2. Non-State Global Governance: Is Forest Certification a Legitimate Alternative to a Global Forest Convention? Steven Bernstein Benjamin Cashore University o f TorontoYale University November 2001

3. Central Questions: Is forest certification a viable alternative to a Global Forest Convention? What is required for a non-state Market Driven (NSMD) Governance System to gain rule-making authority?

4. Main Argument  As a non-state form of governance, certification requires political authority beyond the state. Legitimacy in the eyes of its primary audiences (producers and purchasers down the supply chain) is required for it to be viable as a form of governance to promote sustainable forest management.

5. International Legitimacy Fitness with existing international norms and institutions of global environmental and economic governance. Domestic Legitimacy Legitimacy of NSMD Legitimacy of the content of the particular certification scheme

6. Conceptual/Background Issues: NSMD as a source of authority

7. Conceptual/Background Issues: Forest Certification Market-driven logic Recognizes those companies and landowners who voluntarily operate “well- managed” or sustainable forestlands Conception 1: Creates upward pressure on environmental standards (FSC) Conception 2: Gives approval to existing sustainable practices; maintains business influence (CSA, SFI, etc.)

8. Conceptual/Background Issues: Forest Stewardship Council Formed in 1993 following Rio Spearheaded by WWF Headquartered in Oaxaca, Mexico Accredits organizations (certifiers) that perform evaluations to certify company matches 10 principles Regional standards developed based on principles

9. Forest Stewardship Council

11. International Legitimacy: Fit with international social structure Rules and norms compete for social fitness to be acceptable to relevant audiences Current social structure in area of environment can be characterized as “Liberal Environmentalism.” –Sovereignty over resources (Political) –Free trade and open markets (Economic) –Polluter Pays and Precautionary Principle (Management)

12. International Legitimacy: Compatibility with multilateral institutions Failure of international negotiations –Sovereignty –Trade –Aid –Current stage, UNFF Therefore discussed by states in relation to trade and environment issue, not in relation to a forest treaty

13. International Legitimacy: Compatibility with multilateral institutions WTO and trade negotiations primary setting Specifically under Technical Barriers to Trade agreement (TBT) Committee on Trade and Environment discussions unresolved. Open in principle, but conflicts remain. Main issue is PPMs Voluntary schemes possibly protected from trade action, but pressures for harmonization.

14. Distinguishing different kinds of legitimacy Distinguishing different types of “audiences” who give, or don’t give legitimacy Distinguishing legitimacy “achievement” strategies certification programs employ Domestic/Regional Legitimacy: How is rule-making authority granted?

15. Certification Program (NSMD Governance System) Types of Legitimacy Legitimacy Granting Model for Forest Certification Governance Systems Pragmatic Profit maximizing behaviour; Short term material self interest Often result of boycott campaigns Not very durable

16. Moral Principled beliefs “Right thing to do” More durable than pragmatic Types of Legitimacy Certification Program (Governance System) Legitimacy Granting Model for Forest Certification Governance Systems

17. Cognitive “to do otherwise is unthinkable” “understandable” -durable Types of Legitimacy Certification Program (Governance System) Legitimacy Granting Model for Forest Certification Governance Systems

18. Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems

19. External Audiences: Identifying those that have role in granting authority Tier 1: Immediate Audience Tier 2: Civil Society Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems

20. Tier 2: Civil SocietyTier 1: Immediate Audience Econo mic- Dema nd side Econo mic – Suppl y Side State – as actor State - as institu tion Consume r behavior Political culture Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems Social Organiza tions

21. Manipulation Econo mic- Dema nd side Econo mic – Suppl y Side State - as institu tion Consumer behavior Tier 2: Civil SocietyTier 1: Immediate Audience State – as actor Most Durable Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems Achievement Strategies Social Organiza tions Political culture Change external audience support: e.g. create buyers groups, boycotts, advertising

22. Illustration of Model FSC: Advertising as Manipulation Techniques

23. Illustration of Model FSC: Advertising as Manipulation Techniques

24. End of Manipulation Achievement Strategy: Carrot Replaces Stick

25. Conform Econo mic- Dema nd side Econo mic – Suppl y Side State - as institu tion Tier 2: Civil SocietyTier 1: Immediate Audience State – as actor Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems Achievement Strategies Consumer behavior Social Organiza tions Political culture Adapt to external pressures: i.e. Change certifications rules and procedures to adapt to concerns from external audiences

26. Inform Econo mic- Dema nd side Econo mic – Suppl y Side State - as institu tion Values and Attitude s Tier 2: Civil SocietyTier 1: Immediate Audience State – as actor Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems Achievement Strategies Advertise Target information to groups likely to support you Consumer behavior Social Organiza tions

27. Illustration of Model FSC: Advertising as Informing Technique

28. Manipulation Conform Tier 2: Civil Society Select Certification Program (Governance System) Pragmatic Moral Cognitive Types of Legitimacy Least Durable Most Durable Legitimacy Granting Model for Forest Certification Governance Systems Achievement Strategies Econo mic- Dema nd side Econo mic – Suppl y Side State - as institu tion Tier 1: Immediate Audience State – as actor Consumer behavior Social Organiza tions Political culture

29. Legitimacy granting dynamic Certification dynamics about much more than simply profit maximizing behavior Intersection of self interest, moral and cognitive support from a wide range of external audiences Role of civil society –as consumers and value holders is important What framework recognizes

30. Each certification program (private governance system) had a core audience who supported it for moral reasons This moral support must be maintained, which constrains certification programs in their efforts to seek legitimacy from non-core audiences A certification program needs to achieve either pragmatic or moral legitimacy from economic supply side and demand side audiences to succeed Preliminary Propositions

31. Witnessing a wide range of innovative policy instruments to address global environmental challenges. Those who wish to see effective and durable governance in forest certification need to understand better the processes through which long-term legitimacy is granted and why some regions more open to certification than others This “analysis of policy” a crucial step in developing rigorous “analyses for policy”. Practical relevance