Commercial forestry as a tool to reduce poverty in Bolivia

In an earlier article we began to discuss the forest sector’s role in poverty reduction. To continue its exploration of pro-poor commercial forestry, in late September of this year the Forests Dialogue (TFD) convened a regional dialogue in Santa Cruz, Bolivia (background paper, agenda, presentations, etc. are available via this link). This group of experts came together to learn from each other and identify the conditions under which commercial forestry can play a significant role in the reduction of poverty, both locally and globally. In addition to several key steering committee member organizations, TFD partnered with CEDES (BCSD Bolivia) and The Nature Conservancy / Bolfor II Group to organize this event.

The Bolivia dialogue was a follow-up from a scoping dialogue in South Africa in 2006 and a mini dialogue in Indonesia in 2007. It was the third in a series of dialogues and field visits by this working group to countries that offer the best opportunities to explore the potential of pro-poor commercial forestry in alleviating poverty and to expand the working group's knowledge of these initiatives.

The main challenges for improved pro-poor commercial forestry discussed during the TFD were the need to generate more added value for the forest communities through an adequate and progressive access to markets, as well as integration into the value chain through inclusive business relations between companies and communities. On the other hand, participants agreed upon the urgency to increase forest-related income by means of a more integrated forest management.

The key issues highlighted were:

·       clarity on land tenure and public sector learning capacity to incorporate lessons learned within forest legislation

·       improved coordination among public and private actors

·       limited development options as a consequence of unilateral focus on timber

·       social control over forest use

·       access to financial markets for small and medium enterprises

The group will continue to contribute to ongoing national policy discussions on the role of commercial forestry in poverty reduction. A priority of this dialogue was to involve key Bolivian stakeholders in this ongoing international dialogue process.

The challenges and issues that emerged from the Bolivian TFD put in perspective and give orientation to the strategic choice made by the WBCSD-SNV Alliance in Bolivia with regard to the topic of inclusive forestry business.

The Alliance is exploring opportunities for inclusive business models in this sector, most notably with Grupo Industrial Roda, a conglomerate of companies based in Santa Cruz, with a view to bringing Bolivian forestry products to market. Grupo Roda has established business relations with some indigenous communities and is currently developing promising experiences. Its entrepreneurial principles are based on business integration, social commitment, and environmental concerns with a long-term vision. CIMAL/IMR, a division of Grupo Roda, actually became the first in the country to achieve Forest Stewardship Council (FSC) certification, leading the way for the greening of the country’s entire forestry industry (see a profile of Grupo Roda’s forestry activities by the Rainforest Alliance). In fact, Bolivia now has more FSC certified forests than any other tropical country on Earth.

Given the growing global demand for certified wood as well as the available funding from external sources for forestry projects thanks to the fact that newly sown forests will generate carbon credits, Grupo Roda is engaging a number of oil companies operating in Bolivia to acquire such credits. For their part, native communities would not only acquire better forestry management skills, but would also ensure a sustainable source of income from wood sales to a guaranteed buyer, i.e. Grupo Roda. There are also plans for the local communities to obtain a share of the cash flow generated by means of carbon trading.

For information on the Alliance’s work in Bolivia's forestry sector, please contact Julio Garrett Kent, National Business Facilitator of the WBCSD-SNV Alliance.

Comments

[Elizabeth Dora Kayo]

I introduce Ronald Ngala Foundation, www.ronaldngalafoundation.co.ke. We are newly founded organization prompted by the plight of larger society in our country who are very poor, to be apart of the few others like yourselves to do something to alleviate the levels of poverty. We opted to begin our work in Coast Province of Kenya, Kilifi/Kaloleni Districts, which area has been grossly marginalized hence there is real poverty. Our situational analysis observation is land is good for assorted agriculture produce, weather patterns unpredictable, prone to floods landslides and droughts, hence natural disasters, the people are lazy due to too much hot spells of weather. Forestry in this area could alleviate poverty to a large extend, (1) it will help change the weather (2) the land is permanently idle year in and out because of laziness and unpredictable weather patterns of the people (3) Forestry would be an easier activity for these people in the area (4) We have land - 20 hectares for use as a nursery for the seedlings, also as a pilot project (5) Many people are willing to use their farms to that effect (6) Forestation will stop the landslides and save lives (7) There is high demand for timber within the area for what is used comes from the neighboring country, Tanzania. Please partner with us towards forestation program in this area.