1. Politics of Forests: Northern Forest Industry Regimes in the Age of Globalisation Bjørnar Sæther

2. Three topics Forest industry as motors of forest based internationalisation Image production as modifier of material production Changes in regional forest industry regimes

3. Three regions Canada (east and west) The Nordic countries (Finland, Sweden and Norway) Russia (east and west)

4. Developments among forest industrial companies Concentration and restructuring of the major companies in N-America and Europe M&A across the Atlantic European and N-American investment in Asia (S-Korea, China, Thailand)

5. Nordic forest industry Has established a dominat position within the European forest industry Has acquired production capacity in N- America ( Consolidated Paper, Blandin, Fletcher Paper) Has established production capacity in Asia (China, S-Korea, Thailand) Has increased its global influence

6. Why concentration? Increase shareholder value through higher and more stable profit across the business cycle Concentration increases market power vs. publishers (for printing paper) Flexibility and economies of scale Cost reduction i.e. transport

7. Forest regimes Regimes consist of actors that influence the development of the forest industrial sector; companies, suppliers, customers, authorities, finance and NGOs

8. Concentration vs. forest regimes How does these changes in the structure of the forest industry influence the forest industrial regimes? –Shareholders vs. other stakeholder groups like labor –Homogenisation of the regional forest industrial models ?

9. Shareholder value The influence of shareholder value as a management paradigm has been marked on both sides of the Atlantic Nordic producers have adjusted towards Anglo-American practices in dealing with shareholders and the financial community

10. Increases in payment of dividend among Nordic producers Constant dividend when profit is low One shareholder class Reduced importance of supervisory boards

11. Labor-management Good relations between labor and management has been a source of competitveness to Nordic industry Labor representatives have seats on the board in Sweden and Norway Influence of shareholder value threatens these relations with focus on cost cutting

12. Some reports of import of Nordic labor- management practices to British Columbia Global agreement between Norske Skog and International Federation of Chemical Workers which gives right to collective bargaining and minimum health and safety standards

13. Homogenisation A trend towards homogenisation between Canada and the Nordic countries in: Labor- management relations Influence of shareholder values Trend towards homogenisation is supported by debates on sustainable forestry practices

14. Diversity Regional material flows Country specific political-institutional structures Forest ownership Sunk costs Differences in environmental concern Competition between places for new investment

15. Conclusion One or several forest-industrial regimes? –To early to declare the death of the Nordic model –Still strong Soviet legacy in Russia –Canadian forest industry under pressure from US and environmentalists