Economic Development livelihoods Conservation Forest values Biodiversity Protected areas Poverty reduction Making the Law Accessible and Enforceable: How Laws can Help to Address the Forest Governance Challenge Nalin Kishor FLEG Coordinator, The World Bank Sept. 12, 2005

ESSD Forests “ What we are doing to the forests of the world is a mirror reflection of what we are doing to ourselves and to one another ” Mahatma Gandhi (cit. WDR 2003) Forests are central to the poverty reduction mission of the Bank  1.6 billion rural people are dependent upon forests to some extent.  1 billion out of 1.2 billion extremely poor depend on forest resources for part of their livelihoods  350 million people are highly dependent on forests.  60 million indigenous people are almost wholly dependent on forests. Source: World Bank Forests Strategy and Policy, 2002.

ESSD Forests Governance, institutions and welfare Governance is defined as the exercise of authority through formal and informal traditions and institutions in the management of a country’s economic and social resources to sustain and improve welfare and the quality of life for its citizens. Institutions are: (i) the rules, including behavioral norms, by which agencies interact, and (ii) the organizations that implement rules and codes of conduct, to achieve desired outcomes. (WDR, 2002)

ESSD Forests What is Law? Law, in politics and jurisprudence, is a set of rules or norms of conduct which mandate, proscribe or permit specified relationships among people and organizations; as well as punishments for those who do not follow the established rules of conduct.

ESSD Forests What is Good Governance? Good governance is epitomized by predictable, open, and enlightened policymaking (that is, transparent processes); a bureaucracy imbued with a professional ethos; an executive arm of government accountable for its actions; and a strong civil society participating in public affairs; and all behaving under the rule of law (World Bank 2000, fn1, pg. xx).

ESSD Forests Why is improving forest governance and control of illegal logging important?  Legal producers face unfair competition  Governments lose tax income (globally USD 5- 10b per annum)  Trade unions concerned about violation of labor laws  Livelihoods of local communities are threatened  Threat to the protection of natural parks and critical habitats  Associated with social conflicts  Provides a source of “slush funds” for bribery and graft  Fuels drug-trafficking, gambling, speculation, etc.

ESSD Forests Considerations in combating illegal logging, corruption and other forest crimes  Illegal logging and corruption in the forest sector are symptoms of weak/poor governance. Thus, first and foremost, need to focus on the fundamental or underlying causes (e.g., fuelwood and bushmeat demand by rural populations).  The forest sector is embedded within the larger economy. Thus, efforts to halt illegal logging and improve forest law enforcement and governance need to be firmly secured to the broader efforts to promote good governance. (Keep a focus on the cross-sectoral linkages).

ESSD Forests Rule of Law: Country Classification Congo, DR Kenya Sierra Leone Nicaragua Russia Venezuela Zambia Malawi Cote d Ivoire PNG Brazil Zimbabwe Philippines China Ghana India Tanzania Thailand Botswana Costa Rica Malaysia S. Korea Chile US Japan Germany Canada

ESSD Forests Promising developments to address the forest governance challenge in Africa Domestic  Willingness of governments to take steps to improve forest governance and address corruption, including overhauling forest laws and legislation (e.g., findings from July Libreville workshop on AFLEG).  Stronger, well-informed and focused civil society groups than ever before and emerging fora for participatory inputs in management of the forest sector (e.g., IUCN led efforts to strengthen civil society). International  Incorporation of forest sector concerns in PRSPs  FLEGT, AFLEG, US Presidents Initiative against illegal logging in the Congo.  Independent Forest Monitor (IFM)

ESSD Forests Promising developments and initiatives, conducive to addressing the forest governance challenge in Africa World Bank  Addressing FLEG issues is a high priority for the Bank’s 2002 Forests Strategy, and strongly reflected in the Africa regional strategy esp. that for Central Africa, including project implementation.  FLEG program, including AFLEG, being managed by the Bank (funded by EU).  Initiative to review forest legislation in African countries and the development of Forest Law Manual by LEGEN.  Economic and Sector Work (ESW) initiated by the ESSD Forest Team as a start to developing a coherent Bank strategy and approach to FLEG.