Program of Work and Financial Reporting-CY2008

(completed January 2009)

Profor is a multi-donor trust fund supported by:

This document is a product of the PROFOR Secretariat. It does not necessarily reflect the views of PROFOR’s donors.
TABLE OF CONTENTS

Table of Contents i
Overview of the PROFOR Portfolio 1
Developing Programmatic Support 1
Streamlining Administrative Processes 1
Improving Quality Monitoring 2
Communications and Knowledge Management 2
Portfolio Achievements and Impacts 3
Knowledge Synthesis 3
Informing Policy Debate: National Level 5
Informing Policy Debate: International Level 6
Networking and Coordination 6
Budget and Funding Projections for PROFOR 8
Leveraged Funds 9
Staffing 9
Annex I. Overview Chart of Activities According to Thematic Area 10
Annex II. Activity Reports for 2008 16
Livelihoods 16
Forest Resource Access and Livelihoods 16
Piloting of Poverty-Forest Linkages Toolkit 19
Private & Community Forestry-Developing Livelihoods on basis secure property rights in S.E. Europe 28
Forest Enterprise Information Exchange (FEINEX) : A pilot in India as part of the Forest Connect
Initiative 32
Forest Connect: Developing a toolkit to facilitate support for forest SMEs 35
Strengthening the value chain for indigenous and community Forestry operations 40
Policies and Incentives for Miombo Management 44
Governance 46
The Role of Informal Institutions and Forest Governance 46
Institutional Choice and Recognition in Forestry: Effects on Formation and Consolidation of Local
Democracy 49
Reforms for China’s Collective Forests: Analytical Support on Tenure, Rural Institutions, Forest Policy and
Regulation 52
Enhanced Financing Alternatives for SFM 54
The Next Generation of Certification of Ecosystem Markets 54

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 Designing A Framework for Carbon Payments for Afforestation/Reforestation in Small Scale Forest
Plantations in Mozambique: A Contribution Towards A Forestry Climate Strategy For Southern Africa 57
Preparing for REDD in dryland forests: Investigating the options and potential synergy for REDD
payments in the Miombo Eco-region 62
Analysis of the NLBI on Financial Needs and Available Resources 65
Analysis of Forest Land Use Options for Reducing Carbon Emissions from Deforestation and Degradation
in Indonesia 67
Cross-Sectoral Cooperation 70
Measuring Biodiversity and Forest Conservation Production and Livelihood Outcomes in Multifunctional
Agriculture: Forest Landscape Mosaics 70
Analyzing Paths to Sustainability in Indonesia: Smallholder Livelihoods and Adaptation Strategies at the
Forest Edge 73
Knowledge Management and Networking 77
Mapping Emerging Ecosystem Service Markets Matrix 77
Global Forest Leaders Forum 79
Developing Certified Forests, Forest Products and Markets for China: International Conference 82
Cameroon Sector Policy Reform Report 84

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 PROFOR in 2008
Overview of the PROFOR Portfolio

Following on the outcomes of the 13th Conference of Parties (COP) of the UNFCCC in Bali in December
2007, the past year saw impressive international advocacy and consensus-building regarding addressing climate
change, and for the first time, consideration of reducing emissions from deforestation, sustainable forest
management, reforestation, afforestation, and forest and land degradation, adaptation, technology development
and transfer, and provision of financial resources in support of developing countries’ actions. The international
community (to include donors, the World Bank and UN agencies) has focused much attention on developing
mechanisms to generate and manage new resources, and ensure that all the values of forests are maximized.
The PROFOR Secretariat have remained involved in these processes, in order to ensure, going forward, their
relevance and added value as the international financing for SFM landscape evolves. Meanwhile, 2008 has been
a year of strong growth for PROFOR: activity commitments more than doubled from $1.2 million yearly to $3
million for the fiscal year, with the areas of Livelihoods (with 7 activities) and Innovative Financing (with 7
activities) being the leading thematic areas. For the year, the PROFOR portfolio comprised 21 activities under
implementation. Although many activities are relevant to more than one thematic area, for indicative purposes
based on their predominant focus, we consider that they are distributed according to thematic area is as follows:
livelihoods - 7; governance - 3; innovative financing - 5; cross-sectoral cooperation - 2 and knowledge
management - 4. Twelve activities closed over the year.
Developing Programmatic Support
With the Advisory Board’s backing at the last meeting, this year the Secretariat invested much time in
developing a new programmatic window to support World Bank regions’ work plan priorities that fit with
PROFOR’s priorities. The objectives were several: 1) to better promote PROFOR’s objective and existing
analytical work among Bank sectoral staff and managers, 2) to advance the cross-sectoral considerations of
sustainable forest management by bringing in social development, agricultural and watershed staff into
programmatic discussions and 3) to create cross-fertilization of knowledge of sectoral work across regions. The
result was a robust demand for support from all regions, with 15 potential activities identified, 13 of which are
finalizing their concept descriptions for a total of $1.7 million in commitments. This compares with six projects
in support of World Bank regions over the course of 2008. Seven of the newly identified activities have
predominantly cross-sectoral benefits, although clearly are also relevant to PROFOR’s other thematic areas.
Streamlining Administrative Processes
This year, the Secretariat has sought to simplify and standardize the administration of activities. This has
included streamlining Concept Notes and Activity Completion Reports with each other; implementing the
donors’ desire to have budget reporting better reflect cost categories, amount and origin of co-financing, and
duration of each PROFOR activity. The Secretariat is developing online mechanisms for requests for, and
reporting back on, PROFOR funding. An operations analyst has also identified, to start in CY 2009, to
continue progress on these trends.
Rationalizing Trust Funds: Alignment of PROFOR and FLEG: At last year’s meeting, PROFOR donors
expressed a desire to see consolidation of PROFOR and the Forest Law Enforcement and Governance
Initiative, mentioning that cumulative contributions would not decrease. Over the course of the year, the
PROFOR and Forest Law Enforcement and Governance (FLEG) teams spent a significant amount of time
analyzing the merits of an alignment of the two trust funds and how this could be operationalized. The analysis
pointed to many benefits and virtually no downsides to an alignment. The team identified revising PROFOR's

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operational guidelines to reflect the alignment as most effective at this stage, with the option of further
institutionalizing this in the post-2010 administrative agreement if deemed necessary. A preliminary revision was
shared with the donors in mid-July and their feedback was incorporated. The final revisions were shared with
donors in early January 2009.
Improving Quality Monitoring
This year PROFOR Secretariat played a pro-active role in reviewing the quality of PROFOR products. Along
with experts in the field, Secretariat staff were actively involved in reviewing proposals and providing technical
inputs as well as defining suitable intermediate and final products, and sharing feedback on knowledge
management components of selected activities. All intermediate and final products received from activity
proponents were closely reviewed by the Secretariat and experts within the Bank and feedback was provided for
inclusion. One example of a deliverable that included PROFOR feedback was the Occasional Paper from the
Center for International Forest Research (CIFOR): Tenure Rights and Beyond: Community Access to Forest
Resources in Latin America, a deliverable of the Forest Resource Access and Livelihoods activity. As an
example of ensuring quality at the design phase, the secretariat worked with two overlapping proposals from
Indufor and a joint International Institute for Environment and Development (IIED)/CIFOR one to maximize
the outcomes. The latter process resulted in the agreement that Indufor would work from the results of IIED’s
project (summarizing lessons of the project’s contribution to a forestry climate strategy for Southern Africa) to
prepare a “climate strategy report”. The needed collaboration throughout the implementation of IIED’s
activity and in the dissemination afterwards was clearly stipulated in Terms of Reference.
Communications and Knowledge Management
In 2008, a major communications undertaking was the support given to the Global Forest Leaders Forum (see
Networking and Coordination further below) which could only be successful if strong and balanced stakeholder
and leadership participation took place. An active communications part in the Forum also helped to correct
some Indigenous Peoples’ criticism of the World Bank at the conference, which could have undermined the
outcomes of the participatory process.

Communications also lent support to the development of the programmatic window, which had a strong
information-sharing component. It also played a critical role in the networking and coordination which is
described further below (in Portfolio Impacts and Achievements).

There were several occasions for PROFOR to contribute to knowledge-sharing events over the course of 2008,
and using outside gatherings to raise PROFOR’s profile. These include FAO's Asia-Pacific Forestry Week
(April 21-25, Hanoi); Global Forest Leaders Forum (September 16-17, Washington); IUCN World Congress
(October 6-10, Barcelona); Swiss Intercooperation's Forests, Landscape and Governance Workshop (October
29-30, Interlaken); and the CPF's Forest Day on sidelines of COP 14 (December 6, Poznan).

This year, specific activities with a knowledge-sharing objective included the completion of the Ecosystem
Marketplace Matrix (carried over from last year), the Cameroon Sector Policy Reform Report (carried over
from last year), the Developing Certified Forests, Forest Products and Markets International Conference and
the Global Forests Leaders Forum.
Secretariat-led KM. At the last meeting, it was agreed that as the World Bank organizes its forestry work and
instruments further, PROFOR should play an important role as interface between climate change discussions
and sustainable forest management. We tackled this objective by initiating a knowledge product that
summarizes various PROFOR-funded land tenure studies ((specifically the CIFOR Honduras, China Tenure
Reform, and the Brazil Land Administration studies) but with a specific focus on their relevance to sustainable
implementation of REDD initiatives.

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Publication highlights from 2008 include the finalization of the Poverty-Forests Toolkit Case Studies and
Synthesis, publishing the Financing Flows And Needs To Implement The Non-Legally Binding Instrument On
All Types Of Forests. Work began and publishing the Poverty-Forests Linkages Toolkit., for which the final version
incorporating the piloting phase was delivered in October 2008.

Web. Because of security breaches at some of the World Average of total monthly visitors
Bank’s more prominent sites, this year the World Bank 2002-2008
mandated that websites for all World Bank-managed trust 3,294
funds would need to be transferred to World Bank servers. 2,680.50
For the PROFOR site, this process began in the second half of 1,877
2,067
2008 and has hampered our ability to update the site. The 1,392
transfer should be finished by March 2009. The site will be 542
807
able to maintain its independence and image branding but
technical management of the site will need to be transferred to

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Bank information technology staff.

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As mentioned before, PROFOR is also using the web to
streamline its administrative processes and relations with
activity proponents. Development of a special password-protected section for donors is also near completion.
Here donors would be able to access their own agreement documents and consult activity reports.
The number of monthly unique visitors continues to grow, with the year’s average being 3,294 unique visitors
per month.

Portfolio Achievements and Impacts

During the 2006 Advisory Board Meeting, it was recommended that PROFOR focus it analytical work on four
areas:
- synthesizing and building upon an accumulation of knowledge,
- informing policy debate at the national level,
- informing policy debate at the international level, and
- playing a networking and coordinating role among the forestry community (inside and outside the Bank).
- developing innovative tools

While complete details of each activity are included in the project summaries in Annex III, here we would like
to highlight the impacts we have had in the above four domains.

Knowledge Synthesis
Adaptation Study. The impacts of extreme climate events on natural systems and in turn the economy have
been making headlines. The consequences of climate change are becoming more apparent daily, with
potentially severe impacts on forests and livelihoods especially at lower altitudes in seasonally dry regions.
Projected changes include gradual replacement of tropical forest by savannah-type vegetation forms with arid-
land vegetation gaining prominence. This translates into significant biodiversity loss, lower incomes from
agricultural and forest products, and increased rural hunger. The loss of such safety nets has significant social
cost. Given the fact that an increasing proportion of the world’s forests are being owned and/or managed by
communities, it is vitally important to support these forest-dependent peoples in their efforts to manage forest
ecosystems to enhance the resilience of their livelihoods to climate change, maintain carbon forest stocks and
increase carbon sequestration levels.

PROFOR has chosen this area as its flagship activity, aiming to (i) improve understanding of the actual
and potential role forests and trees play in climate change adaptation; (ii) mainstream policy relevant findings

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into key policy processes and strategies (e.g., sector policy dialogue, CAS and PRSP); and (iii) explore
mechanisms for private financing to stimulate tree-based adaptation strategies and climate sensitive forest
management To date the work has included: review of national action plans for adaptation, and development
of a methodological framework that examines the role of trees and forests in local adaptation strategies
(focusing on the incremental risk associated with climate change). The latter part of this work builds on
methods and approaches developed by partner organizations (e.g., IUFRO) and piloted within the Bank.

Proposed outputs include:

• Diagnostic tool for tree-based adaptation strategies (understanding when and how trees can be used, the
benefits and costs, and policy implications)
• Assessments from the application of the diagnostic tool in the selected countries
• Country-level state of knowledge briefs and policy briefs
• Contributing data to existing database on adaptation strategies (e.g., World Bank climate change portal)

It is expected that through an improved understanding of tree-based adaptation strategies in rural landscapes
from this activity, tree-based adaptation strategies will be integrated into policy discussions in the selected
countries (e.g., NFP, CAS and/or PRSP as relevant) and that climate change adaptation pilots could be
integrated into Bank activities in selected countries

Large-Scale Land Acquisition—Inventory, Policies, and Implications. Acquisition to large areas of land
for production of agricultural commodities or provision of environmental amenities (but excluding mining) by
large investors for use or ownership has recently attracted considerable interest. The sudden upsurge in interest
has generated considerable challenges for many of the Bank’s client countries, especially in Africa, due to weak
and fragmented institutional structures, shortages of technical capacity, and lack of readily available guidelines.
Experience demonstrates that the stakes are high: cases where large-scale land acquisition undermined good
governance, contributed to significant social tensions, and resulted in long-term and often irreversible shifts in
countries’ structure that were not conducive to broad-based economic growth and poverty reduction are well
documented.
To assist client countries who will be confronted with land acquisition requests and to provide guidance on how
to deal with these in the short and medium term, PROFOR—in partnership with the World Bank’s Agriculture
and Rural Development Department—is initiating an analytical study with several objectives:
Quantification: Information currently available on this issue is mostly based on rumors and press reports that
have not been validated officially. To be able to identify broad trends, data on actual and pending land transfers,
together with coordinates and a basic characterization of the projects involved, will be collected from
responsible institutions in some 30 countries where investment in large-scale agriculture has surfaced as an
important policy issue.
Policy review: Policies to deal with large scale acquisition of land (use) rights and the institutional structures to
implement them are in many cases still rudimentary and not conducive to dealing with investment proposals in
a transparent, objective, and authoritative way. A review of policies and institutional arrangements in the 30
study countries will help identify gaps and highlight realistic risks which can help improve outcomes in this
regard.
Models and examples of financial and economic evaluation: Having investors provide information on a
set of key economic parameters at an early stage could help screen out ill-considered speculative proposals, and
minimize administrative overload and facilitate more detailed analysis of serious proposals. Also, rigorous
financial and economic evaluation of proposed investments will be important to realistically assess risks, design
contracts that provide incentives for all participants to help make programs successful, and allow quick
checking of compliance. By conducting economic analyses as well as (proposed) contracts for a range of sample
projects, the proposed activity will not only generate a database that can be drawn upon but also develop
formats and manuals that can be applied on a broader basis.

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Social and environmental impact analysis: Ensuring that existing rights (especially secondary ones) are
protected and externalities properly taken into account can make an important contribution to projects’ long-
term sustainability. However, in situations with weak capacity where land rights are not formalized or
demarcated on the ground, this is a significant challenge. To help, the activity will identify and analyze the
extent to which good practice has been followed in existing projects. This will provide the basis for
improvements and tentative conclusions on the expected impact of better adherence to such standards.
The proposed activity will provide a list of projects from official sources as well as an assessment of the policy
framework, for each of approximately 30 countries. This information will then be used to determine whether
sufficient information is available to proceed to a more detailed economic and social analysis that may be
complemented by more in-depth research by the Bank’s Social Development Department. Country- and
project-specific information, properly aggregated to ensure confidentiality, will be used to test the above
hypotheses, identify best practice, and develop manuals or guidelines as required.
Informing Policy Debate: National Level
Brazilian Amazon Land Administration Study: In 2007, PROFOR financed a World Bank-led study that
sought to explain why Brazilian Amazon land management institutions are falling short of reconciling
environmental management, economic growth and agrarian reform goals. The study’s main finding was that a
race for property rights had generated a chaotic land tenure situation in the Brazilian Amazon. The study made
recommendations including the need for strong cooperation and coordinated action among many stakeholders
who have tended to not work together in the past—essentially a new type of social and political pact—to
remove key obstacles to peaceful and sustainable land administration in the Amazon. It would need to focus on
intensified efforts at reclaiming public land that is clearly the result of illegal acquisition, creating space for the
consolidation and creation of protected areas and agrarian reform settlements. It also called for coordinated
action towards regularization of land held under conditions of “good-faith” in areas where such occupation is
appropriate--uniting the interests of economic development interests, environmentalists, and land reform
proponents around a grand plan for regularization.

While it was difficult to make political inroads with this study when it first came out, in recent months Brazilian
Minister of Strategic Affairs Roberto Mangabeira Unger has taken up the report and is using most of the
recommendations in his proposal for a land regularization program in the Amazon. He has also introduced a
bill to create a new agency to do this.

Piloting the Poverty-Forests Linkages Toolkit in Uganda: The piloting of the Toolkit (just completed in
October 2008 and described in detail in Annex III) has had varying levels of policy uptake in the four pilot
countries (Cameroon, Ghana, Madagascar and Uganda) with the strongest impact being Key successes achieved
in Uganda are that elements of the PROFOR ‘Uganda Policy Brief Paper on Poverty-Forests Linkages’ have
been picked up and used in key planning documents, including the
“Five Year National Development Plan For Uganda – The Forestry Sub-Sector” and a flyer produced by the
National Environment Management Authority designed to influence politicians in decisions over budget
finance allocations.

When the research team proposed to the government to present the toolkit findings at a workshop, Ministers
from the Environment Sector felt this would not have lasting impact and preferred for the toolkit field data
findings to be fed into the development planning process. Consequently the research team presented the
findings to key actors in the Environment sector via a regular meeting with the GoU Environment & Natural
resources Sector Working Group. The Group recommended the findings be fed into the forestry sub-sector
paper. The forestry sub-sector paper feeds into the umbrella Environment Sector working group which in turn
is presenting objectives, targets and budget requirements to the 5-year GoU ‘National Development Plan’
(NDP).

The toolkit has already influenced qualitative indicators. The PROFOR research team consider they have
influenced the paradigm thinking of the forestry sector (and its staff) by raising the importance of livelihoods,

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incomes and employment in the forestry sector 5-year paper and helping them see the substantive contribution
of the sector to the formal and subsistence economy and the importance of presenting this to national planners
and decision makers. Also the Ugandan Government Bureau of Statistics (UBOS) has started getting data via a
‘community information system’ at sub-county level.

Informing Policy Debate: International Level

Analysis of Financing Flows and Needs to Implement the Non-Legally Binding Instrument on All
Types of Forests. In order to provide systematic and objective inputs of the funding sources and gaps
towards implementing the NLBI in preparation for deliberations at the UNFF's Ad-Hoc Expert Group on
finance, PROFOR financed analysis that presented an overview of the specific elements of the NLBI, including
national measures, multilateral assistance, international cooperation and corresponding existing sources, and
drew conclusions on the gap between existing financing flows and actual needs. The study was requested by
the Collaborative Partnership on Forests (CPF) and will serve as important input into UNFF-8 (April, 2009)
which will consider means of implementation for sustainable management as a key issue for the effective
implementation of the NLBI. The preliminary findings of the study were presented during the UNFF Ad Hoc
Expert Group (AHEG) in November, 2008 and were well received.

The primary finding was that there is a need for substantial new and additional funding from all sources to
support SFM and make the NLBI implementation effective on the ground. Although many new promising
mechanisms and sources are emerging, so far there is no serious deliberation to define and develop a SFM-
specific funding mechanism or instrument. But in addition to these conclusions and processes, the report also
looked at the needs and gaps in types of forest investment, sources of investment, and geographic gaps.
These analyses have helped to structure the debate during the Global Forest Leaders Forum (see the
description further below) and set the stage for the discussions around the design of the Forest Investment
Program within the Climate Investment Funds.
Networking and Coordination
PROFOR’s support for the Global Forest Leaders Forum was a prime example of its ability to facilitate the
representation of all stakeholders, including Indigenous Peoples and unions of small forest-owners, to
participate in debates at the international level—the statement built out of the multi-stakeholder concensus was
fed directly into COP14 and will be presented at COP15 in Copenhagen.
The process of promoting the Programmatic Window, by meeting with sectoral staff and their managers region
by region, was also a way to share areas of research between regions and promote previously completed
PROFOR analytical work. This year, to maintain the momentum, PROFOR compiled an end-of-year summary
report of PROFOR’s portfolio to keep regional staff abreast of completed, ongoing and upcoming relevance
from which they may glean ideas and knowledge. This product will also be customized for activity proponents
(to improve networking and minimize duplication) and eventually for general outside audiences.
We have also used networking among activity proponents to improve output and impact quality and have
contributed to promoting specific networking tools developed with PROFOR funds. For example, this year
PROFOR initiated three activities (received through the request for proposal window) on improving rural
livelihoods. All three activities were focused on small and medium scale forest enterprises. The PROFOR
secretariat introduced the southern NGO, the American NGO and the British research organization working
on the subject and had them integrate a specific component of their respective activities – i.e., offer lessons
learned from their work to the development of the Forest Connect toolkit. This partnership has proven to be
fruitful and resulted in each of these organizations expanding their respective networks, but more importantly
created synergies for their activities.
PROFOR has facilitated networking within the World Bank more generally by, for example creating a shared
internal calendar of global forestry-related events. Piloting this internally will help us determine its utility as a
network facilitation tool for outside audiences. PROFOR also facilitated proponents’ ability to share their
findings. For example, PROFOR helped Indufor find an appropriate side event at the COP14 in Poznan,

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Poland in which they could share findings from a community reforestation project they worked on under the
PROFOR-funded activity “Designing a Framework for Carbon Payments for Afforestation/Reforestation in
Small Scale Forest Plantations in Mozambique”.
Developing Innovative Tools
The activity entitled Measuring Biodiversity and Forest Conservation, Production and Livelihood Outcomes in Multifunctional
Agriculture-Forest Landscape Mosaics is using an innovative approach to share knowledge regarding landscape
approaches. The online Landscape Measures Resource Center (LMRC) is a website that uses a blog format to
enable interaction and feedback. It is being designed as a tool for adaptive management that resident leadership
of multi-stakeholder platforms and their technical service providers can use together to foster meaningful
communication and interaction. The simple-to-use methods available on the LMRC should assist stakeholders
in assessing how their landscape performs in delivering a range of potential production, conservation and
livelihood benefits, and how institutions in the landscape perform in coordinating efforts across sectors.
A similar approach was adopted for the Poverty Forest Linkages Toolkit. A blog has been set up on the
PROFOR website where the toolkit is available, encouraging users to share lessons from their use of the toolkit
with other users as well as share proposed amendments to specific tools. While this approach has a lot of
potential in keeping the product current, improving its quality and facilitating interactions among users, there is
now the need to market the use of the blog to the users of the product

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 Budget and Funding Projections for PROFOR

The budget for calendar year 2008 and current commitments for the remaining approved projects in FY2009
(first half of CY09) are summarized in Table 1 below according to thematic area.
Known sources of funding are summarized in Table 2.
Table 1: Budget for Calendar Years 2008 and 2009

Commitments carry-
Actual over from CY08 Total
Thematic Area CY08 CY09 CY08 & CY09
Livelihoods $327,256 $368,703 $695,959
Governance $258,008 $49,230 $307,238
Financing SFM $426,216 $278,520 $704,736
Cross Sectoral
Cooperation $267,896 $93,496 $361,392
Knowledge Management $153,467 $39,521 $192,988
Communication $88,335 $28,512 $116,847
Technical Staff $309,608 $309,608 $619,216
TF Administration fee
(5%) $120,878 $120,878
Total $1,951,664 $1,167,590* $3,119,254
* The CY09 commitments include activities under the programmatic and catalytic windos but not the Request for Proposals.

Table 2: Sources of funding

Sources of Overall
Funding Com mitments FY03-FY05 FY2006 FY2007 FY2008 FY2009 Total Balance
EC € 1,200,000 $573,972 $573,972 € 780,000
Finland € 800,000 $239,920 $787,650 $463,954 $300,000 $1,791,524 0
Germany € 180,000 $243,108 $243,108 0
Italy € 210,000 $308,026 $339,360 $647,386 0
Japan $900,000 $900,000 $900,000 0
Netherlands $306,787 $306,787 0
Switzerland $875,000 $500,000 $250,000 $125,000 $875,000 0
United Kingdom £2,750,000 $3,027,397 $881,550 $1,031,000 $4,939,947 £1,000,000
Subtotal $4,667,317 $1,131,550 $1,155,758 $2,683,739 $639,360 $10,277,724
World Bank $520,000 $280,000 $280,000 $140,000 $104000* $1,324,000
Total $5,187,317 $1,411,550 $1,435,758 $2,823,739 $743,360 $11,601,724

* - This is an indicative figure representing the time the acting manager has allotted to PROFOR
management

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Leveraged Funds
PROFOR has been successful in leveraging additional funds at a rate of 1:1.2. Some activities that were notable
in leveraging funds were:
Policies and Incentives for Miombo Management: This activity leveraged funds from the World Bank-administered
Trust Fund for Environmentally and Socially Sustainable Development which contributed an additional
$280,000.

Forests-Poverty Linkages Toolkit. $535,000 came from the Bank-Netherlands Partnership Program (BNPP).

Institutional Choice and Recognition in Forestry-Effects on the Formation and Consolidation of Local Democracy: The
Netherlands Ministry of Foreign Affairs and Embassy to Senegal, as well as USAID, brought $188,855 to this
activity.

Analysis Of Forest Land Use Options For Reducing Carbon Emissions From Deforestation And Degradation: DFID,
AusAID, and GTZ contributed $210,000.

Certification of Ecosystems Markets: Private and bilateral donors committed an additional $373,500 to this activity.

Measuring Biodiversity and Forest Conservation, Production and Livelihood Outcomes in Multifunctional Agriculture—Forest
Landscape Mosaics: International NGOs and other organizations put in $344,688.

We have leveraged $500,000 from TFESSD for the Adaptation flagship product that has been undertaken, on
top of the $300,000 PROFOR proposes to contribute..
Staffing
In June 2008, PROFOR’s World Bank-financed Manager took up a new position at which point the Sustainable
Development Network Forests Team Advisor became its acting manager. This year, PROFOR Secretariat was
comprised of two PROFOR-financed full-time staff a communications officer, and a Natural Resource
Economist.
Members of the Sustainable Development Network Forests Team contribute to PROFOR work regularly, as
do World Bank regional staff and staff from the Carbon Finance Unit.

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 Annex I. Overview Chart of Activities According to Thematic Area

This chart includes all activities that were in some way active during calendar year 2008. Additional information on the background and status of each activity is provided in Annex II

LIVELIHOODS
PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated Implement Total Commit- Disbursed Total Commit- Disbursed to Origin WB Staff Staff Travel Other
end ed by Project ment ment Date Time Expenses Expenses Expenses
Cost

Forest Resource Regional CLOSED 04/12/2006 08/30/2008 CIFOR $238,704 $118,704 $118,704 $120,000 $120,000 n.a
Access and Local (Bolivia,
Livelihoods Brazil,
Guatemala,
Nicaragua)

Piloting the Poverty- Regional CLOSED 02/20/2007 09/30/2008 CIDT & IIED $565,713 $15,713 $15,713 $550,000 $550,000 Bank
Forest Linkages Toolkit (Cameroon, Netherland
to inform Poverty Ghana, s
Reduction Strategy Madagascar Partnership
Processes ,and Program
Uganda) (BNPP)

Private & Community Regional ACTIVE 01/18/2008 06/30/2009 CEPF $180,000 $150,000 $82,325 $30,000 $16,000 CEPF, $44,772.90 $9,917.69 $27,634.46
Forestry developing (Albania, FAO,
livelihoods on the basis Macedonia, SEUR
of secure property Serbia)
rights in selected
countries of South East
Europe ( SEE)

Forest Enterprise Country- ACTIVE 06/19/2008 12/01/2009 CEFI $172,511.00 $156,011.00 $15,994.00 $16,500.00 $3,250.00 IIED, CEFI
Information Exchange India
(FEINEX): A pilot in
India as part of the
Forest Connect
Alliance $11,460.00 $2,825.00 $1,709.00

FOREST CONNECT: Global ACTIVE 07/01/2008 06/30/2009 IIED $295,379.00 $152,852 $135,150.00 $142,527 $59,529.00 IIED, FAO, $83,225.00 $802.00 $51,123.00
Developing a toolkit to NFP
Facilitate support for Facility
small and medium
forest enterprises

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Strengthening the Regional ACTIVE 07/01/2008 12/30/2009 Rainforest $254,224.00 $149,944.00 $104,280 Rainforest
Value Chain for Alliance Alliance
indigenous and
Community Forestry
Operations Through
Increased Investment
and Use of the
Technical Assistance

Policies and Incentives Regional CLOSED 01/01/2006 11/30/2007 ECA Region $309,000.00 $15,000.00 $13,139.00 $294,000.00 $294,000.00 TFESSD $6,869.00 $0.00 $6,398.00 $962.00
for Miombo (Mozambiqu
Management e, Zambia,
Tanzania)

11
 GOVERNANCE
PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated Implement Total Commit- Disbursed Total Commit- Disbursed to Origin WB Staff Staff Travel Other
end ed by Project ment ment Date Time Expenses Expenses Expenses
Cost

Informal Institutions Regional CLOSED 10/06/2006 08/30/2008 CIFOR $233,604 $118,604 $118,604 $115,000 $115,000
and Forest Governance (Bolivia,
Brazil,
Guatemala,
Nicaragua)

Institutional Choice and Global CLOSED 10/17/2006 03/31/2008 WRI $322,855 $134,000 $134,000 $188,855 $188,855 NL
Recognition in Forestry: (Benin, Ministry of
Effect on the formation Botswana, Foreign
and consolidation of Brazil, Affairs, NL
local democracy (also China, India, Embassy
call: Study on Role of Nicaragua, to Senegal,
Informal institution) Malawi, USAID
Mali,
Mozambiqu
e, Russia,
Senegal,
South
Africa,
Zambia)

Analysis of systematic Country - ACTIVE 02/01/2007 02/29/2008 EA Region $422,000 $270,000 $250,000 $152,000
reform in tenure, Rural China
institutions and Forest
policy and regulations
in China

12
 INNOVATIVE FINANCING FOR SFM
PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated Implement Total Commit- Disbursed Total Commit- Disbursed to Origin WB Staff Staff Travel Other
end ed by Project ment ment Date Time Expenses Expenses Expenses
Cost

The Next Generation Global CLOSED 06/25/2007 03/31/2008 Forest $588,000 $125,000 $125,000 $463,000 $463,000 GTZ,
Certification of Trends FSC
Ecosystem Services Global
Markets Fund,
SYNGEN
TA, DFID

Designing a framework Country- ACTIVE 06/16/2008 09/30/2009 Indufor $245,425 $150,000 $16,675 $95,425 $80,425 MFA, $1,000.00 $0.00 $15,675.00
for carbon payments for Mozambiq IIED
afforestation/ ue
reforestation in samll
scale forest plantations
in Mozambique: A
contribution towards a
forestry climate
strategy for Southen
Africa

Preparing for REDD in Regional ACTIVE 07/24/2008 06/30/2009 IIED $198,270 $148,270 $29,965 $50,000 $0 CIFOR $18,740.0 $3,064.00 $8,161.00
dry-land forests: (Mozambi 0
Investigating the que,
options and potential Namibia,
synergy for REDD Zambia)
payments in the
Miombo Eco-region,
southern Africa

United Nations Forum Global CLOSED 06/01/2008 10/30/2009 World Bank $180,000 $180,000 $180,000 n.a n.a n.a
on Forests: Analysis of
the NLBI on financial
needs and available
sources

Analysis of the potential Country - ACTIVE/ 08/01/2007 09/30/2008 WB: $325,000 $125,000 $136,237 $200,000 $73,015 AusAid, $94,152.6 $41,683.5 $400.70
for reducing carbon Indonesia CLOSED Carbon 9 8
emissions from Fund,
Deforestation and WB/WWF
Degradation (REDD) Alliance,
GOI

13
 CROSS-SECTORAL
PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated Implement Total Commit- Disbursed Total Commit- Disbursed to Origin WB Staff Staff Travel Other
end ed by Project ment ment Date Time Expenses Expenses Expenses
Cost

Measuring Biodiversity Global CLOSED 07/10/200 06/30/2008 IUCN/FLR, $504,688 $160,000 $160,000 $344,688 $344,688 EP, IUCN
and Forest 6 WWF,
Conservation, Ecoagricult
Production and ure
Livelihood Outcomes in
Agricultural Landscape
Mosaics

Analyzing Paths to Country - ACTIVE 05/01/200 01/30/2009 EAP $430,000 $200,000 $194,191 $230,000 $220,000 Gov. of $177,320. $11,672.0 $5,199.00
Sustainable in Indonesia 7 Region: Indonesia 00 0
Indonesia: Small CSIRO in kind,
Holder Livelihoods and AusAid
Adaptation Strategies
at the forest edge

14
 KNOWLEDGE MANAGEMENT AND NETWORKING
PROJECT INFORMATION PROFOR CO-FINANCING EXPENSE DETAILS

Project Name Level Status Start Anticipated Implement Total Commit- Disbursed Total Commit- Disbursed to Origin WB Staff Staff Travel Other
end ed by Project ment ment Date Time Expenses Expenses Expenses
Cost

Mapping Emerging Global CLOSED 12/01/200 06/30/2008 Forest $28,000 $28,000 $28,000 $0 $0
Ecosystem Service 7 Trends
Markets: The Matrix. A
strategic Planning Tool

China Certification Country CLOSED 04/02/200 05/31/2008 Rainforest $64,500 $12,000 $12,000 $52,500 $52,500 Stora $6,000.00 $6,000.00
Conference - China 8 Alliance Enso,
Suzano
Corp,
Other
Funding

Publication of the Country CLOSED 10/01/200 06/30/2008 Africa $115,000 $45,000 $32,799 $70,000 $57,723 World $32,799.0
Cameroon Sector - 7 Region: Bank, 0
Policy reform Report Camero World Bank Bank
on Netherlan
ds
partnersh
ip
Program
(BNPP)

Global Forest Leaders Global ACTIVE 06/01/200 12/01/2008 World Bank $150,000 $130,000 $130,000 $20,000 $20,000 The
Forum 8 and TFD Forest
Dialogue

15
 Annex II. Activity Reports for 2008

(as provided by PROFOR grant recipients)

Livelihoods
Forest Resource Access and Livelihoods
Start date: May 2007
Status: CLOSED
Proponent: CIFOR
1. Geographical focus
Regional: Brazil (State of Pará); Bolivia; Nicaragua and Guatemala.
2. Objective
This research project analyzes the ways in which institutional and governance relations in forestry constrain
or promote improved livelihoods for poor sectors, through an examination of key variables affecting access
to forest resources and their benefits.
The questions aim to identify ways in which access is gained, maintained and increased for each variable;
the relationship among the variables, and the economic outcomes for the organization and its members.
3. Activity and output: progress to date
The conceptual framework and instruments for conducting the research were developed within a larger
project effort that included additional funding and was carried out in Africa and Asia, the first CIFOR-Rights
and Resources Initiative global research project designed to focus on cases where recent changes in forest
tenure, regulations and access to markets for local communities have taken place.. This effort is what
united this particular project with its ´twin´project on ¨Informal Institutions and Governance in Forest
Communities.¨ (Contract No. 7140575).
To date, the materials related to the conceptual framework have been developed, all the field work has been
completed, site reports finalized and duly the principal written output is being published. External reviewers
have submitted comments and the research have addressed them. Final submission of the manuscript for
publication as a CIFOR Occasional Paper (the highest quality level publication) has been done and is now in
layout.
Local workshops were conducted at all of the sites to present findings to the communities and partner
organizations involved. Several larger dissemination and policy events have already taken place in Bolivia
and Brazil. Four papers based on this research were prepared by CIFOR staff and co-authors from partner
organizations and presented at the Biennial Conference of the International Association of the Study of the
Commons, in Cheltenham, England in July, 2008. Informal dissemination of this paper has taken place in
Nicaragua and Guatemala due to interest by Bank, FAO and USAID staff. With the pooling of resources
(IDRC/Ford funding) a series of larger and/or more policy-related events are to be undertaken in Guatemala,
Nicaragua, and Bolivia, some that will engage Bank and other donor staff.
4. Findings (either preliminary or final)
The turn to rights-based approaches represents an attempt to bring values and politics – or justice and
power – back into the debates and practice of development. It recognizes the shift from stakeholders to
rights-holders, as with regard to indigenous people in forests. Human rights concerns shape the forest
reform specifically in relation to demands for indigenous ancestral rights but also to issues of equity and land
rights for the poor more generally. However, these reforms of tenure rights do not mean that they all
embrace the rights-based approach, which involves shifting power relations.
 The case studies demonstrate that important new tenure rights have been granted to forest-based
communities and that, in some cases, improvements have been substantial with regard to tenure
security over land and forest resources and to livelihoods benefits from those resources. At the same
time, these new rights are shaped by a variety of conflicts and demands on forest resources, and their
full potential is attenuated by the loss of rights incurred in the process of putting statutory rights into
practice, or constructing the property rules, and by the difficulties associated with regulatory
frameworks, credit and markets for forest products.

16
 In many cases, these tenure changes represent the recognition of traditional or historic rights to land
and resources for populations that have been marginalized or excluded, and in others, they represent
new opportunities for similarly marginalized poor populations. Second, while there is a clear correlation
between forests and poor populations in Latin America, and secure access to forests and forest
resources offers an opportunity, under the right circumstances, to alleviate poverty, there is evidence
that communities have become more important agents for conservation.
 New statutory rights do not automatically translate into actual rights.
 The role of the state, the capacity of communities and their organizations and allies to fight for their
rights and the construction of accountable authority among all of these actors is essential, not only in
the formulation of the statutory right but also in its implementation.
 On a spectrum with on one end, communities may be entities holding temporary use rights under a
newly incorporated organization created specifically for that purpose; at the other end, they may be
autonomous institutions with long experience in self-governance that have won recognition of
permanent rights to territories already under customary control. Most cases appear on the continuum
between these two extremes. How this is perceived – that is, the legitimacy of the reform – depends in
part on what was there previously, which shapes the nature of demands, including the basis upon which
it is formulated (e.g. ancestral rights, livelihoods, and so on).
 It would appear that a temporary use right granted to a management organization – a right that can be
withdrawn if regulations are violated – is essentially a privilege (as in the case of Petén, Guatemala),
whereas the granting of permanent control rights to political-legal authorities is more likely to represent
a substantial recognition of rights (as in the case of the RAAN, Nicaragua). In the latter, the granting of
control rights over resources provides the material basis for the exercise of human rights.
 Granting or recognition of substantial decision-making power to communities or territories, not all
authorities are representative or accountable, hence these relations should be constructed and not
assumed.
 The role of the state, in the granting, implementation and protection of rights, is decisive in shaping
outcomes. The rights-based approaches necessarily demand duties and accountability – particularly
(though not only) the duty of the state to protect human rights and to be accountable for the
implementation of policy. In none of the cases studied has the state played a particularly effective role in
fulfilling its duty to defend community rights or the perimeter of the territory – at least not consistently.
Greater attention is paid to establishing management regulations rather than defending community
rights, though in the end weak state institutions may fail to enforce even these.
 The process of constituting rights in practice encounters competing interests over the lands and
resources claimed – or “won” – by communities. Exclusion rights that are weak, weakly enforced or
constantly challenged by powerful outside interests force communities and their organizations to waste
substantial resources fighting for or defending these rights, rather than focusing on strengthening the
local organizations and capacities needed to improve livelihoods through the integral and innovative
management of community forests.
 Policy frameworks, so far, have generally failed to establish an enabling environment for the
development of these management opportunities. Community forest enterprises have been promoted
based on blueprints for organizations and resource extraction that require heavy external support and
fail to build on the self-governance capabilities of smallholders and communities. Models, assumptions
and regulatory frameworks are based on industrial-scale logging for international markets. Forest
enterprises are established from outside with little understanding of deeper cultural issues such as
ancestral rights to cultural reproduction.
 More often, projects and policies working to promote enterprises lose sight of “community” in community
enterprises. Yet “community” is precisely what makes them different. In the search for market solutions
and the development of viable enterprises, it is important to put the social and cultural considerations of
local governance institutions at center stage, for, in the end, these constitute the foundations of future
sustainability.
5. Impacts
To be determined, as written materials are being published and events are underway.
6. Opportunities and/or obstacles/issues related to implementation of activity
Challenges: In Nicaragua, Hurricane Felix hit the research region at the height of the field work period,
causing major setbacks in the work. The impact of the Hurricane radically changed the nature of
the situation (more than 600,000 manzanas of contiguous forestland were uprooted or downed).
Opportunities: Given one of the original criterion for country and case selection was the political opportunity
to help deepen and secure the rights gained by local communities to their forest resources and

17
 benefits, in most of the countries there has been a high level of receptivity by forest community
organizations, NGOs and governments. Highlights are the cases of Bolivia and Guatemala. The
Bolivian forest authorities and the leading indigenous Amazonian organization (CIDOB) have
´scooped up findings and recommendations before final products were presented. CIFOR staff has
played the role of advisors to both and channeled inputs into multiple policy-making efforts during
the entire project life. In Guatemala, results have been mostly helpful to the community
concessionaire organizations to help them reflect critically on their own situation and to formulate
policy proposals to the governmental authorities, in this case those related to conservation, tourism
and agriculture, as well as donors. In both countries, the research sites –though tension-filled- are
serving as milestones for learning and shaping national level policy with regard to forest
governance, regulation and enterprise development.
7. Progress against milestones and indicators
Despite some delay, mostly related to the pace of the early stage of the larger project (conceptual
clarification, design of instruments, etc) across the three regions of Africa, Asia and Latin America, a
short project extension allowed the team to complete the full set of deliverables within the new time
frame.
8. Changes to original activity time schedule
All changes to the original project goals and timeline were presented and accepted.
9. Next steps
No follow-up activities have been planned.

10. Replication potential

Very High. The importance of this type of work, that allows for the ‘mapping of tenure rights’ and then one of
how rights are implemented by the holders is of crucial concern for many different actors, particularly with
the advent of new policies and projects related to REDD and other Climate Change related efforts.
11. Budget
PROFOR Funding $ 118,704
Other sources $ 120,000
Total $ 238,704
PROFOR Funds used to date $ 118, 704
Total Funds used to date $ 238,704

18
Piloting of Poverty-Forest Linkages Toolkit

Start date: February 2007

Status: CLOSED
Proponent: International Institute for Environment and Development (IIED) and the
Center for International Development and Training (CIDT)

1. Geographical focus
Cameroon, Ghana, Madagascar, and Uganda

2. Objective
The Poverty-Forests Linkages Toolkit was developed to provide a methodology for understanding the ways
in which forests and forestry might contribute towards poverty alleviation. It is designed to be used by
forestry staff, local government and non-government organization staff to collect information that can be
delivered in an appropriate format to those responsible for updating or revising Poverty Reduction Strategy
Papers, planning national forest programs, and monitoring attainment of the Millennium Development Goals.
The activity under this phase set out to pilot-test the toolkit in four countries: Cameroon, Ghana,
Madagascar, and Uganda.

3. Activity and output: progress to date

The project has achieved the full set of activities and outputs described in the terms of reference agreed
between PROFOR and the project consortium. These include:

Selecting and training country study teams in rapid appraisal methodologies for Poverty-Forests linkages (as
outlined in the toolkit). Training was straightforward and successful in all four countries, in which the country
team leaders relied on different strategies to train and deploy the study teams. The teams of facilitators
comprised a mix of professional facilitators and local people with above average education (e.g. teachers).
Several cross-country lessons were learned about desirable qualities for facilitators and tips for training.
These have been noted in the mid-term report and incorporated into the revised toolkit. Finally, international
communications throughout the project were maintained through dedicated international contact points for
each country team and a specially designed and maintained internet share-point to allow access by all
country teams to all project documents and other resources on forests and poverty.

Supporting and building the capacity of different stakeholders (forestry department and agency staff, local
government and/or relevant NGOs) to provide strategic quality inputs on forest-poverty linkages to national
policy processes in Cameroon, Ghana, Madagascar and Uganda, using the Poverty-Forests Linkages
Toolkit. Involving key stakeholders from central government, the forestry industry, forest-dependent
communities, local governments, NGOs and relevant groups from sectors of interest in the process and
results of the Poverty-Forests linkages work. Capacity building was highly successful among the immediate
project implementers and participants in the four countries at the district and national levels. Forestry
department staff strongly welcomed the project and, in all four countries, mandated senior staff members to
participate throughout the toolkit piloting process. Staff in PRS and statistics agencies maintained their
interest in the process throughout, from advising on methodology and site selection through to receiving and
responding to the findings. Likewise, officials in local government (both forestry and other departments)
immediately responded to the focus of the toolkit on the nexus between poverty and forestry, which is highly
relevant to their own work. The country study teams equipped these district level staff with the outputs of
the toolkit to support their work on the ground and interactions with other districts and the national
governments.

Conducting detailed forest-livelihood studies with the persons trained in the four countries to feed into
PRSPs and other national development policy planning activities (e.g., NFP). Detailed field-based studies
were completed in the four countries and then collated and analyzed. These were supplemented by
national-level analyses of the status of forests and poverty and the key processes, actors, content and
upcoming opportunities in poverty reduction policies (above and beyond the PRS) and in forestry policies
(again including broader conservation and environment policies where relevant). In each country, a policy
brief was drafted summarizing and drawing conclusions and recommendations from the findings in multiple
sites.

19
Using the country study results to prepare a concise and quality report with policy and operational relevance
on the issues surrounding implementation of the toolkit, PRSP reform and government support for the
process. The project consortium made a collective decision to present findings, conclusions and
recommendations from the toolkit in the form of a concise and visually attractive policy brief in each country.
While this approach loses the full detail of the toolkit findings, it should ensure much wider readership and a
longer shelf-life.

Holding national level workshops with key stakeholders in each of the four countries. The country study
teams held at least one formal presentation workshop each, plus a series of further presentations at
meetings, seminars, workshops and other events at the national and district levels – primarily in response to
demand from governmental and non-governmental stakeholders. Presentations of this type will continue
well after the formal termination of this project.

Evaluation. Parallel to the above activities, a structured process was put in place to evaluate the
effectiveness of the toolkit from the perspective of toolkit field users, village-level participants and policy
audiences at the district and national levels. The full approach to evaluation was presented in the mid-term
report and was included again in the final report. The resulting feedback from users, village participants and
policy makers has been used to inform the revision of the toolkit.

4. Findings

Cameroon
Perceptions of wealth and poverty among rural communities vary widely and do not reflect generally
accepted standards. Local people take into account other considerations related to in-kind and cash value
aimed at establishing the pride and dignity of the human being in his or her social environment (for example
owning a block house, means of locomotion, land, domestic animals, children).

Forests contribute significantly to household incomes in rural areas. Given that there is deprivation of the
population, the forest is the last resort from which they can get food directly, and other items that they can
sell to cover the cost of other needs (schooling of children, health care, investments, etc). This contribution
of forests to village household incomes in forest zones depends on the region: more than 50 % in the South-
East, compared to between 30% and 40% in the West (Mount Cameroon) region. For its part, agriculture
also constitutes an important part of household revenues. It is higher in the South-East (between 55% and
61%) as compared to the West (between 33% and 43%). Other sources of income contribute less than 10%
to the household incomes of the two regions – apart from menial jobs and especially trade by barter in the
West (commodity for commodity). In the South-East, the proportion of cash that is derived from income from
the forest is quite considerable for both rich and poor people (74%). Meanwhile the contribution of forest
products is generally low for in-kind incomes (less than 20%). Forest products constitute the main cash and
in-kind incomes of the communities of the South-East: more than 50 %, both for women and men, except for
the wealthy of Massea who depend more on agriculture (cocoa farming). Generally, women’s dependence
on forestry, both in the West and in the South-East, is more than 30 %.

A number of factors contribute to the dependency rate of communities vis-à-vis to forests:

o The more enclosed by forest, the higher the dependence of the communities on the forest. Villages
surveyed in the South-East depend more than 50 % on the forest compared to villages in the West
where the average is 35 %.
o The level of sophistication of trade. In East Cameroon, trade is done without the circulation of money,
and barter is the main form of trading. This trade is done generally to the detriment of village dwellers
who sometimes, in order to obtain a box of matches or a cup of salt or a few painkiller tablets, might
trade each of these items for a quarter of a game animal.
o The rate of forest degradation is also a factor that can influence community dependence on forests, in
the sense that the more vegetation cover is reduced and species become rare, communities have no
other choice but to turn towards other sources of income such as agriculture. This problem is taken
most seriously in areas in which conservation and development actors have raised awareness. This is
notably the case in the Mount Cameroon region where the famous Mount Cameroon Project has carried
out awareness campaigns and promoted alternative livelihoods.
o Socio-cultural backgrounds and population density can also play a role regarding the dependence of a
community on forest resources. Pygmies, for example, have always lived on hunting and gathering and
their communities are attached to their culture. This may explain why the proportions of forest
contribution to household incomes is higher in the East.

20
Apart from the common physical forest products, rural populations also benefit from forest services that have
not been evaluated for now with the toolkit. Participants in the field study noted how such services contribute
to their wellbeing. Examples can be given of sacred sites where Baka pygmies carry out their jenghi, the
pleasure of taking a walk in the forest, on a daily basis.

Communities know their use rights and deplore the non-respect of the latter by other actors in the forest.
They recognize the fact they also have obligations towards the forest, and they have an understanding
(albeit mitigated) of the rights, obligations and benefits accruing to other actors.

Village communities seem very aware of the issues of resource conservation and the notion of sustainable
management, emphasizing the importance of the forest for their livelihood (especially for food, medication
and housing) and of taking measures to conserve it. Nevertheless, the efforts that they are making to ensure
forest sustainability are still very limited and could benefit from guidance.

Poor consideration of the concerns of the population by other actors (state administration, private sector)
because of the poor implementation of legal and institutional arrangements governing the access to and
management of resources. Similarly, the population lacks access to basic needs.

Ghana
Forest products constitute an important direct source of income for the very poorest in rural communities.
Households sell forest products to be able to meet a wide range of expenditures, including everyday
purchases of sugar, salt, paraffin and occasionally medium-size expenses like clothes (including school
uniforms). It is mainly poor women who are involved in these transactions, for whom forest products
represent a significant source of cash. Income earned from the sale of forest products represented 20-30%
of poor women’s’ total livelihoods in two of the sample villages. Sale of agricultural products such as tree
crops (cocoa, citrus, and oil palm) cut across wealth categories for meeting medium and large expenses
such as house construction, school fees, dowry costs and emergencies such as major illnesses. This was
particularly true for wealthy men and women by whom forest products are widely used for many household
investments.

There are important in-community differences in the use of forest products. As a contribution to cash
income, forest products appear to be more important for women than for men. This relationship holds as
incomes and wealth status rise. The contribution of forest products to non-cash (i.e. subsistence) income
sees an apparent reversal in the importance of forest products between the genders. The group where
forest products make the highest contribution to their non-cash income is for ‘wealthy’ men. This result
warrants further investigation, but suggests that issues of access to forest resources may be an important
influencing factor.

Forest products are linked to the growth of other sectors such as agricultural production, livestock rearing,
construction, trade and health, yet the overarching enabling environment for rural economic transformation
is not yet in place. The contribution of forest products to national development, including the attainment of
the Ghana Poverty Reduction Strategy (GPRS II) and the Millennium Development Goals (MDGs), is grossly
under-estimated at present, partly as a result of the failure to capture the linkages between forest resources
and the growth of other rural-based sectors in existing national statistics. However, this contribution would
be higher still if communities had access to appropriate and affordable technologies for value addition. The
challenge remains for government to improve the enabling environment for rural economic transformation.
Poor road infrastructure frustrates trade and marketing especially in the rainy season. The lack of electricity
and other low-cost alternative energy sources continue to lead to the over-use of forest products for
household energy.

Poor governance and inadequate enforcement undermine the rule of law, which has negative repercussions
for rural livelihoods and their transformation. It has emerged that in the communities where the toolkit was
tested, many people consider the existing forest legislation and regulations to be good, but there was a lack
of commitment from a range of stakeholders as far as enforcement is concerned. Corruption of government
officials, timber contractors and local leaders all undermine the long-term sustainability of the benefit flows
from forest products to all segments of society. Community members felt the direct benefits could be
enhanced if, for example, their entitlements in the form of shared forest-related revenue payments were
more timely and regular.

There is broad support for sustainable forest management. This was expressed in many ways, including
cutting only dry (dead) trees for timber, selective harvesting of NTFPs, avoiding the use of fires within
forests, and using selective traps for hunting wildlife. Communities are willing to trade duties in safeguarding

21
the forest resource for direct economic benefits - a key ingredient for sustainable use resource agreements.
This provides an opportunity for the promotion of collaborative forest management between government
authorities and these communities. Using the Poverty-Forests Toolkit, communities can generate
information to guide their participation in sustainable forest management.

Forests play a key role in sustaining environmental services and maintaining livelihoods capabilities such as
checking soil erosion and the provision of good quality water. There is a need to have these valued and
subsequently included in national economic indicators.

The above findings suggest that the methodology employed in the poverty-forests linkages toolkit has much
to contribute in terms of providing the evidence base for strategies addressing poverty reduction and forest
conservation in Ghana. The toolkit should be further developed and applied as a tool of rural economic
analysis. The Forestry Commission and other related agencies should adopt the toolkit for data gathering as
an integral activity of collaborative forest management planning, and training institutions should popularize it
among their students in order to carry out collaborative-related research. Donors, for their part, should
support capacity building within the government and among Non-Governmental Organizations to make use
of this tool in order to raise the voice of the poor in planning sustainable forest management and in
encouraging the adoption of multi-purpose tree species on private land.

Madagascar
Forest products contribute significantly to the incomes of rural households: to 26% of the total income in the
humid forest zone and even more importantly to 30%, in the dry forest zone. The value of the contribution of
the forest products is roughly to 56,000 Ariary (35 US$) per household per annum in the humid forest zone
and 68,000 Ariary (42 US$) per household per annum in the dry forest zone. Given the high contribution of
forests to rural incomes (subsistence and cash), forest products should be recognised and promoted as a
major component of a diversified rural household strategy. A perhaps surprising finding is that forest
products contribute more to rural household incomes in the dry forest domain than in the moist forest
domain, where forestry and agricultural potential is higher. While the wet forests offer an abundance of
products (in volume and varieties), the products of the dry forests have more commercial value on the local
market because they become rare (due to advanced degradation and the distance of the forest). The
implication for policy is for investment in forestry to be directed towards the development of silviculture in the
dry forest domain as well as in the wet forest domain where most efforts are currently concentrated.

Much of the contribution of forest products to household incomes is invisible in national statistics because
they contribute more to subsistence income (35-80%) than to cash income (4-30%).The periodic survey of
households, in 2005 (L'Enquête Périodique des Ménages 2005 or EPM 2005) estimates the average
contribution of non-cash income from non-agricultural enterprises, including forestry, to be only 0.2% of total
household income, whereas the estimate in this study is 21% (the proportion of income that is non-cash
multiplied by the proportion of forest’s contribution to non-cash income). There are several possible
explanations for this difference, including (a) the EPM definition of agricultural products includes some of the
products that the Forests-Poverty Toolkit defines as forest products, such as fruits, (b) the EPM figure
includes urban households, which are expected to have a lower dependency on forest products, (c) the
questions in the EPM do not extract the full range of forest products that are recorded in the Forests-Poverty
Toolkit.

On average, forest products contribute more to cash income in the dry forest domain (21% of the total cash
income) than in the moist forest domain (10% of the total cash income). In other words, the contribution of
forestry to cash incomes is higher in dry areas than in moist areas, emphasizing the centrality of forest
products to livelihoods in the drier parts of Madagascar and hence the priority for forest management in
these areas. Promotion and support to the marketing of forest products may be especially effective in the dry
forest domain as a means to help people out of poverty.

Forest products contribute to all sectors: food, agriculture (traditional fishing, farming), housing, domestic
energy, water supply, tourism, crafts and trade. Forestry is thus integrated into all the key commitments of
the MAP and investment in rural people’s use and management of forests will contribute to national
development in multiple sectors. Forestry has a key role to play in achieving the “double green revolution”.
The Information service of the Ministry of Environment, Water and Forests and Tourism (MEEFT) collects
regular data relevant to forest livelihoods (e.g. resource abundance & management activities at commune-
level). This data could be used much more effectively than it is at present to monitor the performance of
forestry in achieving MAP.

22
Overall, forest products are equally important to all rural people: to women and men, to poorer and less poor
households, to those living near roads and markets and those living further from these infrastructures. The
toolkit methodology provided a means to determine whether forestry contributes relatively more or less
income to different social groups living in different localities. Results of the toolkit showed, perhaps
surprisingly, that the contributions of forestry to livelihoods were equally high for all groups. Women and
men did not differ in their level of dependence, although they tended to report higher reliance on different
products (e.g. firewood for women and fish for men). Poorer and less poor households were also equally
dependent on forest products. Regarding average income per household, the distribution of cash and non-
cash income of the poor is almost the same as for the less poor. Similarly, households living close to roads
and markets were found to be no less reliant on products collected from forests than those living in more
isolated villages. These results suggest that even with expected trends in rural development under the
MAP, which will deliver higher rural incomes and greater connectivity to markets by 2012, the importance of
forest products to rural livelihoods will not decrease.

Rural communities are well aware of the values of forests not only for the goods they provide but especially
for their ecological services, in particular the maintenance of water supplies. They recognise the importance
of conserving forests and require development assistance rather than greater environmental enlightenment
or awareness. Participants in the toolkit fieldwork demonstrated a sophisticated awareness of the ecological,
economic and social values of forests, and of the negative impacts of practices such as tavy (slash-and-
burn). The toolkit is designed to focus on forest products, but participants insisted on drawing attention to
forests’ role in providing ecological services, most importantly the maintenance of water flows and
prevention of erosion. The implication is that the current emphasis on environmental education and
sensitization of rural residents to the value of conservation may be overstated. Rather, people need
practical support in implementing development projects and self-help conservation initiatives that will enable
them to reduce pressure on local natural resources.

People perceive multiple challenges to forest management. They would like to implement a mix of technical
and institutional solutions, particularly the devolution of greater authority at the local level and the
improvement of working relations between village and the decentralized technical services. The main
challenges to successful forest management, identified in both the dry and moist forest domains, were the
related threats of bushfires and tavy (shifting cultivation). Other notable problems include reduced water
supplies, illicit extraction of forest products by outsider operators (e.g. charcoal businesses) and the
permanent fear of attack by brigands of poorer women who travel deep into the forest to collect products.
Local communities suggest that solutions to these problems should involve certain technical interventions,
such as clearance of fire breaks to stop the spread of bushfires and investment in irrigation schemes to
reduce the need for tavy. They also see the need for changes in institutions and governance to give a better
platform for effective forest management. In particular, they see the need to review and reform the forest
management policy and advise how the Forest Authority should be dispatched among each level of local
governance to apply the principle of subsidiarity.

In short, local communities would like to be able to express themselves more on forestry decisions relating
to “their” forests, such as the allocation of licenses for extraction. Moreover, people seek fuller engagement
in the land zoning decisions and other aspects of SAPM (System of Protected Areas in Madagascar, the
government’s current major program to expand conservation). Since the SAPM’s success depends on the
effective adhesion and engagement of the local populations, For this, a more adaptable schedule for
providing appropriate forest management techniques and technologies appears necessary.

The poverty forest toolkit can be a helpful and profitable instrument in legitimizing the studies and research
carried out by the stakeholders engaged in the execution of SAPM. At the same time, local communities
require more transparency in the application of the new land tenure policy. In particular, they would like
assurances that unexpected expenses in accessing land title will be minimized (e.g. the expenses of going
back and forth between the village and the town for administrative papers).

Uganda
First, a key finding was that rural communities do not use the $1 standard available for daily expenditure to
gauge poverty. Instead, they use a package of indicators that demonstrates the complex and multi-
dimensional nature of rural poverty. By implication, poverty eradication requires a holistic and integrated
approach to rural development, including its assessment. Access by rural communities to natural resource
assets, including forests, is central to any poverty reduction strategy for Uganda.

The subsistence economy was found to account for 52% of economic output of the sites in this study, while
the cash economy for 48%. Compared to agricultural crops, which command a 1:1 ratio between the

23
subsistence and cash economy, the forest products ratio of 3:1 implies that these are mainly used for
subsistence. This phenomenon makes them almost invisible in the Poverty Reduction Strategy of the
country, one of whose key objectives has been “to increase the ability of the poor to raise their incomes”.

Although the monetary (cash) contribution to households from forest products was only 8% for the four sites,
some groups and some sites registered a much higher contribution. This was true among the very poor/poor
men and women of Ncundura (at 19% and 15% respectively), and among the very poor/poor men in
Muhindura (at 20%). On the contrary, the dependency of average wealthy men and women on forest
products to generate case remains much lower (6%). Forest products therefore constitute an importance
direct source of income for the very poorest. As households become better off, their dependence on forest
products begins to decline.

In Kisoro and Kabale, the former indigenous forest Abatwa have not been fully resettled. Unless the
government pursues a bold policy to resettle them, their continued dependence on forests for their livelihood
could in the long-run be very counter-productive to sustainable forest management.

Forest linkages to the growth of other sectors such as crop production, livestock rearing, construction, trade
and health were considerable although there is no national system to measure these linkages. This
underestimates the contribution of forests/forest products to national development. The contribution of the
latter to the attainment of Millennium Development Goals (MDGs) would be higher if communities had
access to appropriate and affordable technologies for value addition such as honey and timber processing.
The improvement in rural physical infrastructure (e.g. roads, electricity) and provision of social services (e.g.
education and health services) would also contribute to rural transformation.

In Masindi, large areas of private natural forest were found to be under pressure from commercial
agriculture. The government needs to identify a package of incentives including carbon finance so that
households with private natural forests can conserve them instead of converting them to agriculture.

Between 1971 and 1986, communities witnessed over-exploitation of forest products due to (i) the trans-
border illegal trade known as “Magyendo” and (ii) institutional breakdown of the then Forestry Department
(now National Forestry Authority) and local authorities. The main policy message is that poor governance
and break-down of the rule of law has negative repercussions for rural livelihoods.

A key finding from the listing of duties among communities is the desire for sustainability. This represents a
considerable opportunity for the promotion of co-management arrangements in forestry between
government authorities and the communities. Using the Poverty-Forests Toolkit, communities can generate
information to guide their participation in sustainable forest management. The formulation of the 5-year
National Development Plan should be cognizant of the findings in this paper, more so given that it has a
developmental objective “to develop and optimally exploit the natural resource base and ensure
environmental and economic sustainability”.

5. Impacts
Cameroon
The Forests-Poverty Toolkit findings have generated a strong interest in the role of forestry in poverty
reduction in Cameroon. These findings have been presented to key actors in the Environment and Forestry
sectors. They generated great deal of enthusiasm when they were presented to the PRS Committee and
they will be taken into account in producing the new PRS document, which is still in the process of being
drafted. GTZ, which is in charge of the management of funds for the implementation of PSFE, is adopting
an abbreviated version of the Forests-Poverty Toolkit (reduced in numbers of indicators and parameters) to
monitor and evaluate component 1 of PSFE.

At the national workshop at which they were presented, attendees from different government departments,
training institutions (ENEF de Mbalmayo, University of Yaounde I), NGOs and PRS committee members had
the opportunity to discuss the implications of the toolkit findings for the Forest Environment Sector Program
and the PRS and to offer practical and positive suggestions regarding the PSFE. These included including
the Forests-Poverty Toolkit findings and a poverty map in the PSFE, providing indicators from the toolkit in
the PSFE, adopting the PNFL legislation to the local situation, involving other authorities in developing the
toolkit, strengthening the staff capacity of MINFOF and of other sectors which may use the toolkit, and
making the findings available to MINFOF-MINEP. It was also agreed that the communities’ complaints
should be taken account of in the PSFE.

24
The toolkit findings give details of the forest products on which rural communities depend. Cameroon
stands out among African countries in terms of the very high economic values derived from wild forest
products. A key recommendation for enhancing the value of these products is to develop their processing
and marketing potential so that people trained in the transformation of non-timber forest products will be able
to expand their economic opportunities. In addition, information about the pressure that the community
(especially the poor) puts on the natural resources strengthens the case for government to provide for the
basic needs of and supply alternative livelihood opportunities to rural communities.

Finally, further policy impact will occur when the Forests-Poverty Toolkit findings are supplemented by
findings from the Livelihood & Landscapes (LLS) programme of IUCN, which is applying the toolkit in the
Congo Basin Forest.

Ghana
The toolkit attracted early interest within policy circles in Accra, but it has to accommodate other pressing
agendas in order to secure continued attention. Within the development community, the September 2008
meeting in Accra on Aid Effectiveness generated the most publicity following the completion of the toolkit
testing phase. At the same time, negotiations between the Government and the European Commission over
a Voluntary Partnership Agreement, which is part of the EU’s Forest Law Enforcement, Governance and
Trade (FLEGT) initiative, has placed equally heavy demands on forest sector institutions. An important
lesson to be learned is that the national policy space is finite and timing is critical to securing policymakers’
attention.

Madagascar
The findings of the Forests-Poverty Toolkit have generated a strong sense of forestry’s role in reducing
poverty. At the national workshop at which the findings were presented, attendees from different
government departments had the opportunity to discuss the implications of the findings for rural
development through the Madagascar Action Plan (Madagascar’s Phase 2 PRS). The consensus was that
governance is the main limitation on the extent to which forestry can effectively contribute to rural
livelihoods. Drawing on the toolkit’s results, participants agreed that the main change that would be required
in order to enhance the contribution of forestry would be for the forest administration at the district level to
work more closely with communities. The consensus among government officials, however, was that it
would not be possible to transfer full authority over local forests to village governments (fokontany), partly
because of legal obstacles but mainly because of perceived lack of management capacity at the village
level. Although full transfer of authority to the community level is unlikely in the near future, some district
governments are strongly committed to working more closely with village governments and other local
partners. The Regional Director for Environment in the Sofia District has been using the toolkit findings to
mobilize new relationships with local partners and communities.

The national workshop also entailed a discussion of how the toolkit could inform future data collection and
indicators by government departments. The Director of the Division on Household Statistics in the National
Statistics Agency observed that the Forests-Poverty Toolkit does not have quantitative credibility due to the
small and non-random sampling frame, but that there was considerable scope to combine the approach of
the toolkit with existing methods of data collection. He noted that while the toolkit is unsuitable for
nationwide data collection, it could be an excellent basis for more specific studies, such as for the survey of
the impacts of the SAPM conservation program that the Madagascar government is expected to
commission.

Two particular findings of the toolkit stood out for participants at the national workshop. The first was the
major contribution of forestry to livelihoods in the dry forest zone, a contribution that has been systematically
under-estimated in government policy. Participants agreed that a much greater recognition of and
investment in this contribution would be important in helping to achieve the goals of the MAP in drier rural
areas. The second important finding was the realization of forestry contributions across a spectrum of
sectors. Workshop participants noted that the toolkit findings were not only relevant to “forestry,” but also
raised broader issues related to poverty, water, agriculture, trade, land tenure, law, local governance,
gender and education.

Uganda
The PROFOR research team in Uganda has been strategically aiming to use the toolkit to influence policy
from the very beginning. A diagrammatic summary illustrating the linkages to country policy processes is
given below. Accordingly, elements of the PROFOR ‘Uganda Policy Brief Paper on Poverty-Forests
Linkages’ have been picked up and used in key planning documents:

25
 1. The executive summary of ‘THE FIVE YEAR NATIONAL DEVELOPMENT PLAN FOR
UGANDA – The Forestry Sub-sector’. The overall Uganda NDP, which is still in the process of
being drafted and has been delayed by a year, is due to be completed in early 2009. Fortunately,
the PROFOR toolkit findings became available at exactly the same time when Environment sector
Working Group planners were seeking up-to-date information to support their plans.

2. A one-page flyer produced by the National Environment Management Authority designed to

influence politicians in decisions over budget finance allocations.

In Uganda, the research team proposed to present the toolkit findings at a workshop. However Government
Ministers from the Environment Sector replied that this would not be time efficient and asked that the toolkit
field data findings to be fed into the Development planning process. Consequently, the research team has
presented the toolkit findings to key actors in the Environment sector via a regular meeting with the GoU
Environment & Natural resources Sector Working Group. The Group recommended that the findings be
taken into account in the forestry sub-sector paper on the basis of which the umbrella Environment Sector
working group which will develop its objectives, targets and budget requirements for the 5-year GoU
‘National Development Plan’ (NDP). The NDP (previously PRSP or PEAP) will have 18 themes with a
strong emphasis on competitive trade, economic growth, SME enterprise development and
commercialization. Involving staff from the Forest sector in the toolkit training and field work has undoubtedly
been helpful in getting issues related to livelihoods and employment in the forest sector highlighted within it.

At the start of PROFOR research in Uganda, the National Planning Authority asked the team to base its
research on the target indicators set under the forestry section in the 2005 published Vision 2035 Booklet.
However, this publication has since been withdrawn because the indicators lacked national ownership and
when they were presented in a national newspaper were criticized for being unrealistic and having been
produced in Kampala offices without cross-checking with other stakeholders. As a result, the toolkit has not
been used so far to set national level quantitative indicators of the NDP, which are still in the process of
being developed.

The toolkit has already influenced qualitative indicators. The PROFOR research team considers that they
have influenced the paradigm thinking of the forestry sector (and its staff) by raising the importance of
livelihoods, incomes and employment in the forestry-sector 5-year paper and by helping it to see the
substantive contribution of the sector to the formal and subsistence economy and the importance of
presenting this fact to national planners and decision makers. Also, the Ugandan Government Bureau of
Statistics (UBOS) has started getting data via a ‘community information system’ at sub-county level. UBOS
considers the ‘Participatory/Rapid Rural Appraisal’ methodology used in the PROFOR toolkit process to be
appropriate for area-specific communities to monitor their own progress against their own indicators.
Through a meeting with UBOS, the PROFOR research team showed the methodology used for field work
data collection and the UBOS staff now intends to use and adapt the tools described in the field guide for its
own rural community level information gathering. Concerning national level indicators, these have not been
easy to agree on. The GoU wants fewer indicators which are ‘actionable’ and the process of honing down
these indicators is still ongoing. A case study from toolkit testing field data is cited with quantitative figures in
the policy brief to the National Environment Management Authority.

Securing feedback from members of the Forestry Service and directing findings into GoU national planning
processes has worked extremely well in Uganda. In addition, forestry staff from Uganda and members of
the PROFOR research team have now been asked to assist with the development of the Rwanda national
forest sector plan. Livelihoods and employment issues will be particularly pertinent, and it is anticipated that
the PROFOR toolkit will be proposed as a means to collect community level forestry data. Hence this is
evidence of its regional influence and impact.

6. Progress against milestones and indicators

The piloting program was completed according to schedule.

7. Opportunities and/or obstacles/issues related to implementation of activity

9. Next steps
Cameroon
The national workshop at which the Forests-Poverty Toolkit findings were presented also discussed the
contribution of the follow-up and evaluation of DSRP by means of the new indicators outlined in the toolkit.
The National Statistics Institute will launch a study in 2009 on the contribution of the forestry sector to the
national economy and is considering use of the Forests-Poverty Toolkit as one of its survey tools. A

26
Canadian team currently working in many sectors in Cameroon will assist in assessing the indicators
including in the toolkit.
Ghana
Several platforms for discussing the policy messages of the Poverty-Forests Linkages Toolkit have
emerged. First is the review of GPRS II implementation which will begin at the end of October and which is
to involve policymakers responsible for directing the national poverty reduction strategy. Second is the
revision of the forest sector master plan that is now underway. And third is the policy dialogue around sector
budget support that is being led by the environment and natural resources Sector Working Group. With the
main author of the national briefing paper now a member of this group, the conditions have become
favorable for securing some policy engagement with the main findings of the toolkit in Ghana.
Madagascar
The national workshop on the Poverty-Forests Linkages toolkit resolved to convene a further specialized
workshop for the MAP Secretariat to consider the broader implications of the. This workshop was scheduled
for late September 2008. Participants at the national workshop also proposed a second, technical workshop
to discuss the specific implications of the toolkit findings for developing new indicators to assess the
progress of the MAP.
Uganda
The National Development Plan, which is scheduled to be completed in early 2009, is likely to incorporate
findings from the Poverty-Forests Linkage Toolkit pilot projects, since these are being taken into
consideration by the Environment sector Working Group tasked with helping to draft the plan.

10. Replication potential

The team is exploring the possibility of applying the toolkit in other countries in Africa (including Liberia). The
toolkit is already being widely used in individual activities and in the IUCN Livelihoods and Landscapes I
initiative, and is also being promoted within the Bank for potential use.

11. Budget
Table 1: Funding Overview
PROFOR Funding $ 15,713
Other sources : BNPP $ 550,000
TOTAL $ 565,713
PROFOR Funds used to date $ 15,713
Total Funds used to date $ 565,713

27
Private & Community Forestry-Developing Livelihoods on basis secure property rights in
S.E. Europe

Start date: January 2008

Status: ACTIVE
Proponent: Confederation of European Forest Owners (CEPF)

1. Geographical focus
South East Europe’s selected non-EU countries: Albania, Macedonia, Serbia

2. Objective
1. The livelihood approach in private and community forest policies will be strengthened - Valid without
change.
2. Contribution to enforcement of existing regulation and executing property rights to fight forest crimes –
Valid without change.
3. National forest programmes’ implementation assistance on private and community forestry aspects.
Valid without change.
4. Building up of networks for exchange at the sub-regional level. Valid without change.

3. Activity and output: progress to date

Activities:
 Project information dissemination to partner organisations in the target countries – Done
• Assessment and analysis of the status quo of private and community forestry assisted by national
consultants – Done
• Kick-off conference with participation of the countries’ forestry stakeholders and experts of neighboring
countries. Done in cooperation with FAO UN EUR/SEUR and SNV – 30.06-02.07.2008, in Skopje,
Macedonia (conference agenda attached-A1).
• Partner consultation s: done and continuously going on during project implementation in form
of National Steering Groups (NSG information attached-A2)
 Third project phase working plans agreed and available in Macedonia and Serbia and first draft
made in Albania, to be précised by the end of January (see attached – A3).
• Preparation of the closing sub-regional conference: Ongoing – in cooperation with FAO SEUR and
Ministry of Agriculture, Forestry and Water Management of Serbia. Host country shall be Serbia.
Date: week Nr. 21/22 to be fixed by the end of January 2009.

Outputs available:
- Status quo analysis available in all three countries in English and national language (pdf and printed)
- Kick-off conference conclusions in English and national languages
- Project web page developed and updated: see: www.cepf-eu.org under “activities in Central and
Eastern Europe”

4. Findings (either preliminary or final)

Preliminary findings:
 To objective 1: livelihood approach is closely attached to property rights’ implementation. This is not yet
recognized in the countries by administration and decision makers. Socialist heritage in regulation and
thinking is not yet mastered. The project triggers discussion on it however with other initiatives in the
sub-region (SNV work on civil society strengthening). This issue shall be addressed in phase 3 of
project implementation at the local and regional level events in the target countries.
 To objective 3: nfp implementation in the countries suffers on structural problems of forestry to be
addressed, further this is linked to personal concerns of the organizations in place. Progress and
decision making on those structural changes is very slow therefore. These impacts however on the role
of private forestry e.g. by the strong dominance of the state forest management organization acting also
as forestry authority towards private forest owners.

28
5. Impacts
 Project implementation is closely linked to SNV (Dutch Development Agency) and SIDA
(Swedish International Development Agency) activities on civil society development in the
countries: Macedonia and Albania having a strong forestry component. Consultation especially
with SNV is regularly ongoing and good (see MoU attached).
 In Serbia links were established to the FAO GCP project "Forestry sector development in
Serbia" financed by Finland and follow up is planned for the “Extension” GCP project.
 Further close links are established to the work program of FAO SEUR on forestry in CEEC and
the National Forest Program Facility. Consultation is regularly ongoing and good.
 World Bank Country Offices are informed on the project in Albania and Serbia. Colleagues are
part of the national project steering groups and informed according to needs: Mrs Dritta Dade
(Albania) and Ms Olivera Jordanovic. (Serbia).
 Private forestry stakeholders and forestry administration is interested on similar projects and
activities in Kosovo, Montenegro and Bosnia and Herzegovina.

6. Progress against milestones and indicators

Milestones Indicator Status Remark
NSGs set up and NSGs regularly Achieved NSG list attached
operational in all three meet and
countries functional
Status quo analysis Analysis are Achieved Studies introduced by authors
elaborated available to kick- at the conference
off conference
Kick-off conference Event took place Achieved 30.06-02.07.2008,
conducted Skopje/Macedonia. Agenda
attached
Status quo analysis a) Electronic Achieved
translated into national version
languages and printed available Achieved Albanian study’s printing is in
b) Printed version in 2 cases progress
available out of 3.
Country level events a) Serbia plan Achieved
plan of activity agreed available
and available (project b) Macedonia Achieved
phase 3) plan
available Not Draft is available, agreement
c) Albania plan achieved of the stakeholders to be
available expected by the end of
January

7. Opportunities and/or obstacles/issues related to implementation of activity

Opportunities:
 Synergies found to activities going on in the sub-region conducted by other international organisaitons,
such as SNV and FAO UN
 Formal policy processes in place at the national level to allocate activities within their frames (NFP/NFS
processes).
 Organization level of private forest owners achieved 2008 the threshold of getting active at the national
level and the NFP process in all countries even aims were defined differently according to development
level.
Challenges:
 Macedonia: NFS process progress is very slow. Administration is hard to motivate in this situation and
support was unsure until more trust could be built up, which is now the case.
 Albania: process in place is out of the range of the project, as this is the decentralization and
privatization of forests. It was a challenge to allocate the relatively small project in this process. Final
agreement is that events address areas of private forests only and not community forestry, which was
too demanding. Administration is very difficult to motivate of international projects as many others are
going on in Albania.

8. Changes to original activity time schedule

29
 Months (in the Form of a Bar Chart)
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Nr of Months
…
Activity 1: Preparation
(intended) Subtotal (1) 1
(actual) 2
Change 1 month
Justification Delayed contracting procedure made necessary a longer preparation phase.
Conclusion Implementation not hindered - activity took place.
Activity 2: Project information
dissemination to partner
organisations in the target
countries
(intended) Subtotal (2) 1
(actual) 2
Change 2 months
Justification Delayed contracting made it necessary to send out final information and confirmation of the project
implementation with a delay of 2 months.
Conclusion Implementation not hindered - activity took place.
Activity 3: Status quo
analysis of forestry in the
target countries
(intended) Subtotal (3) 3
(actual) 5
Change 2 months
Justification Start up delay maintained.
Conclusion Implementation not hindered - activity took place. SQAs got ready to the kick-off conference.
Intended activity time kept. Delay got caught up by the preparation phase time dedicated to phase 3.
Activity 4: Kick-off conference
(intended) Subtotal (4) 1
(actual) 1
Change 2 months
Justification Start up delay maintained.
Conclusion Implementation not hindered - activity took place. Event co-organised with FAO and SNV. Intended
activity time kept. Delay got caught up by the preparation phase time dedicated to phase 3.
Activity 5: National workshop
implementation
(intended) Subtotal (5) 3
(actual) 4
Change Delay of 2 months and extension of phase by 1 month.
Justification 7 weeks illness of main responsible project staff in the preparation phase to activity 5.
Conclusion Activities of implementation prepared and agreed with the country partners. Implementation possible
in later project months. Delay will be caught up by the preparation phase and planned reserve time
of implementation. Deadlines of the final phase shall be kept.
Activity 6: Closing project
conference at the sub-regional
scale
(intended) Subtotal (6) 1
(actual) 1
Change No change.
Conclusion Conference to be held in Serbia.at the week nr 21/22 in cooperation with national partners and
FAO, SNV, WB Country Office
Activity 7: Final reporting and
follow up planning
(intended) Subtotal (7)
1
(actual) 1
Change No change
Conclusion Project to be ended according to contract and planning. Follow up to agree with national and
international partners.

9. Next steps
 Activity 5 shall be finished in project month nr 16.
 Activity 6 of the closing conference to be conducted in project month 17. Host country shall be Serbia.
Preparation is running. Date is agreed to be 3 days at week nr 21/22. Project partners informed and
agreed on.

30
 Final reporting in project month nr 18 as planned.

Follow up and opportunities:

 Private forestry stakeholders and forestry administration is interested on similar projects and activities in
Kosovo, Montenegro and Bosnia and Herzegovina. This would also offer chances to follow up on
progress in the current project countries, especially as Bosnia and Montenegro has close links to
forestry development in Serbia and the same relates of Kosovo to Macedonia and Albania.
 Therefore a follow up project of similar scale and aims seems to be possible to set up in those
countries. Representatives of these countries attended the kick-off conference and will be invited to the
closing conference and will be interviewed on interest on a similar project involvement.

10. Replication potential

 Outside Europe: in countries where non-state forest property develops, e.g. after privatization or civil
society development and the countries address forestry in a national level development program
(NFP like).
 In Europe: in other non-EU South East European countries, like e.g. Montenegro, Kosovo and Bosnia
and Herzegovina.
o Privatisation in forestry progresses and the private forest sector and the responsible
administration fight similar problems as addressed in the current running project.
o National partners seem to be interested in a similar project addressing issues of non-state
forestry as part of their national forestry development process.
o Also international organizations with similar synergic activities in the sub-region expressed
their options of support as potential partners in case of follow up projects. SNV and FAO
SEUR is positively viewing the possibility of a follow up project in the sub-region with the target
countries as described above.
The potential for project replication in these countries is assessed as strong.

11. Budget

Table 1: Funding Overview

PROFOR Funding $150,000
Other sources (list)
CEPF $5,000
FAO $20,000
SNV (estimated) $5,000
TOTAL $180,000
PROFOR Funds used to date $82,325.05
Total Funds used to date $98,325.05

31
Forest Enterprise Information Exchange (FEINEX) : A pilot in India as part of the Forest
Connect Initiative

Start date: May 2008

Status: ACTIVE
Proponent: Community Enterprise Forum International (CEFI)

1. Geographical focus
India
2. Objective
As part of the Forest Connect alliance aimed at reducing poverty by linking small forest enterprises
better to markets, service providers and policy processes the consultant will evaluate the most cost
effective mechanisms to enable a service delivery environment and enhance quality of service
provision for the growing number of SMEs in the forest domain.
3. Activity and output: progress to date
Activities
1) Project Set up and team development - The project secretariat has been set up at the current operating
premises of CEFI in New Delhi.
Output: A team of project manager, research fellow and consultants are put in place to manage the initial
set of deliverables.
2) Assessment of the agri business service delivery environment - This is a key area of work for the
FEINEX initiative and activities were targeted in the project implementation states of Orissa,
Maharashtra. The assessment exercise has been initiated for three categories of stakeholders
a. Agriculture service extension system of the central and state governments – Comprising mainly of
Krishi Vigyan Kendras (KVK). The survey is currently underway and a working paper is expected
by the end of January 2009 on the same.
b. Private Sector service delivery stakeholders – At least three of leading agribusiness corporates in
India were assessed. A working paper would be ready for circulation by January 10, 2009
c. Producer perspective of service delivery (agribusiness segment) – Questionnaire is currently being
developed for this assessment.
Outputs:
 Working paper - Overview of Agribusiness Service Delivery in India
 Database of KVKs and their portfolio of services
 Plant disease outbreak and management information database
 Stakeholder database of current service providers and intermediaries

3) Develop a database of information and qualified service providers in three realms:

First level of identification of service providers and an advisory group formation process initiated.
Collaboration with government in Orissa and Maharashtra rolled out. Given that government exercises
control on forests and produce emerging from forests, they are an important group of stakeholders to
connect with for design, development and progressive usage of FEINEX as an information exchange.
Outputs:
 Database generation already underway. 1000 entrepreneurs and service providers - 750 more
contacted
 Meetings held with forest secretaries and principal conservators of project implementation areas
 Workshop organised with multiple stakeholders (one in Bhubaneshwar, Orissa and one in Pune,
Maharashtra).

4) Share lessons learned via FEINEX through Forest Connect Alliance: use the FEINEX experience to
contribute to the development of toolkit for guidance being developed by Forest Connect.

32
CEFI attended the first meeting of Forest Connect in Edinburgh. CEFI representative Leena Chakrabarti
nominated to Steering Committee for FC Alliance and would support development of toolkit for SMFEs.
Outputs:
 First meeting attended and preliminary sharing of concept as well as scope of work assessed
 Forest Connect Steering committee membership
 Commitment to develop two modules of the forest connect toolkit
4. Findings (either preliminary or final)
This is a very early stage of the project and only the first set of activities have started. Findings from the
agribusiness service delivery assessment in India would be consolidated through the working papers.
5. Impacts
As mentioned the project is at a very early stage. However some initial progress has already been achieved
which is expected to have impact within the period of project implementation.
1) Linkage established with Forest Connect supported by PROFOR. Experience on the SMFE sector
in India shared. Service delivery to enterprises (forest) and experiential evidence was shared with
the forest connect group which in the first phase has significantly informed the process. CEFI would
develop communication and service delivery modules of toolkit for SMFEs.
2) CEFI engaged by governments of Orissa and Maharashtra to draw out the Five year Action Plans
for state w.r.t forest produce. This opportunity has now been successfully used to promote FEINEX
as a government action point for the states.
3) Support to pilot initiative in some areas has also been received from other donors. A plan is
currently being drawn out for the engagement of UNDP in the process through the Small Grants
Programme for India.
6. Progress against milestones and indicators
Milestone 1: Evaluation of the service delivery environment for agribusiness enterprise.
Progress: Primary research completed; assessment data collected; two working papers being
developed; two referral workshops held. Overview report on Agribusiness Service Delivery in
India to be circulated by January 10, 2009
Milestone 2: Develop a database of information and qualified service providers (in three realms).
Progress: Work has begun on this milestone. Database of at least 1000 stakeholders generated.
Database for both states for the Government managed extension system participants also
developed. Communication initiated with 700 more organisations and service providers to
generate further information on stakeholders.
Milestone 3: Membership campaign for FEINEX.
Progress: This set of activities is due to start later according to the agreed timeline
Milestone 4: ICT platform of FEINEX operation
Progress: Not initiated
Milestone 5: Draft input to Forest Connect toolkit
Progress: First round of sharing completed through participation in the first toolkit development
workshop, contribution made on the basis of experiential evidence in India. Specific
contribution made in the area of communication platforms and service delivery to SMFEs.
TOR drawn out with IIED and FAO for development of two modules within the toolkit
framework for Forest Connect
The project implementation is at the preliminary stage and indicator based measurement of
impact could only be tracked after March 2009.

7. Opportunities and/or obstacles/issues related to implementation of activity

Opportunity: A significant opportunity has arisen through CEFI’s engagement by State authorities
where project is being implemented to draw out the fiver year action plan for the
government. This has provided a key impetus to the initiative through its integration into
the five-year plan of the state. Also at the same time CEFI is now working towards

33
 drawing the same action plan for five more states in India, which would provide a means
of replicating the success of FEINEX once it is successfully piloted in the identified states.
Challenge: Heavy rains in eastern India during onset of project caused an initial delay in undertaking
primary research activities. This caused a lag of about 45 days in delivering the first output
of the project..
8. Changes to original activity time schedule

Months (in the Form of a Bar Chart)

Activities 1 2 3 4 5 6 7 8 9 10 11 12 - 18 Number of Months

Activity 1: Subtotal (5)
(Intended) .
(Actual)
Activity 2: Subtotal (2)
(Intended) No change envisaged
(Actual)
Activity 3: Subtotal (3)
(Intended) No Change envisaged
(Actual)
Activity 4: Subtotal (4)
(Intended) No change envisaged
(Actual)
Activity 5: Subtotal (5)
(Intended) No change envisaged
(Actual)

9. Next steps
1) An advisory Committee cutting across stakeholders would be developed to set up a structured
mode of feedback to the process of FEINEX development
2) Database of stakeholders under three realms being developed
3) Benchmarking parameters of service providers would be designed and tested through feedback of
the advisory group and a core group of providers
4) ICT platform tenets would be designed
5) Series of working papers on different aspects of the initiative to be developed and circulated
10. Replication potential
Potential is expected to be high and some of the opportunities created at the beginning of the initiative and
mentioned earlier in relevant sections have raised the hope of being able to replicate the project in other
areas in India within the project period.
11. Budget
Table 1: Funding Overview
PROFOR Funding $ 156,011
Other sources IIED $ 6,500
CEFI $ 10,000
TOTAL $172,511
PROFOR Funds as of 11/08) $ 15,994
Total Funds used to date $ 19,244

34
Forest Connect: Developing a toolkit to facilitate support for forest SMEs

Start date: May 2008

Status: ACTIVE
Proponent: International Institute for Environment and Development (IIED)

1. Geographical focus
Global - with partners in Burkina Faso, Ghana, Guatemala, Guyana, Mozambique and Nepal (plus potential
links to and inputs from a separately funded PROFOR proposal from Community enterprise Forum
International, India, a separately funded PROFOR proposal in Mexico, Guatemala and Honduras from
Rainforest Alliance).

2. Objective
The project’s objective is to develop a toolkit for the facilitation of support for small and medium forest
enterprises – helping to build social, economic and environmental sustainability amongst SMFEs and their
associations by connecting them:
• to emerging markets - by strengthening associations and enhancing market links;
• to service providers – by strengthening information about, and markets for, financial service and
business development service providers – based around sustainable practices; and,
• to national forest programme (nfp) processes – by empowering them to shape policy processes that
control the broader business environment.

Small and medium forest enterprises (SMFEs) and their associations offer particular advantages for poverty
reduction. They accrue wealth locally, empower local entrepreneurship, strengthen social networks and
engender local social and environmental accountability. But in least developed countries (LDCs), structures
that connect with and support SMFEs and their associations are weak. The result is all too frequently social
breakdown, economic failure and degradation of the forest resource on which SMFEs are based. This
project addresses this lack of connectedness – based on substantial evidence of demand from in-country
partners (and from linked initiatives in India plus unsolicited requests for support, which we currently cannot
respond to in this proposal, but who may contribute to and make use of the final product - such as China,
Democratic Republic of Congo, Ethiopia, Kenya, Mali and Sierra Leone).

The anticipated outcome is less constrained and more sustainable SMFEs, served by flourishing financial
service and business development service markets .

3. Activity and output: progress to date

A background report “Supporting small forest enterprises – a cross-sectoral review of best practice” was
prepared prior to the start of this project with some ideas for the main areas of guidance that might be
needed to enhance support to small forest enterprises. It was published and distributed to Forest Connect
project members early in the project in June 2008. An international networking site was launched prior to the
project but substantially developed and populated with useful material on small forest enterprise support
from June 2008 to December 2008. The 250 members from 48 countries have been alerted to the
background report, as a featured report on this website (http://forestconnect.ning.com). Bimonthly email
newsletters from this website have helped to encourage feedback on a range of issues – including the most
appropriate training materials for supporters of small forest enterprises.

An international workshop was held in Edinburgh from 2-4 July 2008 which brought together Forest Connect
members from 12 countries with a range of expert resource persons in areas such as: access to finance,
product development, producer group organization, business development services, agricultural and
community forest business support programmes. Over three days the workshop (i) showcased country
specific innovations in support of small forest enterprises, (ii) identified the underlying causes of problems in
the struggle to support small forest enterprises, and (iii) prioritized areas where further guidance would be
useful. The end result will be a toolkit framework that is truly demand driven. Each country team also
identified local case studies which they felt would provide useful lessons for different elements of that future
guidance material. A workshop report was produced and circulated widely, for example on the networking
site and various other international SMFE sites (see http://www.iied.org/pubs/pdfs/G02295.pdf).

Two important developments immediately followed the workshop. First, an international steering committee
for the project was elected by Forest Connect members – with elected representatives from the Rainforest
Alliance (Central America), ANSAB (Nepal), CEFI (India), TreeAid (Burkina Faso) and INAB (Guatemala)

35
alongside IIED and FAO. Second, this steering committee helped both to shape the main areas in which
further guidance was considered appropriate (from the workshop) into a toolkit framework, and to identify
experts within the Forest Connect alliance who had the expertise required to write the initial draft of the
toolkit modules. Approaches have now been made to lead authors for the toolkit modules with drafts
expected by March 2009.

The backbone of the Forest Connect project involves ongoing work to support small forest enterprises in 6
partner countries (Burkina Faso, Ghana, Guatemala, Guyana, Mozambique and Nepal) plus linked work
through separate PROFOR projects in India (through CEFI) and Central America (through the Rainforest
Alliance) In addition IIED and FAO separately support Forest Connect partners in China, Ethiopia, Lao PDR
and Mali. Participation in the workshop has enabled each country team to focus on particular areas of work
where they might contribute relevant findings to the toolkit guidance. For example, a recent diagnostic on
small forest enterprises from Burkina Faso
(http://api.ning.com/files/e*HwoOL5fQXaz8Q2HrZHGATxw4RuSgTIrAG5b08BAxIi1VpN*JEyT8SRG3HO965
DJzh6uoCy5WnY3M9egfNPExYY6SxqzTir/SMFE_diagnostic_study_in_BF_ENG.pdf) and subsequent
business plan development using the Market Access and Development (MA&D) will be used to contribute
thinking on a guidance module on ‘Market literacy and understanding’.

The mapping of service providers in the recent Guatemala diagnostic on small forest enterprises
(http://api.ning.com/files/ERvUaX951KdmuUFsxiOlQkTRCCbqbv5wcSgP746rNAQDXV7BT9B8uVA5-rS-
yCBILgYSYsw640vYSwnT3rXNQZku3bNzgCuY/DOCUMENTOFINALDIAGNOSTICOFORESTCONNECT.p
df) and further work to identify particular upgrading options will contribute towards a guidance module on
‘Mapping and benchmarking service providers’.

The work in Nepal to strengthen producer organizations for specific forest products will contribute towards a
guidance module on the same topic. Similar inputs could be detailed for all the partner countries.

4. Findings (either preliminary or final)

While still preliminary in nature, our main findings to date have been a clear identification of the main areas
in which further guidance is needed for organization attempting to support small forest enterprises. A
toolkit framework has been developed both at the workshop and through subsequent inputs by Forest
Connect partners – it includes at least the following elements:

AUDIENCE 1. EXTERNAL AGENCIES

COMPONENT 1. FACILITATION CAPACITY BUILDING
 Module 1. Identifying national facilitation hub institutions
 Module 2. Managing an international peer-peer learning group or alliance
 Module 3. Setting up monitoring processes

AUDIENCE 2. NATIONAL FACILITATORS

COMPONENT 2. FACILITATION PLANNING
 Module 4. Introducing the ‘market system development’ approach
 Module 5. Small forest enterprise diagnostics and data collection
 Module 6. Mapping and benchmarking support services
 Module 7. Value chain analysis
 Module 8. Prioritisation and sequencing of activities
 Module 9. Designing communication strategies
COMPONENT 3. FACILITATION IN ACTION
 Module 10. Developing market understanding and literacy
 Module 11. Product development
 Module 12. Business planning and the facilitation of business development services
 Module 13. Financial planning and the facilitation of financial services
 Module 14. Strengthening producer organisation governance and structures
 Module 15. Building in ecological sustainability from the start
 Module 16. Policy analysis for change
In support of the development of these guidance modules, almost all Forest Connect partners have now
embarked on or completed a diagnostic of the types and numbers of SMFEs in their country / region –
building databases for future reference. Many had mapped out potential service providers. Some had gone
much further to support collective action within SMFE producer associations, identifying, benchmarking and
linking service providers to them and exposing them to markets through newsletters, bulletin boards, mobile
phone updates, buyer-seller meetings and trade fairs. Some were experimenting with tying support to Forest

36
Connect membership based around particular ethical principles and criteria. Many had begun to establish
local level contact points (e.g. at village level) often piggy-backing on existing government or private sector
infrastructure. Most were working through value chain analysis towards clearer understanding of how forest
production could be made more sustainable and how forest governance in favour of responsible SMFEs
could be enhanced. National steering committees with newly established monitoring systems were also
emerging in many cases in support of such aims.

At the heart of Forest Connect is the notion of better linkages and communication for small forest
enterprises. Barriers to communication have been documented in geography, language, culture, differential
power, informality and mistrust and reciprocal lack of knowledge between SMFEs, service providers and
decision makers. Getting the right information to the right people is being addressed by using a range of
different media – from the high tech options emerging in countries such as China and India to the more
routine pictorial and voice based services in some of the other partner countries. Greater emphasis was
being placed on increasing the direct exposure of different actors (both market actors and decision makers)
to one another through facilitated meetings, fairs and dialogue processes. In particular market information
services were agreed to require more of such exposure, rather than relying solely on regular bursts of static
information.

5. Impacts
At PROFOR’s request, IIED have made every effort to build strong linkages with parallel PROFOR projects
in India (CEFI) and Central America (Rainforest Alliance). Both teams were invited to and participated in the
Forest Connect workshop held in Edinburgh. Project leaders on both sides have been independently elected
onto the Forest Connect steering committee. CEFI is taking the lead on the development of the guidance
module ‘Designing communication strategies’ as this reflects the core of their separate project. The
Rainforest Alliance is leading the development of the guidance module ‘Building in sustainability from the
start’.

Country partners from Ghana, Guatemala and Mozambique have helped, through IIED, to inform the World
Bank initiated ‘Growing Forest Partnerships’ initiative and Forest Connect alliance partners have been
nominated to the Reference Group that will inform the initiatives development. The strong overlap between
the GFP core countries and the Forest Connect alliances sphere of operation will help to build synergies
between these initiatives. For example, in Mozambique, efforts are being made to help shape the IFC /
World Bank’s forest financing initiative in favour of SMFEs. The Ghana team have been involved in the work
leading to the historic signing of the VPA agreement which links to World Bank initiatives on fiscal reform.
A range of links are emerging with investors such as Root Captial, Deutschebank or support organisations
such as Agricord who have been active on the project’s networking site as they develop practical options to
support SMFEs.

A presentation was made to the nfp-facility’s country coaches in Rome in order to brief them on the activities
envisaged within Forest Connect, the development of the toolkit and the need to role this out across various
nfp-facility partner countries. Coaches have committed time for the review of the first draft of the toolkit
module document as this is developed over the next five months.

There have also been concerted efforts to increase the complementarity of the Forest Connect alliance
activities and those of the EU, DGIS and DFID funded Forest Governance Learning Group (FGLG) which
operates in seven African and three Asian countries. The latter network has an ongoing focus on social
justice in forestry with a thematic emphasis on local rights and enterprise. Presentations on small forest
enterprise support have helped inform recent international FGLG meetings and Burkina Faso, Ghana, India
and Mozambique FGLG teams all have strong lines of work on small forest enterprises as do several FGLG
partner countries currently outside the Forest Connect alliance such as Cameroon, Malawi, Uganda and
Vietnam.

6. Progress against milestones and indicators

The three original milestones are listed below. The first and second have been met and the third is
anticipated to be met on schedule. The initial workshop was a few days later than originally planned owing to
the rather protracted contract process at project initiation which made a June date impossible, but was
successfully carried out nonetheless. The revised draft toolkit framework has been distributed to country
teams who are all involved in contributing content and helping to develop the guidance modules through
action learning. The lead authors of each of the 16 toolkit modules have been assigned and are currently
active in preparing that content.
Milestone 1 – International workshop to revise draft modular framework for toolkit (end June 2008)

37
 Milestone 2 – Revised draft of toolkit modules distributed to country partners who begin active testing
in-country (July 2008)
Milestone 3 – Development of content of toolkit modules in the light on in-country experience with
particular emphasis on ‘external agencies’ audience (March 2009).

7. Opportunities and/or obstacles/issues related to implementation of activity

Activities are progressing smoothly. There are obvious challenges to working across so many countries on
such major challenges with such limited budgets, where the in-country capacity and contexts vary hugely.
What for some partners is routine, for others represents a significant leap forward. But it is partly because of
this diversity that the learning approach to the development of this toolkit is proving so effective. Each
country team has expertise unique to it that can help the other teams move forward. Whether it is the: scale
and nature of community engagement in Burkina Faso; the range of VPA related activities in Ghana; the
political and service provider networking in Guatemala; the practical marketing approach in Guyana; the
communications expertise in India, the land and commercial rights focus in Mozambique or the strong
producer group empowerment activities in Nepal – each team has things to share that can benefit others.

8. Changes to original activity time schedule

The original time schedule is inserted below. There have been no changes or delays except for the
workshop being delayed a few days as described above – but this had no impact on ongoing activities.

PHASE 1 – YEAR 1 Months (in the Form of a Bar Chart

Activities 1 2 3 4 5 6 7 8 9 1 1 12 Number of
0 1 months
OUTPUT 1 – Draft toolkit modular framework
Work on review and draft toolkit module outline
(actual)
Initial workshop to discuss modules within the Output 1 Subtotal:
toolkit 2
(actual)
OUTPUT 2 – Develop content of toolkit modules
through in-country action learning
Develop content of toolkit modules with Output 2:
emphasis on external agencies audience Subtotal: 10
(actual)

9. Next steps
Country teams are actively working to support SMFEs in their respective countries and capturing relevant
guidance materials about how to do this to populate the toolkit framework by June 2009. Lead authors have
been assigned and IIED are coordinating the compilation and editing of the toolkit with peer review from the
Forest Connect steering committee. As soon as initial drafts are prepared they will be circulated to nfp-
facility coaches and to the wider Forest Connect membership for comment.

IIED are strongly committed to continuing interactions with world Bank staff on these issues – especially in
bimonthly catalytic group meetings of the ‘Growing Forest Partnership’s’ initiative where small forest
enterprise activities of the World Bank group, FAO, IUCN and IIED are exploring greater synergy

10. Replication potential

There is very high potential for replication of the tools and tactics in support of small forest enterprise that
will be captured in the toolkit. In part this is because the authors are all actively experimenting and doing
these activities already – so the guidance is likely to be practical and relevant. In part replication is made
more likely because we have been committed to build wider ownership of the toolkit through the review
process which will help to increase the chances of uptake and use among the wider network of Forest
Connect members in 47 countries. As draft toolkit modules are developed they will be posted to nfp-caoches
and to the networking website for comment. The guidance in many cases draws on experiences from
sectors beyond forestry and so is likely to be relevant both within and beyond the forest sector.

11. Budget
Spending is going to plan, with expenditure complete for activity 1.1 and almost complete for activity 1.2.
Slight underspend on the workshop has allowed us to put some additional costs towards local consultants
(Forest Connect participants at the workshop) who are helping develop the toolkit guidance modules, for
which work began at the workshop.

38
Table 1: Funding Overview
PROFOR Funding $ 152,852
Other sources (list)
IIED $ 103,477
FAO (not on IIED books) $ 28,250
NFP Facility(not on IIED books) $ 10,800
TOTAL $ 295, 379
PROFOR Funds used to date $ 135,150
Total Funds used to date $194,680

39
Strengthening the value chain for indigenous and community Forestry operations

Start date: May 2008

Status: ACTIVE
Proponent: Rainforest Alliance

1. Geographical focus
Global with specific examples from Mexico and Central America

2. Objective
The objective of the proposed project is to build the case for increased investments in community and
indigenous small- and medium-sized forestry enterprises (SMEs), and the provision of technical assistance
for value-added processing in the certified forest product supply chain.
This objective will be achieved through the development of three detailed case studies that capture
experiences and data from Rainforest Alliance’s TREES (Training, Extension, Enterprises and Sourcing)
program, which has been working with community and indigenous forestry operations in Mexico, Guatemala,
and Honduras since 2002. Areas to be highlighted in the case studies include:
Improved competitiveness for community and indigenous forest operations through improvements in primary
processing that lower production costs while increasing product quality;
Investments in wood kilns and secondary processing equipment that lead to increased employment
opportunities, both overall and especially for women; and
Development of secondary-level, community-owned businesses to aggregate supply, provide value-added
processing services, attract buyers and/or market value added products.

3. Activity and output: progress to date

Activity 1: Development of the three case studies of Ejido San Bernardino de Milpillas, Durango,
Mexico; FORESCOM Petén, Guatemala, and Union of Agroforestry Cooperatives of the Rio Platano
Biosphere Reserve, Honduras (UNICAF-BRP). : During the months of June and July 2008, a coordinator
was identified to manage the production of the three case studies with similar data analysis and collection
methods. Local consultants were also identified with the previous Rainforest Alliance experience and close
working relationships with the communities to be highlighted. Through in-person meetings with key
Rainforest Alliance forestry staff, a set of 16 tools and documents were compiled and reviewed to determine
which had the best overall potential to be used globally. Similarly, key indicators were reviewed by which to
frame the case studies. These will include baseline and after data, highlight the importance and impacts of
investments, and underline the role of technical assistance. Such indicators are meant not just for donors
but, more importantly, will serve as data for use by decision makers within the communities.

The set of materials and indicators were discussed at in-person meetings in each country. Data collection for
each country was standardized as much as possible, but each country presented unique situations and data
collection needs, so some adjustment was necessary. Data to be collected in the case studies include:

1) Forest harvest indicators (what percentage of annual allowable cut was actually harvested, and in the
case of tropical operations, percentages broken down by species);

2) Wood processing indicators, such as sawmilling yields, board foot per cubed meter (bf/m3), percentage of
wood produced in different grade classes, and daily production (bf/person day);

3) Business capacity, as measured by number of workers, specialized positions, timely deliveries and
investments;

4) Sales data, such as percent of sales to FSC buyers, average income per board foot and product mix.

4. Findings (either preliminary or final)

By bringing together as much data as possible for analysis we will draw significant lessons from the three
case studies. The time frame between baseline data and final data for the case studies will vary, with 3-4
years between data points for Mexico and Guatemala and only 1-2 years for Honduras. Some of the
indicators will be combined to estimate large-impact figures, such as changes in overall income. Income
changes will be influenced by many small indicators such as sawmilling efficiencies, changes in wood
product quality and changes in product mixes.

5. Impacts

40
 The larger impact effects we hope to emphasize are: 1) changes in income (and how it was achieved); 2)
return on investment; and 3) the role of technical assistance in bringing investments to their full potential.
Furthermore, we plan to highlight the use of key tools used by the communities to diagnose, plan, and
implement changes to their businesses.

Rainforest Alliance attended the International Institute for Environment and Development (IIED) Forest
Connect planning meeting in July 2008 and has recently been elected to serve as the external expert on the
Forest Connect Alliance Steering Committee. We thank the World Bank’s Program on Forests (PROFOR)
for putting us in touch with this excellent network. We will be reviewing some of the tools they are developing
under PROFOR and will lead with one tool development.

6. Progress against milestones and indicators

Key project milestones included the following.
Activity 1: Establishment of field data collection schedule—Month 3 COMPLETED
Drafting of case studies—Month 9 IN PROCESS
Translating of case studies—Month 12
Printing of final case studies—Month 14
Activity 2: Attendance at IIED workshop—Month 3
Uploading of case studies—Month 15
Presentation at Guatemala Expo Forestal—Month 16
Presentation at Mexico Expo Forestal—Month 17
Presentation at World Forestry Congress—Month 17
Our project started in July 2008. We have completed the field data schedule and submitted a report to
PROFOR on that process and the indicators to be collected. We have received and incorporated Profor’s
suggestions on further indicators. The field data collection and draft case studies are in process. We are on
schedule.

7. Opportunities and/or obstacles/issues related to implementation of activity

There have been several opportunities. The first is greater collaborative work with IIED where we
are coordinating on tools for SMEs. In Mexico, the WB is developing a third phase community
forest project (PROCYMEF) and is eager to see our Mexico case study and lessons learned which
should help to quantify economic impact of PROCYMEF II and to inform design in the second
phase.

8. Changes to original activity time schedule

We are on schedule and do not at this time anticipate any changes to the schedule. The work did
not start in May as anticipated but rather July, after final signing of Profor contract. The IIED
workshop was held in July 2008.

Months
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Total
Activity 1: Case studies 14
Hire consultants
(intended) 2
(actual)
Establish field data collection schedule
(intended) 2
(actual)
Field data collection--Mexico
(intended) 2
(actual)
Field data collection--Guatemala
(intended) 2
(actual)
Field data collection--Honduras
(intended) 2
(actual)
Drafting of case studies
(intended) 4
(actual)
Case study review and finalization

41
 (intended) 1
(actual)
Translation of case studies
(intended) 2
(actual)
Printing of case studies
(intended) 2
(actual)
Activity 2: Workshops 3
Attendance of IIED planning workshop
(intended) 1
(actual)
Uploading of case studies and tools &
websites
(intended) 1
(actual)
Mexico Expo Forestal Presentation
(intended) 1
(actual)
Guatemala Expo Forestal Presentation
(intended) 1
(actual)
XIII World Forestry Conference
Presentation
(intended) 1
(actual)

Reports due
(intended) 3
(actual)

9. Next steps
A highly competent field team is in place to start the field data collection. A thorough vetting of case study
data and indicators has taken place with consultants and Rainforest Alliance field staff to ensure that each
case study is covering the relevant issues. A chronogram of activities has been agreed upon and field work
is underway.

10. Replication potential

The variables being used to measure economic and social impact are relevant across many countries and
regions within the forestry sector. The challenge in larger projects is how to get access to such detailed data
which many SMEs don’t usually collect. CONAFOR in Mexico is interested to develop better impact
indicators of their programs and we will be discussing with them how some of these indicators might be
collected on a larger scale to look at the impact of country-level forestry projects.

42
11. Budget
Table 1: Funding Overview
PROFOR Funding $ 149,944
Rainforest Alliance Funding $ 104,280
TOTAL $ 254,223
PROFOR Funds used to date $
Total Funds used to date $

43
Policies and Incentives for Miombo Management

Start date: 2007

Status: CLOSED but administratively active during 2008
Proponent: World Bank

1. Geographical focus
Southern Africa (Mozambique, Zambia, Tanzania.)

2. Objective
The objective of this activity is to develop a framework for an improved understanding of the linkage
between rural livelihoods and miombo woodlands, better to inform the development of social and economic
policies which have poverty alleviation as their primary objective.

3. Activity and output: progress to date

This activity has been completed. There are four primary sets of activities and outputs: household studies,
national level analyses, technical assessments, and policy reviews.
The project has been supporting several household studies, in Zambia and Mozambique. These have been
designed to develop a clearer picture of the role of miombo woodlands in household consumption and is an
outcome of intensive, seasonal structured household surveys, which have form the core of the original work
supported by this project. These have been carried out following the methodology described in Cavendish
(1999a,b and 2002), and developed further and modified by Campbell et al (2002).

The first study, in two districts in Zambia, showed that even amongst so-called ‘farming households,’ income
from collecting forest products (in Mufulira and Kabompo districts) was far more important in meeting
households’ needs than the individual contributions of all other sectors. Rather than just being
complementary to other activities, the study revealed that forest income is actually quite central to household
livelihoods. At the same time, the study noted that these practices which enable households to make a living
are likely not sustainable. Continued access to woodland resources is highly threatened by a number of
factors that include high rates of deforestation, elite capture of high value resources, and poorly organized
marketing of forest products. The second study, undertaken in villages located in the buffer zone of the
Gorongosa National Park (GNP) in the Sofala Province, Mozambique considered similar dimensions to
woodland resource use, but also examined the impact of household shocks (sickness and fire) on woodland
resource dependence as well as the impact of a carbon sequestration PES scheme. In addition to
confirming the high levels of dependence on woodland resources for household income, households
experiencing shocks were more likely to depend on NTFPs for sale, than other households. Conversely,
households participating in the PES scheme were less likely to depend on woodland resources for income
than other households.

Two national level assessments were carried out, the first in Zambia on the contribution of dry forests to
economic development derived from a synthesis of empirical household studies, policy research, silvicultural
and ecological studies, and other primary sources. This synthesis was modeled after studies described in
Campbell (1996), as well as earlier Bank-financed studies such as Bradley and McNamara (1993) (which
described the contribution of dry woodland management to the Zimbabwean economy). A second country
case study reviewed community-based woodland management opportunities in Mozambique and
synthesized the results of other primary studies. It focused on the fact that a strong policy objectives is
supported only by a weak legal framework for community-based miombo management.
A technical review has been completed which considered miombo silviculture, and how management
systems could be improved or otherwise put in place to increase productivity. The review pointed out how
much of our understanding of miombo silviculture is only weakly informed by an appreciation of their
importance for rural poverty alleviation, and is instead, largely a reflection of earlier priorities on timber
production.

Finally, two policy papers have been completed. The first considers barriers and opportunities for miombo
woodland management, and the second identifies the scope for policy reform specifically to more fully
enable poor rural households to manage miombo woodlands.
The findings have been edited and compiled into two volumes, and these in turn were reviewed and
disseminated internally in the Bank. The first, Managing the Miombo Woodlands of Southern Africa:
Policies, incentives and options for the rural poor summarizes the overall study’s findings in a short policy
note. The second contains all of the technical outputs which were prepared with project support.

44
4. Findings (either preliminary or final)
Findings are reviewed in the previous section. The research team convened in a workshop in Zambia in
November 2007 to review overall project findings. The reports from the workshop are available on-line at:
http://www.cifor.cgiar.org/miombo/index.htm

5. Impacts
The various reports and studies which have been prepared have been consolidated into a regional piece of
AAA for southern Africa, and are expected to give prominence to the importance of woodland management
in household poverty alleviation strategies.

PROFOR funding complemented TFESSD funding for this activity, and also leveraged additional financing
via CIFOR’s Poverty and Environment Network. Specifically, PROFOR funding helped support the final
Zambia workshop, and to begin editing of the final AAA.

Agreement has been reached with the Bank publisher to publish the project’s findings. The papers are
currently being peer reviewed with this objective in mind. Formal publication will likely take place some time
in 2009.

6. Progress against milestones and indicators

The original milestones envisaged completion by end-November 2007. The final versions of the various
individual outputs were produced at the end of December 2007, and were finalized after internal Bank
review in April 2008.

7. Opportunities and/or obstacles/issues related to implementation of activity

The key and critical opportunity this project exploited was in establishing a partnership with CIFOR. This
enabled us to tap into its regional network of researchers and institutions, and gave the activity a profile we
might not otherwise have had.

8. Changes to original activity time schedule

There were no significant changes, per 6 above.

9. Next steps
Outputs are to be edited into a volume for publication and dissemination.

10. Replication potential

The model of working with the CG centers in developing and implementing a targeted program of policy and
empirical research is well-established, but little used, Bank-wide. The benefits to doing so are significant,
and the transactions costs are kept to a minimum if the framework has been agreed.

11. Budget

Table 1: Funding Overview

PROFOR Funding $ 15,000
Other sources $ 294,000
Total $ 309,000
PROFOR Funds used to date $ 13,139
Total Funds used to date $ 307,139

45
Governance
The Role of Informal Institutions and Forest Governance
Start date: August 2007
Status: CLOSED
Proponent: Center for International Forestry Research (CIFOR)

1. Geographical focus
Regional: Brazil, State of Pará´; Bolivia; Nicaragua and Guatemala. (The countries and sites were shared
with the ´twin´ project ¨Access and Livelihoods in Community Forests¨ )

2. Objective
The main goal was to generate recommendations for corrective measures that would decrease incentives
for corrupt behavior and clientelism, which hamper the development of working rules as positive incentives.
In this vein, better checks and balances will be explored among institutions working at different government
levels through the design of institutional mechanisms to improve the performance of the organizations
involved in forest resource use.

3. Activity and output: progress to date

This effort is what united this particular project with its ´twin´project on ¨Informal Institutions and Governance
in Forest Communities.¨ The conceptual framework and instruments for conducting the research were
developed within a larger project that included additional funding and was also carried out in Africa and Asia.
This was the first CIFOR-Rights and Resources Initiative global research project designed to focus on cases
where recent changes in forest tenure, regulations and access to markets for local communities have taken
place. Additional efforts were made to develop the analytic lens for understanding the role of informal
institutions and their interface with formal ones for these same cases. The countries and cases were
selected as representative of the most significant tenure reforms in the forest areas of Latin America.

To date, the materials related to the conceptual framework and instruments have been turned into Profor, all
the field work has been completed, site reports were finalized and duly submitted and the final comparative
paper - the principal written output- is being published. External reviewers have submitted comments and
the research have addressed them. Final submission of the manuscript for publication as part of the CIFOR
– Governance Series will take place in September.

Local workshops were conducted at all of the sites to present findings to the communities and partner
organizations involved. Several larger dissemination and policy events have already taken place in Bolivia
and Brazil. Four papers based on this research were prepared by CIFOR staff and co-authors from partner
organizations and presented at the Biennial Conference of the International Association of the Study of the
Commons, in Cheltenham, England in July, 2008. The pooling of resources (w/ IDRC/Ford funding) will
allow for a series of larger and/or more policy events to be undertaken in Guatemala, Nicaragua, and
Bolivia, some that will engage Bank and other donor staff.

4. Findings
Attention to the ‘working rules’ constitute the key focal point for understanding how institutions shape social
behavior in forest resource management and benefit generation and distribution. The dichotomy between
formal and informal institutions take on relative importance, it is their interaction that matters in assessing
human behavior. Four areas of behavior that affect forest resource use by smallholders and communities
were examined a) the interface of statutory and practiced ‘rules of the game’ that guide how smallholders
and communities control, allocate, legitimize and enforce land and forest tenure rights, b) local systems for
forest resource use and management under the imposition of formal regulations, models c) smallholder
interaction with markets, influenced by the constraints and opportunities produced by formal regulations, and
market conditions that affect decision making and benefits.

 The outcome of formalization of land rights in indigenous territories does not depend greatly on the
content of formal rules – since most schemes tend to recognize customary rules – but in their
modes of implementation. The approach to recognizing collective customary rights seems to have
worked relatively well in the RAAN, Nicaragua but it has led to increasing conflict around tenure
rights and land speculation in Guarayos, Bolivia. This is mainly due to the construction of new

46
 (informal) rules of the game, first for expanding the occupation of community settlements in claimed
lands but with insecure rights, and second for certifying illegal rights of third parties inside the TCO.
In contrast, in the RAAN informal rules arose for controlling the rights of third parties within
indigenous land. In all cases, the growth of informal land markets, forbidden by law (formal rules)
and tolerated by local informal rules, tends to become the primary mechanism for land
redistribution, mainly in the areas more exposed to external agents.
 Externally designed formal rules for regulating forest resources management face the highly
constructed reality of informal rules guiding the behavior of both individual and social groups to land
and forest resource access. Homogenous frames for regulating forest resource use neglect
relatively complex realities and working rules for forest resources management that are already in
place, which often are not conceived for operating in open market situations, requiring adaption to
the new and evolving contexts greatly shaped by the enforcement of formal rules. Most proposed
organizational solutions, inspired in entrepreneurial models, do not incorporate local institutional
arrangements, and thus lead to new problems in land access, decision making for forest resource
use, and benefit generation and distribution.
 In most cases studied, there are a few formal rules embracing the management of non timber
forest products (NTFP), and hence working rules for using these resources are largely influenced
by existing informal rules which are relatively well developed (including hunting), as local
populations tend to depend more on them for their local livelihoods. The formal rules devised for
Reduced Impact Logging practices, are based on the model of large scale commercial logging,
with implied intensive logging and silvicultural practices from an industrial scale and modus
operandi. The results tend to be ‘cross-purposes’ in the field, reinforcing abandonment of the first
and unnecessary complexity and time consuming to attain the second.
 Smallholders and communities cannot afford the formulation of the Forest Management Plans or
the transaction costs involved in their approval, complicated by the fact that the rules of the game
neglect existing working rules, often tied to previously existing governance structures. The formal
rules have tended to favor forest actors with better asset endowments and far greater bargaining
power in the markets. Forest user groups must constitute formal enterprises and register them, pay
the stipulated taxes and comply with labor regulations, all designed for larger scale operations.
Compliance introduces bias in the markets excluding those with limited resources and conditions to
fulfill such requests. As only forest products produced in compliance with the forestry regulations
can be sold in the formal markets, those unable to comply face confiscation and thus are forced to
seek informal and/or illegal markets. External support and subsidies have helped some local
groups to overcome such barriers.
 Noncompliance, however, is not necessarily an insurmountable obstacle for accessing timber
markets due to the existence of extensive shadow networks, operating informally, that offer
alternative market channels. These informal networks are problematic as they tend to concentrate
economic benefits outside the communities. Nonetheless, communities engage extensively in
informal markets with a diverse range of actors (i.e., local loggers, sawmill owners, forest
concessionaires, timber companies), in order to avoid the formal rules. The result limits their power
to negotiate and drives down the price of wood. Most forest actors engage in both formal and
informal markets which makes it difficult to distinguish these entangled interactions in the market
place.
 Two broad trends arise related to the formalization of land tenure, implantation of forest
management models in smallholder and community lands, and the development of timber markets.
First, although local forest users have gained formal rights over their land and forest resources,
most do not hold the management rights, limiting their decision-making regarding resource use.
Second, this in turn restricts their capacity to capture the economic benefits of using such
resources; their capacity to compete in the markets is mediated by the challenges of managerial
skills, bargaining power, and market knowledge inherent in the industrial model, among others.
Finally, structural limitations continue to be faced shaped by asymmetric power and information in
the marketplace. Few external support policies and projects address this.

5. Impacts
To be determined, as written materials are being published and events are underway.

6. Opportunities and/or obstacles/issues related to implementation of activity

Challenges:
In Bolivia and Brazil access to the informal market networks that form the interface between community
forests and industry is difficult and risky. Given that this ´informal´ realm of operations is often considered
illegal, information sharing –particularly with respect to organizational ties and modus operandi- is not
practiced. Future research on this topic would require additional time and methods in order to answer the

47
questions fully. In Nicaragua, Hurricane Felix hit the research region at the height of the field work period,
causing major setbacks in the work. The impact of the Hurricane radically changed the nature of the
situation (more than 600,000 manzanas of contiguous forestland were uprooted or downed).

Opportunities
In most of the countries there has been a high level of receptivity by both forest community organizations,
NGO´s and governments. Highlights are the cases of Bolivia and Guatemala. The Bolivian forest authorities
and the leading indigenous Amazonian organization (CIDOB) have ´scooped´up findings and
recommendations before final products were presented. CIFOR staff has played the role of advisors to both
and channeled inputs into multiple policy-making efforts during the entire project life. In Guatemala, results
have been mostly helpful to the community concessionaire organizations to help them reflect critically on
their own situation and to formulate policy proposals to the governmental authorities, in this case those
related to conservation, tourism and agriculture. In both countries, the research sites –though tension-filled-
are serving as milestones for learning and shaping national level policy with regard to forest governance,
regulation and enterprise development.

7. Progress against milestones and indicators

Despite some delay, mostly related to the pace of the early stage of the larger project (conceptual
clarification, design of instruments, etc) across the three regions, a short project extension allowed the team
to complete the full set of deliverables within the new time frame.

8. Changes to original activity time schedule

All changes to the original project goals and timeline were presented and accepted.

9. Next steps
Covered above

10. Replication potential

High. Time invested and lessons learned from conceptual and instrument development could be applied to
new sites. Learning will be more systematically extracted from a broader set of sites to see broader trends
that could better inform tenure reforms, forest resource management models and policy instruments.

11. Budget
PROFOR Funding $ 118,604
Other sources $ 115,000
Total $ 233,604
PROFOR Funds used to date $ 118,604
Total Funds used to date $ 233,604

48
Institutional Choice and Recognition in Forestry: Effects on Formation and Consolidation of
Local Democracy
Start date: September 2006
Status: CLOSED
Proponent: World Resources Institute (WRI)

1. Geographical focus: Global

Benin, Botswana, Brazil, China, India, Nicaragua, Malawi, Mali, Mozambique, Russia, Senegal, South
Africa, Zambia.

2. Objective: To identify means to support emerging local democratic institutions as a sustainable form of
community inclusion in forestry.

3. Activity and output: progress to date

PROFOR funding first supported the Bali Workshop (June – July 2006) where 17 commissioned cases were
presented and lessons were drawn out. The workshop was followed by peer and project-leader comments
and rewriting (October 06 – July 2007). Thirteen of the articles revised and resubmitted in October passed
internal and external peer review by January. They were then edited by the project leader (Ribot) in
collaboration with authors. At an August Synthesis Workshop, the editorial team—Ribot, Chhatre and
Lankina—convened to finalize case articles and draft a synthesis article. Eight of the thirteen articles plus a
new case from Indonesia were selected for a journal special issue and copy edited. This October WRI
published 10 Institutional Choice Working Papers. The synthesis and nine articles will appear in the May
2008 special issue of Conservation and Society. A policy brief summarizing key findings and lessons
learned (Annex A). The brief is an important outreach tool for this work. A policy dialogue was held on 28
April 2008 to discuss and disseminate these findings to practitioners, policy-makers and researchers in the
Washington DC area (Annex B).

4. Final findings:
Choose democracy: Choose to place public decisions with decision makers who are accountable and
responsive to the local citizens. Where democratic local government does not exist, work to establish and
enable local democracy.
Build the public domain: Work to create a set of public powers directly or indirectly under the jurisdiction of
elected local authorities. These powers make elected authorities worth engaging by enabling them to be
responsive to local needs and aspirations. They constitute what we call ‘the public domain’, e.g. the space of
public interaction that constitutes the space of democracy.
Build citizenship: Support the right and provide the means for local people to influence the authorities that
govern them—channels of communication and recourse. Inform citizens of the powers and obligations their
representatives have and of the means available to citizens for holding their leaders accountable.
Promote equity: Systematically partner with local organizations representing all classes—with an emphasis
on organizations of the poor. Level the playing field through policies that affirmatively favor the poor, women
and marginalized groups.
Enable local representatives to exercise their rights as public decision makers: Create safe means for
representative local authorities to sanction and demand resources from and take recourse against line
ministries and other intervening agencies so they are able to exercise their role as local representatives.
Help local governments to engage in collective bargaining for laws that favor the populations they govern:
Enable local governments to bargain collectively with central government to ensure they are granted the
rights they need to manage their forest and to insure that the rights they have been granted in law are
transferred to them in practice. Facilitate representation of rural needs and aspirations in national
legislatures.

49
5. Impacts
Influencing Donor Views: DFID’s Governance and Social Resource Development Center summarized IC findings
from Ribot 2007 (Annex C) and drew out recommendations on their web page
(http://www.gsdrc.org/go/display&type=Document&id=2733).

Influencing Donor Investment: USAID’s Transformative Linkages initiative, ‘Translinks’, IQC called for IC
research and improvement of IC in practice.

Informing Donors, Practitioners and Researchers: Invited presentations of findings were made to: USAID
Biodiversity Team; NORAD Governance Team, Bonn International Center for Conversion (co-sponsored by
GTZ); Max Planck Institute for Social Anthropology; University of Tokyo; The World Bank Sustainable
Development Network Week & Learning Week; Universities of Illinois, Michigan, and Florida; Center for
International Forestry Research Workshop on Forest Governance and Decentralization in Africa (keynote), and
Woodrow Wilson International Center for Scholars. Findings of the IC work will be presented at International
Association for the Study of Commons biennial meeting.

Influencing Language (and hopefully practice) at WB. The IC concept is now being used at the World Bank by
CDD task team leaders. This is the IC project leader’s observation since the IC Sustainable Development
Network talk (above).

Direct Use of Findings: IC project leader is using findings in advising The World Bank’s “Africa Local Council
Oversight and Social Accountability” (ALCOSA) project in Uganda, Tanzania, Ethiopia, and Kenya (Director:
Serdar Yilmaz). UNDP Poverty-Environment Initiative cited Jesse Ribot’s decentralization work as key literature
in this field. IUCN used Ribot’s decentralization work to shape its program on law, policy and governance in West
and Central Africa.

6. Opportunities and/or obstacles/issues related to implementation

The results are sufficiently robust to develop guidelines for forestry interventions to assure they support local
democracy (see ‘next steps’).

7. Progress against milestones and indicators

Original Milestones Indicators of Progress

1. Knowledge -Identified promising arrangements for increasing local representation in forestry
production decision making, and -Generated knowledge about effects of different institutional mixes
on representation. (Witnessed in documents.)
2. Policy Presented in publications, DFID web page and policy brief (Annex A).
recommendations
3. Diffusion -23 IC publications
-13 talks (Annex C).
4. Change on the -advising WB ALCOSA project (see above).
ground
5. Capacity building -17 young policy researchers trained in IC analysis.
-10 developed advanced skills in writing for publication.

8. Changes to original activity time schedule

The project was extended through March 08 due to intensive supervisory and editing work with young policy
researchers.

9. Next steps
Citizenship and Public Domain as Critical Elements of Local Democracy. To support forestry interventions as a
local democracy lever the project should deepen its study of 1) the formation of citizenship through decentralized
forestry and 2) the role of forestry in the creation of an active public domain.

Films in Local Language as a Teaching Tool. One film has been created on forestry decentralization using local
actors, and another will be created this year. These will be screened in rural areas as a teaching tool, and to
policy-makers and elected officials. These could be used as a model for other areas.

50
International Association for the Study of Commons Presentation. A series of panels on authority and
representation, and roundtable on property and authority in NRM.

Diffusion. Further diffusion of findings and recommendations via publications and talks around the world.

10. Replication potential

The project findings apply to decentralization reforms—writ large—across natural resource types and sectors.
The publications, presentations, films and other media will ensure that results are disseminated to a broad
audience.

11. Budget
PROFOR Funding $ 134,000
Other sources $ 188,855
Total $ 322,855
PROFOR Funds used to date $ 134,000
Total Funds used to date $ 322,855

51
Reforms for China’s Collective Forests: Analytical Support on Tenure, Rural Institutions, Forest
Policy and Regulation
UPDATE NOT AVAILABLE
THIS REPORTING IS FROM 2007

Start date: September 2006

Status: ACTIVE
Proponent: World Bank

Objective
Understanding, defining and assessing tenure types and management models in collective forest areas;
describing and assessing forest business models; reviewing farmers’ institutional and self-organized associations

Activity and output: progress to date

1) Tenure study: field surveys have been carried out in 9 provinces and completed. More than 300 villages and
3000 households were surveyed. Field reports for each surveyed provinces were in the process of drafting (two
reports are complete). An overview report of national tenure reform using surveyed information is almost
complete. The goal is to have the first set of reports (one overview and 9 provincial field reports) drafted by end
of January.
2) Forest business model: field survey in one province is finished and in the second designatied province is
under preparation. The plan is to finish survey by end of December and draft report by January;
3) Farmer association: field survey is finished and report being under drafting.
4) Workshop on tenure and regulatory reform: the date was tentatively set on February 28-29 and needs to be
confirmed by SFA.

Findings
Forest tenure: tenure types change during the reform for all 9 surveyed provinces were documented and have
been reported to SFA. Results with regard to pattern change, determining factors and preliminary outcomes of
tenure changes were also produced and reported in different forms to SFA.

More details regarding findings are available in a draft report entitled Collective Forest Tenure Reform in China:
General Report Based on Village Level Survey. [For PROFOR Donors’ information, this report is available upon
request]

Impacts
1) Team leaders have reported to SFA policy and legislation department several times with regard to findings
and recommendations for the upcoming tenure reform resolution. Jintao Xu has been invited as exterior
reviewer of the State Council Resolution on Collective Forest Tenure Reform. Xiaojie Weng of Fujian Society of
Forest Economics participated in drafting and revision of the resolution.
2) Researchers have been invited to several government held workshops to report findings of tenure reform
surveys.

Opportunities and/or obstacles/issues related to implementation of activity

Interests of central and local government on the tenure reform issues have been high and information from the
surveys have been highly demanded by various government agencies.

Progress against milestones and indicators

It was expected that thematic reports and synthesis reports were complete by end of December. Currently draft
thematic reports should be able to be done by this date and synthesis report done by end of January.

Changes to original activity time schedule

Another major milestone was the workshop, initially scheduled in October. Currently it is postponed to early
2008 (end of February) due to political reason (time conflict with CPC 17th national congress).

Next steps
1) Tenure study: Complete thematic report (provincial survey report and overview report.
2) Forest business model: complete survey in the second province and draft report by end of December;
3) Farmer association: complete report by end of December.

52
4) Workshop: to be held in early 2008.

Replication potential
None

Budget
PROFOR Funding $250000
Other sources $ 0
Total $ 250,000
PROFOR Funds used to date $107,060
Total Funds used to date $ 107,060

53
Enhanced Financing Alternatives for SFM

The Next Generation of Certification of Ecosystem Markets

Start date: June 2007
Status: CLOSED
Proponent: Forest Trends

1. Geographical focus
Global, but with a primary focus on Latin America.

2. Objective
To implement the planning phase of an initiative to promote combined certification of Payments for Ecosystem
Services (PES) - for carbon, water and biodiversity – with certified forestry operations, focusing on emerging
voluntary markets. The original objective has been modified to focus primarily on PES that are carbon-led with
additional benefits (notably water and biodiversity conservation but also positive community impacts), given that
greater market demand currently exists for such products, versus for PES for water and biodiversity.
Additionally, certified agro-forestry operations have also been included.

3. Activity and output: progress to date

Forest Trends held an initial planning workshop involving over 40 international experts involved with PES and
forest and agro-forestry certification, and subsequently formed a steering committee from the participants to
provide advice on the implementation of the subsequent activities.

Forest Trends completed and submitted the analytical review of existing initiatives to combine forestry and
agroforestry certifications with PES for carbon, water and biodiversity. Forest Trend’s has also completed
interviews with leading PES market actors and has submitted the associated report to PROFOR, as part of the
final report, which also provides an update regarding leading candidate sites identified by Forest Trends and its
partner organizations in Latin America for the development of PES.

Support for the development of PES in these sites is being supported by funding from GTZ for technical and
marketing assistance to the selected initiatives. Forest Trends is currently seeking additional funding for the
already selected and additional pilot sites from other donors.

In a related vein, Forest Trends obtained funding to support the development of draft methodologies for
Agriculture, Forestry and Other Land Uses (AFOLU) under the Voluntary Carbon Standard (VCS). These
methodologies encompass: Sustainable Forestry Management, Afforestation/Reforestation/Revegetation,
Agricultural Land Management, and Avoided Deforestation. Forest Trends anticipates that these methodologies
will be validated in a number of the identified combined certification pilot sites.

4. Findings (either preliminary or final)

The principal final findings are:
1) there is growing demand for forest-based and other land use carbon credits, and that the development of new
methodologies, such as: the recently developed VCS/AFOLU; the VER+, developed by TUV-SUD; Plan
Vivo/Earth Carbon, developed/being developed by the Edinburgh Centre for Carbon Management; and the
Climate Community and Biodiversity Alliance design standards, are all helping to drive this demand;

2) In addition, new market products for ‘conservation carbon’, de-linked from the current focus on ‘additionality’,
are also likely to emerge in the near future, further increasing demand;

3) Similarly, the increased attention to Reduced Emissions for Deforestation and Degradation (REDD) and
Avoided Deforestation is fueling interest in LULUCF/AFOLU carbon credits, particularly those that have
additional positive attributes, and this demand can be expected to grow in the future. Several national REDD
strategies are being supported by the newly-created Forest Carbon Partnership Fund (FCPF), and large-scale
REDD and avoided deforestation credits are already being certified in the voluntary markets by CCBA and
others. Forest Trends is assisting the government of Liberia to implement its national REDD strategy, which has
been approved for funding by the FCPF, and is also exploring the potential to assist the development of
REDD/AD PES in the voluntary markets.

54
4) However, there is also concern on the part of several market actors that the proliferation of standards and
potential new products could complicate the process of communicating with and convincing new buyers to enter
into these markets, and undermine future growth.

5) There is increasing need for practical guidance and assistance to be provided to forest and agro-forest
owners/managers regarding how to analyze the potential of their forest/agro-forest holdings to determine their
suitability for tapping into PES markets, and also for similar recommendations regarding alternative management
practices that would qualify for PES ‘additionality’ and address ‘permanence’ issues (together the associated
estimated costs and PES benefits), in order to inform the owners/managers’ decision-making and to help spur
the growth of forest-/agro-forest-based PES.

5. Impacts
Forest Trends has interacted with staff of the World Bank’s Biocarbon Fund, the FCPF, and with representatives
of the IFC regarding the potential for linking the activity with their ongoing operations.

In addition, the ongoing collaboration with GTZ and exploratory discussions with several donors, notably the
Dutch Government, regarding the potential for supporting the expansion of the pilot activities offer good potential
for increasing the scale of the proposed implementation activities.

Moreover, Forest Trends plans to support a number of combined forest and PES certification initiatives under the
auspices of the recently-approved large-scale grant from the GEF to promote the development of PES linked to
the conservation of significant biodiversity.

Forest Trends is awaiting the approval/acceptance of the final report submitted to PROFOR before disseminating
the results with relevant audiences, notably via Forest Trends’ Ecosystem Marketplace and the Katoomba
Group’s meetings and website.

6. Opportunities and/or obstacles/issues related to implementation of activity

There is now a significant opportunity to validate the recently-developed methodological guidance and standards
for forest- and agro-forest based carbon under the VCS, VER+ system, Plan Vivo/Earth Carbon, and the CCBA,
in addition to under the Clean Development Mechanism, linked to sustainable forest/agro-forest certification.
The main challenge experienced was scheduling interviews with a number of the market actors to obtain their
views and recommendations; this delayed the submission of the final report due under the contract (which
nd rd
combined the synthesis of the interviews and recommendations regarding next steps i.e. the 2 and 3
deliverables under the contract).

7. Progress against milestones and indicators

The original milestones and status of the indicators are as follows:
1. Signing of the contract; completed - $12,500 released.
2. Submission and acceptance of the Analytical Review; completed - $50,000 released
3. Submission of a report synthesizing the views and recommendations of leading PES and certification experts;
submitted in August, 2008.
4. Submission of the final report, combined with the report on the interviews with PES and certification
experts; submitted in August, 2008.

8. Changes to original activity time schedule

The submission of the report synthesizing the views and recommendations of leading PES and certification and
the final report was delayed. Both reports were submitted in a combined form, in August, 2008.

9. Next steps
Upon official acceptance/approval of the final report by PROFOR, Forest Trends will disseminate the reports,
and summaries of the major findings, developed under this contract with relevant audiences, notably via Forest
Trends’ Ecosystem Marketplace and the Katoomba Groups’ international and regional meetings, and the
Katoomba Group’s webpage.

In addition, Forest Trends and the Katoomba group will utilize the findings of the reports, and the professional
relationships established with various PES actors during the course of conducting the work, to inform and assist
the development of new PES, including those that combine existing certification of natural resources with the
certification of forest-carbon and other PES.

In addition, the Tropical America Katoomba Group will provide increased resources for assistance to develop
PES with the region, including a significant focus on support for existing certified community forest/agro-forest

55
owners (or for those in the process of obtaining such certification) to obtain combined PES certification. Forest
Trends also anticipates that under its recently-approved large-scale GEF grant several combined certification
initiatives will be supported in other regions.

10. Replication potential

As noted earlier, there is good potential for replication via the evolving work of the Katoomba Group to focus
increasingly on providing technical assistance to community-based PES activities, and also via the funding
provided by GTZ, GEF and other donors.

11. Budget
PROFOR Funding $ 125,000
Other sources $ 463,000
GTZ $168,000
FSC $75,000
GEF $70,000
SYNGENTA $50,000
DFID VCS $100,000
PROFOR Funds used to date $ 125,000
Total Funds used to date $ 588,000

56
Designing A Framework for Carbon Payments for Afforestation/Reforestation in Small Scale
Forest Plantations in Mozambique: A Contribution Towards A Forestry Climate Strategy For
Southern Africa
Start date: June 2008
Status: ACTIVE
Proponent: Indufor

1. Geographical focus
Mozambique, Zambézia Province and Southern Africa.

2. Objective
A) to formulate a Carbon Payment Project in Zambézia Province, Mozambique. This will involve
formulating a programmatic forestry sink project in Zambézia Province, Mozambique, which will
benefit poor smallholder farmers and be managed locally in line with the national decentralization
policy. It will focus on afforestation/reforestation. Specific objectives include:

• Guidance for shaping an organization to manage all aspects of a programmatic forestry sink
project, from technical assistance to paying farmers
• Designing a payment scheme, which will keep to a minimum the costs involved in contracting,
monitoring carbon, transferring payments to individual farmers and enforcing contracts. The
consultants will draw from the experience of existing payment for ecosystem services (PES)
schemes, including the voluntary carbon market but take account of the local context.

B) to contribute to a Southern Africa climate strategy through a joint Indufor-IIED publication. This part
of the objective is connected with: the IIED proposal to PROFOR entitled “Preparing for REDD in dry-land
forests: Investigating the options and potential synergy for REDD payments in the Miombo Eco-region, Southern
Africa”. The publication will summarize the outcomes and lessons of both projects to contribute to a
forestry climate strategy for southern Africa. The publication will elaborate synergies between
adaptation and mitigation in the forest sector to build a coherent climate approach for the region.

3. Activity and output: progress to date

A. Carbon Payment Project in Zambézia Province, Mozambique

1. Prioritization of project areas: The consultants will identify and prioritize the areas suitable for a
carbon sink project in Zambézia;

2. Scoping of key design issues: The consultant will review the experience of PES schemes; examine
the measures employed by these schemes to reduce transaction costs, and capacity building of
community institutions to take on tasks such as monitoring and record-keeping, as well as more
general measures to build trust and increase community buy-in. This will form the basis of a
preliminary set of design issues to discuss with local communities and with national level
stakeholders. At this stage the consultants will also identify and contact key investors who would be
willing to invest on the implementation of the project;

3. Conduct consultation: The consultant will carry out the consultations listed below. As an important
element of this work is ensuring that local communities are engaged in the process and design of this
activity, they should be consulted early in the process, not only after national level consultations.
While the initial consultations need to occur in a focused manner (i.e., national and local consultations
kept distinct), the consultant will ensure that the voice and interest of the community in these activities
are clearly articulated and reflected in the discussions had at the national level. More specifically the
different levels of consultations will entail:

a. at National level:
The consultants will organize meetings in Maputo with different national level stakeholders, such as
government officials in the Ministry of Agriculture and the country’s Designated National Authority

57
(DNA), and other potential actors such as financial institutions operating in rural areas. The
discussions will focus on:
• the prioritization of areas
• the level of commitment to engage in this venture
• feedback on key design issues

b. with local communities and other stakeholders

The consultant will carry out field visits to Zambézia for consultations with communities in the
prioritized areas. The discussions will focus on:
• explanation of basic climate change elements and the project goals
• community attitudes to forestry and how it fits into their livelihood strategies
• community interest to participate and main perceived constraints such as capacity gaps
• feedback on design options for the managing organization and the payment scheme

The consultant will hold meetings with other local stakeholders such as local government and
institutes and community-based organizations working in the province, to get feedback on design
options and to explore the possibility of their involvement in the management of the programmatic
project.

4. Draft a programmatic project

The consultants will draft a programmatic project looking at issues such as:
 baseline, additionality, leakage, non-permanence, and appropriate methodology;
 the proposed format for the managing organization, including the skills required for its
employees, and most appropriate capacity building programs to address gaps in local
expertise; and
 design of the payment scheme. This will draw heavily on the local and national level
consultations to produce a design that is suited to the local context.

5. Consultation on the draft programmatic project

The consultant will discuss the draft programmatic project (including the proposals for managing
organization and payment scheme) with national stakeholders and local communities by conducting
national and local workshops respectively.

6. Finalization of programmatic project report

Feedback from national level, local-level stakeholders, and donor community (specifically World
Bank/PROFOR) will be addressed and incorporated in a final report and programmatic project design,
which will be then introduced to potential investors.

B. Climate strategy report

The consultant will produce a publication in conjunction with the aforementioned IIED project that
summarizes the outcomes of the outcomes and lessons of both projects to contribute to a forestry
climate strategy for Southern Africa (with specifics for each country). In order to do this the consultant
will:
 work with colleagues from IIED involved in the aforementioned PROFOR project to write the
climate strategy report;
 closely follow the implementation of the IIED project and travel to an IIED workshop to follow
the implementation of the IIED activity and help in the writing process of the climate strategy
report;
 travel to the UK to meet with IIED and finalize the publication; and
 coordinate publication and distribution of the document (200 of the 600 printed copies will be
made available to PROFOR).

Submission of final reports associated with A and B above

The consultant will follow the specifications on how the final publications will be provided (see section
on deliverables)

58
4. Findings (either preliminary or final)
The project is still being implemented, but below are some preliminary findings:
 There is potential to develop an avoided deforestation and Afforestation/reforestation program (REDD-A/R
Program) in Zambézia with local communities with the purpose of generating carbon credits to be sold on
international voluntary markets;
 The study performed an initial screening and field analysis and identified that 4,800 ha (four thousand eight
hundred hectares) has the potential to host both reforestation and avoided deforestation activities under a
REDD-A/R Program in specific areas of Ile and Mocuba districts. However, in order to make the program
operational, there are several barriers that need to be overcome.
 In order to address these challenges and set up a Zambézia community carbon forestry program, the study
proposes that a partnership is build by different players, which will be responsible for setting up the scheme
and design it in a manner that some years down the line, the program is able to sustain itself and no longer
depend on external aid.

This partnership should be composed of:

1. Local program/organization, which is aware of the local reality and can contribute to solving issues on the
ground;
2. Technical entity, which knowledge on tree species and their carbon content;
3. Climate change organization, with knowledge on international climate criteria, carbon markets, buyers and
verification schemes.

5. Impacts
It is still very early to assess impacts.

6. Progress against milestones and indicators

A. Carbon Payment Project
1) Prioritization of project areas and scoping of key design issues:
The consultants have begun to identify and prioritize the areas suitable for a carbon sink project in Zambézia. In
turn, they have started their review of the experience of PES schemes, providing the basis for a preliminary set
of design issues to discuss with local communities and with national level stakeholders. Finally, the consultants
have also begun to identify sources of finance necessary to implement the project and the necessary investors,
both in the public and the private sector.

2) National-level consultation carried out.

The consultants carried out a national level consultation regarding the project. The list of stakeholders contacted
include: National Director of Forestry, the Planning and Development Ministry, the Foreign Business Ministry of
Finland, Provincial Directors, the PRODEZA technical team, the Designated National Authority (DNA) of
Mozambique—MICOA, and a number of NGOs, including IUCN, WWF, Centro Terra Viva, Cruzeiro do Sul, and
Forum Natureza em Perigo.

3) Consultation with local communities and other stakeholders carried out

The consultants also carried out a workshop in Zambézia which included local and regional government
representatives, communities’ members (which were later on visited on their land); local NGOs, a PRODEZA
team, and other local organizations.

4) Draft a programmatic project

The consultants are currently drafting the project/program based on the the activities carried so far.

5) Consultation on the Draft Programmatic Project

To be performed in February, 2009

6.) Finalization of report

Report due March 2009.

B. Climate Strategy Publication

1. Draft Document
2. Final Publication
Publication Report due 11 weeks from the termination of Indufor and IIED project (June 2009)

59
 The consultants have begun discussing a potential table of contents to the publication, but do not have anything
concrete at this point.

Deliverables:
Date Title
1 September, 2008 Preliminary report with findings linked to prioritization of project
areas and scoping of key design issues
31 January, 2009 Draft a programmatic project report
31 March, 2009 Final programmatic project report
27 April, 2009 Draft climate strategy document
15 June, 2009 Final climate strategy document

7. Opportunities and/or obstacles/issues related to implementation of activity

One of the barriers the consultants faced while implementing this project is related to the difficulty of working with
Mozambique government. It was extremely challenging to contact some governmental representatives to discuss
the project and convince them to attend the workshop. Another barrier was linked to the budget, as prices in
Mozambique fluctuate very much (e.g. air tickets).

8. Changes to original activity time schedule

Weeks
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 29 Weeks
A) Carbon Payment Project
Scoping phase
(intended) 3
(actual)
National Consultation
(intended) 4
(actual)
Local consultation
(intended) 4
(actual)
Program Project Draft
(intended) 7
(actual)
Draft Report
(intended) 10
(actual)
Final Report
(intended) 1
(actual)
B.) Climate Strategy Publication
Draft Document
(intended) 5
(actual)
Final Publication
(intended) 6
(actual)

9. Next steps
The project is yet to be completed. The consultants are currently drafting the programmatic project,
which will be delivered late January and discussing the best approach to write the publication.

10. Replication potential

Community forest carbon projects are very difficult to be set up, due to the innumerous challenges they
face on the implementation phase such as lack of local knowledge and capacity, land tenure issues and
competition of land uses with food security. This projects aims at describing a working project to be set up in
Zambézia which will leave room to be extended into the various parts of the Province and maybe to other
neighbor provinces in the future. In additional, the lessons learned can be used to set up similar ventures in
neighbor countries, which share the same reality.

60
11. Budget
Table 1: Funding Overview
PROFOR Funding $ 150,000
Other sources: IIED in kind $ 15,000
Other sources: MFA Finland $ 80,425
TOTAL $245,425
PROFOR Funds used to date $ 16,675
Total Funds used to date $ 97,100

61
Preparing for REDD in dryland forests: Investigating the options and potential synergy for
REDD payments in the Miombo Eco-region
Start date: June 2008
Status: ACTIVE
Proponent: International Institute for Environment and Development (IIED) and
Indufor

1. Geographical focus
Miombo Ecoregion: Mozambique, Namibia, Zambia

2. Objective
To improve understanding, among decision-makers in government, community-based organisations and the
private sector, of the opportunities and challenges for pro-poor payments for avoided deforestation and
degradation within national and regional contexts of the Miombo Ecoregion. It aims to inform and facilitate
stakeholders’ awareness of the application of REDD payments in the national and regional context and the
options for maximising pro-poor returns in these payments, drawing strongly on existing successes and lessons
from the conservation sector. This increased awareness will build decision-makers’ capacity to build workable
REDD mechanisms that maximise pro-poor returns, and to more effectively articulate their countries’ position on
REDD at continental and international scales.

3. Activity and output: progress to date

A draft background paper on the potential for pro-poor REDD in the Miombo ecoregion has been written and
presented at the project inception workshop. The paper provides a summary of the main elements of REDD and
the key issues and challenges for REDD. It puts these issues in the context of the Miombo ecoregion by
highlighting the key drivers of land use change in this region that are pertinent to REDD as well as the main
challenges for managing Miombo woodlands. It discusses the main models of community based natural
resources management in the region that form a strong basis and lessons for pro-poor REDD in the miombo.
An inception workshop was held in November to share the vision of the project with players in the region as well
as getting feedback on the background paper. The workshop drew participants from Zambia, Namibia, Tanzania,
Malawi and Mozambique. It also involved regional players Resource Africa, WWF Miombo Ecoregion
Conservation Programme and the Centre for International Forestry Research (CIFOR). In fact, the partnership
with CIFOR enabled the involvement of participants from Malawi and Tanzania in addition to the three countries
that this project covers. The first part of the workshop was a general discussion on REDD issues from the
perspectives of the regional players, informed by country representatives. The second part of the workshop
focused on planning country studies. After the meeting, concrete activities and time lines for country studies were
agreed on.

The inception workshop also served to synergise this project with CIFOR’s work in the region. Specifically, this
work will complement CIFOR’s technical work on REDD in the Miombo, while CIFOR’s country studies in Malawi
and Namibia broadens the regional perspective of REDD. CIFOR’s engagement with the Common Market for
East and Southern Africa (COMESA) provides a policy platform for targeting this project.
An outline for a policy brief/communications flyer has been drafted, targeting country stakeholders and other
policy platforms. This is based on the initial information available in the background paper as well as a common
position between IIED and CIFOR under this project.

4. Findings (either preliminary or final)

As country studies are only starting at the time of writing this report, no findings are available apart from the
information in the draft background paper. A key message coming out of this paper, and from the inception
workshop is on the lessons that can be learnt from community-based natural resources management schemes.
The massive investment (time, financial and human resources) that have been put into these schemes points to
the investment that is required for pro-poor REDD. The multiple land uses and the land tenure systems in the
region complicate the value of alternative land uses that REDD either complement or compete with. Not all
community-based natural resources management schemes have been successes, but in cases where there is
potential, they provide REDD with a good platform to address the drivers of land use change while meeting the
economic needs of poor communities. These are just some of the initial issues arising from the preliminary
discussions and literature reviews, and will be addressed in detail as specific country studies progress.

5. Impacts

62
 (2-3 paragraphs describing any outcomes, and progress in mainstreaming or linking the activity with ongoing
World Bank, PROFOR donors, or project activities and/or processes)

6. Progress against milestones and indicators

Milestone 1 – Regional workshop to discuss background paper and prepare national work-plans: This has been
completed.
Milestone 2 – Draft of national studies completed: Still to be completed as national studies are just starting
Milestone 3 – National level workshops held to consider the results of the studies: Still to be done after national
consultations
Milestone 4 – Regional synthesis workshop held: Still to be done after national studies are completed. Planned
for April 2009
Milestone 5 – Final draft of regional synthesis completed: Still to be done

7. Opportunities and/or obstacles/issues related to implementation of activity

The project started in July instead of May 2008 as originally planned. Therefore the implementation of activities is
behind original schedule, but within the time frame of the grant period.
Obstacle: The initial partner for the Zambia country study could not participate in the planning meeting, and was
not also available for the country study. However, a different participant from Zambia was able to participate in
the inception workshop and planning meeting. CIFOR, who are based in Zambia, were able to help identify a
partner to carry out the Zambia country study.

Issue: The planning workshop identified the need to translate reports for Mozambique into Portuguese, and this
was built into the work-plan and budget for the Mozambique country study. The implication on completion of final
documents is not yet known, but serious delays are not expected.

Opportunity: The partnership with CIFOR provided opportunities to strengthen this work and link it to on-going
work in the region rather than a one-off study. CIFOR’s work on REDD in the miombo broadened the country
coverage of this work with two additional countries. Their links with regional bodies such as COMESA, SADC
provide useful entry points into policy making processes and platforms.

8. Changes to original activity time schedule

(Present original activity time schedule, and any changes and justifications for these changes. Please note that
satisfactory implementation status and a concrete justification that describes how obstacles holding up the
process have been/will be overcome is necessary for approval of proposed changes).

Months (in the Form of a Bar Chart)

Activities 1 2 3 4 5 6 7 8 9 10 11 12 Number of Months
Activity 1: Prepare back- Staff already engaged in other pre-planned
ground draft document activities at the time of signing contract, causing
a lag in starting this activity
(intended) 2
(actual) 2
Activity 2: Hold regional A date suitable for all participants, especially
planning workshop countries covered under the partnership with
CIFOR
(intended) 1
(actual)
Activity 3: National studies A result of the delayed planning workshop and
identified identifying a new partner for Zambian study
(intended) 1
(actual)
Activity 4: National studies Late start due to the delayed planning workshop
undertaken
(intended) 3
(actual)
Activity 5: National Variance in date of implementation to ensure all
summary workshop national studies are ready at time of workshop
facilitated
(intended) 1
(actual)
Activity 6: Regional No variance expected
synthesis workshop held

63
 (intended) 1
(actual)
Activity 7: Final document No variance expected
completed and distributed
(intended) 2
(actual)

9. Next steps
The current activities are country literature reviews and stakeholder consultations, which will be followed by
stakeholder workshops in all countries. A follow-up on Zambia is required as the country partner/consultant
started work later than the others. CIFOR, who are based in Zambia, will provide the link to monitor progress.

10. Replication potential

It is not possible at this stage of the project to assess the replicability of project activities in other countries.
However, the incorporation of Malawi and Tanzania indicate potential for replicating similar studies. The future
focus of similar studies to be assessed after the synthesis workshop.

11. Budget
Table 1: Funding Overview
PROFOR Funding $ 148,270
Other sources: CIFOR $ 50,000
TOTAL $ 148,270
PROFOR Funds used to date $ 29,965
Total Funds used to date $ 29,965

64
Analysis of the NLBI on Financial Needs and Available Resources

Start date: June 2008

Status: CLOSED
Proponent: World Bank

1. Geographical focus
Global

2. Objective
The project is intended to provide systematic and objective analysis of the funding sources and gaps vis-à-vis the
NLBI in order to assist effective preparations of the documents for and deliberations at the planned AHEG on
finance. This would present an overview of the specific elements of the NLBI, including GOFs, national measures
and international cooperation and corresponding (related) existing sources, and lessons learned. The goal was
to provide substantive inputs in the preparation of official documents for the AHEG, and preliminary preparations
for the UNFF8.

3. Activity and output: progress to date

Under the overall guidance of the AGF and the direct supervision of Secretariat officers, the consultant provided
intellectual leadership, overall content management and cohesion to the project in order to ensure that its
objectives were met and the outputs delivered in excellent quality and on time. This included providing policy
advice to the AGF and the Director/Officer-in-Charge of the UNFF Secretariat on investment flows and finance
schemes; developing a methodology for the mapping exercise and reviewing relevant background material;
presenting an inception plan; conducting analysis of the availability and scope of current funding sources;
reviewing new developments in the climate change regime relating to forest finance and accessing sources and
mechanisms for implementing the NLBI; identifying sources of funding for the various countries according to
multiple criteria, as well as identifying funding gaps; producing draft reports with recommendations; preparing
preliminary findings for the country-led initiative, and preparing a final report to the AGF and UNFF Secretariat,
with a view to recommending further steps to be considered by the AHEG and UNFF8.

The study also reviewed the thematic (planted forests, capacity building, processing, natural forest management,
protected areas, etc.) and regional focus (Africa, Low Forest Cover Countries, etc.) of the flow of
funding/investment from the above sources, as well as presented a short description of the governance
structures of multilateral funding sources/mechanisms (e.g., GEF, WB, etc.)

These findings have been compiled in a comprehensive analytical report on existing funding sources, their
relation to the provisions of the NLBI, requirements and gaps, current trends and preliminary projections for the
future regarding forest-related finance.

4. Findings (either preliminary or final)

There is a need for substantial new and additional funding from all sources to support SFM and make the NLBI
implementation effective on the ground. Although many new promising mechanisms and sources are emerging,
so far there is no serious deliberation to define and develop a SFM-specific funding mechanism or instrument.

Although ODA for forests appears to have a modestly increasing trend in the past few years, the gap between
the needs and funding is still very wide. ODA to forests has increased only in the case of a few bilateral donors
and some multilateral financing institutions. The sustainability of increased ODA is therefore not assured. To
make progress to achieve GOF4 in mobilising more resources, concerted efforts are needed from both donor
and recipient countries. ODA should play a substantially stronger role in future forest financing. Increased
contributions, including to sectoral aid programmes and policy development lending, would be needed in future
forest financing to ensure that the financing gap is not expanding further. Because of other pressing priorities in
national development, the forest sector in many developing countries will continue to face challenges in
mobilising new public funding for forests. Without explicit linkage with forests in poverty reduction strategies and
broader national development plans, there is unlikely to be an increase in explicit demand for, and thereby
supply of, ODA to forests. Contribution of forests to poverty reduction and dependency of the poor on forests
need further clarification to justify allocation of ODA to forests (including budgetary support).

65
 5. Impacts
The study was requested by the Collaborative Partnership on Forests (CPF) and will serve as important input
into UNFF-8 (April, 2009) which will consider means of implementation for sustainable management as a key
issue for the effective implementation of the NLBI. The findings were already presented during the UNFF Ad Hoc
Expert Group (AHEG) in November, 2008 and were well received.

The needs and gaps identified lin the analysis (types of forest investment, sources of investment, and
geographic gaps) have helped to structure the debate during the design of the Forest Investment Program
within the Climate Investment Funds, and identify gaps that the FIP could fill.

6. Progress against milestones and indicators

The project was completed on schedule. The final report was submitted by the consultant in October 2008.

7. Opportunities and/or obstacles/issues related to implementation of activity

None

8. Changes to original activity time schedule

Months
Activities 1 2 3 4 5 6 Number of Months
Finalizing of TOR for mapping exercise (intended) 1
(actual)
Contracting Consultant (intended)
(actual)
Inception Report (intended)
(actual)
Comments on Inception Report (intended)
(actual)
Submission of Draft Report (intended)
(actual)
Comments on Draft Report (intended)
(actual)
Submission of Draft Final Report (intended)
(actual)
Presentation of Preliminary Findings (intended)
(actual)
Feedback from CLI (intended)
(actual)
Submission of Final Report (intended)
(actual)

9. Next steps
There are no next steps associated with this activity, as it was meant to influence a specific process, but
demand for the associated publication continues and therefore will continue to be shared.

10. Replication potential

Not applicable

11. Budget

Table 1: Funding Overview

PROFOR Funding $88,624.80
Other sources (list) $
TOTAL $88,624.80
PROFOR Funds used to date $88,624.80
Total Funds used to date $88,624.80

66
Analysis of Forest Land Use Options for Reducing Carbon Emissions from Deforestation and
Degradation in Indonesia
Start date: August 2007
Status: CLOSED but administratively active in 2008
Proponent: World Bank

1. Geographical focus
Indonesia

2. Objective
Degradation (REDD) in Indonesia‘ s major forest land use types and to identify pilot projects for testing the
potential of “avoided deforestation” payments.

The project contributed directly to PROFOR’s goals of fostering innovative financing mechanisms in ways that
will contribute to poverty alleviation.

It also fitted well with the three main thrusts of the World Bank’s 2002 Revised Forest Strategy which are: to
maximize the potential of sustainably managed forest resources to contribute to poverty alleviation, to
sustainable economic growth and to protection of environmental services of both local and global importance.

3. Activity and output: progress to date

This PROFOR project aimed to analyze the reduced level of emissions that could be anticipated through
introduction of improved land use and land conversion strategies in five forest land use categories , namely:
protected areas , production forests , forests being managed to provide raw material for the pulp and paper
industry , for the oil palm industry and in peat lands.

The Project made a significant contribution to financing a series of multi stakeholder studies that assessed
options for adjusting historical approaches to forest conservation , sustainable forest management and forest
land use. These studies analyzed how adjustment to forest conservation and land use strategies could lead to
quantified and verifiable reduction in carbon emissions. Strong emphasis was given to linking climate change
REDD initiatives to conservation and development strategies that would address poverty alleviation by engaging
local communities as beneficiaries of programs for effective management of protected areas, for sustainable
management of natural forests and for establishment by local communities and small holders of plantations and
agro forestry crops such as oil palm on non forest and degraded lands.

4. Findings (either preliminary or final)

The studies identified a series of “Readiness” capacity building activities for implementation beyond COP 13.
These include strengthening of capacity for measurement and monitoring of forest change and carbon
emissions, further exploration of potential carbon buyers and sellers, strengthened capacity for more effective
forest governance (aimed especially at containment of illegal logging). They also include provision for further
development and testing of REDD payment distribution mechanisms.

They identified criteria and principles for selection of pilot projects for implementation between 2009 and 2012
that will create opportunities to test the effectiveness of those land use strategies that would be most likely to
slow deforestation and degradation .

The nine completed studies cover the following topics:

 Measurements , Standard Setting and Monitoring
 REDD Scenarios and Carbon Markets
 Payment Mechanisms: Distribution and Institutional Arrangements.
 Improving the Management of Protection Forests through Reduced Emissions from Deforestation and
Degradation
 Strategies to Reduce Carbon Emissions from the Pulp , Paper and Plantations Sector
 Strategies to Reduce Carbon Emissions from the Oil Palm Sector
 Production Forest Land Use Strategy
 REDD Implementation on Peatlands.
 Consolidated Executive Summary: Comparative Strategies for Reducing Emissions from Deforestation
and Degradation

67
5. Impacts
The studies have contributed to improved understanding of climate change/ forest land use relationships. They
provided input to the deliberations of a multi stakeholder Indonesia Forest Climate Alliance that includes
representatives of Government ministries, Indonesia’s National Forest Council ( DKN), local communities,
leading conservation agencies, forest and agribusiness-related private companies, and leading policy
researchers.

They have contributed substantive input to ongoing discussions relating to establishment of a World Bank
managed Forest Carbon Partnership Facility. They have also provided useful input to a World Bank initiated and
ongoing independent consultative process that is reviewing possibilities for creation of a Forest Investment
Program that would build on the experience already gained through the Bank’s earlier partnerships with
PROFOR, The World Bank/WWF Alliance and the EU funded Forest Law and Governance Program ( FLEG).

6. Progress against milestones and indicators

Mid August 2007—Technical Workshop of experts and stakeholders involved in development of methodology
met to discuss studies design, finalization of consultants, timetable for implementation, budgetary requirements
and proposed arrangements for coordination of the emerging results.
Mid August 2007 through end October—Study was implemented
Late October 2007—Meeting of study experts stakeholders held to discuss emerging conclusions.
Mid-November 2007—Meeting of stakeholders held to consolidate conclusions and to develop
recommendations for follow up action in a format suitable for presentation to COP 13
December 2007 – Draft of consolidated study was launched through two-day Ministry of Forestry event at COP
13 in Bali
July 2008 – Final consolidated report was delivered to the Ministry of Forestry

7. Opportunities and/or obstacles/issues related to implementation of activity

Past governance in Indonesia was marked by a lack of accountability to local communities and local
governments, and one of today’s challenges for the Indonesian forestry sector is to overcome this legacy. A
decentralization process has significantly increased the role of local governments in decision making, but in the
forestry sector the process has also been characterized by a large amount of uncertainty over roles and lack of
local government preparedness. The Indonesia Forest Climate Alliance and Indonesia’s National Forest Council
( the DKN), have demonstrated Indonesia’s ability to bring together a diverse range of local and national forestry
stakeholders and DKN’s potential to influence national forest land use policy .
To summarize, the project has created a springboard from which to launch a pipeline of follow up readiness and
demonstration project activities that will link REDD strategies to cross-cutting issues such as land-use, poverty
alleviation protection of indigenous peoples; rights and governance.

8. Changes to original activity time schedule

As the project had to deliver its main product in time for the COP 13 meeting, it was necessary to adhere to the
planned time schedule. Despite the ambitious scope, it was possible to do so.
Months
Activities 1 2 3 4 5 6 7 8 9 10 11 12 Number of
Months
Development of TORs assembling Study
Teams
(intended and actual)
Workshops to ensure GOI ownership and
proposed scope of studies
(intended and actual)
Drafting of Studies
(intended and actual)
Workshops to review findings
(intended and actual)
Consolidation of presen-tations for COP
13 and elaboration post COP13
(intended and actual)

9. Next steps
The completed studies were synthesized into presentations that were made by GOI to COP 13. Further
elaboration of the findings from the process of consultation and analysis undertaken prior to COP13 will took
place during the first half of 2008.

68
The Ministry of Forestry then began the process of converting the consolidated report and other inputs into a
Ministerial regulation on Indonesia’s REDD program and a Ministerial decree establishing a REDD Commission.
The Ministry is also discussing the payment distribution mechanism with the Ministry of Finance and the
regulation of the REDD market with the National Climate Change Council. The regulation and decree have yet
to be signed by the Minister as of December 2008.
At the same time, REDD demonstration project preparation has gone ahead through the initiatives of local
governments, NGOs, carbon trading firms, and the private sector. At least 16 REDD demonstration projects are
in various stages of preparation, covering several million hectares of forest throughout Indonesia. Demonstration
activities in Aceh and Central Kalimantan have received financing and there is strong political support for specific
projects in other provinces.
Readiness is also moving forward. The GOI has prepared a proposal for implementation of a Forest Resource
Information System as part of Indonesia’s National Carbon Accounting System. Australia has pledged up to
A$10 million for readiness investments with additional support coming from Japan and GTZ. Indonesia is also
planning to join the Forest Carbon Partnership Facility and will submit an R-Plan during the first quarter of 2009.
Finally, the country will be represented on the working group that is designing the Forest Investment Program.
10. Replication potential
The experience gained by Indonesia in developing recommendations for an REDD program has relevance for
many of the other rain forest countries that are interested in pursuing possibilities for accessing REDD Credits.
The Indonesian experience and consolidated report have been shared with the Forest Carbon Partnership
Facility, ASEAN and other countries outside the region through conferences, meetings and individual
contacts/requests for information. The groundwork prepared by Indonesia has helped to accelerate readiness
preparation in many of these countries.

11. Budget
Table 1: Funding Overview

PROFOR Funding $ 125,000

Other sources (list) $ 200,000
Carbon Fund
WB/WWF Alliance
Government of Indonesia
TOTAL $ 325,000
PROFOR Funds used to date $ 136,236.97
Total Funds used to date $ 209,251.75

DFID and Ausaid provided $1,000,000 for additional TA, consultation and communication activities in
preparation of COP13 and for immediate follow-up

69
Cross-Sectoral Cooperation
Measuring Biodiversity and Forest Conservation Production and Livelihood Outcomes in
Multifunctional Agriculture: Forest Landscape Mosaics
Start date: July 2007
Status: CLOSED
Proponent: Ecoagriculture

1. Geographical focus
Global; with field activities in The Congo, Ghana, Uganda, Kenya, Honduras and Indonesia.

2. Objective
Developing methods for assessing the performance of landscape mosaics that integrate conservation,
production and livelihoods goals

3. Activity and output: progress to date

The project has completed the four activities specified in the Concept Note, May 4th, 2006, as follows:

1. We jointly developed a framework protocol that accommodates different methodological approaches for
measuring and monitoring key landscape attributes that are common to ecoagriculture and forest landscape
conservation and restoration, consisting of Principles for Stakeholder Negotiation and Adaptation of
Landscape Level Outcomes. See Annex 1. From this common framework we explored two complementary
methodological approaches in parallel:

a. IUCN, with WWF and other Forest Landscape Restoration (FLR) partners, focused on mechanisms for
facilitating multi-stakeholder negotiations to help diverse stakeholder groups realize a shared negotiated
vision of a given landscape, and on locally adapted methodologies and indicators to measure progress
and outcomes at the landscape scale.
b. EP, in collaboration with institutions from diverse sectors in its Landscape Measures Initiative (LMI)
International Steering Committee (ISC), has developed an outcome measures toolkit to assist multi-
stakeholder groups define and measure the impacts of ecoagriculture/ forest landscape restoration on
productivity, local livelihoods, institutions, and ecosystem services and biodiversity. The online toolkit is
referred to as the Landscape Measures Resource Center (LMRC) and can be accessed at
www.landscapemeasures.org. The LMRC presents a range of potentially useful indicators and methods
that may be of interest to different stakeholders in mosaic landscapes, and a process for adapting these
and inventing others. It also provides a platform for interaction among users and developers of
stakeholder-based landscape measures approaches and tools. Tools that have been developed
through the FLR-EP collaboration are posted on the LMRC.

IUCN and EP teams collaborated directly in this work in one landscape, on the Uganda side of Mt. Elgon.
After the Mt Elgon meeting members of the two groups continued to interact through email and telephone
exchanges, and at a meeting associated with the Convention on Biological Diversity (CBD) – see Activity 2
below. In this way, findings have been pooled with a view to improving and validating an overall landscape
measures approach that is rooted in stakeholder engagement (Stakeholder-based Landscape Measures
Approach).

2. Workshop to review lessons learned and draft methods: IUCN convened a workshop at the Convention
of Parties (COP) of the CBD, attended by Ecoagriculture Partners and representatives of other international
and national initiatives that are attempting to address integrated land-use planning and conflict resolution
from a landscape perspective. Deliberations are incorporated into the discussion on findings, below. See
Annex 2 for a brief report on the workshop.

3. Field testing and adaptive management: Landscape assessment methods and indicators developed
under the common framework (Stakeholder-based Landscape Measures Approach) have been tested in
seven landscapes: Mt Elgon, Uganda; Kijabe, Kenya; River Mubuku in the Rwenzori region of Uganda;
Southwestern Ghana; The Congo Basin (Central African Republic, SE Cameroon and N. Congo); Malinau,
Indonesia (East Kalimantan); and Esparza, Costa Rica. See Annex 3 for details.

70
4. Integration and dissemination of lessons learned and case study outcomes. Project participants in the
study landscapes assessed their experience in developing outcome measures through landscape-based
workshops, and through Ecoagriculture Leadership courses in E. Africa and Costa Rica. Lessons learned
from the application of specific methodological approaches in all 7 landscapes are presented in Annex 4:
Lessons Learned from Field Testing Landscape Assessment Methods. The cases are presented also in the
LMRC (www.landscapemeasures.org Case Study section), and they are highlighted in a special issue of
ArborVitae that has been drafted (see Annex 5) to summarize the EP-IUCN experience with the
Stakeholder-based Landscape Measures Approach.

4. Findings
There is a divergence between advocates of expert-driven indicator sets and those who favor participatory
processes. We conclude that tracking must draw upon both participatory methods and some use of expert tools
such as remote sensing. Experts have had trouble reaching agreement on indicators and it has been difficult to
reconcile the different sectoral and disciplinary perspectives. Expert driven approaches discourage buy-in from
local stakeholders. Locally constructed indicator sets are less scientifically rigorous, but lead to more meaningful
debates and probably better decisions.

Landscape is an inherently visual construct. It follows that visually-aided approaches to assessing landscape
performance are appealing to stakeholders. It is evident that they engender interest and ‘buy-in’. Visualization
processes and tools that have met with success include stakeholder-scripted video, artist-aided drawings of
scenarios and desired outcomes, repeat photography, ground-based photo-monitoring, and GIS maps. Visually-
aided conceptual tools/models are more useful in conveying complex ideas than written or numeric descriptions.
Structured discussion of scenarios is a key element in stakeholder assessment and negotiation. It is important to
develop and discuss best and worst case scenarios to engage stakeholders in meaningful conversation. There
is some evidence that discussion around scenarios directly affects behavior.

Simulation modeling approaches to generating scenarios work well provided the commitment and skills are
available locally. Training on participatory modeling of landscape processes found enthusiastic support for the
dissemination of the technologies.

Visualization approaches to generating scenarios have been the most successful and have been enthusiastically
adopted by stakeholder groups in several landscapes. These techniques are user friendly and get rapid local
buy-in.

Scoring tools based on 5 to 10 point scales, and using radar diagram output formats, are simple and adaptable
ways to engaging stakeholders in assessing multiple dimensions of landscape performance simultaneously.

GIS can be a relatively efficient, cost-effective means of creating compelling information about land pattern and
what it means about relationships between production, conservation and livelihood conditions. Its use is now
becoming much more widespread and local government authorities in many of the areas where Ecoagriculturel
Partners and IUCN/LLS have been working have GIS capacity. As satellite data sources become increasingly
available at lower costs, most projects are also making use of these technologies and many local government
and resource management agencies now use satellite remote sensed images. In situations where local capacity
in these sectors is limited it will be worthwhile in to invest in training and provision of software. If local institutions
are to continue landscape scale interventions autonomously they will need GIS and remote sensing skills and
materials.

As a complement to, or where local capacity to use GIS and remote sensing is not available, we have found
ground-based spatial analysis methods that include repeat photo-monitoring to be promising. Potentially these
can be integrated with remote GIS data when they are available. But these simple ground-based techniques are
powerful in their own right as ways of getting the buy-in of local stakeholders. Sophisticated techniques tend to
empower the technicians and disempower local people.

Optimal results are obtained by the deployment of an appropriate mix of these techniques according to local
circumstances. In all of the landscapes where EP and IUCN have worked we have used all of the above
techniques.
A great deal of innovation is occurring in stakeholder-oriented approaches to multifunctional landscape
assessment and management, which inevitably will lead to better integration between participatory and expert,
science-based approaches. Concerted effort is needed now, to marry the two approaches.
Skilled facilitation is essential.

71
It is not realistic to expect measurement (or knowledge generation in general) to substantially aid stakeholders in
negotiating landscape level land use agreements in the absence of enforceable regulatory frameworks. The
capacity to enforce agreements and resolve conflicts and the presence of technically competent sectoral
institutions is an essential ingredient in these processes. This capacity is lacking in many LDCs and building it is
essential as a basis of any improved NRM.

6. Opportunities and/or obstacles/issues related to implementation of activity

The process of multistakeholder negotiation and the application of many of the techniques for generating
indicator sets is time-consuming. As they develop locally relevant monitoring systems, multi-stakeholder groups
benefit from regular access to facilitators and people experienced in landscape tracking methods.

Rates of change of indicators at a landscape scale are slow and it is necessary to wait for at least a year to make
repeat measures to determine if the interventions are having any impact on the ground.

Modeling, visualization and spatially-referenced analysis skills need further development.

7. Progress against milestones and indicators

None specified.

8. Changes to original activity time schedule

PROFOR authorized a no-cost extension of the project from November 2007 until June 2008 to allow time for a
useful level of field testing of key methods. An interim (progress) report was submitted in November.

9. Next steps
Publication of Arbor Vitae in September, 2008.
On-going development of the LMRC.
Capacity development activity organized around LMRC at IUCN World Conservation Congress (WCC), October
2008. Half day learning workshops on modeling of landscapes and on visualization tools are planned for the
WCC, as well as a 1.5 hour session on ways to use the LMRC.

Joint activity being planned between EP and Livelihoods & Landscapes IUCN in Meso-America, to field test
elements of the LMRC in shade coffee producing landscapes of Guatemala.

Financial resources provided, capacity development for natural resource professionals in landscapes, worldwide,
based on combination of face to face workshops and facilitated distance learning platform.

10. Replication potential

Preliminary work is being developed at a number of sites where IUCN and WWF are attempting landscape scale
interventions. WWF already is adopting some of these approaches at field locations. The Landscape Measures
Steering Committee is committed to replicating viable methods through their various programs.

11. Budget

PROFOR Funding $ 160,000.00

Other sources: EP $ 299,133.40
IUCN $ 45,555.00
Total $ 504,688.40
PROFOR Funds used to date $ 160,000.00
Total Funds used to date $ 504,688.40

72
Analyzing Paths to Sustainability in Indonesia: Smallholder Livelihoods and Adaptation
Strategies at the Forest Edge

Start date: May 2007

Status: ACTIVE
Proponent: World Bank

1. Geographical focus
East Kalimantan, Indonesia

2. Objective
To conduct analytical and descriptive work for a case study in East Kalimantan that will identify economic agents’
behavioral responses around the use of natural resources, including forests and their products, in response to
potential economic or energy policy changes. This case study contributes to an agent-based model (see fact
sheet, attached) that captures household level behavioral responses. This model is contributing to a larger
framework of multi-scale modeling of macro policy changes under consideration at national level. This work is
helping national and regional economic development planning agencies to understand better how macro-scale
policy reforms can have significant effects (positive and negative) on natural resources and the environment, as
well as on the communities that depend on them. In 2008, we received approval also to contribute similar effort
toward a case study report for Central Java.

3. Activity and output: progress to date

The case study has been developed by consultants based on household surveys and interviews conducted by
field teams managed by the Centre for Social Forestry (CSF) at the Mulawarman University in Samarinda, in
coordination with CSIRO and World Bank. A draft case study report and a draft ABM modeling scenario report
have been prepared. The case study report incorporates information about household adaptation strategies (for
example, in response to fuel price changes) and results from an expert consultation workshop to review interim
findings. Progress is reported regularly to Bappenas and key stakeholder agencies through status reports,
workshops, and working group meetings.

Analyses that contributed to the case study included: an overall profile of East Kalimantan, its resources, people
and position in national development context; analysis of the population and individuals’ resource use patterns
based on a typology of households; and detailed interviews with household representatives to develop
behavioral responses (adaptation approaches) for relevant macro policy changes for each typology. The
household survey and typology were completed based on queries about livelihood strategies (= What do you
do?) and their motivations for choosing these strategies? (=Why do you do what you do?). 3,000 households
were surveyed (chosen to be statistically representative) in six districts: Kota Samarinda, Kota Balikpapan,
Kabupaten Paser, Kabupaten Kutai Kartanegara, Kabupaten Panajam Paser Utara, and Kabupaten Kutai Barat.
Based on cluster analysis, 3 main types of agents were identified, each with several subtypes, for a total of 19
household typologies for the region. Profiles for each household typology were developed based on the
characteristics households have in common within each cluster. Then, typologies and behavioral responses
were enriched through 560 follow up interviews with a subset of households.

All of these results were used to develop behavioral responses functions for households, which contributed to the
agent behavior in the model (which also included geographical, socioeconomic, and biophysical data). The
model was developed in consultation with a team of ‘champions’ in the National Planning Agency, and training
was provided in its use (partially funded by PROFOR). Champions are now working with consultants to fun
policy relevant scenarios as a contribution to the Medium Term Development Plan 2010-2014. Some of the
scenarios and findings are highlighted in the scenario report. The final case study report will synthesize
highlights from the behavioral/survey component of the work and from the modeling/scenario component of the
work.

4. Findings (either preliminary or final)

Based on the workshop response, regional policy makers are now engaged in the modeling process from the
ground up. The classification of typologies and sets of behavioral response strategies for each household
typology for each macro policy change can already directly help policy makers to understand potential responses
to macro level policies.

Policy makers anticipate that the agent-based model will benefit local governments (specifically the provincial
level economic development planning agency (Bappeda)) by providing an analytical tool for understanding the
consequences of macro-policy decisions on dynamics within a region. The model is spatially explicit, enabling

73
users to analyze economic, social and environmental dynamics between and within districts. The model
provides a tool for regional planning in the context of macro-policy decisions and will quantify results in diagrams,
and visualize results in maps. The policy makers are intrigued by the prospect of a modeling approach that
allows them to ‘test run’ new policy scenarios and so avoid unforeseen consequences especially for the
environment and natural resources. A baseline analysis of users’ impressions and project impact (May 2008)
found that policy makers were engaged in the process, interested in the results, and ready to commit staff time to
apply the models and incorporate findings into NR planning processes.

5. Impacts
The project has already had a distinct impact on communication pathways and institutional relationships between
Bappenas and its counterpart agencies. Through the case study, policy makers at regional and national level
are fully engaged in a dialogue process in the real world application of this multi-tier modeling approach.
Working groups regularly bring together officials from planning and economic development agencies at regional
and national level. These working group meetings and workshops provide a venue where ideas from the field
can be discussed at the center, where central officials can see real impacts in the field, and where the modeling
framework can focus their attention on specific policies and responses of economic agents managing resources.
Trained champions at central and regional level are now developing policy papers based on scenario analysis as
a contribution to the medium term planning process and document, to be published by BAPPENAS in CY 2009.

This growing engagement will be important for building the findings and results into the national development
planning and budgeting context over the next year. The GoI’s medium-term planning cycle calls for a new
strategic plan for the period 2010-2014, corresponding to the term of the next elected government. The project is
contributing to the GOI policy framework which is aiming to promote environmental sustainability, which has
already been incorporated as a thematic focus in the WB Country Partnership Strategy for Indonesia.
Furthermore, both the macro and micro side (case study and agent based modeling) of the project will be able to
say useful things about the impact of policies related to climate change (change in energy pricing, etc), so that
will be another benefit that goes beyond the original intention when the project was conceived.

6. Progress against milestones and indicators

Progress
Activities Kalimantan Central Java
Household Survey Design Completed Completed
Household Survey Implemented Completed Completed
Detailed Interviews Completed Completed
ABM Model Design Completed Completed
Biophysical Model Components Completed In Progress
Agent Response Functions Completed In Progress
Training on Agent Based Model Completed Completed
Draft and Trials of Model Completed
Development of Scenarios In Progress
Modeling Analysis and Policy Papers In Progress

7. Opportunities and/or obstacles/issues related to implementation of activity

In addition to the opportunity to link to the national planning process (outlined above), there is also an opportunity
to link case study results to ongoing discussions about climate change (mitigation, adaptation, and energy use)
in the national development planning process. For example, the field based component (being supported by
PROFOR) will contribute to an understanding of agents’ energy use and adaptation efforts, as well as their
responses to relative price changes, including forest use. The typology work will also provide a richer
understanding of societal winners and losers in the face of climate change impacts or mitigation policies (e.g.,
higher fuel prices). These linkages have been recognized and a workshop and other venues are planned for
presenting results.

The project has faced and overcome some difficulties in establishing engagement with key agencies, which has
now been overcome, partly due to the long term placement of senior project scientist and Indonesian liaison
officer in close proximity to BAPPENAS. Of course, the project must also compete for agency attention against
other priority issues, including increasing fuel prices, and now financial crisis. This increases the relevance of
the project results and raises the profile among policy makers, but also increases pressure for time bound
results. Linking results to development planning process and climate change discussions is raising the profile of
the work.

74
 8. Changes to original activity time schedule
Efforts have been made to shorten the timeline for delivery of major outputs to coincide with Bappenas’ need for
inputs to the National Development Planning Process by end 2008. The GOI planning schedule was tightened,
then relaxed, so that most detailed discussions are now planned for CY 2009, though planning workshops are
already beginning at BAPPENAS. Some delays in field work and survey results have delayed model
development and readiness for policy analysis. Delays in scheduling training and workshops with Government
counterparts have delayed the scenario development and analysis process.

Months (begin May 2007)

Activities 1- 3- 5- 7- 9- 11- 13- 15- 17- 19- 21- 23- No of
2 4 6 8 10 12 14 16 18 20 22 24 Months
Activity 1: Household Survey Design,
Implementation and Interviews (intended)
(actual)
Activity 2: ABM Model Design:
Biophysical, Agent Response Functions,
Coding, Calibration (intended)
(actual)
Activity 3: Training on Agent Based
Model, Develop network of champions
(intended)
(actual)

Activity 4: Development of Scenarios:

Model runs, trials, workshops (intended)
(actual)

Activity 5: Modeling Analysis and Policy

Papers (intended)
(actual)

9. Next steps
 Draft case study report for Kaltim (previously submitted) to be refined and improved, taking account of
highlights of the scenario modeling results. Late January 2009.
 Draft scenario synthesis report to be developed and refined in collaboration with BAPPENAS champions.
For delivery in late January 2009.
 Intensive workshops on modeling results with Bappenas Core Team, Regional Planning Agencies, Regional
Universities. Dec – Jan 2009.
 Completion of ABM model for Central Java (Jepara) and similar process of training, workshops, scenario
development, and case study report. Feb-Jun 2009.
 Presentation of results at national and regional workshops with more senior policy makers. April - May
2009.

10. Replication potential

Based on the success and interest in the Kalimantan case study, BAPPENAS and the working groups are now
actively developing a second case study site in Central Java (Jepara and surrounding districts). This area was
chosen because it represents a more populous and urbanizing area on Java, but still with strong links to natural
resource use, both through timber and rattan imports for the furniture industry and through the fisheries industry,
which is a key livelihood strategy for many households. This case study will expand the reach of the approach
and provide a useful regional cross check that will strengthen confidence in the results.

The project has also stimulated demand for more work and case studies, as well as capacity development
activities to improve the uptake of the model and results and the ability of staff to use the models and report on
policy relevant scenarios. This is being considered as a potential “Phase 3” of the project.

11. Budget
Table 1: Funding Overview (as of Dec 16)

PROFOR Funding $200,000

GOI (in kind) $10,000

75
 AUSAID – CSIRO $220,000
TOTAL $430,000
PROFOR Funds Used To Date $ 194,191
Total Funds Used to Date $ 414,191

76
Knowledge Management and Networking
Mapping Emerging Ecosystem Service Markets Matrix

Start date: January 2008

Status: CLOSED
Proponent: Forest Trends

1. Geographical focus
Global

2. Objective
Using the Ecosystem Marketplace Matrix as the framework, take an in-depth look at the state of environmental
markets through a comprehensive scoping study. Make the Ecosystem Marketplace Matrix the premier source
of information on ecosystem service markets.

3. Activity and output: progress to date

The in-depth study resulted in a state-of-the-art PES Matrix chart, report, and summary brief. The Matrix chart
and report were both published on the Ecosystem Marketplace homepage along with a feature article
summarizing the Matrix publications immediately following the Katoomba XII in DC – historically a period of high
traffic to the site. The Matrix feature article, chart, and report will be featured in the EM newsletter in the coming
week. The Ecosystem Marketplace receives an average of 35,000 visitors a month (1 Million hits) and the
newsletter goes out to over 5,000 subscribers. During the Katoomba event, two Matrix posters were displayed
and print copies of the report handed out.

4. Findings
The findings are broad in scope and complex. A few examples of trends uncovered during this process are:
- While most PES markets are growing at approximately 10 to 20 percent a year, the carbon markets are
skyrocketing at 200 to 700 percent a year. The Voluntary Carbon market, where the lion’s share of the land
use and land use change and forestry project take place, is growing at a faster rate than the regulated
carbon market.
- The participants and experts surveyed believe existing markets have the potential to address in a significant
way the global environmental issues of biodiversity loss, water pollution and climate change – but may not
be living up to their potential. One major stumbling block continues to be transparent information and
capacity
- To achieve the sustainable management of ecosystem services, PES schemes must be designed and
implemented carefully, intelligently, and adaptively.
- An important aspect across all of these markets will be to ensure that the communities and small scale
producers are able to actively participate and benefit from ecosystem service markets. This will mean
developing instruments to provide support, such as aggregation services to communities, shaping regulation
to engage local small-scale providers, and clarifying tenure and user rights associated with these new
opportunities.

5. Impacts
The matrix and its mothership the Ecosystem Marketplace are building on this work and launching a Forest
Carbon Portal. We have already reached out to the World Bank and its proposed FCP and Forest Investment
Fund. This set of analysis is also the basis of a workshop we are hosting with DfID on ecosystem service
markets and poverty reduction.

6. Opportunities and/or obstacles/issues related to implementation of activity

The main challenge with this activity is staying current in a landscape of payments and markets that are still
emerging, changing rapidly, and spread out across geography and institutions. The opportunity we are
capitalizing on is using the Matrix to create an infrastructure network of specialized and regional expert to
maintain a flow of market information in this rapidly shifting landscape.

77
7. Progress against milestones and indicators
We achieved all goals: updated the matrix from expert consultation, and published and disseminated the tool in a
variety of formats (chart, report, and summary brief).

8. Changes to original activity time schedule

N/A

9. Next steps
In the coming months we would like to develop an on-line interface for the PES Matrix from which a user may
easily browse the complex information as well as log on and contribute information and knowledge.
Also, we have shared the matrix with Bloomberg and they have used it to begin to develop their strategy around
covering these markets. We hope to build on this relationship to partner with their expertise to further develop the
living document strategy for this work.

10. Replication potential

There is great replication potential for this tool, specifically at the country or regional levels. Currently the Matrix
is made up of high-level summary information for the global ecosystem service markets. Using this same
architecture to map regional or country payments and markets could be tremendously useful for policy makers,
land owners, and local and foreign investment.

11. Budget
PROFOR Funding $28,000
Other sources $0
Total $28,000
PROFOR Funds used to date $28,000
Total Funds used to date $28,000

78
Global Forest Leaders Forum

Start date: June 2008

Status: CLOSED
Proponent: World Bank

1. Geographical focus
Global

2. Objective
The world’s forests have immense potential to address the causes and consequences of climate change and
achieve the Millennium Development Goals (MDGs). Carbon emissions from deforestation contribute
significantly to climate change and, in turn, climate change has significant impacts on the vitality of forests.
Deforestation is rooted in a complex web of direct and underlying causes, which, in many cases, may also lie
outside the forest sector.

To maximize the potential of sustainably managed forests to contain global warming, a network of private sector
and civil society leaders united in seeking solutions to the challenges facing global forests called The Forests
Dialogue (TFD) [in which the World Bank participates] began a series of dialogues in Bali in 2007. The objective
of the dialogue was to develop key issues from which to base a future outcome-oriented, dialogue-based
initiative that would strive to make a real impact on future climate arrangements. Convinced that the solutions to
climate change must be closely integrated with strategies for overcoming poverty, economic development, and
environmental protection the World Bank participated robustly in this process.

To finalize the dialogue process and to obtain buy-in from political, institutional, private sector and civil society
leaders, the World Bank, with PROFOR’s support, agreed to host a forum of forest leaders. World Bank
participation at the highest levels lent legitimacy to the process.

it will be necessary to reach understandings on a number of politically difficult policy reforms. These include
effective forest governance and land tenure reforms that will protect indigenous peoples’ rights and facilitate
community participation. It will also be necessary to create an enabling environment to sustain measures
against deforestation and attract responsible private sector investment.

3. Activity and output: progress to date

Activity 1: Here, five Briefing Notes were prepared to guide discussions during the main activity, The Global
Forest Leaders Forum (see immediately below). The briefing papers were entitled:
- A Coherent Approach to Forests and Land Use
- Main Drivers of Deforestation Outside the Forest Sector
- Addressing the Demand for Good Forest Governance for REDD
- Tenure, Property and Carbon Rights
- Financing Capacity Building in Counties and Stakeholder Groups

Activity 2: The main output under this activity was a conference entitled The Global Forest Leaders Forum
held at the World Bank from September 16-17, 2008. It convened approximately 250 CEOs of forest industrial
companies, heads of leading conservation agencies and local community organizations, leaders of indigenous
people groups, representatives of financing institutions and private foundations to review forest sector strategy
options for addressing climate change through multi-stakeholder approaches. Organized by the World Bank and
The Forests Dialogue and with the co-sponsorship of the International Union for Conservation of Nature (IUCN),
the World Business Council for Sustainable Development (WBCSD), the World Resources Institute (WRI), the
Forum developed (building on progress made through the three TFD preceding dialogues) and adopted a
common vision for the positive role sustainable forest management can play in addressing climate.

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 4. Findings (either preliminary or final)
Five guiding principles were developed and compiled as a consensus statement supported by the very diverse
group of stakeholders through a facilitated process . Throughout the Initiative, participants agreed on a number
of key messages. They include:
 Forests have a unique ability to simultaneously reduce greenhouse gas emissions, capture carbon, and
reduce the vulnerability of people and ecosystems to climate change.
 Forests store a vast amount of carbon. Conserving this store by reducing deforestation and forest
degradation and promoting sustainable forest management must be one the world’s highest priorities.
 Restoring forests and planting new forests greatly increases the forest-based carbon store. Sustainably
managed forests not only retain their carbon, they also support the livelihoods of millions of rural people and
deliver many products and ecosystem services such as the clean water and wildlife habitat that societies
need.
 Sustainably harvested forest products and wood-based bioenergy can reduce greenhouse gas emissions by
substituting high emission materials such as petrol, steel or concrete for neutral or low emission, renewable
ones.
 For forests to fully achieve their potential to address climate change their governance must be improved and
processes established to empower disenfranchised people, including Indigenous Peoples.

To more effectively communicate the forest’s climate change mitigation opportunities, the group established five
principles that should guide all those concerned including climate negotiators:

1. Ensure that forest-related climate change options support sustainable development in both forest-rich
and forest-poor countries.
2. Tackle the drivers of deforestation that lie outside the forests sector.
3. Support transparent, inclusive, and accountable forest governance.
4. Encourage local processes to clarify and strengthen tenure, property, and carbon rights.
5. Provide substantial additional funding to build the capacity to put the above principles into practice

5. Impacts
Several leaders at the Forum pledged to incorporate the five guiding principles into their own forestry work. The
statement, entitled Beyond REDD: The Role of Forests in Climate Change was presented to the press
and thousands of participants at IUCN’s World Congress in Barcelona Spain in October 2008 and at UNFCCC
COP 14 in Poznan, Poland in December 2008. Members of TFD also met with Brazil’s Minister Figueiredo
Machado who is tasked with creating the first working draft of the document to be signed at for the
CoP 15. He was very supportive of the dialogue process’s efforts and appreciated the unique depth
and breadth of this consensus Statement.

6. Progress against milestones and indicators

The conference took place as planned.

7. Opportunities and/or obstacles/issues related to implementation of activity

None

9. Changes to original activity time schedule

Months
Activities 1 2 3 4 5 6 Number of Months
Activity 1: Preparation of briefing notes 1
(intended and actual)
Activity 2: Conference Preparation (intended)
(actual) 4
Conference and follow-up (intended)
(actual) 1

9. Next steps
The statement is still being shared with various stakeholders in a desire to ensure that the principles
appear in negitations at COP15.

10. Replication potential

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 Not applicable

11. Budget

Table 1: Funding Overview

PROFOR Funding $ 116,809.68
Other sources (list) WB $ 10,852
TOTAL $126,852.68
PROFOR Funds used to date $$ 116,809.68
Total Funds used to date $126,852.68

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Developing Certified Forests, Forest Products and Markets for China: International Conference
Start date: February 2008
Status: CLOSED
Proponent: Rainforest Alliance

1. Geographical focus
China

2. Objective
The objective of the conference is to provide perspectives on the current state of certified forest products for
China. We will explore the drive towards sustainable forest management inside China and those countries that
supply China and explore opportunities to positively support the journey towards more sustainable forest
management and development of certified forest products markets (domestic in China and international export).

3. Activity and output: progress to date

The recent “Developing Certified Forests, Forest Products, and Markets Conference,” which took place on April
2-3, 2008 in Beijing, China brought together more than 45 speakers and over 240 people from industry,
government, financial institutions, NGOs, and academia.

The conference aimed to explore to market trends for certified forest products focusing on the important role
China plays both domestically and globally. Over the course of the conference landowners, manufacturers and
retailers and goverments illustrated their innovations in supply/sourcing strategies . We learned from companies
like Tembec, the worlds largest owner of Forest Steardship Council-certified land, and a major supplier of pulp,
about the ways certification has helped them secure their supply chain, promote their products, improve their
processes and grow their reputation as an industry leader. The Chinese governement State Forestry
Administration showed us how they engage multiple stakeholders to address social and environmental issues
within the forestry sector. We also heard from companies like B&Q Stores and Nature Flooring, a Chinese
flooring company,about their motives for committing to certifying their supply chains..

4. Findings (either preliminary or final)

Key trends that emerged at the conference include:

1. The role of government is increasing. Iternational initiatives like FLEG (Forest Law Enforcement and
Governance) address the global problems with illegal timber, while national governments can drive demand
by enacting procurement policies that favor certified products, and influencing responsible performance
through tax and customs policies and by increasing support of certification as a solution.
2. Businesses now recognize that certification is a powerful way to manage risk in the supply chain, access
emerging “green” markets, be responsible to their shareholders and stakeholders (workers, communities),
and stay competitive in a volatile and dynamic business climate.
3. Third-party independent certification of sustainable practices has trumped unverified company claims,
industry-backed compliance schemes and even government regulatory mechanisms as a way to build trust
among customers, buyers and shareholders.

5. Impacts
All conf participants are contacted on a regular basis to keep them informed about developments and
opportunities with FSC and other certification schemes. The awareness is expanding and we aim to be involved
in many levels of the growth of Certification in China and the rest of the Asia Pacific region. Rainforest Alliance
is currently the premier provider of certification training in the world, as well as supporting companies to develop
sustainable, certified supply chains.

6. Progress against milestones and indicators

The conference impacted an "A-list" of conference speakers and panel members and attendees from
industry/government/academia both within China and internationally (conference will be conducted in
both English and Chinese). We expected 200 people and hosted more than 240.

Expected outcomes included improved knowledge and more in-depth dialogue in the following areas:
 Global and regional forests & forest products markets

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  Greening forest management & supply chains
 China’s role in the forestry & the forest products marketplace
 Demand drivers for Chinese forest products
 Sourcing and supply perspectives in furniture, paper/packaging and construction sectors
 Support for development of certified forests and products for China
 Current/promising buyer approaches
 Current/promising supplier approaches

All the above was achieved.

7. Opportunities and/or obstacles/issues related to implementation of activity

Some resistance by the Chinese government tried to limit our use of media to cover the event, but in the end we
achieved tremendous coverage in a variety of publications. Other than this all went smoothly.
Media attending:
International Media: Business Week, Reuters, Associated Press
Chinese Media: Beijing Times, China Youth Daily, China Business News, International Business Daily, China
Securities News, Asian Business Leader, China Economic Herald, China Enterprise News, China Green Times,
Industry News Department, China Green Pictorial

See links to articles already written about the event:

a. http://www.chron.com/disp/story.mpl/ap/fn/5668189.html
b. http://paper.cs.com.cn/html/2008-04/07/content_14995052.htm
c. http://www.forestry.gov.cn/subpage/content.asp?lm_Tname=zwgk&lmdm=4000&f_lmname=%E6
%94%BF%E5%8A%A1%E5%85%AC%E5%BC%80&id=4343

8. Changes to original activity time schedule

No changes to original schedule

9. Next steps
We hope to engage funding to support the further pursuit of sustainable supply chains by companies either
funding this goal internally or perhaps as a condition of development funding they receive. We think a followup
conference in the next 18 months that focuses on key industry sectors, convening to discuss supply issues in
pursuing certified sources is in discussion.

10. Replication potential

This is possible but would require a concerted amount of funding to launch this project again in another region.

11. Budget
Table 1: Funding Overview

PROFOR Funding $12,000

Partners $25,000
Stora Enso $5000
Suzano Corp $2500
SINO FOREST 5000
HSBC 5000
TUITIONS 10000
Total $64,500
Total PROFOR funds used to date $12,000
Total Funds used to date $ 64,500

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Cameroon Sector Policy Reform Report

Start date: February 2008

Status: CLOSED but administratively active during 2008
Proponent: World Bank

1. Geographical focus
Cameroon

2. Objective
The study analyses the process of forest sector reform in Cameroon: its phasing, technical, political, and
economic drivers, achievements, shortcomings, and lessons learned. It highlights the role the Bank played in the
process, and address concerns expressed by various actors at different junctures. The past 10 years of forest
sector reforms yielded many important lessons and are likely to significantly influence the work of the WB in this
delicate area of policy dialogue with its client countries especially in Africa.

3. Activity and output: progress to date

 Consultation with the Government representatives, the major donor partners, NGOs (WWF, IUCN, REM,
CED) as well as research institutes (CIFOR, CIRAD).
 Editing of report in English
 Translation of the Report in French
 Editing of the report in French

4. Findings (either preliminary or final)

Most of the forest countries in Central Africa region (COMIFAC members) are in the process of
reforming their forest sector. Cameroon’s reform record particularly rich and important because it is more
advanced than comparable processes in other countries and has inspired reforms neighboring countries
important. The reports presents findings in several important areas: community forestry, industrial forestry,
sectoral governance, to name a few.

5. Impacts
The report has not been published yet and discussing its impact is too early. It is expected that this work
will cast more light on complex reform processes and will allow accelerating progress and avoiding
mistakes both in Cameroon and other countries. .

6. Progress against milestones and indicators

 External Review
 Editing/re-writing of report in English
 Translation of the Report in French
 Editing of the report in French

7. Opportunities and/or obstacles/issues related to implementation of activity

The activities for which PROFOR support has been sought did not present particular difficulties

The challenges of the Cameroon forest reform process are highlighted in the body of the report soon to be
published.

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8. Changes to original activity time schedule

Months (in the Form of a Bar Chart)

Activities 1 2 3 4 5 6 7 8 9 10 11 12… Number of
Months
Activity 1:
Consultations (GoC,
partners, NGOs, etc)
(intended)
(actual) 1
Activity 2: Editing,
adaptation and lay out of the
english version
(intended)
(actual) 2
Activity 3: Translation in
French
(intended)
Same (actual) 1
Activity 4: Publication Subtotal (2)
(intended)
Same(actual)
4
Overall Total

9. Next steps
 Publication of Report in English
 Publication of Report in French
 Presentation of Report in Cameroon
 Dissemination of Report .

10. Replication potential. Significant

Potential is confirmed the report will be published as part of the Directions in Development Series of the World
Bank. The publication will carry the PROFOR LOGO

11. Budget

Table 1: Funding Overview

PROFOR Funding $ 45,000
Other sources (list) $25,000
BB – CMU , Capacity Development $15,000
BNPP $30,000
TOTAL $115,000
PROFOR Funds used to date $32,799,45
Total Funds used to date $ 90,522.45

85