ITTO THEMATIC PROGRAMME ON

TRADE AND MARKET TRANSPARENCY(TMT)PROGRAMME DOCUMENT

5 March 2010

TABLE OF CONTENTSI.

II.

PLANNING ELEMENTS

1

1.

RATIONALE AND PROBLEM ANALYSIS

1

2.

OBJECTIVES

6

3.

PROGRAMME STRATEGY

64.

OUTCOMES/OUTPUTS/DELIVERABLES AND EXPECTED IMPACTS/BENEFITS

11

5.

OTHER PARTNERS AND STAKEHOLDERS

136.

ACTIVITIES

147.

WORK PLAN, INCLUDING BUDGET ESTIMATES AND DONOR CONTRIBUTIONS

16

OPERATIONAL ELEMENTS

17

ANNEXESANNEX 1.

PROBLEM TREE ANALYSIS OF THE TMT THEMATIC PROGRAMME

19

ANNEX 2.

SUCCESS FACTORS OF PAST ITTO PROJECTS IN FOREST AND
MARKET INFORMATION SYSTEMS

20

THEMATIC PROGRAMME APPRAISAL PROCESS

22

ANNEX 3.

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I.

PLANNING ELEMENTS

1.

RATIONALE AND PROBLEM ANALYSIS

Rationale
The tropical timber trade in logs, sawnwood and plywood/veneer generates significant income and1
employment. The export revenue to ITTO producing member countries is about USD 11.2 billion . Thisis complemented by exports of about USD 10.8 billion of Secondary Processed Wood Products
2(SPWPs) . While the exports of the latter have been growing and there has been some expansion intropical sawnwood exports in the recent years, tropical plywood from the ITTO producing countries
has lost its market share and the export volume has been declining. Trade flows have also changed
due to the rapidly increasing demand for timber and timber products in China, the Gulf States andmany other emerging markets in Asia and Latin America. At the same time, China has emerged as amajor in-transit producer/exporter of plywood and SPWPs, largely based on imported raw materials
from the tropical countries, Russia and other sources. Another trend is the on-going penetration ofplantation wood into solidwood product markets in the form of reconstituted panels, plywood and
SPWPs influencing the competitiveness of tropical timber from natural forests. MDF-based flooring,furniture from non-wood materials and other products made of bamboo are also penetrating sometypical end-uses of tropical timber.
International tropical timber markets are undergoing dynamic structural changes in the face ofchanging global demand patterns and emerging market requirements, including those for supplies
3
from legal and sustainably managed forests. It is critical that trade is developed in such a way that it
effectively support sustainable management of tropical forests. The current concentration oninternational trade in few major species is a critical constraint which has also led to over-harvesting ofsome of them. The situation calls for trade development of lesser-used species (LUS) and other new
materials.
There are several untapped export opportunities for tropical timber products. For example, a recent
analysis of the intra-African trade revealed that less than 10% of the region’s timber products importsof USD 4.4 billion (2007) originated from the region itself, suggesting major opportunities for4
expansion. Similar opportunities for the development of intra-regional trade are also existent in the
Asia-Pacific and Latin America. Knowledge on the regional markets among potential exporters ishowever limited and specific measures are needed to develop intra-regional trade in tropical timber.
Domestic demand for timber and timber products both for subsistence and market consumption is
growing in many tropical timber producing countries. As a result, some traditional exporters havebecome importers of wood raw material and primary processed products, which is having a major
impact on their marketing strategies. The importance of domestic markets as alternative outlets has
also become increasingly important because the demand for tropical timber in the main import markets
has contracted due to the recent financial crisis. Improved information on domestic markets istherefore needed.
The market requirements for timber and timber products are constantly changing. Technical, healthand sanitary standards and product specifications in major import markets are evolving influencing
5access to markets by tropical timber producers. Public and private timber procurement policies andemerging regulations are developed to transform the markets towards promoting demand and supply
6of timber and timber products. These new requirements represent a major challenge for tropicaltimber exporters impacting their competitiveness.
1
2

3
4
5

6

The total forest sector exports was reported as USD 30.8 billion in 2006 (excluding NFTPs).
A significant share of this is produced based on non-tropical timber, often imported.
The specific issue of legality and sustainability of tropical timber supplies is covered by the ITTO Thematic Programme on
Tropical Forest Law Enforcement, Governance and Trade.
Favada, I. 2009. The Promotion of Intra-African Market for Timber and Timber Products. Report prepared for ITTO.
Tissari, J. 2009. Report on the Study of the Technical and Environmental Standards of Tropical Timber Products inInternational Markets (Draft). CEM-CFI(XLIII)/9.
Simula, M. et al. 2010. Study on Developments and Progress in Timber Procurement Policies as Tools to Promote
Sustainable Management of Tropical Forests. Report prepared for ITTO.

1

While tariff barriers have declined in developed countries, there still remains a degree of tariff
escalation. This is further compounded by trade between developing countries in which both tariff
rates and escalation represent a key barrier to the development of intra-regional trade. Non-tariff
7
barriers continue to be significant for tropical timber trade in major import markets . These barriers canrapidly affect market access for tropical timber (e.g. CE marketing in the European Union).
There is a need to monitor these various developments in regulatory and other market requirements
and support tropical timber producing countries in meeting them. Without assistance, tropical timber
producing countries will continue to face difficulties in having facilitated access to import markets.
There are also other factors which are adversely affecting tropical timber trade such as complex
procedures of importation in exporting and consuming countries (both developed and developing), lackof clarity of sanitary regulations, and high transaction costs paid to trade intermediaries. Tradefacilitation could help tropical timber exporting countries in overcoming these limitations which need tobe addressed.
Tropical timber exports are under a strong competitive pressure from temperate timbers and othermaterials which can be used for the same purposes. In some markets there are stakeholder andconsumer concerns about the environmental acceptability of all types of wood-based products, inparticular tropical timber. There is a need to improve communication on the environmental credentials
of tropical timber and timber products from sustainably managed forests to buyers, consumers andother stakeholders.

Problem Analysis
The core problem to be addressed by the TMT Thematic Programme is inadequate market
transparency and weak capacity of ITTO producing member countries to develop and sustain aprofitable trade in timber and timber products and to proactively adapt to rapidly changing markets.
There are three main direct causes to the situation including (i) weak information systems on themarkets and the forest sector in producing countries, (ii) gaps in the existing market intelligence, and(iii) limitations in accessing markets and in market competitiveness of tropical timber and timber
products due to various constraints, in particular changes in market requirements as well as specificmeasures taken by regulators and activists to eliminate or reduce the use of tropical timber in general.
Capacity building and weaknesses in national policy, legal and institutional frameworks are crosscutting issues in addressing the core problem of the Thematic Programme. (see Annex 1 for problem
tree analysis)With regard to market information systems the following general situations in the ITTO member
countries can be identified: (i) countries which have no functional information systems or which are ininitial phases of their development, (ii) countries which have recognized the importance of market
information, developed institutional models, but which still have significant needs to strengthen andcoordinate their information systems, and (iii) countries which have relatively well-established national
systems but which still have gaps and other needs of improvement.
There are a number of underlying problems (sub-causes) for the current weaknesses. In many cases
decision makers have weak understanding on the strategic importance of information for policy
development, planning and performance assessment. This is coupled with a lack of commitment toimprove information systems. Building up the forest sector information systems has typically takenplace through a piecemeal ad hoc approach by adding new elements which are not linked with eachother without a holistic approach. Data collection suffers from sources of error leading to unreliable
data. The coverage of the systems typically includes only some aspects of information needs. For
instance, many countries do not have reliable data on production and use of timber and timber
products which makes reliable assessment of demand and supply impossible. Illegal logging andillegal trade of timber products introduce another constraint to the collection of reliable timber
production and trade data.
7

Taylor, R. & Ass., STCP Engenharia de Projetos & Wing Hing, L. 2005. Report on the Measures to Promote the Expansion
and Diversification of International Trade in Tropical Timber. ITTO.

2

Manual systems are still common but suffer from errors and computerization could significantly
improve cost-efficiency. On the other hand, some countries which have adopted sophisticatedcomputerized systems suffer from an imbalance between system sophistication, technical level of
hardware and staff skills limiting effectiveness. 8
Lack of trained staff to build up and operate information systems and high staff turnover are other key
constraints. Specialized training would be needed but facilities are often lacking. Furthermore,
motivation to collect and produce reliable data in the assigned organizations is constrained by lack ofeffective dissemination of the results.
Gaps in the marketing intelligence typically include (a) lack of information on domestic markets, theinformal sector and legal/illegal production; domestic demands are growing fast and are often difficult
to satisfy by the available national supply due to lack of knowledge. (b) Unreliable projections ofdemand and supply make planning at enterprise and national level difficult. (c) End uses and market
characteristics of individual species, including LUS and plantation species, are poorly known. The
development of LUS utilization can play a critical role in making sustainable forest management innatural tropical forests economically viable. Market prospects for individual plantation timbers should
be known to guide species selection but such information is presently too general or scanty fordecision-making on plantation investments. (d) There is inadequate information on the factors driving
change in tropical timber consumer markets and how to proactively respond to these. New markets fortropical timber and timber products are poorly known and their dynamics is different from thetraditional importing countries. Their relative importance has recently become even greater than in thepast due to the financial crisis which has impacted most traditional major markets for tropical timber.
(e) Specific information on markets for SPWPs is inadequate but necessary to guide investment in
adding value. There is poor knowledge on the structure of the value chain (volumes of timber andtimber products produced and used in different phases of the value chain, requirements of wood raw
materials used in SPWPs, costs of processing, logistics, intermediaries and transaction costs) and on
cost competitiveness of individual producers.
There are also limitations in accessing international and regional markets of tropical timber producers.
Many factors including tariffs, standards and technical regulations, and other potential non-tariffbarriers to trade affect market developments cannot be monitored effectively by tropical timber
producing countries. Lack of adequate information on these developments makes it also difficult toimprove national policy and regulatory frameworks which are compatible with the WTO rules and could
thereby promote trade in timber and other products from tropical forests. ITTO’s work in this field has
been fundamental but due to limited resources it has fallen short of the needs of producing countries.
In market access proliferating and varying individual market requirements make it increasingly difficult
for tropical timber producers to promote trade. Various requirements of procurement policies, green
building initiatives, local government legislation, etc. have emerged with the purpose of promoting
sustainable development and consumption but often without due consideration of economic, socialand environmental impacts on tropical timber producing countries. In addition, specific measures toeliminate or reduce tropical timber use are being taken such as anti-tropical timber campaigns.
Monitoring of these developments, particularly green building initiatives which are gaining momentumin North America and the European Union, is necessary but there is also a need to provide relevant
information on the impacts and implications of such measures in tropical timber producing countries toensure that these can contribute to sustainable management of tropical forests.
Trade development suffers from several gaps which should be addressed by international and regional
level efforts. Removing barriers to intra-regional trade with significant expansion potential would
9
require systematic action for effective trade development. There are also constraints for tradedevelopment in the producer countries. The legal and policy frameworks are often inappropriate with
8

9

ITTO. 2003. Lessons Learned from ExPost Evaluation Missions Carried Out by the Committee on Economic Informationand Market intelligence. CEM-CFI(XXXIII)/3. 8 September 2003.

See e.g. ITTO Accra Action Plan in ITTO (2009). Tapping Market Opportunities for Tropical Timber Producers in Africa.
Report on the International Conference on Promotion of Intra-African Trade in Timber and Timber Products. Accra, Ghana,
30 June-2 July 2009.

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bureaucratic customs and inspection procedures and associated high transaction costs, corruption, as
well as inappropriate taxation and incentives. There is a need for trade facilitation measures toaddress these problems.
In the private sector of many ITTO producing member countries the main constraints include lack ofmarket information, weak marketing capability, competition from illegal operations coupled with hightransaction costs of legal operations, multiplicity of documentation requirements in exporting andimporting countries, limited access to trade finance; weak secondary processing capacity, low qualityand design of further processed products, and intense competition. In general there is lack ofknowledge on international market opportunities among small and medium-scale forest-based
enterprises (SMFEs). Their capacity to market products in export trade is weak due to small size andlimited resources.
At the international and regional levels, the lack of compatibility in statistics of imports and exports
between trading partners is a serious constraint to market transparency. Furthermore, the Harmonized
System codes of the World Customs Organization (WCO) are changing which may result in lessdetailed information on tropical timber trade at the international aggregate level. There is an urgent
need to improve the foreign trade statistics of tropical timber and timber products among trading
partners which requires collaborative efforts.
Another major constraint is the diversity of species nomenclatures and grading rules which make it
difficult for buyers and users to understand product characteristics. For instance, in Africa the same orsimilar species are being offered under different trade names from different countries. To address thisissue regional cooperation is needed. There is a major need to promote species/species groups to
educate timber users and to provide adequate information on their characteristics and end use
applications. Harmonization and simplification in this area are needed through regional cooperation
with the participation of market partners.
Tropical timber is under strong competitive pressure in international markets from temperate timber
products and other substituting materials. The environmental credentials of tropical timber products
are poorly documented and promoted and the result is often a weak image among consumers,architects, builders and building authorities in consuming countries. There is a need for adequate
comparative life-cycle studies between tropical timber and its substitutes as well as other informationon the various environmental, social and economic benefits of SFM to generate credible information
which can be communicated to stakeholders in international and domestic markets to facilitate tradedevelopment. In addition, there is lack of generic marketing and trade development of tropical timber
products which would be needed to counter the strategic marketing initiatives from other material
sectors.

Relevant International and Regional WorkITTO has been instrumental in the improvement of market transparency and promotion of trade intropical timber and timber products. The main ITTO outputs in this field include Annual Review andAssessment of the World Timber Situation, the bi-weekly Tropical Timber Market Report disseminating
systematically updated data on tropical timber prices and market news in are unique internationalsources of information to detect medium and short-term changes in the market situations. Availabilityof these data sources is being further enhanced by the development of an on-line database including
statistics on production and trade of tropical timber by ITTO member countries. 10 ITTO’s periodic
reports on the status of tropical forest management and various outlook studies have provided
information on long-term trends in the tropical timber supply and market situation. Annual ITTO Market
Discussions provide an opportunity for exchange of information and views among trading partners on
the tropical timber market situation and trade issues. ITTO’s analytical studies on market
characteristics and factors affecting demand, supply and market access have improved market
transparency and policy design. Various policy initiatives of the Organization have contributed to thecapacity of producers in adapting to changing market conditions. ITTO’s work to improve market
information systems and trade statistics among its member countries has also been critical in thisrespect.
10 This is a collaborative effort with UNCTAD.

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Only a limited body of work has been taken by other multilateral and bilateral organizations to improve
market transparency and develop trade in tropical timber and timber products. FAO’s statistical work
focuses on production and trade statistics of wood raw material and primary processed wood products
on a general level, not separating information on tropical timber and timber products for the bulk of thecategories covered. The International Trade Centre has a market news service on selected productgroups among which of relevance to ITTO’s work are some NTFPs such as medicinal plants, essential
oils, and flowers and ornamental plants. FAO also publishes Non-Wood News which reports some
information on markets for NTFPs as well. The International Network for Bamboo and Rattan (INBAR)
maintains a data base on these two non-timber forest products but does not have a market information
facility.
Several attempts have been made to improve market information on regional and sub-regional levels.
The African Timber Organization invested in the past in developing a regional information system toshare knowledge but it is unfortunately not functioning.
In the private sector national and international trade and technical associations (e.g. ATIBT, UCBT)
collect and publish annual statistics on timber trade. A few commercial enterprises also provide
information on some tropical timber markets. These are patchy but important sources of information
which however suffer from partial coverage (mostly based on member surveys), delays in publicationand limited dissemination (mostly to members only or at high costs to non-members). There are also
other sources of information such as the Global Forest and Trade Network of the World Wide Fund for
Nature but they tend to largely rely on secondary information and focus on some specific aspects oftimber trade.

Value Added of the TMT Thematic Programme
The main value added of the TMT Thematic Programme derives from its complementarity with ITTO’s
current activities as well as those of other organizations by filling the existing gaps in market
transparency and strengthening of the capacity of tropical timber producers in trade development andmarketing. The ITTO efforts have been crucial to assist producing countries but the core problems arefar from being adequately addressed and therefore further concerted action is needed which cannot
be undertaken by other actors. Through the TMT Programme, the impact of ITTO’s contribution can besignificantly leveraged through a strategic approach.
ITTO’s competitive edge is in the following aspects: (i) extensive accumulated knowledge base on all
aspects of trade and markets which can be further developed, (ii) strong track record in capacity
building in improving forest information systems in member countries (a total of about 26 projects
throughout the tropics with valuable lessons learned on best practices providing a solid basis forsharing of knowledge), (iii) comprehensive approach covering the entire value chain including logs,
primary processed wood products and SPWPs such as furniture and joinery, (iv) established, welldeveloped mechanisms for knowledge sharing at all levels (MIS, publications, website, etc.), (v)extensive geographic coverage including almost all the major producing countries and all the maininternational markets, (vi) ITTO’s extensive outreach capacity to individual enterprises and other11
stakeholders through its Market Information Service (MIS) as an exclusive source of information on
short-term changes in markets is an efficient channel for disseminating information on key Programme
outputs among potential beneficiaries, (vii) the existing advisory structures (Trade Advisory Group andCivil Society Advisory Group) engaging the key intermediary organizations offer an additional outreach
instrument which can also provide relevant advice on Programme activities and validation of its main
results.
ITTO has carried out successful projects in the field of strengthening of forest and market information
systems in Bolivia, Brazil, Colombia, Panama, Peru, Ghana, Gabon, China, and Papua New Guinea.
Success factors of these projects are highlighted in Annex 2.
Thematically, the TMT Programme focuses on three main areas of constraints which are critical for
improving trade and market transparency in tropical timber and timber products. In capacity building,the focus is on strengthening of information systems which will bring benefits to all trading partners.
Improvement of the marketing skills and efforts of the private sector, particularly small and medium11

The Market Information Service has about 15,000 organizations/persons worldwide in its distribution list.

5

sized enterprises which still have a limited role in international trade, is another area in which theProgramme can make significant contributions to trade development. The Programme will also
address gaps in the available information on domestic, regional and international markets which arepoorly known and therefore represent an untapped potential in many cases. In addition, theProgramme will provide tools to monitor and influence factors impacting markets for tropical timber.
The TMT Programme has strong synergies with the ITTO Thematic Programmes on Tropical Forest
Law Enforcement and Trade (TFLET) and on Industry Development and Efficiency (IDE). The former
will generate specific outputs related to market intelligence on products from legally and sustainably
managed forests. The issues related to forest certification and verification of legal compliance will bealso covered by the TFLET Programme. In addition, there are strong synergies with the ITTO
Programme on Ensuring International Trade in CITES-listed Timber Species Is Consistent with their
Sustainable Management and Conservation as the TMT Programme will improve market transparency
on the CITES-listed species amongst others.
The TMT Programme has also strong links with the ITTO Thematic Programme on Community Forest
Management and Enterprises (CFME) as it will produce information on export and domestic markets
which can be directly used by the ultimate beneficiaries of the CFME, i.e. community forest
enterprises, indigenous peoples and smallholders. There are also synergies with the ITTO Thematic
Programme on Reduced Deforestation and Forest Degradation and Enhancing Environmental
Services in Tropical Forests (REDDES) which will initiate the development of the information base on
the markets for environmental services. To harness synergies and avoid operational overlaps, a close
coordination with the other ITTO Thematic Programmes should be established.

2.

OBJECTIVES

The general objective of the TMT Thematic Programme is to: (i) promote the trade of tropical timber
and timber products and NTFPs by increasing the capacity of producer member countries in market
intelligence and marketing skills; and (ii) improve market transparency through improved data andknowledge.
The specific objectives of the TMT Programme are (a) to strengthen information systems on markets
and the forest sector, (b) to fill gaps in the market transparency of tropical timber and timber products,and (c) to enhance market access and trade promotion of tropical timber.

3.

PROGRAMME STRATEGYThe Programme scope covers (i) strengthening of market information systems, (ii) improvement ofmarket transparency and (iii) facilitation of market access and trade development (Figure 1). Capacity
building and strengthening of the policy, legal and institutional frameworks are cross-cutting themes in
the Programme strategy.
The product scope of the Thematic Programme focuses during the pilot phase on market transparency
and trade development in timber and timber products including SPWPs. In the follow-up phase theProgramme can be expanded to include non-timber forest products and such forest services as
ecotourism, hunting, recreation, etc.
In the strengthening of information systems the TMT Programme can support interested governments
which are still in initial phases of development in this field in the elaboration of national strategies andaction plans for the development of market and forest sector information systems. In this group ofcountries there is typically a strong need to increase awareness among decision makers and otherstakeholders on the importance of market and sectoral information for policy design andimplementation. The Programme can support building up institutional capacity and training of a criticalmass of specialists to operate improved information systems. A country support package of the TMTProgramme can be provided through medium-sized projects in countries which have little or no
experience in market/forest sector information systems but which have a firm political commitment toimprove their decision making based on reliable information. The Programme can also facilitate
access to other countries’ experience through knowledge sharing at regional and international levels.

6

In countries which are already actively developing their information systems, the Programme canfocus on the improvement of the existing data bases, staff training, upgrading and integration ofindividual system components, and communication of the results. Support can also be provided tostrengthening of organizations of the private sector and forest communities and their networks tocontribute to national information systems and to build up their own market information systems,
including raising awareness regarding the important role of forest information systems in contributing
to tax/royalty collection. Support to the establishment of information systems is particularly relevant incountries which have difficulties in meeting their reporting requirements to ITTO. In countries with wellestablished information systems the Programme can support filling gaps in the existing informationand to strengthen analytical skills. The Programme will build on success factors already identified for
projects in this field (see Annex 2).
In improving market transparency the Programme can support, inter alia, improvement of thestatistical information on trade by improving collection and analyses of price data, promoting
appropriate HS codes for tropical timber and conversion factors, cross-checking of trade flow data,and other actions to identify problems in, and improve reliability of, trade statistics. Support toaddressing information gaps can include periodic surveys on production and use of timber and timber
products, wood-based bioenergy, the role of the informal sector, etc. The Programme can also
support studies to improve knowledge on consumer markets, including periodic surveys of consumer
perceptions of tropical timber products and market drivers to improve strategic marketing. Support canbe provided to studies on domestic and regional market prospects, characteristics of emerging
markets and prospects for intra-regional trade, demand and supply outlook of tropical timber products,
end uses of tropical timber species, as well as specific characteristics of potential markets for lesserused species and plantation timbers for solidwood products as well as SPWPs. As regards market
studies, the TMT Programme focuses on improving the information on the characteristics of themarkets which are not presently adequately known. As regards the LUS, three to five promising
species could be selected in each region to carry out exploratory detailed market studies to assist in
their promotion.
In the area of facilitating market access and improving the competitiveness of tropical timber, theProgramme can support (a) monitoring and assessing the economic, social and environmental
impacts of factors affecting tropical timber markets (e.g. tariffs, product standards and technicalregulations, non-tariff barriers, macroeconomic changes in the international markets, and otheremerging factors), and (b) studies on competitiveness of tropical timber, comparative life-cycle
analyses on tropical timber products vis-à-vis their substitutes including their carbon credentials,
12benchmarking of cost-competitiveness, and other relevant topics. The Programme can also support(c) proactive activities to influence policy design and market requirements related to trade in tropicaltimber as well as generic market promotion (advocacy, communication, stakeholder consultations,etc.) to make effective use of the Programme’s informational outputs.
In the area of trade development and facilitation, the Programme can provide support to analyticalwork on identifying and assessing optional measures of trade regulation including advocacy andgeneric market promotion (export bans for logs, export taxes and quotas, etc.) for the development ofexports in further processed products. This is a key issue in several African countries and some Asian
member countries of ITTO. Support to analytical work on other relevant policy issues can also be
provided e.g. for the development of the domestic market, improving the performance of the informal
sector and its integration into the formal sector, reduction of tariff and non-tariff barriers, and design oftrade development measures.
The Programme support includes knowledge sharing to disseminate the results of the outputs throughregional and international workshops, publications and ITTO’s website, the Market Information Service
and other means. The accumulated knowledge on the tropical timber species and their characteristics
and use properties in the three regions will be made available on ITTO’s website to facilitate trade.

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ITTO has recently carried out studies on technical and environmental standards (Tissari, 2009, ibid) and competitiveness oftropical timber (Oliver, R. & Donkor, B. 2009. Draft Report on Monitoring the Competitiveness of Tropical Timber. ITTO,
CEM-CFI(XLIII)/8. Updating of the information will be relevant in 2 to 3 years’ time depending on the developments in thesefields.

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At the enterprise level the Programme can support development of marketing strategies andstrengthening of marketing skills as pilot operations which have potential for replication on nationaland regional levels. Such support may be provided through industry and trade associations.
The ultimate target groups are people employed by forestry and forest industry associations andindividual enterprises, forest communities, indigenous peoples and smallholders, as well as theirorganizations. The intermediate target groups are government agencies, knowledge institutions,
relevant private sector organizations, timber product distributors, civil society organizations,consumers and other stakeholders. .
The Programme is open for stakeholders in all ITTO member countries. In view of the fact that further
processing and trade in tropical timber products is less developed in most African member countries
than in Latin America and the Asia-Pacific, the region should receive special consideration in the
Programme implementation.
The main instruments of the programme implementation are pre-projects and projects as well asactivities proposed by stakeholders in the ITTO developing member countries and submitted through13
the national ITTO focal points to ensure a coordinated approach. The proposals should fall under
one or more of the strategic interventions of the TMT Programme.
In addition, ITTO-implemented activities benefiting all the member countries of the Organization are
carried out which are targeted at improving the transparency of international markets, monitoring offactors affecting markets for tropical timber, improvement of international trade statistics andnomenclatures, as well as international and regional-level actions to share experiences and lessons
learned.

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The provisions of the ITTO Manual for the Formulation of Projects, Annex B Guidelines for the Participation of Local
Communities in the Project Cycle are considered in all the activities of the Thematic Programme.

8The main risks associated with the Programme and how they can be addressed are as follows:
(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

Inadequate political will to strengthen information systems and improve transparency of theforest sector as well as to assign adequate budgetary resources for these purposes may reducethe impacts of the Programme. To address this risk, the Programme includes targetedawareness-raising activities among decision makers and broad engagement of the private
sector and other stakeholders in the efforts to improve market transparency to ensure bottom-up
pressure for improved available information on the forest sector and markets for forest products.
Ultimate beneficiaries of the Programme may not have ready access to the generated outputs
due to lack of country-level dissemination activities. To address this risk the Programme will
expand open and targeted access to individual private enterprises, community forest enterprises
and other stakeholders to reduce dependence on intermediaries in dissemination. In addition,
specific dissemination activities will be included in the Programme-supported projects andactivities.
Government agencies may not be able to implement improvements in the information systems.
This risk can be reduced by careful planning and consideration of the success factors in earlier
support projects (see Annex 2 for lessons learned).
The intervention period of support can be too short to generate tangible results. During the pilot
phase of the Programme, this risk can be addressed by the inclusion of capacity building
components and specific exit strategies to ensure sustainability of improved practices (e.g.
integration with the implementation of national forestry programmes, mobilization of follow-up
support from other sources, etc.).
There is a risk of resistance from the private sector regarding improved transparency forcommercial reasons. This risk can be addressed through effective involvement of the private
sector in the development and implementation of the Programme. Dissemination of the resultsof improved information systems and market intelligence will provide immediate tangible
benefits to private sector enterprises which can be ensured by training of users of information.
There is a risk for competitive sensitivities between tropical timber producing countries in the
improvement of market transparency and data on competitiveness. In addition, someestablished exporters may consider it unnecessary to improve transparency in markets on
which they have already gained leading positions. This risk can be reduced as the Programme
can provide tangible benefits for suppliers in all the ITTO producing countries.
Adequate financing should be made available including counterpart financing. Targeted
fundraising efforts should be undertaken.

9Figure 1.

Programme
scopeMarketinformation
systems
Markettransparency
Market access
and
trade
development

TMT Thematic Programme Strategy

Private sector organizations/enterprises
Development ofmarketingstrategies

Improvement ofcapacity fordevelopment of
information
systems

Improvement ofskills in marketingand market
intelligence

Country level
Strategies for
information
systems andtheirimplementati
on

Improvementof statisticalinformation

Developmentof skilledhumanresources

Improvementof market
transparency

Tradefacilitation andpromotion

Disseminationof market
informationand knowledge
sharing

Timber andtimberproducts

Regional/international level
Improvement oftrade statistics,
nomenclaturesand grading
rules

Monitoringoffactors affecting
accesstomarketsandmarketconditions

International
andregional
market studies

Inter-regional
tradedevelopment

10

Knowledge
sharing andcommunication

TargetgroupsSpecific
objectives

Generalobjective

Ultimate:- private
enterprises- forest
communities- smallholders- strengthen
information
systems onmarkets
and theforestsector- fill gaps in
the market
transparen
cy oftropicaltimber andtimberproducts- promote thetrade oftropicaltimber andtimberproducts byincreasing
the capacityof producer
membercountries inmarketintelligenceandmarketingskills- enhance
marketaccess andtrade
promotionof tropicaltimber- improvemarkettransparency
through
improveddata andknowledge

Intermediate:- government
agencies- policy makers- private sector
organizations- communitybasedorganizations- other stakeholders

4.

OUTCOMES/OUTPUTS/DELIVERABLES AND EXPECTED IMPACTS/BENEFITS

Table 1.

Outcomes, Outputs and Deliverables of the TMT ProgrammeSpecific objectives
Strengthen information
systems on markets andthe forest sector

Outcomes
Improved decision making
on markets and market
promotion andstrengthened performance
evaluation
Improved reliability of
information on the forest
sectorImproved capacities ofbuilding up and running of
information systems

Fill gaps in the market
transparency of tropicaltimber and timber
products.

Improved statisticalinformation on trade

Improved information onmarkets

Outputs- Countries with improved information systems
on markets and forest sector- - National strategies to strengthen information
systems (including improvement of policy,
legal and institutional frameworks)- Strengthened capacity among decision
makers to use information- Improved quality of data
- Improved analysis of the data for decision
making- Trained staff and specialists- Private sector organizations with improved
systems and skills- Networks between producers and users of
information- Identified weaknesses in the existingstatistics- Improved trade statistics- Appropriate HS codes for tropical timber andtimber products- Specific information on production and use oftropical timber, demand and supply outlook,bioenergy, emerging markets- Improved information on intra-regional trade- Strengthened capacity to utilize market
information for marketing strategies andimprovement of policy, legal and institutionalframeworks

11-

Deliverables
Number of countries with improved information
systems
Number and quality of national strategies tostrengthen information systems
Awareness raising events
Communication products
Diagnostic studies
Statistical information on forest sector and
trade
Analytical reports
Working groups and thematic sub-groups
established and operational
Training courses, workshops and othercapacity building initiatives undertaken
Specialized networks operational
Improved Forest Sector Joint Questionnaire fordata collection
Consultative meetings and workshops withstakeholders
Analytical and statistical reports
Improved trade codes and conversion factors
Study reports
Workshops, seminars, conferences

Specific objectives

Outcomes
Improved decision-making
on forest production andplantation development

Outputs- Market information on Lesser Used Species
and new materials- Information on market outlook for individual
plantation species- Improved information on the structure of thevalue chain of tropical timber and timber
products

Deliverables- Survey and study reports on markets for LUS
and new materials- Regular survey and study reports on market
trends for tropical timber plantation species- Regular surveys and study reports ondevelopment of the value chain of tropicaltimber and timber products

Improved capacity of- Periodic systematic information on factors
tropical timber producers toaffecting markets (tariffs, non-tariff barriers,
adapt to market changes
etc.)- Monitoring and analysis of emerging market
requirements for tropical timber and timber
products
Improved competitiveness - Periodic systematic information and researchof tropical timberon the life cycle impacts of tropical timber vs.
substitutes
Improved marketing- Marketing strategies in pilot enterprises- Trained staff and specialists in market
strategies and skills
intelligence and marketing skills
Facilitated trade- Policies and legal frameworks facilitatingprocedures and reduced
tropical timber trade in exporting countries
transaction costs- Trade policy change and optimization
Enhanced trade promotion - Trade promotion strategies and action plans- Improved access by buyers, users andproducers on information on tropical timber
species characteristics and uses
- Market promotion activities for tropicaltimber- Regular reports on trends and factors affecting
tropical timber markets- Regular reports on emerging market
requirements of tropical timber and timber
products trade and trends

Improved benefit sharing
from trade
Enhance market accessand trade development

Enhanced knowledge
sharing-

Strengthened skills and knowledge on tradeand marketing of tropical timber
Effective networking among trading partners

12- Monitoring, research reports and awarenessraising activities on life-cycle impacts of tropicaltimber vs. substitutes- Number of enterprises with marketing strategies- Number of trained staff and specialists- Analysis of policy and institutional constraints
related to timber trade in exporting countries
and dissemination activities- Number of countries with strategies and actionplans- Web portal on timber species, trade and market
information- Means of dissemination of information- Trade promotion activities implemented- Advocacy and market promotion activities oftimber and timber products implemented- Communication products, conferences,
workshops and other training means and events
to promote tropical timber marketing informationand transparency- Information sharing networks operational

Expected Impacts/Benefits
The main intended direct impacts of the Thematic Programme in the long run are (i) strengthened
country capacity in implementing information systems on markets and the forest sector, (ii) improved
decision making on markets and market promotion. (iii) improved reliability of information, (iv)
improved market transparency for tropical timber and timber products, (v) improved marketingstrategies based on continuous information on market changes and factors affecting market access,(vi) facilitated market access for tropical timber and timber products, (vii) less discriminatory market
requirements, and (viii) enhanced trade promotion and facilitation.
The ultimate benefits of the Programme include contribution to (i) improved marketing, exports andcompetitiveness of tropical timber, (ii) improved earnings and sharing of benefits from trade ,(iii)enhanced trade contribution to SFM, and (iv) poverty reduction and sustainable development,
The social and economic impacts of the Programme are identified by target groups as follows:
For forest communities and smallholders the Programme will contribute to reduction in rural poverty
and improved income and employment as well as appropriate sharing of benefits. This can beachieved through improved access to market information, strengthening of market intelligence, andenhanced transparency of the value chain of tropical timber and timber products. Other
complementary measures are often needed to have a significant impact.
For the private sector enterprises and organizations the benefits derive from (a) improved market
information systems, (b) strengthened marketing strategies and skills, (c) expanded sales as a resultof improved market transparency, sectoral information, facilitated market access and tradedevelopment, and (d) reduced transaction costs as a result of trade facilitation.
For governments the TMT Programme provides benefits through (a) improved market and sectoral
information for policy decisions and performance evaluation, (b) strengthened human resources, (c)optimization of trade related policies, and (d) expanded exports as a result of facilitated market accessand improvement competitiveness of tropical timber and timber products.
For civil society organizations the Programme’s benefits derive from improved market information inbuilding up their capacity to support forest communities in improving their livelihoods.
For donors and the international community the Programme fills the important gap in the existing
efforts in supporting the development of sustainable production and consumption of timber and timber
products. The related international programmes would benefit from the synergistic outputs of the
ITTO’s TMT Programme.
The environmental impacts of the Programme derive from the improved trade and production data on
timber species and the improved management and control of forests made possible by better
information.

5.

OTHER PARTNERS AND STAKEHOLDERS

The Programme will be implemented in close cooperation with ITTO’s Trade Advisory Group and Civil
Society Advisory Group, relevant international and regional organizations, national timber industry andtrade associations and civil society organizations.
The outcomes of ITTO’s Annual Market Discussions and the Bi-annual Review and Assessment of theWorld Timber Situation as well as the recommendations of the ITTO Trade Advisory Group (TAG) also
guide implementation of the Programme.
Relevant international bodies and programmes will collaborate on related activities. On the issues
related to the improvement of foreign trade nomenclature and statistics, cooperation is establishedwith FAO, the World Customs Organization, and other relevant partners.

13

6.

ACTIVITIESIn this section an indicative non-exhaustive list of activities which can be supported by the Programmeis provided. As country situations vary, necessary support interventions can differ and therefore otheractivities which are consistent with the Programme objectives may be considered in decision-making
on the approval of proposals.
A.

Strengthening of information systems

1)

In improving the market and forest sector information systems the Programme can support(a) awareness raising among decision-makers on the strategic importance of market andsectoral information for policy design and performance evaluation(b) diagnostic studies and surveys on critical data gaps related to production and trade oftimber, timber products(c) elaboration of national strategies, policies and action plans for the development of market
information systems and their implementation(d) upgrading and integration of individual information system components and improvementof the existing data

2)

In strengthening the capacity in developing and maintaining effective information systems theProgramme can support(a) training of staff and specialists to operate improved information systems, data collection,
processing, reporting, statistical methods, analytical skills and communication(b) strengthening of organizations of the private sector and forest communities as well as
relevant public agencies and their networks to contribute to national information systems
and to build up their own market information systems(c) dissemination of the results of information systems(d) national and regional-level training workshops on statistical and economic information tocontinuously upgrade the skills of member countries

B.

Improvement of market transparency

3)

In improvement of statistical information on tropical timber and timber products the Programme
can support(a) strengthening of the existing international information systems on tropical forests andtimber trade for capitalizing synergies and avoiding duplication (e.g. the Global Forest
Resource Assessment (FRA) of FAO, ITTO’s Status of Tropical Forest Management (ITTO
SFM Tropics) reports and the inter-agency Forest Sector Joint Questionnaire)(b) comparative analyses of trade data to detect inconsistencies and anomalies for corrective
action by member countries and other improvement of the statistical information on trade(c) monitoring and review of international trade codes on tropical timber and timber products inview of improved market transparency(d) reviewing and revising conversion factors (weight to volume, etc.) used in international andnational statistical databases for tropical wood products

4)

In improving market information the Programme can support(a) periodic surveys and studies on specific information gaps such as production and uses oftimber and timber products, chains of custody for market transparency, wood-based
bioenergy, demand and supply outlook, end uses of tropical timber, etc.
(b) studies on export and domestic market prospects in target markets, characteristics of
emerging markets and intra-regional trade, specific characteristics of potential markets forlesser-used species and new materials, plantation timbers, SPWPs, and other relevant
topics14

(c) studies on the structure of the value chain of tropical timber and timber products from theforest up to processed products in exporting countries to identify market failures(d) workshop, seminars and training events on improved statistical and market informationC.

Facilitation of market access and trade development

5) In facilitating market access the Programme can support(a)monitoring of factors affecting tropical timber markets (e.g. tariffs, product standards,
technical regulations, product certification requirements, other potential non-tariff barriers,
consumer and public perceptions of tropical timber products, green building initiatives) anddevelopment of strategies for tropical timber suppliers to adapt and respond to market
changes, including regional and global economic crises(b) studies on substitution and competitiveness of tropical timber in relation to competing
materials and non-tropical timber and timber products including studies on life-cycle
assessment on tropical timber products vis-à-vis their substitutes focusing on climatechange impacts;(c) monitoring of the competitiveness of suppliers of tropical timber and timber products in the
major markets with regard to prices, production costs, chains of custody, transportation
costs and costs of capital vis-à-vis their competitors from temperate and boreal zones
6) In trade facilitation and development the Programme can support(a) development of marketing strategies and improvement of skills in marketing(b) facilitation of generic marketing and market advocacy of tropical timber products including
the preparation of promotional materials on the various benefits of SFM and tropical timber(c) review of the existing regulations and procedures as well as the taxes, fees and charges toreduce the transaction costs of trade in timber and timber products; and to improve
incentives for further processed production.
(d) monitoring of tariffs and comparative studies on existing tariff barriers and reasons for thelack of implementation to reduce tariffs to agreed levels for identifying corrective measures(e) monitoring of fiscal policies and subsidies which influence competitiveness of tropicaltimber producing countries and to inform ITTO members on best practices in theapplication of such instruments(f) reviews of species nomenclatures, measurement practices, and grading rules andstandards for tropical timber and timber products as well as promotion of theirharmonization as a tool to facilitate timber trade, as appropriate(g) establish in the ITTO website a special section containing information on tropical timber
species, their physical, mechanical and chemical characteristics as well as their processing
and utilization properties;(h) design and implementation of other trade development and facilitation measures (e.g.
streamlining trade payment rules, platforms promoting introduction of electronic trade
documentation, facilitation of access to trade finance, organization of and participation intrade exhibitions and other promotional activities) ,(i) knowledge sharing through regional and international workshops, publications and othermeans
Proposals for projects/pre-projects/activities can include several elements from different action areasof the Programme if deemed appropriate. Proposals should be prepared in accordance with the ITTO
Manual for Project Formulation (2008).
If necessary, ITTO may upon request provide technical assistance to interested disadvantaged
stakeholders to formulate proposals which meet the requirements of the TMT Thematic Programme.

15

7.

WORK PLAN, INCLUDING BUDGET ESTIMATES AND DONOR CONTRIBUTIONSWork Plan
The general indicative work plan is given in Table 2. Detailed annual work plans will be prepared to
implement the Programme. Two rounds of call for submissions by stakeholders through the ITTO focal
points are arranged per year. During the first year the following activities are planned.
(a) Promotion of the Programme launching through various ITTO organized and participated
events to create awareness among stakeholders on the availability of Programme support(b) Organization of the first two rounds of submissions by stakeholders(c) Provision of support for project formulation to stakeholders who have requested thisassistance
Table 2.

General Work Plan
Actions

Year 1

Year 2

Year 3

1. Programme launching and promotion
2. Calls for proposals●

3. Advisory Committee meeting/review

●

●
●

●
●

●
●

●
●

●
●

●

4. Implementation of TP activities- A. Strengthening of information
systems- B. Improvement of market
transparency- C. Facilitation of market access andtrade development●

5. Annual monitoring reports●●

6. Review and evaluation of the TMT
pilot phase by the ITTC●

Budget estimates
An indicative three-year budget that would result in significant improvements in the development oftrade and market transparency in the three tropical regions is US$5 million (Table 3).
Table 3.

TMT Thematic Programme Budget (Indicative)
Activity (US$ 1,000)

Year 1

Year 2

Year 3Total

Per cent

A. Strengthening of information systems

330.0

853,4

433,3

1,616,735.4

B. Improvement of market transparency
C. Facilitation of market access and tradedevelopment
SUBTOTAL

442.0

835.0

283.0

1,560.0

387.0

788.0

210.0

1,385.0

34.2
30.4

1,159.0

2,476.4926.4

4,561.7

111.4

237,9

89.0

438.3

1,270.4

2,714.3

1,015.3

5,000.0

Programme Management (9.5%)
GRAND TOTAL

Donor contributions
PledgedBalance

US$ 1,000,000
US$ 4,000,000

TOTAL

US$ 5,000,000

16

100.0

As of February 2010, donor contributions have been received from the Governments of Switzerland,
the United States of America, Japan, and Finland.
Counterpart contributions
In addition to donor contributions, implementing agencies for activities or projects developed in theframework of this programme are also expected to contribute financial and in-kind resources, taking
into account their roles, responsibilities and capacities, in principle, with a share consistent with thelevel of such inputs in the existing ITTO project portfolio. The counterpart in-kind contributions include
provision of logistical support comprised of services of staff members, office spaces, transportation,etc., provided by the implementing agencies. On average ITTO projects include counterpart
contribution from implementing agencies of 10-20% of the ITTO budget and this average level istargeted in the TMT Thematic Programme.

II.

OPERATIONAL ELEMENTS

Composition of the Thematic Programme Advisory Committee
The Advisory Committee (AC) has the following composition:a) Three producer member representatives with recognized expertise on the Thematic
Programme;b) At least one non-donor consumer member representative with recognized expertise on the
Thematic Programme;c) Expert representatives of interested donors and collaborating institutions; andd) Executive Director or his designated representative.
In consultation with members, the Executive Director will invite individuals to participate on Thematic
Programme Advisory Committees.
As a general rule, the membership will not exceed seven members, taking into account the need forbalanced representation among members.
The task of the AC is to assist the Executive Director with the implementation of the Thematic
Programme as follows:
a)
b)
c)

Selection of activities/pre-projects/projects for financing under the Thematic Programme;
Monitoring and evaluation of progress in implementing the Thematic Programme; andIdentification of potential additional sources of voluntary financial contributions to the Thematic
Programme

As a general rule, the AC works and coordinates through electronic means and meets once a year.
Specific selection criteria for proposed activities/projects/pre-projects
In selecting activities/pre-projects/projects for financing, the Thematic Programme Advisory Committee
will consider the following general criteria:
a)
b)
c)
d)
e)
f)
g)

Conformity with the Thematic Programme Document and ITTA objectives;
Technical feasibility;
Cost effectiveness;
Environmental and social effects;
Linkages or relevance to other activities/pre-projects/projects under the programme;
Applicability/extension of results, e.g. regionally or globally;
Clear quantitative and qualitative indicators to evaluate progress towards achieving
programme objectives;

17

h)
i)
j)

Measures to verify the coherence and effectiveness of individual activities/pre-projects/
projects funded under the programme;
Overall impact and sustainability of outputs and outcomes; andMechanisms for effective stakeholder participation.

In addition, the AC will consider the following specific criteriak) Potential impact to the achievement of the specific objectives of the Thematic Programmel)Contribution to the Programme deliverables
Administrative arrangements
The Programme is implemented under the direction of the Executive Director of ITTO. The
Programme is coordinated by the ITTO secretariat.
Monitoring and evaluation procedures
The Programme is monitored according the procedures of the ITTO Manual for Project Monitoring,
Review, Reporting and Evaluation and using the Organization’s on-line monitoring system asappropriate.
The Advisory Committee monitors the progress of Programme implementation at least once a year
based on the information generated by the monitoring system, including periodic progress reports. A
programmatic monitoring protocol will be developed for the Programme as a whole.
In accordance with the Decision 9/(XLIV) of the International Tropical Timber Council (ITTC) the
Executive Director will report at each Council session on the development, status and other relevant
information on the pilot operation of the Thematic Programme, and to keep Members informed intersessionally through the ITTO web site.
The effectiveness of the pilot operation of the Thematic Programmes will be reviewed and evaluatedafter three years by the ITTC.
Technical and financial reporting procedures
ITTO standardized reporting formats will be used for individual activities/pre-projects/projects and theThematic Programme as a whole. The reporting elements include work-plan, budget, regular progress,
technical and completion reports, inclusive of narrative reports and financial reports, formats forconsolidated narrative and financial reports, monitoring and evaluation reports. The provisions of the
ITTO Manual for Project Monitoring, Review, Reporting and Evaluation will apply, as appropriate.
Donor contributions are not earmarked to specific projects/pre-projects/activities and a common
reporting framework will be applied for participating donors rather than individual reports for eachdonor.

18

ANNEX 1.

Impacts

Directeffects

Lack ofpoverty
reduction

Reducedincome andemployment

PROBLEM TREE ANALYSIS OF THE TMT THEMATIC PROGRAMME

Inadequate
sharing of
benefits

Reduced economic and social benefits

Overharvestingof primary
species

Inappropriate plantation
development

Continued
dependence
on the informal sector
in domestic
markets

Loss ofmarketsharesLack offurther
processing

Lack ofstakeholder
support topromotetrade

Inappropriate
exportmarketrequirements

Reduced competitiveness of tropical timber

Constraints in promoting SFM for timber production

Inadequate market transparency and weak capacity to promote tradeKey
problemWeak market / forest sector information systems

Gaps in market intelligence

DirectcausesSubcauses

Weakunderstanding
about
information
as strategic
resource

Lack ofcommitment toimproveinformation
systems

Unreliabledata
collection

LimitedspecializedskillsLack ofdissemination ofdata

Inadequate
knowledgeondomestic
andregional
markets

Unreliable
demandand supply
projections

19

Limitedspecific
marketinformation(LUS,
plantation
species,
SPWPs)

Limitedinformationoncompetitiveness oftropicaltimberConstraints in market access and competitiveness oftropical timberWeakcapacityinmarketingstrategies
andmarketing

Inconsistent trade
data anddiversity ofnomenclatures

Inadequate
information
on factors
affectingmarkets

Inappropriate
legal andpolicyframeworkfor tradedevelopmentin producer
countries

Marketrequirements
and specificmeasures
impactingtropicaltimber use

ANNEX 2
SUCCESS FACTORS OF ITTO PROJECTSIN FOREST AND MARKET INFORMATION SYSTEMSThe following key success factors have been identified in the evaluations of the ITTO-funded projects
and could be considered, as appropriate, in the design and implementation of projects to be financed
under the TMT Thematic Programme.
Project design phase Projects in this field require detailed planning. They would benefit from being part of clear
national/organizational strategies to improve the information systems.
 Flexibility is often needed to ensure effective implementation in changing conditions.
 A limited number of strategic requirements can be focused on in the initial phase of building up of
information systems.
 In decentralized institutional setting, sub-national bodies should be given a broader role than justdata collection.
 Phasing of this kind of projects can be risky for effective smooth implementation due to risks
related to institutional or organizational changes.
 Overambitious scope and targets should be avoided.
Pre-conditions for project success Strong government commitment is necessary for achieving the targeted results.
 Top management must understand the strategic importance of reliable up-to-date information.
 The information unit in forest agencies should be appropriately based in the organization.
Technical aspects
 Four basic sub-systems need to be covered: data collection, data processing and storage (database), data analysis, and dissemination and access to data.
 Modular approach can be useful for individual sub-systems of information on specific topics.
 Interaction, coordination and compatibility between various data bases need to be ensured.
 Integration of statistical, economic and forest data bases provides effective management andcontrol tools.
 Special measures are needed for quantification of illegal operations and the production and raw
material use of the informal sector (e.g. periodic sample-based surveys). Adequate reliability ofthis kind of information needs specific measures.
 Reconciling data on timber flows in different stages of the logistic chain is important for dataconsistency.
 Statistical requirements of reporting to ITTO and other international bodies need to be considered.
 Clarity on conversion factors is needed from the beginning; particularly those applied for importand export data.
 Statistical theories and methods can improve and optimize data collection and analysis.
 In decentralized systems, appropriate communication technology is needed to ensure connectivityof different levels of organization.
 Engaging the private sector and other stakeholders and provision of results to them can ensure
their support to improved systems.
Economic aspects
 The designed information system should be compatible with the budgetary framework for its
operation.
 Clarity between responsibilities between participating organizations and their different levels is
critical for economic efficiency.
 Systems depending on external expertise and services tend to have low cost-efficiency.
Capacity building Statistical information capabilities of the participating organization should be adequate.
 Training should cover all the levels, including data collectors and users of data.
 Training is also often needed for effective dissemination.

20

Dissemination of results and mainstreaming of experience Dissemination of information produced can ensure sustained stakeholder support to operation of
the information systems.
 Wide dissemination in different forms to all relevant stakeholders is desirable including yearbooks,
information bulletins, newsletters, CD-ROMs, web portals, and other interactive means; various
means are complementary.
Implementation arrangements
 Project steering group has a critical role to ensure effective implementation.
 Multidisciplinary working groups and thematic sub-groups have been useful.
 Effective interrelation between available skills (experienced, high-level personnel), the required
technological levels (specialized hardware and software) and efficient organization andmanagement of the project is a key factor of success.
 Private sector can be effective in implementation if the government does not have sufficient staff
and capacity, and when flexibility is needed in implementation.
 Mid-term reviews are useful to check relevance of interventions and to remove constraints ofprogress.
Sustainability of project interventions
 An agreed follow-up and monitoring arrangement can help ensure sustainability.
 Pilot projects need to include validation of the results and design of follow-up measures for
replication and mainstreaming.
 Specific exit strategies in the project design or during implementation are often required.
 Regional-level sharing of experiences through networking is helpful for further development ofexperiences.
Sources:
ITTO. 2003. Lessons Learned from ExPost Evaluation Missions Carried Out by the Committee on Economic
Information and Market intelligence. CEM-CFI(XXXIII)/3. 8 September 2003.
Buttoud, G. 2005. Ex-Post Evaluation Report. ITTO PROJECT PD 56/00 Rev.3 (M) Enhancement of the Forest
Statistics Information and Management System (STATFOR) through the Integration of Two Computer Modules:
Compilation of Management Inventory Data and Management of Export Log Lumberyard. CEM-CFI(XXXVII)/3. 5
September 2005.

21

ANNEX 3
THEMATIC PROCESS APPRAISAL PROCESS

Submission of proposals
by proponent

Clearance by the ITTO
country focal point

Screening/pre-appraisal by
the Secretariat

Distribution of pre-appraisal forms andproposal documents to TPAC members

Review by TPAC members- comments

Integration of comments and pre-selection by the
Secretariat- distribution to TPAC members

Recommendation by TPAC members

ED decision22