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Performances of collective forest regions in CHINA Dr. Can LIU Professor, Director China National Forestry Economics and Development Research Center.

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Presentation on theme: "Performances of collective forest regions in CHINA Dr. Can LIU Professor, Director China National Forestry Economics and Development Research Center."— Presentation transcript:

1 Performances of collective forest regions in CHINA Dr. Can LIU Professor, Director China National Forestry Economics and Development Research Center

2 contents Background and forest resources The evolution of China’s collective forestland tenure Performances of China’s collective forestland tenures Conclusions and discussions

3 CHINA 9.60 million km billion people 32 provinces and autonomous regions. Tropical, subtropical, and temperate climate zones

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8 next

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12 Soil erosion

13 Deforestation during the Commune era Slide 8

14 Forest Resources Forest as a % of Land Area 20.36% Forest land area million hectares Forested land area million hectares Forest per capital hectare (World average 0.624)

15 Forest Resources(cont’d) Total Forest volume billion cubic meters Among which Forest standing volume billion cubic meters Forest standing volume per capital cubic meters (world average: cubic meters) Natural forest area: million hectares (65.99%) Plantation forest area: million hectares (34.01%)

16 Forest Resource (cont’d) Young and mid-aged forests: 67.25% Average standing volume: 85.88M 3 /ha Uneven regional distribution: Heilongjiang, Jilin, Inner Mongolia, Sichuan, and Yunnan: 41.27% (area) and 52.44%(volume)

17 Forest distribution

18 Natural forest resource distribution in China

19 Forest plantation distribution in China

20 Forest Laws Forest law, enacted in 1984 and amended in 1998 Forest action plan for the Agenda 21 (1995)

21 Forest Policy Changes From a planning economy to a market economy (CAC--MBIs) From economic to environmental orientation From public (state and collective) ownership to multiple ownership, encouraging private property rights – Forestland Collective 39.94% State 60.06% – Forests Collective 28.54% State 39.38% Private 32.08%

22 Types of forestland tenures private Open access Common property

23 Evolution of collective forestland in CHINA The reform of land The cooperative Peoples’ commune The post Peoples’ commune The current forestland reform

24 Land reform ( ) Characteristics – Distributing management and property rights to farmers(Disintegration) Impacts – High production enthusiasm – High production efficiency Strategy – The land reform law of P. R. China, Slide 6

25 Before Land Reform (Per household) After Land Reform (Per household) The forest property right changing in the land reformSlide 4

26 Mix of private and community ownership Cooperative management Scale became larger Resource conditions improved

27 1958s--1980s Collective ownership Collective management Income distribution based on workdays not contribution Low efficiency and forest depletion

28 1980s to the Early 1990s Land ownership is still collective But forests were contracted out for management More collective forestland management models Increased harvesting Unstable planting and thinning Expanded forest cover Lowered quality

29 Since 1990s-2002 Shareholding and other cooperative models Larger scale of operation Higher economic efficiency Better resource management

30 2002—the present NEW reform of forestland tenure

31 The weights of collective forestland

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33 The reasons for the current reform (1) Government New rural construction The reform of taxation Increasing farmers’ incomes Timber demand– higher price Expanding timber processing industry

34 The reasons for the current reform (2) Unclear forestland boundaries Conflicts Low productivity

35 Documents (1) the Decision of the State Council and the CPC Central Committee on Some Promotional Policies to Increase Famers’ income(2004) the Decision of the State Council and the CPC Central Committee about Further Strengthening the Work in Rural Areas and Raising the Integration of Agricultural Production Capacity(2005) the Decision of the State Council and the CPC Central Committee about Promoting the Building of a New Socialist Rural Areas(2006)and the Decision of the State Council and the CPC Central Committee about Actively Promoting the Development of Modern Agriculture and Solidly Building a New Socialist Rural Areas(2007)

36 Documents (2) The Decision of the State Council of the CPC Central Committee about Accelerating Forestry Development” on June 25, “reform of the collective forestland tenure,” in its working report of the 17 th National People’s Congress of Communist Party of China was held in October 2007 New Government: push the reform of collective forestland tenure in June 2008

37 Goals Forest resource – Quality – Quantity Rural households’ income and new rural construction

38 What Define the collective forestland tenures Supporting policies – Insurance – Reduce tax and fee burden – Credit – Forestland transfer – Tree transfer

39 process Reviewing background of collective forestland tenure Democracy – 2/3 representatives or all of farmers – Scenarios – Governmental functions Certification – Signatures – Governmental improvement

40 Action 14 provinces and municipalities and will be gradually extended to the whole country.

41 Timber supply SBT other 4 plain- ps SCRs SWNW NE

42 Afforestation area Afforestation area of Southern collective regions weight

43 investment weight Investment of Southern Collective Forest Regions

44 National forest resource survey ChinaCollective forest region Four plain area Allstate collecti veAllstate collecti veAllstate colle ctive Early 1960forest98.87n.a 57.02n.a 16.74n.a forest89.67n.a forest plantation forest plantation forest plantation forest plantation Forestland productivity

45 1973~761977~811984~881989~931994~ ~ 2003 all All state n.a collective n.a Collectiv e forest region All state n.a collective n.a plain provinces All state n.a collective n.a Forestland use ratio

46 Forest contribution to rural households’ income Forest income(Yuan/PA Weight(%)

47 Ice storm But Ice Storm in late 2007 and early 2008 in the south of China How ice storm affects – Forest resource management? – Farmers’ confidence s ? – Reform of collective forestland tenure? – Long term vs short term??

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51 Progress(1) 10 provinces—completed the defined collective forestland tenure – Fujian, Jiangxi, Liaoning, Zhejiang, Yunnan, Hebei, Anhui, Hubei, Chongqing and Guizhou 13 provinces-Defining – Hunan, Guangxi, Inner Mongolia, Heilongjiang, Jilin, Gansu, Hainan, Henan, Qinghai, Shanxi, Shaanxi, Jiangsu and Sichuan Pilot stage – Beijing, Tianjing, Shandong, Guangdong, Xinjiang, Tibet, Ningxia

52 Progress(2) By the end of 2009 – The defined area: 1.77 billion Mu 64.7% of billion mu – Certifications million copies area: 1.4 billion Mu 51.2%

53 Judgments of the current reform (1) Updating the reform of the early 1980s Household management

54 Judgments of the current reform (2) Forestland tenure arrangement is not the key, The key is the relevant forest management institutional arrangements, such as tax and fee, market arrangement Government-dominated NO large-scale deforestation Incomplete reform

55 Conclusions and discussions (1) Push the reform step by step Different stakeholders’ participation From government dominated to local farmers’ dominated Privatization is NOT feasible alternative

56 Conclusions and discussions (2) Transfer of forestland and forest resources should be reasonable Cooperation and economy of scale Compensation fee standard Budget for the reform Reduce the scale of governmental agencies

57 Conclusions and discussions (3) The reform of forestland tenure is the necessary condition, NOT ALL for forest resource management The effect of the current reform is not clear Next Steps--??

58 谢谢 ! Thanks!


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