogged forest, such as water retention,
habitat
for flora and fauna and other forest "services," that provide for the
livelihood
of forest dwellers. A significant proportion of PNG's rural
population
relies on forests, gardens, rivers, and the marine environment for
their
livelihood. In the Kikori region-a
typical rural region-an analysis by
the
World Wild Fund for Nature-U.S. (WWF, 1997) estimates that of 60,000
people,
only about 1,000 are working on a cash for labor basis.
The
second is to preserve future development options by sustaining those
aspects
of the forest ecology that could be the basis of economic growth in
the
future. Much attention is being focused, in PNG and around the world, on
the
potential for PNG forests to serve as the basis for ecotourism
operations,
as carbon sinks, and as sources for pharmacological research.
Both of
these aspects of the debate that faces communities are often ignored
because
they are difficult to articulate and quantify in financial analyses.
Following
examples may help illustrate the trade-offs
?
Clear-cutting forests can eliminate opportunities to develop other uses of
the
forest including eco-tourism, pharmaceuticals and small-scale forestry.
Moreover,
non-timber forest products (NTFPs) such as rattan, insects, orchids
and
mushrooms have undeveloped and/or unknown commercial value (Brown and
Wyckoff-Baird,
1995);
?
Industrial logging reduces the forest's capacity to provide rural
households-especially
the poorest households-with raw materials for homes,
canoes,
clothing, medicine and energy. Rivers swollen and bottlenecked by
sediment
loads have flooded settlements and subsistence agriculture plots and
eliminated
potable drinking water, resulting in higher rates of malnutrition
and
disease. Erosion from logging steep grades has negatively affected near-
shore
marine environments and related food supplies;
?
Community-based enterprises could provide employment and opportunities to
develop
the skills base. Cash aside, there are other benefits to community-
level
employment including a sense of control and responsibility for the
resource
base, self-reliance, increased skills, and the capacity to create an
economic
destiny for the community.
? The
disbursement of logging royalties is sending social shock waves into
communities
who have little experience with a formal cash economy. In remote
areas,
logging firms often own the only establishments in which communities
can
spend their new source of cash. New cash dependencies that cannot be
satisfied
shortly after royalties cease can precipitate problems, including
migration,
petty crime and prostitution. Such problems are exacerbated by a
degraded
resource base and poorer health conditions;
?
Logging companies have little incentive to provide social services or
infrastructure
(e.g., roads, health centers, schools) that is built to last
longer
than the life of their project, nor are they doing so.
In sum,
financial analyses that don't capture the value of NTFPs and other
non-monetary
costs and benefits favor the industrial development scenario.
Formal
studies of the value of NTFPs have shown them to be substantial
relative
to timber values. About half of an
estimated hypothetical value of
one
hectare of forest in developing countries is attributed to the extraction
of
timber. The rest corresponds to minor products, ecological functions and
the
value of preservation (Lampietti and Dixon, 1995). The analyses are thus
skewed
because the costs of the industrial scenario and the benefits of the
community
scenario that are not captured. Until these factors cease to be
ignored,
maximizing industrial timber extraction benefits will continue to
drive
tropical deforestation.
It is
also valuable to consider the risk and uncertainty of each option.
Industrial
logging's established history, while problematic, may seem
attractive
cause it offers the speculator, whether a landowner or investor, a
"well-traveled"
economic option to consider. Capitalization, ready access to
global
markets, and large economies of scale place logging firms in the
position
to pay large sums of cash to communities. However, it is important
to
realize that, although industrial logging pays cash royalties for a finite
period,
the cash must be invested carefully in areas which can provide income
at
least to replace the services lost in the development of the forest. If
this
does not occur, the community could be left with a degraded resource
base
and little else. On the other hand, if efforts to develop community-
based
enterprises fail, the resource base is more likely to endure and the
option
to pursue other development scenarios, even some form of industrial
logging,
remains.
Reports
confirm that, in fact, productive reinvestment does not occur.
Communities
have endured hardship resulting from degraded environments,
social
and cultural shocks, and unfair compensation. The criteria for a
successful
extraction regime-preserving ecosystem services and future
options,
while ensuring productive reinvestment-have been rarely, if ever,
achieved
in the PNG context.
References
Brown,
M. and B. Wyckoff-Baird. Designing
Integrated Conservation and
Development
Projects. The Biodiversity Support
Program. 1995.
Lampietti,
J. and J. Dixon. To See the Forest for
the Trees: A Guide to
Non-Timber
Forest Benefits.
Environment
Department Paper No. 013. The World
Bank, 1995.
personal
communication, Mr. Rex Naug, Project Manager, World Wildlife Fund
Kikori
Project, Papua New Guinea, January 15, 1998.
World
Wildlife Fund - U.S. Regional
Environmental Analysis: the Kikori River
Catchment
of Papua New Guinea. 1997.
Lafcadio
Cortesi
Greenpeace
Pacific
568
Howard St.
San
Francisco, CA 94105
tel:
w.415-512-9025/h.510-527-2858
fax:
w.415-512-8699/h.510-528-2886
e-mail:
lafcadio.cortesi@dialb.greenpeace.org
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