Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH1

IUFRO – Taskforce “Illegal Logging and FLEG(T)-processes”

Andreas OttitschNational School of Forestry, UCLAN

TOTAL RESOURCE

TOTAL WOOD USED

DIFFERENCEDIFFERENCE/

TOTAL USED (%)TOTAL

RESOURCETOTAL WOOD

USEDDIFFERENCE

DIFFERENCE/ TOTAL USED (%)

Austria 23,874,000 32,588,724 -8,714,724 -26.74 27,084,966 32,588,724 -5,503,758 -16.89

Belgium 7,373,628 8,582,100 -1,208,472 -14.08 6,348,247 8,582,100 -2,233,853 -26.03

Denmark 1,591,544 1,123,000 468,544 41.72 1,774,295 1,123,000 651,295 58.00

Finland 79,763,061 77,409,300 2,353,761 3.04 83,311,582 77,409,300 5,902,282 7.62

France 42,419,118 37,540,900 4,878,218 12.99 42,582,500 37,540,900 5,041,600 13.43

Germany 46,485,000 60,757,434 -14,272,434 -23.49 48,524,810 60,757,434 -12,232,624 -20.13

Greece 994,353 1,564,573 -570,220 -36.45 830,292 1,564,573 -734,281 -46.93

Ireland 3,562,740 3,475,392 87,348 2.51 3,619,934 3,475,392 144,542 4.16

Italy 10,382,096 14,352,954 -3,970,858 -27.67 10,286,466 14,352,954 -4,066,488 -28.33

Luxembourg 3,634,773 514,300 3,120,473 606.74 3,331,909 514,300 2,817,609 547.85

Netherlands 2,194,300 887,800 1,306,500 147.16 2,114,638 887,800 1,226,838 138.19

Portugal 9,854,000 11,003,000 -1,149,000 -10.44 9,231,201 11,003,000 -1,771,799 -16.10

Spain 21,258,000 21,126,200 131,800 0.62 21,157,770 21,126,200 31,570 0.15

Sweden 86,415,320 83,386,560 3,028,760 3.63 88,637,160 83,386,560 5,250,600 6.30

UK 9,946,261 11,617,300 -1,671,039 -14.38 9,854,400 11,617,300 -1,762,900 -15.17

365,929,538 -16,181,344 365,929,538 -7,239,368

TOTAL(%) -4.422 TOTAL(%) -1.978

2003 TRADE FROM DATABASE EFI

EU

15

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2003

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH2

IUFRO Taskforce“Illegal Logging and FLEG(T) - Processes

• International Union of Forest Research Organisations (IUFRO) and IUFRO-Taskforces

• Objectives and Activities of IUFRO-TF “IL & FLEG(T)”

• Examples from compilation of scientific work• Options for Co-Operation and Participation

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH3

International Union of Forest Research Organisations (IUFRO)

• Scientific co-operation and networking since 1892– 2007: 700+ member institutions, 110+ countries, 15.000+

individual scientists involved– Forest science, education, training

• 6 Scientific Divisions (organised along scientific disciplines)– www.iufro.org

• 10 Taskforces• Purpose of IUFRO-Taskforces

– Co-operation on specific issues of relevance to ALL disciplines within forest sciences

– Intensification of scientific networking– Identification of contributions of science to societal debate

Funding:Except for IUFRO-Secretariat in Vienna, all IUFRO-

activities are based on voluntary contributionsby scientists on time & resources paid for by their

employers(service to scientific community, scholarly activities….)

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH4

WHY a IUFRO-Taskforce?• “Illegal Logging” at centre of national and international

forest sector debates

• Large amount of information produced

• Relatively scarce body of “peer-reviewed” publications– E.g. Search result “Science Direct” for “illegal logging” 1996 –

2007: 20 publications– Much of the available information (e.g. NGO-reports, published

consultant reports) is “grey literature” as far as scientific community is concerned!

• Research at some centres (e.g. CIFOR), and MANY individual institutions

• Relevant research across many disciplines:– Policy, Economics, rural development, sociology– Ecology (species, habitats)– Technical disciplines (e.g. remote sensing, DNA-tracing)– ……………

• Need for more overview

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH5

IUFRO-Taskforce“Illegal Logging and FLEG(T)-Processes”

2006 - 20101. Establishment of a network of scientists dealing with research issues of

relevance to illegal logging and instruments to combat this problem

2. Compilation of current state of the art in scientific analysis of factors and issues in the illegal logging debate.

i. Scientific studies on causes and forms of illegal loggingii. Analysis of methods to assess extent of illegal logging and

trade in illegally logged forest productsiii. Scientific studies on consequences of illegal logging and

tradeiv. Scientific studies on existing and planned countermeasures

3. Awareness raising about the possible contributions of science to the illegal logging debate

4. Publication of results to scientific and wider public audiences

COMPILATION OF EXISTING APPROACHES

IDENTIFICATION OF NEW CONTRIBUTIONS

DEVELOPMENT OF THEORY & METHODOLOGY

NO STATEMENTS ON BEHALF OF SCIENTIFIC COMMUNITY!

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH6

Activities

• Kick-off meeting February 2006 (Forest Academy, St. Petersburg, Russian Federation)– Identification of research issues

• Scientific networking (electronic contact, meetings, visits)

• Collection of relevant research results– Focus on peer-reviewed materials– Developments in THEORY & METHODOLOGY

• Workshops, meetings, publications

• Scientific Conference early 2008– Science in the Illegal Logging Debate

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH7

Examples 1Competition between Formal and Informal

Sectors• Economic actors base decision on sector

participation on expected costs and rewards• Dominating “informal” sector is a disincentive to

enter “formal” sector– Higher costs, lower benefit, lower competitiveness – Maladaptive cycles

• Governmental investment in law enforcement must be SUSTAINED over time to strengthen formal sector– Problem for poor countries with weak governmental

structures (legislative, executive, judicature)

• Outside influence (e.g. VPAs) faces same problem!Mc Allister et al. 2007

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH8

Source:Mc. Allister R.J., Smajg A. and Asafu-Adjaye J. 2007. Forest logging and institutional thresholds in developing south-east Asian economies: A conceptual model. Forest Policy and Economics, Volume 9, Issue 8, May 2007, Pages 1079-1089

Any effort must be LARGE enoughand LONG enough to “push” system

to desired level

TOO LITTLE

TOO SHORT

IMPLICATIONS FOR VPA-implementation!

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH9

Examples 2Exchange Rates and Illegal Logging

• Low value of national currency “positive” for export – Forest rich countries may use currency rates to support national forest sector

(legal & illegal actors benefit)

• Result of “alternative” currency influx:– Increased taxation income– Higher public budgets– More resources for law enforcement– Exchange rate rise– Lower profitability and relative importance of forest product exports– Increased economic development raises domestic demand for forest products

• Possible sources for currency influx– Rise in prices for agricultural commodities– Borrowing– OIL PRICE BOOM

• Positive and negative consequences…– More resources for law enforcement– Other economic sectors become more interesting for “rent seekers”– Economic development and demand for other land uses increase pressure on

forest resources

Wunder, 2004

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH10

Source:Wunder S. Macroeconomic Change, Competitiveness and Timber Production: A Five-Country Comparison. World Development Vol. 33, No. 1, pp. 65–86, 2005

• Economic development facilitates enforcement

• Higher currency value reduces export competitiveness

• Domestic demand reduces export of non-processed material

• Additional policies to discourage roundwood export may be introduced (quota, taxes, bans)

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH11

Examples 3Recommended literature!

• Tacconi L. (2007) Illegal Logging – Law Enforcement, Livelihoods and the Timber Trade, Earthscan, London, Stirling VA

Excellent collection of articles on a wide array of issues of relevanceto the illegal logging debate, based on CIFOR’s research in Asia andLatin America

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH12

Planned outputs

• Compilation of existing scientific work – Soon available from TF-webpages!

• Scientific networking• More peer-reviewed publications• Better theoretical conceptualisation of issues • More interest within research community• Negotiations on scientific book focussing on

FLEG(T)- processes• New research activities

– Theory-based evaluation of existing policies and processes

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH13

Options for Co-Operation and Participation

• Information about relevant research projects• Information about publications

– Peer reviewed papers– Scientific books

• Identification of “grey” material suitable for peer-reviewed publication– Reports, papers prepared for / published by

national/international institutions (GO & NGO)• Objective is to encourage authoring of more peer-

reviewed material!• Recognition of methods used in support of international

processes

Chatham House, 10th IL-Stakeholder Update – Andreas OTITSCH14

Further Information:

IUFRO-Taskforce “Illegal Logging and FLEG(T) – processeshttp://www.iufro.org/science/task-forces/flegt

Andreas OTTITSCHEmail 1: AOttitsch@uclan.ac.uk (Aug 1st: Andreas.Ottitsch@cumbria.ac.uk)Email 2: Andreas.Ottitsch@a1.net

National School of ForestryNewton Rigg, CA11 0AH, Penrith, UKTel.: +44 1772 894223 / +43 664 320 16 28 (mobile)

August 1st 2007 – Launch of UoCwww.cumbria.ac.uk