1. GMS BCI Symposium 27 April 2006 1 “Non-timber forest products (NTFPs) and rural livelihoods in Lao PDR: reducing poverty through forest development and conservation interventions ” Andrew W. Ingles 1.Significance of NTFPs in rural livelihoods 2.Relevance of NTFPs to both biodiversity conservation and poverty reduction 3.Evidence of livelihood benefits from the promotion of sustainable NTFP development in Lao PDR 4.Opportunities

2. GMS BCI Symposium 27 April 2006 2 Significance in rural livelihoods: NTFP dependency NTFPs from forests, shrublands, wetlands, re-growth from shifting cultivation Income generation Food securityOther non-cash inputs to Households After rice, wild forest foods dominate the daily diet of rural people  More than 450 edible species  Provide the bulk of animal protein and micro- nutrient intake NTFPs provide a safety net in bad times On average, NTFP sales generate about 50% of cash income Allows for purchases of goods and services for consumption or investment, often where there are few alternative income sources Indirectly supports food security by funding rice purchases  Fuel wood  Medicine  Building material  Tools & handicraft  Resins & dyes  Valued at 12% of an average household budget

3. GMS BCI Symposium 27 April 2006 3 Significance in rural livelihoods: NTFP dependency … 80% of the population have rural livelihoods 50 - 80% of households in remote, upland areas rely on NTFPs for income generation Poorest families and women are the most dependent on NTFPs Economic value of NTFPs consumed per (upland) household estimated at between $398 – 525 per annum (Sekong Province) Subsistence use of NTFPs estimated at 30 - 40% of Gross Domestic Product

4. Forest & food security: First attempt at a nationwide survey was undertaken by UN World Food Programme in 2004  80% of households have some dependency on forests for food  41% of villages dependent on food from NBCA and forests within a 20 km radius  24% of villages are dependent on forest foods but have degraded forests and are suffering food insecurity

5. Food security & forest conservation:  WFP has identified 2,482 villages that require a priority intervention in food aid as a result of declining forests (areas shaded red)  NBCAs are the cornerstone of forest conservation in Lao PDR (areas shaded green)  There is an overlap of food security concerns and forest conservation interests  A clear case exists for the promotion of sustainable use of NTFPs and a food for activity modality for identified villages in BCI sites

6. GMS BCI Symposium 27 April 2006 6 Ban Nampheng (40 households): pilot site for an NAFRI/ IUCN NTFP Project (1996- 2001) … The NTFP situation in 1996: Poor prices from traders –collectors lacked market information –traders advanced loans against future sales Lack of secure access rights to wild resources No grading and processing (cardamom) Competitive selling by bundles (bitter bamboo shoots) Lack of credit services Limitations on development due to heavy workloads for women

7. GMS BCI Symposium 27 April 2006 7 NTFP Project interventions 1996 - 2001 What was done Ban Nampheng Domestication of NTFPs Forest Land Allocation & NTFP resource management planning Marketing group & village fund Production/ processing of NTFPs Rice Banks Cardamom Bitter bamboo shoots Edible bamboo grubs Broom grass Rattan Paper mulberry Benzoin Sticky bark

8. GMS BCI Symposium 27 April 2006 8 Interventions by the NTFP Project Village rice banks: Replaced the need to over-exploit NTFP resources and sell too cheaply to traders because of loans Forest land allocation: Provided secure access and use rights for a defined user group, allowing for (better) harvesting rules and control Marketing groups: Collusion, knowledge of market prices, selling by weight resulted in massive increases in income (income multiplied by 5 for limited additional inputs) and generated village development funds (10% tax on sales) Cardamom grading and processing: Significant increase in incomes (quantity and quality of product increased through harvesting rules and resource management and drying and grading increased the returns) Drinking water supplies: Reduced the time spent by women and children in fetching water to free up time for participation in NTFP collections and marketing groups Women’s savings group: Provided credit for local initiatives and strengthened collaboration within villages

9. GMS BCI Symposium 27 April 2006 9 Results on livelihoods … Ban Nampheng Supported by projectFunded by NTFP FundPurchased by individuals (through credit from NTFP Fund) - Rice bank (1997) - 3 clean water taps - 2 room school (1998) - Electric generator for village power supply (1999) and fuel to run it (ongoing) - Meeting room (2001) - Village food storage (2002) - Credit fund - Salary for 3 teachers - Corrugated roof for village market space - Fund balance $2,400 - 2 Dryers for mushrooms and other NTFPs (2000, 2001) - Rice mill - 2 Tractors - 1 small truck

10. GMS BCI Symposium 27 April 2006 10 Results on livelihoods … Ban Nampheng 1996-2002  13 HHs graduated one wealth class 2002-2006  7 HHs graduated one wealth class, previous gains held, 1 HH slipped a wealth class

11. GMS BCI Symposium 27 April 2006 11 Results on livelihoods … Ban Nampheng Development indicators199620022006 Food security25-30 households lacked rice for 3-4 months, during which time they had to leave the village to hire out labour or cut timber illegally Now rice is “not much worry” and no longer need to hire out labour or cut timber Secure Formal education30 children67 children Agriculture & forestry0 ha of paddy rice 45 ha of upland cultivation Forests not allocated 5 ha of paddy rice 30 ha of upland cultivation 515 ha of allocated forest 10 ha paddy rice 30 ha upland cultivation 520 ha of allocated forest 5 ha fruit orchards 4 fish ponds Animal husbandry60 cattle 10 buffalo 13 goats 30 pigs 100 poultry 28 cattle 12 buffalo 55 goats 40 pigs 200 poultry 17 cattle 19 buffalo 12 goats 120 pigs +1,000 poultry

12. GMS BCI Symposium 27 April 2006 12 Opportunities 1. NTFPs as poverty “trap” or an “escape ladder”? In Ban Nampheng … Proportion of cash income from NTFP sales is holding over time (from initial increase) Significant number of households graduated from the poorest wealth class and (all but one HH) held the gain Food security has been achieved, along with improvements in health and education New economic activities funded by private and common NTFP funds 2. Side-ways and up-ways spread from this and other pilot sites? Ban Nampheng is becoming very well known and receives GoL, project and privately sponsored visits to see and learn about the sustainable development that has occurred

13. GMS BCI Symposium 27 April 2006 13 Opportunities in Lao PDR 3. More than a decade of experience with NTFP interventions, mostly in the context of NBCA and surrounding forest use - creating a wealth of experience about : –How to identify, qualify and quantify the role of NTFP use in local livelihoods –How to facilitate group processes for NTFP production and marketing –How to domesticate wild NTFPs –How to develop forest management rules and regulations, focused on NTFPs, using participatory processes 4. A network exists of 60 organisations with interests in NTFPs

14. GMS BCI Symposium 27 April 2006 14 Conclusions The BCI should: –be aware of the important role of NTFPs in rural livelihoods –recognise the significant opportunities for achieving both conservation and poverty reduction objectives by supporting the sustainable development of NTFPs –develop and support integrated efforts to achieve food security, increase cash income, and conserve forests through NTFP- related interventions More work is required to document the impact of NTFP interventions on: –forest biodiversity –social power and equity issues THANKS